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The LNG Saga – Some unanswered questions! Urgent responses needed

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By Eng. Parakrama Jayasinghe

E Mail: parajayasighe@gmail.com

There is euphoria in the government circles about the deal with New Fortress Energy of USA, (NFE) for the sale of 40% share of the West Coast Power Ltd., which currently operates the 300 MW power plant in Kerawalapitiya for a princely sum of US $ 250,000,000. The present ownership of this company stands as

Treasury 50%

Employers Provident Fund 27%

Lanka Electricity Company 18%

Lanka Transformers Ltd 05%

The plant is operated by Lanka Transformers Ltd.

At a time when Sri Lanka is scraping the bottom of the barrel to pay for the imported essentials including fuel, this would appear to be manna from heaven, even though it is not clear when this money will be received. Looking at the share ownership, there does not seem to be any impediment to the Treasury’s right to sell the 40% share although this may be considered as the sale of a national asset, which the current leaders vowed not to do.

Has anyone taken the trouble to check on the financial strength of NFE? Can the company raise not only this $ 250 million but what might also be another $ 150 million required for the setting up of the FSRU and the pipelines?

However, the icing on the cake seems to go sour when the conditions attached to this sale are looked at in detail. The only source of information is the copies of the Cabinet papers submitted by the Ministry of Finance, which are reported to have been approved by the Cabinet without any division. Considering the complex nature of the NG supply market and, moreover, the most convoluted presentation as seen in this Cabinet paper, the rest of the Cabinet may be excused for taking the easy path of just raising hands instead of courting a massive headache by trying to wade through this document to get some sense.

But the Cabinet decisions, if implemented, will affect every citizen adversely and, as explained below, and it could be a disaster for Sri Lanka. It is very unfortunate that none of the government ministers or MPs or those in the Opposition commenting on this deal has gone beyond the mere sale of shares and the fact that the agreement has been signed at midnight, which is the least of our problems.

I would like to pose some questions that are not answered clearly in the Cabinet memo:

 

1. Cabinet approval is sought to enter into a Share Sale and Purchase Agreement and to amend the conditions of the already signed Frame Work Agreement signed in July 2021. But no details of this FA and the proposed amendments are known.

2. Approval is also sought to enter into a Gas Supply Term Sheet (GSTS) as per paragraph 5.3 to be a part of the SSPA. This is where the hidden problems lie as described later.

3. Providing extensive tax relief which was not given for the open tender called for by the CEB and is under evaluation

 

There has been an attempt to compare the numbers quoted for the eventual cost of gas from NFE, with the current tender under evaluation. But as pointed out by the engineers of the CEB, this is comparing oranges with apples and the ethic of using such data for this comparison is also being questioned. The fact that there is a difference between the two does not qualify for either to be accepted without due consideration of the realities and their impact on Sri Lanka.

However, to come to the crux of the matter, the government of Sri Lanka, which approved the construction of a 350 MW LNG powered power plant, without a clue as to how the gas is to be supplied, has painted itself in to a corner. The lack of foresight in approving this project which was tendered for as far back as 2016, without many changes in the parameters applicable being taken into consideration, the cost of LNG being the primary issue, is a matter for a separate discussion. The NFE offer was apparent ly pounced upon to get out of such an embarrassing situation, with scant attention to the underlying dangers.

But the most worrisome element of the proposed gas supply agreement is the acceptance of the Take or Pay (TOP) condition without due consideration of its implications which are horrendous as explained below. However, it is the duty of the buyer or the lessee to carefully evaluate the ability or the need for the purchase of such agreed amounts.

The condition stipulates that the buyer should pay for the entire agreed amount of gas even if it is not needed or not possible to be used. This is exactly what would happen to us with a massive financial loss if this agreement goes through.

However, Sri Lanka is in a disadvantageous position in that our need for LNG falls far below the amounts considered viable by the reputed companies in the field thus limiting the possibility of reliable competitive tender. Even though less than what would be expected by the big players, the amount claimed as TOP by NFE is well beyond our ability to purchase and we will be falling into a trap from which there is no means of extracting ourselves.

The numbers tell the story

The NFE demands a TOP amount of 175 MMBTU over five years. The standard unit of supply is a Million British Thermal Unit). Although the documents available have not specifically stated amounts, let us assume this amounts to 35 MMBTU per year.

