News
Delays in unloading fuel cost state coffers dear: Unionist
Latest payment over USD 1 mn for diesel, petrol carrying ships
Bowser owners call off strike after receiving 30 percent increase
By Shamindra Ferdinando
The cash-strapped government has to pay over USD 1 mn as demurrage for the delay in unloading two shiploads of diesel and petrol (92 and 95).
Samagi Jana Balavegaya (SJB) trade union convenor Ananda Palitha yesterday (02) said that the government owed an explanation regarding the unbelievable waste of funds at a time the country was seeking IMF’s intervention and assistance from China, India and other major powers.
Palitha said that two consignments had been supplied by Vitol Asia (Singapore) Pvt. Ltd., in terms of an agreement with the Ceylon Petroleum Corporation (CPC). In late Oct 2021, the CPC awarded contracts to supply diesel and petrol (both 92 and 95) from January 2022 to August 2022 to Vitol Asia (Singapore) Pvt Ltd.
Responding to questions, Ananda Palitha said that the unloading of the vessel Swarna Pushp carrying diesel began over the weekend, following 31 days at sea, due to Sri Lanka’s failure to make the required payment. For 31 days demurrage could amount to USD 558,000. The final payable amount would be much higher as demurrage was applicable to the unloading period, Palitha said. The oil products tanker is plying under the Indian flag.
According to the SJB activist, another vessel, Torm Adventurer, which arrived on March 28 carrying 38,000 mt of petrol 92 and 95 was yet to begin unloading. Sri Lanka now owed the vessel over USD 600,000 as demurrage fees for 34 days delay in unloading.
Palitha said that everyday an additional USD 18,000 was added to the total amount.
Energy Ministry Secretary K.D.R. Olga and CPC Chairman Sumith Wijesinha were not immediately available for comment.
Palitha said that Parliament should take up the issue.
Palitha emphasised that the CPC should have explored the possibility of bringing in two shipments in terms of the USD 500 mn Indian credit line instead of scheduling supplies from Vitol Asia (Singapore) Pvt. Ltd., if the Treasury was so desperate.
Commenting on the strike launched by the tanker owners’ association over the last weekend demanding an increase in transport costs taking into consideration increase in the price of spare parts, service charges et al, Palitha said that the new Energy Minister Kanchana Wijesekera instead of initiating a dialogue had simply dismissed the association’s plea.
The association asked for a 60 percent increase though finally the two parties agreed for a 30 per cent increase. The association immediately called off the strike.
Palitha said that the Energy Ministry had given in quickly as it realised contrary to claims of urgent counter measures, the government didn’t have the wherewithal to maintain the distribution network. The trade union activist said that the association members operated 600 bowsers whereas the government didn’t have even 70 bowsers at its disposal.
The strike resulted in serious disruption to fuel supply countrywide as pressure mounted on the government to settle the political crisis.
Prof. Charitha Herath, Chairman of the Committee of Public Enterprises (COPE) assured that his outfit would soon inquire into payment of demurrage fees. Lawmaker Herath gave the assurance when The Island raised the issue with him.
Latest News
Commander of the Navy pays courtesy call on Speaker of the Parliament
The Commander of the Navy, Vice Admiral Damian Fernando paid a courtesy call on the Speaker of the Parliament, Dr Jagath Wickramaratne at the Office of the Speaker, today (7 July
2026).
The meeting marked the Commander of the Navy’s first official interaction with the Speaker following his assumption of command of the Sri Lanka Navy. During the cordial discussion, they exchanged views on the Navy’s role in matters of national importance.
The formal meeting drew to a close with an exchange of mementoes, signifying the importance of the occasion.
News
Prison mayhem leaves at least 26 dead; five officers killed in revenge violence
At least 26 people, including five prison officers and 20 inmates, have been confirmed dead following violent unrest at Negombo Prison, hospital sources said yesterday, as authorities struggled to restore full control over the facility.
According to unconfirmed reports the prison officers were killed by rioters yesterday morning, in retaliation, and weapons carried by those officers were grabbed by them.
Negombo General Hospital Director Consultant Dr. Pushpa Gamlath said nearly 100 injured persons had been admitted, following the clashes, and eight of the critically wounded had been transferred to the National Hospital, in Colombo, for further treatment.
The violence, which initially broke out on Sunday (5) between remand prisoners and convicted inmates, left two inmates dead and 38 others injured before being temporarily brought under control.
However, tensions flared again on Monday (6), with prison officials reporting renewed unrest inside the facility despite earlier assurances that the situation had stabilised.
Police said the initial confrontation was triggered by a dispute linked to the exposure of an alleged drug trafficking network, operating within the prison, and was reportedly orchestrated by a drug trafficker, identified as Suresh, who is said to have links to an underworld figure known as ‘Booru Moona’.
The violence rapidly escalated, with female inmates staging a protest on the Prison roof in support of those involved in the clashes, while relatives gathered outside demanding information on detainees. Police later facilitated visits for selected family members to hospitalised inmates.
The Negombo Prison, which houses around 1,800 remand and convicted inmates, descended into widespread disorder as rival groups clashed, with reports indicating that the violence later spread beyond the initial confrontation.
Authorities said rioting inmates had allegedly seized firearms during the renewed unrest on Monday, prompting heightened security measures.
The Sri Lanka Air Force deployed drones for aerial surveillance and a Bell 412 helicopter to monitor the situation, while additional military personnel were sent to reinforce security around the prison.
Prisons Department spokesperson A.C. Gajanayake said a special investigation team had been appointed, under the direction of the Commissioner General of Prisons, to probe the incident, while a separate police investigation is also underway.
Justice Minister Harshana Nanayakkara told The Island that he had called for a detailed report on the disturbances.
By Norman Palihawadane
News
Cleaner, cheaper electricity gathers momentum with rapid progress in 50 MW Mannar wind power project
Sri Lanka’s drive towards cleaner and cheaper electricity gathered fresh momentum with the reported rapid progress in the 50 MW Mannar Wind Power Project, which is expected to produce the lowest-cost wind-generated electricity in the country’s history while saving billions of rupees in annual fuel imports.
The Ministry of Energy announced that the first wind turbine for the project had already arrived in the country, while the remaining turbine components have reached the Port of Trincomalee and are currently being unloaded, signalling a major milestone in the construction of one of the country’s key renewable energy ventures.
The project, inaugurated by President Anura Kumara Dissanayake, in January this year, is expected to become a cornerstone of the government’s strategy to transform Sri Lanka’s electricity sector by expanding renewable energy generation and reducing dependence on imported fossil fuels.
According to the Ministry, electricity generated by the Mannar wind farm will be purchased at USD 0.0465 (approximately Rs. 14.37) per unit, making it the lowest tariff ever secured for wind-generated electricity in Sri Lanka.
Energy experts say the competitive tariff demonstrates the growing economic viability of renewable energy and could help stabilise future electricity prices.
The Ministry also estimates that once the wind farm is connected to the national grid, Sri Lanka will save approximately Rs. 4.7 billion annually by reducing the import of fossil fuels required for thermal power generation, easing pressure on the country’s foreign exchange reserves.
The Mannar project is expected to support the government’s ambition of substantially increasing the contribution of renewable energy to the national electricity mix, by 2030, while helping Sri Lanka move towards its long-term goal of achieving net-zero carbon emissions by 2050.
Hayleys Fentons PLC, selected through an international competitive bidding process, is responsible for the installation and maintenance of the wind turbines.
The National System Operator (NSO), operating under the Ministry of Energy, will oversee the integration and management of electricity generated by the project within the national grid.
By Ifham Nizam
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