News
‘LIOC increases prices to cut down losses at CPC’s expense’
Huge increase in sales volumes disastrous for Ceypetco – CPC chairman
By Shamindra Ferdinando
Ceylon Petroleum Corporation (CPC) Chairman Sumith Wijesinghe says Lanka IOC has increased its fuel prices by Rs. 5 a litre to curtail its losses by making its customers obtain fuel from Ceypetco fuel stations.
Wijesinghe said so when The Island sought an explanation as regards the mechanism in place to revise fuel prices and whether Lanka IOC required the government permission to do so. Wijesinghe emphasised that Lanka IOC move was calculated to discourage customers coming to its fuel stations thereby would sharply increase financial losses on the state enterprise as its fuel was highly subsidised to protect the local consumer.
“In other words, the surge in sales volumes will automatically increase losses. The same result can be achieved by increasing petrol and diesel by just two rupees, each,” Wijesinghe said.
Responding to another query, Wijesinghe pointed out that Lanka IOC clearly sought to cut down on their losses by forcing its regular customers to visit Ceypetco fuel stations. The outspoken official said that as their competitor is on record as having said that they suffered a loss of Rs. 20 and Rs.40 per ltr, on the sale of petrol and diesel, respectively, Lanka IOC strategy was clear.
Lanka IOC is a subsidiary of Indian Oil Corporation which comes under the purview of Ministry of Petroleum and Natural Gas, is the only private party that operates fuel stations here.
CPC Chief said as a result of increased volume of sales their stocks would be depleted much faster. Wijesinghe described the situation as ‘grave’ and quite a concern to cash-strapped loss making public sector enterprise.
According to him, the problem was much worse than the public realised. The Indian strategy would cause a catastrophic situation, Wijesinghe said.
Wijesinghe admitted that Lanka IOC didn’t require Energy Ministry consent to revise fuel prices. The enterprise that entered the Sri Lankan market during Ranil Wickremesinghe’s premiership in 2003 is the eighth largest listed company here.
The official stressed that urgent revision of fuel prices was a dire necessity as the overall financial situation remained precarious. Ceypetco’s network of fuel stations is much larger than Lanka IOC’s.
Lanka IOC in a statement issued Thursday night said that the selling price of petrol and diesel here remained significantly low as compared to the prices prevailing in the neighboring countries. “The prices of petrol and diesel need to be in line with the prices prevailing in the international market,” the company said in a statement e-mailed to The Island.
Lanka IOC refrained from revising the prices of Lanka Super Diesel and LP 95. The previous price revision took place on June 12.
Asked whether Ceypetco would match the Lanka IOC’s price increase immediately to counter the competitor’s strategy, CPC Chairman said that the issue at hand required a thorough examination of the full picture as they couldn’t contain the rapid deterioration of the finances unless a substantial increase was implemented.
Claiming the mounting losses were unbearable, Managing Director LIOC Manoj Gupta said that the company had increased the prices to the barest minimum. Responding to The Island queries, Gupta said that Lanka IOC didn’t require GoSL approval to revise fuel prices. According to the Indian official, Lanka IOC had been empowered by ‘virtues of previously signed agreements with GOSL to take independent commercial decisions.“
As at Oct. 21 the international price of Gasoil 500ppm was at $ 95.62/barrel and Gasoline92 $ 99.37/barrel.
The last price revision took place on June 12, 2021. However, since then the Brent crude oil prices have increased from $72/barrel to $86/barrel in the international market.
Energy Minister Udaya Gammanpila on Oct. 15 revealed that when raised the possibility of Treasury assistance to the CPC with Finance Minister Basil Rajapaksa, he was told in no uncertain terms the Finance Ministry was not in a position to do so.
In the wake of simmering controversy over the fuel price hike announced by Minister Gammanpila on June 12 with General Secretary of the SLPP attorney-at-law Sagara Kariyawasam demanding the minister’s resignation, the latter declared that the revision of fuel prices was the prerogative of the Finance Minister.
Attorney-at-law Gammanpila explained that in his capacity as the Energy Minister, he only made the announcement of a decision taken at a meeting attended by both President Gotabaya Rajapaksa and Premier Mahinda Rajapaksa.
