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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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US embassy won’t comment on IGP’s probe into joint drug raid

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Drugs taken into custody (pic courtesy US Embassy)

… America-Pakistan developed required ‘intel’ for operation

By Shamindra Ferdinando

The US Embassy in Colombo declined to comment on a special police probe into the recent narcotics detection, jointly made at the China-managed Colombo International Container Terminal (CICT) by the US Drug Enforcement Administration’s (DEA) New Delhi Country Office and Sri Lanka Police..

US Embassy spokesperson said that the mission wouldn’t add to their press release, issued on 2 Sept., in the immediate aftermath of the raid.

Police Headquarters, on 11 Sept., declared that the Central Crime Investigation Bureau (CCIB) was conducting investigations into the recovery of 473 kg of Crystal Methamphetamine (‘Ice’). Police never acknowledged the role played by the US in the operation.

According to Police Headquarters, on a directive given by IGP Priyantha Weerasooriya, the Special Investigation Unit has launched an internal probe into, what it called, shortcomings and irregularities in the Colombo Port raid.

The Island:

Have you (relevant US authorities) received an update of Sri Lanka’s investigations from the Police?

US Embassy:

U.S. and Sri Lankan law enforcement authorities maintain close and ongoing cooperation on counternarcotics matters, including the exchange of information that helps both countries combat transnational drug trafficking. We don’t have anything further to share on communications with Sri Lankan authorities beyond what we’ve already said publicly about the successful operation.

The Island:

Did the Police seek clarification regarding DEA, New Delhi Country Office role in the successful raid?

US Embassy:

As the Embassy noted publicly following the seizure, cooperation with the U.S. Drug Enforcement Administration contributed to the Sri Lanka Police Narcotics Bureau’s successful seizure of approximately 463 kilograms of methamphetamine at the Port of Colombo.

The seizure demonstrates the value of close U.S.-Sri Lankan cooperation in disrupting transnational narcotics trafficking.

The Island:

Before we raised this issue were you aware of the internal investigation into the drug bust which was also raised in Parliament last week?

The US Embassy:

We don’t have anything further to share beyond what we’ve already said publicly about the successful operation.

Our focus remains on the strong U.S.-Sri Lanka law enforcement partnership and the concrete results our cooperation can deliver—disrupting transnational criminal organisations, cutting off the profits that fuel illicit drug trafficking, and protecting our citizens from the dangers of narcotrafficking.

The US Embassy attributed the success of the counternarcotics operation to the US-Sri Lanka partnership

The US Embassy statement, dated 2 Sept: The U.S. Drug Enforcement Administration’s (DEA) New Delhi Country Office and Sri Lanka’s Police Narcotics Bureau (PNB) conducted a successful joint operation disrupting a Pakistan-based narcotrafficking network attempting to smuggle crystal methamphetamine through Sri Lanka to international markets.

Acting on intelligence developed by DEA’s Foreign Counterparts Unit Pakistan Anti-Narcotics Force Special Investigations Cell between August 14–29 on suspicious maritime containers moving from Pakistan to Colombo, PNB seized approximately 463 kg of crystal methamphetamine with a street value of $21 million, concealed in bath towels, and arrested several suspects, including Pakistani nationals. This operation underscores the strength of the U.S.-Sri Lanka partnership in dismantling transnational criminal organisations that fund terrorism and threaten communities in both our countries. This cooperation builds on long-standing training and technical assistance provided through the U.S. Department of State’s Bureau of International Narcotics and Law Enforcement Affairs (INL) to the Sri Lanka Police and Customs. The United States remains committed to working with Sri Lanka and regional partners to aggressively pursue transnational criminal organizations, deny them the revenue from illicit drug trafficking, and protect our citizens from the dangers of narcotrafficking.”

