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Questionable deal with US energy firm: Professionals’ National Front asks whether govt. received AG’s consent

Published

5 years ago

2021/09/24

Sahan Weerasooriya

Prof. Samarajiva concerned about some sections of agreement

By Shamindra Ferdinando

Professionals’ National Front (PNP) Spokesperson Kapila Renuka Perera yesterday warned of dire consequences of going ahead with the government’s controversial agreement with the US energy firm New Fortress Energy. The grouping questioned the rationale behind losing state control/responsibility in ensuring uninterrupted fuel supplies to power stations.

The agreement with the New York based US firm would result in a catastrophe and the loss of state control of the energy sector could pose a threat to national security, Perera said.

Perera pointed out that the agreement had been finalised in a way that it didn’t come under the purview of Sri Lankan law. Responding to another query Perera said that it would be pertinent to ask whether the government had consulted the Attorney General on the questionable agreement.

Pointing out the danger of agreeing to international arbitration in respect of the US energy agreement, Perera said the issue at hand should be examined against the backdrop of the debt trap and the crisis in sharply weakened foreign reserves. The PNP spokesperson said that successive governments pursued agendas inimical to the country. The SLPP government was no exception, Perera alleged, urging all stakeholders to reach consensus on matters of national importance. “The US deal is nothing but a disaster. Government cannot act in such an irresponsible way,” Perera said.

Meanwhile, Prof. Rohan Samarajiva says he is supportive of PPPs (private and public partnerships) to bring in foreign capital and expertise, but PPPs should be based on a transparent process to secure the best possible price. “A transparent process whereby we know that the best possible price has been paid and the technical criteria have been satisfied.” He said it was certainly not the case as regards what he called a cloudy transaction involving the government of Sri Lanka and the US-based gas-to-power developer New Fortress Energy.

The one-time Director General of Sri Lanka Telecom (SLT) and political analyst said so when The Island sought his opinion on the US investment on the Yugadanavi power plant aka Kerawalapitiya power station operated by the West Coast Power Limited and the New Fortress Energy receiving the right to build a new LNG plant off Colombo.

The 300MW plant is owned by the country’s largest power supplier LTL Holdings, which is under government control.

Commenting on the recently concluded power deal, Prof. Samarajiva expressed serious concerns over certain provisions in the agreement. One-time DG, Sri Lanka Telecom recalled how exclusivity provisions given to Japan’s Nippon Telegraph and Telephone Corp (NTT) in respect of SLT caused serious issues. Prof. Samarajiva said: “In respect of the agreement with New Fortress Energy, the exclusivity provisions that have been reported are worrisome. I had enormous problems with the five year exclusivity given to NTT when they entered into a PPP on SLT in 1997. The excuse was that it was war time (true) and the rate rebalancing had to be completed (somewhat true). There is no war now, and there is no reason to give a broad exclusivity. If it is not time bound, it’s a recipe for disaster.”

Commenting on the challenges faced by Sri Lanka, Prof. Samarajiva said now that Chinese leader Xi Jinping has announced that China will no longer build coal plants abroad, there wouldn’t be any more additions to Norochcholai. “We need baseload capacity, so I guess LNG is the right fuel. But this must be placed in the larger context of the potential use for cooking and automotive uses. This seems disconnected from a larger plan. Should this be in Kerawalapitiya or in Hambantota/Trinco? Perhaps the right answer is Kerawalapitiya, but the assessment should have been done.”

The Island: At a time, the government has invited foreign investment with the focus on the Colombo Port City, how do you see the growing opposition to the US firm investing in the energy sector here?

Prof. Samarajiva: “The government is hobbled because of the cheap sloganeering while in opposition. But if they admit fault and speak the truth to people I believe it’s possible to marginalize Minister Wimal Weerawansa and his ilk.”

The Island: Do you think the government and the Opposition should seek a consensus on vital national matters such as foreign investments in key sectors?

Prof. Samarajiva:”Absolutely. We need bipartisan approaches to infrastructure.”

The Island: What should be the role of the parliament in such an endeavour?

Prof. Samarajiva: “I believe the crisis has reached a level where a national government should be formed. Parliament is where we should start.”

Prof. Samarajiva said that with the national economy in tatters in the wake of unprecedented devastation caused by the raging Covid-19 epidemic, the country was in such a deepening crisis the Parliament should move as an institution.