What are our consumption needs? The only use possible in the short term is the conversion of the 300 MW WCPL plant currently operating on Furnace Oil. As such, we can expect it to be converted as soon as the FSRU and the pipelines are installed and operational. But how much can we consume? An expert in the field has quoted a figure of only 13 MMBTU per year. So, until the Sobhadhanavi aplant of 350 MW is completed, we will have to pay for the balance 22 MMBTU of gas even if it is not supplied.

Once the Sobhahdhnavi plant is operational hopefully in two years, it will require a further 12 MMBTU according to the expert, totaling the demand only to 25 MMBTU, and Sri Lanka having to continue to pay for 10 MMBTU for the duration of the five-year project period currently agreed upon with NFE. There are proposals to covert the units at Kerawalapitiya, too. But this would take years and until such time we will be paying out millions of dollars every year with no benefits.

What does it mean in monetary terms, as this proposal provided monopoly rights of supply of gas also to NEF? The numbers here are even more dubious and couched in conflicting statements.

Three different modes of pricing the Gas supplies are stated:

 

= Henry Hub price times 115% + 5.01 $ per MMBTU

= JKM Price + 1.15 $ per MMBTU

= Any other mode of supply to be selected by the buyer

 

There is no firm statement anywhere in the Cabinet Memo as to which system is applicable and when.

These are highly divergent prices with a differential of over 100%. So, let us be optimistic that the Henry Hub Formula will be adopted.

The Henry Hum is the trading exchange for natural gas in the US and is currently running at about $ 5.00 per MMBTU. The JKM price is the Asian market price, which is currently ranging in the order of US$ 27 per MBTU. These numbers can be seen daily on the Internet. The recent predictions of HH prices are illustrated below. (See the graph.) It is on a steep rising trend.

Let us use an optimistic value of US $ 5.00 per MBTU as the HH price

As such the option using HH would yield a supply price of 5 x 115% + 5.01 = $ 10.76 per MBTU

It is not clear if we are to pay the regasification cost of $ 1.45 per MBTU even for the gas we don’t , which will take this up to $ 12.21 per MBTU

As stated above, until the Sobhadhanavi plant is commissioned, we will have to pay for 22 Million M BTU gas, not supplied at a price of $ 10.76 amounting to a staggering $ 236.72 Million in the first year of operation itself and at US $ 109.6 Million for the balance four years, assuming that the HH gas prices do not change.

When these numbers are considered, the offer of US $ 250 Million loses its lustre. It is a case of the Greeks bearing gifts.

I would love to be proven wrong at least on this count, ignoring the many other reasons given below as to why a very serious look has to be taken on the whole equation of the use of LNG.

Impact on the 70% RE target

President Gotabaya Rajapaksa has told the whole world, in his recent address to the UN, that Sri Lanka will achieve a 70% contribution from renewable energy sources by 2030. Let us hope that at least now there will be no further attempts to say that this is not the government policy.

What does this mean on the ground? The Table 1 spells it out:

Therefore, allowing for the retirement of some plants which are reaching the end of their economic life, the only feasible addition of fossil fuel would be the 350 MW Sobhadhanavi LNG plant currently under construction. So, there is no possibility of adding any more LNG plants or even converting the plants at Kelanitissa to LNG to bridge the gap of oversupply, without grossly violating the target of 70 % contribution of renewable energy by 2030.

The CEB has been directed by the Ministry of Power to submit its corrected Long-Term Generation Plan, which meets the 70% RE target. It would be interesting to see what they come out with, and their commitments to national policy, not to mention a genuine effort to get out of the financial mess that it is in. Maximizing the renewables even beyond the 70% target is their only hope.

Barriers to the development of Mannar Gas and Oil resource

This is a matter that cannot be ignored. When there are attempts to attract investors to develop this proven resource, handing over the monopoly of supply of LNG to NFE even for five years is most foolhardy. A developer would first look at the guaranteed offtake of the extracted gas as the greatest incentive and mitigation of risk of the investment. When we are blocking that very option by this ill-conceived deal, we are foreclosing the possibility of developing this valuable resource for ever.

It is heartening to hear that Minister of Energy Udaya Gammanpila has already objected to the proposal to give monopoly on gas imports to NFE even for five years. We hope that his views will be taken on board.

This is an appeal to all politicians on both sides as well as the professionals to evaluate the validity of the above concerns and prevent the impending disaster.



Features

Polarizing rhetoric greets America on its epochal anniversary

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President Donald Trump addresses the public on the occasion of the US celebrating the 250th anniversary of the US Declaration of Independence from Britain.(BBC)

Democratic and progressive opinion in the US and the world over would likely have been further jolted by the divisive rhetoric blared forth by US President Donald Trump on no less an occasion than the 250th anniversary of the US Declaration of Independence from Britain. The world has been placed on notice that what it would be having in the main is aggravated polarization on multiple fronts during what’s left of the Trump tenure.

