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Sri Lanka’s latest electricity infrastructure investment signals a significant shift in the country’s energy strategy, but its ultimate success will depend on whether the Government can translate expensive infrastructure commitments into measurable savings, reliable electricity supplies and reduced dependence on imported fossil fuels.

The Cabinet has approved two major electricity transmission and storage projects, awarding both to a joint venture between Ceylex Engineering (Pvt) Ltd and China’s Xingneng Electric Power Construction Co. Ltd. The contracts cover the Sampur–Kappalthurai Transmission Project and the country’s first major utility-scale 100 MW/100 MWh Battery Energy Storage System (BESS) at Kolonnawa.

Although the projects represent an important step towards modernising the national grid, they also raise questions about implementation capacity, financial accountability and the ability of the Ceylon Electricity Board (CEB) to manage an increasingly complex renewable energy network.

The Sampur–Kappalthurai project, financed by the Asian Infrastructure Investment Bank (AIIB), carries a contract value of US$4.15 million, €0.78 million and Rs.1,096.08 million. It involves constructing a new 220(132)/33 kV solar power grid substation at Sampur and expanding the existing Kappalthurai facility to accommodate increasing solar electricity generation in the Eastern Province.

The second project, financed by the Asian Development Bank (ADB), involves installing a 100 MW/100 MWh battery storage facility at Kolonnawa. Its contract value comprises US$1.27 million, €2.61 million and Rs.555.13 million.

Both projects have been assigned a demanding 546-day completion period under turnkey arrangements, placing considerable responsibility on the Ceylex-Xingneng joint venture and the CEB.

The Kolonnawa installation is particularly significant because battery storage could help address one of the most expensive weaknesses in Sri Lanka’s electricity system: the inability to absorb and efficiently distribute fluctuating renewable energy generation.

Solar and wind power production is intermittent. Without adequate storage and grid flexibility, surplus renewable electricity may have to be curtailed, forcing the CEB to depend on conventional thermal generation when demand rises or renewable output declines.

The economic implications are considerable. The supplied estimates place diesel-fired generation costs at approximately Rs.115 per unit, compared with an estimated Rs.35 for battery-supported electricity services. However, the actual savings will depend on battery charging costs, efficiency losses, operating expenses, financing and replacement requirements. These figures should therefore be independently verified before being presented as guaranteed savings.

The technical challenges are equally serious. Installing the battery system at an operational Kolonnawa substation requires careful coordination to prevent interruptions to Colombo's electricity supply. Lithium-ion battery installations also demand sophisticated cooling, fire suppression and monitoring systems to prevent overheating and potential thermal runaway.

Equally important is the Energy Management System, which must communicate effectively with the CEB's National System Control Centre to ensure rapid responses to fluctuations in electricity generation and demand.

Meanwhile, smaller 10 MW battery installations are being introduced at 16 regional substations, including Anuradhapura, Kilinochchi, Vavuniya and Hambantota.

The Government's ambition to achieve 70% renewable electricity by 2030 cannot be realised through generation capacity alone. Transmission infrastructure, storage technology and competent system management are equally essential.

However, the critical test will be transparency over procurement, construction costs, operational performance and actual savings. International development financing does not eliminate the responsibility to protect public resources.

Sri Lanka cannot afford another generation of expensive infrastructure that fails to deliver its promised economic returns. The battery revolution must ultimately be measured not by contract awards or installed capacity, but by lower electricity costs, fewer power disruptions and reduced dependence on costly imported fuel.

The Cabinet of Ministers has approved contracts worth approximately Rs. 3.33 billion, excluding VAT, to rehabilitate and upgrade several road sections damaged by Cyclone Ditwah.

The contractors were selected through the National Competitive Bidding procedure, following an evaluation of the bids received.

The Cabinet approved proposals submitted by the Minister of Transport, Highways and Urban Development to award the contracts to the substantially responsive lowest bidders, based on recommendations from the High-Level Procurement Committees.

The three approved contracts cover the following road sections:

1. Gampola–Nawalapitiya, Ulapane–Pussellawa and Atabage–Ulapane roads

The first contract covers rehabilitation and improvement work on three road sections:

• Gampola–Nawalapitiya Road (AB013), from kilometre 8+500 to 16+300.

• Ulapane–Pussellawa Road (B431), from kilometre 0+000 to 6+440.

• Atabage–Ulapane Road (B490), from kilometre 0+000 to 7+500.

