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Kanchana admits consumers charged Rs. 50 per litre of fuel to settle USD 700 mn Indian loan

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… 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.



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Death of infant at Trinco District General Hospital: Suspended docs were at private hospital performing operation: Govt.

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GMOA denies allegation, calls for independent probe by a panel of experts

The Health Ministry is considering whether criminal liability should be apportioned to two doctors, suspended over the death of an infant at the Trincomalee District General Hospital during a GMOA strike last month, official sources said.

Health Minister Dr. Nalinda Jayatissa said further investigations were underway to determine whether the doctors involved had committed any criminal offence in connection with the incident.

GMOA President Dr. Prabath Sugathadasa told The Island that his association had asked the Health MInistry to conduct an impartial investigation. Emphasising the need to include experts in the inquiry team, Dr. Sugathadasa said that the death at the Trincomalee hospital had not happened due to the doctors’ strike.

The GMOA always maintained emergency services during trade union action therefore the Trincomalee death couldn’t be blamed on the Association, he said.

The infant died on 09 April while members of the Government Medical Officers’ Association (GMOA) were on strike.

Following a preliminary investigation, the Ministry of Health suspended the services of the hospital’s obstetrics and gynaecology specialist and a senior medical officer.

Health Ministry sources said the suspension order had been issued last Friday by the Health Ministry Secretary after investigators uncovered what were described as serious lapses and negligence linked to the death of the newborn during childbirth.

According to investigators, a newborn in distress had been reported from the maternity ward at around 8.45 a.m. on 09 April. Although a resident midwife had alerted the relevant medical personnel, proper medical attention had allegedly not been provided.

The inquiry found that the mother’s suffering had been prolonged and complications had been allowed to develop without a timely intervention. Investigators also noted that adequate care had not been provided even after the patient had been admitted to the ward.

Preliminary findings further revealed that the doctor concerned had failed to participate in the delivery procedure, thereby losing a critical opportunity to prevent complications.

The investigation also found that despite the mother having fever and chills, necessary medical intervention had allegedly not been carried out.

Health Ministry sources said the inquiry had uncovered several irregularities in the discharge of duties, some of which had reportedly been highlighted previously in an official communication issued by the Ministry Secretary.

The Ministry confirmed that disciplinary action had been initiated against the doctors following the findings of the preliminary investigation.

Sources identified one of the suspended doctors as a specialist attached to the Trincomalee District General Hospital who also serves as the President of the GMOA branch at the hospital.

According to Health Ministry the two doctors, under investigation, had been attending to a caesarian operation at a private hospital, in Trincomalee, though they falsely claimed they were on strike.

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Moves to strengthen environmental law after 24 years

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The government yesterday (11) unveiled sweeping amendments to National Environmental Act No. 47 of 1980. It had been last amended in 2002. Authorities described the latest amendments as one of the country’s most significant environmental legal reforms aimed at protecting ecosystems and ensuring sustainable development.

The proposed amendments were announced during a media briefing held at the Department of Government Information under the patronage of Dr. Dammika Patabendi and Deputy Environment Minister Anton Jayakody.

Also present were Secretary to the Ministry of Environment K.R. Uduwawala, Environment Ministry Advisor Dr. Ravindra Kariyawasam, and Director General of the Central Environmental Authority Kapila Rajapaksha.

Speaking at the briefing, Minister Patabendi said the amendments were designed to breathe new life into environmental governance while aligning with the government’s policy vision of “A Sustainable Biosphere – A Green Life.”

“The environmental challenges confronting Sri Lanka today are far more complex than they were when this law was introduced in 1980,” Minister Patabendi said. “Therefore, we need a stronger and more modern legal framework capable of protecting ecosystems, ensuring environmental justice and safeguarding natural resources for future generations.”

The amended Bill, prepared with the participation of environmentalists, academics and other experts, has already been tabled in Parliament and is expected to be debated shortly.

One of the key features of the revised legislation is the legal strengthening of environmental responsibilities vested in local government authorities.

Under the new provisions, the Central Environmental Authority will have enhanced powers to take legal action against local authorities that fail to comply with environmental regulations and directives.