Asked by The Island yesterday (22) afternoon whether the Ceypetco would match Lanka IOC price hike immediately, Minister Gammanpila said ‘No.’
In terms of the 2003 agreement with the UNP government, Lanka IOC has the strategically located China Bay oil tank farm, the largest such facility situated between the Middle East and Singapore. The tank farm, formerly owned and operated by CPC, has 99 tanks, each with a capacity of 12,000 litres. Of them, only 15 of these tanks are operational at the moment.
Commenting on the ongoing talks with about half a dozen countries to ensure uninterrupted fuel supplies, the Pivithuru Hela Urumaya (PHU) leader Gammanpila said that the cabinet of ministers recently approved a proposal to obtain USD 3.6 billion loan from Oman to repay in 20 years with a five-year grace period. According to him, the Omani offer had been undoubtedly the best and the government was going ahead with it. The offer now before the cabinet of ministers would give the government an opportunity to use USD 500 mn overdraft to order refined products from India.
Minister Gammanpila said that there had been other offers from China, UAE and Singapore though at the moment they were committed to Omani and Indian proposals.
Asked to explain the Indian offer, Minister Gammanpila said that USD 500 overdraft could be obtained with 4 percent interest payable in one year.
“Once settled, we’ll be eligible for USD 500 mn overdraft again.”
News
Gnanasara Thero absconding after SC ruling
Ven. Galagoda Aththe Gnanasara Thero was not at his temple in Rajagiriya when prison officials visited the premises yesterday to take steps following the Supreme Court ruling that nullified the presidential pardon granted to him, police sources said.
Prison officials who visited the temple on Nawala Road, Rajagiriya, were reportedly informed by those present that the Thero’s whereabouts were unknown. The development comes a day after the Supreme Court declared former President Maithripala Sirisena’s 2019 pardon of Gnanasara Thero null and void.
The three-member Supreme Court bench comprising Justices Janak De Silva, Dr. Sobhitha Rajakaruna and Sampath B. Abayakoon held that the pardon was arbitrary, violated the public trust and principles of natural justice, and was made beyond the proper exercise of the President’s constitutional discretion.
The case arose from Gnanasara Thero’s conduct at the Homagama Magistrate’s Court in January 2016 during proceedings relating to the disappearance of journalist and political cartoonist Prageeth Eknaligoda.
The Court of Appeal convicted him on four counts of contempt of court in 2018 and imposed concurrent prison terms amounting to six years. He had served about nine months when Sirisena granted him a presidential pardon on May 23, 2019.
The Supreme Court found that although Article 34 empowers the President to grant pardons, that power is held in trust for the people and is subject to constitutional limitations and judicial review. The Court concluded that Sirisena had effectively acted on the recommendation of the Additional Secretary (Legal) without demonstrating that he had independently considered the relevant material.
Justice De Silva held that the pardon was “arbitrary”, violated public trust and the rules of natural justice, and was ultra vires the President’s powers. The Court consequently found that the decision violated the fundamental right to equality guaranteed by Article 12(1) of the Constitution.
The ruling effectively restores the legal position under the original conviction, leaving Gnanasara Thero without the benefit of the 2019 pardon. The Supreme Court also clarified that a pardon does not erase a conviction or sentence, but merely relieves an offender from serving the sentence to the extent specified in the pardon.
Gnanasara Thero, the General Secretary of the Bodu Bala Sena, had been convicted over his conduct during proceedings concerning the disappearance of Eknaligoda, who went missing in January 2010 and has not been located.
Sandhya Eknaligoda, Prageeth Eknaligoda’s wife, was among those who challenged the presidential pardon before the Supreme Court, alongside the Centre for Policy Alternatives and its Executive Director Dr. Paikiasothy Saravanamuttu.
The detailed account of the judgment indicates that the Court’s ruling primarily nullified the pardon and restored the legal effect of the original sentence, with the implementation of the sentence falling to the relevant authorities.
Police sources said that the Supreme Court, however, did not permanently close the door on executive clemency. It held that a future President could grant Gnanasara Thero another pardon, provided the power is exercised lawfully and after proper consideration of all relevant material.
