<ul><li>JICA suspended project in 2022</li><li>Japan plans post-debt restructuring renegotiations</li></ul>The Bandaranaike International Airport (BIA) is in urgent need of $ 400 million for crucial gap financing to complete the construction of its Terminal II, The Sunday Morning learns.Terminal II comprises a substructure and a superstructure.&nbsp;It is learnt that the substructure of the project is currently being constructed by Access Engineering and is due to be completed by November.&nbsp;Speaking to The Sunday Morning, Airport and Aviation Services (Sri Lanka) (AASL) Chairman Athula Galketiya said that Access had begun construction on the remainder of the substructure (Main Terminal Building, Passenger Bridge No.2, and Passenger Bridge No.3) on Thursday (25), with plans to complete it by November.“This was initially being funded by the Japan International Cooperation Agency (JICA). However, after they suspended the project in 2022 until debt restructuring was finalised, we were left with a partly-constructed substructure. The substructure comprises the foundation up to the ground level of the airport.“Since this is only partly completed, there is a safety problem. It is not technically sound for the building and we are facing operational issues. Therefore, we decided, with the Japanese consultant, to float a tender for the completion of the substructure,” said Galketiya.&nbsp;According to Galketiya, the local bidding process had resulted in the tender being awarded to Access for Rs. 3.5 billion, funded by the AASL.&nbsp;He further said that although Japan had reassured that JICA would recommence financing the project once debt restructuring was completed, an issue of gap financing had arisen.&nbsp;“As construction costs have gone up and payments to the previous contractor have increased due to stoppage, we need gap financing. We have not ascertained the exact amount yet but it will be around $ 400 million. If JICA gives its word on that too, it will handle it, but if it doesn’t provide gap financing, we will have to phase out the project.&nbsp;“Regardless, these negotiations will have to happen after the debt restructuring process is completed. In the meantime, we are ready with new estimates and a plan for the phasing out, if necessary,” he said.&nbsp;Prior to the suspension, construction was being handled by a Japanese contractor and it is learnt that the Cabinet has recently approved the contractor’s final claim for the work that had been done so far. This amount is due to be paid with JICA funds.&nbsp;Meanwhile, during Prime Minister Dinesh Gunawardena’s visit to China last month, it was reported that Beijing had expressed interest in developing the BIA.&nbsp;It was also reported last year that the China Harbour Engineering Company (CHEC) had sent a proposal to the Ministry of Ports, Shipping, and Aviation regarding the construction of the new passenger terminal at the BIA.&nbsp;However, Galketiya said that the AASL was unaware of such a proposal.“JICA is assuring us that it will provide the balance amount of the loan once the debt restructuring is completed and hence, a new Japanese contractor will be selected afterwards. Both the Japanese Finance Minister and the JICA President have visited the project site. We believe that the Japanese Foreign Minister, who is scheduled to visit the country next week, will also visit it.”&nbsp;The construction of the second terminal at the BIA began in 2020 with JICA funding but has been stalled since 2022 as a result of Sri Lanka’s default due to the economic crash.

