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Govt. accused of succumbing to Indian pressure to kick China out of LNG space

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The Government is alleged to have succumbed to Indian pressure kicking China out of Sri Lanka’s Liquefied Natural Gas (LNG) space.

The alleged move concerning LNG infrastructure projects in Kerawalapitiya has sparked concerns among various stakeholders within the energy sector. Sources claimed that the move could possibly jeopardise the Kerawalapitiya LNG-led clean energy power complex which was in the power development master plan into disarray.

The concerned projects are “Development of FSRU at Offshore Kerawalapitiya on BOO Basis and Mooring on BOOT Basis” initiated by the Ceylon Electricity Board (CEB), and the “Construction of a Re-gasified Liquefied Natural Gas (R-LNG) pipeline system from Floating Storage Regasification Unit (FSRU) to existing Kelanitissa and Kerawalapitiya power plants on Build, Own, Operate and Transfer (BOOT) basis” initiated by CPC. They were published through an international bidding process in early 2021, (after four previously failed G2G/unsolicited attempts) which should have become the first project that introduced LNG to Sri Lanka. Sources said the projects have experienced a long and stringent evaluation of the technical and financial proposals, after which it was deemed that the Chinese company, China Harbour Engineering Company Ltd., (CHEC) was the only Technically Qualified bidder. 

“Such infrastructure ought to have been commenced if it were not for the economic issues faced last year, whereas both projects stagnated at the final stage of this procurement process for nearly one year,” sources said. 

Especially with the FSRU&M Project, its Concession Agreement has been ready since September 2022, only requiring Cabinet Approval, and had the Ministry drafted the cabinet paper, it could have commenced right away as informed sources on the matter commented.

“Any delay or diversion in implementing these critical projects may be detrimental to Sri Lanka and Government’s plans to make Sri Lanka energy secure/independent and might create significant value chain losses which can only be avoided by robust, righteous, and timely decision-making,” sources pointed out.

As an essential energy infrastructure, after multiple studies, the projects were the only proven feasible way out to LNG in Sri Lanka, which is deemed a clean energy source with lower carbon emissions and higher economic efficiency. The projects are of the potential to serve up to 8 power plants with capacity of 2,400 MW. By replacing diesel with LNG for power plants, the projects will facilitate the diversification of the energy mix. Hundreds of million US dollars in foreign exchange per year are expected to be saved, and the public will meanwhile reap benefits by way of reduced tariffs.  

Sources alleged that plans underway by the Government to suspend this procurement process and the move ahead of President Ranil Wickremesinghe’s historic visit to India was an indication of the Government bowing down under the pressure from the giant neighbour.

They said numerous attempts of interference over the past 2-years by ways of impractical “unsolicited proposals”, to which it is unfeasible to implement within a short period of time, have taken place during this international competitive bidding process, trying to undermine the sanctity of the procurement process. 

It was pointed out that compared with the unsolicited proposals which have high ambiguity, the tendering Projects are of international standard whose feasibility study was funded by the multilateral financial institution, ADB, and contains stringent requirements which could only be met by the best in the industry. 

Considering the prevailing adverse economic conditions of the country, continuing the tendering Project is the only prudent way to ensure energy security, ease the financial burden, and restore the confidence of international investors in bringing FDI to Sri Lanka.  

Sources warned that unreasonable failure of awarding the projects under such political pressure would definitely exert a deterrent signal on the large Chinese companies operating in Sri Lanka who seek fair competition. Despite the same, investors are expecting a fair treatment on what they deserve through a transparent manner, and a well-functioning, and effective investment environment. Whilst such action would definitely kick out Chinese investors and even investors around the world, sources opined. 

They charged that the long-term master plan of energy development is being compromised to appease political pressure and agendas. “While the public is still desperate for cheaper and clean alternative energy sources, the Government seems to be kicking the can further down the road, at a very large cost,” sources alleged.

(ft.lk)

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UAE – SL reaches agreement to strengthen economic & investment relations

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Coinciding with the President’s three-day official visit to the United Arab Emirates (UAE) to attend the World Governments Summit 2025, Sri Lanka and the UAE reached an agreement on Reciprocal Promotion and Protection of Investments to strengthen economic and investment relations between the two countries.

The agreement was signed by Mohamed Bin Hadi Al Hussaini, UAE’s Minister of State for Financial Affairs, and Vijitha Herath, Sri Lanka’s Minister of Foreign Affairs.  

This bilateral agreement establishes a secure legal framework to expand investment opportunities in global markets while ensuring the protection of foreign investments.  

The purpose of this agreement is to facilitate and strengthen foreign investments between the two nations by ensuring investor rights protection, promoting economic cooperation, and establishing comprehensive investment protection mechanisms, dispute resolution frameworks, and policy structures. This agreement will also contribute to strengthening global economic partnerships and creating opportunities for exploring new investment prospects in Sri Lanka.

