News
Energy Secretary says LIOC free to adopt commercial pricing; CPC suffers further losses
Conflicting claims regarding Act No 35 of 2002
By Shamindra Ferdinando
Energy Ministry Secretary K. D. R. Olga yesterday (28) said that in terms of the agreement between Sri Lanka and India, Lanka India Oil Company (LIOC) could adopt commercial pricing.
The Ministry Secretary said so when The Island sought her response to several price revisions effeced by the LIOC recently.
LIOC and CPC (Ceypetco) sell a litre of petrol at Rs 303 and Rs 254, respectively. A litre of diesel is sold at Rs 176 at both LIOC and CPC service stations. The Indian enterprise is believed to be considering revising the price of diesel, as well.
SJB trade union spokesman and former CPC employee Ananda Palitha has repeatedly alleged that the LIOC has discouraged customers by maintaining a substantial price difference. Palitha insists that the absence of a pricing mechanism in terms of Act No 35 of 2002 has been to the disadvantage of the CPC. Ananda Palitha has challenged political parties represented in Parliament to explain why the proposed mechanism couldn’t be established over the past 20 years.
The Act, enacted during Ranil Wickremesinghe’s premiership, in 2002, provided for the establishment of the Public Utilities Commission of Sri Lanka to regulate certain public utilities, including petroleum, electricity and water.
However, Energy Secretary Olga emphasised that LIOC enjoyed the freedom to decide on a pricing formula on its own. According to her, the Energy Ministry couldn’t intervene in the LIOC decision-making process. The LIOC entered the local market during Wickremesinghe’s tenure as the Premier in 2003. At the onset of its operation here, the LIOC took over one third of the service stations, belonging to the CPC. Since then, the LIOC has expanded its operations here.
SJB lawmaker Mujibur Rahuman said that in spite of repeated assurances to restore an uninterrupted fuel supply, consumers had been severely inconvenienced. The Colombo District MP pointed out that people had blocked the Colombo-Negombo road at Kapuwatte yesterday (28), asking the government to make fuel freely available. Responding to another query, MP Rahuman said the Presidential Media Division (PMD) and the Energy Ministry had repeatedly promised to normalise the fuel supply, though long queues in Colombo and its suburbs as well as the provinces proved the crisis still prevailed.
Lawmaker Rahuman said that contrary to government claims, countrywide fuel shortages continued with many LIOC and CPC service stations remaining closed. Some issued only petrol.
Referring to a recent media statement issued by the Tourism Ministry regarding efforts made by the relevant authorities to normalise fuel distribution in the Gampaha district, MP Rahuman said those in authority seemed either clueless or utterly irresponsible.
MP Rahuman asked whether the fuel distribution and the power supply had improved after President Gotabaya Rajapaksa brought in Gamini Lokuge in place of Energy Minister Udaya Gammanpila in the first week of March. The situation has deteriorated to such an extent now the government would have to consider extending ongoing power cuts, MP Rahuman said. According to him, the recent declaration made by the Energy Ministry pertaining to a sharp drop in water levels, in all reservoirs, indicated that power cuts could be further extended soon.
MP Rahuman said that the CPC and Laugfs had no alternative but to match the LIOC’s petrol prices soon. The MP pointed out that the CPC always matched the LIOC prices.
News
Regulatory rollback tailored for “politically backed megaprojects”— Environmentalists
Investigations have revealed that the government’s controversial easing of environmental regulations appears closely aligned with the interests of a small but powerful coalition of politically connected investors, environmentalists have alleged.
The move weakens key Environmental Impact Assessment (EIA) requirements and accelerates approvals for high-risk projects, has triggered a storm of criticism from environmental scientists, civil society groups and even sections within the administration, they have claimed.
Environmental Scientist Hemantha Withanage, Executive Director of the Centre for Environmental Justice, told The Island that the policy reversal “bears the fingerprints of elite political financiers who view Sri Lanka’s natural assets as commodities to be carved up for profit.”
“This is not accidental. This is deliberate restructuring to favour a specific group of power brokers,” he told The Island. “The list of beneficiaries is clear: large-scale mineral extraction interests, luxury hotel developers targeting protected coastlines, politically backed hydropower operators, industrial agriculture companies seeking forest land, and quarry operators with direct political patronage.”
Information gathered through government insiders points to four clusters of projects that stand to gain substantially:
Several politically shielded operators have been lobbying for years to weaken environmental checks on silica sand mining, gem pit expansions, dolomite extraction and rock quarrying in the central and northwestern regions.
