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Govt. flayed for jacking up fuel prices despite Rs 120 bn profit since last Sept.
By Shamindra Ferdinando
The Convenor of ‘Samagi Joint Trade Union Alliance’ Ananda Palitha yesterday (06) alleged that the bankrupt country was being exploited to the hilt by the powers that be and external powers.
The one-time director of the Ceylon Petroleum Corporation (CPC) said that the Wickremesinghe-Rajapaksa government increased diesel and petrol prices on 30th July, in spite of unprecedented profits accrued, since September last year, while claiming there were sufficient stocks available for a period of three months.
The SJB trade union leader pointed out that retired Admiral Ravi Wijegunaratne, who served as the CPC Managing Director till the end of July, this year, was quoted as having told The Island recently that the CPC profits amounted to Rs 73 bn.
The latest price revision was announced close on the heels of the former Navy Commander’s declaration, Ananda Palitha said, adding that thanks to some intrepid persons in the CPC management he was able to obtain related information, the former UNPer said.
In a brief interview with The Island, Ananda Palitha emphasized that from Sept. 2022 to Dec .2022, the CPC earned quite staggering profits, amounting to Rs 40 bn. The situation has further improved, the former CPC employee said, adding that this year’s profits so far were estimated at Rs 84 bn.
Responding to another query, Ananda Palitha said that the CPC was no longer burdened with loans nor procured petroleum products on credit. According to him, the CPC’s unsettled loans amounting to USD 3 bn had been transferred to the Central Bank by the incumbent government.
Pointing out that the People’s Bank was the major creditor, Ananda Palitha stressed the importance of parliamentary oversight in the absence of transparency and accountability in the management process. It would be a grave mistake on the part of the government to go by the profits alone, Ananda Palitha said, urging thorough examination of the process to ensure that the consumers weren’t further burdened.
The latest price revision was announced on 30 July ahead of the arrival of the first consignment of fuel from the latest entrant to the market, Ananda Palitah said. China Petrochemical Corporation aka Sinopec would benefit by the price revision, the SJB official said. “On 30 July, CPC raised the price of 92 Octane petrol by Rs 20 to Rs 348. Octane 95 was also increased by Rs 10 to Rs 375 a litre. Super Diesel was increased by Rs 12 to Rs 358 per litre. Lanka IOC matched the CPC pricing formula,” Ananda Palitha said.
The second consignment followed and Sinopec now got around 42,000 metric tons of petroleum products here. These products included Petrol 92 Octane, Petrol 95 Octane, Auto Diesel and Super Diesel. The new supplier hasn’t been able to start distribution as stipulated in the agreement, Ananda Palitha said.
Ananda Palitha alleged that the incumbent administration took advantage of the political-economic-social crisis to pursue an agenda of its own. Having repeatedly assured that their primary intention was to ensure the continuous supply of quality fuel at competitive prices, the government called for international tenders to procure the services of recognized suppliers.
The three selected enterprises were M/s Sinopec Fuel Oil Lanka (Private) Limited, F5, Hambantota Maritime Center, Mirijjawila, Hambantota, Sri Lanka, M/s United Petroleum Pty Ltd, 600 Glenferrie Rd, Hawthorn, Victoria 3122, Australia and M/s RM Parks, 1061 N. Main St, Porterville, CA 93257, USA, in collaboration with Shell PLC. However, only Sinopec proceeded as agreed with the government as the other enterprises declined to pay USD 2 mn license fee unless they received an international guarantee in respect of the funds.
Alleging that the Chinese obviously had received favored treatment Ananda Palitha pointed out Sinopec paid USD 2 mn licence fee. Citing a range of concessions received by Sinopec, Ananda Palitha stressed that contrary to the tender procedures, Power and Energy Minister Kanchana Wijesekera subsequently through a cabinet paper granted two far reaching concessions. As a result of ministerial intervention, 1 percent royalty payments in USD had been done away with while the money raised through sales here could be taken out immediately in USD.
Ananda Palitha also questioned the decision to grant BoI status to Sinopec contrary to the tender conditions.
The outspoken trade union activist said that the Chinese entry into the retail market here should be examined against the status of the Lanka IOC operations and the continuing expansion facilitated by Indian interventions at the highest level. In spite of change of governments, Lanka IOC, since its inception here in 2003 sustained growth and received a mega boost with the agreement on Trincomalee oil tank farm finalized during Udaya Gammanpila’s tenure as the Power and Energy Minister.
