News
SJB unionist: IOC and Sinopec benefit from special levy on fuel to recover CPC losses
By Shamindra Ferdinando
Even after imposing 18 percent Value Added Tax (VAT) on fuel with effect from January 1, the government continued to charge Rs 50 on a litre of both petrol and diesel purportedly to recover losses incurred by the highly corrupt state owned Ceylon Petroleum Corporation (CPC) over the years, Samagi Jana Balawegaya trade union leader Ananda Palitha told The Island yesterday (01).
The CPC owed the public an explanation why those who had been struggling to make ends meet were forced to pay for losses caused by waste, corruption, irregularities and mismanagement at all levels at the government managed entity, the former UNP activist said.
According to Ananda Palitha, the government introduced Rs 50 charge on each litre of petrol or diesel sold with effect from June 01, 2023 due to accumulated government-guaranteed debt of nearly USD 3 bn owed by the CPC to the Bank of Ceylon and People’s Bank transferred to the Treasury in line with a Cabinet decision.
Palitha pointed out that two private enterprises, namely Lanka Indian Oil Company (LIOC) and Chinese giant Sinopec, had been the main beneficiaries of the controversial levy.
The trade unionist took up this issue in the wake of the new pricing formula announced at midnight on January 1.
The CPC and LIOC increased the price of a litre of petrol 92 by Rs 20 to Rs 366 whereas Sinopec priced the litre at Rs 363. The CPC and LIOC increased the price of litre of auto diesel by Rs 29 to Rs 358 while Sinopec priced the litre at Rs 355. The CPC, LIOC and Sinopec priced petrol 95 and super diesel at Rs 464 and Rs 475, respectively, having increased the price of litre by Rs 38 and Rs 41. A litre of kerosene has been reduced by Rs 11 to be priced at Rs 236.
Contrary to various reports regarding the new pricing formula, the government imposed 18 percent VAT after having abolished 7.5 percent Port and Airport Development Levy aka PAL but retained the unprecedented Rs 50 charge on a litre of diesel and petrol.
Ananda Palitha alleged that the Cabinet approved original plan to levy 1% tax on monthly sales of new entrants to the domestic fuel market, namely Chinese oil giant Sinopec, US-based R.M. Parks and United Petroleum of Australia was reversed and a special charge of Rs. 50 imposed on hapless consumers. The US and Australia-based firms are yet to launch operations here.
One percent tax was to be utilized to settle USD 3 billion loans taken by the CPC but following representations made by Sinopec, the government abolished 1% tax on their sales, Ananda Palitha said, urging the Opposition to examine the issue at hand without further delay.
Responding to another query, the political activist found fault with the Parliament for not looking into the pricing formula, regardless of the media relentlessly taking up the issue. The Opposition, too, had been largely silent while the government allowed Indian and Chinese state companies to make a killing, the SJB trade union leader alleged. “We are contemplating lodging a complaint with the Commission to Investigate Allegations of Bribery or Corruption. Can a bankrupt country allow foreign companies to make such huge profits at the expense of the public?” Ananda Palitha asked.
The government repeatedly assured that the entry of foreign players would stabilize the local market and ensure uninterrupted supply, Ananda Palitha said. “We were told of competitive pricing formulas and quality products at affordable prices. But, the foreign players are now making unconscionable profits with the blessings of the government,” the activist said.
News
Compensation payments and reconstruction activities related to the Ditwah relief measures must be expedited with special attention at the district level – PM
Prime Minister Dr. Harini Amarasuriya emphasized that compensation payments and reconstruction activities related to the Ditwah relief measures must be expedited with special attention at the district level. She further stated that all necessary allocations have already been made to Provincial Councils and instructed that the progress of disaster damage assessments and reconstruction efforts be closely monitored at the provincial level.
The Prime Minister made these remarks at a discussion held on Tuesday (21) at Temple Trees under her patronage, aimed at informing Chairpersons of District Coordination Committees and public representatives from disaster-affected districts, in order to accelerate the implementation of the “Rebuilding Sri Lanka” programme. The discussion focused on expediting disaster relief and compensation payments, as well as the swift restoration of infrastructure damaged by the disaster.
The Prime Minister emphasized that Rs. 500 billion has been allocated for damages caused by the Ditwah cyclone, and that all relevant development activities must be completed before the end of 2026. The Prime Minister also instructed officials to pay special attention to resolving issues at the local level that are causing delays in compensation payments.
Senior Additional Secretary to the President, G.M.R.D. Aponsu, stated that the estimated cost for reconstruction following the Ditwah cyclone is approximately USD 3.4 billion. Accordingly, funds have been allocated for compensation across several sectors including housing and social infrastructure, agriculture and livestock, fisheries, industry and livelihoods, and irrigation. He further noted that 99% of the Rs. 25,000 allowance has already been disbursed, while 95% of the Rs. 50,000 resettlement allowance has been paid. Compensation for fully and partially damaged houses is still ongoing, and 99% of temporary relief centres have been closed.
