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SJB questions Kanchana over suspension of fuel pricing formula, USD 3 bn debt to suppliers

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‘Petroleum, water services, too, should be under electricity regulator’

By Shamindra Ferdinando

The Convenor of the combined trade union front, in fuel, ports and power sectors of the Samagi Jana Balavegaya (SJB), Ananda Palitha, yesterday (04) alleged that consumers had been deprived of the benefit of the continuing drop in world crude oil prices as the government had suspended the cost-reflective fuel pricing formula, introduced in late May last year.

Having declared that the new pricing formula would be adjusted bi-monthly, or monthly, the government had conveniently discarded the mechanism, Ananda Palitha alleged.

Power and Energy Minister, Kanchana Wijesekera, owed the public an explanation why the pricing formula had been suspended for about six months.

Responding to The Island queries, the former CPC/Ceylon Petroleum Storage Terminals Ltd. (CPSTL) employee claimed that a litre of petrol, both 92 and 95, as well as diesel, could be sold much less than the current prices charged from consumers.

The failure on the part of the Power and Energy Ministry to implement the pricing formula had paved the way for the Indian Oil Corporation’s subsidiary in Sri Lanka, Lanka IOC, to earn massive profits at the expense of the bankrupt country.

Lanka IOC, incorporated in 2003, to carry out retail marketing and bulk supply to industrial consumers owns one-third of shares in CPSTL, Palitha said.

The trade union activist said that a joint parliamentary group should inquire into what was going on in the petroleum sector as successive ministers, given the responsibility of managing the vital sector, caused irreparable harm by pursuing agendas inimical to the national economy. The incumbent Minister Wijesekera is not an exception, the trade union leader added.

Had petroleum and water utilities, too, been brought under the Public Utilities Commission, established in 2002, as was originally envisaged, the issues at hand could have been handled in a different way, the SJB activist said.

In spite of the Commission being designated the regulator for petroleum and water utilities, successive governments conveniently refrained from bringing them under the Commission by way of Parliamentary Acts, Ananda Palitha said.

Ananda Palitha pointed out how the Chairman of the Commission, Janaka Ratnayaka, in spite of quite heavy political pressure, stood by the public in the face of relentless pressure exerted by the government, hell-bent on going ahead with massive tariff hikes.

The trade unionist said that all political parties, represented in Parliament, should be held accountable for the developing crisis. According to Ananda Palitha, the non-inclusion of petroleum sector and water services industries was deliberate and meant to prevent the regulator from doing his job, in the interest of the country, consumer and fair play.

Referring to the continuing crisis at the Sapugaskanda oil refinery, Ananda Palitha said that those who disrupted the supply of crude oil, delivered heavy blows to the CEB. “By disrupting operations, they thwarted the supply of naphtha, diesel and furnace oil. Everyone knows who benefits from such disruptions,” Ananda Palitha said.

Commenting on President Ranil Wickremesinghe demanding explanations from the CPC and SriLankan Airlines over the payment of bonuses, at the end of 2022, Ananda Palitha asked how Wickremesinghe, who held the Finance portfolio, didn’t know what was going on.

 

The Wickremesinghe-Rajapaksa government should be ashamed, if it really didn’t know until the workers of those institutions were paid bonuses. Referring to a media statement, issued by the Presidential Media Division (PMD), Tuesday evening, in this regard, Ananda Palitha questioned the status of CPSTL, jointly run by the CPC and Lanka IOC.

Ananda Palitha said that the CPC owed suppliers as much as USD 3 bn whereas the government was down on its knees before the Washington-based International Monetary Fund (IMF) for USD 2.9 bn spread over a period of four years.

Of this staggering amount, the CPC owed USD 700 mn to India and this needed to be settled in March-April this year, Ananda Palitha said, adding that the country owed a further USD 800 mn to other suppliers. There was also a long outstanding payment to Iran, believed to be USD 425 mn.

The political activist alleged that USD 45 mn paid for the procurement of crude oil, under controversial circumstances, was missing.

Meanwhile, the government was in the process of clearing the way for the privatization of both the CEB and the State Banks, he alleged.

 

 

 

 

 

 



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Controversy over absence of Agriculture Minister, Deputy at NPP’s inaugural farmers’ rally

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Lal Kantha / Karunaratne

By Shamindra Ferdinando

The absence of Agriculture Minister Lal Kantha and his Deputy Namal Karunaratne at the NPP’s farmers’ rally at Polonnaruwa, on Saturday (12) revealed the government’s failure to address the problems faced by the farming community, the SLPP says.

