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Coal prices soar, aggravating CEB woes

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By Rathindra Kuruwita

The recovery of coal prices in the world market coupled with the decline in the value of the rupee would result in the cost of electricity generation increasing rapidly in Sri Lanka with the Norochcholai coal-fired power plants accounting for the bulk of power produced in the country, energy experts said yesterday.

They said the recovery of coal prices meant that calculations made by a number of energy sector decision-makers on the cost of electricity in the future would be incorrect.

The price of coal, which was trading at around USD 50 per tonne late last year, has rebounded.

Independent energy expert, Vidura Ralapanawe said that coal cost had risen to USD 90. With freight, insurance, VAT and lightering, the total cost of coal received by the plant is USD 120 per ton.”

He added that at the current exchange rate, when the rupee was hovering around Rs. 200 per USD it would result in cost of the fuel rising by about Rs 24 per kg.

“It is estimated that around 380 grams of coal is needed to produce a unit of electricity. This gives the coal cost per generation at Rs 9.12. When we add the diesel cost for the plant, the fuel cost per unit alone comes to about Rs. 9.90 per unit. Adding other costs of the plant (except financing) brings the unit cost to around 14.50.”

Ralapanawe said that a number of CEB and Ministry officials had claimed that they could produce a unit of electricity for about Rs. 7 to 8. They had done so by keeping the exchange rate at a constant, sometimes at around Rs. 150 per USD and setting the coal prices at around USD 50 per ton, which was the price when coal hit an all-time low last year.

Engineer Parakrama Jayasinghe, former president of Bioenergy Association of Sri Lanka, told The Island, “Even if we assume that the price of coal will remain stable, we have to think about the price fluctuations of the rupee.

“For years the CEB has been lying to the public about the real price of a unit of electricity produced using coal. They tell the people that the unit cost is about Rs. 8 but the documents they give to PUCSL show that the actual cost is around Rs. 18 per unit. They have been telling people that the unit of electricity from a new coal power plant will be about Rs 7-9 but they have calculated that keeping the exchange rate at Rs.150 per dollar. Now it’s at Rs. 200 and it’s unrealistic to expect the rate to return to Rs. 150 per USD.”

Maithri Gunaratne, former Chairman of Lanka Coal said that coal prices had been extremely low in 2020 and that it was not wise to make long term predictions with those numbers.

“We also have to factor in corruption too unfortunately.”

President of the CEB Engineering Union Saumya Kumarawadu however said that the rebounding of coal prices shouldn’t be too much of a problem and that coal was still the cheapest option they had.

Attempts to contact Minister of Power Dullas Alahapperuma failed.

 

 



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Controversy over absence of Agriculture Minister, Deputy at NPP’s inaugural farmers’ rally

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Lal Kantha / Karunaratne

By Shamindra Ferdinando

The absence of Agriculture Minister Lal Kantha and his Deputy Namal Karunaratne at the NPP’s farmers’ rally at Polonnaruwa, on Saturday (12) revealed the government’s failure to address the problems faced by the farming community, the SLPP says.

Former Kalutara District SLPP MP Sanjeewa Edirimanna said that politburo member Lal Kantha, who represented the NPP’s highest decision-making body, and his Deputy, Karunaratne, couldn’t face the farmers, and hence their absence at Saturday’s rally. Their absence underscored the gravity of the situation, Edirimanna said, thanking the NPP for openly acknowledging the crisis in the agricultural sector.

Kandy District MP Lal Kantha was not immediately available for comment. When The Island sought an explanation from Deputy Minister Karunaratne regarding their absence, he said that there was no need for all of them to attend each and every NPP rally.

President Anura Kumara Dissanayake addressed Saturday’s gathering on behalf of the party and there shouldn’t be any issue over their absence, MP Karunaratne said.

Karunaratne said so when The Island pointed out that their presence mattered as it was the inaugural farmers’ rally held almost two years after the last presidential election.

