Connect with us

News

Ex-COPE chief calls for punitive surcharge

Published

on

Prof. Chaitha Herath expressing serious concerns about some state enterprises trying to manipulate government procedures at the expense of public sector financial discipline.

Litro legal wrangle:

By Shamindra Ferdinando

Former Chairman of the Committee on Public Enterprises (COPE) Prof. Charitha Herath has said the government is duty bound to prevent questionable actions of those who are at the helm of public sector enterprises.

The MP has suggested that those responsible for such actions be made to compensate the relevant enterprise for losses they cause.

Addressing the members of the Sri Lanka Audit Services Association at its 63rd AGM held at the Waters Edge, Battaramulla, early this week, Prof. Herath revealed that the state-owned Litro Gas had resorted to legal action at a cost of approximately Rs 20 mn in a bid to prevent the Auditor General’s scrutiny of its transactions.

Prof. Herath said that Litro shouldn’t be allowed to avoid government supervision under any circumstances.

If necessary laws had been available, a surcharge could have been imposed on those responsible, Prof. Herath said.

Pointing out that the Litro management had moved the Supreme Court in a bid to block the Auditor General, Prof. Herath said 99 percent of the shares of Litro were held by the State-owned Sri Lanka Insurance Company (SLIC).

During the first session of the 9th Parliament, the COPE inquired into the circumstances under which Litro had avoided the State auditing process for nearly two years.

Prof. Herath said: “We were finally able to defeat their attempt. Auditing resumed after the change at the top.”

In July last year, President Gotabaya Rajapaksa brought in Theshara Jayasinghe as Chairman and Chief Executive Officer (CEO) at Litro. The Viyathmaga activist succeeded Anil Koswatte. Subsequent to the change at the top, a comprehensive audit that had been undertaken on the instructions of Auditor General WPC Wickremaratne recently revealed the amounts categorised as legal fees. Among those whose services had been obtained were Romesh de Silva, PC and Sanjeeva Jayawardena, PC, Chairman of the Monetary Board Risk Oversight Committee, in addition to being the Chairman of the Ethics Committee of the Central Bank.

MP Herath alleged that a despicable attempt had been made to make use of a line or two in the Constitution to deprive the AG of the right to audit the profit-making enterprise.

Prof. Herath asked whether some heads of public enterprises acted outside the purview of the top political authority. MP Herath called for legal provision for recovering losses due to questionable decisions taken by those at the helm of such enterprises.

The UNP-led yahapalana government rejected government auditors’ plea for provision in the National Audit Bill (NAB) to recover losses caused by questionable actions. The Parliament endorsed the NAB in early July 2018 after the removal of proposed provisions as regards surcharge.

Prof. Herath paid a glowing tribute to government auditors for accepting the challenge as well as the difficult task of maintaining financial discipline regardless of threats. The former COPE Chief acknowledged that the auditors faced intimidations, pressure as well as threats from decision makers at the highest levels of the government as well as those involved in corruption.

The National List MP pointed out that as the audit service hadn’t been accommodated within any ministry, governments tend to ignore the difficulties experienced by them. The MP stressed that the auditors served the State and not any particular government formed by a political party or an alliance.

MP Herath explained how institutions that had been independent were gradually brought under ministries over the years leaving the Parliament and the Auditor General as the only ones outside the purview of ministers. According to the former COPE Chief Litro wasn’t the only enterprise that had declared that the parliamentary watchdog committee as well as the Auditor General did not have any authority to scrutinise their transactions.



Latest News

The Sun is directly overhead Warakapola, Aranayaka, Gampola, Bibile, Inginiyagala, and Akkaraipattu at about 12:12 noon today (08)

Published

on

By

On the apparent northward relative motion of the sun, it is going to be directly over the latitudes of Sri Lanka from the  05th to 15th of April this year.

The nearest areas of Sri Lanka over which the sun is overhead today (08th) are Warakapola, Aranayaka, Gampola, Bibile, Inginiyagala, and Akkaraipattu at about 12:12 noon.