New BIA terminal: $ 400 m gap financing needed for completion

<ul><li>CEB evaluates draft&nbsp;</li><li>Power Ministry plans to export RE</li></ul>Sri Lanka’s State-run Ceylon Electricity Board (CEB) has received a draft Memorandum of Understanding (MoU) from Power Grid Corporation of India to connect the electricity grids of the two countries, The Sunday Morning learns.It is learnt that the CEB is currently examining the MoU, expecting to sign it as soon as it is finalised.&nbsp;&nbsp;&nbsp;Last year, the Government announced its decision to proceed with the India-Sri Lanka grid connectivity project, with Power and Energy Minister Kanchana Wijesekera assuring its implementation by 2030.&nbsp;A team from the CEB visited India for a technical evaluation of the project and the two countries have agreed on the option of using a submarine cable between the countries to connect the grid.When contacted, a senior management official of the CEB, who wished to remain anonymous, told The Sunday Morning that the MoU was currently being thoroughly examined by the board’s experts.&nbsp;“Soon after we finalise the MoU we will be able to sign it,” the official affirmed.A pre-feasibility study in 2002, aided by the United States Agency for International Development (USAID), explored an electricity grid interconnection between India and Sri Lanka. Subsequent efforts in 2006 and 2010 involved updates and a joint feasibility study between the CEB and Power Grid.&nbsp;Initial findings raised doubts about the project’s economic viability due to factors such as submarine cable costs and further economic and financial assessments are pending.&nbsp;The CEB plans to implement a 500 MW High-Voltage Direct Current (HVDC) system by 2034, at an estimated project cost of $ 18,883 million.When contacted, Power and Energy Ministry Secretary Dr. Sulakshana Jayawardena confirmed that the ministry had received an MoU from India last week for the grid connectivity project and said that the CEB was currently evaluating it.“We have received a draft MoU because this matter had come up for discussion during the last meeting of power secretaries. It has been two decades since the idea of an India-Sri Lanka interconnection was first on the table. This is another means of enhancing energy security and opens up the possibility of accessing an additional energy supply from India,” he explained.“This also presents an opportunity to export significant Renewable Energy (RE), as we have considerable potential in renewables, including offshore wind. However, our development in this area has been constrained by CEB requirements. By paving the way for a regional electricity market, involving countries like Nepal and Bhutan, we can expand our access to energy supply,” he added.“We received the draft MoU last week. The CEB will provide its suggestions and recommendations,&nbsp; and we will need to review them thoroughly,” he concluded.

Grid connection project: SL receives draft MoU from India  

The proposed oil pipeline from India to Sri Lanka reportedly includes a provision requiring a minimum purchase commitment, currently under review by Sri Lankan officials, The Sunday Morning learns.&nbsp;&nbsp;Additionally, it is understood that if Sri Lanka is unable to meet the specified purchase volume outlined in the clause, the Government will be obligated to make payments.Initially, the proposed multi-product oil pipeline between India and Sri Lanka aims to establish a network linking Nagapattinam in India to the Trincomalee Oil Tank Farm and Colombo in Sri Lanka.&nbsp;Discussions regarding the pipeline began in February after talks between Power and Energy Minister Kanchana Wijesekera and officials from the Indian Oil Corporation (IOC) during the India Energy Week in Goa.&nbsp;During these discussions, both parties explored the feasibility and potential benefits of the project.The primary objective of the proposed pipeline is to bolster Sri Lanka’s energy security by offering a more dependable and efficient method of importing petroleum products.&nbsp;The existing collaboration between Sri Lanka’s Ceylon Petroleum Storage Terminals Ltd. (CPSTL) and Lanka IOC (LIOC) in Trincomalee laid the groundwork for further joint ventures and investments between the two nations.When approached by The Sunday Morning, Power and Energy Ministry Secretary Dr. Sulakshana Jayawardena confirmed receipt of a proposal from India for an oil pipeline between the two nations.“The Indian proposal suggests a pipeline route from India to Muthurajawela and Trincomalee. We proposed it to function as both an import and export route. We expressed concern over the requirement for minimum purchasing, especially given our plans for a refinery and an oil export mechanism via Muthurajawela and Kolonnawa. The proposal stipulates that if a certain purchase volume isn’t met, we would incur payment obligations,” he explained.“There are several key players involved, including the Ceylon Petroleum Corporation, LIOC, RM Parks Global, United Petroleum, and China Petroleum and Chemical Corporation (Sinopec). They will procure and import their requirements using their own mechanisms. We cannot mandate them to source from India,” he added.When asked about the minimum purchasing clause, Dr. Jayawardena said that the proposal included the requirement for Sri Lanka to make a minimum purchase from India, and in case of failure, Sri Lanka would have to pay.Dr. Jayawardena also highlighted the potential for enhanced energy security through the pipeline. “This offers an alternative means to meet petroleum product demands. However, it’s important to note that we are still in the early stages. No agreements or proposals have been finalised,” he clarified.In response to further inquiries, Dr. Jayawardena noted that the IOC was investing in the pipeline project.

