Opinion
Sri Lanka pays USD 295 per MT of coal while Russian companies sell it at USD160!
by a Special Correspondent
As per the latest Argus publication, several Russian companies including Suek AG, have sold high calorific coal to all over the world at much discounted value than the selected bidder of the disputed coal tender. Black Sand Commodities, which is said to be a sister company of Suek AG, quoted 295 USD per metric ton and won the tender and Black Sand Commodities was the only bidder in the tender which gave a price proposal. Tender was to procure 4.5 million metric ton of coal, enough to run the Norochcholai coal power plant for the next two years.
During the July-August period, Russian companies have sold coal to India at USD 160 per metric ton, Turkey at USD 140, Morocco at USD 159, and South Korea at USD 180 at FOB price. These prices are significantly lower than the price of 295 USD per metric ton offered by bidders selected the Lanka Coal Company (LCC), which will at least be paying 500 million USD over and above the market value to Black Sand Commodities for the said supply of 4.5 million metric ton of high calorific coal.
Argus publication of coal indexes and Russian coal data are the most reliable data and information as far as Russian coal is concerned. These data can be obtained by any interested parties through argusmedia.com website.
Recently-concluded coal tender of LCC was the country’s largest ever commercial tender and it was for a value of USD 1500 million. Tender was awarded to the only responsive bidder, Black Sand Commodities. Whole bidding process through which this tender was awarded has now become a huge controversy since the LCC Chairman admitted that one week prior to tender closure, LCC had changed the qualification criteria for tender. Even though it is claimed that the said changes were made to attract more bidders for the tender they have not attracted any new bidders; they only helped Suek AG, which was already in the bidding process to bid through a different front. Industry analysts say that if the said change of qualification criteria had been made to attract more bidders to the process, that should have been done prior to the commencement of the tender process, not just six days before the closing date, and enough publicity should have been given thereto. They point out that changes effected just six days prior to tender closing date, after pre-bid meeting, will not attract any new bidders to the process but will benefit the targeted bidder, which in this case is Suek AG, which now claims that it did bid through Black Sand Commodities.
Interestingly, Black Sand Commodities was unable to give a bid bond in its own name, and the bid bond given was in the name of Suek AG! The said bid bond was issued by People’s Bank. As per internal LCC sources, how TEC accepted a bid from a party without a valid bond in its name itself and how Special Standing Cabinet Appointed Procurement Committee (SSCAPC) asked to the Cabinet to proceed with the said bidder who even did not have a bid bond in its name, is another huge controversy. The SSCAPC is headed by former RDA Chairman/Secretary to the Ministry of Highways R. Pemasiri.
Even though Minister in charge, Kanchana Wijesekera, and LCC Chairman, Jagath Perera, have claimed that they gave the deal to the lowest bidder, it was a suppression of facts as Black Sand was the only responsive bidder in the tender. Accordingly, it has not been awarded to the lowest bidder; instead, it has been awarded to the only bidder which has bid almost 65% more than the market price! Market price and the bid price gap in the whole deal is more than 500 million USD, which is enough for 10 shiploads of diesel or petrol.
Their claim that Black Sand gave six months credit without interest is also a manipulation of facts as per industry analysts. As per the transaction details, Black Sand has not given six months credit to LCC. What it has offered is to make the supply based on six months irrevocable LC (letter of credit) to be issued from People’s Bank. Supply on credit and supply on LC are completely two different terms and it seems these terms have been used to mislead the public and the Cabinet of ministers. To purchase on 180 days LC, the Lanka Coal Company must have at least 300 million USD in cash or a credit facility with People’s Bank at this moment! As per banking source this is not the case! The strategy of these elements has been to enter into the transaction first by making misleading statements and thereafter seek funds from the Treasury citing urgency and warning of 12-hour blackouts.
Senior employee of LCC said: “What we should do now is to put this smelly deal on hold, opt for a spot tender for a lower quantity for the immediate requirement of the country and then go for a long-term tender to attract the best prices. That way we could easily save hundreds of millions of dollars,” he said.
Opinion
Jeffrey: Cartoonist par excellence
If there exists a print media personality who does not receive the due recognition and appreciation he rightfully deserves, it undoubtedly is ‘Jeffrey’ of The Island newspaper. The works of many a journalist have been frequently highlighted and appreciated but the capabilities and efficiency of personnel of the calibre of ‘Jeffrey ‘ are, more or less, taken for granted.
In every sphere of life, professional or occupational, there are people who function, not necessarily from behind the scenes, but nevertheless perform an equally efficient service, which in all probability goes unnoticed.
To be frank, even before reading the headlines of the Newspaper, as is customary now, my eyes seek for the Cartoon of the day. Indeed, a sight for sore eyes each morning, the lovable ‘Jeffrey’ makes my day.
Suffice to say that a ‘Good Job done man’ type of occasional pat on the back, to a person who puts his very soul into his work, would touch the only place where it matters the most – his heart. If a smile could work wonders, then how much further would a word of appreciation go.
‘Jeffrey ‘ has, time and again through his cartoons, aptly proven his innovative and creative skills to present factual depiction of current affairs, both local and global. His drawing pen effortlessly covers all boundaries, irrespective of whatever nature. On a previous occasion, too, I have openly commended his abilities, finding it difficult to fathom how he could convey pertinent incidents, normally requiring hundreds of words to express, with a single drawing.
To all intents and purposes, ‘Jeffrey ‘ ranks much higher and could be considered as a rare find when compared with the numerous others actively engaged in this particular field of professionalism.
