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FSP cries foul over allowing India to have stranglehold over SL power sector

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Pubudu Jayagoda

… condemns haste in tying up deals on eve of important national poll

By Rathindra Kuruwita

The government continues to enter into secretive agreements with India, compromising the nation’s economic and political sovereignty, says Pubudu Jayagoda, Education Secretary of the Frontline Socialist Party (FSP).

Jayagoda told The Island yesterday that the Memorandum of Understanding (MOU) signed on Tuesday (20) between LTL Holdings Ltd., Sri Lanka, and Petronet LNG Ltd., India, for developing infrastructure related to the storage, regasification, and supply of Liquefied Natural Gas (LNG) to the ‘Sobadhanavi’ Combined Cycle Power Plant at Kerawalapitiya was detrimental to the country’s energy security.

“People’s attention is now on elections and the government is busy signing vital international agreements, despite the widespread belief that President Ranil Wickremesinghe will not win the election on 21 September. The agreement signed on Tuesday will have devastating consequences for the country’s energy security,” Jayagoda stated.

Jayagoda claimed that the agreement between LTL Holdings and Petronet had stemmed from an unsolicited proposal, with the details not disclosed to the public. Wickremesinghe in his 2023 visit to India had agreed to integrate the energy sectors of the two countries and the agreement at issue was a part of that understanding, he said.

“India has been allowed to control the LNG supply to Sri Lanka without competitive bidding. Now, India has a monopoly. The procurement procedure has been bypassed. It is highly likely that the government has agreed to purchase LNG at prices higher than the market rate, placing an additional burden on the people of this country. It is evident that this agreement was signed under Indian pressure,” the FSP Education Secretary told The Island.

Jayagoda also noted that Sri Lanka was planning to generate 1,000 megawatts of electricity from LNG in the short term, at the Yugadhanavi and Sobadhanavi power plants, as well as some sections of the Kelanitissa power plant, set to operate on LNG.

“India will be the sole supplier for these plants. You can imagine the control this gives India—it’s akin to having the main switch, trip switch, and fuse board of your house installed in the neighbour’s house,” he said.

A number of countries in the region had entered into similar agreements with India and those nations had learnt that when India gained access to those vital sectors, its control over them was used to push for political and economic agendas favourable to India.FSP Education Secretary said that if a future Sri Lankan government antagonised India in any manner, the Indian company could deliberately delay LNG supplies, crippling the Sri Lankan economy.



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India’s External Affairs Minister meets Sri Lanka PM

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India’s External Affairs Minister, Dr. Subramaniam Jaishankar, met with the Prime Minister of Sri Lanka, Dr. Harini Amarasuriya, on 23 December at Temple Trees, during his visit to Sri Lanka as the Special Envoy of Indian Prime Minister Shri Narendra Modi.

The meeting took place as part of the official visit aimed at holding discussions with Sri Lanka’s top leadership, at a time when the nation commenced reconstruction efforts following the devastation caused by Cyclone Ditwah.

During the discussions, the Minister of External Affairs of India reaffirmed readiness to extend support for Sri Lanka, including assistance in rebuilding railways, bridges, and strengthening of the agricultural sector in the country. He also highlighted the importance of having effective systems in place to respond to disaster situations, supported by strong legislative, administrative, and institutional frameworks. Both sides reviewed ongoing relief efforts and explored avenues to further strengthen bilateral cooperation in disaster response and recovery.

The Prime Minister commended the Government of India for the continued support, noting that the recovery process following the devastation caused by Cyclone Ditwah include beyond immediate relief efforts to long-term measures such as resettlement, and reconstruction of habilitation and infrastructure.

The Prime Minister further stated that steps have been taken to reopen schools as part of the process of restoring normalcy, with close monitoring in place. The Prime Minister emphasized the need to ensure stability, reduce vulnerability, and strengthen protection mechanisms highlighting the solidarity of the people, their strong spirit of volunteerism, and collective action demonstrated during the emergency situation.

