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New Government Revives US LNG Deal amid India, and China Partnerships

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By: Staff Writer

January 13, Colombo (LNW): Sri Lanka’s new government has decided to reactivate a previously suspended liquefied natural gas (LNG) agreement with US-based New Fortress Energy, marking a significant step toward reducing energy costs and transitioning to cleaner fuels. This decision reflects the government’s effort to modernize its energy infrastructure while balancing relationships with global partners, including India and China, despite controversies surrounding past LNG procurement processes.

The government views LNG as a transitional energy source that complements its renewable energy goals while ensuring affordable and reliable power for citizens. Energy Minister Kumara Jayakody announced plans to revive a tender for an LNG terminal to support two major combined-cycle power plants, which currently rely on costly liquid fuels.

 Speaking in parliament, Jayakody highlighted the importance of LNG in reducing energy expenses and supporting the shift to cleaner energy, although he acknowledged coal remains the cheapest thermal option. Despite this, Sri Lanka has pledged not to expand coal-based energy projects.

Renewable Energy Expansion and LNG’s Role

Sri Lanka is striving to enhance its renewable energy capacity, particularly through solar and wind projects. However, these energy sources are intermittent and require backup to maintain supply reliability. LNG is positioned as a crucial transitional fuel to bridge the gap between liquid fuels and the country’s expanding renewable energy portfolio.

Controversies and Policy Revisions

In 2023, an open international tender awarded a China-Pakistan consortium, led by Engro, the contract to supply LNG and develop a pipeline network aimed at significantly reducing power production costs. However, this initiative was suspended in 2024 when the government, under a new energy policy, halted key LNG projects.

These included plans for a floating storage and regasification unit (FSRU) off Kerawalapitiya, an offshore and onshore LNG transmission pipeline network, and an onshore receiving facility.The suspension created an opportunity for India’s Petronet LNG Ltd. to enter the market.

India’s Petronet LNG Entry

India’s largest LNG supplier, Petronet LNG Ltd., is set to begin supplying Sri Lanka with LNG in 2025. Initially, Petronet will deliver 850 tonnes of LNG daily using containers, eventually transitioning to a floating LNG receipt facility at Colombo Port.

 According to CEO Akshay Kumar Singh, Petronet plans to source LNG from Qatar, Australia, and other suppliers, with shipments originating from its terminals in Gujarat and Kerala. This initiative aligns with Sri Lanka’s goal of diversifying energy partnerships while reducing costs.

US-Based New Fortress Energy’s Resurgence

New Fortress Energy (NFE), a US-based energy developer, has resumed its plans for LNG infrastructure in Sri Lanka after the Supreme Court dismissed opposition petitions in 2022. NFE originally signed an agreement in 2021 to develop an LNG terminal off Colombo’s coast and supply LNG to major power plants.

Under the agreement, NFE secured gas supply rights for the Kerawalapitiya Power Complex, which includes the operational 310 MW Yugadanavi Power Plant and the 350 MW Sobadanavi Power Plant, expected to begin operations in 2023.

NFE plans to supply an initial volume of 1.2 million gallons of LNG per day, significantly advancing Sri Lanka’s energy modernization efforts. Wes Edens, CEO of NFE, emphasized the project’s importance, stating it delivers cleaner, reliable, and affordable energy, while supporting sustainable development and economic growth.

Balancing Global Partnerships

Sri Lanka’s energy strategy highlights the country’s balancing act among major global players: the US, India, and China. While China’s earlier bid encountered setbacks, India’s Petronet LNG is now positioned to play a central role in Sri Lanka’s energy transition. Meanwhile, New Fortress Energy remains committed to advancing its LNG projects.LNG is seen as a transitional fuel bridging the gap to renewable energy by addressing supply reliability issues. However, Sri Lanka faces the challenge of navigating complex international partnerships while meeting domestic energy needs. Balancing these priorities will require careful policymaking as the nation seeks to achieve energy sustainability and affordability.

Prison authorities facilitate special visitations for inmates on Thai Pongal Festival

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January 13, Colombo (LNW): In celebration of the upcoming Thai Pongal Festival on 14 January, the Department of Prisons has made special provisions for Hindu prisoners, allowing them to receive visits from their families during this important religious occasion.

