News
GoSL-New Fortress agreement: Engineers frown on modus operandi, gas supply contract
By Ifham Nizam
The government had done the right thing when it came to attracting investment into the energy sector, but the methodology it adopted was questionable, especially in signing such an important deal so hastily at midnight, senior independent engineers said.
They told The Island that with regard to New Fortress (NF) buying shares in Yugadhanavi it boiled down to a foreign direct investment at a time the country badly needed foreign exchange.
The government has signed a share sales agreement with NF to sell 40% of shares held by GOSL in Yugadhanavi power plant for USD 250 million, which is in line with the government Chief Valuer’s valuation as stated by GOSL.
“After all, the investor has to take his return through dividends from operations over 15 years and convert it to repatriate. Dividend declaration would be decided by the majority of shareholders and depend on availability of cash. When considering Sri Lanka’s current rating (C grade) this single investment of USD 250 million is a substantial contribution in terms of boosting foreign reserves and builds confidence in other investors,” a senior engineer said.
With NFE’s investment in the Floating Storage Regasification Unit (FSRU) terminal, overall foreign exchange inflow would be nearly USD 300 million.
A senior engineer at the Kerawalapitiya Plant said that CEB’s concern should be the gas price which would have a direct impact on its operations.
The senior engineer expressed concern about allowing FSRU terminal project to NF while a tender called by the CEB for the FSRU was being evaluated.
“Sri Lankan government being able to sell 40% for a 10-year-old heavy fuel oil (HFO) fired power plant for USD 250 million was a good deal but the problem is that it was linked to the gas supply, the top engineer said.
As far the West Coast Power Ltd., the owner of Yugadhanavi power plant, GOSL has 50%, EPF has 27% and LECO has 18.2% and Lakdhanavi has 4.8%.
A senior engineers said, ” The value of 250 USD for 40% is a good price on an assets base and future income based. The CEB will pay all future capacity charges in Sri Lankan rupees. There will be no change in capacity or fixed charges because a foreign investor is coming in. PPA and IA do not prevent change of shareholders. Similar changes in shareholding happens in the AES power plant, which is now owned by Sojitz Japan.
With the sale of shares the GOSL has allowed NF to supply Natural gas to Yugadanavi and the new power plant to be constructed. This could be a concern for the CEB.
Yugadhanavi now operates with Low Sulfur HFO, which is an imported product supplied through CPC; it is more expensive than normal HFO. However, at present, CPC refines and supplies low sulfur HFO.
When Yugadanavi operates on natural gas, the power capacity can be increased by 10% and fuel efficiency will be better. Therefore the overall tariff to the CEB will be lower than operating with HFO.
The new power plant to be built by NFcan run on natural gas or diesel only.
The issue may be how a US company has been selected to buy shares and supply gas. Selling shares is GOSL’s prerogative, which other shareholders or the CEB cannot challenge.
News
Govt. extends ban on LTTE
The NPP government has issued a new extraordinary gazette renewing and extending Sri Lanka’s long-standing ban on the LTTE and several Tamil diaspora organisations and individuals, continuing to designate them as “terrorists”.
The gazette, published recently, replaces a previous gazette issued in May 2025 and reaffirmed the proscription of a wide range of Tamil political and advocacy bodies operating around the world, alongside dozens of named individuals. The government alleged both the organisations and individuals listed are involved in “terrorism-related activities”.
The organisations blacklisted by the Sri Lankan government include:
• Liberation Tigers of Tamil Eelam (LTTE)
• Tamil Rehabilitation Organisation (TRO)
• Tamil Coordinating Committee (TCC)
• World Tamil Movement (WTM)
• Transnational Government of Tamil Eelam (TGTE)
• World Tamil Relief Fund (WTRF)
• National Council of Canadian Tamils (NCCT)
• Tamil Youth Organisation (TYO)
While the majority of the designations mirror those contained in the May 2025 gazette, the latest document updates identification details and addresses for a number of individuals and introduces at least one additional organisation to the list. All entries have been reissued under new reference numbers for 2026, though the underlying allegations and framing remain unchanged.
Successive governemnts have maintained a sweeping proscription regime against Tamil diaspora groups and individuals. A ban can make it a criminal offence for Sri Lankan citizens to maintain contact with these organisations or their members, severely restricting political engagement and stifling links between the diaspora and the Tamil homeland.
The original mass listings were introduced in 2014 under the administration of Mahinda Rajapaksa. Despite repeated outcry, subsequent governments have continued to uphold and renew the proscription regime, even after the Rajapaksas were voted out of power.
News
Police obtain court order banning Wimal’s protest
Police yesterday (12) obtained an injunction order from the Kaduwela Magistrate’s court against the protest launched by National Freedom Front (NFF) leader and former Minister Wimal Weerawansa opposite the Education Ministry, Isurupaya, at Battaramulla.
Police informed Weerawansa of the court order. In line with the court order, the police informed Weerawansa that the road near the Ministry should not be obstructed and that no sound amplification equipment be used while the GCE Advanced Level (A/L) examination is in progress. The examination, put off due to Cyclone Ditwah, recommenced yesterday.
News
Chinese Foreign Minister Wang Yi expresses optimism that Sri Lanka is on the right path to progres
Minister of Foreign Affairs, Foreign Employment and Tourism Vijitha Herath held productive discussions with his Chinese counterpart Wang Yi today (12/01), during the latter’s brief visit to Sri Lanka.
The meeting aimed at further strengthening bilateral engagement and advancing the Strategic Cooperative Partnership between the two countries. Both Ministers reaffirmed the longstanding friendship and time-tested cooperation between Sri Lanka and China rooted in centuries of exchanges and consolidated since the establishment of diplomatic relations seven decades ago. The discussion also focused on enhancing partnership in the areas of trade, investment, development cooperation and tourism.
Minister Herath extended deep appreciation to the Government and the people of China for the steadfast support extended to Sri Lanka following cyclone Ditwah and requested further support for the second phase of resettlement, relocation and rebuilding, particularly for the restoration of affected infrastructure including identified roads, railways and bridges that are vital to connectivity, economic recovery and daily lives of people. Minister Wang assured China’s fullest support for this initiative and expressed confidence that Sri Lanka will continue its rapid recovery under the leadership of President Anura Kumara Disanayaka. He also welcomed the people-centric policies of the Government and expressed optimism that Sri Lanka is on the right path toward fulfilling aspirations of its people.
Minister Herath expressed appreciation for China’s constructive role in international fora and reiterated Sri Lanka’s firm commitment to the One China Policy and China’s sovereignty and territorial integrity.
Both Ministers also recalled the successful high level exchanges in the recent past, including visits of the President and the Prime Minister of Sri Lanka to China in 2025.
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