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Reduction of fuel prices, no-faith motion so far not discussed at Cabinet or SLPP group level – Udaya

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By Shamindra Ferdinando

Energy Minister Udaya Gammanpila says the government hadn’t discussed the possibility of reducing fuel prices though there was a spate of statements regarding downward revision.

Pivithuru Hela Urumaya leader and attorney-at-law Gammanpila said so when The Island asked him whether the government had deliberated the issue at hand at the cabinet and the Cost of Living Committee following the increase in fuel prices on June 11. The PHU represented in Parliament by one lawmaker is a constituent of the ruling SLPP, the largest party in the Parliament with 116 seats. The SLPP parliamentary group consists of 145 members with the SLFP being the second largest group with 14-members.

Responding to another query, Colombo District lawmaker said that the cabinet and the SLPP Parliamentary group hadn’t discussed how to face the no-faith motion moved by the Samagi Jana Balavegaya (SJB) against him for the fuel price hike.

Party leaders on July 5 decided to debate and vote on the no faith motion on July 19 and 20th. Speaker Mahinda Yapa Abeywardena presided the meeting.

Minister Gammanpila said that the Speaker Abeywardena should have rejected the SJB’s no-confidence motion on technical grounds.

Minister Gammanpila said that the Cost of Living Committee on June 09 decided to increase the fuel prices due to extremely grave financial situation that undermined the entire banking system. The PHU leader said that he was among several Ministers and State Ministers present on the occasion. Premier Mahinda Rajapaksa had been among them.

On the following day, Prime Minister Mahinda Rajapaksa, in his capacity as the Finance Minister, in writing authorised the hike in fuel prices, MP Gammanpila said, adding that whatever various interested parties propagated the economic situation remained dicey.

Minister Gammanpila pointed out that the Presidential Media Division (PMD) in a statement dated June 13 set the record straight. The President’s Office admitted the financial crisis that had been caused by the Ceylon Petroleum Corporation (CPC) and the Ceylon Electricity Board (CEB) being in debt to the Bank of Ceylon and the People’s Bank to the tune of Rs 737 bn.

Lawmaker Gammanpila said that contrary to numerous reports, claims and speculation, they hadn’t worked out a plan to bring down fuel prices or introduce a relief package so far.

Minister Gammanpila said that he was not worried at all about the SJB’s no-faith motion. The minister explained that in spite of the SJB not having the numbers in parliament, the no-faith motion had been directed at the government as part of its overall political strategy to cause a split.

“Those who had publicly criticised me for announcing the fuel price hike are aware of the circumstances leading to the June 11 announcement. Both the President and the Prime Minister endorsed the decision,” Minister Gammanpila said, adding that problems couldn’t be addressed through rhetoric. Whatever, various spokespersons say, at the end of the day, the SLPP would have to defeat the SJB no-faith motion by the widest possible margin.

The lawyer explained that the Cost of Living Committee decided on the fuel price hike in the wake of Central Bank issuing a dire warning on the national economy. The Minister said that the Central Bank warned the Treasury of dire consequences unless fuel prices were revised forthwith.

The Energy Minister said that Treasury Secretary S.R. Attygalle, too, acknowledged the challenges ahead when SJB lawmaker Dr. Harsha de Silva recently sought the Treasury Chief’s opinion on the current financial situation. The SJB has raised the issue at a routine meeting of the Committee on Public Enterprises (COPE) chaired by Prof. Charitha Herath.

He pointed out the SJB’s contradictory stand on the economic situation. On one hand, the SJB demands the government bring down the price of fuel and provide relief to the masses. Referring to high profile SJB’s vehicle protest outside the parliament to highlight their demand to reduce fuel prices, Minister Gammanpila said the same lot called for IMF intervention to save the economy.

Minister Gammanpila said that he didn’t play politics with the issue but sought a common ground where all could work together to overcome challenges. The minister recalled the difficulties faced by him recently when he sought the foreign exchange required to procure fuel. President Gotabaya Rajapaksa, in his address to the nation late last month acknowledged the daunting task in meeting annual loan payments amounting to USD 4 bn.

A group of eight lawmakers, including two ministers, Wimal Weerawansa and Vasudeva Nanayakkara, recently declared that they would soon propose a relief package to those who had been badly affected by the June 11 fuel price hike. However, the group hadn’t taken it up at cabinet or parliamentary group level and such a mechanism remained unfeasible due to the current situation, The Island learns.

Early last month, Minister Gammanpila declared that the country lacked the wherewithal to build a second refinery at Sapugaskanda and external investments were required to get the project off the ground. Minister Gammanpila pointed out that Minister Bandula Gunawardena and State Minister Dr. Nalaka Godahewa, too, recently explained how difficult the situation was on the economic front.



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Ex-Minister ordered to pay loan interest in arrears for 24 yrs

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SM Chandrasena

By Saman Indrajith

The government has begun recovering funds obtained by former Lands and Land Development, Environment and Wildlife Resources Minister SM Chandrasena for the Janatha Lanka Chilli Marketing Limited (JLCML), which he headed, Parliament was informed yesterday.

Agriculture, Livestock, Land, and Irrigation Minister Namal Karunaratne said that as the Chairman of JLCML, Chandrasena had obtained a loan of Rs. 1,275,000 from the Mihintale Govijana Seva Bank in 2001.

