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‘LIOC increases prices to cut down losses at CPC’s expense’

Huge increase in sales volumes disastrous for Ceypetco – CPC chairman
By Shamindra Ferdinando
Ceylon Petroleum Corporation (CPC) Chairman Sumith Wijesinghe says Lanka IOC has increased its fuel prices by Rs. 5 a litre to curtail its losses by making its customers obtain fuel from Ceypetco fuel stations.
Wijesinghe said so when The Island sought an explanation as regards the mechanism in place to revise fuel prices and whether Lanka IOC required the government permission to do so. Wijesinghe emphasised that Lanka IOC move was calculated to discourage customers coming to its fuel stations thereby would sharply increase financial losses on the state enterprise as its fuel was highly subsidised to protect the local consumer.
“In other words, the surge in sales volumes will automatically increase losses. The same result can be achieved by increasing petrol and diesel by just two rupees, each,” Wijesinghe said.
Responding to another query, Wijesinghe pointed out that Lanka IOC clearly sought to cut down on their losses by forcing its regular customers to visit Ceypetco fuel stations. The outspoken official said that as their competitor is on record as having said that they suffered a loss of Rs. 20 and Rs.40 per ltr, on the sale of petrol and diesel, respectively, Lanka IOC strategy was clear.
Lanka IOC is a subsidiary of Indian Oil Corporation which comes under the purview of Ministry of Petroleum and Natural Gas, is the only private party that operates fuel stations here.
CPC Chief said as a result of increased volume of sales their stocks would be depleted much faster. Wijesinghe described the situation as ‘grave’ and quite a concern to cash-strapped loss making public sector enterprise.
According to him, the problem was much worse than the public realised. The Indian strategy would cause a catastrophic situation, Wijesinghe said.
Wijesinghe admitted that Lanka IOC didn’t require Energy Ministry consent to revise fuel prices. The enterprise that entered the Sri Lankan market during Ranil Wickremesinghe’s premiership in 2003 is the eighth largest listed company here.
The official stressed that urgent revision of fuel prices was a dire necessity as the overall financial situation remained precarious. Ceypetco’s network of fuel stations is much larger than Lanka IOC’s.
Lanka IOC in a statement issued Thursday night said that the selling price of petrol and diesel here remained significantly low as compared to the prices prevailing in the neighboring countries. “The prices of petrol and diesel need to be in line with the prices prevailing in the international market,” the company said in a statement e-mailed to The Island.
Lanka IOC refrained from revising the prices of Lanka Super Diesel and LP 95. The previous price revision took place on June 12.
Asked whether Ceypetco would match the Lanka IOC’s price increase immediately to counter the competitor’s strategy, CPC Chairman said that the issue at hand required a thorough examination of the full picture as they couldn’t contain the rapid deterioration of the finances unless a substantial increase was implemented.
Claiming the mounting losses were unbearable, Managing Director LIOC Manoj Gupta said that the company had increased the prices to the barest minimum. Responding to The Island queries, Gupta said that Lanka IOC didn’t require GoSL approval to revise fuel prices. According to the Indian official, Lanka IOC had been empowered by ‘virtues of previously signed agreements with GOSL to take independent commercial decisions.“
As at Oct. 21 the international price of Gasoil 500ppm was at $ 95.62/barrel and Gasoline92 $ 99.37/barrel.
The last price revision took place on June 12, 2021. However, since then the Brent crude oil prices have increased from $72/barrel to $86/barrel in the international market.
Energy Minister Udaya Gammanpila on Oct. 15 revealed that when raised the possibility of Treasury assistance to the CPC with Finance Minister Basil Rajapaksa, he was told in no uncertain terms the Finance Ministry was not in a position to do so.
In the wake of simmering controversy over the fuel price hike announced by Minister Gammanpila on June 12 with General Secretary of the SLPP attorney-at-law Sagara Kariyawasam demanding the minister’s resignation, the latter declared that the revision of fuel prices was the prerogative of the Finance Minister.
Attorney-at-law Gammanpila explained that in his capacity as the Energy Minister, he only made the announcement of a decision taken at a meeting attended by both President Gotabaya Rajapaksa and Premier Mahinda Rajapaksa.
Asked by The Island yesterday (22) afternoon whether the Ceypetco would match Lanka IOC price hike immediately, Minister Gammanpila said ‘No.’