Additionally, attention was drawn to several other measures, including providing Rs. 25,000 to affected schoolchildren, paying Rs. 1 million as compensation for each deceased individual, compensation for children who lost one or both parents, support for persons with disabilities affected by the disaster, compensation for agricultural losses, and expediting resettlement of displaced families. Measures such as allocating land for new housing construction and accelerating the issuance of reports from the National Building Research Organization were also discussed.
Focus was also placed on the reconstruction of affected schools, hospitals, and daycare centres, improving the accuracy and speed of data collection at the local level, and accelerating infrastructure development.
The event was attended by Minister of Plantation and Community Infrastructure Samantha Vidyarathna, Minister of Public Administration, Provincial Councils and Local Government Dr. Chandana Abayarathna, Deputy Minister of Agriculture and Livestock Namal Karunaratne, Deputy Minister of Trade, Commerce, Food Security and Cooperatives R.M. Jayawardena, Deputy Minister of Education Dr. Madhura Senevirathna, Members of Parliament, Chairpersons of District Coordination Committees, Chief of Staff to the President and Commissioner General of Essential Services Prabath Chandrakeerthi, Additional Secretary to the President Jayantha Bandara; and officials of the Prime Minister’s Office.
[Prime Minister’s Media Division]
News
Parliament urged to probe questionable payment of USD 2.5 mn from Treasury
… five senior officials suspended
President’s Counsel Maithri Gunaratne has urged the Parliament to intervene in an ongoing investigation conducted by the Treasury into the wrongful payment of USD 2.5 mn loan instalment to a third party instead of the country that gave the loan to the Government of Sri Lanka.
Gunaratne, in a letter addressed to Speaker Dr. Jagath Wickremaratne copied to leaders of all political parties represented in Parliament, General Secretaries of those political parties, Committee on Public Finance, Auditor General and National Audit Office, has stated the payments were made between December 2025 and January 31, 2026.
Lawyer Gunaratne took up the issue on behalf of civil society grouping ‘Free Lawyers’ after gathering information related to the alleged payments. Spokesman for ‘Free Lawyers’ Keerthi Tennakoon told The Island that they expected the Parliament to act swiftly and decisively. Pointing out that the ‘disappearance’ of USD 2.5 mn took place amidst the massive National Development Bank (NDB) fraud, amounting to Rs. 13.2 bn, Tennakoon emphasised the responsibility of the Parliament to take charge of the investigation.
According to Gunaratne’s letter, seen by The Island, following an international investigation carried out by a technical committee, two Treasury Directors, two Deputy Treasury Directors and a senior official responsible for IT had been interdicted.
As the relevant payments amounted to USD 2.5 mn, the process couldn’t have been completed without the involvement of the Deputy Secretary, Treasury and Treasury Secretary, Gunaratne stated.
According to him, the Central Bank had been responsible for loan payments until recently but the alleged irregularities happened after that task was brought under the Department of External Resources and Public Debt Management Office.
The Free Lawyers said that as the Secretary to the Treasury, Harshana Suriyapperuma, was also the Secretary to the Finance Ministry, the Parliament should intervene to establish a suitable mechanism to investigate this.
Former NPP National List lawmaker Harshana Suriyapperuma succeeded Mahinda Siriwardena in late June 2025.
Tennakoon said that they felt the need to bring the shocking development to the public domain as those who knew of the incident remained silent.
By Shamindra Ferdinando
News
USD 2 mn bribe: CID ordered to arrest Shasheendra R, warrant issued against ex-SriLankan CEO’s wife
Colombo Fort Magistrate Isuru Neththikumara has directed the Criminal Investigation Department (CID) to arrest former SriLankan Airlines board member Shasheendra Rajapaksa and produced him in court in connection with the ongoing probe into the Airbus deal during his uncle President Mahinda Rajapaksa’s second term.
The Magistrate sought an explanation from the CID regarding the delay in executing the arrest warrant in respect of Shasheendra Rajapaksa when the case was taken up yesterday (22).
Neththikumara issued a warrant on Priyanka Nayomali Wijenayake, the wife of former SriLankan Chief Executive Officer Kapila Chandrasena, over the investigations into the Airbus transaction.
The Chandrasenas have been accused of receiving US 2 mn bribe to facilitate the transaction.
The Commission to Investigate Allegations of Bribery or Corruption (CIABOC) is also inquiring into the Airbus deal. The Magistrate further ordered that the case pending before the Court be called again on May 20.
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