The event was attended by the High Commissioner of India Santosh Jha, Additional Secretary (IOR), MEA  Puneet Agrawal, Joint Secretary (EAMO), MEA  Sandeep Kumar Bayyapu, Deputy High Commissioner Dr. Satyanjal Pandey, and representing Sri Lankan delegation, Secretary to the Prime Minister  Pradeep Saputhanthri, Additional Secretary to the Prime minister Ms.Sagarika Bogahawatta, Director General (South Asia), Ministry of Foreign Affairs Samantha Pathirana, Deputy Director, South Asia Division, Ministry of Foreign Affairs Ms.Diana Perera.

[Prime minister’s media division]

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Sri Lanka’s coastline faces unfolding catastrophe: Expert

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Sri Lanka is standing on the edge of a coastal catastrophe, with the nation’s lifeline rapidly eroding under the combined assault of climate change, reckless development and weak compliance, Director General of the Department of Coast Conservation and Coastal Resource Management (DCC&CRM) Dr. Terney Pradeep Kumara has warned.

“This is no longer an environmental warning we can afford to ignore. The crisis is already unfolding before our eyes,” Dr. Kumara told The Island, cautioning that the degradation of Sri Lanka’s 1,620-kilometre coastline has reached a point where delayed action could trigger irreversible damage to ecosystems, livelihoods and national security.

He said accelerating coastal erosion, rising sea levels, saltwater intrusion and the collapse of natural barriers, such as coral reefs and mangroves, are placing entire coastal communities at risk. “When mangroves disappear and reefs are destroyed, villages lose their first line of defence. What follows are floods, loss of homes, declining fisheries and forced displacement,” he said.

Dr. Kumara stressed that the coastline is not merely a development frontier but the backbone of Sri Lanka’s economy and cultural identity. “More than half of our tourism assets, fisheries and key infrastructure are concentrated along the coast.

If the coast fails, the economy will feel the shock immediately,” he warned.

Condemning unregulated construction, illegal sand mining and environmentally blind infrastructure projects, he said short-term economic interests are pushing the coastline towards collapse. “We cannot keep fixing one eroding beach while creating three new erosion sites elsewhere. That is not management—it is destruction,” he said, calling for science-driven, ecosystem-based solutions instead of politically convenient quick fixes.

The Director General said the Department is intensifying enforcement and shifting towards integrated coastal zone management, but warned that laws alone will not save the coast. “This is a shared responsibility. Policymakers, developers, local authorities and the public must understand that every illegal structure, every destroyed mangrove, weakens the island’s natural shield,” he added.

With climate change intensifying storms and sea surges, Dr. Kumara warned that Sri Lanka’s vulnerability will only worsen without urgent, coordinated national action. “The sea has shaped this nation’s history and protected it for centuries. If we fail to protect the coast today, we will be remembered as the generation that allowed the island itself to be slowly eaten away,” he went on to say.

By Ifham Nizam

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SOC examines proposed amendments to the Microfinance and Credit Regulatory Authority Bill

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SoC meeting underway (pic courtesy parliament)

The Sectoral Oversight Committee (SoC)on Economic Development and International Relations recently examined the Microfinance and Credit Regulatory Authority Bill and the proposed amendments thereto.

The SoC met in Parliament under the chairmanship of Member of Parliament Ms. Lakmali Hemachandra, (Attorney at Law). A group of officials representing the Central Bank of Sri Lanka, the Department of Development Finance of the Ministry of Finance, Planning and Economic Development, and the Legal Draftsman’s Department participated in the meeting.

The Microfinance and Credit Regulatory Authority Bill was presented to Parliament for its First Reading on 26.11.2025. Accordingly, the Committee held an extensive discussion on the amendments that have been proposed to the Bill. The Chair of the Committee, Hon. Member of Parliament Ms. Lakmali Hemachandra, (Attorney at Law) stated that it is important to give careful and further consideration to this Bill and that discussions on the proposed amendments will be held again on a future date.

Members of Parliament Lakshman Nipuna Arachchi, Thilina Samarakoon, Nilanthi Kottahachchi, Attorney at Law, Sagarika Athauda, Attorney at Law, Suranga Ratnayaka, and Wijesiri Basnayake also participated in this Committee meeting.

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