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A productive way out of the LNG dilemma

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by Eng Parakrama Jayasinghe

Both Liquid Petroleum Gas (LPG) which recently saw a sharp price increase and is now the preferred cooking fuel even in some rural areas, and yet-to-be-used Liquefied Natural Gas (LNG) have received widespread public attention.

Natural Gas (NG) , which is mostly Methane (CH4) , the fossil fuel promoted as the alternative for dirty coal used for power generation, has to be brought in to the country in concentrated form liquefied at low temperature for transport logistics and economies. This makes it LNG when the source of supply is foreign. We will therefore have to depend on LNG as long as it is imported and would also need the storage and regasification facilities such as the Floating Storage and Regasification Units (FSRU) to convert the LNG to the form usable at a power plant. These are the issues under hot debate right now.

Ignoring the sordid details of the major decision making processes of Sri Lanka, particularly in the energy sector, let us face the realities

* A 350 MW power plant designed to use natural gas is being built without any arrangements in place for the supply of the gas needed.

* The 300 MW Yugadhanawi power plant, pushed as designed for easy conversion for the use of Natural Gas, has been running on low sulfur furnace oil as expensive as diesel since 2011.

* The natural gas price in the world is soaring compared to what it was when it appeared to be the best option to get away from coal

* Renewable energy based electricity is now undoubtedly cheaper than any form of fossil fuel based generation including NG , and this is true for Sri Lanka too.

* There is a proven indigenous natural gas reserve in Mannar in Blocks M2 in close proximity to the 900 MW Norochcholai coal power plant

* Coal prices have gone through the roof making coal power, once considered the cheapest when all its ill effects are ignored, is no longer an option financially, economically, environmentally and socially

* Sri Lanka has declared a policy to achieve a 70% contribution by RE sources for electricity generation by 2030, and an international commitment to reach zero carbon emission status by 2050

* There is significant interest backed by actual commitments and multi million dollar investments for the purchase of the Mannar data, by big players in the oil and gas industry targeting the balance blocks offered by Sri Lanka for exploration. This process is underway, supported by an immediate captive demand for the proven sources to be developed

* Sri Lanka is in the throes of a foreign exchange crisis which makes an offer of US $ 250 Million to appear as manna from heaven. However the annual drain of over $ 4,000 Million for the import of fossil fuels, of which nearly $ 1,000 Million is consumed for power generation, is the main contributor to the crisis which is exacerbating due to the current world trends.

* In the government sector, the left hand does not seem to know what the right hand is doing

* Thus a national asset in a company making good profits is being sold through a midnight deal by the Treasury owning the shares, accepting conditions gravely affecting the performance of the Ministry of Power and Energy and the plans and programs of the Ministry of Energy, without any consultation with them.

* In this background it is worthwhile considering if there is still a way out and to eat the cake and keep it. This can be shown to be possible.

The Current State of Play in the Electricity Sector

There has been doomsday predictions of impending energy shortages in the past, most recent being in 2019, which did not come to pass. The next prediction is for 2023 unless the present dependence on imported fossil fuels is arrested. This may come true not because of lack of generation capacity but due to inability to pay for the import of fossil fuels – both oil and coal.

There has been some progress in the development of indigenous renewable energy which fortunately for us is non-fuel based in case of wind and solar. Some impediments imposed by vested interests on this progress has now been removed by the present administration and coupled with the laudable target to achieve 70% RE by 2030 would help accelerate this progress. This goal clearly limits the space available for non-renewable power generation. As the table below indicates there is no room to add any more fossil fuel based power plants including Natural Gas, except perhaps as replacement for the units due to be retired shortly at the end of their economic life.

Notes.

1. Projected total electricity demand in 2030

2. Fossil fuel generation allowable under 70% RE scenario

3. Renewable Energy Capacity to be reached by 2030 to achieve 70% RE target

Therefore the 350 MW Subadhanwi Power Plant under construction may have a role to play as several plants in the Kelanitissa complex are due to be retired.

Although the commitment to achieve zero emission by 2050 would be further challenged by the target of carbon free power generation by 2040, the introduction of natural gas (also a carbon emitter) as a transitional source of fuel to occupy the 30% space up to 2030 is not illogical.