Former Kalutara District SLPP MP Sanjeewa Edirimanna said that politburo member Lal Kantha, who represented the NPP’s highest decision-making body, and his Deputy, Karunaratne, couldn’t face the farmers, and hence their absence at Saturday’s rally. Their absence underscored the gravity of the situation, Edirimanna said, thanking the NPP for openly acknowledging the crisis in the agricultural sector.

Kandy District MP Lal Kantha was not immediately available for comment. When The Island sought an explanation from Deputy Minister Karunaratne regarding their absence, he said that there was no need for all of them to attend each and every NPP rally.

President Anura Kumara Dissanayake addressed Saturday’s gathering on behalf of the party and there shouldn’t be any issue over their absence, MP Karunaratne said.

Karunaratne said so when The Island pointed out that their presence mattered as it was the inaugural farmers’ rally held almost two years after the last presidential election.

MP Karunaratne claimed that the Polonnaruwa rally was not on his schedule for 12 Sept.

Ex-MP Edirimanna pointed out that Minister Lal Kantha had addressed both the Bulathsinhala and Beruwala rallies, held on 6 Sept., which marked the commencement of the NPP propaganda campaign, launched amidst growing dissent over the way the government sought to enact the 22nd Amendment to the Constitution.

Edirimanna said that the NPP couldn’t justify both Ministers in charge of agriculture skipping the Polonnaruwa rally. Responding to another query, Edirimanna said that he wouldn’t attribute their absence to any internal conflict but the NPP’s overall failure to address the growing grievances of the farming community.

Edirimanna said that in spite of promises, the NPP had pathetically failed to ensure a reasonable pricing formula for paddy. The President again promised to implement an efficient paddy purchasing scheme at the next harvesting season, the ex-MP said, adding that the government should be ashamed and accept responsibility.

Edirimanna stressed that the government’s vow to implement a mandatory price for different varieties of paddy remained just a promise.

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Thousands march in Jaffna demanding international investigation into Chemmani

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A section of the demonstrators engaged in Jaffna protest on Subday (pic courtesy Tamil Guardian)

A demonstration was held in Jaffna on Sunday (14) demanding an international investigation into the Chemmani mass grave, which protesters said constitutes evidence of the genocide committed against Tamils, Tamil Guardian HAS reported.

The procession began near the United Nations office, close to the Kailasa Pillayar Temple in Nallur, and proceeded to Kittu Park, where it concluded with a public gathering. Protesters demanded an international inquiry into the 583 sets of human skeletal remains and other evidence recovered from the site.

The rally was organised jointly by the Tamil National Council and civil society organisations, which had called for the excavation, preservation and forensic analysis of Chemmani and other mass graves to be placed entirely under the responsibility of the United Nations, without intervention by the Sri Lankan state.

A party alleged to have been responsible for a crime cannot be expected to exercise exclusive control over the evidence needed to investigate it, the council argued ahead of the demonstration, warning that placing such material under the control of an alleged perpetrator creates a risk that evidence could be damaged or compromised, Tamil Guardian reported.

Alongside the Chemmani demands, the organisers had called for an independent international criminal investigation into the genocide of Tamils, the transfer of evidence to the International Criminal Court, the immediate release of political prisoners held under the Prevention of Terrorism Act and the repeal of that legislation, the withdrawal of the military from the North-East, the return of occupied land, and international recognition of the Eelam Tamil people’s right to self-determination.

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FAC that sank last month recovered in salvage operation

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The Navy Fast Attack Craft (FAC) that sank off Angulana in August after colliding with a shipwreck was brought to Colombo Port over the weekend (Pic courtesy SLN).

The Sri Lanka Navy recovered its Fast Attack Craft P 4447 following a successful salvage operation, bringing a multi-stage emergency response to a close.

The craft sank during a routine patrol, on 15 August 2026, off Angulana, after colliding with a previously sunken bulk carrier. It was brought to the surface on 11 September from a depth of approximately 80 feet. It was subsequently towed to the Colombo Dockyard premises.

The initial phase of the operation, immediately following the incident, focused on search and rescue. A joint effort, involving the Navy, Air Force, Police, and local fishermen from Angulana, helped rescue of 11 crew members. The search and rescue phase drew to a close with the recovery of the remains of the Second in Command of the craft, on 4th September.

Following the search and rescue phase, specialised Navy diving and salvage teams launched a dedicated recovery phase against rough sea conditions and underwater challenges, adhering to strict safety protocols. The Navy’s marine, hull, electrical, and electronic engineering teams utilised specialised technical know-how and equipment to raise the vessel in stages, the Navy said.

Technical support and specialised expertise were also extended by the Sri Lanka Ports Authority and Colombo Dockyard PLC.

The salvaged FAC (pic courtesy SLN media)

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