News
Sri Lanka repays $20m Iranian oil debt with tea
Colombo (Sri Lanka) (AFP) – Cash-strapped Sri Lanka said Wednesday it had exported tea worth $20 million to Iran to partially repay its $251 million oil debts, with Colombo saying Tehran’s visiting foreign minister had expressed “satisfaction” at the deal.
“So far $20 million worth of tea has been exported to Iran under the barter trade agreement,” Sri Lankan Prime Minister Dinesh Gunawardena’s office said in a statement after talks with Iranian Foreign Minister Hossein Amir-Abdollahian.
The tea-for-oil deal was agreed upon in December 2021, but exports were delayed by Colombo’s economic crisis that forced then-president Gotabaya Rajapaksa to step down in July 2022.
The barter deal allows sanctions-hit Iran to avoid having to use scarce hard currency to pay for imports of popular tea.It also allowed Sri Lanka to pay with tea, as the country was short of foreign currency.
Sri Lankan officials have previously said that the tea-oil swap did not break US sanctions on Iran, since tea was a food item and the deal did not involve Iranian blacklisted banks.The island defaulted on its $46 billion foreign debt in
April 2022 and secured a $2.9 billion IMF bailout early last year.Ceylon tea, known by the island’s colonial-era name, made up nearly half of Iran’s consumption in 2016. However, the proportion has declined in recent years.
News
Sajith raises fresh concerns over toxic pollutants emanating from burning of substandard coal
Opposition and SJB Leader Sajith Premadasa yesterday raised serious concerns over the Government’s importation of substandard coal, warning that its use has resulted in inefficient electricity generation, increased equipment damage and significant financial losses to the State and consumers.
In a video statement, the Opposition Leader said the SJB had exposed details regarding the importation of inferior-quality coal, prompting what he described as an admission by Government representatives that the coal in question was of poor standard.
Premadasa charged that the continued use of such coal has reduced generation efficiency at the Norochcholai Power Station, while increasing the likelihood of damage to critical equipment.
He further claimed that ash content had risen sharply, from the accepted 11–15 percent range, to over 21 percent, doubling the volume of toxic pollutants generated. The disposal of the excess ash, he said, poses additional environmental risks.
The Opposition Leader also noted that a further 15 to 16 coal shipments are expected to arrive within the next two to three months. However, he alleged that the failure to procure high-quality coal has reduced megawatt output, necessitating greater reliance on fuel-powered plants to bridge the shortfall.
“This results in financial losses to the country, the Government, and, ultimately, to electricity consumers,” he said.
Premadasa cited Section 30 of the Electricity Act of 2009, maintaining that consumer tariffs can only be imposed, based on efficient electricity generation. He urged the Public Utilities Commission of Sri Lanka to safeguard the rights of the country’s 7.5 million electricity consumers, insisting that losses stemming from inefficient generation cannot lawfully be passed on to the public.
He further alleged that the Government’s promised “system change” had, instead, resulted in questionable coal procurement deals. The financial losses incurred through, what he termed, corrupt transactions, he argued, could have been channelled into essential public services, such as education, healthcare, poverty relief and support for entrepreneurs.
Premadasa called not for the appointment of a committee of experts, but for a full forensic audit into the transactions surrounding the coal imports.
He stressed that the SJB would continue to stand in defence of electricity consumers and asserted that the President and Cabinet must accept responsibility for the damage allegedly caused to the Norochcholai power plant, which, he described, as a national asset.
News
Cyclone Ditwah relief halted over unresolved issues
Grama Niladharis, Disaster Relief Service Officers, and Technical Officers have temporarily suspended Cyclone Ditwah-related relief operations, citing unresolved administrative and financial issues. The halt began yesterday (27).
The decision stems from the absence of a formal circular for relief assessment and the non-payment of promised allowances.
Upul Kumara, Chairman of the All Island Disaster Relief Services Officials’ Union, said there is still no proper system in place for delivering Cyclone Ditwah relief.
He added that trade unions, representing Grama Niladharis, who manage relief distribution, and Technical Officers, responsible for disaster damage assessments, had discussed continuing relief operations. Despite this, 95 days after the cyclone struck, the government has yet to implement the necessary mechanisms to ensure proper relief delivery.
“As a result, all parties involved have collectively decided to initiate this trade union action,” Kumara said.
He noted that discussions with the relevant secretaries had already taken place and formal demands submitted. “We are informing the President that we no longer require discussions with the secretaries. Our demands have been presented. This action is, therefore, necessary,” he added.
Kumara emphasised that all Grama Niladharis, Disaster Relief Service Officers, and Technical Officers, engaged in relief operations, will suspend Ditwah-related duties until proper directives are issued and allowances are paid.
News
Fugitive “Podi Lassi” brought back from India
Alleged organised crime figure and large-scale drug trafficker Arumahandi Janith Madhusankha de Silva, widely known as “Podi Lassi,” was brought back to Sri Lanka from India, yesterday morning (27), by a special police team.
The suspect, who had reportedly fled to India by sea after being released on bail on 09 December, 2024, was arrested in Mumbai, in January 2025, by Indian security authorities following diplomatic engagement between Colombo and New Delhi and with the intervention of Interpol.
He was brought back through the Bandaranaike International Airport at 5.55 a.m. on SriLankan Airlines flight UL-142 from Mumbai. Upon arrival, he was escorted out of the airport under tight security by officers of the CID.
Police said the suspect was immediately taken into custody and transported under heavy guard before being handed over to the Elpitiya Divisional Crimes Investigation Bureau for further investigations. He is also due to be handed over to the Galle Division Criminal Investigation Department for additional inquiries.
Police Media Spokesman ASP F.U. Wootler stated that “Podi Lassi” was wanted in connection with several murders in the Southern Province, as well as for allegedly violating strict bail conditions imposed by a court.
The Balapitiya Magistrate’s Court had granted him bail on 09 December, 2024, under stringent conditions. However, subsequent investigations by Sri Lanka Police revealed that he had fled the country in violation of those conditions and was believed to be hiding in India.
Following the discovery of his whereabouts, the Acting Inspector General of Police directly shared intelligence with Indian authorities, leading to his arrest. Diplomatic channels were then activated to facilitate his swift return to Sri Lanka.Police said further investigations are continuing.
by Norman Palihawadane and Hemantha Randunu
-
Features6 days agoWhy does the state threaten Its people with yet another anti-terror law?
-
Features6 days agoReconciliation, Mood of the Nation and the NPP Government
-
Features6 days agoVictor Melder turns 90: Railwayman and bibliophile extraordinary
-
Features5 days agoLOVEABLE BUT LETHAL: When four-legged stars remind us of a silent killer
-
Features6 days agoVictor, the Friend of the Foreign Press
-
Business5 days agoSeeing is believing – the silent scale behind SriLankan’s ground operation
-
Business5 days agoBathiya & Santhush make a strategic bet on Colombo
-
Features6 days agoBarking up the wrong tree
