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Moves to kick-start Rs.15bn mega pipeline project comes under fire

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Despite anticipated drop in fuel consumption for thermal energy

bY SURESH PERERA

With three major Liquefied Natural Gas (LNG) projects now on the cards coupled with the commissioning of the Mannar wind power plant, questions are being raised over ongoing moves to forge ahead with plans to build a mega Rs.15 billion cross-country oil pipeline when the long-term demand for thermal power is expected to drop drastically.

The renewed interest within some quarters with political blessings to implement the proposed pipeline project at such stupendous cost has raised eyebrows as the monthly consumption of 45,000 metric tons of fuel to generate costly thermal energy will no longer be necessary with LNG and wind power supplementing the country’s demand for power, industry officials said.

At a time Sri Lanka is facing a grave economic crisis due to the Covid-19 pandemic, what is the urgent need for a cross-country pipeline when there will be far less fuel imports in the long term?, they asked.

With a proposed solar power project at Siyabalanduwa also in blueprint stage, constructing a high cost pipeline at this juncture is as insensible as “watering outdoor plants when it’s raining”, and ultimately result in the project being rendered redundant with billions of rupees going down the drain, they opined.

In addition, bids have already been called to build a new pipeline to facilitate the transfer of jet fuel from the Muthurajawala tank farm to Katunayake at substantial cost. Under the circumstances, what’s the viability of investing on another project when alternate energy sources will make thermal power generation irrelevant in the long run, industry players further queried.

Even if the cross-country pipeline project begins tomorrow, it will take another four years for its completion, whereas the LNG plants will be operational within three years. With a lifespan of 25 years on the pipeline, the country will not be able to recover even the cost of the multi-billion rupee project, they asserted.

Sri Lanka has already signed three major LNG deals with the governments of China, India and Japan. While the proposed combined plants are expected to add 1,400MW to installed capacity, the transnational agreements will play a key role in mitigating unreliability in hydro power supply while bolstering foreign capital inflows.

Sri Lanka’s fuel consumption per day is 5,000 metric tons, of which 1,500 metric tons are channeled to generate thermal power. While the Sapugaskanda facility has the capacity to refine 2,000 metric tons of crude oil per day, the balance 1,500 metric tons are imported as refined oil.

Lanka IOC directly imports refined oil, which is stored and distributed by Ceylon Petroleum Storage Terminals Limited (CPSTL).

A tanker load of 40,000 metric tons of fuel can be discharged within 24 hours. With the anticipated drop in fuel consumption for thermal energy after the proposed entry of LNG into the energy market, the number of tankers can be also reduced with a substantial cost saving, industry officials said.

The cross-country project was first proposed during 2013-14 but was shelved with the construction of the Muthurajawala oil tank farm, which was augmented by a new oil pipeline at the Sapugaskanda Oil Refinery by CPC (Ceylon Petroleum Corporation) engineers.

However, renewed interest on the project re-surfaced during the tenure of the previous UNP government with then Minister Kabir Hashim presenting to the Cabinet a bid by Langfang-based China Petroleum Pipeline Bureau to build the pipeline at a cost of Rs. 15 billion.

A Malaysian company, which quoted Rs. 7.5 billion for the proposed project was disqualified at the time as its tender documents were apparently “not in order”.

Under the new dispensation, the CPSTL sought the cancellation of the tender awarded to the Chinese company as the CPC engineering team reached the conclusion that they can undertake the job after a new feasibility study and related research were conducted to find alternatives as the estimated Rs. 15 billion cost factor was enormous.

The project could be completed internally within 30 months at a cost of Rs. 5 billion, which translates into a saving of Rs. 10 billion for the country. However, with multiple alternate sources of energy in the offing, it has been determined that it was unviable to implement such a mega project at tremendous cost when another new 18-inch diameter pipeline would suffice to meet the demand.

