Business
Sri Lanka’s thermal power plants ready to generate power from LNG within 18 months
Move expected to bring down electricity cost by 40-50%
Government of India backs the B2B move to support people in Sri Lanka
By Sanath Nanayakkare
Sri Lanka’s thermal power plants will begin to generate power from Liquified Natural Gas (LNG) hopefully within 18 months, and this will help reduce current electricity tariffs by 40-50%, Power and Energy Minister Kanchana Wijesekara said in Colombo on 20th August 2024.
He said so at an event where Petronet LNG Limited (PLL), India, and LTL Holdings Limited, Sri Lanka, signed a Memorandum of Understanding (MoU) for LNG Infrastructure Development and LNG Supply to Sri Lanka.
The MoU is focused on providing an innovative solution encompassing supply of LNG through multimodal ISO Container supply chain. It involves the development of LNG unloading, storage, and regasification facilities at Kerawalapitiya, Colombo, and the supply of LNG from PLL’s Kochi LNG Terminal through LNG ISO tank containers for power generation facilities of Sobadhanavi Power Plant in Sri Lanka.
Speaking at the event, Minister Wijesekara said, “The government has come to a policy decision that generation and supply of power in Sri Lanka need to be on a sustainable footing without leaving any room for long power cuts like in 2022, which had an enormous adverse impact on the community and the businesses. At that time, we started discussing with various players and stakeholders of the industry. We had the first discussion in this regard with the Indian High Commission in Colombo during the term of Former Indian High commissioner Gopal Baglay. I appreciate the support extended to Sri Lanka by the government of India at the most difficult time by supporting our country through several credit facilities, critical fuel supplies and other forms of support. If not for that support from the government of India and Indian Prime Minister Sri Narendra Modi, Sri Lanka wouldn’t still have come out of its electricity crisis that led to a massive social upheaval.”
“At these discussions, we also focused on how we can bring down the cost of electricity while supplying uninterrupted power. One of the hard decisions we had to make was introducing the cost-reflective pricing as a first step. At that time, we faced the challenge of integrating new power sources to the national grid as the CEB and CPC had accumulated losses of Rs.300 billion, and we had little ability to pay the outstanding bills of our existing power suppliers. These two institutions had burdened the two state banks with borrowings amounting to more than Rs. 200 billion and the Treasury had also been burdened due to these financial constraints of the power sector. The media has published reports that with the cost reflective pricing, the CEB has posted a profit of Rs. 116 billion in the first half of this year. But the media failed to mention that the said accumulated losses were settled using these profits generated from the cost-reflective pricing mechanism. We used those funds to pay the outstanding bills of our suppliers such as LTL and other suppliers of coal and fuel who are key to eliminating power cuts in the country. In March 2023, the Secretary to the Ministry of Natural Gas and Petroleum Resources in India visited Sri Lanka with a high-level delegation. A key subtopic during these discussions was LNG supply and infrastructure required for the existing power plants in the country to generate power from LNG. The West Coast was also suitable for LNG, but it had no infrastructure for it. Sobadanavi and Ugadanavi plants were already there, and a third tender was being floated for power generation in Sri Lanka. In such a context, former Indian High Commissioner Gopal Baglay made a convincing case for Petronet LNG India to look at an interim solution for LNG supply for Sri Lanka. And Petronet came back within a month with an interim solution to make LNG available in nine months. But for this, we had to go through difficult legal frameworks and negotiations in creating the modalities for supply of LNG. After going through these hardships, today we have come to this historic day where we are going to finalize a permanent solution for the supply of LNG and infrastructure necessary for LNG power plants in Sri Lanka. With LNG coming to Sri Lanka, we can also look at other possibilities like LNG bunkering and even providing LNG pipe borne gas for cooking in households.”
Dr. Satyanjal Pandey, Deputy High Commissioner, High Commission of India (L) / Kanchana Wijesekara, Minister of Power and Energy (R)
“These are some of the vital avenues that will open with the signing of this MoU. There is an eighteen month timeline for this and we hope the infrastructure and the supply will be ready at least by the beginning of 2026. Then our power plants will be ready to generate power form LNG. This will significantly bring down the cost of electricity. At present, a unit generated from diesel power stations costs between Rs. 106 and Rs. 110. When our power stations operate from LNG , we can bring down this cost by at least 40-50% , and pass that benefit to the consumers. Overall, it will help bring down cost of energy in Sri Lanka. This is the first overseas venture for Petronet India. I know that you were pushed by the government of India to make sure that these facilities are available and your services are extended to the government of Sri Lanka. So, I thank the government of India and the management of Petronet LNG for working with us over the past 15 months to come up with proposals in order to make sure that you are supporting your neighbour and its people.”