To mark the festival, which is significant in the Hindu calendar, inmates who observe the traditions of Thai Pongal will be granted the opportunity to spend time with their loved ones.

The arrangements for these visitations will be implemented at prisons across the country, ensuring that Hindu prisoners are able to partake in the festive spirit with their families.

Visitors are kindly requested to bring food only for the respective inmate they are visiting, ensuring that the distribution of provisions remains manageable and in line with security protocols.

These food items will be provided in a manner consistent with prison regulations, and the Department has emphasised the importance of adhering to established guidelines for these special visits.

The visitations will be conducted in compliance with the health guidelines currently in place, ensuring both the safety of the inmates and their visitors during the ongoing pandemic.

Additionally, all arrangements will be made in strict accordance with the rules governing the operation of the prisons, so as to maintain order while facilitating the festive observance.

3,500 Sri Lankans set to undertake Hajj Pilgrimage to Saudi Arabia

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January 13, Colombo (LNW): The Ministry of Religious and Cultural Affairs has confirmed that 3,500 Sri Lankan citizens will be granted the opportunity to participate in the Hajj pilgrimage to Saudi Arabia this year.

This significant announcement follows the successful conclusion of key agreements between Sri Lanka and the Kingdom of Saudi Arabia regarding the pilgrimage.

The formal agreement was signed by Abdulfattah Bin Sulaiman Mashat, Deputy Minister of Hajj and Umrah for Saudi Arabia, and Dr. Hiniduma Sunil Senevi, Sri Lanka’s Minister of Buddhasasana, Religious and Cultural Affairs.

This partnership marks a crucial step in facilitating the participation of Sri Lankan Muslims in the sacred religious journey.

In addition to confirming the pilgrimage arrangements for this year, the Ministry has revealed that discussions were held with Saudi officials to explore ways to enhance facilities for Sri Lankan pilgrims.

The objective is to further improve the pilgrimage experience and potentially increase the number of pilgrims allowed to travel in the future.

The Ministry of Religious and Cultural Affairs reiterated that it is committed to expanding the scope of this collaboration, ensuring that more Sri Lankans can fulfil this important religious duty in the years to come.

Move to strengthen crime investigations with provincial divisions

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January 13, Colombo (LNW): Minister of Public Security and Parliamentary Affairs, Ananda Wijepala, has announced plans to enhance the country’s crime investigation capabilities by setting up dedicated investigation divisions at the provincial level.

This move, which aims to improve the efficiency and effectiveness of the police force, is seen as a step towards decentralising the investigation process and ensuring better coordination across regions.

Whilst the existing police stations will continue to operate as usual, the establishment of these new divisions is intended to provide a more focused and systematic approach to handling criminal investigations.

The Minister revealed that these divisions have already been set up in the Southern Province, with plans to expand them to other regions in the near future.

Minister Wijepala further explained that the objective of these divisions is to streamline the investigative process, making it more organised and responsive to the needs of the public.

By having specialised teams operating within each province, the government hopes to improve the speed and quality of investigations, ultimately leading to a reduction in crime and enhanced public safety.

Additionally, the Minister noted that certain high-profile or complex investigations will remain under the direct supervision of the Inspector General of Police (IGP).

This will ensure that cases requiring additional resources or expertise receive the attention they deserve.

Govt to compensate victims of tragic tree collapse at Matara Prison

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January 13, Colombo (LNW): The government has announced that compensation will be provided to the families of the inmates who tragically lost their lives following a tree branch collapse at Matara Prison on 01 January.

Prisons Spokesperson, Gamini B. Dissanayake, confirmed that the victims’ families will receive Rs. 250,000 for each deceased inmate, in recognition of their loss.

In addition to the fatalities, the incident resulted in ten other prisoners sustaining injuries, some of which required hospitalisation at the Matara Hospital.

Thankfully, all those injured have since been treated and have returned to the prison.

The tragic event occurred when a large branch of a tree fell onto the prison’s premises, causing significant damage. Two buildings within the prison compound were affected by the incident, with one of them already having undergone repairs.

The refurbishment of the second building is expected to be completed soon, ensuring that the facilities are restored to a safe condition.

In response to the incident, the authorities have also arranged for the transfer of 55 inmates to the Angunakolapelessa Prison, as part of measures to ease overcrowding and maintain the security of the prison system.

