News
Trade union says Energy Ministry has regulatory powers to intervene
By Shamindra Ferdinando
The government’s efforts to provide an uninterrupted fuel supply at CEYPETCO pumping stations has suffered a debilitating setback due to theunprecedented heavy demand caused by sharp differences in prices at the CPC-owned and the Lanka India Oil Company (LIOC) managed service stations.
CPC Chairman Sumith Wijesinha yesterday (28) said that with the latest price increase announced by the LIOC, a litre of petrol and diesel, at LIOC service stations, now costs Rs. 27 and Rs 18, respectively, more than at CEYPETO stations.
Wijesinha acknowledged that the difference in prices is the sharpest ever since the entry of LIOC into the Sri Lanka market. A trade union affiliated to the main Opposition Party, the Samagi Jana Balavegaya (SJB) asked the government how the LIOC could increase fuel prices, contrary to the existing agreements.
LIOC entered the Sri Lanka market in 2003 during Chandrika Kumaratunga’s tenure as the President. The Indian state enterprise gradually expanded its operations here and now it operated 202 service stations.
In addition to the oil terminal it managed at Trincomalee, the LIOC owned one-third share in the Ceylon Petroleum Storage Terminals Limited (CPSTL) – a joint venture involving the LIOC and the CPC. The CPSTL operated 13 oil terminals.
Wijesinha admitted that the LIOC had the right to decide on fuel prices on its own. LIOC increased the price of petrol and diesel on Feb 6 and Feb 25, 2022, effective midnight on each day. On Feb 6, LIOC increased the price of a litre of petrol by Rs 7 and diesel by Rs 3. On Feb 25, LIOC jacked up the price of a litre of petrol by Rs 20 and diesel by Rs 15.
Managing Director of LIOC Manoj Gupta, in a statement issued on the eve of Feb 25 price increase said that the steep rise in international oil markets compelled them to increase the price of petrol and diesel. Pointing out that the Brent crude oil price was now over USD 100 per barrel, Gupta blamed the Russian invasion of Ukraine along with drop in supply by OPEC countries for the situation.
In the wake of Feb 6 price increase, Energy Minister Udaya Gammanpila said that he was informed of the impending price increase by the LIOC. The Minister said so when The Island sought his response to the fuel price hike.
Minister Gammanpila, too, acknowledged that in line with the agreement between Sri Lanka and India, the latter could decide on the pricing formula.
The third retailer Laugfs Petroleum follows the CEYPETCO’s pricing formula. Laugfs entered the market in 2004 also during the Kumaratunga’s presidency.
In spite of the cash-strapped and debt-ridden CPC taking massive losses, the government has delayed matching LIOC pricing formula, thereby drawing the vast majority of consumers to its service stations. CPC Chairman Wijesinha said that their daily losses went up sharply as the sales volumes grew.
During a recent meeting chaired by President Gotabaya Rajapaksa at the Presidential Secretariat, Finance Minister Basil Rajapaksa emphasized that imported pharmaceuticals were the only items subjected to price controls.
Opposition trade union grouping representing oil, port and electricity sector workers yesterday (28) questioned the failure on the part of the government to prevent LIOC increasing oil prices contrary to the existing agreement between the two parties. Having earned massive profits in 2021, the LIOC seemed determined to further exploit hapless Sri Lanka, convener of Samagi trade union grouping Ananda Palitha emphasized that LIOC couldn’t under any circumstances increase prices without specific approval from the Energy Ministry in the absence of a Regulator as envisaged in the agreement between the two parties.
Asked whether the price increases announced by the LIOC on Feb 6 and 25 were illegal in terms of the existing agreements, Ananda Palitha pointed out that would be the case if the Energy Ministry opposed the move. Responding to LIOC claims that oil markets were jittery in the wake of the Russian invasion of Ukraine and other related factors, Ananda Palitha stressed that both the CPC and the LIOC still received stocks ordered 35 days ago.
LIOC MD Gupta has stated that his was the only public limited energy company in business here and was accountable for more than 10,500 local shareholders.
The outspoken trade union leader called for a total review of all agreements between Sri Lanka and India as regards LIOC and Trincomalee oil tank farms. According to him, in the absence of proper energy policy Sri Lanka was at the mercy of India and other foreign powers.
Reference was made to the controversial circumstances under which Sri Lanka has finalized an energy deal with the US-based New Fortress Energy, in September last year. The matter is now before the Supreme Court.
Ananda Palitha said that the government couldn’t absolve itself of the responsibility for ensuring steady supply of fuel at reasonable prices to the consumers.
News
Steps are being taken to provide accommodation facilities for 16,000 university students – Prime Minister
Prime Minister Dr. Harini Amarasuriya stated that accommodation facilities will be provided for 16,000 university students through the new university hostel construction programme, and that steps have also been initiated to formulate a comprehensive policy on university student accommodation.
The Prime Minister made these remarks on Wednesday (09 September) in Parliament while responding to questions raised in Parliament.
The Prime Minister stated:
“The University Grants Commission allocated Rs. 376 million in 2025 and Rs. 453 million in 2026 for the renovation of university hostels. The Ministry of Education, Higher Education and Vocational Education allocated Rs. 400 million in 2026 for hostel renovations and Rs. 1,500 million for the construction of new hostels in 2026. All these funds are from domestic allocations. We are implementing these hostel projects without resorting to borrowing. At the same time, allocations have been made through the 2025 and 2026 Budget Estimates for the construction of new hostels under foreign loan financing. These include Rs. 321 million allocated in 2026 for hostels under the Wayamba Urban Development Project, funded through the Saudi Development Loan.
