News
Upbeat Minister Gammanpila says success in gas and oil exploration can save national economy
…declares country in debt to the tune of USD 47 bn
Minister of Energy Udaya Gammanpila has claimed that the USD 267 billion worth of oil and gas resources in the Mannar Basin could generate three times the total debt of the country. The Pivithuru Hela Urumaya leader said so at the Consultative Committee on Energy held in Parliament on Tuesday (07).
The Minister said that though those who had invested in oil and gas exploration were given 50% of the income, Sri Lanka would receive USD 133.5 billion and it is almost three times the total debt of the country which amounts to USD 47 billion.
The Minister made this observation while briefing the Committee on the Petroleum Resources Bill to be tabled in Parliament for the second reading. Accordingly, the Bill was approved by the Committee.
The Minister said the Bill, which sought to regulate and manage the exploration of petroleum resources, including the establishment of the Petroleum Development Authority of Sri Lanka, will be presented to Parliament as a matter of priority for the Government.
Minister of Energy Udaya Gammanpila said that the Norochcholai power plant could operate for 120 years only from the gas in the Mannar Basin and the Sapugaskanda oil refinery could operate for 143 years with the locally tapped oil alone.
Although our neighbouring country India has been extracting oil and gas from the seas close to Sri Lanka since the 1940s, Sri Lanka has missed it due to various reasons. After lengthy discussions with experts on the subject, it was identified that there were several reasons that contributed to the aforesaid failure, Minister said.
Adding that large companies around the world had not come to explore oil resources in Sri Lanka in the recent past due to various reasons.”We took steps to hand over this task to experts on the subject matter through the establishment of the Petroleum Development Authority given the lack of understanding on the scope of the subject by the officials who were to take decisions in this regard previously. Also, as the regulatory powers such as the issuance of licenses were completely concentrated in the hands of the Minister, all activities had been disrupted when there was a change of the Minister. Therefore, we have decided to transfer all the powers of the Minister to the Board of Directors of this Authority. Also, a modern map was prepared to replace the existing traditional map for oil and gas exploration” the Minister added.
The Bill would also introduce a strong legal framework to protect those large investments and appoint a special committee to advise the Minister, as billions of dollars would have to be invested in the industry, the Minister of Energy said.
Furthermore, in general, a country would succeed in one after drilling seven wells in search of oil and gas according to world standards. The Norwegian government had to dig 31 wells for one success story whilst 3 out of 4 wells drilled in Sri Lanka were successful, the Minister said.
He also said that he intended to seek the assistance of Sri Lankan experts in the field from around the world.
Committee Members State Minister Jayantha Samaraweera, Members of Parliament Chandima Weerakkody, Nalin Bandara, Muditha Prishanthi, Gunathilaka Rajapaksha, B.Y.G Ratnasekera and Secretary to the Ministry Mrs. K.D.R. Olga were present at the meeting.
News
Coal scam has become litmus test for NPP: FSP
The scam involving the import of substandard coal has become the litmus test for the NPP Government, says the Frontline Socialist Party.The substandard coal scam has become the litmus test for the NPP government’s integrity and transparency, Frontline Socialist Party (FSP) Education Secretary Pubudu Jayagoda said on Thursday, alleging serious irregularities and contradictions in the government’s handling of coal procurement for the Lakvijaya Power Plant.
Addressing the media in Colombo, Jayagoda strongly rejected recent statements made by Tilvin Silva, General Secretary of the JVP, during an interview with a state television channel on the ongoing coal tender controversy. He said several of Silva’s claims were factually incorrect and echoed earlier statements made by the Minister of Power and Energy that had already been abandoned after being proven false.
“There are serious inaccuracies in the views expressed by Tilvin Silva. Some of these false points were first raised by the Power Minister a week or two ago, but he stopped repeating them once we produced documentary evidence,” Jayagoda said, adding that the JVP General Secretary appeared to be “not up to date with the facts.”
Jayagoda rejected claims that coal had previously been purchased without calling for tenders from a politician’s company at inflated prices. He said that since the Lakvijaya Power Plant commenced operations in 2008, tenders had been called annually and contracts awarded to the lowest bidder.
He also dismissed assertions that no tenders were called in 2023. “The Power Minister initially made this claim, too, but stopped after we presented the tender advertisements,” Jayagoda said. He questioned contradictory statements made by government representatives, pointing out that while Silva claimed no tender was called in 2023, references to 2023 tender specifications had been publicly cited by Deputy Minister Kumara Jayakody.
“If no tender was called in 2023, how were tender specifications published that year?” Jayagoda asked, describing the claims as mutually contradictory.
