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COPE wants AG to submit report on controversial gas deal

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By Saman Indrajith

Committee on Public Enterprises (COPE) has recommended that Auditor General’s Department conduct an investigation into the cancellation of the Term Tender, approved by the Cabinet to buy gas from Siam Gas at USD 96 per metric ton and the purchase of 100,000 metric tons of gas at a cost of USD 129 per metric ton from an Oman company.

COPE chaired by Prof Charitha Herath made this observation when Litro Gas Lanka Ltd., Litro Gas Terminal Lanka (Private) Ltd., and Sri Lanka Insurance Corporation were summoned before COPE as part of an inquiry to ascertain if the orders given by the previous COPE had been implemented and to discuss their current performance.

It was discovered that tenders had been invited to purchase 2,80,000 metric tons of gas and three gas suppliers had submitted bids. Siam gas Company had offered the lowest price (USD 96) per metric ton, and accordingly the Cabinet had approved to award the tender to that company.

The Litro officials said that gas could not be obtained from Siam gas Company due to the economic crisis as banks in Sri Lanka were unable to submit the Standby Letter of Credit (SBLC) to Litro as per the conditions stipulated during the bidding process.

They further said that during the discussions with the company, Siam had expressed its unwillingness to supply gas without a Standby Letter of Credit (SBLC).

Due to that delay, as a temporary solution, Siam gas Company had suggested that it could provide 15,000 metric tons of gas as an emergency purchase. This is the gross amount of gas required for two weeks. However, the company then said it could supply only 6600 metric tons.

Litro officials also said that the Oman company, which had sent prices at USD 129 per metric ton for the Term Tender, had agreed to provide 100,000 metric tons of gas for four months at 25,000 metric tons per month.

Accordingly, after informing the Cabinet of the situation, the term tender given to Siam gas Company had been cancelled and Cabinet and approval granted for the term tender to purchase 100,000 metric tons of gas from the Omani company.

A USD 70 million loan from the World Bank and 20 million of Litro Gas Lanka Ltd., amounting to USD 90 million in total had been used for this procurement, Muditha Peiris, Chairman of Litro Lanka said.

The COPE chairman instructed the Auditor General’s Department to conduct an investigation and report whether the loan amount of USD 70 million from the World Bank had been properly utilised.

Prof. Herath added that buying gas from the Omani company at a higher price instead of the lowest bidder, Siam, could set a bad precedent.

The committee also inquired why Litro had not been able to purchase gas with USD 160 million allocated for the purchase of gas under the Indian Credit Line.The Litro chairman said that according to the conditions of the Indian government, Litro had to buy gas from the Indian company.

Litro officials said several rounds of discussions had been held on the matter. The COPE Chairman recommended to the Secretary to the Ministry of Finance to look into the issue immediately and submit a report within two weeks.

The attention of the COPE was also drawn to the fact that there were only four directors at Litro. It was revealed that according to the law, there should be five members. Since the Ministry of Finance appoints the members of the Board of Directors, COPE pointed out the need to appoint the Board of Directors as per law. The COPE Chairman recommended the Secretary to the Ministry of Finance to take necessary measures on this.

The COPE discussed the suitability of the same person holding the positions of Chairman and Chief Executive Officer of the company.The COPE also inquired whether Litro could obtain financial support from Sri Lanka Insurance Corporation, the parent company. Chairman of the Sri Lanka Insurance Corporation, Vijitha Herath said that the company had been able to purchase gas in the past due to the deposit of nearly five billion rupees in a state bank.

Representing the Secretary of the Ministry of Finance, Saman Fernando. Deputy Secretary to the Treasury, Chairman of the Sri Lanka Insurance Corporation and former Litro Chairman Vijitha Herath, Litro Chairman Muditha Peiris were present at this meeting whilst Thesara Jayawardane, former chairman of Litro Company, joined online.

Parliamentarians Patali Champika Ranawaka, Mahindananda Aluthgamage, Anura Dissanayaka, (Dr.) Harsha de Silva, (Dr.) Sarath Weerasekera, Jagath Pushpakumara, Indika Anuruddha, S.M Marikkar, Jayantha Samaraweera, (Dr.) Nalaka Godahewa, Premnath C. Dolawatta and Madhura Withanage were present at the meeting.



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BASL takes exception to Justice Ganepola being denied a place in SC

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… highlights injustice caused to Justice R. Gurusinghe

The Bar Association of Sri Lanka (BASL) has alleged that due to the failure on the part of President Anura Kumara Dissanayake to fill the existing vacancies in the Supreme Court, a Senior Justice of the Court of Appeal, Justice Dhammika Ganepola, retired at the age of 63 without being considered for, or granted, a promotion to the Supreme Court, to which he was well entitled. The BASL pointed out at the time of Ganepola’s retirement there were four vacancies in the Supreme Court.

In a letter dated 17 August, 2026, addressed to President Dissanayake, the BASL declared that the failure to promote and recognise Ganepola’s distinguished judicial service, resulting in his retirement at the age of 63, is indeed a loss to the Judiciary.

A top BASL spokesman told The Island yesterday (30) that the Bar Council, over the weekend, had decided to release the hitherto confidential letter.

The official said that they also wanted to remind the President of his assurance given to BASL, on 12 August, 2026, that vacancies in the Supreme Court and Court of Appeal would be filled as soon as possible, within a month.

The following is the text of the BASL letter, signed by  Rajeev Amarasuriya, President, BASL, and its Secretary Nalin De Silva: “We write further to our letters dated 29th December 2025 and 30th June 2026 in relation to the above, to which we have not received any response.