MP Karunaratne claimed that the Polonnaruwa rally was not on his schedule for 12 Sept.

Ex-MP Edirimanna pointed out that Minister Lal Kantha had addressed both the Bulathsinhala and Beruwala rallies, held on 6 Sept., which marked the commencement of the NPP propaganda campaign, launched amidst growing dissent over the way the government sought to enact the 22nd Amendment to the Constitution.

Edirimanna said that the NPP couldn’t justify both Ministers in charge of agriculture skipping the Polonnaruwa rally. Responding to another query, Edirimanna said that he wouldn’t attribute their absence to any internal conflict but the NPP’s overall failure to address the growing grievances of the farming community.

Edirimanna said that in spite of promises, the NPP had pathetically failed to ensure a reasonable pricing formula for paddy. The President again promised to implement an efficient paddy purchasing scheme at the next harvesting season, the ex-MP said, adding that the government should be ashamed and accept responsibility.

Edirimanna stressed that the government’s vow to implement a mandatory price for different varieties of paddy remained just a promise.

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Thousands march in Jaffna demanding international investigation into Chemmani

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A section of the demonstrators engaged in Jaffna protest on Subday (pic courtesy Tamil Guardian)

A demonstration was held in Jaffna on Sunday (14) demanding an international investigation into the Chemmani mass grave, which protesters said constitutes evidence of the genocide committed against Tamils, Tamil Guardian HAS reported.

The procession began near the United Nations office, close to the Kailasa Pillayar Temple in Nallur, and proceeded to Kittu Park, where it concluded with a public gathering. Protesters demanded an international inquiry into the 583 sets of human skeletal remains and other evidence recovered from the site.

The rally was organised jointly by the Tamil National Council and civil society organisations, which had called for the excavation, preservation and forensic analysis of Chemmani and other mass graves to be placed entirely under the responsibility of the United Nations, without intervention by the Sri Lankan state.

A party alleged to have been responsible for a crime cannot be expected to exercise exclusive control over the evidence needed to investigate it, the council argued ahead of the demonstration, warning that placing such material under the control of an alleged perpetrator creates a risk that evidence could be damaged or compromised, Tamil Guardian reported.

Alongside the Chemmani demands, the organisers had called for an independent international criminal investigation into the genocide of Tamils, the transfer of evidence to the International Criminal Court, the immediate release of political prisoners held under the Prevention of Terrorism Act and the repeal of that legislation, the withdrawal of the military from the North-East, the return of occupied land, and international recognition of the Eelam Tamil people’s right to self-determination.

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FAC that sank last month recovered in salvage operation

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The Navy Fast Attack Craft (FAC) that sank off Angulana in August after colliding with a shipwreck was brought to Colombo Port over the weekend (Pic courtesy SLN).

The Sri Lanka Navy recovered its Fast Attack Craft P 4447 following a successful salvage operation, bringing a multi-stage emergency response to a close.

The craft sank during a routine patrol, on 15 August 2026, off Angulana, after colliding with a previously sunken bulk carrier. It was brought to the surface on 11 September from a depth of approximately 80 feet. It was subsequently towed to the Colombo Dockyard premises.

The initial phase of the operation, immediately following the incident, focused on search and rescue. A joint effort, involving the Navy, Air Force, Police, and local fishermen from Angulana, helped rescue of 11 crew members. The search and rescue phase drew to a close with the recovery of the remains of the Second in Command of the craft, on 4th September.

Following the search and rescue phase, specialised Navy diving and salvage teams launched a dedicated recovery phase against rough sea conditions and underwater challenges, adhering to strict safety protocols. The Navy’s marine, hull, electrical, and electronic engineering teams utilised specialised technical know-how and equipment to raise the vessel in stages, the Navy said.

Technical support and specialised expertise were also extended by the Sri Lanka Ports Authority and Colombo Dockyard PLC.

The salvaged FAC (pic courtesy SLN media)

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