The Supreme Court has so far overturned three presidential pardons granted to two former Presidents. In January 2024, the Court declared former President Gotabaya Rajapaksa’s pardon of former MP Duminda Silva unlawful and invalid. In June 2024, it invalidated two pardons granted by former President Maithripala Sirisena to Royal Park murder convict Jude Shramantha Anthony Jayamaha — the first in May 2016, which commuted his death sentence to life imprisonment, and the second in October 2019, which released him from prison. Jayamaha, who was convicted of the murder of 19-year-old Yvonne Johnson, remains at large. Most recently, on September 10, 2026, the Supreme Court declared Sirisena’s 2019 pardon of Ven. Galagoda Aththe Gnanasara Thero null and void, ruling that it was arbitrary and inconsistent with the Constitution.
News
House to debate 22A, Judicature Bill next week
Parliament is scheduled to debate the Twenty-Second Amendment to the Constitution Bill and the Judicature (Amendment) Bill on September 24 and 25, subject to the Speaker’s announcement following the delivery of the Supreme Court determination on petitions filed against the Bills.
The programme for the Parliamentary Week from September 22 to 25 was decided at a meeting of the Committee on Parliamentary Business held on Thursday (10) under the chairmanship of Speaker Dr. Jagath Wickramaratne.
On each sitting day, Parliamentary Business under Standing Orders 22(1) to 22(6) will be taken up from 9.30 am to 10 am, followed by Questions for Oral Answers from 10 am to 11 am Questions under Standing Order 27(2) will be taken up from 11 am to 11.30 am.
On Tuesday (22), the Orders published in Extraordinary Gazette No. 2497/37 under the Petroleum Resources Act and the Promotion of Export Agriculture (Amendment) Bill will be debated from 11.30 am to 5 pm.
The Tredso Development Foundation (Incorporation) Bill, a Private Member’s Bill, will then be taken up for Second Reading before being referred to the Legislative Standing Committee.
An Opposition motion at the Adjournment Time will follow.
On Wednesday (23), the Chartered Institute of Media Professionals of Sri Lanka Bill will be debated from 11.30 am to 5 pm, followed by Questions at the Adjournment Time.
The Second Reading debate on the 22nd Amendment Bill and the Judicature (Amendment) Bill is scheduled for 11.30 am to 7 pm on Thursday (24) and Friday (25).
News
Wrong house targeted in underworld grenade attack: Two children killed
Two children aged 11 and 17 were mistakenly killed and their 55-year-old father injured in an early morning hand grenade attack on Sirisangabo Mawatha on Friday. Police investigations later revealed that the attackers targeted the wrong house during an ongoing underworld clash.
Three police teams have been deployed to investigate the attack, which occurred at around 3 am.
According to police, a man who arrived near the house in a three-wheeler knocked on the front door before throwing a grenade into the premises and fleeing.
The victims were identified as 17-year-old Kasun Rashmika and 11-year-old Duminda Gihan. Their 56-year-old father, Nalin Thusantha Perera, was seriously injured and admitted to the Kalubowila Teaching Hospital.
Police said the injured man’s brother was allegedly a close associate of a drug trafficker known as ‘Sando’ and had also been accused of involvement in drug trafficking.
The brother lives in a house adjoining the one targeted in the attack, and police suspect the grenade may have been thrown at the wrong house.
Police are also investigating information that the attack was allegedly carried out at the direction of several overseas-based drug traffickers, identified as Pandithage Shantha Kumara alias ‘Kos Malli’, Samantha Perera alias ‘Chuwa Samantha’, ‘Kudu Avishka’ and ‘I.D.’
Police said the attack was believed to be linked to an ongoing conflict between two underworld factions, which have targeted each other’s associates in shootings and grenade attacks. More than 20 people have reportedly been killed in such attacks.
Security agencies are also investigating alleged links between one faction and overseas-based criminals including Kanjipani Imran, Unakuruwe Shantha, Dubai Gagana and Handaya.
Security agencies have also received information that overseas-based criminals identified as Kanjipani Imran, Unakuruwe Shantha, Dubai Gagana and Handaya are allegedly behind the supply of firearms and drugs to the faction associated with Kos Malli and Chuwa Samantha.
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