Latest News
486 dead, 341 missing, 171,778 displaced as at 0600hrs today [05]
The situation report issued by the Disaster Management Center at 0600hrs today [5th December] confirms that 486 persons have died and another 341 persons are missing after the devastating weather conditions in the past week.
171,778 persons have been displaced and have taken refuge at 1,231 safety centers established by the government.

News
Media slams govt.’s bid to use Emergency to silence critics
Media organisations have denounced Deputy Minister of Public Security and Parliamentary Affairs Sunil Watagala after he urged law enforcement authorities to use emergency regulations to take action against those posting allegedly defamatory content about the President and senior ministers on social media.
The Sri Lanka Working Journalists Association (SLWJA) yesterday issued a strongly worded statement condemning Watagala’s remarks, warning that they posed a direct threat to freedom of expression and media rights, particularly at a time when the country is struggling through a national disaster.
Watagala made the controversial comments on 2 December during a meeting at the Malabe Divisional Secretariat attended by government officials and Deputy Media Minister Dr. Kaushalya Ariyarathna. During the discussion, the Deputy Minister claimed that a coordinated effort was underway to spread distorted or false information about the disaster situation through physical means, social media, and even AI-generated content. He also alleged that individuals based overseas were contributing to such activity.
According to the SLWJA, Watagala went further, directing police officers present at the meeting to treat those posting such content “not merely as suspects but as offenders” and to take action against them under emergency regulations currently in force.
The SLWJA accused the government of abandoning the democratic principles it once campaigned on, noting that individuals who publicly championed free speech in the past were now attempting to clamp down on it. The association said this was not an isolated incident but part of a pattern of growing state pressure on journalists and media platforms over the past year.
It warned that attempts to criminalise commentary through emergency powers especially during a disaster constituted a grave violation of constitutional rights. The union urged the government to respect democratic freedoms and refrain from using disaster-related powers to silence criticism.
In a separate statement, Internet Media Action (IMA) also expressed “strong objection” to Watagala’s comments, describing them as a “serious threat to freedom of expression”, which it said is a fundamental right guaranteed to all Sri Lankan citizens.
The IMA said Watagala’s assertion that “malicious character assassination attacks” were being carried out against the President and others through social media or other media channels, and that such acts should attract severe punishment under emergency law, represented “an abuse of power”. The organisation also criticised the Deputy Minister’s claim that false opinions or misrepresentations whether physical, online, or generated by AI could not be permitted.
Using emergency regulations imposed for disaster management to suppress political criticism amounted to “theft of fundamental rights”, the statement said, adding that the move was aimed at deliberately restricting dissent and instilling fear among social media users.
“Criticism is not a crime,” the IMA said, warning that such rhetoric could lead to widespread intimidation and self-censorship among digital activists and ordinary citizens.
The group demanded that Watagala withdraw his statement unconditionally and insisted that freedom of expression cannot be curtailed under emergency laws or any other legal framework. It also called on the government to clarify its stance on the protection of fundamental rights amid increasing concerns from civil society.
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Cardinal calls for compassionate Christmas amid crisis
Archbishop of Colombo, Cardinal Malcolm Ranjith, has called on Sri Lankans to observe this Christmas with compassion and restraint, as the nation continues to recover from one of its worst natural disasters in recent memory.
In his message, the Colombo Archbishop has highlighted the scale of the crisis, noting that more than 1.5 million people have been displaced, while an “uncounted number” remain buried under debris in the hill country following landslides and severe flooding.
“It is a most painful situation,”
he has written acknowledging the difficulty of celebrating a season traditionally associated with joy while thousands are mourning lost loved ones, living in refugee centres, or left with nothing but the clothes they were wearing.
The Cardinal has urged the faithful to temper excessive celebrations and extravagance, instead focusing on helping those affected. “Celebrate, by all means, yes, but make it a moment of spiritual happiness and concern for the needs of those who suffer,” he said. “Assist as much as possible those who lost their loved ones, their homes, and their belongings.”
He has called for a Christmas marked by love, sharing, and solidarity, describing it as an opportunity to make the season “a deeply spiritual and joyful experience.”
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