In terms of the 2003 agreement with the UNP government, Lanka IOC has the strategically located China Bay oil tank farm, the largest such facility situated between the Middle East and Singapore. The tank farm, formerly owned and operated by CPC, has 99 tanks, each with a capacity of 12,000 litres. Of them, only 15 of these tanks are operational at the moment.
Commenting on the ongoing talks with about half a dozen countries to ensure uninterrupted fuel supplies, the Pivithuru Hela Urumaya (PHU) leader Gammanpila said that the cabinet of ministers recently approved a proposal to obtain USD 3.6 billion loan from Oman to repay in 20 years with a five-year grace period. According to him, the Omani offer had been undoubtedly the best and the government was going ahead with it. The offer now before the cabinet of ministers would give the government an opportunity to use USD 500 mn overdraft to order refined products from India.
Minister Gammanpila said that there had been other offers from China, UAE and Singapore though at the moment they were committed to Omani and Indian proposals.
Asked to explain the Indian offer, Minister Gammanpila said that USD 500 overdraft could be obtained with 4 percent interest payable in one year.
“Once settled, we’ll be eligible for USD 500 mn overdraft again.”
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Enforcing the law against bribery and corruption is not an act of political revenge but a profound human responsibility – President

President Anura Kumara Disanayake emphasized that since assuming office, the current government has taken decisive steps to free the process of combating bribery and corruption from political interference. He reiterated that while the political mechanism has been liberated from engaging in such crimes, it is now the responsibility of the administrative machinery operating beneath that political structure to fall in line and correct its course without delay.
He explained that a grace period of six months has already been provided for the state officials to adjust to this new direction. The President firmly warned that if the public service mechanism fails to act appropriately within this period, the government will not hesitate to take firm legal action against those officials from May onwards.
President Disanayake expressed these views on Wednesday (09), participating in the launch of the National Anti-Corruption Action Plan 2025–2029, held at the Bandaranaike Memorial International Conference Hall (BMICH) in Colombo.
Bribery and corruption have proliferated, undermining the integrity and values of the country’s state institutions .He observed that over the past six months of the present government, no section of the public service has been allowed to collapse and that if officials continue to resist change, the government will proceed to remove and replace them after May.
The President pointed out that bribery and corruption have caused the nation to fall behind for decades in the eyes of the world. He reiterated that enforcing the law against these crimes is not an act of political revenge but a profound human responsibility.
The President stressed the need to build a society that respects the law and fears wrongdoing, adding that conducting lectures or workshops alone would not suffice in achieving this goal. He emphasised that people must practically witness that any person who commits a crime will be subjected to punishment under the law.
President Disanayake noted that corruption in Sri Lanka ranges from minor bribery, from the village level to bringing poor quality medicinal drugs. Bribery and corruption have escalated from minor instances to grave financial crimes, extending from local councils to looting the Central Bank.
The President further said that previous rulers safeguarded and protected those engaged in corrupt activities.
He also revealed the emergence of a network of thieves within several state administrative institutions and certain bodies responsible for enforcing the law, comprising underworld elements involved in bribery and corruption. He confirmed that these criminal networks have already been identified and assured that measures will be implemented in the future to dismantle and eliminate them.
President Disanayake solemnly pledged that the responsibility of eradicating bribery and corruption will not be passed on to the next generation but will be resolved within this generation itself, under the leadership of the present government.
Drawing a comparison with India, which gained independence a year before Sri Lanka, the President noted that through a consistent national policy framework, India has successfully achieved space exploration and built a massive workforce in the software industry. In stark contrast, he pointed out that Sri Lanka, due to poor decisions made by its political leadership, was declared a bankrupt state in 2022.
He further stated that the current government has taken on the responsibility of leading Sri Lanka towards the international stage through a national policy framework that ensures transparency and accountability for every rupee spent from public funds.
The President added that by implementing this framework, it is possible to build public trust in law enforcement and judicial institutions and that it must be made clear to the people that there will be no mechanism available for anyone to escape the law after committing a crime.
He stated that the purpose of the National Anti-Corruption Action Plan 2025-2029 is to guide the country towards becoming a nation of integrity. The government plans to establish Internal Affairs Unit within all state institutions including the Presidential Secretariat and implement a system for monitoring these units through digital technology to ensure accountability and transparency.
The Action Plan has been designed around four key strategic priority areas: prevention and public participation, institutional strengthening and the enforcement of law along with reforms in law and policy.