If the world was expecting positive moves by the Trump administration to bridge divisions, heal rifts and usher in a more harmonious international political order, this is very unlikely to be. Instead, in all probability we would be left with a far more ‘dangerous place to live in’.

Some of the more thought-provoking recent ‘takes’ from President Trump are : ‘A generation after we fought and won the cold war against the menace of communism, there is now a resurgence of the communist menace in our land, including from newcomers to our country who embrace ideas totally opposed to our way of life and our great success.’ ‘We will send them (immigrants) quickly away, and we will continue to build our country bigger and better than ever before.’ ‘We are going to give our country its identity back.’ ‘You can be loyal to Karl Marx or you can be loyal to America. You can be a communist or you can be a patriot. You cannot be both.’

Accordingly, what the world would have in increasing measure going forward are stepped-up attempts to consolidate a white supremacist administration in the US accompanied by a suppression of ethnic, religious and cultural minorities at home along with renewed attempts to spread and consolidate US hegemonism world wide.

The latter project would mainly translate into US military interventions abroad of the Venezuelan type and a persistence if not a resurgence of identity based conflicts globally. Violent reactions internationally to what are seen as attempts by the US to bring recalcitrant sections in particularly the South under white supremacist control will provide the basis for the steadfast presence and spiking of identity politics globally.

Moreover, the path has been paved for stepped-up ethnic, religious and cultural disharmony within the US. A united state is far from possible, given this backdrop. Put simply, it would be a question of steeper political polarization at home and abroad.

The persistent, widespread support for the hard line Islamic regime in Iran locally and globally should serve as an eye-opener for the political decision-makers of the US. Huge crowds at the funerals of Iran’s political leaders could very well be state-orchestrated but they are a pointer to the fact that political Islam is far from on the decline. To the extent to which this is so, the phenomenon could be a hurdle in the path of a stridently expansionist US.

Looking back, it was the consolidation of the Islamic regime in Iran in the late seventies of the last century that, besides proving a major challenge to the unfettered global power expansion of the US and its Western allies, provided the motive force as it were for the proliferation of Islam-based identity politics in particularly the South. This continues to be so.

Going forward, the US would need to figure out how best it could manage the persistent presence of Islamic fundamentalism world wide, and for that matter other forms of identity politics, without drastically losing its global power and influence.

The recent successful challenge by Iran to the US’ efforts to exercise its diktat in West Asia should prove an ‘eye-opener’. In these confrontations both sides were bloodied but Iran proved that it could successfully take on the US militarily. The inference for the US ought to be that projecting its military might in the Middle East in a no-holds-barred fashion would not prove easy.

Arising from the foregoing a foremost policy challenge for the US would be to curb Iranian military power while avoiding another major military confrontation with the Islamic state that would cost the US and the world dearly in particularly economic and material terms. The US would have no choice but to persist with the often flagging West Asian peace effort and to render it fully workable.

Ukraine presents the US with another formidable challenge. As is known, Ukraine is proving no easy ‘push-over’ for Russia, but it is badly in need of more sophisticated Western arms, particularly effective air defense systems, to fully neutralize the Russian invasion. What would the US choose to do; go to Ukraine’s assistance fully or opt not to ruffle and antagonize the Putin regime, with which it is on some cordial terms?

A negotiated solution is best in Ukraine and the Trump administration would do well not to lose sight of this ideal but Russia too should see the need for a diplomatic solution if it is to salvage itself from its military stalemate in Ukraine. The US needs to try being a peace mediator in the latter theatre but if the Russian political leadership fails to opt for peace the US would have no choice but to join the rest of NATO and Europe in continuing to arm Ukraine.

The US would need to take the latter course if the ‘world’s mightiest democracy’ is to remain committed to its founding ideals. If President Trump fails to meet this challenge he would prove that he is nothing more than an ‘empty rhetorician’.

However, it should not come as a surprise to the world if Trump chooses not to strongly back the rest of the West on Ukraine. Domestic and foreign policy are closely intertwined. Since the Trump administration is committed to building a white supremacist state at home, democratic development worldwide has been of the least importance to it.

The Trump administration’s strong affinities to white jingoism would increasingly compel it to opt for a policy of international isolationism. As a result Ukraine could prove unimportant for the US going forward.