High-end tourism ventures — especially in coastal and wetland buffer zones — have repeatedly clashed with community opposition and EIA conditions. The rollback clears obstacles previously raised by environmental officers.
At least half a dozen mini-hydro proposals in protected catchments have stalled due to community objections and ecological concerns. The new rules are expected to greenlight them.
Plantation and agribusiness companies with political links are seeking access to forest-adjacent lands, especially in the North Central and Uva Provinces.
“These sectors have been pushing aggressively for deregulation,” a senior Ministry source confirmed. “Now they’ve got exactly what they wanted.”
Internal rifts within the Environment Ministry are widening. Several senior officers told The Island they were instructed not to “delay or complicate” approvals for projects endorsed by select political figures.
A senior officer, requesting anonymity, said:
“This is not policymaking — it’s political engineering. Officers who raise scientific concerns are sidelined.”
Another added:”There are files we cannot even question. The directive is clear: expedite.”
Opposition parliamentarians are preparing to demand a special parliamentary probe into what they call “environmental state capture” — the takeover of regulatory functions by those with political and financial leverage.
“This is governance for the few, not the many,” an Opposition MP told The Island. “The rollback benefits the government’s inner circle and their funders. The public gets the consequences: floods, landslides, water scarcity.”
Withanage issued a stark warning:
“When rivers dry up, when villages are buried in landslides, when wetlands vanish, these will not be natural disasters. These will be political crimes — caused by decisions made today under pressure from financiers.”
He said CEJ was already preparing legal and public campaigns to challenge the changes.
“We will expose the networks behind these decisions. We will not allow Sri Lanka’s environment to be traded for political loyalty.”
Civil society organisations, environmental lawyers and grassroots communities are mobilising for a nationwide protest and legal response. Several cases are expected to be filed in the coming weeks.
“This is only the beginning,” Withanage said firmly. “The fight to protect Sri Lanka’s environment is now a fight against political capture itself.”
By Ifham Nizam
News
UK pledges £1 mn in aid for Ditwah victims
The UK has pledged £1 million (around $1.3 million) in aid to support victims of Cyclone Ditwah, following Acting High Commissioner Theresa O’Mahony’s visit to Sri Lanka Red Cross operations in Gampaha.
“This funding will help deliver emergency supplies and life-saving assistance to those who need it most,” the British High Commission said. The aid will be distributed through humanitarian partners.
During her visit, O’Mahony toured the Red Cross warehouse where UK relief supplies are being prepared, met volunteers coordinating relief efforts, and visited flood-affected areas to speak with families impacted by the cyclone.
“Our support is about helping people get back on their feet—safely and with dignity,” she said, adding that the UK stands “shoulder to shoulder with the people of Sri Lanka” and will continue collaborating with the government, the Red Cross, the UN, and local partners in recovery efforts.
She was accompanied by John Entwhistle, IFRC Head of South Asia, and Mahesh Gunasekara, Secretary General of the Sri Lanka Red Cross.
News
WFP scales up its emergency response in Sri Lanka
The United Nations World Food Programme (WFP) has scaled up its emergency response in Sri Lanka following the devastation caused by Cyclone Ditwah, thanks to a generous AUD 1.5 million contribution from the Government of Australia. This support is enabling WFP to deliver life-saving fortified food and provide cash assistance to families most affected by the disaster, Australian High Commission said in a release yesterday.
It said: The first airlift of fortified biscuits – 10 metric tonnes from WFP’s humanitarian hub in Dubai arrived in Sri Lanka, with upto 67 metric tonnes expected in the coming days. WFP has already dispatched fortified biscuits to Nuwara Eliya and Kegalle. Further deliveries are planned for Badulla and Kandy, among the hardest-hit districts.
“Australia stands with Sri Lanka at this devastating time. We are proud to work closely with our longstanding humanitarian partner the WFP, as well as with the Sri Lankan government and local authorities, to rapidly respond to meet the urgent needs of those affected communities,” said Australia’s High Commissioner to Sri Lanka, Matthew Duckworth.
WFP’s fortified biscuits provide a quick boost of energy and nutrition when families need it most.
“As rescue operations wind down, our priority is delivering life-saving fortified food to tackle immediate food needs of affected families, targeting especially those most at risk – children, older persons, pregnant and breastfeeding women, and people with disabilities, who often bear the brunt of such crises,” said Philip Ward, Representative and Country Director of the World Food Programme.
Australia’s contribution will also fund cash assistance programmes, complementing Government efforts to help families meet essential needs and rebuild their lives. WFP continues to appeal for additional donor support to sustain emergency operations and accelerate recovery for communities devastated by Cyclone Ditwah.
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