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Minister Cabraal says lockdowns as devastating as Covid-19

Published

5 years ago

2021/09/2

By Shamindra Ferdinando

State Minister of Money and Capital Market and State Enterprise Reforms Ajith Nivard Cabraal says that in spite pressure mounting on the govenrment to extend the current lockdown further, it should tread cautiously.

State Minister Cabraal, who served as the Governor of the Central Bank, from 2006 to 2015, said that lockdowns caused irreparable damage at a time the national economy was under severe pressure due to Covid-19. The lockdowns could be quite devastating and inflict unbearable losses on the economy, he noted.

Cabraal pointed out that those who relentlessly pushed for lockdowns didn’t take into consideration other vital factors. He said the people should strictly follow health guidelines and get vaccinated, as quickly as possible.

In addition to State Minister Cabraal, Aviation Minister and SLPP strongman in Gampaha, Prasanna Ranatunga, also opposed the lockdown.

Noting that a section of the government, too, had called for the lockdown, State Minister Cabraal urged all stakeholders to examine the situation in its entirety without focusing on selected factors.

The Island: State Minister, you emphasised several times how lockdown undermined the national economy. You also pointed out difficulties caused by it. However, the government not only declared a lockdown on August 20 for ten days, but extended it till Sept 6. Did you ask/advise the administration against it?

State Minister: Medical authorities have been constantly requesting the lockdown of the country in order to deal with the pandemic. Unfortunately, the counter argument setting out the economic damage that is caused as a result of such closure has not been presented adequately. That is why it’s important that the facts, figures and impact of a lockdown are known and understood, so that more informed decisions can be made in the future.

The Island: In 2018 and 2019 govt collected over Rs 1,900 as revenue. But, that figure dropped to little over Rs 1,300 bn in 2020. Can you blame that on Covid because the Opposition says the government lost over Rs 500 bn by doing away with a spate of taxes on addition to the reduction of duty on sugar to 25 cents from Rs 50 per kilo?

State Minister: In 2019, the government had estimated to collect about Rs. 2.2 trillion as revenue. However, due to the sharp contraction of the economy following the massive Easter Sunday carnage that sent shock waves across the world and debilitated the country’s vibrant tourism industry, the actual revenue dropped drastically to about Rs. 1.9 trillion only: a decrease of about Rs. 0.3 trillion! Hence, it was clear that the abnormally high rates of income taxes, VAT and other duties were counterproductive and were not yielding the estimated results. That is why the new government reduced the tax rates so that the business sector could be given a boost to grow fast and the economy could revive and recover. In fact, ifhad the government not reduced taxes at that time, the entire business sector would have collapsed because by that time, businesses were stagnant due to the high interest rates and high taxes. Unfortunately, however, the progressive policy measure of lowering all taxes including customs duties, did not lead to the intended consequence of the expected stimulation of the economy mainly due to the pandemic effect and lockdown. However, it must be said that the economic fallout from the pandemic would have been a lot worse and people driven to severe poverty and despair had the taxes not been reduced by end 2019. In fact, in such a scenario, the entire country may have even come to a grinding halt, with the industries and services sectors collapsing.

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PM participated in ’Swarnabhivandana 2026,’ Sacred Relic Veneration Ceremony

Published

1 hour ago

2026/05/4

Priyan

In line with the 2026 Vesak Poya Day, the ‘Swarnabhivandana 2026’ Sacred Relic Veneration ceremony, organized by the Sri Sudarshanarama Temple, Kiribathgoda under the guidance of the Chief incumbent of the temple, and the Head of the Department of Pali and Buddhist Studies at the University of Ruhuna and a Senior Lecturer Ven. Makola Mangala Nayaka was held on 3rd of May with the participation of Prime Minister Dr. Harini Amarasuriya.

The Prime Minister stated that it was a rare privilege to take part in such a noble religious event. She noted that devotees have been presented with a rare opportunity to venerate sacred relics, including those of the Supreme Buddha and Maha Arahants of Seewali, Angulimala, Anuruddha, and Mihindu Theros.

She further emphasized that such religious programmes contribute to the spiritual development of society and help invoke blessings upon the country.

The Prime Minister also expressed her sincere gratitude to the Chief Incumbent Thero for his guidance in successfully organizing this meritorious event, as well as to the Dayaka Sabha of the temple and all those who contributed with dedication.

[Prime Minister’s Media Division]

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Heat Index at Caution Level in the Northern, North-central, Eastern, Sabaragamuwa and North-western provinces and in Colombo, Gampaha, Hambantota and Monaragala districts during the day time

Published

8 hours ago

2026/05/4

Priyan

Warm Weather Advisory
Issued by the Natural Hazards Early Warning Centre
Issued at 3.30 p.m. on 03 May 2026, valid for 04 May 2026.

The Heat index, the temperature felt on human body is likely to increase up to ‘Caution level’ at some places in the Northern, North-central, Eastern, Sabaragamuwa and North-western provinces and in Colombo, Gampaha, Hambantota and Monaragala districts during the day time.

