News
Ministry of Power and Energy signs agreement with RM Parks Inc to ensure uninterrupted fuel supply
In a bid to address the foreign exchange crisis in Sri Lanka and ensure a steady supply of fuel, the Ministry of Power and Energy has taken decisive action. Accordingly, an agreement was signed on Thursday (08) at the Presidential Secretariat, between the Government of Sri Lanka and RM Parks Inc., a prominent international company operating in collaboration with Shell, marking a significant step towards securing a long-term contract for the importation, storage, distribution, and sale of petroleum products in the country.
This development comes after the Ministry explored various strategies to overcome the challenges posed by the foreign exchange crisis and guarantee a continuous fuel supply to consumers.
The current economic situation has hindered the Ceylon Petroleum Corporation (CPC) and Lanka Indian Oil Company (LIOC) from importing fuel shipments as planned. Insufficient foreign exchange at the time of opening Letters of Credit and settling bills has exacerbated the issue.
Consequently, the Ministry sought solutions to mitigate these challenges, leading to the invitation of Expression of Interests (EOIs) from reputable petroleum companies.
Following a rigorous evaluation process, several companies were shortlisted and invited to submit detailed proposals. The Cabinet Appointed Special Committee (CASC) and the Technical Evaluation Committee (TEC) carefully scrutinized these proposals and recommended the awarding of contracts to the following companies, subject to negotiations:
- M/s Sinopec Fuel Oil Lanka (Private) Limited, located at F5, Hambantota Maritime Centre, Mirijjawila, Hambantota, Sri Lanka.
- M/s United Petroleum Pty Ltd, situated at 600 Glenferrie Rd, Hawthorn, Victoria 3122, Australia.
- M/s RM Parks, headquartered at 1061 N. Main St, Porterville, CA 93257, USA, in collaboration with Shell.
After thorough consideration of the recommendations made by the CASC and the Committee appointed by the Cabinet of Ministers, the Cabinet granted its approval to award contracts to the selected suppliers. The contract agreement with M/s Sinopec Fuel Oil Lanka (Private) Limited and its parent companies was signed on May 22, 2023, following successful negotiations.
Furthermore, negotiations with M/s RM Parks have also reached a fruitful conclusion and the contract agreement between the parties was signed on Thursday, June 8, 2023, at 3:00 pm at the Presidential Secretariat.
RM Parks Inc., in collaboration with Shell, aims to commence operations in Sri Lanka within 45 days after the issuance of the license. This agreement marks a significant milestone in ensuring a reliable and uninterrupted supply of fuel to meet the country’s energy needs amid challenging economic circumstances.
The event was attended by Power and Energy Minister Kanchana Wijesekera, Foreign Affairs Minister Ali Sabri, State Ministers D.V. Chanaka, Indika Anuruddha, Shehan Semasinghe, Presidential Senior Adviser on National Security and Chief of Presidential Staff Sagala Ratnayaka, American Ambassador to Sri Lanka Julie Chung, secretaries of pertinent ministries, government officials, and various dignitaries.
Latest News
Sun directly overhead Mannar, Periyamadu, Puliyankulam, Welioya and Pulmoddai about 12.11 noon today (30)
The sun is going to be directly over the latitudes of Sri Lanka from 28th of August to 07th of September due to its apparent southward relative motion.
The nearest places of Sri Lanka over which the sun is overhead today (30) are Mannar, Periyamadu, Puliyankulam, Welioya and
Pulmoddai about 12.11 noon.
News
Lanka tracks 11 US-sanctioned Iranian tankers off coast
(AFP) Sri Lanka’s maritime authorities were monitoring a fleet of 11 US-sanctioned Iranian oil tankers just off the island’s southern coast, the foreign minister said Wednesday.
The tankers were spotted close to the Galle harbour where an Iranian frigate, IRIS Dena, was sunk by a US submarine in March, killing 104 sailors. Sri Lanka’s navy rescued 32 Iranian sailors from that frigate.
Iranian vessels have been in limbo, unable to return to their home port because of a US blockade.
Sri Lanka’s Foreign minister Vijitha Herath said the tankers were in international waters where they had freedom of navigation.
“These ships are away from our territorial waters… we have no hold on them, nor have we facilitated them,” Herath told AFP.
The military deployed reconnaissance aircraft and patrol boats to monitor the vessels outside Sri Lanka’s 12-nautical-mile territorial waters, a military official told AFP on condition of anonymity.
“There is no indication of any ship-to-ship transfer of oil or illegal discharge of pollutants, so there is no basis for Sri Lankan authorities to take action against them,” the official said.
Many Iranian merchant vessels moved east towards the Strait of Malacca and Singapore due to US sanctions, while several remained near Sri Lankan waters, authorities said.
Sri Lankan officials said Washington had not formally notified Colombo about sanctioned Iranian-flagged vessels
News
House to debate abolition of Chief of Defence Staff post
Parliament is to debate next Wednesday the Government’s proposal to abolish the post of Chief of Defence Staff (CDS), with the Second Reading of the Chief of Defence Staff (Repeal) Bill scheduled for September 9.
The Bill seeks to repeal the Chief of Defence Staff Act No. 35 of 2009, which was introduced shortly after the end of the armed conflict.
According to Secretary General of Parliament Kushani Rohanadeera, Parliament will meet from September 8 to 11, with the business for the week approved by the Committee on Parliamentary Business chaired by Speaker Dr. Jagath Wickramaratne.
The debate on the Chief of Defence Staff (Repeal) Bill is scheduled to take place from 11.30 a.m. to 5 p.m. on Wednesday, following questions to the Prime Minister and other parliamentary business.
The CDS post was established under the 2009 Act as part of the country’s higher defence command structure.
On Tuesday, September 8, the House will consider two Orders published in Extraordinary Gazettes under the Motor Traffic Act from 11.30 a.m. to 5 p.m., followed by an Opposition motion at the adjournment.
On Thursday, September 10, Parliament will debate a Resolution under the Women’s Empowerment Act.
The final sitting day of the week, Friday, September 11, has been allocated from 11.30 a.m. to 5.30 p.m. for several Private Members’ Motions.
The motions will cover issues including regulation of the petroleum, fuel and water industries, measures to increase the birth rate, protection of the Diyagama Forest, pension deductions affecting Pirivena teachers, food-crop cultivation in mountainous areas, development of the Kithul industry and the establishment of a Faculty of Medicine at South Eastern University.
Questions at the adjournment will be taken up at the end of each sitting day.
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