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Delhi, Colombo should build on Trincomalee deal with broader strategy’: Lankan envoy

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Lankan High Commissioner in India Milinda Moragoda said the two countries should move on from the transactional phase and look at the bigger picture, including integrating Sri Lanka into India’s overall energy security policy India and Sri Lanka should forge a larger strategic framework that builds on the Indian presence in key projects such as the Trincomalee oil tank farm and Colombo port and benefits both countries, Sri Lankan high commissioner Milinda Moragoda has said, according to a report in The Hindustan Times.

Moragoda sought to play down Chinese foreign minister Wang Yi’s recent remarks that no “third party” should interfere in China-Sri Lanka ties by citing the comments of Prime Minister Mahinda Rajapaksa, who said that China is a very close friend of Sri Lanka while India “is our brother and sister”.

Sri Lanka inked a deal with a subsidiary of Indian Oil Corporation (IOC) last week for the long-gestating project to refurbish and develop the British-era Trincomalee oil farm, an 850-acre storage facility with a capacity of almost one million tonnes.

The Hindustan Times report said: State-owned Sri Lanka Ports Authority and Adani Group finalised a deal last year to develop the west container terminal at Colombo port. Dredging work at the terminal is expected to start later this month.

In an “integrated country strategy” document that Moragoda prepared before assuming office in India last year, he suggested that the two sides should evolve from a transactional stage to a strategic, and then a special relationship. He said in an interview on Thursday the time has come for both sides to move on from the transactional phase and look at the bigger picture, including integrating Sri Lanka into India’s overall energy security policy.

“The west terminal [at Colombo port] and the tank farm are two very important transactions, As I see it, the two sides should move seamlessly into the strategic area,” he said, adding he perceived the Trincomalee deal as “integrating Sri Lanka with India in the petroleum, oil and gas sector”.

The two sides should jointly develop a business plan for the Trincomalee tank farm that accounts for projections that India’s energy needs will grow by 50% by 2030 and the need for refining capacity will go up 30%. The two sides can look into joint oil and gas exploration in the Cauvery basin and developing a refining facility at Trincomalee, Moragoda said.

“For us, Trincomalee could potentially be a petroleum hub for India, both for storage and refining. Trincomalee can only service India, it is too far away from sea lanes…We need to think strategically and that’s going to be the next step. Looking at this narrowly as a tank farm transaction would be wrong,” he said.

Oil storage and refining facilities at Trincomalee will also boost Sri Lanka’s energy security. “As India is the world’s third-largest energy consumer, it can get much better deals for petroleum than Sri Lanka. We can work with India on our requirements and it will give us energy security,” he said.

Asked about Chinese foreign minister Wang’s remarks, during a recent visit to Colombo, that no “third party” should interfere in China-Sri Lanka relations, Moragoda said: ” Prime Minister Mahinda Rajapaksa always has a very pithy way of putting things and when he was asked about this, he always said China is a very close friend, but India is our brother and sister.”

He added, “So it’s a different relationship. For us to interpret that comment doesn’t make sense, given the relationship with India.”

Wang’s remarks were widely perceived in New Delhi as a reference to India, especially against the backdrop of India’s opposition to projects under the Belt and Road Initiative in the neighbourhood.

Cooperation on the Trincomalee tank farm, held up since 1987, has been followed by Indian assistance for Sri Lanka to overcome a severe economic crisis, including depleting foreign currency reserves that experts believe can lead to a default on external debt. Following a meeting with Indian envoy Gopal Baglay in Colombo on Thursday, Sri Lanka’s Central Bank governor Ajith Nivard Cabraal tweeted India will provide a SAARC currency swap and other forms of cooperation.

The SAARC currency swap will be for $400 million and India has deferred $500 million due to the Asian Clearing Union for two months. Moragoda said more developments are expected in this regard in the coming weeks.

Sri Lanka expects to get a revolving credit line of $500 million from India’s Exim Bank for buying petrol and diesel and another package for emergency purchases of food and medicines. Steps are being taken to operationalise a line of credit offered by India for counter-terrorism efforts and a grant for a naval floating dock, Moragoda said.

“Sri Lanka is the largest recipient of Indian defence scholarships, and at any time 600 to 700 of our personnel are training in India. We want to increase this and expand it to the police,” he said.

“We’re planning to use the Aadhar card as a template for Sri Lanka’s ID card. Our president is very, very enthusiastic about it. He’s also the minister in-charge of the science and technology sector. Those discussions are ongoing,” he added.



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Landslide Early Warnings issued to the Districts of Badulla, Kandy, Matale, Monaragala and Nuwara Eliya

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The Landslide Early Warning Center of the the National Building Research Organaisation [NBRO] has issued landslide early warnings to the districts of Badulla, Kandy, Matale, Monaragala and Nuwara Eliya for a period of 24 hours effective from 1200 noon today [07th January].

Accordingly,
LEVEL III RED landslide early warnings have been issued to the divisional secretaries divisions and surrounding areas of Udadumbara in the Kandy district, and Nildandahinna and Walapane in the Nuwara Eliya district.

