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Govt. scrapes USD 610 mn to pay for 2.2 MT of coal
By Ifham Nizam
The government had made arrangements to pay USD 610 million for 2.2 million MT of coal needed between September and April, Power and Energy Minister Kanchana Wijesekera told senior engineers of the Ceylon Electricity Board.CEB Senior Engineers Association (CEBSEA) Spokesperson Engineer Nandika Pathirage told The Island he believes there would be a continuous supply of coal.
However, he said that out of the two non-functioning units of the coal fired power plant complex at Norochcholai one would be restored within five days and the other unit would take about 50 days to repair.
Meanwhile, Dr. Hasala Dharmawardena, Electric Power Distribution Planning and Analysis Engineer at Leidos, commenting on energy prices, told The Island: “I think energy prices are increasing. We will not have energy security unless we go for mass renewables. LNG is better than coal because the power plants are much cleaner, more flexible in operation, and can be built much faster. But it is just a stop gap. This is the option the USA is going for now. But the US produces natural gas. Also, it is going to be a tough pill, because all our fossil fuel choices are going to be expensive. Coal too comes with a lot of financial and geopolitical risks, future loans from global organizations will contain terms that will force us to stop operating coal plants”
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Former first lady Shiranthi Rajapaksa arrested by CIABOC
Former first lady Shiranthi Rajapaksa, wife of former President Mahinda Rajapaksa was produced before the Hulftsdorp court, after being arrested by officers of the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) and produce
News
U.S. Navy ship USS Tulsa arrives in Colombo for replenishment visit
The U.S. Navy ship USS Tulsa (LCS 16) arrived at the Port of Colombo this morning, 7 October 2026 for replenishment purposes.
The visiting ship was welcomed by the Sri Lanka Navy in accordance with naval traditions.
The 127.7-metre-long platform is a Littoral Combat Ship commanded by Commander BM Wanier. Commissioned on 16 February 2019, USS Tulsa has since been in service with the US Navy.
The ship previously made a port call in Sri Lanka on 27 August 2025.
News
Fuel crunch looms
Govt. tells fuel distributors to maintain stocks to ensure uninterrupted supplies
by Saman Indrajith and Norman Palihawadane
The government had instructed private fuel distributors to maintain minimum stocks and ensure uninterrupted supplies to the market, Energy Minister Anura Karunathilaka told Parliament yesterday (06).
Karunathilaka said the Ministry of Energy Secretary had notified the relevant companies of the requirement, following a reduction in supplies by some private distributors, amid higher international fuel prices.
The Minister said private companies had informed the government that they were facing losses because international prices had risen while fuel was being sold, locally, at prevailing prices. As a result, some companies had reduced the volumes released to the market.
The reduced supplies had increased the burden on the Ceylon Petroleum Corporation (CPC), whose share of the diesel market had risen from about 54% to 82%, the Minister said.
“The CPC currently holds an 82% share of the market,” he said, adding that it had increased its supplies, compared with February, to compensate for the reduction by private distributors.
Karunathilaka said the government could not, under the existing agreements with private companies, specify the quantities they should supply to individual filling stations. However, it could require them to maintain minimum stocks in the country.
The Minister said the Energy Ministry had already instructed companies that had failed to maintain the required stocks to take steps to prevent supply disruptions.
The Minister attributed the queues reported at some filling stations to reduced supplies from private distributors, as well as normal variations in fuel distribution. He also said demand for CPC fuel had increased because private companies generally did not provide fuel to dealers on credit, while the CPC offered a three-day credit facility.
“We expect that, as the Ceylon Petroleum Corporation takes on this additional burden, the problem will ease to some extent by Wednesday or Thursday,” Karunathilaka said.
He said instructions had also been issued to increase supplies to CPC filling stations. A special discussion on the issue is scheduled for today (07), with officials of the Energy Ministry and CPC expected to participate,
along with President Anura Kumara Dissanayake.
Meanwhile, Petroleum Dealers’ Association officials have called for an early solution to the supply issue. Association Chairman D.V. Shantha Silva said queues had been reported at many filling stations, mainly those operated by private distributors.
He said the situation was not due to an overall shortage of fuel, but was linked to reduced orders by Lanka IOC, Sinopec and R.M. Parks amid concerns over losses incurred on fuel sales.
The Ceylon Petroleum Private Tanker Owners Association has urged motorists to refrain from panic buying, saying there was no nationwide disruption to fuel supplies.
The government earlier increased fuel prices and introduced a per-litre diesel subsidy following concerns raised by distributors over rising international prices.
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