We also refer to our meeting with Your Excellency on 12th August. As discussed during the meeting, there have been vacancies in the Supreme Court since May 2025, and the number of vacancies has now increased to four (04). There are also four (04) vacancies in the Court of Appeal. These are all matters we have already written to Your Excellency about.

Your Excellency informed the BASL Delegation when we met that you would be taking steps to make recommendations to fill these vacancies as soon as possible, within a month.

We write to reiterate the importance of giving due consideration to the criteria set out in our aforesaid letter dated 29th December 2025. We also wish to emphasise that, in making judicial appointments and promotions, seniority should be given due priority, in keeping with longstanding practice, until such time there are objective and defensible guidelines governing the assessment of merit.

The only justifiable departure to this criterion would be where there exists a specific and recognized demerit in respect of the particular Judge concerned or such other known compelling circumstances that are objectively identifiable such as where a Judge has previously been overlooked for promotion unfairly or conversely, where a Judge has been unfairly previously granted promotions above others.

This approach will safeguard both the integrity of the Judiciary and the trust reposed in it by the public.

Further, while there has been considerable discussion and representation by the Government regarding the importance of retaining experienced judges, as reminded to Your Excellency at our said meeting that, only a few months ago on 8th May 2026, a Senior Justice of the Court of Appeal, Justice Dhammika Ganepola, retired at the age of 63 without being considered for, or granted, a promotion to the Supreme Court, to which he was well entitled, and in which there were four vacancies at the time.

The failure to promote and recognise his distinguished judicial service, resulting in his retirement at the age of 63, is indeed a loss to the Judiciary.

We also drew Your Excellency’s attention at the said meeting to the fact that the Senior-most Justice of the Court of Appeal, Justice R. Gurusinghe, who joined the Judicial Service in 1996, who also Acted in the Office of President of the Court of Appeal (appointed by Your Excellency) on 11th May 2026, is due to retire at the end of this month. In fact, we learnt through the Media that Her Ladyship then Chief Justice Justice Murdu Fernando, PC, had previously in July 2025 recommended to Your Excellency the promotion of Justice R. Gurusinghe to the Supreme Court, but the same is pending from that time.

 He too is well deserving of promotion to the Supreme Court and has already been recommended by the former Chief Justice, and his case must also receive due and urgent consideration before his impending retirement.

We hope that Your Excellency will take due note of and give due regard to the concerns of the Bar, as well as to the established principles, practices and conventions governing judicial appointments, when taking steps to fill these vacancies.

On this, Your Excellency is already open to the accusation that these vacancies have been kept open, to fill with favourites of the Government which is yet another serious indictment on the independence of the judiciary which accusation would be confirmed if recommendations are made outside established practice.

Moreover, the BASL expresses grave concern that withholding promotions of Judicial Officers for extended periods of time places undue pressure on Judicial Officers in the discharge of their duties and constitutes both directly and indirectly, interference with the independence of the Judiciary, in addition to the strain obviously caused to the dispensation of justice in other Courts and the stifling and delay of career progression of Judges legitimately entitled to promotions.

We do hope that Your Excellency would take due note and cognizance of the foregoing when effecting these judicial promotions which have been long overdue and which have already adversely impacted the efficiency and effectiveness of the administration of justice.”

The BASL has copied the letter to Prime Minister Dr. Harini Amarasuriya, Speaker Dr. Jagath Wickremaratne, Opposition Leader Sajith Premadasa and all members of the Constitutional Council.

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Sajith challenges govt. to hold PC polls

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Sajith

Opposition Leader Sajith Premadasa on Saturday (29) challenged the government to hold the long-delayed Provincial Council elections, saying the polls would provide an opportunity to gauge the level of public support enjoyed by the administration.

Addressing a farmers’ meeting in Tissamaharama, Hambantota, Premadasa also criticised the latest Rs. 17 per kilogram increase in wheat flour prices, warning that it would push up the prices of bread, bakery products and other flour-based food items and place further pressure on households already struggling with the rising cost of living.

He said Sri Lanka ranked 120th among 130 countries in an international comparison of minimum wages, arguing that wages remained inadequate to meet the escalating cost of living.

Premadasa also questioned official assessments of living standards, asking whether a person could survive for an entire month on Rs. 17,315, a figure he attributed to the Department of Census and Statistics.

He claimed that between 30 and 40 percent of the population was living in poverty and called for a clear programme to help affected families improve their economic conditions.

Turning to the proposed 22nd Amendment to the Constitution, which seeks to increase the retirement age of superior court judges, the Opposition Leader accused the government of attempting to undermine judicial independence and interfere with democratic institutions.

He also criticised the government’s handling of poverty, employment, agriculture, healthcare and investment, saying more effective measures were needed to provide relief to people facing economic hardships.Premadasa called for stronger policies to attract foreign direct investment and urged the government to formulate a national strategy for developing the tourism industry.

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Mahendran denies name change allegation

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Former Central Bank Governor, Singapore citizen Arjuna Mahendran has denied speculation that he has changed his name. In an email to the editor of the Sunday Island, Mahendran has said:

“It has been brought to my attention that a minister of the government of Sri Lanka has made a public statement that I have changed my name. I wish to inform you and your readership that such an allegation is entirely false. I would be grateful if this statement is published by your esteemed newspaper.”

The mail was signed Lakshman Arjuna Mahendran, 20 Cuscaden Road, Singapore.

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