The legislation also empowers magistrates to impose substantial fines on institutions that ignore court orders aimed at rectifying environmental violations.

Minister Patabendi stressed that environmental protection could no longer remain secondary to economic development.

“Sustainable development must be based on scientific principles,” he said. “Development that destroys ecosystems is not development. Environmental conservation and economic progress must go hand in hand.”

The amendments further tighten controls over industries operating under Environmental Protection Licences (EPLs).

Authorities said industries that violate EPL conditions or fail to prevent serious industrial hazards could face suspension or cancellation of licences. The law also introduces provisions enabling temporary closure orders against industries operating in violation of environmental standards.

A major addition to the revised Act is the introduction of dedicated legal provisions governing hazardous waste and chemical management.

Under the new framework, the Environment Minister will have powers to enforce stricter regulations under the supervision of technical expert committees.

The Bill also criminalises the submission of false information in Environmental Impact Assessments (EIA/IEE) and unauthorised alterations to approved development projects.

In another significant move, Strategic Environmental Assessments (SEA) will become mandatory in state policymaking, a measure authorities say will place scientific analysis at the centre of national development planning.

Minister Patabendi described the reforms as essential for ensuring long-term environmental security in the face of climate change and ecological degradation.

“We are introducing laws not only for the present generation but for the generations yet to come,” he said. “Protecting wetlands, forests, water resources and biodiversity is now an urgent national responsibility.”

The amended legislation also introduces the globally recognised concept of Extended Producer Responsibility (EPR), which places responsibility on manufacturers for managing the full life cycle of their products, including post-consumer waste.

Environmentalists have long argued that Sri Lanka requires stronger legal mechanisms to address mounting waste management challenges, especially plastic pollution and hazardous waste disposal.

The revised Act additionally introduces a specialised legal framework for wetland conservation, reflecting growing concerns over the rapid degradation of sensitive ecosystems across the island.

Sri Lanka, recognised as one of the world’s biodiversity hotspots, possesses rich ecosystems ranging from tropical rainforests and mangroves to wetlands and dry-zone forests.

Environmental experts say the proposed reforms could significantly strengthen conservation efforts if effectively implemented.

Minister Patabendi said the government hoped the new legal framework would help secure a greener and more sustainable future for the country.

“Our responsibility is to leave behind a living environment that future generations can inherit with pride,” he said.

By Ifham Nizam

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US-supported GeoAI Exhibition on disaster resilience opens on 14 May

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The US Embassy in Sri Lanka, together with the Association for Disaster Risk Management Professionals (ADRiMP), will host the GeoAI (Geospatial Artificial Intelligence) for Disaster Resilience Exhibition and Symposium, open to the public on 14 May, at the Auditorium of the Faculty of Graduate Studies, University of Colombo. The event will showcase how advanced mapping tools and American-led artificial intelligence innovations can strengthen disaster preparedness and response.

GeoAI combines geographic data—such as maps, satellite imagery, and weather patterns—with artificial intelligence to help authorities better predict, monitor, and respond to natural disasters. Drawing on US purported leadership in AI and geospatial technologies, these tools support faster, more accurate, and data-driven decision-making during emergencies such as floods, storms, and landslides.

The US Embassy in Sri Lanka supported the launch of the GeoAI for Disaster Resilience initiative in December, 2025, following the devastation caused by Cyclone Ditwah. Developed by disaster management experts Dr. Novil Wijesekara and Dr. Aslam Saja, in collaboration with ADRiMP, the project aims to strengthen Sri Lanka’s ability to respond to extreme weather events and build long-term resilience.

The programme has trained 150 Geographic Information Systems (GIS) professionals and university students, equipping them with advanced, AI-enhanced tools to improve disaster risk management. For example, these tools can map flood-prone areas in real time, predict how a storm may impact specific communities, and help emergency responders plan evacuations more effectively—capabilities that will be demonstrated at the exhibition. The exhibition and symposium will feature innovative, locally developed GeoAI solutions, demonstrating how these technologies can be applied to real-world disaster challenges across Sri Lanka.

The exhibition will be open to the public from 11:00 a.m. to 5:00 p.m. on 14 May. Registration is required; please visit https://arcg.is/0b9bbL2 to register.

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