The game plan

As stated above there is no room for adding any more NG power plants at Kerawalapitiya or for fuel switching at Kelanistissa, proposed as the means of absorbing the minimum Take or Pay (TOP) condition of 35 Million MBTU per year in the present deal with New Fotress Energy ( NFE) . Therefore the suggestion that we will only pay for the 25 Million MBTU per year that we can consume, during the first five years and the balance would be accumulated, but nevertheless is payable, will be a Damocles Sword hanging over us. This would also be a strategy to extend the contract for a further five year period. It is futile to make calculations of the amount we have to pay, for something we will not consume at present, as the crystal ball is quite cloudy as to the rate at which the NG prices would escalate. The recent price trends shown below is a good indication.

As such depending on imported natural gas which makes it LNG is not an option we should pursue, if not for any reason other than the drain on the foreign exchange.

Do we have an option? Fortunately based on the opinion of the officials of the Petroleum Development Authority of Sri Lanka (PDASL) now formally established under the Act No 21 of October 8, 2021, we do have a more attractive option. The hard work of these officials who never lost faith in spite of setbacks, unequivocally confirm the proven resources in the Block M2 in Mannar named Barracuda and Dorado of the presence of almost 1.85 Trillion Cubic Feet of Natural Gas (mid-level estimate). This is equivalent to 1,850 Million MBTU, to be compared to the present numbers being bandied about, of 175 Million MBTU over five years as the TOP offered by the NFE. There is adequate gas to operate these two power plants for over 50 years from this one gas field alone.

The prospects of the wider Mannar Basin, inc. Block M2, is estimated to hold 9 TCF of Natural Gas based on analysis of all available data.

So we can operate the Norochcholai, Yugadhanawi and Sobhadhanawi power plants for 30 years with our own gas, if we take the trouble to develop these two reservoirs alone.

But naturally we do not have the expertise or the economic capacity to develop this resource and would need a competent company in the Oil and Gas industry to come to a contractual arrangement with Sri Lanka. May I mention in passing that I hope these negotiations will be done by competent people who have interest of Sri Lanka as the utmost aim, while accepting the realities of the commercial world.

Take or Pay for Natural Gas Development in Mannar

As much as a supplier of an FSRU and supply of LNG would expect a minimum guaranteed of off take, the potential developer of our own gas fields would also have similar expectations, which we cannot deny. It is up to Sri Lanka to evaluate the minimum quantities we can afford to consume without having to pay for gas or services beyond that amount. This becomes even more critical when that payment will need to be in dollars that we don’t have.

It has often been said that the minimum off take that would be acceptable would be in the range of 1000 MW of power generation. This is verified by the NFE terms which targets the two plants at Kerawalpitiya adding up to 650 MW and the passing references to another power plant of capacity 350 MW at the same location, which has not received much attention. It is clear that this cannot happen if we accept the 70% RE target.

But how can we reach the 1,000 MW target but not violate the 70% RE target? Fortunately the recent events have opened a most attractive opportunity to offer a viable level of off take without having to construct any new power plants. The phenomenal rise in the coal prices now exceeding $ 240 per MT at source, could be a blessing in disguise in many ways. No amount of fancy accounting can now prove the cost of coal power generation to be at an acceptable level, even if we can find the dollars to buy the coal.

So the most obvious step to be taken is to covert the three units of 300 MW coal power plants at Norochcholai to operate on natural gas from our own gas resources. Not only does this not require any FSRUs, as the gas will be supplied in gaseous form, which can be pumped directly to the power plant, we will not have to pay for the gas in dollars. There would be some payment on the extraction, processing and piping costs. But this is not linked to any world gas prices. However, the benefits that would accrue, financially, economically and environmentally are massive and too numerous to list here.

Before anyone objects to this proposal by saying that this is not proven technology or has not been done anywhere, I must say that over 100 coal plants have been converted to gas in USA alone.

No doubt this kind of leap would require much planning and analysis in addition to the political wisdom and will. Some temporary measures would need to be taken if the planned time schedules are disturbed. But the realities on the ground and the dire situation faced by Sri Lanka presently and in the foreseeable future, behooves us to look for innovative solutions and maximize the utilization of our own resources that nature has bestowed on us.

