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Mannar basin now on major oil radar

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Conditions have changed since Cairn India drilled exploratory wells

Conditions for taking forward Sri Lanka’s efforts at exploiting indications of the presence of petroleum and natural gas in the Mannar basin have improved significantly in the last two years according to well informed sources in the international oil industry.

These sources said that when Cairn India drilled three completed exploratory wells between 2011 and 2013, two of the wells, Barracuda and Dorado was believed to contain gas estimated to be 1.8TCF and 300 BCF respectively.

“While they were not commercially viable when oil and gas prices collapsed in 2014, there is a strong possibility they will be at today’s prices. There are technologies that have reduced capital expenditure such as gas-to-wire power generation that help make the economic case for production of these gas finds,” these sources said.

“Cairn India has invested nearly $200 million in Sri Lanka, but it would require an investment of over $1 billion to build production infrastructure. Therefore, it is vital to urgently attract as many investors as possible for exploration and production to maximize benefits to Sri Lanka – especially in light of the global energy crisis and the concomitant energy price increases which has enhanced investor appetite.”

Other sources placed the Cairn investment at $ 250 m. saying it will now cost around $500 m to put in place a subsea completion to produce the smaller prospect. While one must drill to ascertain the actual existence and quantity of resources, seismic studies estimate 9 TCF of gas and several billion barrels of oil in the Mannar Basin, industry sources said.

These volumes could fulfill several decades of the country’s energy needs while potentially saving $6-7 billion p.a. in expenditure on energy. It also opens opportunities for Sri Lanka to earn revenue through Production Sharing Agreements with investors who take 100% of the risk. Mr. Saliya Wickramasuriya, Chairman of the Petroleum Development Authority of Sri Lanka confirmed that the picture had improved since Cairn drilled its first wells and possibilities of the Mannar basin are now on the radar screens of international oil majors.

“There have been external market changes (including price rises) and technology too had become cheaper. Additionally there have been internal improvements to the operating environment and legal framework. We’ve made it more investor friendly,” he said.

Other sources said what is needed now is to prudently fast track the long delayed Mannar Basin M2 block (exploration and production) tender and the commencement of exploration work by the selected bidder for the M1 and C1 July 2019 tender.There is also a need for conducting a marketing campaign to attract further investment while oil and gas prices are at historically high levels, they said.



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Gnanasara Thera urged to reveal masterminds behind Easter Sunday terror attacks

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Religious and civil society leaders have called upon Ven. Galagodatte Gnanasara Thera to share whatever information he claims to possess with regard to the Easter Sunday terror attacks and their masterminds.

Addressing the media at the Centre for Society and Religion in Colombo, Lawyer Manoj Nanayakkara said Ven. Gnanasara Thera claimed to have information related to the terror attacks and the masterminds behind them.

“The question is why he does not go to the law enforcement agencies and share the information he claims to possess. There is no purpose in making such statements at press conferences. As a citizen, his duty is to share this information with the investigating authorities. Therefore, we believe that Gnanasara Thera is engaging in a political ploy at the behest of someone else. He should be aware that intentionally withholding information about a brutal massacre and failing to share it with the investigating authorities is an offense punishable under the Penal Code,” Nanayakkara said.

Nanayakkara mentioned that 71 months had passed since the Easter Sunday attacks, yet justice has not been served for the victims.

He called on President Anura Kumara Dissanayake to begin implementing the recommendations outlined in the Special Presidential Commission of Inquiry that investigated the Easter Sunday terror attacks, without further delay.

“We are approaching the sixth anniversary of this heinous crime, which claimed nearly 275 lives and injured twice as many others. President Dissanayake promised to conduct a fresh investigation into this crime. In the meantime, he could implement the recommendations of the Special Presidential Commission that probed the Easter Sunday terror attacks. This would demonstrate that the current government is keeping its word to deliver justice to the victims,” Nanayakkara said.

Rev. Fr. Julian Patric Perera, Rector of St. Joseph Vaz Deva Dharma Niketanaya, also addressed the press conference.

By Norman Palihawadane

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IMF asks SL to maintain reform momentum to stabilise economy

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The International Monetary Fund (IMF) says that the economic recovery is gaining momentum in Sri Lanka but it remains vulnerable, making it critical that the reform momentum be sustained to ensure that macroeconomic stability and debt sustainability are durably achieved.

Speaking during the IMF’s weekly press briefing, IMF Spokesperson Julie Kozack stated that the fourth tranche of $334 million was made available to Sri Lanka to support its economic policies and reforms, immediately after the Executive Board approved the Third Review.

“On Friday, February 28th, the IMF Executive Board approved the Third Review under the EFF (Extended Fund Facility) arrangement for Sri Lanka. And this provided the country with immediate access to $334 million of support.”

“So, yes, once the Board approved that Third Review, the $334 million was made available to Sri Lanka to support its economic policies and reforms.  And with this $334 million, it brings total financial support from the IMF to Sri Lanka to $1.34 billion”, Kozack confirmed.

Furthermore, the IMF Spokesperson said that reforms in Sri Lanka are bearing fruit and that the economic recovery is gaining momentum.

She noted that inflation remains low in Sri Lanka, revenue collection on the fiscal side is improving, and international reserves are continuing to accumulate.

Economic growth reached 5 percent in 2024, and that was after two years of economic contraction, she added, highlighting that the IMF do expect the recovery to continue in 2025.

“These are all very positive developments for Sri Lanka and for the people of Sri Lanka”, Kozack expressed.

Meanwhile, the IMF Spokesperson also mentioned: “All of this said, the economy still does remain vulnerable, and, therefore, it is critical that the reform momentum be sustained to ensure that macroeconomic stability and debt sustainability are durably achieved.”

In response to a question raised by a journalist on the IMF’s take on the proposal to list Sri Lanka’s State-Owned Enterprises (SOEs) in the Colombo Stock Exchange given that the programme also calls for extensive reforms in SEOs, Kozack denied a comment, stating, “I don’t have anything for you on that regarding the SOEs, but we’ll come back to you bilaterally.”

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Ravi K. accuses two individual of undermining UNP

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Ravi

New Democratic Front MP Ravi Karunanayake has accused two prominent members of the UNP of deliberately destabilising the party.

Speaking at a media briefing, MP Karunanayake stated that it was clear these two individuals were working to undermine the UNP.

He went on to claim that party leader Ranil Wickremesinghe had been “taken hostage,” by those individuals.

“I am currently the only member capable of presenting the UNP’s programmes in Parliament. Yet, these two members have shown us no respect, treating us like outsiders and excluding us from key decisions,” Karunanayake said.

“We are not even being informed about party meetings; this is clearly a stepmotherly treatment.”

Karunanayake further claimed that the two individuals were only focused on fighting for leadership positions within the party, such as the Chairmanship or the post of General Secretary, instead of prioritising unity and collaboration for the party’s future.

The MP also expressed concern that the actions of these individuals might be part of a larger conspiracy, questioning whether they were being orchestrated by external forces.

In response to rumours suggesting that he had approached the SJB, Karunanayake strongly denied the claims, asserting that such rumours were being spread by the two members working to undermine the UNP.

“These rumours are nothing more than attempts to discredit me, orchestrated by those who are sabotaging the party from within,” he said.

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