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COPE wants AG to submit report on controversial gas deal

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By Saman Indrajith

Committee on Public Enterprises (COPE) has recommended that Auditor General’s Department conduct an investigation into the cancellation of the Term Tender, approved by the Cabinet to buy gas from Siam Gas at USD 96 per metric ton and the purchase of 100,000 metric tons of gas at a cost of USD 129 per metric ton from an Oman company.

COPE chaired by Prof Charitha Herath made this observation when Litro Gas Lanka Ltd., Litro Gas Terminal Lanka (Private) Ltd., and Sri Lanka Insurance Corporation were summoned before COPE as part of an inquiry to ascertain if the orders given by the previous COPE had been implemented and to discuss their current performance.

It was discovered that tenders had been invited to purchase 2,80,000 metric tons of gas and three gas suppliers had submitted bids. Siam gas Company had offered the lowest price (USD 96) per metric ton, and accordingly the Cabinet had approved to award the tender to that company.

The Litro officials said that gas could not be obtained from Siam gas Company due to the economic crisis as banks in Sri Lanka were unable to submit the Standby Letter of Credit (SBLC) to Litro as per the conditions stipulated during the bidding process.

They further said that during the discussions with the company, Siam had expressed its unwillingness to supply gas without a Standby Letter of Credit (SBLC).

Due to that delay, as a temporary solution, Siam gas Company had suggested that it could provide 15,000 metric tons of gas as an emergency purchase. This is the gross amount of gas required for two weeks. However, the company then said it could supply only 6600 metric tons.

Litro officials also said that the Oman company, which had sent prices at USD 129 per metric ton for the Term Tender, had agreed to provide 100,000 metric tons of gas for four months at 25,000 metric tons per month.

Accordingly, after informing the Cabinet of the situation, the term tender given to Siam gas Company had been cancelled and Cabinet and approval granted for the term tender to purchase 100,000 metric tons of gas from the Omani company.

A USD 70 million loan from the World Bank and 20 million of Litro Gas Lanka Ltd., amounting to USD 90 million in total had been used for this procurement, Muditha Peiris, Chairman of Litro Lanka said.

The COPE chairman instructed the Auditor General’s Department to conduct an investigation and report whether the loan amount of USD 70 million from the World Bank had been properly utilised.

Prof. Herath added that buying gas from the Omani company at a higher price instead of the lowest bidder, Siam, could set a bad precedent.

The committee also inquired why Litro had not been able to purchase gas with USD 160 million allocated for the purchase of gas under the Indian Credit Line.The Litro chairman said that according to the conditions of the Indian government, Litro had to buy gas from the Indian company.

Litro officials said several rounds of discussions had been held on the matter. The COPE Chairman recommended to the Secretary to the Ministry of Finance to look into the issue immediately and submit a report within two weeks.

The attention of the COPE was also drawn to the fact that there were only four directors at Litro. It was revealed that according to the law, there should be five members. Since the Ministry of Finance appoints the members of the Board of Directors, COPE pointed out the need to appoint the Board of Directors as per law. The COPE Chairman recommended the Secretary to the Ministry of Finance to take necessary measures on this.

The COPE discussed the suitability of the same person holding the positions of Chairman and Chief Executive Officer of the company.The COPE also inquired whether Litro could obtain financial support from Sri Lanka Insurance Corporation, the parent company. Chairman of the Sri Lanka Insurance Corporation, Vijitha Herath said that the company had been able to purchase gas in the past due to the deposit of nearly five billion rupees in a state bank.

Representing the Secretary of the Ministry of Finance, Saman Fernando. Deputy Secretary to the Treasury, Chairman of the Sri Lanka Insurance Corporation and former Litro Chairman Vijitha Herath, Litro Chairman Muditha Peiris were present at this meeting whilst Thesara Jayawardane, former chairman of Litro Company, joined online.

Parliamentarians Patali Champika Ranawaka, Mahindananda Aluthgamage, Anura Dissanayaka, (Dr.) Harsha de Silva, (Dr.) Sarath Weerasekera, Jagath Pushpakumara, Indika Anuruddha, S.M Marikkar, Jayantha Samaraweera, (Dr.) Nalaka Godahewa, Premnath C. Dolawatta and Madhura Withanage were present at the meeting.



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PM departs Sri Lanka to participate in the 56th World Economic Forum Annual Meeting in Davos-Klosters, Switzerland.

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Prime Minister Dr. Harini Amarasuriya departed Sri Lanka on this morning  (19 January) to participate in the 56th Annual Meeting of the World Economic Forum (WEF), to be held in Davos-Klosters, Switzerland, from 19 to 23 January 2026.

The World Economic Forum 2026 will be convened under the theme “A Spirit of Dialogue” and will bring together over 3,000 global leaders, including heads of state, government leaders, chief executive officers of leading multinational corporations, policymakers, and technology innovators.

During the visit, the Prime Minister is scheduled to hold a series of high-level bilateral meetings with key international leaders, heads of global institutions, and other distinguished dignitaries.

(Prime Minister’s Media Division)

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Coal scandal: Govt. urged to release lab report

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Pubudu Jagoda

The government is under mounting pressure to release a foreign laboratory report on the controversial coal consignment imported for the Lakvijaya Power Plant, with the Frontline Socialist Party (FSP) accusing the authorities of political interference and tender manipulation.