But as mentioned before, the principle ingredient required is the commitment to achieve the best for Sri Lanka and the integrity of the decision makers. These unfortunately has been the missing ingredients in all of the past events.

I await responses from those who can appreciate the validity and value of these proposals, as well as those from among the doubting Thomas’s to which I will respond, as the space limits me to preempt such queries.

Has Sri Lanka got the courage to reject the current proposals driven by short term expediencies and possibly other reasons, which will definitely block any chances of our chances of ever developing our proven resources and take this step to make us a net energy exporter?

(E Mail : parajayasinghe@gmail.com Telephone : 0777269970)



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Features

Ranking public services with AI — A roadmap to reviving institutions like SriLankan Airlines

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Efficacy measures an organisation’s capacity to achieve its mission and intended outcomes under planned or optimal conditions. It differs from efficiency, which focuses on achieving objectives with minimal resources, and effectiveness, which evaluates results in real-world conditions. Today, modern AI tools, using publicly available data, enable objective assessment of the efficacy of Sri Lanka’s government institutions.

Among key public bodies, the Supreme Court of Sri Lanka emerges as the most efficacious, outperforming the Department of Inland Revenue, Sri Lanka Customs, the Election Commission, and Parliament. In the financial and regulatory sector, the Central Bank of Sri Lanka (CBSL) ranks highest, ahead of the Securities and Exchange Commission, the Public Utilities Commission, the Telecommunications Regulatory Commission, the Insurance Regulatory Commission, and the Sri Lanka Standards Institution.

Among state-owned enterprises, the Sri Lanka Ports Authority (SLPA) leads in efficacy, followed by Bank of Ceylon and People’s Bank. Other institutions assessed included the State Pharmaceuticals Corporation, the National Water Supply and Drainage Board, the Ceylon Electricity Board, the Ceylon Petroleum Corporation, and the Sri Lanka Transport Board. At the lower end of the spectrum were Lanka Sathosa and Sri Lankan Airlines, highlighting a critical challenge for the national economy.

Sri Lankan Airlines, consistently ranked at the bottom, has long been a financial drain. Despite successive governments’ reform attempts, sustainable solutions remain elusive.

Globally, the most profitable airlines operate as highly integrated, technology-enabled ecosystems rather than as fragmented departments. Operations, finance, fleet management, route planning, engineering, marketing, and customer service are closely coordinated, sharing real-time data to maximise efficiency, safety, and profitability.

The challenge for Sri Lankan Airlines is structural. Its operations are fragmented, overly hierarchical, and poorly aligned. Simply replacing the CEO or senior leadership will not address these deep-seated weaknesses. What the airline needs is a cohesive, integrated organisational ecosystem that leverages technology for cross-functional planning and real-time decision-making.

The government must urgently consider restructuring Sri Lankan Airlines to encourage:

=Joint planning across operational divisions

=Data-driven, evidence-based decision-making

=Continuous cross-functional consultation

=Collaborative strategic decisions on route rationalisation, fleet renewal, partnerships, and cost management, rather than exclusive top-down mandates

Sustainable reform requires systemic change. Without modernised organisational structures, stronger accountability, and aligned incentives across divisions, financial recovery will remain out of reach. An integrated, performance-oriented model offers the most realistic path to operational efficiency and long-term viability.

Reforming loss-making institutions like Sri Lankan Airlines is not merely a matter of leadership change — it is a structural overhaul essential to ensuring these entities contribute productively to the national economy rather than remain perpetual burdens.

By Chula Goonasekera – Citizen Analyst

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Features

Why Pi Day?

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International Day of Mathematics falls tomorrow

The approximate value of Pi (π) is 3.14 in mathematics. Therefore, the day 14 March is celebrated as the Pi Day. In 2019, UNESCO proclaimed 14 March as the International Day of Mathematics.

Ancient Babylonians and Egyptians figured out that the circumference of a circle is slightly more than three times its diameter. But they could not come up with an exact value for this ratio although they knew that it is a constant. This constant was later named as π which is a letter in the Greek alphabet.