The contract has been valued at Rs. 852.83 million, excluding VAT.

2. Wattegama–Kande Nuwara–Wariyapola Road

The second contract involves the rehabilitation and improvement of a 16.77-kilometre section of the Wattegama–Kande Nuwara–Wariyapola Road (B461), extending from kilometre 11+000 to 27+700.

It also includes improvements to drainage capacity along the section from kilometre 27+700 to 30+800, as well as construction work involving retaining walls.

The contract value is Rs. 1,516.08 million, excluding VAT.

3. Katugastota–Madawala–Bambarella and Wattegama–Kande Nuwara–Wariyapola roads

The third contract covers repairs to damaged locations and areas affected by slope failures along two roads.

These include a 15-kilometre section of the Katugastota–Madawala–Bambarella Road (B205), between kilometre 19 and kilometre 34, and a four-kilometre section of the Wattegama–Kande Nuwara–Wariyapola Road (B461), between kilometre 1 and kilometre 5.

The contract has been valued at Rs. 965.37 million, excluding VAT.

The combined value of the three contracts approved by the Cabinet is approximately Rs. 3.33 billion, excluding VAT.

Sri Lanka’s worsening LPG shortage has exposed a dangerous weakness in the country’s energy security arrangements. The crisis highlights the absence of an effective mechanism to protect consumers when a major private-sector supplier fails to maintain uninterrupted distribution.

The disruption affecting LAUGFS Gas PLC is now testing the Government's ability to regulate essential commodities, protect household consumption and prevent an interruption in industrial activity. With the company reportedly accounting for approximately 20% of the domestic LPG market, its supply difficulties have created consequences extending well beyond its own commercial operations.

The Consumer Affairs Authority's decision to institute legal proceedings against LAUGFS on October 29 represents an important intervention. The company has been accused of failing to maintain continuous supplies and complying with consumer protection requirements. The Colombo Chief Magistrate's Court has summoned the company to appear on November 11.

Trade Minister Wasantha Samarasinghe has reportedly stated that the company failed to follow proper procurement procedures. According to his account, LAUGFS had previously informed the Finance Ministry that a shipment containing 3,800 metric tonnes of LPG would arrive between October 20 and 28. That shipment did not arrive within the promised period. The company subsequently indicated a revised arrival window of November 2–5.

However, prosecuting a company after consumers have already suffered shortages does not constitute an adequate national energy security strategy.

The Government must explain why a supplier responsible for a substantial share of the market could experience prolonged supply difficulties without an effective emergency arrangement being activated earlier.

Litro Gas has increased its distribution to compensate for the shortfall. Reports indicate that the company has released between 90,000 and 100,000 domestic 12.5-kilogram cylinders daily during the intensified distribution period. An additional LPG shipment has also reached the country, providing some relief to the market.

Nevertheless, the increased workload raises questions about the capacity of the state-backed supplier to absorb an extended disruption without creating new shortages or logistical bottlenecks.

The economic consequences are particularly serious for small and medium enterprises. Restaurants, bakeries, food processors, hotels and other commercial establishments depend on uninterrupted LPG supplies. Even a temporary interruption can increase operating costs, reduce production and threaten employment.

For ordinary households, the shortage creates another financial burden. Consumers already struggling with rising living expenses may be forced to spend additional money locating available cylinders or purchasing alternative cooking arrangements.

The proposed introduction of emergency cross-filling arrangements, allowing Litro to refill empty LAUGFS cylinders, deserves urgent technical and regulatory consideration. However, such a measure must address cylinder ownership, safety standards, compatibility, liability and distribution controls before implementation.

There is also an important question concerning the company's financial position. Its reported losses and liabilities exceeding Rs. 41 billion suggest that the present crisis cannot be examined exclusively through the lens of international sanctions.

The Government must establish whether financial weakness, procurement decisions, inadequate reserves or other operational failures contributed to the disruption.

The ownership structure also requires accurate public disclosure. Dhammika Perera's 50% investment in LAUGFS Holdings was completed in September 2025, rather than being a new acquisition arising from the present shortage. The partnership was publicly announced by the company in April 2026.

What matters now is whether the new ownership structure can restore financial stability and guarantee reliable supplies.

The Government should publish a transparent emergency LPG supply plan, disclose reserve requirements and their enforcement, and establish clear accountability for failures.

Sri Lanka cannot afford to treat cooking gas as an ordinary commercial product when millions of households and thousands of businesses depend on it for their daily survival.

