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JVP claims Energy Minister Gammanpila misled Parliament on Trinco oil tanks

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By Saman Indrajith

The JVP yesterday in Parliament accused Energy Minister Udaya Gammanpila of misleading the House by claiming that Trincomalee Oil Tanks had been handed over to India under the Indo-Lanka Agreement.

JVP MP Vijitha Herath said that it was so regrettable that the Energy Minister was claiming that the oil tanks had been handed over to India completely when even the Indian Oil Corporation (IOC) was claiming that they did not have the legal ownership to the oil tanks.

MP Herath asked the government to reveal whether the oil tanks would be handed over to India by the incumbent government.

MP Herath said Lanka IOC’s Managing Director Sham Bora had written to the Attorney General in Sri Lanka in 2017 requesting him to take steps to hand over the legal ownership of the oil tanks saying that they could not develop the oil tanks without legal ownership. The then Petroleum Minister Arjuna Ranatunga had obtained Cabinet approval for handing over the oil tanks to India but no agreement had been signed to that effect, Herath said.

“Had the oil tanks been handed over to India, as claimed by Minister Gammanpila, why did then Minister Ranatunga seek Cabinet approval to hand them over?” MP Herath queried.

“It is unbecoming of a minister to say that all the 100 oil tanks have been handed over to India. Minister Gammanpila should correct his statement without misleading the country.”

The MP said it was true that the Sri Lankan government had agreed to develop the oil tanks jointly with India and that letters had been exchanged between J.R. Jayewardene and Rajiv Gandhi on this matter and added that however, no legal agreement had been signed up to now.

“India wanted to include such a condition in the Indo-Lanka agreement as J.R. was planning to give the oil tanks to the US,” he said.

MP Herath said a permit had been issued to IOC to use oil tanks in 2003 by the committee appointed through a special Act in 2003. It not a legal agreement to hand over the ownership of the oil tanks, he said.

“According to the permit, a lease agreement should have been signed with the IOC after six months. However, no such agreement was signed so far. In that context, the IOC has no legal ownership of the oil tanks,” he said.



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Namal, Janaki further remanded

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SLPP MP Namal Rajapaksa and former Krrish Group Executive Director and businesswoman Janaki Siriwardena were further remanded until October 23 by the Colombo Chief Magistrate’s Court yesterday in connection with an alleged Rs. 70 million bribery case involving the Krrish Group.

Colombo Chief Magistrate Asanga S. Bodaragama rejected the bail application filed on behalf of Siriwardena.

The Magistrate said the order on Namal Rajapaksa’s bail application was not ready and would be delivered on the next court date.

The Commission to Investigate Allegations of Bribery or Corruption (CIABOC) arrested the two suspects and produced them before court over allegations that a bribe of Rs. 70 million had been solicited and accepted in connection with the affairs of the Krrish Group.

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Review of progress in reforms and modernisation of key state revenue-collecting institutions

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A progress review meeting on reforms and modernisation initiatives at Sri Lanka’s key state revenue-collecting institutions was held on Thursday  (15) at the Presidential Secretariat, chaired by Secretary to the President Dr Nandika Sanath Kumanayake, with the participation of representatives of the International Monetary Fund (IMF) and officials of the Revenue Administration, Reform and Modernisation Bureau (RARMB) of the Presidential Secretariat.

At the meeting, the IMF representatives commended the revenue collection efficiency of the Department of Inland Revenue, Sri Lanka Customs and the Department of Excise, the country’s three leading state revenue-collecting institutions. Extensive discussions were also held on the progress of the reform and modernisation programmes being implemented at these institutions.

Secretary to the President Dr Nandika Sanath Kumanayake outlined the progress achieved by the three institutions to date and the reforms planned for implementation in the future.

The IMF representatives also highlighted the importance of strengthening risk management, developing human resources and ensuring the efficient operation of computer systems at the respective institutions.

Senior Additional Secretary to the President Seevali Arukgoda also attended the meeting. The IMF was represented by Cindy Negus, Senior Economist in Revenue Administration for the Asia and Pacific, Europe, Middle East and Central Asia regions; Alison Lister, Revenue Administration Adviser; and Gregory Toppin, Resident Revenue Adviser in Sri Lanka. A group of senior officials from the Revenue Administration, Reform and Modernisation Bureau of the Presidential Secretariat also participated.

(President’s Media Division)

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Cut power bills by 3-5%, don’t hike them, consumers demand

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By Anuradha Hiripitiyage

Electricity tariffs should be reduced by between 3 and 5 percent instead of being increased by 2.88 percent in the fourth quarter, as proposed by the National System Operator (NSO), Electricity Consumers’ Association Secretary Sanjeewa Dhammika said.

Addressing a media briefing in Maradagahamula, Divulapitiya, Gampaha, yesterday (16), Dhammika said a proper assessment of electricity generation costs, including the contribution of hydropower, could justify a reduction in tariffs.

He said the NSO had sought approval from the Public Utilities Commission of Sri Lanka (PUCSL) for a 2.88 percent tariff increase, which was expected to generate an additional Rs. 4,438 million.

However, the Commission had indicated that an increase of only 1.46 percent was warranted, amounting to Rs. 2,245 million, he said, adding that even this increase was unnecessary.

Dhammika alleged that the proposed revision sought to pass on to electricity consumers the financial burden arising from the non-arrival of five coal shipments and failed tenders.

“The Government had said that the burden of coal-related losses would not be passed on to the public. It is therefore unjust to make consumers bear these costs,” he said.

He pointed out that the PUCSL had forecast that hydropower would account for 32.34 percent of total electricity generation in the coming quarter, while the cost of such generation would represent only 3.45 percent of the overall cost of electricity production.

Consumers should benefit from the lower cost of hydropower generation rather than bear the burden of more expensive thermal power generation, he said.

Dhammika also questioned the inclusion of Rs. 669 million in capacity charges that had not been approved by the PUCSL, as well as a further Rs. 1,069 million to repay loans relating to incomplete projects.

Including such charges in the proposed tariff revision was unjustifiable, he said.

The PUCSL has given the public until October 30 to submit their views on the proposed tariff revision.

Dhammika said the possibility of increased hydropower generation in the coming weeks, as reservoir levels rise, should also be taken into account when determining electricity tariffs.

He maintained that tariffs could be reduced by 3 to 5 percent if hydropower generation was properly assessed and coal-related losses and unapproved charges were excluded from the calculations.

He further claimed that electricity tariffs could be reduced by as much as 10 percent through the promotion of renewable energy and the effective use of solar power and battery storage systems.

The Electricity Consumers’ Association urged the Government to withdraw the proposed tariff increase, insisting that consumers should not be made to bear costs arising from coal supply problems and other disputed charges.

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