News
Govt.’s secret deal with US company affects Lanka’s sovereignty, says FSP
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.
The Sri Lanka Navy rendered assistance to bring ashore an ill fisherman, who was aboard a local multi day fishing trawler on the high seas south-west of Sri Lanka, about 881 nautical miles (1631km) off Dondra. Initially, the fisherman was taken aboard a Merchant Vessel in the sea area, on being coordinated by the Maritime Rescue Coordination Centre (MRCC) Colombo. After being brought ashore today (15th October 2024), he was rushed to the National Hospital of Colombo, for medical attention.
The local multi day fishing trawler “Sun City 02” (Reg No. IMUL-A- 1671 MTR) was reported to have left the Dikkowita Fisheries Harbour with 06 fishermen on 29th August 2024 on a fishing voyage. Meanwhile, the Department of Fisheries and Aquatic Resources (DFAR) alerted MRCC Colombo established in the Navy Headquarters that a crew member onboard the fishing trawler has developed an abdominal illness, and requested Navy’s assistance to transfer him ashore for treatment.
In the meantime, a nearby Merchant Vessel named ‘MV – CCNI Andes’ was directed to the trawler’s location to provide assistance, through the coordination of MRCC Colombo.
With the assistance of MRCC Colombo, the Merchant Vessel managed to retrieve the fisherman and he was brought to the Colombo Offshore Patrol Limit (OPL) by this morning, while administering first aid.
Following this, the Sri Lanka Navy dispatched a Fast Attack Craft (FAC), attached to the Western Naval Command, to the Colombo Offshore Patrol Limit (OPL), where they took on board the ill fisherman and brought him ashore.
The Sri Lanka Navy in coordination with MRCC Colombo continues to exemplify its dedication and unwavering commitment to safeguarding lives within Sri Lanka’s search and rescue jurisdiction, serving as a beacon of hope and security for seafarers and the fishing community.
Although, approval had been granted at the cabinet meeting held on 21-08-2024 to make remedial measures for the unfavorable effects to the fishing industry due to the considerable increase of the price of fuel, the said decision has not been implemented so far.
Therefore, the Cabinet of Ministers approved the proposal presented by the President in his capacity as the Minister of Agriculture, Land, Livestock , Irrigation, Fisheries and Water Resources to provide following concessions for a period of six (6) months with effect from 01-10-2024 with the objective of uplifting the economic condition of the fisheries community.
• To grant an allowance of Rs.25 per liter of diesel, subject to the maximum of rupees 300,000 per month for fishing vessel owners who utilise diesel.
• To provide “fishing industry recovery allowance” of Rs 25/- per liter of kerosene for vessel owners who obtain kerosene as a fuel, subject to a maximum of 15 liters of kerosene per day and 25 days per month.
The Cabinet of Ministers has approved the proposal presented by the President to reestablish the Food Policy Committee comprising of the following officers.
• Secretary to the President
• Secretary to the Prime Minister
• Secretary, Ministry of Finance, Economic Development, Policy Compilation, Planning and Tourism
• Secretary, Ministry of Power and Energy
• Secretary, Ministry of Agriculture, Land, livestock, Irrigation, Fishery and Water Resources
• Secretary, Ministry of Justice, Public Administration, Home Affairs, Provincial Council, Local Government and Labour
• Secretary, Ministry of Trade, Commercial, Food Protection\, Cooperative
Development, Industry and Entrepreneurship, Development
• Ministry of Health
• Secretary, Ministry of Transport, Highways, Ports and Civil Aviation
• Secretary, Ministry of Environment, Wildlife, Forest Resources, Water Supply, Plantation and Community Infrastructure Facilities
The food policy committee had been established as per the cabinet decision dated 03-10- 2022.
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