News
Govt. assures procurement process followed to the letter
… seeks House approval for measures to ease pressure on foreign reserves
By Shamindra Ferdinando
Cabinet spokesperson Keheliya Rambukwella yesterday (17) assured that the incumbent government followed the procurement process to the letter.
Rambukwella, who is also the media minister, told the post-Cabinet media briefing at the Information Department that the government didn’t operate outside the laid down procurement process.
The minister said so when The Island asked about Energy Minister Udaya Gammanpila’s proposal to finalise an agreement with Emirates National Oil Company (ENOC) to procure 8,400,000 barrels of Murban crude over a period of eight months commencing Oct 1, 2020.
Rambukwella was flanked by co-cabinet spokesperson Dr. Ramesh Pathirana and Director General, Information, Nalaka Kaluwewa. The other co-cabinet spokesperson Udaya Gammanpila was not present.
Acknowledging that the government shouldn’t resort to emergency purchases, Minister Rambukwella said that there were instances the government had no option but to do so under certain circumstances.
Pointing out that the government had taken a series of steps to ease growing pressure on foreign reserves and also sought international assistance at the ongoing UNHRC sessions to save the national economies of countries ruined by COVID pandemic, The Island asked how the new parliament could curb waste, corruption and irregularities as COPE (Committee on Public Enterprises) and PAC (Public Accounts Committee) faulted successive governments. Minister Rambukwella took up the stand that the current dispensation followed procedures.
At the commencement of the briefing, the media was informed ot a government decision to secure parliamentary approval for specific action taken in terms of Imports and Exports (Control) Act, No 1 of 1969 to ease pressure on foreign reserves. A committee appointed in line with proposals made by President Gotabaya Rajapaksa on April 1, 2020, the government imposed severe restrictions on imports after having categorised imports into three classes.
Minister Rambuwella said that the balance of payments was an issue as even far bigger countries struggled to tackle due to the difficulties caused by the continuing COVID pandemic.
The Cabinet at its meeting on Sept 16, 2020, decided to submit four special gazette notifications issued in terms of Imports and Exports (Control) Act, No 1 of 1969 for parliamentary approval.
Minister Rambukwella also said his proposal to print passports as well as confidential documents locally had received the attention of the Cabinet of ministers. The Cabinet had decided to undertake a comprehensive study to ascertain whether the Government Printer could handle the tasks, he added.
The media also raised the issue of the alleged liberalisation of policy to facilitate the proposed Millennium Challenge Corporation (MCC) Compact. Denying such allegations, the ministers said the government decision was to provide state land to the needy in line with the President’s 2019 election manifesto.
The media sought an explanation as to how the government proceeded with land distribution on the basis of recommendation/approval provided by grama sevakas. Asked whether a deliberate attempt was being made to distribute state land in a haphazard manner against a series of wanton destruction of forest land, the ministers denied the accusations.
The ministers assured that the government wouldn’t interfere in the ongoing investigations into the destruction of Ramsar wetlands at Anavilundawa allegedly by former Chairman of Arachchikattuwa Pradeshiya Sabha Jagath Samantha. The media asked whether the suspect remained at large because of government interference as he was the elder brother of State Minister Sanath Nishantha.
The media said that in spite of a committee appointed by the government having identified Jagath Samantha as the main suspect, the police were yet to arrest him. The ministers pointed out that the government members had raised the issue in Parliament therefore there was no basis for accusations of an attempted cover up of the Anavilundawa incident.
The Parliamentary watchdog Committee on Public Enterprises (COPE) has found that there were fake documents regarding the importing of medicines under the emergency procurement system in 2022 and 2023.
This was revealed during a COPE meeting held at Parliament probing the transactions of the National Medicine Regulatory Authority (NMRA).
NMRA CEO Saveen Semage told the committee that several fake documents have been found due to the lack of registration of medicines.
Stating that six such fake documents were found last year alone, Semage said he had recorded statements regarding each of the documents with the Financial Crimes Investigation Division.
He revealed that, however, no investigations have been conducted yet into the incidents.
“We have documents with confessions from a woman accepting that fake documents had been made. However, a statement has not even been recorded from that woman yet,” he said.
Meanwhile, COPE member MP Asitha Niroshana Egoda Vithana also revealed that the highest number of waive-off registrations (WOR) for medicines had been obtained in 2022 and 2023.
He said 656 such WORs had been obtained in 2022 and 261 in 2023, adding that this proves that discrepancies have taken place during the emergency procurement of medicines during these periods.
Furthermore, Deputy Director General of the Medical Supplies Division of the Health Ministry, Dr. G. Wijesuriya said discussions are underway on allowing the State Pharmaceutical Corporation (SPC) to directly import essential medicines.He pointed out that it was essential to take a policy decision in this regard as a solution to mitigate such discrepancies.
The Batalanda Commission report was tabled in Parliament on Friday by the Leader of the House and Transport Minister, Bimal Ratnayake.
Minister Ratnayake announced that the government has decided to forward the report to the Attorney General for legal advice. Additionally, a Presidential Committee will be appointed to provide guidance and recommendations on how to proceed with the findings of the report.
Ratnayake said that the Cabinet of Ministers, along with President Anura Kumara Dissanayake, has made a policy decision to take necessary action in response to the report. He reassured the public that steps are being taken to ensure that such a dark chapter in the country’s history is never repeated.
Minister Ratnayake said that a two-day debate on the Batalanda Commission report will be scheduled in Parliament at an appropriate time, allowing for a detailed discussion on the report’s findings and recommendations.
The report, which will be printed in all three official languages—Sinhala, Tamil, and English—will be made available to the public in the near future. Ratnayake confirmed that printed copies would be provided to members of Parliament as well as the general public for their review.
The Leader of the House further revealed that there are 28 evidence volumes associated with the commission’s work, which will be submitted to Parliament at a later date for further scrutiny.
Ratnayake said that as entire country concerned of the Batalanda Commission’s findings, the government’s commitment to addressing the issues raised and preventing future atrocities stands clear. The next steps, including legal action and policy recommendations, will be shaped by expert advice and informed parliamentary discussions, he said.
Governor of the Central Bank Dr. Nandalal Weerasinghe on Friday (14) emphasized the importance of promoting a sustainable and cost-effective construction industry in the country, highlighting key challenges and opportunities in the sector.
Speaking at ‘Construction Expo 2025’, Dr. Weerasinghe underscored the need for Sri Lanka to align with global trends in sustainable construction, integrating cost-effective energy solutions and eco-friendly building practices.
“I must say my views here are not necessarily as Governor of the Central Bank of Sri Lanka, but as a person looking at this construction industry and how this can be developed and what the issues are. Sustainability in construction is essential, not just for new projects but also for existing buildings,” he noted.
Dr. Weerasinghe acknowledged that the construction sector has been one of the hardest-hit industries due to multiple economic pressures in recent years including the decline in public investments, high material costs and the industry being dependent on government projects.
The CBSL Governor, who acknowledged that the government faced fiscal constraints, limiting infrastructure spending and delaying payments to contractors, said that however, the outstanding arrears had now been settled.
“Government did not have space to spend money for public investment, especially construction that had a significant impact on the industry in the last couple of years, plus the government inability to pay the arrears for a long period. That was an issue we all recognize that has been one of the adverse impacts the industry had in the past”, he expressed.
“Also the cost of materials went up significantly, partly because of foreign exchange shortages. As a result, the shortage had shot up the prices of construction materials, as well as depreciation of the currency, high interest rates, finance costs, and other factors. We all recognize that it had an adverse impact on the industry. It’s one of the worst affected industries because of all these factors.”
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