Consequently, US-Western Europe friction in particular is only likely to intensify in the days ahead. Coupled with the contentious issues growing out of the persistence of identity politics, the Trump administration’s far-sightedness in managing foreign policy issues would be tested to the fullest. Whether the world would have comparative peace or continued blood-letting would depend crucially on such judiciousness.

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Beyond concrete: Sunela Jayewardene urges Sri Lanka to rediscover an ancient wisdom for a planet in peril

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Sunela / Rishan / Spencer

It was more than a lecture on architecture. It was a challenge to rethink civilisation itself.

Standing before a packed audience at Dilmah by Genesis in Maligawatte, internationally acclaimed environmental architect, author and conservationist Sunela Jayewardene delivered a keynote that transcended blueprints, buildings and urban planning.

Instead, she invited her listeners on an intellectual journey into Sri Lanka’s ancient past, arguing that the answers to some of the world’s gravest environmental crises may already exist within the island’s forgotten ecological wisdom.

Her address, titled “Beyond Concrete: Architecture for the Coexistence of Species,” was at once philosophical, historical and deeply practical. It questioned humanity’s obsession with dominating nature and called for a return to a design ethic rooted in respect, restraint and coexistence.

“The road is actually very simple,” Jayewardene said. “We have simply forgotten it.”

That observation became the defining thread of an afternoon that challenged conventional thinking about architecture and development.

According to Jayewardene, modern society has inherited a worldview shaped largely by colonial values that placed human needs above those of every other living organism.

“Our value system was turned on its head,” she observed. “We accepted a Western way of looking at nature without questioning it. Today we can clearly see the consequences. The world is in crisis. Species are in crisis. Our lifestyles are in crisis.”

She was careful not to romanticise the past, nor was she dismissive of modern science. Instead, she argued that Sri Lanka’s pre-colonial civilisation possessed a sophisticated environmental philosophy that modern planners and architects have largely ignored.

For Jayewardene, environmental architecture is not about fashionable sustainability slogans or cosmetic landscaping.

It begins with humility.

It begins by recognising that humans are only one species among millions sharing the same landscape.

“The built environment should not exist in opposition to nature,” she said. “It should become part of nature.”

One of the most captivating moments of her presentation came when she introduced her own research into the island’s ancient sacred geography.

Using digital mapping and satellite imagery, Jayewardene demonstrated the remarkable alignment of Sri Lanka’s four original Saman Devalayas, whose axes converge on Sri Pada, historically known as Samanthakuta.

The extraordinary precision of these alignments, she argued, raises profound questions about the scientific and surveying capabilities of ancient Sri Lankan civilisation.

“What kind of technology enabled them to achieve this?” she asked the audience.

Her purpose was not to offer speculative answers but to challenge deeply ingrained assumptions that ancient societies lacked scientific sophistication.

“We often underestimate what our ancestors knew,” she said. “Yet the evidence around us tells a very different story.”

That forgotten knowledge, she argued, extended well beyond engineering.

It shaped an entire philosophy of living with the landscape rather than imposing human will upon it.

Displaying photographs from archaeological sites including Ritigala, ancient monasteries and rock pavilions hidden within Sri Lanka’s forests, Jayewardene illustrated how builders carved steps around natural boulders, integrated structures into existing rock formations and preserved the contours of the land.

Modern construction, she suggested, would almost certainly have bulldozed those landscapes into submission.

“Our ancestors honoured the land,” she said. “They accepted the landscape instead of trying to conquer it.”

For Jayewardene, that principle remains the foundation of every project she undertakes.

She described environmental architecture as an exercise in listening rather than commanding.

Every site, she explained, possesses its own identity, ecological history and natural rhythm.

The responsibility of the architect is to understand that identity before attempting to intervene.

“The land tells you what it wants to become,” she said.

Throughout the presentation, one word repeatedly surfaced—context.

Without understanding context, she argued, architecture becomes little more than sculpture.

Good design cannot be copied indiscriminately from one country to another or even from one district to another.

Climate differs.

Rainfall differs.

Vegetation differs.

Wildlife differs.

Culture differs.

Even the stories associated with landscapes differ.

All of these, Jayewardene insisted, must shape architecture.

“When I speak about inhabitants, I don’t mean only human beings,” she explained.

“The birds, insects, reptiles, mammals, trees and every living organism already occupying that land must become part of the design equation.”

This broader understanding forms the basis of what she describes as non-human-centred design—an approach that rejects the notion that cities exist exclusively for people.

Instead, landscapes should provide refuge for biodiversity while simultaneously serving human communities.

It is an idea that resonates strongly at a time when rapid urbanisation continues to erode habitats across Sri Lanka.