Continue Reading

News

AKD admits import of substandard coal, blames technicalities and supplier

Published

on

President

… announces temporary relief package

President Anura Kumara Dissanayake yesterday acknowledged in Parliament that the import of substandard coal had adversely impacted electricity generation.

“There’s an issue with the coal. That’s true,” the President said, addressing the House.

President Dissanayake maintained that the problem had not arisen from the tender process but from the failure of the supplier to deliver coal that met the required standards. “The issue did not arise from the tender process. It resulted from the supplier’s failure to deliver coal that met the required standards. I would also like to point out that coal is not tested by individuals through simple inspection or personal judgment; it is examined in certified laboratories,” he said.

The President went on to say that coal shipments are tested through certified laboratories before dispatch, and an initial payment of 80 percent was made after receiving laboratory certification confirming that the coal meets stipulated specifications.

The President said the balance 20 percent was released only after a second verification carried out by an Indian laboratory selected for the purpose in 2023. Tests had revealed that three shipments failed to meet the required specifications.

The President added that although some shipments had passed laboratory tests, operational assessments at the power plant indicated that the coal was not performing to the expected standard. As a result, the government had withheld the remaining payments for certain consignments, imposed penalties on some suppliers, and in a few instances suspended even the initial 80 percent payment.

He said the use of substandard coal would increase electricity generation costs as the shortfall would have to be compensated by alternative sources, such as diesel. However, he assured Parliament that the additional costs would be recovered from the coal suppliers and would not be passed on to consumers.

The President also said the government expected to receive the fourth and fifth tranches of financial assistance from the International Monetary Fund by the end of May. He told Parliament that Sri Lanka hoped to reach a staff-level agreement with the IMF by Thursday, which would enable the country to secure about USD 700 million in funding.

Meanwhile, the President announced a temporary increase in cash assistance under the Aswesuma welfare programme to provide relief to low-income households during the April festive season.

He said the government continued to face challenges in accurately identifying eligible beneficiaries but noted that Aswesuma remained the only available framework to determine eligibility. Under the scheme, current benefit categories include payments of Rs. 17,500, Rs. 10,000 and Rs. 5,000.

For April, the Rs. 17,500 allowance will be increased by Rs. 7,500 to Rs. 25,000, while the Rs. 10,000 payment will rise by Rs. 5,000 to Rs. 15,000. Beneficiaries in the transitional category will receive an additional Rs. 2,500. The temporary increases are expected to cost the Treasury about Rs. 8.5 billion and will apply only for the month of April.

Addressing electricity tariffs, the President said the adjustment that came into effect on April 1 had been determined earlier and was not linked to the present crisis. According to him, the increase for households consuming less than 30 units amounts to about Rs. 15 per month, while other tier increases translate to approximately Rs. 1 to Rs. 1.50 per day.

He said the government had considered three options to manage rising electricity costs: requiring the Ceylon Electricity Board to absorb the losses, transferring the burden entirely to the Treasury, or passing the cost on to consumers. Instead, the government opted for a shared approach involving the State, the public and the national power system operator.

Under this arrangement, consumers using less than 90 units of electricity will receive a subsidy during the next tariff revision. The government has allocated Rs. 5 billion per month for the programme, amounting to Rs. 15 billion over three months. The President said losses in the electricity sector during the same period were estimated at about Rs. 32 billion.

Turning to agriculture, the President outlined measures to stabilise fertiliser supply amid rising global prices. He said the Department of Agriculture currently held about 14,000 metric tonnes of urea imported at the previous price, while private companies also possessed stocks.

Following discussions with fertiliser suppliers, companies had agreed to release all remaining stocks purchased at the old price to Agrarian Service Centres. These quantities, together with government stocks, are expected to be sufficient for two paddy cultivation seasons.

However, fertiliser required for the third season would have to be imported at higher prices. The President said recent offers for urea ranged from USD 680 to USD 850 per metric tonne.