LEVEL II AMBER landslide early warnings have been issued to the divisional secretaries divisions and surrounding areas of Kandaketiya in the Badulla district, Wilgamuwa in the Matale district, and Mathurata and Hanguranketha in the Nuwara Eliya district.

LEVEL I YELLOW landslide early warnings have been issued to the divisional secretaries divisions and surrounding areas of Meegahakiwula, Lunugala, Welimada, Passara, Badulla and Hali_Ela in the Badulla district, Doluwa in the Kandy district,Ambanganga Korale in the Matale district, and Bibile in the Monaragala district

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Prez seeks Harsha’s help to address CC’s concerns over appointment of AG

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Chairman of the Committee on Public Finance (CoPF), MP Dr. Harsha de Silva, told Parliament yesterday that President Anura Kumara Dissanayake had personally telephoned him in response to a letter highlighting the prolonged delay in appointing an Auditor General, a vacancy that has remained unfilled since 07 December.

Addressing the House, Dr. de Silva said the President had contacted him following the letter he sent, in his capacity as CoPF Chairman, regarding the urgent need to appoint the constitutionally mandated head of the National Audit Office. During the conversation, the President had sought his intervention to inform the Constitutional Council (CC) about approving the names already forwarded by the President for consideration.

Dr. de Silva said the President had inquired whether he could convey the matter to the Constitutional Council after their discussion. He stressed that both the President and the CC must act in cooperation and in strict accordance with the Constitution, warning that institutional deadlock should not undermine constitutional governance.

He also raised concerns over the Speaker’s decision to prevent the letter he sent to the President from being shared with members of the Constitutional Council, stating that this had been done without any valid basis. Dr. de Silva subsequently tabled the letter in Parliament.

Last week, Dr. de Silva formally urged President Dissanayake to immediately fill the Auditor General’s post, warning that the continued vacancy was disrupting key constitutional functions. In his letter, dated 22 December, he pointed out that the absence of an Auditor General undermines Articles 148 and 154 of the Constitution, which vest Parliament with control over public finance.

He said that the vacancy has severely hampered the work of oversight bodies such as the Committee on Public Accounts (COPA) and the Committee on Public Enterprises (COPE), particularly at a time when the country is grappling with a major flood disaster.

As Chair of the Committee responsible for overseeing the National Audit Office, Dr. de Silva stressed that a swift appointment was essential to safeguard transparency, accountability and financial oversight.

In a separate public statement, he warned that Sri Lanka was operating without its constitutionally mandated Chief Auditor at a critical juncture. In a six-point appeal to the President, Dr. de Silva emphasised that an Auditor General must be appointed urgently in the context of ongoing disaster response and reconstruction efforts.

“Given the large number of transactions taking place now with Cyclone Ditwah reconstruction and the yet-to-be-legally-established Rebuilding Sri Lanka Fund, an Auditor General must be appointed urgently,” he said in a post on X.

By Saman Indrajith

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Govt. exploring possibility of converting EPF benefits into private sector pensions

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The NPP government was exploring the feasibility of introducing a regular pension, or annuity scheme, for Employees’ Provident Fund (EPF) contributors, Deputy Minister of Labour Mahinda Jayasinghe told Parliament yesterday.

Responding to a question raised by NPP Kalutara District MP Oshani Umanga in the House, Jayasinghe said the government was examining whether EPF benefits, which are currently paid as a lump sum at retirement, could instead be converted into a system that provides regular payments throughout a retiree’s lifetime.

“We are looking at whether it is possible to provide a pension,” Jayasinghe said, stressing that there was no immediate plan to abolish the existing lump-sum payment. “But we are paying greater attention to whether a regular payment can be provided throughout their retired life.”

Jayasinghe noted that the EPF was established as a social security mechanism for private sector employees after retirement and warned that receiving the entire fund in a single installment could place retirees at financial risk, particularly as life expectancy increases.

He also cautioned that interim withdrawals from the EPF undermined its long-term sustainability. “Even the interim payments that are given from time to time undermine the ability to give security at the time of retirement,” he said, distinguishing the EPF from the Employees’ Trust Fund, which provides more frequent interim benefits.

Addressing concerns over early withdrawals, the Deputy Minister explained that contributors have been allowed to withdraw up to 30 percent of their EPF balance since 2015, with a further 20 percent permitted after 10 years, subject to specific conditions and documentary proof.

Of 744 applications received for such withdrawals, 702 had been approved, he said.

The proposed shift towards an annuity-based system comes amid broader concerns over Sri Lanka’s ageing population and pressures on retirement financing. While state sector employees receive pensions funded by taxpayers, including EPF contributors, the EPF itself has been facing growing strain as it is also used to finance budget deficits.

Jayasinghe said the government’s focus was to formulate a mechanism that would ensure long-term income security for private sector employees, placing them on a footing closer to a pension scheme rather than a one-time retirement payout.

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