Indo-Lanka oil pipeline: Govt. weighs minimum purchasing clause

<ul><li>12 m packets distributed to hospitals last month</li><li>SPC claims no health risks&nbsp;</li><li>GMP certification pending for nine years</li></ul>The widely-used local oral rehydration solution ‘Jeevani,’ manufactured by the State Pharmaceuticals Corporation (SPC), is yet to receive the certification for Good Manufacturing Practices (GMP), it is learnt.In a letter addressed to the Ministry of Health, College of Medical Laboratory Science President Ravi Kumudesh raised concerns about the production of ‘Jeevani’ by the SPC without a GMP certificate for nine years.Emphasising on the gravity of the situation, particularly in light of concerns regarding medicine quality, he said: “In an environment where there is a question about the quality of medicines, it is concerning that even the legalised pharmaceutical corporation, which acts as a State supplier, does not follow prescribed standards when supplying medicines to the Ministry of Health.”Kumudesh noted that despite reporting the issue to the National Medicines Regulatory Authority (NMRA), the SPC had not been instructed to cease operations.The letter revealed that 12 million ‘Jeevani’ packets, valued at approximately Rs. 6 million, had been purchased last month and distributed to hospitals.Moreover, Kumudesh expressed suspicion regarding the Health Ministry’s request for a Waiver of Registration (WOR) for the ‘Jeevani’ packets.&nbsp;He also questioned the relevance of a WOR for a locally-manufactured product: “How WOR permission is relevant for a locally-manufactured product is the big dilemma. They are trying to cover up not securing a GMP certificate with a WOR certificate.”The letter called for investigations into why the NMRA had permitted the purchase of ‘Jeevani’ from a factory lacking quality product assurance.Additionally, Kumudesh urged inquiries into why the authorities had not conducted proper condition checks on the factory for years.According to the ‘Guideline on GMP’ issued by the NMRA in 2019, GMP is a vital aspect of quality management, ensuring that products are consistently produced and controlled in accordance with the appropriate quality standards for their intended use and as required by regulatory authorisations.GMP encompasses both production and quality control, aiming to manage and minimise the inherent risks in pharmaceutical manufacturing to guarantee the quality, safety, and efficacy of products.&nbsp;Key principles of GMP include clearly defining manufacturing processes, conducting systematic risk assessments, and maintaining qualified personnel and adequate facilities, equipment, materials, and procedures, according to the NMRA.Additionally, GMP emphasises thorough documentation, including records of manufacturing activities and distribution, to ensure traceability and accountability. Proper storage, transportation, and recall systems further contribute to product quality and safety. Furthermore, GMP mandates thorough investigation and resolution of complaints about marketed products to prevent recurrence of quality issues, the guideline states.When contacted by The Sunday Morning, SPC General Manager Dinusha Dasanayake stated that ‘Jeevani’ had been manufactured and supplied to the market over the years under an open general licence.“We’ve sent in the documents to the NMRA for a GMP certificate. The NMRA has given us provisional approval to continue our production; it’s just the GMP that is pending,” he explained.Dasanayake said that there were no risks to consumer health, citing the presence of a quality assurance laboratory and a plant at the SPC.“Quality is assured from both of these and it is only then that supplies are sent to the market,” he affirmed.