President to undertake state visit to China

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January 13, Colombo (LNW): President Anura Kumara Dissanayake is set to embark on a State visit to the People’s Republic of China from January 14 to 17, following an official invitation from Chinese President Xi Jinping.

This significant trip aims to enhance the longstanding bilateral relations between Sri Lanka and China, with a series of high-level discussions and engagements scheduled.

During his visit, President Dissanayake will meet with President Xi Jinping, where the two leaders are expected to hold comprehensive talks on a variety of mutual interests, ranging from economic cooperation to infrastructure development.

In addition to President Xi, the Sri Lankan head of state will also engage with Premier Li Qiang and Zhao Leji, Chairman of the Standing Committee of the National People’s Congress of China.

Upon his arrival in Beijing, President Dissanayake will be given a formal guard of honour at the Great Hall of the People, after which he will participate in detailed bilateral talks with President Xi.

Several Memoranda of Understanding (MoUs) are expected to be signed following the discussions, marking the next step in the strengthening of ties between the two nations.

The visit will also include an important investor forum, with leading representatives from major Chinese firms such as China Harbour Engineering Company (CHEC), China Merchant Group (CMG), Sinopec, Huawei, Build Your Dreams (BYD), and other prominent businesses.

This forum aims to deepen economic cooperation and open new avenues for investment and trade between the two countries.

Following his time in Beijing, the Sri Lankan President will travel to Chengdu, where he will visit key sites including the Donfeng Electric Corporation, Tiangi Lithium Corporation, and the Chengdu National Agricultural Science and Technology Centre.

He will also tour Zhan Qi village, a model for China’s poverty alleviation efforts. In Chengdu, the President will hold discussions with the Communist Party of China’s Secretary of the Sichuan Provincial Committee, furthering the exchange of ideas and collaboration between the two nations.

Chinese Foreign Ministry spokesperson Guo Jiakun highlighted the significance of the visit, stating that China is eager to work closely with Sri Lanka to deepen political trust and expand cooperation, particularly under the Belt and Road Initiative.

He noted that since the establishment of diplomatic ties in 1957, the relationship between China and Sri Lanka has withstood the test of time and international changes, remaining a model of mutual respect and beneficial collaboration.

13 reservoirs begin spilling amidst heavy rainfall, flood risk increases

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January 13, Colombo (LNW): The Water Management Branch of the Irrigation Department has announced that 13 reservoirs across the island have started spilling following intense rainfall in their respective catchment areas.

Amongst these, the affected reservoirs include Mahakandarawa, Mahawilachchiya, Nuwara Wewa, Rajangana, Unnichchi, Muruthawela, Weerawila, Ellewela, Wemedilla, Mediyawa, Usgala, Ethimale, and Wan Ela, all of which have reached their spillover levels.

The rise in water levels has prompted authorities to issue a warning to residents and individuals in areas downstream of these reservoirs, urging them to stay alert for the possibility of sudden floods.

With the heavy rainfall continuing, there is an increased risk of flash floods, particularly in regions situated near the affected reservoirs.

The unusual increase in water levels is being attributed to persistent rainfall, especially in the sea areas extending from Colombo to Kankesanthurai, passing through Puttalam and Mannar.

These showers have significantly impacted the catchment areas, leading to an overflow in several major reservoirs.

The public is urged to exercise caution when travelling near water bodies and to follow the advice of local authorities to ensure their safety.

Govt plans to establish new medicine testing laboratories amidst ongoing probes

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January 13, Colombo (LNW): The Sri Lankan government is taking steps to address concerns about the quality of medicines by focusing on the establishment of multiple laboratories dedicated to drug testing, according to Dr. Anil Jasinghe, Secretary to the Ministry of Health.

Speaking to the media in Kandy, Dr. Jasinghe outlined the government’s initiative to enhance the country’s drug testing capabilities, which is expected to improve oversight and ensure higher standards of healthcare.

Dr. Jasinghe explained that while medicines are currently tested only when complaints arise, this reactive approach is inadequate.

He stressed the importance of conducting regular quality checks at various stages throughout the procurement and distribution processes.

To address this gap, the government is now prioritising the development of one or two dedicated laboratories for drug testing within Sri Lanka.