According to Jayagoda, tenders were, indeed, called in 2023 and the contract was awarded to Coral Energy. When that company failed to supply coal on time, the supply responsibility was transferred to Black Sand. He further rejected claims that no tenders were called in 2024, explaining that during the bidding process a company named Potentia had offered a lower price than the initial lowest bidder.
“Based on approvals from the Technical Evaluation Committee, the Procurement Committee, the Cabinet, and finally the Attorney General, coal was purchased from the lowest bidder,” he said, adding that any doubts regarding the legality of the process could be investigated through proper legal channels.
However, Jayagoda stressed that the controversy was not merely about whether tenders were called, but about how the process was manipulated. He listed several concerns raised by the FSP from the outset, including a four-month delay in calling for tenders, changes to tender specifications, and the tender period being reduced by half.
“Urgency was cited as the justification for these changes, yet there was a six-week delay in awarding the tender. That clearly shows there was no real urgency,” he said.
Jayagoda also alleged that laboratory reports were concealed when substandard coal shipments were imported, in order to protect the supplying company. He said that despite a contractual clause requiring the tender to be cancelled if two shipments failed quality standards, the government continued with the order. He further accused the authorities of violating the agreement by approving emergency purchases in a way that benefited the supplier.
“The entire process is suspicious,” Jayagoda said. “A Minister will not resign unless they admit to fraud. But it is the responsibility of the President and the government to conduct an independent investigation, determine whether fraud has occurred, and remove the Minister if wrongdoing is established.”
He concluded by reiterating that the coal tender controversy would serve as a decisive test of the government’s commitment to accountability. “This is the litmus test for the integrity and transparency of the government,” Jayagoda said.
News
INS Gharial delivers 10 Bailey Bridges to Lanka
A consignment of 10 Bailey Bridges arrived in Colombo from Visakhapatnam aboard the Indian Navy ship INS Gharial and was formally handed over at a ceremony held on 05 February.The bridges were handed over by the Acting High Commissioner of India to Sri Lanka, Dr. Satyanjal Pandey, to Deputy Minister of Ports and Civil Aviation, Janitha Ruwan Kodithuwakku.
The additional Bailey Bridges have been provided under India’s grant assistance of USD 5 million for post-Cyclone Ditwah reconstruction, aimed at strengthening critical connectivity infrastructure in affected areas. Another consignment, carrying the remaining bridge components, is expected to arrive shortly.
The supply of Bailey Bridges forms part of India’s comprehensive USD 450 million Reconstruction and Rehabilitation Package announced by India’s External Affairs Minister, Dr. S. Jaishankar, during his visit to Sri Lanka, following Cyclone Ditwah.
The newly supplied bridges are to be installed at various locations across the country. Technical assessments for installation are being carried out by Indian Army engineers, in close coordination with the Sri Lankan Army and the Road Development Authority (RDA).
India has previously supplied four Bailey Bridges to Sri Lanka, two of which were installed in the Kilinochchi District and two along the Kandy–Ragala Road. These bridges have played a key role in restoring connectivity in difficult and hilly terrain, improving access for local communities and facilitating the resumption of essential services, livelihoods, and economic activity.
News
Anusha Palpita further remanded until 20 Feb.
Former Secretary to the Ministry of Mass Media and former Chairman of the Telecommunications Regulatory Commission of Sri Lanka (TRCSL), Anusha Palpita, was further remanded until 20 February by the Colombo Chief Magistrate’s Court.
The Court issued this order after considering the facts presented by the Bribery Commission and the attorneys representing the suspect.
Palpita was taken into custody and subsequently produced before the court on 23 January in connection with an investigation conducted, based on information received by the Bribery
Commission regarding the failure to disclose the source of assets amounting to Rs. 46 million, the Commission stated.
According to the Bribery Commission, Anusha Palpita arrived at the Commission on 23 January 23 was taken into custody after recording his initial statement.
The arrest was made on the charge of accumulating significant assets and property, exceeding his income, during a specific period, following an investigation into assets gathered beyond his legal earnings, within that time frame.
-
Business4 days agoSLIM-Kantar People’s Awards 2026 to recognise Sri Lanka’s most trusted brands and personalities
-
Business6 days agoAltair issues over 100+ title deeds post ownership change
-
Business6 days agoSri Lanka opens first country pavilion at London exhibition
-
Business5 days agoAll set for Global Synergy Awards 2026 at Waters Edge
-
Business4 days agoAPI-first card issuing and processing platform for Pan Asia Bank
-
Business6 days agoESOFT UNI Kandy leads the charge in promoting rugby among private universities
-
Editorial2 days agoAll’s not well that ends well?
-
Features2 days agoPhew! The heat …