This agreement underscores the importance of bilateral economic development and financial stability while demonstrating the commitment of both the United Arab Emirates and Sri Lanka to strengthening economic cooperation. It aims to foster trade and business expansion in Sri Lanka while promoting a transparent and stable investment environment.

Furthermore, this agreement also highlights Sri Lanka’s commitment to enhancing Foreign Direct Investment (FDI) and fostering a more attractive investment landscape. By enhancing investor confidence, it is expected to generate new business opportunities and contribute to economic progress.  

Ultimately, this agreement will reinforce the long-term partnership between the UAE and Sri Lanka, facilitating sustainable investments and advancing trade and financial collaborations between the two countries.  

(President’s Media Division)

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Ridiyagama lion cubs named

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The naming of the six newborn lion cubs at the Ridiyagama Safari Park in Ambalantota took place under the patronage of the Zoological Gardens Department Director General R.C.Rajapaksa yesterday (Feb. 12).

These six three-month-old lion cubs were named so that they could be put on public display.The Safari Park had previously asked the public to suggest names for the cubs and six names were selected from around 4,000 suggestions.

Accordingly, the male lion cub was named Megha and the five female lion cubs were named Tara, Aghra, Bhumi, Akira and Elsa.

Three of those who had submitted the names were also present on the occasion and they were presented with gifts.The male lion cub born to lionesses Lara and Yula was named Megha by a student named Uthum Induwara, a student from Badagalle, Galle.

Ahimsa Rukshanee Deraniyagala had suggested the name Tara for the female lion cub born to the same parents.

Nishina Egodagedara had suggested the name Bhumi for the female lion cub born to lion parents Dora  and Wally. The name Aghra had been proposed by Temandi Dehasna and the name Akira had been proposed by Dulisha Paranamana from Panadura and the name Elsa had been proposed by Dilipa Nirmal of Bingiriya.

Ridiyagama Safari Park Warden Hemantha Samarasekera and Veterinarian Nadun Kaluarachchi were also present.

(Pic & news : dailynews.lk)

(Except for the headline, this story, originally published by News1st has not been edited by SLM staff)

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50 countries affected by USAID freeze, says WHO

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Programmes to tackle HIV, polio, mpox and bird flu have been affected by the freeze on tens of billions of dollars of overseas aid from the US, says the head of the World Health Organization (WHO).

US President Donald Trump has taken steps to close the United States Agency for International Development (USAID), arguing that its spending is “totally unexplainable”.

However, WHO chief Dr Tedros Adhanom Ghebreyesus has urged the Trump administration to consider resuming aid funding until other solutions can be found.

HIV treatments and other services have been disrupted in 50 countries, he said at a briefing on Wednesday.

Speaking publicly for the first time about the freeze on US aid funding, at a virtual press conference in Geneva, Dr Tedros said: “There are actions that the US government is taking… which we’re concerned are having a serious impact on global health.”

In particular he pointed to the suspension of PEPFAR, the President’s Emergency Plan for Aids Relief, which he said had halted HIV treatment, testing and prevention services in 50 countries.

He added that a reprieve for life-saving services had not stopped the disruption.

“Clinics are shuttered and health workers have been put on leave,” Dr Tedros said.

Experts in global health have warned of the spread of disease, as well as delays to the development of vaccines and new treatments as a result of the cuts.

Trump has argued that USAID is “incompetent and corrupt”.

He recently announced huge cuts to the agency’s 10,000-strong workforce and the immediate suspension of almost all of its aid programmes.

The agency spends about $40bn (£32bn) – about 0.6% of total US yearly government spending – on humanitarian aid, much of which goes towards health programmes.

The vast majority of USAID money is spent in Asia, sub-Saharan Africa and Europe, where it is primarily used for humanitarian efforts in Ukraine.

Elon Musk, the tech billionaire who is working on the White House’s effort to shrink the size of the federal government, has previously claimed that the aid agency is “a criminal organisation”.

Neither Trump nor Musk have provided clear evidence to support their claims.

As well as the freeze on USAID, President Trump has taken steps to withdraw the United States from the WHO.

Under the Biden administration the US was the largest funder of the UN’s health agency and in 2023 it contributed almost one-fifth of the agency’s budget.

Dr Tedros said Trump’s decision was affecting collaboration between countries on global health threats. He also said the US had reduced its reporting of bird flu cases in humans.

The WHO says it has employed emergency measures similar to those used during the Covid pandemic to fill the gaps where there are shortages – in life-saving antiretroviral medication, for example, which is used to treat people living with HIV.

Meg Doherty, director of global HIV, hepatitis and sexually-transmitted infection (STI) programmes at the WHO, said efforts were being made to co-ordinate the sharing of vital supplies of medicines between countries.

However, she said a better, long-term solution was needed: “We have been seeking support from country to country for sharing, but this is a short-term approach.”

(BBC News)

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