WION's Dasuni Athauda spoke to the former energy minister of Sri Lanka Udaya Gammanpila on the power vaccum and the way forward for the island nation. He was also part of the all-party meeting which took place. Listen in

There are three potential candidates for President's position, says Udaya Gammanpila

How did Sri Lanka reach to the power crisis? Why did the government fail to foresee this and how is the island nation planning on overcome this? To find answers to these questions WION spoke to Sri Lanka's energy minister Udaya Gammanpila.

Existing power plants have no capacity to meet demand, says Udaya Gammanpila on Lankan power crisis

Sri Lanka is in the middle of a power crisis With power cuts & falling foreign reserves, how will the island country overcome this crisis? Watch our next edition of The Straight Talk with Sri Lanka's Energy Minister Udaya Gammanpila.

Straight Talk: Sri Lanka's Energy Minister Udaya Gammanpila exclusive on WION

It took more than two decades for India and Sri Lanka to finalise the deal to build Trincomalee oil farm tanks, a move expected to boost energy security for both countries and set the stage for further economic cooperation.

The Trincomalee oil farm consisting of 100 oil storage tanks involves three agreements.

The first agreement pertains to modernising 61 British-era tanks, where the Indian Oil Corporation will hold a minority stake of 49 per cent while the rest is with the Ceylon Petroleum Corporation (CPC) which will also operate the remaining tanks.

The lease will be valid for 50 years.

India had for long wanted to secure the Trincomalee farm tanks as it was averse to a foreign company operating them in their backyard.

Talks were being held since 1987, but the major breakthrough emerged when Sri Lanka found itself in the midst of an economic crisis this year.

Talking exclusively to WION, Sri Lanka’s energy minister Udaya Gammanpila revealed why it took both countries so long to conclude the deal.

“Well, India wanted to have all 99 tanks in their control and then sublease to Sri Lankan entities who want to use these tanks. So when I became the minister, I realised that India's interest is not commercial but it’s a security concern. This oil tank farm has 100 tanks with a capacity of 10,000 metric tons each, 8 million barrels of oil can be stored in this oil tank farm. If an enemy of India takes control of these tanks, the enemy can attack India without any uninterrupted break because of the unlimited fuel supply on their ships, planes and submarines. So, this is India’s worry that they don't want to develop this,” he said.

“This is my own assessment — If they (India) could bomb and destroy this, their problem is over. I realised this and I agreed with them that we will not allow a third party to involve in the development of these tanks without the Indian consent. That's what they exactly wanted,” he said.

Also read |&nbsp;<a href="https://www.wionews.com/india-news/india-to-enter-sri-lankas-china-bay-with-trincomalee-oil-farm-deal-440855">India to enter Sri Lanka's ‘China Bay’ with Trincomalee oil farm deal</a>

Gammanpila said that they had to change the proposals to include India’s concerns.

“So, I changed the frame, and our counter-proposal was accepted by India. It was a tough negotiation. We had 22 rounds of negotiations during the period of 16 months. There were heated exchanges and somehow, in the end, we have reached a consensus and the entire oil tank farm will now be used for the first time since the second world war,” he said.

The minister also discussed at length the electricity crisis currently plaguing the island nation.

The energy minister acknowledged that the government was unable to match the rising demand and failed to develop thermal and renewable energy resources.

“Usually, from Jan to April, dry season takes place in Sri Lanka and our water level goes down drastically. At that time, we usually rely on thermal plants, but unfortunately, since we didn’t add either renewable energy or thermal energy during the last 8 years, there weren’t sufficient supplies to cater to the increasing demand. I have predicted that there will be power cuts probably from mid-February,” Gammanpila said.&nbsp;

&nbsp;With power production coming down, Sri Lanka was looking to increase the operations of existing thermal power plants, but the foreign reserve crisis prevented the country from purchasing&nbsp;diesel and furnace oil.

“We need US $500 million to meet the energy requirements of the country. This is something we can't bear because we are in a foreign currency crisis. That's why we are facing this difficulty,” he said.

Sri Lanka has foreign debt obligations exceeding $7 billion in 2022, including repayment of another bond worth $1 billion in July.

