Sri Lanka President Gotabaya Rajapaksa has called a meeting of coalition partners on Thursday ahead of possible strikes over an unsolicited deal with a US-based firm that critics say will commit the country to buy billions of dollars of unwanted liquefied natural gas.
Ruling Sri Lanka Podujana Peramuna (SLPP) is facing an internal crisis as some coalition party members have said a preliminary agreement was inked with US-based New Fortress Energy by the Finance Ministry without their knowledge and being approved by the cabinet.
Trade unions and legislators including replaced power minister Dallas Alahapperuma has voiced concerns over the decision to sell an LNG plant to US firm New Fortress Energy, which critics say will commit state-run CEB to buy large volumes of LNG or pay compensation.
The nationalist SLPP party has maintained an anti-US stance before the election and promised the country not to sell any assets to foreigners.
The central bank on Tuesday said the first tranche of a $250 million US dollar deal is expected within the next two months.
The Presidential powwow comes as at least 11 coalition partners are due to meet on Friday to decide on a course of action which could involve strikes.
A Ceylon Electricity Board (CEB) trade union has issued an ultimatum to the government to abolish the New Fortress Energy before November 03 or face industrial action.
Convener of the CEB trade grouping Ranjan Jayalal told reporters that the trade union action will be similar to the 72-hour trade union action that was experienced in 1996 protesting the privatization of Lanka Electric Company, which led to blackouts.
It is not possible to cripple the power supply unless the powerful Ceylon Electricity Board Engineers Union joins the strike as engineers and power superintendents are capable of dealing with breakdowns on their own.
The CEBEU, which strikes rarely and is considered to be apolitical and last downed tools over two decades ago, has also voiced their opposition to the associated LNG take-or-pay deal – though not necessarily the sale of the stake in the power plant itself.
Amidst the LNG deal, a new engineers union was suddenly been formed this year with their retirement age being extended, which some observers say is a bid to reduce the clout of the engineers union.