These laboratories will be crucial in establishing a more proactive approach to quality assurance,” Dr. Jasinghe said. “Testing should not just occur when there is a problem, but should be integrated into the entire process, from the moment of procurement to the point of distribution.

Sri Lanka, although a relatively small nation, faces challenges in managing its expansive healthcare system. Dr. Jasinghe pointed out that the country’s procurement process for medicines is larger and more complex than that of many developed nations, mainly because Sri Lanka’s healthcare system is centrally controlled by the government.

This centralisation has resulted in the state overseeing a significant portion of the country’s pharmaceutical supply.

In addition to discussing the future of drug testing, Jasinghe addressed recent concerns over the involvement of a blacklisted company in the importation of medicines.

The Ministry of Health is planning an investigation into these allegations, which have raised questions about the integrity of the procurement process. Dr. Jasinghe assured the public that the government is taking these matters seriously and is committed to ensuring that only safe and effective medicines are supplied to the population.

SLAF earns over Rs. 56 mn for election-related air transport services

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January 13, Colombo (LNW): The Sri Lanka Air Force (SLAF) has revealed that it earned more than Rs. 56 million by offering air transport services to presidential candidates during the 2024 election campaign.

The services, which were provided over a span of 34 days from August 15, when nomination submissions began, until the conclusion of the election campaigns on September 18, have sparked significant attention.

According to the SLAF, former President Ranil Wickremesinghe accounted for the largest share of earnings, with Rs. 29.09 million generated from 23 flights.

Opposition leader Sajith Premadasa followed closely, contributing Rs. 20.75 million for 11 flights.

Additionally, SLPP candidate Namal Rajapaksa used the service twice, bringing in Rs. 1.44 million.

Former President Mahinda Rajapaksa also chartered two flights, paying Rs. 2.68 million, while former Prime Minister Dinesh Gunawardena and former National Security Adviser Sagala Ratnayake respectively paid Rs. 1.24 million and Rs. 1.6 million for one flight each.

In a notable development, it was reported that NPP candidate and current President Anura Kumara Dissanayake did not make use of SLAF flights during the campaign, marking a contrast to the other candidates.

The financial breakdown was provided in response to a Right to Information (RTI) request, shedding light on the scale of the air transport services utilised by the political figures during the election period.

In total, the SLAF reported expenses of Rs. 9 million for fuel, having used approximately 42,000 litres to support the airlift operations throughout the election.

The use of state resources, including aircraft, by political candidates had been a topic of public debate throughout the campaign.

Critics questioned whether state funds were being misused for political purposes, but the SLAF has maintained that the services were offered strictly on a payment basis, adhering to established procedures.

Port City Colombo Marina set to boost Sri Lanka’s tourism and investment potential

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January 13, Colombo (LNW): The development of a state-of-the-art marina within the Port City Colombo project is expected to position Sri Lanka as a prominent destination for both tourism and foreign investment, according to the country’s Foreign Minister, Vijitha Herath.

Speaking at the ceremonial launch of the construction on Friday, Herath highlighted the critical role that the Port City will play in elevating Sri Lanka’s global stature.

Herath noted that the marina’s construction will address the existing gap in luxury maritime services in South Asia, making Sri Lanka an appealing hub for affluent travellers and international investors.

The project, part of the larger Port City development, aims to enhance the country’s appeal as a competitive tourism and investment hotspot in the region.

This initiative is a key part of our strategy to attract foreign capital, expand our tourism sector, and bolster Sri Lanka’s international reputation,” Herath explained.

He also emphasised that the port city is set to deepen Sri Lanka’s ties with China, fostering stronger cultural and economic cooperation.

This collaboration, he added, will be pivotal in helping the nation achieve its ambitious tourism revenue targets.

Harsha Amarasekera, Chairman of the Colombo Port City Economic Commission, echoed Herath’s sentiments, describing the project as a significant catalyst for Sri Lanka’s economic growth.

Amarasekera further stated that the marina will create numerous job opportunities, as well as attract high-end international brands, which will in turn invigorate Sri Lanka’s economic recovery.

The marina’s commercial development will span approximately 20,400 square metres, with the construction area covering nearly 49,000 square metres.

Experts predict that the new facility will become a magnet for luxury yachts, cruises, and upscale maritime services, contributing to an increase in high-value tourism.