News
Coal prices soar, aggravating CEB woes
By Rathindra Kuruwita
The recovery of coal prices in the world market coupled with the decline in the value of the rupee would result in the cost of electricity generation increasing rapidly in Sri Lanka with the Norochcholai coal-fired power plants accounting for the bulk of power produced in the country, energy experts said yesterday.
They said the recovery of coal prices meant that calculations made by a number of energy sector decision-makers on the cost of electricity in the future would be incorrect.
The price of coal, which was trading at around USD 50 per tonne late last year, has rebounded.
Independent energy expert, Vidura Ralapanawe said that coal cost had risen to USD 90. With freight, insurance, VAT and lightering, the total cost of coal received by the plant is USD 120 per ton.”
He added that at the current exchange rate, when the rupee was hovering around Rs. 200 per USD it would result in cost of the fuel rising by about Rs 24 per kg.
“It is estimated that around 380 grams of coal is needed to produce a unit of electricity. This gives the coal cost per generation at Rs 9.12. When we add the diesel cost for the plant, the fuel cost per unit alone comes to about Rs. 9.90 per unit. Adding other costs of the plant (except financing) brings the unit cost to around 14.50.”
Ralapanawe said that a number of CEB and Ministry officials had claimed that they could produce a unit of electricity for about Rs. 7 to 8. They had done so by keeping the exchange rate at a constant, sometimes at around Rs. 150 per USD and setting the coal prices at around USD 50 per ton, which was the price when coal hit an all-time low last year.
Engineer Parakrama Jayasinghe, former president of Bioenergy Association of Sri Lanka, told The Island, “Even if we assume that the price of coal will remain stable, we have to think about the price fluctuations of the rupee.
“For years the CEB has been lying to the public about the real price of a unit of electricity produced using coal. They tell the people that the unit cost is about Rs. 8 but the documents they give to PUCSL show that the actual cost is around Rs. 18 per unit. They have been telling people that the unit of electricity from a new coal power plant will be about Rs 7-9 but they have calculated that keeping the exchange rate at Rs.150 per dollar. Now it’s at Rs. 200 and it’s unrealistic to expect the rate to return to Rs. 150 per USD.”
Maithri Gunaratne, former Chairman of Lanka Coal said that coal prices had been extremely low in 2020 and that it was not wise to make long term predictions with those numbers.
“We also have to factor in corruption too unfortunately.”
President of the CEB Engineering Union Saumya Kumarawadu however said that the rebounding of coal prices shouldn’t be too much of a problem and that coal was still the cheapest option they had.
Attempts to contact Minister of Power Dullas Alahapperuma failed.
The U.S. Embassy in Colombo welcomed the U.S. Sports Envoys to Sri Lanka, former National Basketball Association (NBA) and Women’s National Basketball Association (WNBA) players Stephen Howard and Astou Ndiaye, from June 8 through 14.
The Public Diplomacy section of the U.S. Embassy said that it would launch a weeklong basketball program intended to harness the unifying power of sports, made possible through collaboration with Foundation of Goodness and IImpact Hoop Lab.
While in Sri Lanka, Howard and Ndiaye, both retired professional basketball players, will conduct a weeklong program, Hoops for Hope: Bridging Borders through Basketball. The Sports Envoys will lead basketball clinics and exhibition matches and engage in leadership sessions in Colombo and Southern Province for youth aged 14-18 from Northern, Uva, Eastern and Western Provinces, offering skills and leadership training both on and off the court. The U.S. Envoys will also share their expertise with the Sri Lanka Basketball Federation, national coaches, and players, furthering the development of basketball in the country. Beyond the clinics, they will collaborate with Sri Lankan schoolchildren to take part in a community service project in the Colombo area.
“We are so proud to welcome Stephen and Astou as our Sports Envoys to Sri Lanka, to build on the strong people-to-people connections between the United States and Sri Lanka,” said U.S. Ambassador Julie Chung. “The lessons that will be shared by our Sports Envoys – communication, teamwork, resilience, inclusion, and conflict resolution – are essential for leadership development, community building, equality, and peace. The U.S. Sports Envoy program is a testament to our belief that sports can be a powerful tool in promoting peace and unity.”
SJB Colombo District MP Mujibur Rahuman in parliament demanded to know from the government the reasons for CEB suspending the leave of all its employees until further notice from Thursday.
MP Rahuman said that the CEB has got an acting General Manager anew and the latter yesterday morning issued a circular suspending leave of all CEB employees with immediate effect until further notice.
“We demand that Minister Kanchana Wijesekera should explain this to the House. This circular was issued while this debate on the new Electricity Amendment Bill was pending. There are many who oppose this Bill. The Minister must tell parliament the reason for the urge to cancel the leave of CEB employees,” the MP said.However, Speaker Mahinda Yapa Abeywardena prevented Minister Wijesekera responding to the query and said that the matter raised by MP Rahuman was not relevant.
The Chartered Institute of Personnel Management (CIPM) successfully concluded the 8th Annual CIPM Symposium, which took place on 31st May 2024. Themed “Nurturing the Human Element—Redefining HRM in a Rapidly Changing World,” the symposium underscored the pivotal role of human resource management (HRM) in today’s dynamic global landscape. Since its inception in 1959, CIPM has been dedicated to advancing the HR profession through education, professional development, and advocacy, solidifying its position as Sri Lanka’s leading professional body for HRM.
Ken Vijayakumar, the President of the CIPM, graced the occasion as the chief guest. The symposium commenced with the welcome address by the Chairperson, Prof. Arosha Adikaram, followed by the Web Launch of the Symposium Proceedings and Abstract Book by the CIPM President. The event featured distinguished addresses, including a speech by Chief Guest Ken Vijayakumar, President of CIPM, and an address by Guest of Honor Shakthi Ranatunga, Chief Operating Officer of MAS Holdings Pvt. Ltd., Sri Lanka.
The symposium also featured an inspiring keynote address by Prof. Mario Fernando, Professor of Management and Director of the Centre for Cross Cultural Management (CCCM) at the University of Wollongong, Australia.
Vote of Thanks of the inauguration session was delivered by Dr. Dillanjani Weeratunga, Symposium Co-chair.
The symposium served as a comprehensive platform for researchers to present their findings across a wide range of critical topics in HRM. These included Cultural Diversity and Inclusion, Talent Development and Retention, Ethical Leadership and Corporate Social Responsibility, Adapting to Technological Advancements, Mental Health and Well-being at Work, Global Workforce Challenges, Employee Empowerment, and Reskilling and Upskilling.
The plenary session was led by Prof. Wasantha Rajapakse. Certificates were awarded to the best paper presenters during the valedictory session, followed by a vote of thanks delivered by Kamani Perera, Manager of Research and Development.
The annual symposium of CIPM was a truly inclusive event, attracting a diverse audience that spanned undergraduates, graduates, working professionals, research scholars and lecturers. This widespread interest highlights the symposium’s significance in the field of HRM, offering a unique opportunity for everyone to network and learn from scholarly brains.The CIPM International Research Symposium was sponsored by Hambantota International Port, Sri Lanka Institute of Information Technology (SLIIT), E B Creasy & Co. PLC, and Print Xcel Company.
US sports envoys to Lanka to champion youth development
Rahuman questions sudden cancellation of leave of CEB employees