The President highlighted that eliminating bribery and corruption is one of the most decisive factors in a country’s development and progress. In Sri Lanka, the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) has been identified as the leading state institution entrusted with strengthening this mechanism. Accordingly, it was recognised that a robust national anti-corruption policy that operates across all sectors is essential to creating a corruption-free society.
In preparing this Action Plan, CIABOC engaged all relevant stakeholders by conducting extensive programmes at both national and provincial levels. A broad public consultation process was carried out, including a comprehensive survey to assess public opinion on corruption through media announcements in all three languages and via social media networks.
This process gathered proposals from a diverse range of participants, including Members of Parliament, judges, state officials, the private sector, international organisations, civil society organisations, community-based organisations, religious groups, persons with special needs, media professionals, youth, children and the general public. Additionally, foreign state experiences and suggestions from various groups across all provinces were taken into consideration when formulating the Action Plan.
By implementing this National Anti-Corruption Action Plan, the government hopes to foster a committed citizenry determined to combat corruption, a political will fully supportive of this effort, a comprehensive legal framework and a disciplined, transparent public service across all sectors, with the shared vision of building a country of integrity for future generations.
Addressing the event, the Japanese Ambassador to Sri Lanka, Hideaki Mizukoshi, stated that Corruption remains a great challenge for many countries, including Sri Lanka as it undermines economic growth, weakens public trust in government institutions and discourages foreign investment. However, he noted that due to the reform initiatives of the present government, investors are once again showing increasing interest in Sri Lanka.
Ambassador Mizukoshi further stated that Japan has always believed that transparency and good governance are fundamental pillars for sustainable economic development and therefore, has supported anti-corruption initiatives globally for over a decade.
Meanwhile, the UNDP Resident Representative in Sri Lanka, Ms. Azusa Kubota, stated that according to Sri Lanka’s first-ever National Taxpayer Perception Survey conducted last year, 84% of respondents indicated that corruption directly affects their willingness to pay taxes.
She further noted that corruption deters investment, increases the cost of doing business, undermines sustainable development and human security, and causes an estimated annual loss of USD 1.3 trillion for developing countries.
Referring to the Budget Speech delivered by the President, Ms. Kubota emphasised that the State must be accountable for every cent of taxpayers’ money and stated that this Action Plan would serve as a roadmap for transforming Sri Lankan society.
The event was attended by the Chief Justice, Supreme Court Justice Murdu Nirupa Bidushinie Fernando; the Attorney General, Parinda Ranasinghe PC; the Secretary to the President, Dr. Nandika Sanath Kumanayake; the Chairman of CIABOC, former High Court Judge Neil Iddawela; the Director General of CIABOC, R.S.A. Dissanayake; the Commanders of the Tri-Forces; the Inspector General of Police; senior officials from the security forces and a large number of state officials.
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Sun directly overhead Hatthikuchchi, Kalankuttiya, Halmillewa, Ipalogama, Palugaswewa and Habarana at about 12:11 noon. today [10]

On the apparent northward relative motion of the sun, it is going to be directly over the latitudes of Sri Lanka during 05th to 14th of April in this year.
The nearest areas of Sri Lanka over which the sun is overhead today (10th) are Hatthikuchchi, Kalankuttiya, Halmillewa, Ipalogama, Palugaswewa and Habarana at about 12:11 noon.
News
LG elections to be staggered

Signs are clear that the local government (LG) elections, originally scheduled for 06 May, will have to be held on a staggered basis, as nomination lists in respect of about 200 out of 339 LG institutions have been challenged before the Court of Appeal, according to sources.
Those who have filed cases in the Court of Appeal seek writs against holding the elections. The final date for filing cases is 21 April.
By yesterday only 113, out of 339 local government bodies, had been cleared for the 06 May elections, with no rejections of nomination lists, or objections, sources said. The nomination lists for 226 local government bodies have been rejected, and candidates on these rejected lists are entitled to file cases against the Election Commission (EC) until 21 April.
The Court of Appeal (CA) has ordered that some of the lists rejected by the Election Commission be accepted. However, the EC is planning to challenge all CA orders before the Supreme Court.
When contacted for comment, Director General of the Election Commission, Saman Sri Ratnayake, told The Island that all arrangements had been made to hold the elections on 06 May, in accordance with the provisions of the Local Authorities Elections (Amendment) Act No. 16 of 2017.
“We will hold elections to the local government bodies for which there are no legal barriers, and this will depend on the final decision of the courts,” Ratnayake said, adding that elections to other local government bodies would be held on later dates.
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