It doesn’t make sense to call for international tenders to build pipelines when local engineers are capable of achieving the feat, industry officials said. “Of course, there are no fat commissions rolling in when these jobs are handled by Sri Lankan professionals”.

In what industry players described as a “strange twist”, there are continuing overtures to push through the pipeline project in a new game plan to perhaps line the pockets of some officials as the task could be completed for one-third of the estimated cost by local engineers. “With Rs. 10 billion to throw, there will be many on the gravy train if the deal works out!”.

Meanwhile, S. D. J. Paregama, secretary of the Sri Lanka Nidahas Sewaka Sangamaya (Petroleum Branch) expressed concern over moves to revive the project, which, he said, was a waste of public funds at a time the country’s economy was in bad shape.

“After our union wrote to President Rajapaksa on the futility of implementing this costly pipeline project, he directed that it be halted immediately”, he said.

After a bout of silence, there are subtle moves now to push ahead with the project with the Chinese bidder, he claimed.

“As a trade union which supported the President at the last election, we expect him to take a firm stand to ensure that public funds are not squandered on projects that are white elephants”, he emphasized.



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Civil society activist accuses govt. of favouring Ven. Gnanasara

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Galagodaatte Gnanasara / Viyangoda

Court of Appeal issues warrant for monk’s arrest

by Shamindra Ferdinando

Civil society activist Gamini Viyangoda on Monday (28) lambasted the NPP government for its failure to act promptly on the Supreme Court cancelling the presidential pardon granted to the General Secretary of Bodu Bala Sena (BBS) Galagodaatte Gnanasara.

Addressing a gathering at the Sri Lanka Foundation to mark the launch of ‘Rajapaksha Samagama’ and ‘Pasku Praharaye Thoththa Babala’ by Lasantha Ruhununuge and Tharindu Uduwaragedara and M.F.M., Faseer, Viyangoda alleged that President Dissanayake’s government was also acting in a manner partial to Gnanasara Thera, the way all previous governments had done.

The NPP should be ashamed of its pathetic failure to act swiftly and decisively, immediately after the Supreme Court revoked President Maithripala Sirisena’s pardon. Viyangoda said that the government owed an explanation as to why law enforcement authorities couldn’t apprehend Gnanasara, following the announcement made on 14 Sept. “For two weeks what were they doing,” he asked.

Ven. Gnanasara was sentenced, in 2018, for a six-year period for contempt of court and intimidating Sandya Eknaligoda, the wife of Prageeth Eknaligoda who disappeared in 2010. But, President Sirisena pardoned him before the convicted monk completed one year of his six-year term.

Viyangoda said that Ven. Gnanasara had openly moved about freely, launched a book and acted as if the Supreme Court ruling didn’t have any impact. Every minute Gnanasara stayed in the open it was an affront to the Supreme Court, Viyangoda said, accusing the government of shielding a wrongdoer.

Referring to certain incidents during the Yahapalana time, Viyangoda revealed that he personally sought the then Prime Minister Ranil Wickremesinghe’s direct intervention to have Ven. Gnanasara, hiding at a faraway temple, apprehended. “I met Wickremesinghe at Temple Trees. When I raised the failure on the part of police to apprehend Gnanasara, Wickremasinghe immediately called Sagala Ratnayake, who was in charge of public security at that time. Ratnayake promised to take the monk to custody the following day. The next day, Gnanasara surrendered through a lawyer.”

Viyangoda alleged that the Wickremesinghe government had shielded Vem. Gnanasara. The Wickremesinghe-Sagala Ratnayaka duo did that in style, he said, accusing the present government, too, of doing the same.

The Court of Appeal yesterday (29) issued a warrant for the arrest of Gnanasara Thera and ordered that he be produced before the court on 1 Oct.

The court further directed that the warrant be executed through the Inspector General of Police.

This happened when a motion filed by the Attorney General, seeking an order to enforce the prison sentence imposed on Gnanasara Thera, was taken up before the Court of Appeal.

