News
Energy experts complain of cheap feasibility study on expensive LNG facility
By Rathindra Kuruwita
Only USD 45,000 has been spent on a feasibility study for deploying a floating storage and regasification unit (FSRU) and a mooring system for liquefied natural gas (LNG) although Sri Lanka will spend about USD 4 billion annually for the infrastructure and the purchasing of LNG, energy experts claim.
They said that the feasibility study, commissioned by the Asian Development Bank (ADB), had been carried out by an Indian company that had little experience in LNG. High quality LNG and petroleum industry consultations were expensive by nature and around USD 3-4 million was usually charged for such a consultation.
Moreover, the CEB had already called for tenders for an FSRU, although the feasibility study had not been finalised. Given the fact that everyone in the industry knew that CEB was to float this tender by February, the ADB can’t deny knowledge of it, industry sources said.
The total allocation by the ADB for the feasibility study on identifying optimal LNG facility for Sri Lanka (i.e. land based or floating storage and regasification unit), most suitable locations to develop LNG power plants and associated facilitate) was USD 225,000. Out of this amount USD 150,000 was spent on meteorological and ocean data because both these factors affect the FSRU, according to the Terms of Reference (ToR) by the ADB. USD 45,000, out of the remaining USD 75,000, was given for international consultants for a feasibility study, according to the ToR.
“An experienced oil or gas expert is not going to work for that amount. This USD 45,000 was for three man months. Usually, an experienced consultant would at least charge USD 50,000 per month for such a consultation,” energy expert, Vidhura Ralapanawa said.
He said a study commissioned by JAICA about the feasibility of supplying gas for proposed LNG plants by India and Japan had run into several million dollars.
Ralapanawa said: “The FSRU is a serious business. The CEB is reported to have called for international proposals to deploy the FSRU and that the ADB feasibility study is not out yet. However, the fact that this was a study done very cheaply in a very expensive industry should also give us pause.”
News
All set for Colombo rally against govt.’s tax policies
The Frontline Socialist Party-backed People’s Struggle Movement is set to stage a protest march in Colombo today (03) against what it describes as the growing tax burden on the public and the rising cost of living.
The organisers are due to commence the “Colombo March Against Unjust Taxes” at noon from Campbell Park, Borella. The FSP has also been mobilising support for the protest in Colombo and its suburbs in the run-up to the event.
People’s Struggle Movement National Executive Council member Wasantha Mudalige, speaking at a media briefing in Nugegoda yesterday (02), called on the public to join the protest, saying the movement intended to bring the tax burden faced by ordinary people to the forefront.
Mudalige alleged that successive tax measures had placed an excessive burden on households, particularly through taxes on food and educational items. He also criticised the Government over what he described as the high cost of basic food items and the difficulties faced by parents in meeting their children’s educational expenses.
He accused the Opposition of failing to adequately address the issue, claiming that opposition parties raised such concerns, mainly during election periods.
Mudalige also criticised the Government for what he described as a departure from promises made before the 2024 presidential election regarding taxes on educational equipment.
He questioned the tax burden on food items, citing figures of Rs. 100 per kilogramme on dried sprats, Rs. 310 per kilogramme on chicken and Rs. 11 per egg.
He further alleged that while ordinary people were bearing a heavy tax burden, wealthy groups were receiving tax concessions. He also criticised the Government’s economic programme and its implementation of measures associated with the International Monetary Fund (IMF).
The movement has framed today’s protest as part of a broader campaign over the cost of living and taxation. The People’s Struggle Alliance has separately announced that the Campbell Park demonstration will be the first in a series of public actions, with further protests planned in November.
Mudalige said the movement would continue to take the issue to the streets and urged the public to participate in today’s demonstration.
People’s Struggle Movement National Executive Council member Jayantha Amarasinghe also addressed the press.
News
Yoshitha R money laundering trial postponed
The Colombo High Court yesterday postponed the trial in the case filed under the Prevention of Money Laundering Act against Yoshitha Rajapaksa, son of former President Mahinda Rajapaksa.
The case was taken up before Colombo High Court Judge Udesh Ranatunga, with Yoshitha Rajapaksa, who is currently out on bail, appearing in court.
The trial was postponed as the President’s Counsel appearing for the defence was indisposed.
The Attorney General has filed the case against Rajapaksa, alleging that he committed an offence under the Prevention of Money Laundering Act by purchasing five plots of land in Dehiwala and Ratmalana, worth more than Rs. 73 million.
News
Lankan troops test mettle in Russian war games
A contingent of the Sri Lanka Army, comprising 20 officers and 55 other ranks, participated in the combined military exercise ‘Wolverine Path II–2026’, conducted with the Armed Forces of the Russian Federation in Vladivostok, Russia, from September 18 to 25.
According to the Ministry of Defence, the exercise primarily focused on counter-terrorism operations and provided participating troops with training in a challenging combined operational environment.
The exercise included a range of tactical activities, including heli-rappelling, close-quarters battle (CQB), ambush operations, sniper firing, drone operations, buggy training and combat medical support.
The Ministry said the training enabled Sri Lankan troops to further develop their combat skills, tactical coordination and operational readiness.
It also provided an opportunity for the two militaries to exchange professional knowledge, operational experience and tactical expertise. Sri Lankan personnel gained exposure to training methodologies, tactical approaches and operational practices adopted by the Russian Armed Forces, the Ministry said.
The participation also enabled the Sri Lankan contingent to identify lessons from the joint training and share its own experiences with the Russian military.
The Sri Lankan contingent returned to the country following the exercise and arrived at Mattala Rajapaksa International Airport on September 28.
The Ministry said participation in the exercise contributed to enhancing the professional knowledge, tactical awareness and operational preparedness of Army personnel while promoting military-to-military cooperation, mutual understanding and professional relations between Sri Lanka and Russia.
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