News
Litro goes for bulk buying to end gas queues
Litro Gas Lanka yesterday announced that it was looking at the possibility of bulk buying as opposed to ad-hoc purchasing to manage the domestic demand.
A spokesperson for Litro Gas Lanka said that the government had given the green light for pursuing the proposed plan to mitigate the current crisis: “Litro Gas Lanka caters to the demand from BOI, Export Processing Zones and other export-oriented industries, and sectors that are critical to the economy and bring in much-needed forex. Litro Gas Lanka single-handedly managed to cover the country’s critical industries – including the HORECA category – undertaking the challenge of catering to its own demographic as well as the market segment dependent on its competitor, the only other LPG supplier, for the duration of 3-4 months it was unable to actively meet the demand.”
Detailing the negotiation process for the contingency order, he said that SIAM Gas of Singapore offered the lowest rate of USD 96 as the shipping cost for a Metric tonne of LPG for the 2022/2023 tender but failed to release the consignment until a standby Letter of Credit (SBLC) to the value of USD 30mn was furnished. Further, SIAM Gas had also informed that the required quantity of 15,000 MT couldn’t be provided but 6,600 MT could be arranged instead, 10 days from the date of LOC. It was also informed this consignment would be provided at USD 112 instead of formerly quoted USD 96.
As such, Litro Gas opted for the second lowest bid of a minimum quantity of 100,000 MT at USD 129 from Omani Trading (OQ Trading), based on the decision taken at the Cabinet meeting held on June 8 – taking into account the feasibility and time considerations. The USD 17 difference between the two aforementioned bidders translates to less than Rs. 80 per cylinder, which is not a significant burden proportional to the inconvenience faced by the public due to lack of LPG in the market.
Litro Gas Lanka wished to clarify that SIAM Gas was left out from this contingent purchase not due to an issue involving commissions, as falsely claimed by certain media reports, but rather due to the stipulations and demands put forward by the supplier at this critical juncture. Logistical limitations, such as not having adequate vessels for delivery, was also a reason for ruling out SIAM Gas as a supplier for the contingency shipment, as well as the long term. The total requirement would have needed four vessels, over a period of six weeks, which SIAM Gas could not confirm. Even the vessel allocated for the Spot (contingency) was over 26 years old. These factors, too, contributed to Litro Gas looking for more reliable, dependable suppliers for the short and long terms.
The initial approval to secure LPG from SIAM Gas was granted by the Cabinet, two months ago, during the tenure of the previous Chairman, but did not materialize and it was against this backdrop that the tender was awarded to the next best alternative, OQ Trading, to expedite the process.
During the period Nov 2019 to Dec 2022 it has cost Litro Gas Lanka a staggering Rs.11.1 billion to maintain the price of an LPG cylinder at a constant rate so that LPG was affordable to the average household, which coincided with COVID-19 lockdowns.
Litro Gas Lanka is one of the most profitable SOEs in Sri Lanka, employing a cadre of only 225 permanent staff which is a testament to its efficiency and productivity. The enterprise made available an unprecedented dividend of Rs. 13 bn during the last decade to the National Treasury which is generally used for nation-building activities.
Furthermore, Litro Gas Lanka fulfilled its obligations as a socially responsible corporate by paying Rs. 34.5bn as taxes during the past decade.
As the national provider of LPG, Litro Gas Lanka requests cooperation of all stakeholders to swiftly resolve the present crisis and restore normalcy.
News
INS Airavat makes port call in Colombo
The Indian Naval Ship (INS) Airavat arrived at the Port of Colombo for Operational Turnaround on 01 Jun 26. The visiting ship was welcomed by the Sri Lanka Navy (SLN) in compliance with time-noured naval traditions.
INS Airavat is a Landing Ship Tank, commanded by Commander IP Patil.
During their stay in the island, the ship’s crew is scheduled to take part in a series of professionally enriching events and camaraderie-building programmes organised by the Sri Lanka Navy.
The Indian naval personnel will also tour several historic and prominent tourist attractions across the country before the ship concludes her deployment.
News
BASL asks govt. to abandon plan to raise retirement ages of CA and SC judges
… tells Prez such arbitrary change neither necessary nor desirable
The Bar Association of Sri Lanka (BASL) has urged President Anura Kumara Dissanayake to abandon the controversial plan to increase the retirement age of the judiciary, including the Court of Appeal and the Supreme Court.
In a statement issued by the BASL President Rajeev Amarasuriya and its Secretary Nalin de Silva, the BASL pointed out that the proposed increase of the retirement age of the judiciary would undermine the independence, integrity, dignity, and public confidence in the Judiciary, which is essential for the maintenance of the Rule of Law and democratic governance in Sri Lanka.
The text of the BASL statement: “The Bar Association of Sri Lanka (hereinafter referred to as “BASL”) notes with grave concern reports in the public domain that the Government is considering the introduction of an amendment to the Constitution to increase the age of retirement of Judges of the Court of Appeal and the Supreme Court.
It is the considered view of the BASL that the age of retirement of the judges of the Court of Appeal and the Supreme Court which has stood at 63 years and 65 years respectively from the promulgation of the 1978 Constitution, should not be changed arbitrarily and that such a change is neither necessary nor desirable.