Health sector: ‘Jeevani’ yet to receive GMP certification

The previously-abandoned Ruwanpura Expressway Project (REP) has been recommenced, with the Road Development Authority (RDA) resuming land acquisition, The Sunday Morning learns.It is reliably learnt that the RDA is looking for an investor to recommence REP construction work.The proposed Ruwanpura Expressway connects the Western Province with the Sabaragamuwa Province, spanning from Kahathuduwa to Pelmadulla to Ratnapura.&nbsp;Divided into three phases, Phase I covers Kahathuduwa to Ingiriya, Phase II extends from Ingiriya to Ratnapura, and Phase III runs from Ratnapura to Pelmadulla.&nbsp;Despite initial plans for multiple contractors, the Cabinet removed the Chinese contractor from Phase I due to financial concerns and awarded the project to Maga Engineering Ltd.&nbsp;However, the project was later abandoned by the contractors, citing financial difficulties.&nbsp;The overall cost of the Ruwanpura Expressway was initially estimated at Rs. 276.3 billion.Speaking to The Sunday Morning, RDA Director General S.M.P. Suriyabandara stated: “The RDA was instructed to recommence the land acquisition for the Ruwanpura Expressway. We are trying a different model this time and looking for a new investor.“Other than Ruwanpura, the construction work of the Central Expressway Phase III was underway, but the construction of the Elevated Highway Project from Rajagiriya to Athurugiriya has been on hold due to ongoing court cases,” he added.

Ruwanpura Expressway Project: RDA resumes land acquisition

<ul><li>Definition of violence to be expanded</li></ul>The Ministry of Women, Child Affairs, and Social Empowerment plans to repeal the current Prevention of Domestic Violence Act in order to introduce a new act which will address shortcomings in the existing law.&nbsp;Women, Child Affairs, and Social Empowerment Ministry Legal Officer Kumudu Perera told The Sunday Morning that it had been decided to repeal the existing Prevention of Domestic Violence Act No.34 of 2005 and to bring in a new act with amendments to address gaps in the former.&nbsp;“The changes are to improve the existing law in a number of ways; for example, by including provisions to allow for any party interested in the victim to come forward about domestic violence,” said Perera.“Other changes will allow for stamp fees to be waived so as to allow victims to go to court without paying a fee and will expand the definition of violence to include those such as economic and psychological violence as well.”“The new law will only provide counselling as a pathway based on the consent of the parties involved,” she added.&nbsp;Perera said that they had decided to bring in a new act to reduce the space for confusion regarding the law (which would have arisen if the old act remained with new amendments), as this was a law that applied to the domestic sphere.&nbsp;“We hope that having a new act will result in a better implementation of the law. This was the President’s request as well,” she added.&nbsp;According to Perera, Cabinet approval has already been received to draft a new act.&nbsp;These changes follow the Women’s Empowerment Bill which was gazetted on 7 March, under which a Women’s Commission is to be established, and the Gender Equality Bill which was gazetted on 17 April.

Domestic violence prevention: New laws to be gazetted 

The number of out-of-stock pharmaceuticals in Sri Lanka has dropped below 100 for the first time in years, The Sunday Morning learns.Upon inquiry, Government Medical Officers’ Association (GMOA) Media Spokesman Dr. Chamil Wijesinghe told The Sunday Morning that despite pharmaceutical shortages persisting, the Medical Supplies Division (MSD) currently listed only 58 out-of-stock medicines.Dr. Wijesinghe elaborated that the majority of these pharmaceuticals were high-end medications not in common use. Despite this, he assured that this was being managed with alternatives, indicating that the situation was relatively stable at present.Furthermore, he highlighted challenges faced by the National Medicines Regulatory Authority (NMRA) in granting the necessary approvals due to staffing and facility shortages.&nbsp;He also pointed out unresolved issues concerning maintenance agreements for medical technologies such as MRI machines.Dr. Wijesinghe noted that while the situation was improving, it had not been entirely resolved.&nbsp;Nevertheless, he emphasised that such progress marked a positive development in addressing pharmaceutical shortages in the country.In February, over 150 essential medicines were unavailable at the MSD, resulting in an adverse impact on hospitals and the treatment of patients.

