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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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Fast Attack Craft P 4447 recovered in successful salvage operation

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

The craft, which ran into distress during a routine patrol on 15th August 2026 off Angulana, was brought to the surface on 11th 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
resulted in the 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, specialized 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 utilized specialized technical know-how and equipment to raise the vessel in stages.

Thus, the salvage operation marked an outstanding achievement attained through the professionalism, technical expertise of Navy divers, and coordinated contribution of all
engineering and technical branches of the Sri Lanka Navy. Technical support and specialized expertise were also extended by the Sri Lanka Ports Authority and Colombo Dockyard PLC.

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CIABOC member’s appointment: Controversy over Speaker under probe heading selection process

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By Shamindra Ferdinando

The Opposition should intensity its focus on the forthcoming selection of a member of the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) and remain vigilant as Speaker Dr. Jagath Wickremaratne, MP, the head of the Constitutional Council (CC) tasked with making the relevant recommendation, is under investigation by the CIABOC, sources familiar with the ongoing inquiry told The Island.

Chethiya Goonasekara, PC, is expected to complete his three-year term on Dec 31, 2026. Sources pointed out that CIABOC Commissioners are appointed by the President on the recommendation made by the 10-member Constitutional Council.

The CIABOC initiated the investigation following a complaint lodged by suspended Chief of Staff and Deputy Secretary General of Parliament Chaminda Kularatne in early February this year. Sources said that as Goonasekera is scheduled to complete his term toward the end of 2026, the CC would have to call applications soon to choose the successor.

Goonasekara received his appointment from President Ranil Wickremesinghe in January 2024. A Justice W. M. N. P. Iddawala was appointed Chairman of the CIABOC. The other commissioner is K. Bernard Rajapakse.

Asked whether Iddawala and Rajapakse, too, would complete their terms soon, sources said that in terms of the Anti-Corruption Act No 09 of 2023, the Chairman of CIABOC would hold office for a period of five years, second commissioner (K. Bernard Rajapakse) for four years and the third commissioner (Chethiya Goonasekara) for a period of three years.

Sources said that the Opposition as well as civil society representatives in the CC should take up the issue of Speaker facing an investigation by the CIABOC taking part in the forthcoming selection process. Responding to queries, sources emphasized that the issue was whether in terms of Section 107 of the Anti-Corruption Act the participation of the Speaker in the selection process amounted to a violation of the Act itself.

The current members of the CC are Dr Jagath Wickramaratne, Speaker and Chairman of the Constitutional Council, Dr. Harini Amarasuriya, Prime Minister, Sajith Premadasa, Leader of the Opposition, Bimal Rathnayake, MP, Aboobucker Athambawa, MP, Ajith P. Perera, MP, Sivagnanam Shritharan, MP, Austin Fernando, Civil society representative, Prof. Wasantha Seneviratne, Civil society representative and Ranjith Ariyaratne, Civil society representative.

Sources pointed out that in spite of the sensitivity of the case, the CIABOC recorded Kularatne’s statement in the second week of August, six months after he lodged the complaint.

The CIABOC on 3, 8 and 10 Sept recorded the statements from the Transport Officer, Deputy Director, Administration and Assistant Director, Finance regarding the use of facilities by the Speaker, those assigned to his staff and other relevant matters.

The NPP named Dr. Wickramaratne as the Speaker after Asoka Ranwala resigned over controversy regarding his higher education qualifications.

SJB lawmaker Dayasiri Jayaskera has repeatedly raised the issues concerning the Speaker with the focus also on the Speaker using two government-managed residences, relevant staff in addition to expenditure on food, transport and fuel provided to the Speaker’s private secretary.

Political sources said that trouble erupted after the Parliamentary Staff Advisory Council in late January sacked Kularatne accusing him of providing false information to secure his appointment. Before being appointed as the Deputy Secretary-General of Parliament in 2023, Kularatne held several high-ranking positions, including Secretary to the Chief Government Whip, Additional Secretary to the President, Additional Secretary to the Prime Minister, and Additional Secretary to the Leader of the Opposition.

The SJB declared in Parliament that Ranwala should be brought back as the Speaker as they have no faith in Wickramaratne. MP Mujibur Rahuman jokingly told parliament that the Opposition wouldn’t raise Ranwala’s educational qualifications.

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GMOA: Countrywide cadre revision not done since 2015

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Dhammika

The Government Medical Officers’ Association (GMOA) has stressed the need to conduct a comprehensive countrywide cadre revision urgently.

GMOA spokesman Dr. Lasitha Dhammika told The Island that the failure on the part of successive governments to conduct cadre revision caused the deterioration of the public sector health services. Due to the absence of required statistics, they hadn’t been able to fully comprehend the situation on the ground and to ascertain the requirements of the public.

Dr. Dhammika pointed out the expansion of the services without supporting statistics and the need to initiate an immediate cadre revision. According to him, the GMOA had raised this issue with successive governments without success. The GMOA spokesman said that they also sought relevant information from the Health Ministry in terms of the Right to Information (RTI) Act two weeks ago but was yet to receive response.

(SF)

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