In ‘Jeffrey ‘, The Island newspaper indeed has a Cartoonist par excellence!
Jeffrey, more power to your elbow!
WILLIAM PHILLIPSZ
Opinion
Anti-aging injection shows promise in re-growing knee cartilage
Scientists at Stanford Medicine have reported a discovery that could change how arthritis and joint damage are treated. In experiments on animals and human tissue, researchers found that blocking a protein linked to aging can restore worn cartilage in the knee and prevent arthritis after injury. The treatment works not by adding stem cells, but by reprogramming existing cartilage cells to behave in a more youthful way.
In aging mice, an injectable drug rebuilt knee cartilage that normally thins with age. In mice with knee injuries similar to anterior cruciate ligament tears, the same treatment prevented the onset of arthritis, a condition that often follows such injuries in humans. A pill form of the drug is already being tested in early clinical trials for age-related muscle weakness, raising hopes that a similar approach could one day be used for joints.
Human knee cartilage removed during joint replacement surgery also responded to the treatment. When exposed to the drug in the laboratory, the tissue began forming new cartilage that resembled healthy, functional joint cartilage. These findings suggest that cartilage lost to aging or arthritis might eventually be restored through injections into the joint or even oral medication, potentially reducing the need for knee and hip replacements.
Osteoarthritis affects about one in five adults in the United States and costs tens of billions of dollars annually in direct health care spending. Despite its prevalence, there is no drug that can stop or reverse the disease. Current treatment focuses on pain relief, physical therapy and, in advanced cases, joint replacement surgery.
The new therapy targets a protein known as 15-PGDH, which increases in the body with age. The research team classifies it as a gerozyme, a type of enzyme that contributes to the gradual decline of tissue function over time. Previous work from the same group showed that rising levels of 15-PGDH weaken muscles with age. Blocking the protein restored muscle strength and endurance in older mice, while forcing young mice to produce it caused muscle loss.
Unlike muscle, bone or blood, cartilage does not rely on stem cells to repair itself. Instead, cartilage cells called chondrocytes can change their gene activity. By inhibiting 15-PGDH, researchers found that these cells reverted to a more youthful state and began producing healthy cartilage again.
“This is a new way of regenerating adult tissue, and it has significant clinical promise for treating arthritis due to aging or injury,” said Helen Blau, professor of microbiology and immunology at Stanford and a senior author of the study.
There are three main types of cartilage in the body. Elastic cartilage forms flexible structures like the outer ear. Fibrocartilage is tough and shock absorbing, found between spinal vertebrae. Hyaline cartilage, also called articular cartilage, is smooth and glossy and allows joints such as the knees, hips and shoulders to move with minimal friction. Osteoarthritis mainly affects this last type.
The disease develops when joints are stressed by aging, injury or excess weight. Chondrocytes begin releasing inflammatory molecules and breaking down collagen, the main structural protein of cartilage. As collagen is lost, cartilage thins and softens, leading to pain, swelling and stiffness. Articular cartilage rarely regenerates on its own, and attempts to find stem cells capable of rebuilding it have largely failed.
In the new study, researchers compared knee cartilage from young and old mice and found that levels of 15-PGDH roughly doubled with age. When older mice were treated with a drug that blocks the protein, either throughout the body or directly in the joint, their knee cartilage thickened and regained function. Importantly, the new tissue was true hyaline cartilage rather than weaker fibrocartilage.
The results were equally striking in injured joints. In mice with ligament injuries, repeated injections over four weeks sharply reduced the likelihood of developing arthritis. Untreated animals showed high levels of 15-PGDH and developed arthritis within weeks. Treated animals moved more normally and placed more weight on the injured limb.
Detailed analysis showed that the treatment shifted the balance of cartilage cells. Cells associated with inflammation and cartilage breakdown became less common, while cells responsible for producing healthy joint cartilage increased markedly. This change occurred without the involvement of stem cells.
When human osteoarthritic cartilage was treated in the laboratory for one week, similar changes were observed. Levels of harmful gene activity fell, and signs of cartilage regeneration appeared.
The findings are encouraging but still early. While safety trials of a 15-PGDH inhibitor for muscle weakness have shown promising results, clinical trials focused on cartilage regeneration have yet to begin. Even so, researchers are optimistic.
“Imagine regrowing existing cartilage and avoiding joint replacement,” Blau said. For millions living with joint pain and stiffness, that possibility now seems closer than ever.
Opinion
Why is transparency underfunded?
The RTI Commission has now confirmed what many suspected — although the RTI Act grants it independence to recruit staff, this authority is rendered toothless because the Treasury controls the purse strings. The Commission is left operating with inadequate manpower, limiting its institutional growth even as it struggles to meet rising public demand for information.
This raises an uncomfortable question: if the Treasury can repeatedly allocate billions to loss-making State-Owned Enterprises — some of which continue to hemorrhage public funds without reform — why is adequate funding for the RTI Commission treated as optional?
Strengthening transparency is not a luxury. It is the foundation of good governance. Every rupee spent on effective oversight helps prevent many more rupees being wasted through inefficiency, misuse, or opaque decision-making.
In such a context, can one really fault those who argue that restricting the Commission’s resources conveniently limits disclosures that may prove politically inconvenient? Whether deliberate or not, the outcome is the same: weaker accountability, reduced public scrutiny, and a system where opacity is easier than openness.
If the government is serious about reform, it must start by funding the institutions that keep it honest. Investing in RTI is not an expense — it is a safeguard for the public purse and the public trust.
A Concerned Citizen – Moratuwa
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