Shortages of cash have hindered imports of essentials and raw materials for manufacturing, and shortages have worsened inflation, which surged to 12.1% in December from 9.9% in November.

It took more than two decades for India and Sri Lanka to finalise the deal to build Trincomalee oil farm tanks, a move expected to boost energy security for both countries and set the stage for further economic cooperation.

It took more than two decades for India and Sri Lanka to finalise the deal to build Trincomalee oil farm tanks, a move expected to boost energy security for both countries and set the stage for further economic cooperation. The Trincomalee oil farm consisting of 100 oil storage tanks involves three agreements. The first agreement pertains to modernising 61 British-era tanks, where the Indian Oil Corporation will hold a minority stake of 49 per cent while the rest is with the Ceylon Petroleum Corporation (CPC) which will also operate the remaining tanks. The lease will be valid for 50 years. India had for long wanted to secure the Trincomalee farm tanks as it was averse to a foreign company operating them in their backyard. Talks were being held since 1987, but the major breakthrough emerged when Sri Lanka found itself in the midst of an economic crisis this year. Talking exclusively to WION, Sri Lanka’s energy minister Udaya Gammanpila revealed why it took both countries so long to conclude the deal. “Well, India wanted to have all 99 tanks in their control and then sublease to Sri Lankan entities who want to use these tanks. So when I became the minister, I realised that India's interest is not commercial but it’s a security concern. This oil tank farm has 100 tanks with a capacity of 10,000 metric tons each, 8 million barrels of oil can be stored in this oil tank farm. If an enemy of India takes control of these tanks, the enemy can attack India without any uninterrupted break because of the unlimited fuel supply on their ships, planes and submarines. So, this is India’s worry that they don't want to develop this,” he said. “This is my own assessment — If they (India) could bomb and destroy this, their problem is over. I realised this and I agreed with them that we will not allow a third party to involve in the development of these tanks without the Indian consent. That's what they exactly wanted,” he said. Also read | India to enter Sri Lanka's ‘China Bay’ with Trincomalee oil farm deal Gammanpila said that they had to change the proposals to include India’s concerns. “So, I changed the frame, and our counter-proposal was accepted by India. It was a tough negotiation. We had 22 rounds of negotiations during the period of 16 months. There were heated exchanges and somehow, in the end, we have reached a consensus and the entire oil tank farm will now be used for the first time since the second world war,” he said. The minister also discussed at length the electricity crisis currently plaguing the island nation. The energy minister acknowledged that the government was unable to match the rising demand and failed to develop thermal and renewable energy resources. “Usually, from Jan to April, dry season takes place in Sri Lanka and our water level goes down drastically. At that time, we usually rely on thermal plants, but unfortunately, since we didn’t add either renewable energy or thermal energy during the last 8 years, there weren’t sufficient supplies to cater to the increasing demand. I have predicted that there will be power cuts probably from mid-February,” Gammanpila said. With power production coming down, Sri Lanka was looking to increase the operations of existing thermal power plants, but the foreign reserve crisis prevented the country from purchasing diesel and furnace oil. “We need US $500 million to meet the energy requirements of the country. This is something we can't bear because we are in a foreign currency crisis. That's why we are facing this difficulty,” he said. Sri Lanka has foreign debt obligations exceeding $7 billion in 2022, including repayment of another bond worth $1 billion in July. Shortages of cash have hindered imports of essentials and raw materials for manufacturing, and shortages have worsened inflation, which surged to 12.1% in December from 9.9% in November.

India wanted to develop Trincomalee oil tank farm for security reasons, not commercial: SL minister

Sri Lanka’s energy minister Udaya Gammanpila slammed the Tamil lawmakers from the country for seeking Indian Prime Minister Narendra Modi’s intervention over the long-standing 13th Amendment issue.

Speaking exclusively to WION, he said that “if they have an issue, they must bring it up with the Sri Lankan government and not India.”

The minister's&nbsp;comments come days after 13 Tamil MPs from Sri Lanka wrote a letter to Modi seeking India’s help in ensuring that Colombo addresses the island’s long-pending Tamil issue with a lasting political solution.

