News
Kanchana admits consumers charged Rs. 50 per litre of fuel to settle USD 700 mn Indian loan
… USD 5 mn paid to Iran a month
By Shamindra Ferdinando
Power and Energy Minister Kanchana Wijesekera has confirmed that consumers of petrol and diesel have been made to pay Rs. 50 to Rs. 55 per litre since the middle of last year to settle what the Ceylon Petroleum Corporation (CPC) owed its creditors.
Minister Wijesekera said so when Chamuditha Samarawickrema raised the issue on ‘Salakuna’ live political programme on Hiru TV recently.
SJB trade unionist Ananda Palitha disclosed the CPC move in an interview with The Island recently. The former UNP trade union leader said that a litre of petrol 92 cost Rs. 366, Octane 95 Rs. 464, Auto Diesel Rs. 358 and Super Diesel Rs. 475 because the CPC passed its debt on to consumers. A litre of Kerosene is sold at Rs. 236.
Wijesekera said: “CPC owed USD 730 to suppliers. In addition, the CPC owed the two State Banks – Bank of Ceylon and People’s Bank Rs 199 bn. Under the Indian credit line, the CPC procured petroleum products to the tune of USD 700 mn from April to August 2022. We also owe Iran USD 240 mn as payments couldn’t be made due to international sanctions that had been in place at that time.”
With a view to easing pressure on the two State Banks, the CPC settled the entire amount owed to them, Minister Wijesekera said. The improvement of the financial situation due to the revision of fuel pricing formula enabled the CPC to repay Rs 150 bn out of Rs 199 bn. “We have settled the total amount owed to the People’s Bank and the Bank of Ceylon debt was brought down to approximately Rs 50 bn.”
Minister Wijesekera said that the CPC faced a major crisis as supplies had been disrupted due to their failure to pay suppliers. Of USD 730 mn debt, the CPC owed China about USD 400 mn, Minister Wijesekera said, disclosing China had initiated legal action against Sri Lanka in this regard. On a priority basis the CPC had settled the entire USD 730 mn owed to suppliers.
Commenting on the Indian credit-line used by the CPC to the tune of USD 700 mn, Minister Wijesekera said that the Treasury had undertaken to settle that amount. The minister contradicted Ananda Palitha’s claim that the Treasury had taken over the entire CPC debt amounting to USD 3 bn. According to him, consumers were charged Rs 50 to Rs 55 as excise duty per a litre of petrol and diesel to cover USD 700 mn Indian loan.
Referring to the long overdue payment for Iranian crude, Minister Wijesekera said it was being repaid in monthly installments of USD 5 mn each.
Responding to another query, Minister Wijesekera said that the CPC had been in debt to the tune of Rs 2 trillion. The Treasury had taken the bigger share of that amount including the USD 700 mn Indian credit line, he said. Asked whether Sinopec and Lanka IOC benefited from the Rs 50 to Rs 55 excise duty, Minister Wijesekera declared that money ended up with the Treasury.
Minister Wijesekera said that although diesel was subjected to tax it was not used to generate electricity now. Furnace oil and naphtha weren’t subject to taxes, he said, adding that the CPC didn’t make profits by supplying furnace oil to the CEB.
Asked why Sri Lanka didn’t obtain fuel supplies from Russia but almost entirely depend on Singapore based trading firms, Minister Wijesekera said that there were about 10 suppliers and the CPC followed tender procedures.
Minister Wijesekesa said that after Sri Lanka had finalized agreement with the IMF in respect of the USD 2.9 bn loan package, the CPC didn’t accept unsolicited bids.
News
Customs asked to resume probe or face legal action
Rs. 16 bn BMW revenue fraud:
Public interest litigation activist Nagananda Kodituwakku has said he will initiate appropriate proceedings against Director General of Customs, Wimal S.K. Liyanagama, in terms of the Anti-Corruption Act No 9 of 2023, unless the Customs carries out a revenue fraud inquiry to recover approximately Rs 16 bn in lost government revenue.
General Secretary of Vinivida Foundation, and former Customs officer, Kodituwakku said that though the Department, in response to his request for a meeting to discuss the issue, in writing, assured them that the investigation was underway, they found that the actual situation was not so.
Kodituwakku alleged that the Customs Chief had neglected what he called statutory duties under the Customs Ordinance, by disregarding his request for a meeting.
Kodituwakku said the investigation into the importation of 1,728 brand new BMW vehicles, under the concessionary duty permits issued by the government for the public servants, between 2011 and 2014, had been stalled.
The civil society activist said that investigations had revealed the vehicles hadn’t been imported by the permit holders themselves but others. It also transpired that the value of the imported vehicles, mentioned in the commercial invoices, proforma invoices and the CusDecs, tendered to Customs in the names of the permit holders, were not the actual values for the vehicles in question.
The high-profile case has been handled by the Central Investigation Directorate, at that time headed by Murugesu Thayabaran, a batchmate of Kodituwakku.
The ex-Customs officer said that he had appeared as counsel for Thayabaran in Court of Appeal and was determined to bring the case to a successful conclusion. According to him, the importer, over the years, had been represented by nine President’s Counsel as the case dragged on from the time of P.S.M. Charles, Director General, Customs.