Speaking to the media after a party meeting in Homagama yesterday, FSP Education Secretary Pubudu Jagoda demanded an immediate explanation for the delay in disclosing the report from a Dutch laboratory, Cotecna, which was commissioned to test samples of the coal stocks in question after doubts were raised about an earlier local laboratory assessment. Jagoda said Cabinet media spokesperson Dr. Nalinda Jayatissa had announced that the report would be submitted by 16 January, but it had yet to be made public.

“The Sri Lankan lab confirmed the coal was substandard and could damage both the environment and power plant machinery. The foreign lab has independently verified the same results, we are told. Yet, political pressure appears to be delaying the release of the report.” He warned that any attempt to issue a false report would eventually be exposed and urged the government and the laboratory to maintain transparency.

SLPP MP D.V. Chanaka told Parliament last week that while 107 metric tonnes of coal were normally required per hour to generate 300 megawatts, but as many as 120 tonnes of newly imported coal were needed to produce the same amount of power due to its lower calorific value. Tests showed the first two shipments had calorific values of 5,600–5,800 kcal/kg, below the required minimum of 5,900 kcal/kg, said.

Jagoda accused the government of tailoring procurement rules to benefit an Indian supplier, citing a drastic reduction in reserve requirements—from one million metric tonnes in 2021 to just 100,000 tonnes in 2025—and alleged previous irregularities by the company, including a 2016 Auditor General finding regarding a rice supply contract and the 2019 suspension of a key agent of the company by the International Cricket Council over match-fixing.

He further criticised systemic manipulation of the coal tender process, including delays in issuing the tender from the usual February-March window to July, and progressively shortening the submission period from six weeks to three, giving an advantage to suppliers with stock on hand.

The Ministry of Energy recently issued an amended tender for 4.5 million metric tonnes of coal for the 2025/26 and 2026/27 periods, following the cancellation of an earlier tender. Jagoda warned that procurement delays and irregularities could trigger coal shortages, higher spot-market purchases, increased electricity costs, and potential power cuts if hydropower falls short.

Jagoda called for urgent investigations into the procurement process, insisting that any mismanagement or corruption should not be passed on to the public.Denying any wrongdoing, the government has said it is waiting for the lab report.

by Saman Indrajith ✍️

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Greenland dispute has compelled Europe to acknowledge US terrorising world with tariffs – CPSL

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Dr Weerasinghe

The Communist Party of Sri Lanka yesterday (18) alleged that the US was terrorising countries with unfair tariffs to compel them to align with its bigot policies.

CPSL General Secretary Dr. G. Weerasinghe said so responding to The Island query regarding European countries being threatened with fresh tariffs over their opposition to proposed US take-over of autonomous Danish territory Greenland.

US President Donald Trump has declared a 10% tariff on goods from Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands and Finland with effect from 1 February but could later rise to 25% – and would last until a deal was reached. Targeted countries have condemned the US move.

Dr. Weerasinghe pointed out that none of the above-mentioned countries found fault with the US imposing taxes on countries doing trade with Russia and Iran. Now that they, too, had been targeted with similar US tactics, the CP official said, underscoring the pivotal importance of the world taking a stand against Trump’s behaviour.

Referring to the coverage of the Greenland developments, Dr. Weerasinghe said that news agencies quoted UK Prime Minister Keir Starmer as having said that the move was “completely wrong”, while French President Emmanuel Macron called it “unacceptable.

Dr. Weerasinghe said that Sri Lanka, still struggling to cope up with the post-Aragalaya economic crisis was also the target of discriminating US tariff policy. The top CPSL spokesman said that the recent US declaration of an immediate 25% increase in tariff on imports from countries doing business with Iran revealed the prejudiced nature of the US strategy. “Iran is one of our trading partners as well as the US. Threat of US tariffs on smaller countries is nothing but terrorism,” Dr. Weerasinghe said, stressing the urgent need for the issue at hand to be taken up at the UN.

Responding to another query, Dr. Weerasinghe cited the US targeting India over the latter’s trade with Russia as a case in point. He was commenting on the recent reports on India’s Reliance Industries and state-owned refiners sharply cutting crude oil imports from Russia. The CPSL official said that the EU wouldn’t have even bothered to examine the legitimacy of US tariff action if they hadn’t been targeted by the same action.

Perhaps, those who now complain of US threats over the dispute regarding Greenland’s future owed the world an explanation, Dr. Weerasinghe said. The reportage of the abduction of Venezuela’s President and the first lady underscored that the US intervened because it couldn’t bear the Maduro administration doing trade with China and other countries considered hostile to them, Dr. Weerasinghe said.

The CPSL official said that the NPP couldn’t turn a blind eye to what was happening. Just praising the US wouldn’t do Sri Lanka any good, he said, adding that the Greenland development underscored that the US under Trump was not concerned about the well-being of any other country but pursued an utterly one-sided strategy.

The US dealings with the NPP government, particularly the defence MoU should be examined taking into consideration US tariffs imposed on Sri Lanka at the onset of the second Trump administration and ongoing talks with the US, Dr. Weerasinghe.

By Shamindra Ferdinando ✍️

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