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Friday June 14th, 2024

Sri Lanka expects India, Japan, New Fortress to join in LNG deal: Minister

ECONOMYNEXT – Sri Lanka is expecting companies from Japan, India, Japan, and New Fortress Energy of the US to jointly come up with a proposal to supply a liquified natural gas terminal, Power and Energy Minister Kanchana Wijesekera said.

Sri Lanka is building two LNG-capable 300MW-sized combined cycle power plants but has no terminal to unload the fuel.

Minister Wijesekera claimed that a combined cycle known as Yugadanavi was already capable of running on LNG. Another 300MW plant known as Sobadanavi would be available from November 2023.

“But the problem is the CEB unions and other went to court regarding the LNG supply. Without the supply and infrastructure,” Minister Wijesekera said.

“So, we will execute a plan fast in January for infrastructure and supply of LNG.”

The CEB had earlier floated a tender for a build-operate-own floating storage re-gasification unit (FSRU) which will be financed by throughput charges and LNG will be supplied separately by competitive tenders like coal and fuel is supplied now.

However the tender was not proceeded through after a controversial unsolicited deal with US based New Fortress Energy was made public.

“The tender for the terminal had not been given,” Minister Wijesekera said. “Before that there are two proposals. In 2017 a tripartite agreement between India, Japan and Sri Lanka had been signed.

“In addition, there is another agreement with a company called New Fortress Energy. So we are looking to see what can be implemented most practically. Next steps will be taken accordingly.

“I think those companies are talking among themselves to operate jointly as far as I know.

“We will have to do this with all the companies after all those discussions are over.”

New Fortress and at least two other proposals had involved controversial take-or-pay energy deals involving compelling the CEB to buy LNG from the terminal owner or pay penalties had been opposed by unions.

“It is still at discussion level,” Minister Wijesekera said when asked whether another take-or-pay deal was in the offing.

“There is no firm decision yet. When there is a firm decision we will inform you.” (Colombo/Dec28/2022)

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  1. Dickie Bird says:

    Why only India and Japan Mr. Minister. Why not invite China too?
    You have a problem with China?

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  1. Dickie Bird says:

    Why only India and Japan Mr. Minister. Why not invite China too?
    You have a problem with China?

Sri Lanka opposition leader proposes Grama Rajya system in addition to 13A

Opposition leader Sajith Premadasa (r) – File photo

ECONOMYNEXT — Sri Lanka opposition leader Sajith Premadasa has proposed devolving power to the village level through a Grama Rajya system in addition to implementing the 13th amendment to the constitution.

Speaking at an event in Jaffna on on Wednesday June 12, Premadasa said all provinces will benefit from the 13th amendment.

“Whatever one’s ethnicity, religion, status or region, this country has citizens of equal level. They’re all Sri Lankan citizens.

“There is no division or grouping.  As we give you and every other province what you should be given through the 13th amendment, we must implement a Grama Rajya system,” Premadasa said, addressing a crowd of school children and other attendees.

Premadasa’s assurance of implementing the 13th amendment has already drawn some protest in the south.

A collective of civil society organisations held a protest outside the office of the leader of the opposition in Colombo on Thursday June 12.

Calling itself the ‘Coalition Against Partition of Sri Lanka’, the group carrying national flags marched up to the opposition leader’s office Thursday June 13 morning and demonstrated against the full implementation of the 13th amendment.

“We arrived here today to hand over a missive against devolving police powers, land powers and judicial powers. If Mr Premadasa is inside, come outside,” Jamuni Kamantha Thushara, Chairman of the Citizen’s Movement Against Fraud, Corruption, and Waste, was seen declaring at the site.

“First of all, tell us what we stand to achieve by dividing and giving away the north and east,” said another protestor, warning against bringing the 13th amendment “anywhere here (paththa palaathe)”.

A police officer at the scene the protestors that a secretary to the opposition leader was ready to accept their letter.

“In Kilonochchi, he says the 13th amendment will be implemented. The votes in the north are going to be decisive this election. To win those votes, President Ranil Wickremesinghe, Sajith and Anura Kumara Dissanayake all say they will implement the 13th. We will not allow this country to be divided into nine pieces,” said Thushara.

Ven Balangoda Kassapa Thero, who was arrested on June 06 during a protest against the new Electricity Act, was also seen at Thursday’s protest. The Buddhist monk requested for a debate with Premadasa on the matter of the 13th amendment. (Colombo/Jun12/2024)

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Sri Lanka rupee closes flat at 303.85/95 to US dollar

ECONOMYNEXT – Sri Lanka’s rupee closed broadly flat at 303.85/95 to the US dollar on Thursday, from 303.80/304.00 to the dollar the previous day, dealers said. Bond yields were down.

A bond maturing on 15.12.2026 closed at 10.00/30 percent, down from 10.20/40 percent.

A bond maturing on 15.10.2027 closed at 10.60/75 percent.

A bond maturing on 01.07.2028 closed at 11.00/15 percent, down from 11.15/40 percent.

A bond maturing on 15.09.2029 closed at 11.80/85 percent.

A bond maturing on 15.05.2030 closed at 11.85/12.05 percent, down from 11.90/12.05 percent.

A bond maturing on 01.10.2032 closed stable at 11.95/12.15 percent. (Colombo/Jun13/2024)

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Sri Lanka sells Rs295bn in 2027 to 2031 bonds

ECONOMYNEXT – Sri Lanka has sold 295 billion rupees in 2027, 2029 and 2031 bonds, data from the state debt office showed.

The debt office sold an offered 60 billion rupees of 15 October 2027 at an average yield of 10.30 percent.

All offered 125 billion rupees of 15 September 2029 bonds were sold at 11.00 percent.

All 110 billion rupees offered of 01 December 2031 bonds were sold at 12.00 percent. (Colombo/May13/2024)

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