News
Govt.’s secret deal with US company affects Lanka’s sovereignty, says FSP
By Rathindra Kuruwita
Sri Lanka was now dependent on the United States to supply LNG to Sri Lankan power stations thanks to an agreement it had entered into with a US-based energy company, New Fortress Energy, on Friday night, the Frontline Socialist Party (FSP) alleged yesterday.
FSP Education Secretary Pubudu Jayagoda said that the agreement between the government and US-based energy company New Fortress Energy to construct a new offshore liquefied natural gas (LNG) receiving, storage and regasification terminal at Kerawalapitiya as well as the transfer of government’s shares in the Yugadanavi Power Plant had to be scrapped.
He said that the agreement had been signed in the late hours of Friday.
“This secret agreement was signed at a time when people are barred from protesting or making a meaningful intervention. The Yugadanavi Power Station at Kerawalapitiya already produces 300 MWs of energy and there is a plan to build another 350 MW plant there. The US company has now been allowed to build an offshore LNG receiving, storage, and regasification terminal and to provide LNG to the existing Power Station and the new 350 MW power plant to be built,” he said.
The government was planning to increase this to 1000 MWs by 2026. In 2016, international tenders were called for the construction of the 350 MW LNG power plant. The two main contenders were China Harbour and Yugadanavi, which is a state owned company, with the Treasury owning 50% the balance 50% divided between EPF, LECO and LTL.
“But the government gave to China Harbour, and Yugadanavi filed a case against the government over its decision. In 2020 President Gotabaya Rajapaksa cancelled the tender given to China Harbour and gave the right to Yugadanavi, which at that time looked good. However there was a conspiracy, Yugadanavi signed an agreement with the US based energy company New Fortress Energy. With this MoU 40% of the company shares will be given to the US company,” Jayagoda said.
He said the agreement was worse than East Container Terminal pact.
“On 12 July this was discussed by the Cabinet but even the Minister of Power didn’t get a copy until the meeting started. Then Minister Basil Rajapaksa presented the paper and obtained the approval of ministers. The agreement calls for the sale of a large number of shares to the US company as well as the building an offshore LNG receiving, storage, and regasification terminal to provide LNG to the existing Power Station as well as the new 350 MW power plant to be built. This is clearly said on the Company website,” he said.
Given that the pipelines would be controlled by a US company, Sri Lanka would lose energy sovereignty. In the future, Sri Lankans would have to depend on the whims and fancies of US political authorities, he claimed.
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Heat index likely to increase up to ‘Caution level’ in the Sabaragamuwa, Northern, North-central, North-western, Eastern provinces and in Hambantota and Monaragala districts during the daytime
Warm Weather Advisory
Issued by the Natural Hazards Early Warning Centre
Issued at 3.30 p.m. on 07 May 2026, valid for 08 May 2026.
The Heat index, the temperature felt on the human body is likely to increase up to ‘Caution level’ at some places in the Sabaragamuwa, Northern, North-central, North-western, Eastern provinces and in Hambantota and Monaragala districts during the daytime.
The Heat Index Forecast is calculated by using relative humidity and maximum temperature and this is the condition that is felt on your body. This is not the forecast of maximum temperature. It is generated by the Department of Meteorology for the next day period and prepared by using global numerical weather prediction model data.

Effect of the heat index on human body is mentioned in the above table and it is prepared on the advice of the Ministry of Health and Indigenous Medical Services.
ACTION REQUIRED
Job sites: Stay hydrated and takes breaks in the shade as often as possible.
Indoors: Check up on the elderly and the sick.
Vehicles: Never leave children unattended.
Outdoors: Limit strenuous outdoor activities, find shade and stay hydrated.
Dress: Wear lightweight and white or light-colored clothing.
Note: In addition, please refer to advisories issued by the Disaster Preparedness & Response Division, Ministry of Health in this regard as well. For further clarifications please contact 011-7446491.
News
Renewable energy producers left high and dry as CEB prioritises spending on oil-fired power plants
Sri Lanka could face a serious electricity supply crisis if outstanding payments owed to renewable energy producers are not settled urgently, industry representatives have warned.
According to renewable energy sector sources, the National System Operator (Private) Company has not paid more than Rs. 10 billion due to renewable power producers for electricity supplied to the national grid between December 2025 and April 2026.
The Federation of Renewable Energy Developers said the prolonged delay in payments had placed severe financial strain on producers and threatened the continued supply of renewable power to the national system.
Speaking to The Island, Federation Vice President Prabath Wickramasinghe said the payment crisis had emerged as authorities prioritised expenditure on diesel and furnace oil generation to offset a daily electricity shortfall of nearly 150 megawatts caused by inefficiencies in coal power generation.
He said the escalating conflict in the Middle East had sharply increased global fuel prices, resulting in a steep rise in thermal power generation costs, estimated at close to or above Rs. 10 per unit.
“In this situation, greater focus on renewable energy has become essential,” Wickramasinghe said.
He noted that the issue affected not only large-scale renewable projects but also ground-mounted solar power plants, mini-hydropower projects, wind farms and biomass power stations operating across the country. According to the Federation, 389 renewable energy plants with a combined installed capacity of 1,073.9 megawatts were currently affected.
Wickramasinghe warned that continued non-payment could lead to plant owners defaulting on bank loans and other financial obligations, while also undermining investor confidence and destabilizing the renewable energy sector.
He further cautioned that the crisis could ultimately contribute to future electricity shortages if renewable energy suppliers reduce or suspend generation.
When contacted by The Island, Chairman of the National System Operator (Private) Company Dr. B.L. Pradeep Priyadarshana Perera acknowledged delays in payments and said discussions were underway with the Ministry of Finance to resolve the issue promptly.
By Sirimantha Ratnasekera
News
PM reveals move to introduce higher education sector reform
Prime Minister Dr. Harini Amarasuriya told Parliament on Wednesday that the government was planning to reform the higher education sector in line with the ongoing transformation of the primary and secondary education systems.
Responding to questions raised by Digamadulla District NPP MP Manjula Sugath Rathnayaka, the Prime Minister said a special expert committee appointed to review the higher education sector had been functioning over the past six months and was expected to submit recommendations aimed at addressing long-standing structural and administrative issues.
“A special expert committee appointed for this purpose has been in operation over the past six months, and based on the report of this panel, existing issues in the higher education sector will be identified and the necessary reforms will be implemented,” she said.
Providing details on university admissions, Dr. Amarasuriya said 281,810 students had sat the 2025 GCE A/L Examination, and out of them 176,538 were qualified for university admission. However, only 42,937 students could gain admission to state universities.
The Prime Minister said the highest number of qualified students was from the Arts stream (58,269) candidates, followed by Commerce stream (39,608), Biological Sciences (32,935), and Physical Sciences (23,012). In addition, 12,472 students were qualified in the Engineering Technology
stream, 6,043 in the Bio-Systems Technology, and 4,199 in the General Stream.
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