The principal of the loan had not been repaid until the end of last year. “After we came to power, we demanded that the loan be settled. Then, we discovered that the interest on the loan had not been paid for the past 24 years, and attempts had been made to have the loan written off. We stopped that and are now in the process of recovering the interest of Rs. 1,975,233 on the loan,” Karunaratne said.

Karunaratne added that JLCML was registered as a company with the Registrar of Companies on March 21, 2001. As Chairman of the company, Chandrasena requested a loan of Rs. 10 million on April 19, 2001, for the purpose of purchasing chillies from farmers in 12 farmer colonies in the Mihintale Agrarian Service area.

The request was approved by the Mihintale Agrarian Service Committee on the same day and referred to the Anuradhapura District Agrarian Operations Committee, which approved it on April 23, 2001. However, the Agriculture Development Commissioner General recommended that a loan of Rs. 1.2 million would suffice for this purpose. JLCML took the loan and failed to repay it until the end of last year. When the matter was raised, the principal was paid, and we are now in the process of recovering the interest that was not paid for the past 24 years,” Karunaratne added.

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Govt. won’t be able to pay salaries health workers are demanding through strikes – Minister

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Dr Jayatissa

By Saman Indrajith

Chief Government Whip and Health and Mass Media Minister, Dr. Nalinda Jayatissa, told Parliament yesterday that the government would never be able to pay the salaries that health workers receive in the UK and Australia because the country simply did not have the funds to do so.

“If anyone hopes to receive salaries similar to those paid in the UK and Australia here, we must remind them of the reality that there are no funds for that,” Dr. Jayatissa said, making a special statement on the token strike action by healthcare professionals.

Dr. Jayatissa emphasised that strikes in the healthcare sector, which endangered patients’ lives, were unacceptable.

He acknowledged the need for fair wage increases but stressed that holding patients’ lives hostage during such strikes was condemnable.

Dr. Jayatissa also stated that despite the government’s efforts to increase basic salaries of healthcare professionals, certain groups had chosen to strike, causing significant disruption to medical services.

Dr Jayatissa said that the Ministry of Finance had arranged for a meeting with the striking groups on 17 March to discuss their concerns. However, the groups announced their strike immediately after the meeting.

The minister said: “As a government, we have given a basic salary increase for the Professions Supplementary to Medicine, and the Interim Medical Services. We have added Rs. 22,000 to the basic salary of Rs. 32,000. For a person with a basic salary of Rs. 37,190 we have added Rs. 26,120. For a person with a basic salary of Rs. 44,520, we have added Rs. 32,010-. For a person with a basic salary of Rs. 54, 590, we have added Rs. 43,320/-.”

Dr Jayatissa said that it was the taxpayers who funded those salary hikes. “It is unfair for senior citizens and other patients to be turned away from hospitals due to the strike.”

“The President is ready to make time to meet and discuss the real issues of the strikers. Instead, they are holding patients to ransom. We have given them a meeting on Wednesday (19) as well. We are ready for talks,” he said.

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UN advises GoSL on economic recovery

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A section of the participants

UN Resident Coordinator Marc-André Franche emphasized that Sri Lanka’s ongoing path of economic recovery and reforms need a more responsive, accountable public service, improved service delivery, economic modernization, and strengthened social dialogue at both national and local levels. The UN official asserted that social dialogue is key to Sri Lanka’s economic recovery and social cohesion.

The UN Resident Coordinator was addressing the second steering committee meeting of the Social Dialogue for Peace and Crisis Prevention in Sri Lanka project, a collaborative initiative between the Government of Sri Lanka, and the United Nations held recently at the UN Compound in Colombo. The meeting, chaired by the UN, Ministry of Public Administration, Local Government & Provincial Councils, and Ministry of Labour, focussed on progress in advancing social dialogue, dispute resolution, and public sector inclusion.

Launched in 2024, the project, is implemented by the UN through the International Labour Organization (ILO), United Nations Educational, Scientific and Cultural Organization (UNESCO) and the United Nations Population Fund (UNFPA). The project aims to foster a peaceful, inclusive, and just response to the effects of Sri Lanka’s economic crisis. This is achieved through social dialogue and dispute resolution mechanisms at both national and local levels.

The meeting brought together key stakeholders, including representatives from the Ministry of Justice, workers’ and employers’ organization, to discuss the project’s progress and key developments. Highlights of recent efforts include establishing six public sector workplace forums, conducting awareness sessions on social dialogue and workplace cooperation for priority sectors, as well as training on gender responsive public service delivery. These efforts foster conflict resolution, harmonious workplaces, and a culture of social dialogue.

The Secretary, Ministry of Public Administration, Local Government & Provincial Councils, underscored the salient role of the public sector in economic recovery efforts, and the importance of a sector equipped for both a stronger, efficient service delivery to public and private sectors.

The Secretary, Ministry of Labour emphasized the importance of social dialogue in the public sector both within institutions as well as externally which would lead to a collective voice and maintaining industrial peace.

The Additional Secretary, Ministry of Public Administration, Local Government and Provincial Councils, commended the project for creating additional platforms to interact with public officials at all levels.

The pilot phase of the project saw success in the railway sector, where 10 workplace forums were established, helping minimize service disruptions. The project also aims to develop a national industrial dispute database to support policymaking, enhance gender responsiveness in the public sector, and amplify community voices in national policy making structures.

The project is funded by the UN Sri Lanka SDG Fund with support from Canada, European Union, the United Kingdom, the United States, the UN Secretary General’s Peacebuilding Fund and the Joint SDG Fund.

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