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PM on inspection tour of newly renovated Colombo Central Bus Stand

Published

16 hours ago

2026/04/10

Priyan

The Colombo Central Bus Stand, which has a history of over six decades and had remained without a proper maintenance for many years, has now been renovated under the current government’s development programme and vested to the public. Following that, the Prime Minister undertook an inspection tour of the newly renovated Colombo Central Bus Stand.

Originally constructed in 1964, the bus stand was refurbished with modern facilities to meet current needs and was officially reopened to the public on April 8. The primary objective of this initiative is to provide passengers with a higher-quality and more comfortable transportation service.

During the renovation process, special attention has been given to the comfort and safety of women, which was commended by the Prime Minister. In particular, a modern rest area designed to ensure privacy for nursing mothers travelling from distant areas received special praise.

The Prime Minister also reviewed the newly introduced passenger seat reservation system and information services established to assist commuters. In addition, the modern surveillance unit and other security measures installed within the premises to ensure passenger safety were also inspected.

During the visit, the Prime Minister engaged in conversations with passengers at the bus stand and inquired about their views on the newly renovated facilities and the quality of transport services.

It was emphasized that the government’s objective is to transform public transportation into a safe, technologically advanced service that can be used with convenience by all citizens.

(Prime Minister’s Media Division)

Latest News

Sun directly overhead Nagawilluwa, Galgamuwa, Sigiriya, Palugasdamana and Mankerni about 12:11 noon today (10)

Published

16 hours ago

2026/04/10

Priyan

On the apparent northward relative motion of the sun, it is going to be directly over the latitudes of Sri Lanka from the 05th to 15th of April in this year.

The nearest areas of Sri Lanka over which the sun is overhead today (10th) are Nagawilluwa, Galgamuwa, Sigiriya, Palugasdamana and Mankerni about 12:11 noon.

News

Opposition tells Minister Kumara Jayakody to resign

Published

17 hours ago

2026/04/10

Thilina Walpola

Prof. Peiris

No-faith motion to be taken up today

Former Foreign Minister Prof. G. L. Peiris yesterday (9) said that President Anura Kumara Dissanayake should remove Energy Minister Kumara Jayakody unless the minister stepped down on his own.Prof. Peiris, addressing a press conference called by the Opposition, said that Jayakody couldn’t under any circumstance continue to serve as a minister after the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) moved the Colombo High Court against the government member over a previous financial scandal.

Pointing out that Minister Jayakody had been indicted of a corrupt deal struck during the yahapalana regime, Prof. Peiris said it was wrong for the NPP to retain him as a minister, claiming that the offence was not committed during his tenure as a Cabinet minister in the current government.

Prof. Peiris and several other Opposition members dealt with the No-Confidence Motion (NCM) against Jayakody that would be taken up today (10) with the academic calling the vote an acid test for the NPP. Having campaigned on an anti-corruption platform at presidential and parliamentary polls, the NPP couldn’t protect Jayakody though he was widely believed to be close to President Dissanayake.

As the Manager of the Procurement and Import Division of the Ceylon Fertilizer Company, Jayakody is alleged to have committed the offence of corruption, according to CIABOC.

Jayakody has been accused of causing a loss of Rs. 8,859,708 to the State by influencing and exploiting the procurement process.

Following the serving of indictments on 27 March, the judge ordered Jayakody’s release on two personal bail bonds of Rs. 1 million each. The court directed that the defendant’s fingerprints be obtained and a formal report be submitted. The case has been scheduled for a pre-trial conference on 6 May.

Prof. Peiris stressed that the CIABOC action against Jayakody is central to the NCM primarily moved over the irregularities ridden coal procurement process launched in 2025 that caused severe disruption to the power generation. Responding to The Island query after the media briefing, Prof Peiris expressed surprise that the JVP/NPP accommodated a person under investigation by the CIABOC. Having taken an utterly irresponsible decision, the JVP/NPP were now playing down the developing issue, prof. Peiris said.

The entire government parliamentary group faced the prospect of having its image tarnished by defending Jayakody, the former lawmaker said.

Prof. Peiris said that they intended to build a campaign around the issues involving the energy minister to expose the government. With yet another electricity tariff hike in the offing due to the growing demand for thermal generation as a result of coal-fired Lakvijaya power plant’s failure to meet the requirement[RA1] , the energy minister and ministry’s performances have to be examined, Prof. Peiris said.The timely release of the Auditor General’s report on controversial coal procurement should compel the government to decide on the energy minister’s fate or be prepared to face the fallout.

By Shamindra Ferdinando