Archimedes

It was the Greek mathematician Archimedes (250 BC) who was able to find an upper bound and a lower bound for this constant. He drew a circle of diameter one unit and drew hexagons inside and outside the circle such that the sides of each hexagon touch the sides of the circle. In mathematics the circle passing through all vertices of a polygon is called a ‘circumcircle’ and the largest circle that fits inside a polygon tangent to all its sides is called an ‘incircle’. The total length of the smaller hexagon then becomes the lower bound of π and the length of the hexagon outside the circle is the upper bound. He realised that by increasing the number of sides of the polygon can make the bounds get closer to the value of Pi and increased the number of sides to 12,24,48 and 60. He argued that by increasing the number of sides will ultimately result in obtaining the original circle, thereby laying the foundation for the theory of limits. He ended up with the lower bound as 22/7 and the upper bound 223/71. He could not continue his research as his hometown Syracuse was invaded by Romans and was killed by one of the soldiers. His last words were ‘do not disturb my circles’, perhaps a reference to his continuing efforts to find the value of π to a greater accuracy.

Archimedes can be considered as the father of geometry. His contributions revolutionised geometry and his methods anticipated integral calculus. He invented the pulley and the hydraulic screw for drawing water from a well. He also discovered the law of hydrostatics. He formulated the law of levers which states that a smaller weight placed farther from a pivot can balance a much heavier weight closer to it. He famously said “Give me a lever long enough and a place to stand and I will move the earth”.

Mathematicians have found many expressions for π as a sum of infinite series that converge to its value. One such famous series is the Leibniz Series found in 1674 by the German mathematician Gottfried Leibniz, which is given below.

π = 4 ( 1 – 1/3 + 1/5 – 1/7 + 1/9 – ………….)

The Indian mathematical genius Ramanujan came up with a magnificent formula in 1910. The short form of the formula is as follows.

π = 9801/(1103 √8)

For practical applications an approximation is sufficient. Even NASA uses only the approximation 3.141592653589793 for its interplanetary navigation calculations.

It is not just an interesting and curious number. It is used for calculations in navigation, encryption, space exploration, video game development and even in medicine. As π is fundamental to spherical geometry, it is at the heart of positioning systems in GPS navigations. It also contributes significantly to cybersecurity. As it is an irrational number it is an excellent foundation for generating randomness required in encryption and securing communications. In the medical field, it helps to calculate blood flow rates and pressure differentials. In diagnostic tools such as CT scans and MRI, pi is an important component in mathematical algorithms and signal processing techniques.

This elegant, never-ending number demonstrates how mathematics transforms into practical applications that shape our world. The possibilities of what it can do are infinite as the number itself. It has become a symbol of beauty and complexity in mathematics. “It matters little who first arrives at an idea, rather what is significant is how far that idea can go.” said Sophie Germain.

Mathematics fans are intrigued by this irrational number and attempt to calculate it as far as they can. In March 2022, Emma Haruka Iwao of Japan calculated it to 100 trillion decimal places in Google Cloud. It had taken 157 days. The Guinness World Record for reciting the number from memory is held by Rajveer Meena of India for 70000 decimal places over 10 hours.

Happy Pi Day!

The author is a senior examiner of the International Baccalaureate in the UK and an educational consultant at the Overseas School of Colombo.

by R N A de Silva

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Features

Sheer rise of Realpolitik making the world see the brink

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A combined US-Israel attack on Iran.(BBC)

The recent humanly costly torpedoing of an Iranian naval vessel in Sri Lanka’s Exclusive Economic Zone by a US submarine has raised a number of issues of great importance to international political discourse and law that call for elucidation. It is best that enlightened commentary is brought to bear in such discussions because at present misleading and uninformed speculation on questions arising from the incident are being aired by particularly jingoistic politicians of Sri Lanka’s South which could prove deleterious.

As matters stand, there seems to be no credible evidence that the Indian state was aware of the impending torpedoing of the Iranian vessel but these acerbic-tongued politicians of Sri Lanka’s South would have the local public believe that the tragedy was triggered with India’s connivance. Likewise, India is accused of ‘embroiling’ Sri Lanka in the incident on account of seemingly having prior knowledge of it and not warning Sri Lanka about the impending disaster.

It is plain that a process is once again afoot to raise anti-India hysteria in Sri Lanka. An obligation is cast on the Sri Lankan government to ensure that incendiary speculation of the above kind is defeated and India-Sri Lanka relations are prevented from being in any way harmed. Proactive measures are needed by the Sri Lankan government and well meaning quarters to ensure that public discourse in such matters have a factual and rational basis. ‘Knowledge gaps’ could prove hazardous.

