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SJB unionist: IOC and Sinopec benefit from special levy on fuel to recover CPC losses

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Ananda Palitha

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.



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Sri Lanka ITEC Alumni Association formally launched

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Sri Lankan professionals trained in India under the Indian Technical and Economic Cooperation (ITEC) programme have formed a national alumni association. The Sri Lanka ITEC Alumni Association was formally launched at its inaugural meeting on Thursday, 8 October 2026, at the Grand Crystal Ballroom of Hotel Taj Samudra, Colombo.

The Association is a unique initiative of the Education Wing of the High Commission of India in Sri Lanka. The Wing oversees India’s education and scholarship programmes for Sri Lanka, including the ITEC programme. The initiative was led by Sandeep Chaudhary, First Secretary (Education), High Commission of India. His vision and support were key to bringing Sri Lanka’s ITEC alumni together under one platform for the first time.

The Government of India launched ITEC in 1964, and it has since become one of the cornerstones of India’s development partnership with countries of the Global South. The programme is fully funded by the Government of India and offers civilian training in a wide range of fields, including public administration, finance, information technology, engineering, management, agriculture, health and the environment. Courses are delivered at leading Indian institutions. Over six decades, ITEC has trained officials and professionals from more than 160 partner countries. Sri Lanka has been one of its most active participants, and thousands of Sri Lankan public servants and professionals have benefited from the programme.

The new Association brings these alumni together from government, semi-government and private sector institutions. Its aims are to foster professional networking, knowledge sharing, capacity development and community service. It will also encourage collaboration among alumni and guide and support future Sri Lankan participants in ITEC programmes. In doing so, the Association seeks to deepen the long-standing friendship and people-to-people ties between Sri Lanka and India.

At the meeting, members elected an Executive Committee to lead the Association. Ms. Gayathri Suveendran was elected President. The other office-bearers are:

Vice Presidents: P.B. Hasith Sandaruwan and Leo Darshan
General Secretary: Anupa Weerarathne
Assistant Secretary: Vimukthi Dushantha
Treasurer: S. Rubadharshan
Assistant Treasurer: I. Ravikumar

Four sectoral committees will carry the Association’s work forward:

Establishment, Administration and Finance: Prof. M.I.M. Mujahid Hilal, M. Farwis, Milroy Aluthwatta, W.P. Suraweera, M.S. Thayaraj and Asinsala Senevirathne.

ICT, Digital Transformation and Innovation: Sujah Ameer, Danushka Diunugala, T.M.M. Perera, Tharanga, M.K.H.P. De Silva, Pubuditha Madushan and Arulkumaran Mahalingam.

Coordination, Organising and Legal Affairs: T. Srirajeevan, Theja Jayathilaka, Eng. A. Lingeswaran, Chaminda K. Uda, Kumuduni, S. Sinthujan and Ananda Arasu.

Media, Public Relations and Publications: Rahul Samantha Hettiarachchi, Dr. Gayani Kaushalya, Anandi Premarathne, Vimukthi Dushantha, R. Suhanthan and Shyam Nuwan Ganewatta.

The founding of the Association marks a significant milestone for the ITEC community in Sri Lanka. It turns individual training experiences in India into a shared national resource, and it adds a new professional dimension to the enduring partnership between the two neighbours.

 

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Measures underway to protect Diyagama Forest as a Reserve — Deputy Minister of Environment

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The government is taking all necessary measures to protect the Diyagama forest area located in Homagama within the Colombo District,  Deputy Minister of Environment, Anton Jayakody,
stated on Friday  (9) while delivering a special address in Parliament.

Originally an abandoned plot of land, it has regenerated naturally over the past two decades into a sensitive ecosystem bearing the characteristics of a rainforest. With rapid urbanization, numerous wildlife species displaced across
the Colombo District have now migrated to and found sanctuary in this ecological haven.

Citing field research conducted by a team of scholars from the University of Colombo—including Prof. S.W. Ranwala, Prof. Ileperuma, and Prof. Abeykoon—the Deputy Minister pointed out that nearly 120 species of flora and fauna have been identified in the area. Among them are species endemic to Sri Lanka, as well as rare wildlife such as the red slender loris and pregnant animals close to giving birth, clearly testifying to the rich biodiversity thriving within this habitat.

Located adjacent to the Mahinda Rajapaksa International Stadium and the Japan–Sri Lanka Friendship Baseball Ground, this green zone serves as a vital ecosystem for absorbing carbon
dioxide emitted by athletes and residents in the vicinity.

In addition to directly contributing toward Sri Lanka’s commitments under the Paris Agreement to achieve net-zero emissions by 2050, the forest also functions as a vital catchment area feeding into the Bolgoda water basin.

Accordingly, following the approval of the Colombo District Coordinating Committee (DCC) with the participation of the Divisional Secretary, government officials, and environmentalists, steps will be taken to submit a Cabinet paper to formally declare this valuable woodland a forest reserve, the Deputy Minister emphasized.

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NPP govt. reminded of its responsibilities as US warship leaves Colombo

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Alireza Delkhosh

Stranded Iranian ships off SL:

Iran has reminded Sri Lanka that as a member of the UN the government is obligated to fulfil its responsibilities.

Iranian Ambassador Alireza Delkhosh in Colombo said that in terms of the Convention on the Law of the Sea (Article 98) as well as SOLAS and SAR Conventions, Sri Lanka couldn’t refrain from providing the needs of the Iranian vessels stranded in its Exclusive Economic Zone (EEZ).

Ambassador Delkhosh was responding to a recent Foreign Minister Vijitha Herath’s declaration that neither the government nor private companies would provide food, water and medicine to these ships.

The Ambassador questioned how Sri Lanka accepted illegal and unilateral US sanctions against Iran, contrary to the JVP’s much touted historic anti-imperialistic manifesto.

The Iranian vessels are believed to be under constant US surveillance to prevent any supplies from getting through.

The Iranian Embassy made these comments as USS Tulsa (LCS 16), an Independence-variant littoral combat ship arrived in Colombo where it received supplies. The US Embassy declared that; ” this goodwill visit provides an opportunity to strengthen ties between US and Sri Lankan sailors while the ship refuels and resupplies before continuing its mission in the Indo-Pacific.”

Ambassador Delkhosh said that even if the above-mentioned Conventions weren’t adhered to, there existed, what he called, unwritten yet binding conventions that compelled Sri Lanka to assist. “It is the Convention of not forgetting past friendship and Convention of Humanitarian Actions.”

The Iranian envoy emphasised that these conventions that exempt no country from extending humanitarian aid, especially Sri Lanka, which, throughout its recent history, has been a recipient of Iranian assistance.

A section of the international media reported that Sri Lanka faced the risk of secondary sanctions from the United States if Sri Lanka allowed supplies to reach the stranded Iranian vessels. Twenty vessels are believed to be stranded in EEZ.

Former Sri Lankan Ambassador in Tehran, M.M. Zuhair, recalled how the Iranian government swiftly and decisively provided assistance, amidst western efforts to jeopardise the military campaign, by undermining the national economy.

As the war entered a crucial stage, the government found itself in an extremely difficult situation. Following talks at the highest level, Iran provided Sri Lanka with an interest-free and concessionary oil credit facility worth $1.05 billion to help obtain crude oil requirements, President’s Counsel Zuhair said.

If not for the rolling credit line, easing severe foreign exchange pressures, the Rajapakasa government could have faced an insurmountable challenge, the former diplomat said, adding that, unfortunately, those in decision-making positions now have forgotten the past. (SF)

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