The Heat Index Forecast is calculated by using relative humidity and maximum temperature and this is the condition that is felt on your body. This is not the forecast of maximum temperature. It is generated by the Department of Meteorology for the next day period and prepared by using global numerical weather prediction model data.

Effect of the heat index on the human body is mentioned in the above table and it is prepared on the advice of the Ministry of Health and Indigenous Medical Services.

ACTION REQUIRED
Job sites: Stay hydrated and takes breaks in the shade as often as possible.
Indoors: Check up on the elderly and the sick.
Vehicles: Never leave children unattended.
Outdoors: Limit strenuous outdoor activities, find shade and stay hydrated.
Dress: Wear lightweight and white or light-colored clothing.

Note:
In addition, please refer to advisories issued by the Disaster Preparedness & Response Division, Ministry of Health in this regard as well. For further clarifications please contact 011-7446491.

News

USD 3.7 bn H’tota refinery: China won’t launch project without bigger local market share

Published

8 hours ago

2026/05/4

Thilina Walpola

China has declared that China Petroleum and Chemical Corporation (SINOPEC) will not proceed with the USD 3.7 bn Hambantota oil refinery project unless a consensus could be reached on the percentage of the output that could be sold in the local market.

China has informed the NPP government that SINOPECwill not be able to sustain the project in terms of the original agreement that stipulated that 80% of the output be exported and 20 % sold in the Sri Lankan market, according to sources familiar with the issue.

Once fully operational, the strategic facility will be able to process 200,000 barrels of crude oil a day. The proposed facility, together with the Hambantota International port, which was taken over by China in 2017 on a 99-year lease, emphasise significant Chinese presence in the country.

SINOPEC with about 12% market share is among the foreign companies engaged in fuel distribution in Sri Lanka at the moment. Other foreign players are Lanka India Oil Company (LIOC) and joint venture by Shell Brands International AG (Shell) and RM Parks (Private) Limited, the latter being the latest entrant.

LIOC entered the market way back in 2003 during Ranil Wickremesinghe’s tenure as the Prime Minister. LIOC holds the second biggest market share with 211 fuel stations with SINOPEC being third and joint Shell Brands International AG (Shell) and RM Parks (Private) Limited in fourth place. CPC remains the market leader with some 800 odd fuel stations countrywide.

Sources said that whatever the Chinese and Sri Lankan government representatives said in public the launch of the project primarily would depend on a new formula. The Island learns that the Chinese expect to sell 30% of the output here. “The Chinese are of the view that 20% share is not sufficient to sustain the project,” sources said.

Sri Lanka and China in January 2025 announced plans for the SINOPEC project dubbed the largest single Chinese direct investment here following President Anura Kumara Dissanayake’s three-day state visit to Beijing. Dissanayake’s delegation included Minister of Foreign Affairs, Employment and Tourism Vijitha Herath, Minister of Transport, Highways, Ports and Civil Aviation Bimal Rathnayake, and Sri Lankan Ambassador to China, Majintha Jayesinghe. Outspoken Chinese Ambassador to Sri Lanka Qi Zhenhong was also present at all key meetings with representatives of China Petrochemical Corporation (SINOPEC Group), China Communications Construction Company Ltd (CCCC), China Merchants Group (CMG), Huawei, and BYD Auto, a leading company in the automobile manufacturing sector.

Pointing out that Sri Lanka and China hadn’t been able to resolve the knotty problem for about 15 months, sources said that Sri Lanka was also under pressure from India to expedite the Trincomalee oil tank farm development project. Sri Lanka finalized an agreement with India and United Arab Emirates (UAE) in early April 2025 to develop Trincomalee as an energy hub.

Sources said that in line with the overall plans involving China as well as India-UAE, Sri Lanka was required to enhance the fuel storage facilities as soon as possible. The ongoing West Asia conflict underscored the responsibility on the part of the incumbent dispensation to take tangible measures to enhance storage facilities.

The Trincomalee and Hambantota projects could be on a collision course, sources said. The likelihood of Indo-Lanka agreements in respect of WW two era oil tank farms in Trincomalee, particularly the one negotiated during Gotabaya Rajapaksa’s presidency having animpact on the Hambantota oil refinery couldn’t be ruled out, sources said.

President Dissanayake during his May Day address disclosed the crisis faced by his government in ensuring uninterrupted oil supplies. Dissanayake said that the government had no option but to increase fuel quotas given to various categories in view of the arrival of fuel ships in Colombo as Sri Lanka lacked storage facilities.

Sources said that energy insecurity was at stake due to the continuing instability in the global markets caused by US actions in Hormuz Strait.

Newly-appointed Energy Minister Anura Karunathilake is believed to be engaged in consultations with relevant parties. Earlier Punyakumara Dissanayake who resigned recently over the coal scam handled the Hambantota refinery matter.

by Shamindra Ferdinando