To do so will result in the loss of public confidence in the integrity of the legal system and of the Government’s commitment to preserve and protect the rule of law and the independence of the judiciary. Members of the public are likely to question the motives of the Government in bringing in a Constitutional amendment solely for this purpose.
Your Excellency is no doubt aware that the cadre of the Judges of the Court of Appeal was increased from 12 to 20 Judges (including the President of the Court of Appeal) and that of the Supreme Court from 11 to 17 Judges (including the Chief Justice) by the 20th Amendment to the constitution certified on 29th of October 2020. With such enhancement, workwise, there cannot be a real requirement to extend the retirement ages of these judges.
Your Excellency is aware that altering the retirement age of judges of the apex courts would have to be done through a Constitutional amendment. For many years Sri Lanka’s Constitution has been subject to ad hoc amendments, sometimes in order to cater to the political needs of the government in power and often contrary to the interests of the rule of law, the independence of the judiciary and the judiciary.
Extending the retirement age of the sitting Judges of these Courts at this point of time is likely to be viewed by the public as a blatant attempt to interfere with the judiciary. We believe that to go ahead with such an ad hoc move will also be an affront to the Honourable Judges of those courts.
If the Government goes ahead with such a move it will set a dangerous precedent for future Governments too to introduce ad hoc amendments to the Constitution in respect of the functions of the Judiciary.
The independence of the Judiciary and the public confidence reposed in it, are indispensable pillars of the Rule of Law and the democratic framework of our Republic. In that regard, it is of paramount importance that the Judiciary must not only remain independent in fact, but must also be seen by the public to be wholly independent, impartial, and free from even the slightest perception of influence, favour, accommodation, or impropriety.
The Bar Association of Sri Lanka is therefore constrained, in the discharge of its duty to uphold and safeguard the Rule of Law and the independence of the Judiciary, to respectfully express its serious concern regarding any such proposed amendment, which is neither in the interests of the Judiciary and nor of the people.
In the circumstances, the BASL respectfully urges Your Excellency not to proceed with any proposed constitutional amendment seeking to increase the retirement age of the members of the Judiciary including Judges of the Court of Appeal and the Supreme Court.
We remain confident that Your Excellency will give due consideration to the importance of preserving and protecting the independence, integrity, dignity, and public confidence in the Judiciary, which is essential to the maintenance of the Rule of Law and democratic governance in Sri Lanka.”
Govt. declines to respond
A member of the Cabinet yesterday declined to comment on the BASL’s letter to President Anura Kumara Dissanayake. The Minister said that he wouldn’t comment for the time being.
News
New US tariffs proposed on 60 countries, including Sri Lanka
12.5% additional duties on goods imported from Colombo
The US has proposed additional duties of 10% or 12.5% on imports from 60 economies, including Sri Lanka, over their alleged failure to curb trade in goods made with forced labour.
The proposal made by US Trade Representative’s (USTR) office in terms of Section 301 unfair trade practices investigation to be released, news agencies reported, pointing out that the Trump administration was seeking to rebuild its emergency tariffs, which were struck down by a US Supreme Court decision in February.
The USTR said it determined that it would impose 10% duties related to the forced labour investigation on imports from Canada, Ecuador, the European Union, Indonesia, Mexico, Pakistan, Argentina, Bangladesh, Cambodia, El Salvador, Guatemala, Indonesia, Malaysia, Taiwan and Britain.
The trade agency said it would impose additional duties of 12.5% on the remaining 45 countries that were investigated.
“The failure of our most important trading partners to address the importation of goods made with forced labour is unacceptable,” US Trade Representative Jamieson Greer said in a statement. “This creates a dynamic where American workers are forced to compete globally on an unlevel playing field.”
According to the trade agency, the USTR found that Sri Lanka has failed to impose and effectively enforce a forced labour import prohibition.
The USTR noted that the results of its investigation indicate that the acts, policies and practices of Sri Lanka related to the failure to impose and effectively enforce a forced labour import prohibition are unreasonable and burden or restrict US commerce.
Accordingly, it has proposed to impose 12.5% additional duties on goods imported from Sri Lanka.
The USTR said it also was proposing a textile mechanism that would allow for a certain volume of apparel and textile imports to enter the US at a reduced tariff rate, though the duties and volumes were not disclosed.
The announcement comes ahead of the July 24 expiration of a 10% temporary tariff imposed by the Trump administration on February 20, the day the Supreme Court struck down US President Donald Trump’s tariffs under the International Emergency Economic Powers Act.
On Monday, the USTR proposed a 25% duty on many Brazilian goods as a result of a Section 301 investigation into the country’s digital trade practices and preferential tariffs. The trade agency is also expected to soon unveil the findings of another major Section 301 probe into the buildup of excess industrial capacity in 16 trading partners, including China.
In the forced labour findings, the USTR said it would exempt from the tariffs a number of products, including energy, rare earths and certain other metals, beef, coffee, certain fruits and vegetables, pharmaceuticals, organic chemicals and aircraft parts.
The USTR said it would accept public comments on the proposed tariffs and other remedies through July 6, with a public hearing scheduled for July 7.
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