To cushion farmers from price increases, the government has decided to sell fertiliser for the third season at a fixed price of Rs. 10,200 per bag despite the estimated market price ranging between Rs. 13,500 and Rs. 14,000. The Treasury will absorb the difference, amounting to roughly Rs. 3,000 per bag, at a total estimated cost of about Rs. 1.7 billion.

The President also announced increases in fertiliser subsidies. Farmers cultivating paddy will receive Rs. 30,000 per hectare, up from Rs. 25,000, while subsidies for subsidiary crops during the Yala season will increase from Rs. 15,000 to Rs. 18,000. Small tea holders will receive a one-time additional payment of Rs. 5,000 per fertiliser bag in addition to the existing Rs. 4,000 subsidy.

He said the expanded fertiliser support programme would cost the government about Rs. 6.5 billion, with an additional Rs. 600 million allocated specifically for fertiliser subsidies.

The President also outlined plans to manage rising energy costs, particularly in the fuel sector. He said the government had considered allowing fuel prices to fully reflect market costs or introducing a subsidy mechanism.

According to current estimates, he said, diesel would exceed Rs. 600 per litre if sold strictly at cost. Instead, the government has decided to maintain the existing tax structure and provide Treasury-funded subsidies.

Under the proposed scheme, diesel will receive a subsidy of up to Rs. 100 per litre, while petrol will receive up to Rs. 20 per litre. Fuel prices will continue to be adjusted based on monthly cost calculations, with the next revision scheduled for May 1.

The subsidy programme is expected to cost around Rs. 20 billion per month and will operate for three months at an estimated total cost of Rs. 60 billion.

In addition, fishermen will receive targeted assistance. Small fishing boats will qualify for an extra Rs. 50 per litre fuel subsidy for up to 625 litres per month, credited directly to bank accounts. This will provide a monthly benefit of Rs. 31,250 per boat.

Multi-day fishing vessels will receive a fuel allowance of Rs. 150,000 per vessel during the three-month subsidy period, the President said.

By Saman Indrajith

Continue Reading

News

‘Sri Lanka – China relations: Community with a Shared Future’ launched

Published

on

Chinese and Sri Lankan officials at the book launch

The Chinese Embassy in Colombo launched the commemorative publication in connection with the 70 years of Sri Lanka Diplomatic Relations with China titled, “Sri Lanka – China Relations: Community with a Shared Future” on 03 April 2026 in the presence of a large distinguished audience.

Cao Jing, Deputy Director General of the Asian Department of the Ministry of Foreign Affairs, Officials of the Chinese Foreign Ministry, Diplomatic Corps, Xu Yan of the Chinese People’s Association for Friendship with Foreign Countries, officials of Ministry’s line agencies and state-owned enterprises and several other guests having interests in Sri Lanka participated at the event.

The commemorative publication captures the essence of Sri Lanka’s resilience as a nation by tracing its rich history, civilization and culture. It offers insights into salient features of Sri Lanka that has been recognized for ages as “a land like no other”.

The publication was authored by the distinguished career Ambassador Dr. Ananda Kumarasiri.

In delivering the opening remarks Ambassador Majintha Jayesinghe, expressed his appreciation to the author Dr. Ananda Kumarasiri. Recalling the establishment of Diplomatic Relations in 1957, Sri Lankan Ambassador stated that the impressive tapestry of genuine friendship that exists between our two countries since ancient times have grown exponentially.

Ambassador Majintha Jayesinghe expressed the aspiration that this book will present an insightful account of the rich heritage of Sri Lanka’s relations with China. He hoped that the commemorative publications would encourage future generations to look at the shared history and relations with pride and motivate them to further enhance this unique friendship and goodwill to higher vistas of achievements.

In his address, Ambassador, Dr. Ananda Kumarasiri among other important observations, pointed out that there is much scope for Sri Lanka and China to collaborate in a number of fields. In particular, he highlighted that China’s tremendous technological and industrial progress can be harnessed for Sri Lanka to embark into-the development of alternative sources of energy, backward integration of Sri Lanka’s primary resources that would ensure value added exports and also in recycling wastes from various primary resources.

Continue Reading

Trending