In a decisive push against environmental degradation, Sri Lanka’s apex court has intervened to overhaul the regulation of single-use polythene.

The Supreme Court has directed state authorities to submit a detailed progress report by 5 March next year on establishing a statutory framework to impose and administer a government levy on single-use plastic and polythene bags.

The directive follows a Fundamental Rights petition filed by the Centre for Environmental Justice, which brought the matter to the bench comprising Chief Justice Preethi Padman Surasena, Justice Achala Wengappuli, and Justice Gihan Kulatunga.

Senior Counsel Ravindranath Dabare, representing the public interest organisation, informed the court that supermarket chains currently collect surcharges on polythene bags directly into their corporate revenue accounts.

He said that these private collections fail to support ecological conservation or curb plastic consumption.

In response, the Attorney General assured the bench that relevant state bodies are actively formulating a national state-managed levy structure.

The petitioners have urged the judiciary to order the immediate creation of a dedicated public environmental fund to absorb all proceeds generated by the proposed levy.

Under the scheme sought by the petitioners, these funds would be strictly channeled into waste management infrastructure, recycling programmes, and the enforcement of the internationally recognised "polluter pays" principle.

Former Chief Justice Sarath Nanda Silva has accused the government of introducing draconian security laws to suppress political dissent and violate fundamental civil rights.

The former chief justice made these remarks during a media conference held at the Colombo office of United National Party leader Ranil Wickremesinghe on 3 November.

Opposition figures also contend that the Protection of State from Terrorism Bill alongside the Prevention of Organised Crimes Bill will undermine democratic freedoms and trigger severe international sanctions.

Speaking at the press briefing, Prof. G.L. Peiris warned that the country risks losing its European Union GSP Plus trade concessions due to strong condemnation from the United Nations Human Rights Council, Amnesty International, and Human Rights Watch.

The former foreign minister pointed out that the new measures would allow forced confessions obtained under assault to be used as admissible evidence in court proceedings.

He further noted that the proposed law authorises police and armed forces to detain individuals without judicial oversight, calling for international intervention to stall the legislative process.

Meanwhile, the former chief justice pointed out that the military would be empowered to execute arrests and hold suspects for up to 72 hours before presenting them to a magistrate.

He cautioned that armed forces could be deployed without a declared state of emergency, leaving political opponents vulnerable to military overreach under the guise of state protection.

Justice and National Integration Minister Harshana Nanayakkara tabled the controversial anti-terrorism and organised crime bills in parliament on 6 October and 20 October respectively.

The Colombo Magistrate’s Court has ordered the release on bail of Sri Lanka Podujana Peramuna (SLPP) National Organiser and MP Namal Rajapaksa, who was remanded in connection with the controversial Krrish deal.

At an earlier hearing, lawyers representing Rajapaksa requested bail, citing the serious health conditions of both his parents as an exceptional circumstance warranting his release.

The Commission to Investigate Allegations of Bribery or Corruption (CIABOC), however, objected to the application.

After considering submissions from both sides, Colombo Chief Magistrate Asanga S. Bodaragama issued the bail order today.

Rajapaksa was arrested by the Bribery Commission on September 4 and produced before the court. He was subsequently remanded over allegations that he had accepted a bribe of Rs. 70 million to facilitate the allocation of land at Transworks Square in Colombo to Indian company Krrish for a multi-purpose development project.

Despite being granted bail in the Krrish deal case, Rajapaksa will remain in remand custody in connection with a separate case relating to the Airbus bribery scandal.

The Gamani Corea Foundation will host the annual Dr Gamani Corea Memorial Lecture 2026 today (4 November) at the Bandaranaike Centre for International Studies (BCIS) in Colombo 07.

Former Foreign Secretary Ambassador (Retd.) Ravinatha Aryasinha will deliver the address, which begins at 4.30 p.m.

Titled “The Paradoxes of Sri Lanka’s Foreign Policy in the 21st Century”, it will examine the complexities and contradictions shaping the country’s foreign policy and offer a chance to reflect on its evolving role in international affairs.

Aryasinha is Executive Director of the Regional Centre for Strategic Studies.

He is also a Board Member of the Gamani Corea Foundation, BCIS and MARGA.

Who was Gamani Corea

Gamani Corea studied at the University of Ceylon and Corpus Christi College, Cambridge, and earned a DPhil in Economics from Oxford University.