” Sri Lanka’s LTL Holding played a key role in this exercise at a time the CEB was not in a position to come up with an agreement of this sort with a foreign partner. But LTL had that capacity to enter into a B2B agreement with the backing of the government of Sri Lanka. With this MoU coming in, the Ministry of Power and Energy will support you in facilitating your work, coordinating with the the ministries of ports and shipping, transport and highways, land and urban development , in securing the spaces in the Port of Colombo for logistical requirements and obtaining the lands required for the regasification unit in Kerawalapitiya. My ministry will work closely with the Indian and Sri Lankan companies to make this energy generation target a reality in the next 18 months,” the minister said.
Dr. Satyanjal Pandey, Deputy High Commissioner, High Commission of India in Sri Lanka speaking at the event said:
“The two governments are working closely to quickly achieve our shared aspirations. Today’s MoU is a testament to our continued efforts to build on this strong foundation provided by our bilateral relationship to collaborate in areas crucial to our future prosperity. The project of Petronet India and LTL Holdings reflect the mutual benefits and cooperation that define our relationship. The establishment of LNG facility in Kerawalapitiya by the two companies and the supply of LNG from Kochi Terminal will support Sri Lanka’s energy needs and also contribute to the energy security of Sri Lanka.”
Business
SLAF, Aviyana Ceylon partner to elevate high-end sports tourism with Eagles’ Monsoon Cup 2026
Aviyana Ceylon, Sri Lanka’s upcoming ultra-luxury seven-star hospitality project, has stepped decisively into the country’s high-end sports tourism space by coming on board as the principal sponsor of the prestigious Eagles’ Monsoon Cup Golf Tournament 2026, in partnership with the Sri Lanka Air Force (SLAF).
The international-standard golf tournament is scheduled to be held on January 11, 2026, and is expected to attract diplomats, corporate leaders, high-net-worth individuals and overseas golfers, reinforcing Sri Lanka’s positioning as an emerging premium leisure and sporting destination.
Under the patronage of Aviyana Ceylon chairman, Dr. Thisara Hewawasam, the company has committed a Rs. 2.5 million sponsorship, marking one of the most significant private-sector investments in elite golf events in recent years.
The sponsorship was formalised at a ceremonial cheque handover held at the Sri Lanka Air Force Headquarters, where Dr. Hewawasam officially handed over the cheque to Commander of the Air Force, Air Marshal Bandu Edirisinghe.
“Our decision to support the Eagles’ Monsoon Cup goes beyond sport. It is a strategic investment in positioning Sri Lanka as a global luxury tourism and lifestyle destination, Dr. Hewawasam said.
“International sporting events with strong networking potential play a critical role in shaping perceptions, attracting premium travelers and enhancing the country’s brand equity. Aviyana Ceylon is committed to supporting platforms that elevate Sri Lanka’s global standing, he added.
Senior SLAF officials, including chairman, Eagles’ Golf Links, Air Commodore Erandika Gunawardhana, secretary of the Air Force Sports Council and Director Media, Group Captain Eranda Geeganage, Secretary of Eagles’ Golf Links, Group Captain Asanka Ratnayake and SLAF Golf Secretary, Wing Commander R.A.S.T.A. Fernando, along with Aviyana Ceylon representatives and invited guests were present at the event.
Air Marshal Bandu Edirisinghe welcomed the partnership, noting that collaboration between the military and private sector is vital in developing sports diplomacy and tourism-led economic activity.
“Eagles’ Monsoon Cup has evolved into a premier sporting event that brings together global and local stakeholders. The support extended by Aviyana Ceylon strengthens our ability to host events of international calibre and contributes meaningfully to sports tourism and national image-building, the Air Force Commander said.
Beyond the golf tournament, the partnership opens the door to new experiential tourism initiatives, including a proposed collaboration to offer luxury helicopter tours for Aviyana Ceylon’s clientele, operated in coordination with the Sri Lanka Air Force.
