Counsel for CEB argues it was not illegal to deal with US energy group

By Chitra Weerarathne

There was nothing illegal in the deal to hand over 40 percent of shares of the Yugadanavi Power Plant to New Fortress Energy of New York, Romesh de Silva, President’s Counsel told the Supreme Court yesterday.

The President’s Counsel informed the Court that there had been Cabinet approval for the handing over of 40%stake in the Yugadanavi power plant to New Fortress of New York. The Cabinet approval was granted on 05 July 2021. The primary objective was to use natural gas to generate electricity.

The National Energy policy too was to have natural gas and accordingly it was the objective of the Ceylon Electricity Board.

On 17 October, 2020, the Minister of Energy Udaya Gammanpila signed a Gazette to the effect that natural gas could replace other sources of energy.

There had been direct negotiations between government to government to import natural gas to Sri Lanka, he said.

It was wrong to say that there was no competitive bidding process as it was not necessary to have such a process in the present instance as the issue was approved by the Cabinet.

Romesh de Silva appeared for the respondent the Ceylon Electricity Board.

The Secretary to the Treasury had been authorised to sign the agreement and to fulfil an investment transaction Romesh de Silva contended.

The bench comprised Chief Justice Jayantha Jayasuriya, Justice Buwaneka Aluwihare, Justice Priyantha Jayawardena, Justice Vijith K. Malalgoda and Justice L.T.B. Dehideniya.