His national career included posts at the Planning Secretariat, the Ministry of Planning and Economic Affairs and the Bank of Ceylon.

He served as Sri Lanka’s Ambassador to the EEC and the Benelux countries in 1973.

Corea's international career began as a member of the expert team that prepared the first United Nations Conference on Trade and Development (UNCTAD I).

He chaired UNCTAD Expert Groups on International Monetary Issues in 1965 and 1969, and was independent Chairman of the UN Cocoa Conference in 1972.

He was also a member, and later Chairman from 1972 to 1974, of the Committee on Development Planning.

In April 1974, he was appointed Secretary-General of UNCTAD, a post he held until December 1984.

After leaving UNCTAD, Corea remained influential internationally, particularly on South-South issues.

He chaired the Board of the South Centre, an intergovernmental organisation of developing countries based in Geneva, from 2002 to 2003.

He also wrote several books, including Taming Commodity Markets, published by Manchester University Press in 1992.

A fire has broken out in a room at a girls’ hostel at the University of Kelaniya this morning (03), reportedly destroying all the belongings of the students staying in the affected room.

No students were inside the room when the fire started, and no injuries have been reported.

Fire engines have been dispatched to the scene to bring the blaze under control.

The cause of the fire has not yet been established.

LAUGFS Gas PLC has announced plans to bring three shipments of liquefied petroleum gas (LPG) to Sri Lanka in November as the company works to restore domestic supplies.

According to a company statement, the shipments are scheduled to arrive at the Hambantota Port during three separate periods: November 12–14, November 15–17 and November 24–28.

However, the company noted that the expected arrival dates are subject to shipping schedules, port operations and the necessary regulatory approvals.

LAUGFS Gas said it is currently coordinating with relevant authorities to secure approval to release LPG stocks imported through its Hambantota terminal into the domestic market.

The company also apologised for the difficulties households and businesses have experienced due to ongoing disruptions in gas supplies.

It attributed the challenges affecting international LPG supply chains to tensions in the Middle East and disruptions to maritime transportation through the Strait of Hormuz.

The company's Hambantota LPG import and export terminal, operated by its subsidiary LAUGFS Terminals Limited, has a storage capacity of 30,000 metric tonnes and was established at an investment of US$65 million.

However, the terminal's ability to supply the local market has been restricted by regulatory conditions associated with its Commercial Hub status under the Board of Investment (BOI) framework.

In response, LAUGFS Gas has sought temporary approval to use the terminal for domestic LPG supplies for a period of three months.

The company is also working with the BOI, the Ministry of Finance, Sri Lanka Customs and the Department of Import and Export Control to establish the regulatory and operational arrangements required to operate the terminal outside its existing Commercial Hub status, subject to applicable taxes and duties.

According to LAUGFS Gas, the BOI Chairman has confirmed that the Treasury Secretary has been asked to facilitate the necessary approvals within one week, following instructions from the President. However, the company said the approvals had not been received at the time of its announcement.

Separately, LAUGFS Gas has called for a new tender to secure direct LPG supplies to the Port of Colombo from January 2027 as an additional measure to strengthen supply security.

The company also clarified that neither LAUGFS Gas PLC nor LAUGFS Terminals Limited is designated under sanctions imposed by the United States Office of Foreign Assets Control (OFAC).

LAUGFS Gas said it remains committed to restoring domestic LPG supplies and improving the reliability of its long-term supply arrangements, while thanking customers and business partners for their patience and understanding.

A proposal calling for the appointment of a Parliamentary Select Committee (PSC) to conduct a comprehensive study into the 1983 Black July tragedy and its impact has been submitted to Parliament.

The proposal was presented by National People's Power (NPP) MP Thanura Dissanayake and seconded by fellow NPP MP Bhagya Sri Herath.

The proposed committee is expected to examine the events surrounding Black July and submit its findings to Parliament, together with proposals and recommendations aimed at promoting national reconciliation and providing relief to those affected by the tragedy.

Six TEC members reportedly refuse to endorse controversial price increase as allegations of undue interference rock the Terminal 2 project. President urged to intervene immediately.

A potentially explosive procurement scandal is emerging over the Bandaranaike International Airport Terminal 2 project, with serious allegations that the Secretary of the Ministry responsible for the airport is actively intervening in negotiations in favour of Japanese contractor Taisei Corporation, which is reportedly demanding an astonishing USD 190 million above its original tender price.

The most disturbing allegation is not merely the extraordinary price increase, but the conduct of the very senior public official entrusted with protecting the country's interests.