Jayewardene also challenged prevailing attitudes towards development itself.

Too often, she argued, “development” has become synonymous with replacing natural systems by concrete infrastructure.

She questioned whether flattening hillsides, redirecting streams and clearing vegetation can genuinely be described as progress.

In her view, genuine development should first ask what ecological value already exists before deciding what should be built.

One of the simplest yet most profound examples she offered concerned water.

“I always say it is acceptable to interrupt water,” she remarked. “But never disrupt it.”

That distinction reflects an ecological understanding often absent from conventional engineering.

Natural drainage systems, she warned, perform countless functions that remain invisible until they are damaged.

Floods, soil erosion, biodiversity decline and even changes in local climate frequently follow.

“We disrupt far more than water,” she said. “We disrupt entire ecological relationships.”

Equally significant was her distinction between degraded brownfield sites and relatively untouched greenfield landscapes.

Brownfield sites require ecological restoration, rehabilitation and renewal.

Greenfield sites demand restraint.

Minimal intervention, she argued, is often the highest form of environmental design.

The keynote found an appropriate setting within Dilmah Conservation’s own efforts to restore degraded urban landscapes.

Earlier in the programme, Rishan Sampath of Dilmah Conservation outlined the organisation’s transformation of an abandoned industrial property in Moratuwa into a flourishing urban forest containing over 300 tree species and more than 1,000 individual plants.

Scientific studies conducted within the restored forest have already demonstrated improvements in air quality compared with adjoining urban roads, providing measurable evidence that biodiversity restoration can improve city life.

For Jayewardene, such initiatives represent far more than beautification projects.

They demonstrate that ecological restoration can become a guiding philosophy for future urban planning.

Her address ultimately became a call to rethink humanity’s place within nature.

Architecture, she argued, should no longer celebrate domination over landscapes.

It should celebrate coexistence.

Every building should strengthen biodiversity.

Every development should restore ecological balance.

Every designer should ask not merely how a project serves people, but how it serves life itself.

As the audience left the hall, they carried with them more than architectural ideas.

They carried a challenge

To question inherited assumptions.

To rediscover indigenous ecological wisdom.

And to recognise that Sri Lanka’s greatest contribution to global sustainability may not lie in importing new environmental models, but in rediscovering the timeless principles embedded within its own civilisation.

For Sunela Jayewardene, the future will not be secured by building more impressive skylines.

It will be secured when humanity learns once again to build gently, intelligently and respectfully—allowing architecture to become not an act of conquest, but an expression of coexistence.

By Ifham Nizam

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Colombia’s “back-to-back queen”

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Beyond modelling, Colombia’s Katherine Castaño, who captured the crown at the Top Model of the World 2026, in Egypt, is also a TV host, entrepreneur and social media influencer.

She’s based in Miami, Florida right now — a hub for fashion and influencer work — a city she calls home base, while representing Colombia on the world stage.

Her Miami base gives her access to fashion, entertainment, and business networks, while her title keeps Colombia front and centre in the global modelling conversation.

Off the runway, she says she enjoys singing, playing the piano, and tennis.

Katherine didn’t make the trip to Egypt as a newcomer. She’s built a strong international portfolio before winning the crown.

In fact, her résumé reads like a fashion passport: Colombia Moda, New York Fashion Week, Miami Swim Week, Miami Fashion Week, Nicaragua Diseña, IXEL Moda, and Mercedes-Benz San José.

On June 8, 2026, Katherine Castaño was crowned by outgoing winner Natalia Garizabal Vera, also of Colombia. That gave Colombia a historic back-to-back victory — the first time any country has done it in the competition’s history, and Colombia’s 4th win overall.

As Top Model of the World 2026, Katherine’s reign is centred on elevating her profile as a model, influencer, and entrepreneur.

She’s built a personal brand around beauty, ambition, style, and professionalism, with strong reach across fashion, social media, and business.

As titleholder, she’s now the face of the pageant’s international fashion platform, representing Colombia globally, while based out of Miami.

Ahead of the competition she was clear about the stakes: “This is bigger than me. This is for my country. This is for the story I’m here to write… And I’m not going quietly… we’re going for that back to back.”

As the reigning titleholder, Katherine Castaño’s role extends far beyond the sash. She’s using the platform to grow her brand as a model, influencer, and entrepreneur rooted in “beauty, ambition, style, and professionalism”.

She will also be doing runway shows, photoshoots, brand appearances, and fashion events.

Sri Lanka’s representative at this pageant was NetalieWithanage.

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