Meanwhile, there could be no doubt that Sri Lanka’s sovereignty was violated by the US because the sinking of the Iranian vessel took place in Sri Lanka’s Exclusive Economic Zone. While there is no international decrying of the incident, and this is to be regretted, Sri Lanka’s helplessness and small player status would enable the US to ‘get away with it’.

Could anything be done by the international community to hold the US to account over the act of lawlessness in question? None is the answer at present. This is because in the current ‘Global Disorder’ major powers could commit the gravest international irregularities with impunity. As the threadbare cliché declares, ‘Might is Right’….. or so it seems.

Unfortunately, the UN could only merely verbally denounce any violations of International Law by the world’s foremost powers. It cannot use countervailing force against violators of the law, for example, on account of the divided nature of the UN Security Council, whose permanent members have shown incapability of seeing eye-to-eye on grave matters relating to International Law and order over the decades.

The foregoing considerations could force the conclusion on uncritical sections that Political Realism or Realpolitik has won out in the end. A basic premise of the school of thought known as Political Realism is that power or force wielded by states and international actors determine the shape, direction and substance of international relations. This school stands in marked contrast to political idealists who essentially proclaim that moral norms and values determine the nature of local and international politics.

While, British political scientist Thomas Hobbes, for instance, was a proponent of Political Realism, political idealism has its roots in the teachings of Socrates, Plato and latterly Friedrich Hegel of Germany, to name just few such notables.

On the face of it, therefore, there is no getting way from the conclusion that coercive force is the deciding factor in international politics. If this were not so, US President Donald Trump in collaboration with Israeli Rightist Premier Benjamin Natanyahu could not have wielded the ‘big stick’, so to speak, on Iran, killed its Supreme Head of State, terrorized the Iranian public and gone ‘scot-free’. That is, currently, the US’ impunity seems to be limitless.

Moreover, the evidence is that the Western bloc is reuniting in the face of Iran’s threats to stymie the flow of oil from West Asia to the rest of the world. The recent G7 summit witnessed a coming together of the foremost powers of the global North to ensure that the West does not suffer grave negative consequences from any future blocking of western oil supplies.

Meanwhile, Israel is having a ‘free run’ of the Middle East, so to speak, picking out perceived adversarial powers, such as Lebanon, and militarily neutralizing them; once again with impunity. On the other hand, Iran has been bringing under assault, with no questions asked, Gulf states that are seen as allying with the US and Israel. West Asia is facing a compounded crisis and International Law seems to be helplessly silent.

Wittingly or unwittingly, matters at the heart of International Law and peace are being obfuscated by some pro-Trump administration commentators meanwhile. For example, retired US Navy Captain Brent Sadler has cited Article 51 of the UN Charter, which provides for the right to self or collective self-defence of UN member states in the face of armed attacks, as justifying the US sinking of the Iranian vessel (See page 2 of The Island of March 10, 2026). But the Article makes it clear that such measures could be resorted to by UN members only ‘ if an armed attack occurs’ against them and under no other circumstances. But no such thing happened in the incident in question and the US acted under a sheer threat perception.

Clearly, the US has violated the Article through its action and has once again demonstrated its tendency to arbitrarily use military might. The general drift of Sadler’s thinking is that in the face of pressing national priorities, obligations of a state under International Law could be side-stepped. This is a sure recipe for international anarchy because in such a policy environment states could pursue their national interests, irrespective of their merits, disregarding in the process their obligations towards the international community.

Moreover, Article 51 repeatedly reiterates the authority of the UN Security Council and the obligation of those states that act in self-defence to report to the Council and be guided by it. Sadler, therefore, could be said to have cited the Article very selectively, whereas, right along member states’ commitments to the UNSC are stressed.

However, it is beyond doubt that international anarchy has strengthened its grip over the world. While the US set destabilizing precedents after the crumbling of the Cold War that paved the way for the current anarchic situation, Russia further aggravated these degenerative trends through its invasion of Ukraine. Stepping back from anarchy has thus emerged as the prime challenge for the world community.

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