Nuclear talks between US-Iran could help ease Sri Lankan oil imports
Recently concluded nuclear talks between the United States and the Republic of Iran would be beneficial to Sri Lanka if sanctions on Iran were lifted so that Sri Lanka will be able to import cheap Iranian crude oil as before thus saving a considerable amount of foreign exchange, a senior minister said.
“We are also considering the possibility of refurbishing the Trincomalee oil tanks which have been idling for a long time,” noted Power and Energy Minister Champika Ranawaka delivering the keynote address at a “Forum on Energy Sector Development Strategies” at the Ceylon Chamber of Commerce last week.
He said it had been identified that Sri Lanka has some gas and oil deposits in the Mannar basin. Two wells said to contain gas were being exploited further so that the precious natural resource could be used for the benefit of upstream petroleum development project that had commenced.
He said during the past decade local entrepreneurs and industrialists were not free to operate and take positive actions to develop the country. “We had a bubble economy supported by a few favoured individuals and cronies in the previous regime. I left that regime having realised the government was going towards a self destroying path, and to speak against corruption, family rule and tyranny. I have been successful in mobilising the people of this country against a wasteful regime, and bring about a change in government.”
Referring to exports, the minister said that 50 per cent of Sri Lanka’s export income had to be spent on fossil fuel which was equivalent to US$5 billion annually. This should not be continued and “we need to find alternate strategies to meet our energy demands” sustainably and economically,” he said.
The minister cautioned that global warming due to excessive emission of Carbon Dioxide will have severe repercussions on every nation if timely measures were not taken to address the issue. He said according to reports the global Gross Domestic Product (GDP) will shrink by 2 per cent in 2015 owing to excessive carbon dioxide emission and climatic change.
The Asia Development Bank states that Sri Lanka’s economy will shrink by 1.6 per cent during this period. The minister said according to a recent calculation two trillion tons of carbon dioxide waste from fossil generation were dumped into the atmosphere during the past 250 years and one trillion tons was dumped during the last 35 years. But as predicted if energy usage doubles another two trillion tons will be dumped before 2050 which will result in many climate changes issues with grave repercussion for everybody.
“Therefore it is our duty to be extra careful in preserving our natural environment while achieving economic growth. The Ministry of Power and Energy has developed a comprehensive Sri Lanka Energy Sector Plan so as to minimise our dependence on importing fossil fuel for energy generation and to offer our citizens an affordable and cleaner green energy in the future,” the minister said.
He noted that Sri Lanka was now a middle income country with a per capita income of $1000-4000 and moving into the upper middle income country with a per capita income of $4000-8000. “This was the first time that the entire energy sector institutions including power, renewable energy, petroleum exploration distribution and atomic energy as well, have joined under one roof. Our aim is to develop the entire energy sector institutions into a collective one.” Countries such as South Korea, Singapore, Japan and Taiwan which developed in the past few decades had no natural resources of their own but sheer determination of the leaders and a collective approach of the people to become successful.
Referring to oil transmission from Colombo harbour to Kolonnawa storage tanks, he said most pipe lines were covered by unauthorised structures such as houses and commercial buildings. “We have started the refurbishment process to strengthen two pipe lines from the Colombo tunnel to Kolonnawa using our own indigenous resources and expertise as much as possible,” he said. Chairman of the Ceylon Chamber of Commerce Suresh Shah, Secretary – Ministry of Power and Energy Dr. Suren Batagoda, Chairman of the Public Utilities Commission Damith Kumarasinghe and Chairman Sri Lanka Sustainable Energy Prasad Galhena were present on the occasion.