Kodituwakku made available letters he wrote to the Customs and other parties on this issue, to The Island. Pointing out that the Court of Appeal on 7 May, 2024, dismissed the importer’s final appeal regarding the case pertaining to the revenue loss of Rs. 16 bn, Kodituwakku said that although the court had cleared the way for the Customs probe, no action had been taken.
However, the Court of Appeal ruling was given before Liyanagama succeeded Seevali Arukgoda as DG Customs on 6 May, 2026. Liyanagama served as Director General of the Department of Management Services at the Treasury before the new appointment.
Kodituwakku said that he had also brought the Customs case to the attention of the Commission to Investigate Bribery or Corruption (CIABOC).
Emphasising the failure on the part of the Opposition to raise this issue, both in and outside Parliament, Kodituwakku said that since the exposure of the BMW scam, during Mahinda Rajapaksa’s presidency, there had been four presidents, namely Maithripala Sirisena, Gotabaya Rajapaksa, Ranil Wickremesinghe and incumbent Anura Kumara Dissanayake. Unfortunately, successive administrations had allowed the interested parties to drag the case. The lack of interest shown by political parties revealed that they not only protected those responsible but encouraged corrupt practices of allowing third parties to import vehicles in terms of permits issued to legitimate recipients of such permits.
Having campaigned on an anti-corruption platform, during the presidential and parliamentary polls in 2024, the NPP couldn’t, under any circumstances, turn a blind eye to this situation, Kodituwakku said, adding that even the IMF should be concerned of the failure on the part of successive governments to recover the money.
By Shamindra Ferdinando
News
Outgoing Chinese Ambassador Qi Zhenhong bids farewell to Mahanayake Theras
Outgoing Chinese Ambassador to Sri Lanka, Qi Zhenhong, who is scheduled to conclude his tenure on July 31, visited Kandy on the afternoon of July 18 to pay respects and receive blessings from the Mahanayake Theras of the Malwathu and Asgiriya Chapters.
During the visit, the Most Venerable Thibbotuwawe Sri Sumangala Mahanayake Thera of the Malwathu Chapter and the Most Venerable Warakagoda Sri Gnanarathana Mahanayake Thera of the Asgiriya Chapter hailed the Ambassador’s dedicated service to the country.
The Malwathu Mahanayake Thera noted that Ambassador Qi had performed his duties as a diplomat to the highest possible standard. He stated that the Ambassador’s contributions during his nearly six year tenure, including assistance during natural disasters and support for economic, educational, cultural, and religious sectors, would never be forgotten.
Expressing his appreciation, the Mahanayake Thera remarked that he would like the Ambassador to remain in Sri Lanka even after retirement.
The Asgiriya Mahanayake Thera, Most Venerable Warakagoda Sri Gnanarathana Thera, also commended the Ambassador’s efforts in supporting infrastructure development during various natural disasters and praised his initiatives in strengthening the bilateral relations between China and Sri Lanka.
Reflecting on his tenure, Ambassador Qi Zhenhong stated that the Sri Lankan economy is gradually improving under the new government. He noted that the Chinese government fully supports the current government’s focus on industrial policy, state owned enterprise reform, and exports.
The Ambassador highlighted several ongoing collaborative projects, including an agreement to provide school uniforms, the reconstruction of 14 bridges destroyed by cyclones, and the upcoming arrival of the first batch of electric buses and vehicles.
“Sri Lanka feels like my second home,” the Ambassador said, adding that he is grateful for the generous support and sincere friendship extended to him by the people of Sri Lanka. He confirmed that while his tenure ends on July 31, he will continue to engage with Sri Lanka whenever possible.
The Ambassador also visited the Senior Member of the Asgiriya Chapter, Most Venerable Godagama Sri Mangala Thera, to receive further blessings, with other prominent members of the Maha Sangha also in attendance.
By S.K. Samaranayake
News
Move to extend retirement age of top judges: BASL asks govt. to stop process pending meaningful consultations
President of the Bar Association Rajeev Amarasuriya yesterday (21) briefed the media regarding the action taken by them to discourage the NPP government from increasing the retirement age of superior court judges.
Amarasuriya, flanked by BASL Deputy President Rienzie Arsecularatne (right) and Treasurer Pasindu Silva reiterated their strong opposition to the alleged move. The briefing took place at Dr. H.W. Jayawardene QC Auditorium, BASL Secretariat, Mihindu Mawatha.
Pointing out that the move to bring in a constitutional amendment to facilitate the project would be detrimental to the judiciary and the country, the BASL requested an opportunity to meet Justice Minister Harshana Nanayakkara to discuss the issues at hand.
The BASL proposed that the delegation would consist of members of the Executive Committee, President’s Counsel and senior members of the legal fraternity.
Amarasuriya said that the BASL was willing to assist the Justice and National Integration Ministry in a consultative process in case the government decided to do so. “We sincerely hope that no further steps will be taken in relation to this proposal until meaningful consultation has taken place with the principal stakeholders of the justice sector,” Amarasuriya said.
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