According to Dr. Hewawasam, the concept aims to provide discerning travelers with exclusive aerial experiences showcasing Sri Lanka’s landscapes, coastlines and heritage.
“Luxury heli-tours represent a new dimension in experiential tourism. They allow us to present Sri Lanka’s natural beauty from a unique vantage point, appealing to high-value travelers seeking privacy, exclusivity and unforgettable experiences, he said.
Industry observers note that such initiatives align with global trends where luxury hospitality brands integrate sports, aviation and curated experiences to differentiate destinations and increase average tourist spend.
The Eagles’ Monsoon Cup is widely regarded as one of Sri Lanka’s most elite sporting events, functioning not only as a golf tournament but also as a high-level networking platform linking diplomacy, business and leisure.
By Ifham Nizam
Reports received by us from tea brokers, the Colombo Tea Traders’ Association (CTTA) and other sources indicated that, by and large, the local tea sector has been spared by the recent weather havoc.
The CTTA in their recent communications said that although Cyclone Ditwah affected parts of Sri Lanka, production, sales, and exports of tea continued without interruption. Clearly, the report said, the well established and highly coordinated industry network was fully geared to confront these issues. Production and sales continued with least disruption . While some tea growing areas in Uva, and the Central Province experienced some impact no loss in manufacturing capacity was reported.
Damage was largely confined to specific roads, resulting in temporary disruptions to transportation. Some key routes connecting plantations to the city have now been reopened and transport services are resuming normal operations. Harvesting operations are gradually returning to normal with access roads being reopened and temporary roads have been constructed to facilitate transport of green leaf to manufacturing locations.
The tea small holders we met said, although their production routine was affected, quick return to normalcy was ensured thanks to the established Tea Small Holders’ Association whose action ensured speedy return to normalcy. They reiterated production was near normal; and the dismal situation was now in a controlled position. They assured that such losses were minimal and could be recouped with minimum delay.
The CTTA further said the majority of plantations and small holder lands in the South of the island were spared cyclone damage. Harvesting, manufacturing and transportation activities are continuing as usual.
Trading activities at the Colombo Tea Auctions continue to be held although with a revised calendar. The tea auction previously set for the 1st week December has been rescheduled for the last week December. This adjustment ensures uninterrupted financial flows to the producers , including small holders, maintaining the momentum of the industry.
Forbes and Walker Tea Brokers reported a national tea sale average for November of Rs. 1137.22 ( USD3.89) which shows an increase of Rs.61.17 and USD 0.02 YOY. The total National Sale Average for the year 2025 ( to date) was recorded at Rs. 1,164.97( USD 3.88). a decline of Rs . 63.49 ( USD 0.17) against the corresponding year’s average of Rs. 1228.46 (USD4.05). The report further said all elevations recorded negative variances during the period January to November 2025 in comparison to the cumulative corresponding year of 2024 in both LKR and USD terms.
By Steve A. Morrell
Ceylon Cold Stores PLC (CCS), a subsidiary of John Keells Holdings PLC, has launched its iconic Elephant House Ice Cream in Australia, marking a bold step in the brand’s global expansion. The official unveiling took place on 4th December 2025 at the Novotel Melbourne Glen Waverley, where industry leaders, local distributors, and strategic partners gathered to celebrate the occasion. The launch was further honoured by the presence of Ms. Pradeepa Seram, Consul General Designate of Sri Lanka, and Ms. Cassandra Fernando, Member of the Australian Parliament, reflecting the deep and growing connections between Sri Lanka and Australia.
Elephant House is one of the highest-penetrated Sri Lankan brands among Sri Lankan communities living overseas, with a presence in 16 countries, including the Maldives, Australia, and the United Kingdom, among others.
In a significant milestone for the company, Elephant House Ice Cream is now manufactured locally in Melbourne to support wider availability in the ethnic market in Australia. The range currently available includes Vanilla, Karutha Kolomban, and Fruit and Nut in 500ml packs. This marks the first time in CCS’s 150-year legacy that Elephant House Ice Cream has been produced outside Sri Lanka, signalling a new chapter in the company’s international growth journey in collaboration with Millennium Imports Pty Ltd, it’s one of the franchise partners for Australia.
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