The motion was heard before a Court of Appeal bench, comprising Justices Mayadunne Corea and Lakmali Karunanayake.

President’s Counsel Anura Meddegoda, appearing for Gnanasara Thera, told the court that his client was resting due to illness and requested a date to study the motion and make submissions.

But State Counsel Sajith Bandara declared that the matter concerned a criminal case and requested that the court issue a warrant if the accused failed to appear before the court.

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More cops than cones

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Colombo’s bus priority lane rule returned today, 29 September, as a pilot programme across the city and nearby areas. It applies from 6 a.m. to 9 a.m. and from 4 p.m. to 7 p.m. daily. The renewed operation covers seven designated lanes, meant to cut delays and make public transport more predictable.

Transport Minister Bimal Rathnayake said officials would monitor the trial to assess its effect on congestion and public transport efficiency. Police have told all officers to take legal action against violators. Drivers may enter a lane only in unavoidable cases, such as emergencies, exceptionally heavy traffic, or to cross it when turning.

The Lanka Private Bus Owners’ Association has welcomed the move, and Metro Bus is adding five new routes.

The rule has been revived before, and past efforts struggled with enforcement, so the pilot project’s results will matter.

(Image courtesy Hiru)

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Sajith accuses govt. of using data selectively in crucial report

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Sajith Premadasa

Opposition Leader Sajith Premadasa has said the government is attempting to paint a falsely beautiful picture of the country’s situation through the Socio-Economic Data report issued together with the Census and Statistics and the Central Bank. “They have selectively included certain information while intentionally omitting other vital facts,” Premadasa has said in a media statement. When presenting data, there must be chronological consistency and integrity. The Central Bank and the Department of Census and Statistics have no right to present outdated data to formulate a conclusion, thereby marginalising an entire segment of the population, Premadasa has argued, pointing out that their primary duty is to report accurate information to the public.

Premadasa says that up to page 18 of the report, recent data from 2023 to 2025 have been used. For main economic indicators, macroeconomic indicators, demographic data, and life expectancy, 2024 data have been used. Indicators such as external trade finance, consumer price indices, Real GDP, imports and exports, prosperity indices, and human development indices have also been compared with Asian and SAARC countries using recent data. However, for the section detailing socio-economic conditions from page 19 to page 34, the data used are exclusively from the outdated 2016–2019 period.

When discussing socio-economic conditions, the data used for household income and expenditure surveys, provincial-level conditions, housing facilities, energy consumption, cooking, and population distribution are entirely from 2016 to 2019, the Opposition Leader has said. Specifically, the data on poverty mentioned on page 33, and even the data on per capita daily food consumption capacity on page 34, belong to this old 2016–2019 timeframe. Formulating a report for the year 2026 using such outdated data is a deliberate attempt to mislead the country and its people.

Premadasa says that from page 35 onwards, fresh 2025 data have been used for sections on prosperity, demographics, the labour force, and employment. Recent data based on current market conditions have also been provided for Gross National Income (GNI) by industrial sources, food prices, imports and exports, tourism, government revenue, state debt, and interest rates.

“If the authorities can present recent data (for 2023, 2024, and 2025) for foreign debt, financial activities, financial sector trends, and money supply, why are they using 2016 and 2019 data for poverty to mislead the country?” the Opposition Leader has asked, pointing out that the main report and its summary prove that while the government uses updated data for macroeconomic aspects, it uses obsolete data regarding poverty, inequality, income distribution, and living standards. The Opposition Leader has called this a historic deception regarding the country’s poverty, asking whether the 12.11.2026 Budget will be on these false data?

Premadasa has said that the government claims that a person can survive for 30 days on Rs. 17,315, which is an absolute lie and a deception. “This Government lacks updated data or definitions for poverty. Since the country went bankrupt, a proper household income and expenditure survey has not been conducted, nor has the poverty line been accurately identified.” He questioned whether the upcoming budget, scheduled for 12.11.2026, will be based on these false and flawed data.

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