According to concerns raised over the negotiation process, the Ministry Secretary has allegedly been advocating Taisei's commercial position, facilitating its participation in discussions involving internal government matters and attempting to push through a price increase despite resistance from technical evaluators.

Has the official entrusted with safeguarding public money effectively become an advocate for the contractor seeking an additional USD 190 million?

The seriousness of this conduct demands an immediate investigation.

Six technical evaluators reportedly resist - but is the Secretary pushing ahead?

In an extraordinary development, six members of the Technical Evaluation Committee (TEC) are alleged to have refused to endorse the proposed price increase.

Instead of allowing the independent technical process to reach its proper conclusion, the Secretary is accused of attempting to override the resistance.

If confirmed, this would represent a deeply troubling breakdown of procurement governance.

Technical evaluation committees are not ceremonial bodies established to rubber-stamp decisions already made by powerful officials. Their responsibility is to protect the State through independent technical and commercial assessments.

Any attempt to pressure committee members into accepting an unjustified increase would warrant urgent investigation and appropriate disciplinary action.

A USD 250 million cheaper bidder eliminated - now another USD 190 million demanded?

The tender involved Taisei Corporation and the Sojitz–Larsen & Toubro consortium.

Sojitz–L&T was declared technically non-responsive, leaving Taisei as the sole responsive bidder, with JICA subsequently concurring in the selection process.

However, the competing bid was reportedly approximately USD 250 million cheaper than Taisei's offer.

Now, having emerged as the sole technically responsive bidder, Taisei is alleged to be seeking a further USD 190 million.

If both reported figures are confirmed, the combined difference between the competing offer and the proposed revised Taisei price would reach an extraordinary USD 440 million.

This is not evidence that the lower bid was technically acceptable, but it raises an unavoidable question: Has the procurement process genuinely secured the best value for Sri Lanka?

Is the Middle East conflict being used as an excuse?

Taisei reportedly attributes the additional demand to construction-cost escalation arising from the Middle East conflict.

While geopolitical instability can increase freight, energy, insurance and material costs, such increases must be supported by independently verified cost calculations.

Concerns have also been raised that Taisei's original price was already inflated by more than 30%, while the overall cost impact of the conflict would be considerably lower than the additional amount now sought. These claims require independent verification.

Sri Lanka's procurement framework places strict controls on bid modifications and negotiations. A contractor's commercial demands cannot simply override the principles of competition, transparency and value for money.

The urgency of completing Terminal 2 cannot become a weapon for extracting an unjustifiable premium from the Sri Lankan taxpayer.

President Dissanayake: This is the real test of your anti-corruption promise

President Anura Kumara Dissanayake's Government was elected on a powerful commitment to end corruption, political patronage and the misuse of public funds.

Yet the present controversy raises the disturbing possibility that, although governments change, the same questionable procurement practices and networks of influence may survive.

The President must now intervene decisively.

The reported USD 190 million increase should be suspended pending an independent review. The TEC members' objections must be examined, the Ministry Secretary's alleged interference investigated, and the competing bid evaluation and negotiation records scrutinised.

The Government should also urgently assess, in consultation with JICA, whether a properly structured rebidding process could restore competition and secure substantial savings. Even an additional three months, if achievable, could be a small price to pay to protect hundreds of millions of dollars.

This is not about delaying a vital national project or undermining Japan's longstanding support for Sri Lanka. It is about ensuring that the airport is built at a fair price, through a process free from improper influence.

USD 190 million is enough to fund major additional national infrastructure. It is not money Sri Lanka can afford to surrender through questionable negotiations.

The allegations against the Ministry Secretary and the reported TEC objections must be investigated fairly, with all parties given an opportunity to respond. But waiting until an inflated contract is signed would defeat the purpose of oversight.

Mr. President, stop the questionable increase. Protect the technical evaluators. Investigate the alleged interference. Restore procurement integrity. Save the people's money.

Your Government promised to fight corruption. This is an opportunity to prove it.

The entire country is watching.

The Colombo High Court has ordered the removal of Daisy Forrest, the grandmother of Yoshitha Rajapaksa, from the money laundering case filed against both of them under the Prevention of Money Laundering Act.

The order was issued after the court considered submissions indicating that Forrest was not in a mental condition suitable to stand trial.

Accordingly, the court ordered that she be released from the proceedings in the case.

The case against Yoshitha Rajapaksa will continue separately.