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Govt.’s secret deal with US company affects Lanka’s sovereignty, says FSP

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By Rathindra Kuruwita 

Sri Lanka was now dependent on the United States to supply LNG to Sri Lankan power stations thanks to an agreement it had entered into with a US-based energy company, New Fortress Energy, on Friday night, the Frontline Socialist Party (FSP) alleged yesterday.

FSP Education Secretary Pubudu Jayagoda said that the agreement between the government and US-based energy company New Fortress Energy to construct a new offshore liquefied natural gas (LNG) receiving, storage and regasification terminal at Kerawalapitiya as well as the transfer of government’s shares in the Yugadanavi Power Plant had to be scrapped.

He said that the agreement had been signed in the late hours of Friday.

“This secret agreement was signed at a time when people are barred from protesting or making a meaningful intervention. The Yugadanavi Power Station at Kerawalapitiya already produces 300 MWs of energy and there is a plan to build another 350 MW plant there. The US company has now been allowed to build an offshore LNG receiving, storage, and regasification terminal and to provide LNG to the existing Power Station and the new 350 MW power plant to be built,” he said.

The government was planning to increase this to 1000 MWs by 2026. In 2016, international tenders were called for the construction of the 350 MW LNG power plant. The two main contenders were China Harbour and Yugadanavi, which is a state owned company, with the Treasury owning 50% the balance 50% divided between EPF, LECO and LTL.

“But the government gave to China Harbour, and Yugadanavi filed a case against the government over its decision. In 2020 President Gotabaya Rajapaksa cancelled the tender given to China Harbour and gave the right to Yugadanavi, which at that time looked good. However there was a conspiracy, Yugadanavi signed an agreement with the US based energy company New Fortress Energy. With this MoU 40% of the company shares will be given to the US company,” Jayagoda said.

He said the agreement was worse than East Container Terminal pact.

“On 12 July this was discussed by the Cabinet but even the Minister of Power didn’t get a copy until the meeting started. Then Minister Basil Rajapaksa presented the paper and obtained the approval of ministers. The agreement calls for the sale of a large number of shares to the US company as well as the building an offshore LNG receiving, storage, and regasification terminal to provide LNG to the existing Power Station as well as the new 350 MW power plant to be built. This is clearly said on the Company website,” he said.

Given that the pipelines would be controlled by a US company, Sri Lanka would lose energy sovereignty. In the future, Sri Lankans would have to depend on the whims and fancies of US political authorities, he claimed.



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INS GHARIAL makes port call in Colombo

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The Indian Naval Ship (INS) GHARIAL made a port call in Colombo for operational turnarounds on 04 Feb 26. The Sri Lanka Navy welcomed the visiting ship in compliance with naval traditions.

Commanded by Commander Gaurav Tewari, INS GHARIAL is a vessel with a length of 124.8 meters.

During this visit, ten (10) Bailey Bridges, brought by ship, through the coordination of the High Commission of India in Sri Lanka, will be handed over to the Disaster Management Center. These bridges will provide temporary transportation links while bridges damaged across the island by adverse weather conditions are repaired.

The crew’s itinerary features scheduled goodwill activities with the Sri Lanka Navy, alongside visits to several tourist attractions across the island.

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Speaker’s personal secretary accused of interference with ongoing bribery investigation

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Harshana

SJB Gampaha District MP Harshana Rajakaruna yesterday told Parliament that the Speaker’s Personal Secretary had written to the Secretary-General of Parliament seeking information on a complaint lodged with the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) by a former Deputy Secretary of Parliament against the Speaker. Rajakaruna called for an immediate investigation into what he described as interference with an ongoing probe.

Raising the matter in the House, Rajakaruna said he had formally requested the Commission to initiate an inquiry into the conduct of the Speaker’s Personal Secretary, Chameera Gallage, questioning the authority under which such information had been sought.

Rajapakaruna tabled in Parliament a copy of the letter allegedly sent by Gallage to the Secretary-General requesting details of the bribery complaint.

Addressing the House, Rajakaruna said that the letter, sent two days earlier, had sought “full details” of the complaint against the Speaker. He maintained that seeking such information amounted to interference with an investigation and constituted a serious offence under the Bribery Act.

“The Speaker’s Secretary has no right to interfere with the work of the Bribery Commission. Under what law is he acting? What authority does he have? The Speaker, like everyone else, is subject to the law of the land,” Rajakaruna said, urging the Commission to take immediate action.

He noted that the Bribery Act treated the obstruction of investigations and the destruction of documents relating to such inquiries as serious offences punishable by law, and said he believed the Minister of Justice would concur.

The allegations sparked sharp reactions in the Chamber, as Opposition members called for accountability and due process in relation to the complaint against the Speaker.

By Saman Indrajith

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Govt: Average power generation cost reduced from Rs. 37 to Rs. 29

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Kumara

The Ceylon Electricity Board has managed to reduce the average cost of electricity generation from Rs. 37 per unit to Rs. 29, marking a 22 percent reduction, Minister of Power and Energy Eng. Kumara Jayakody told Parliament yesterday.

Responding to an oral question raised by Opposition MP Ravi Karunanayake, the Minister said that electricity tariffs cannot be reduced unless the cost of generation is brought down.

“You cannot reduce electricity tariffs without reducing the cost of generation. What we are currently doing is buying at a higher price and selling at a lower price. When we assumed office, the cost of purchasing and generating electricity was Rs. 37 per unit. We have now managed to bring it down to Rs. 29, a reduction of 22 percent.

Our target is to further reduce this to Rs. 25. Once that is achieved, we will reduce electricity tariffs by 30 percent within three years, as we promised,” Minister Jayakody said.

He added that the government has already formulated a long-term generation plan to further expand the country’s power generation capacity.

According to the Minister, key measures include increasing the absorption of renewable energy into the national grid, expanding the national transmission and distribution network, introducing renewable energy storage systems, and constructing thermal and liquefied natural gas (LNG) power plants to replace aging facilities and meet future demand.

He also said that steps would be taken to enhance the capacity of existing hydropower plants as part of the broader strategy to ensure energy security and reduce long-term electricity costs.

By Ifham Nizam

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