Pharmaceutical shortages: Number of out-of-stock meds falls below 100

The proposed 500 MW wind power project initiated by India’s Adani is an optional Renewable Energy (RE) resource that is not included in its RE plan, the Ceylon Electricity Board (CEB) clarified yesterday (27).When contacted by The Sunday Morning, a senior CEB official, who wished to remain anonymous, said that Adani’s RE investment was an unsolicited proposal and therefore, if it materialised, the board would be ready to absorb the RE but that the board’s RE plan would not be affected if the Adani investment did not work out.“It is good if it comes and we will take it, but we are going ahead with our plans. Adani’s proposal is unsolicited and it is not part of our plan,” the official clarified.As reliably learnt by The Sunday Morning, there has been no development in Adani’s RE investment as both India and Sri Lanka are still in the price negotiation process.The CEB issued a Request for Proposal (RFP) to Adani in May and at the time the board indicated that the determination of energy purchasing prices would follow upon receiving a response from Adani regarding the RFP.Adani’s proposed 500 MW wind and solar project stands as the sole large-scale investment currently undergoing processing by the Sri Lankan Government.&nbsp;Adani Green Energy Ltd. (AGEL) is spearheading this investment, valued at $ 442 million and aimed at establishing 500 MW of renewable energy plants, encompassing both wind and solar technologies in Mannar and Pooneryn.Nevertheless, Power and Energy Ministry Secretary Dr. Sulakshana Jayawardena noted that the Adani proposal was a single-source project which was acceptable under the current law and that it was one of the most important projects, as a local developer would never be able to raise sufficient investment for 500 MW, which would possibly be worth around $ 600 million.&nbsp;“The only issue is with the price and hopefully they can negotiate and come to an amicable solution regarding the tariff,” he stressed.

500 MW wind power project: Adani project not part of CEB RE plan

<ul><li>Chief Valuer not reconsidering&nbsp;</li><li>Japanese investor refuses to proceed</li></ul>The Government Valuation Department is not reconsidering its original valuation of the Visumpaya High-end Boutique Hotel Project, which has resulted in the suspension of the project with the Japanese investor refusing to move forward, The Sunday Morning learns.&nbsp;A high-level official at the Urban Development Authority (UDA) told The Sunday Morning that since the Chief Valuer was not reconsidering the original valuation of Visumpaya, the project was at a standstill as the Japanese investor did not find the figure feasible.&nbsp;In January, the Memorandum of Understanding (MoU) between the Japanese investor of the project Azotels Hospitality Ltd., Hunas Holdings (the local partner), and the UDA, which was initially valid until 7 January, was extended by three months.&nbsp;The extension was granted due to a disparity in the valuations presented by the Government and the investor, with some reports noting that the Government’s appraisal of the project was twice as high as the valuation conducted by the latter.&nbsp;The revival of the old colonial mansion, which housed former State officials and dignitaries, into a boutique hotel is part of the ‘New Colombo Heritage City Plan’ proposed by the Urban Development and Housing Ministry in order to attract foreign investments into the country on the heels of the foreign exchange crisis.&nbsp;The plan aims to lease out historical buildings for development under Public-Private Partnerships (PPPs).&nbsp;Speaking to The Sunday Morning, a high-level official at the Ministry of Urban Development and Housing said that 13 projects in Colombo had been earmarked for development, of which four were to be implemented as soon as possible.&nbsp;“A private consultant is developing the proposals at the moment while the same consultant is also developing a proposal on tourism in the eastern region.”Attempts to contact Urban Development and Housing Minister Prasanna Ranatunga regarding the matter proved futile.

New BIA terminal: $ 400 m gap financing needed for completio ...

Grid connection project: SL receives draft MoU from India

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500 MW wind power project: Adani project not part of CEB RE plan

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Visumpaya boutique hotel: Further delays due to original valuation

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Grid connection project: SL receives draft MoU from India

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Indo-Lanka oil pipeline: Govt. weighs minimum purchasing clause

Indo-Lanka oil pipeline: Govt. ...

Health sector: ‘Jeevani’ yet to receive GMP certification

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Ruwanpura Expressway Project: RDA resumes land acquisition

Ruwanpura Expressway Project: ...

Domestic violence prevention: New laws to be gazetted

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Pharmaceutical shortages: Number of out-of-stock meds falls below 100

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500 MW wind power project: Adani project not part of CEB RE plan

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