SLPP National Organiser Namal Rajapaksa, in Parliament, raised questions about the internal investigation into the raid. However, Rajapaksa, too, hasn’t mentioned the US role in the operation. The Special Investigation Unit has recorded a statement from Senior DIG Ranmal Kodituwakku regarding the Colombo Port raid.

MP Rajapaksa questioned the rationale behind questioning the officer who led the raid against the backdrop of controversial releasing of 323 containers from the Colombo Port in January 2025. The failure to question those responsible for the releasing of 323 containers indicated who was behind that operation, MP Rajapaksa told Parliament.

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Gnanasara Thera declares outside High Court that he wouldn’t flee

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Gnanasara Thera

Bodu Bala Sena (BBS) General Secretary Ven. Galagodaaththe Gnanasara Thera appeared before the Colombo High Court yesterday in a case filed by the Attorney General over statements allegedly insulting Islam.

The case was taken up before Colombo High Court Judge Buddhika C. Ragala, who ordered that it be called again on September 30.

His appearance came six days after the Supreme Court invalidated the presidential pardon granted to Gnanasara Thera by former President Maithripala Sirisena in 2019.

Speaking to journalists outside the court, Gnanasara Thera said he was prepared to face the legal process and would abide by the law, rejecting reports that he had gone into hiding following the Supreme Court judgment.

“It is the weak who disappear and flee. We worked for the country and are facing the consequences for that. We are not afraid and will not flee,” he said, noting that he would surrender to the court and face whatever legal consequences following the Supreme Court decision.

The Supreme Court, on September 10, ruled that the presidential pardon granted to Gnanasara Thera by Sirisena was invalid. The judgment followed fundamental rights petitions challenging the legality of the pardon. A three-judge bench, comprising Justices Janak de Silva, Sobhitha Rajakaruna and Sampath Abeykoon, delivered the ruling.

Gnanasara Thera was convicted by the Court of Appeal in 2018 for contempt of court and sentenced to a total of 19 years’ imprisonment to run concurrently as six years. The conviction related to his conduct during proceedings at the Homagama Magistrate’s Court concerning the disappearance of Prageeth Eknaligoda.

He was released from Welikada Prison on May 23, 2019, after then President Maithripala Sirisena had granted him a presidential pardon.

The Supreme Court found the pardon to be arbitrary and invalid in law, following its consideration of the petitions challenging the exercise of the presidential power of clemency.

Meanwhile, police have said they are awaiting the Supreme Court judgment before determining what further action should be taken following the invalidation of the pardon.

The proceedings before the Colombo High Court yesterday are separate from the contempt of court case that resulted in the six-year sentence. They concern alleged statements made by Gnanasara Thera regarding Islam.

In June this year, the Colombo High Court rejected an appeal by Gnanasara Thera against a nine-month prison sentence imposed by the Colombo Magistrate’s Court in connection with statements made at a 2016 media briefing that were found to have disrupted religious coexistence.

The latest High Court proceedings, therefore, form part of separate legal action concerning his alleged remarks about Islam, while the Supreme Court ruling relates specifically to the legality of the 2019 presidential pardon granted in connection with his contempt of court conviction.

The case before the Colombo High Court will be called again on September 30.

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Namal further remanded

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MP Namal Rajapaksa being taken out from the Colombo Fort Magistrate’s court yesterday

Colombo Fort Magistrate Pasan Amarasena yesterday (16) ordered SLPP National Organiser Namal Rajapaksa, MP, to be further remanded, until September 23. The Magistrate issued the order when Rajapaksa was produced before the court as a suspect in an investigation into an alleged USD 2 million bribe case connected to the acquisition of aircraft for SriLankan Airlines.

The Magistrate issued the order following the submissions made by Deputy Solicitor General Janaka Bandara, appearing on behalf of the Criminal Investigation Department (CID).

President’s Counsel Anil Silva, along with other attorneys representing Rajapaksa, also made submissions before the court.

The Magistrate also announced that a decision on Rajapaksa’s bail application would be announced on 23 September.

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