The 13th Amendment was the result of the Indo-Lanka Accord of 1987, inked by the then Sri Lankan president JR Jayawardena and former Indian prime minister Rajiv Gandhi.

Also read |&nbsp;<a href="https://www.wionews.com/south-asia/india-wanted-to-develop-trincomalee-oil-tank-farm-for-security-reasons-not-commercial-sl-minister-448455">India wanted to develop Trincomalee oil tank farm for security reasons, not commercial: SL minister</a>

It provides for the devolution of power to the minority Tamil community in Sri Lanka.&nbsp;

The letter also cites the Indian political leadership's interventions at various moments, such as Prime Minister Modi's 2015 address to the Sri Lankan Parliament, in which he expressed his staunch confidence in "cooperative federalism."&nbsp;

He said that since the MPs are from Sri Lanka, they should have called on the country’s president to redress their grievances.

Also read | <a href="https://www.wionews.com/south-asia/tamil-mps-of-sri-lanka-write-to-indian-pm-modi-on-implementing-13th-amendment-445942">Tamil MPs of Sri Lanka write to Indian PM Modi on implementing 13th amendment</a>

“Instead of writing their issues to the government, the 13 members wrote to the Indian PM. I am against this. Sri Lanka is a separate entity and not a part of India,” Gammanpila said.

Over the years, India had reaffirmed its commitment to protect the rights of the Tamils through the implementation of the 13th Amendment.

However, the ruling Sri Lanka People’s Party’s Sinhala majority hardliners have been advocating for total abolition of the island’s Provincial Council system.

Sri Lanka’s energy minister Udaya Gammanpila slammed the Tamil lawmakers from the country for seeking Indian Prime Minister Narendra Modi’s intervention over the long-standing 13th Amendment issue.

Sri Lanka’s energy minister Udaya Gammanpila slammed the Tamil lawmakers from the country for seeking Indian Prime Minister Narendra Modi’s intervention over the long-standing 13th Amendment issue. Speaking exclusively to WION, he said that “if they have an issue, they must bring it up with the Sri Lankan government and not India.” The minister's comments come days after 13 Tamil MPs from Sri Lanka wrote a letter to Modi seeking India’s help in ensuring that Colombo addresses the island’s long-pending Tamil issue with a lasting political solution. The 13th Amendment was the result of the Indo-Lanka Accord of 1987, inked by the then Sri Lankan president JR Jayawardena and former Indian prime minister Rajiv Gandhi. Also read | India wanted to develop Trincomalee oil tank farm for security reasons, not commercial: SL minister It provides for the devolution of power to the minority Tamil community in Sri Lanka. The letter also cites the Indian political leadership's interventions at various moments, such as Prime Minister Modi's 2015 address to the Sri Lankan Parliament, in which he expressed his staunch confidence in "cooperative federalism." He said that since the MPs are from Sri Lanka, they should have called on the country’s president to redress their grievances. Also read | Tamil MPs of Sri Lanka write to Indian PM Modi on implementing 13th amendment “Instead of writing their issues to the government, the 13 members wrote to the Indian PM. I am against this. Sri Lanka is a separate entity and not a part of India,” Gammanpila said. Over the years, India had reaffirmed its commitment to protect the rights of the Tamils through the implementation of the 13th Amendment. However, the ruling Sri Lanka People’s Party’s Sinhala majority hardliners have been advocating for total abolition of the island’s Provincial Council system.

Lankan minister slams Tamil MPs for seeking Indian PM’s intervention on 13th Amendment issue

Amid a severe fuel crisis,Sri lanka has asked for a 500 million dollar loan from India to pay for its crude oil purchases. This comes a few days after the Sri Lankan energy minister Udaya Gammanpila warned that the current availability of fuel will last only till january next year. Note that Sri Lanka's state run agency, the Ceylon Petroleum Corporation,owes nearly 3.3 billion dollars to two Sri Lankan banks, i.e., the bank of Ceylon and the people's bank.

Sri lanka asks for 500 million dollar loan from India