Under the project to establish the Faculty of Medicine at Sabaragamuwa University of Sri Lanka, Rs. 331 million has been allocated under the Saudi Development Loan for the construction of a hostel.
A further Rs. 10.46 million has been allocated for the renovation of hostels under the Wayamba Urban Development Project. Accordingly, Rs. 466 million was allocated for 2025 and Rs. 662.46 million for 2026.
A total of 55 new hostels are scheduled to be constructed during 2025 and 2026 and in the period ahead.
The number of students expected to benefit from these accommodation facilities is 16,000. The University Grants Commission is currently formulating an overall policy on accommodation facilities for students of Sri Lankas state universities. The policy also includes guidelines relating to private student accommodation.
There are instances where university students obtain accommodation in privately operated hostels or rented houses. However, there have been no guidelines governing such accommodation. Until now, there have been no established guidelines regarding charges or minimum standards that should be maintained. We are now in the process of developing guidelines to ensure the safety of students and to prevent them from being subjected to economic exploitation.
The proposed policy is currently being reviewed by the state universities under the purview of the University Grants Commission. The programme will be implemented by the University Grants Commission in direct collaboration with state universities, and there are currently no plans to involve local authorities.
The objective of this policy is to ensure fair, transparent, safe, affordable, accessible and inclusive accommodation facilities for students. In particular, we intend to address the accommodation requirements of university students with disabilities through this programme.
The policy also recognises that students who are unable to obtain university hostel accommodation may obtain accommodation in registered private hostels.
Under the proposed provisions relating to private hostels, minimum standards are expected to be introduced covering accommodation facilities, sanitation, safety, accessibility, affordability and student welfare. The provisions also include arrangements for the fair allocation of accommodation, with particular priority given to students with disabilities; the establishment of a committee to oversee private student hostels; regular inspections; and necessary action against hostels that fail to comply with the required standards. Following consideration of observations and recommendations received from the universities, the draft policy will be revised and subsequently submitted for the process of finalisation.
Of the 55 hostels, priority has been given to universities located away from urban areas. We commenced this project with two hostels at the University of Vavuniya. Accordingly, priority has so far been given to universities such as the University of Vavuniya, the University of Jaffna – Kilinochchi Campus, the South Eastern University, the Uva Wellassa University and the Sabaragamuwa University, where the accommodation issue is particularly acute. Another aspect being considered under the accommodation policy is the limited availability of private accommodation in all parts of the country. Therefore, we are also considering the possibility of constructing additional hostels through a public-private partnership arrangement. For example, the Government could provide land under an agreed arrangement to facilitate the construction of additional accommodation facilities. Discussions are currently being held with the universities regarding this matter”.
Prime Minister Dr. Harini Amarasuriya further stated that steps are also being taken to look into hostel facilities and student welfare activities at vocational training centres, as well as at the Ocean University of Sri Lanka and the University of Vocational Technology.
[Prime Minister’s Media Division]
Opp. lashes out at Justice Minister for disparaging remarks about CLA
By Shamindra Ferdinando
The Joint Opposition yesterday (09) tore into Justice and National Integration Minister Harsha Nanayakkara over some disparaging remarks about the Commonwealth Lawyers Association (CLA) in Parliament on Tuesday (08).
The Convenor of the Opposition grouping, former Law Professor Peiris questioned Minister Nanayakkara’s declaration that the CLA was a private club that granted membership on payments received. Emphasising that the CLA consisted of those in the legal profession in Commonwealth countries, Prof. Peiris told the weekly media briefing at the Flower Road Office of former President Ranil Wickremesinghe that the views expressed by the organisation couldn’t be discarded under any circumstances.
Prof. Peiris dealt with Nanayakkara’s response to the CLA’S concerns about several issues, including the composition of the five-member panel of judges. “How could Minister Nanayakkara dismiss concerns raised by CLA on the basis of the paid-membership of the organisation?” Prof. Peiris asked. If membership became an issue, the government would have to reconsider Sri Lanka’s UN membership, the ex-External Affairs Minister said, pointing out that the country had to make regular payments to retain membership of other UN agencies, as well.
Prof. Peiris said that indefensible attacks on international organisations could cause irreparable damage to the country. Appreciating the CLA’s report on the Supreme Court proceedings on the 01 and 02 September, Prof. Peiris stressed the importance of what he called total transparency in the judicial process. He said that whatever the outcome of a particular legal process, it couldn’t be done behind the backs of the public.
Referring to legal processes regarding the 6th Amendment and 13th Amendment, in 1983 and 1987, respectively, Prof. Peiris said, on both occasions the then Chief Justices Neville Samarakoon and S. Sharvananda constituted benches consisting of all Supreme Court judges.
But, the incumbent CJ Preethi Padman Surasena, in spite of the majority of petitioners demanding all available 13 justices to hear the case, decided to leave out those on the seniority list from second position to fourth position.
The government got offended because the CLA pointed that out for the whole world to take notice, Prof. Peiris said. The former parliamentarian noted that the CJ hadn’t even give a reason for declining the widespread call to involve all available 13 judges. According to him, there had been instances where CJ’s appointed seven justices to hear a particular case. Prof. Peiris cited the 2018 bench of seven judges that heard the petitions against President Maithripala Sirisena over the dissolution of Parliament and a panel constituted in 2023 to hear the 2019 Easter Sunday carnage that claimed the lives of 270 people.
The issue at hand is that the five-member panel of judges hadn’t been selected on the basis of seniority, Prof. Peiris said, once the SC determination was sent and released through the Speaker, they would meticulously examine that to make their position known to the people. Prof. Peiris said that what they really wanted to know was that if seniority hadn’t been the basis for selection what the criterion was.
News
Sri Lanka reiterates its territory won’t be used against India
The Indian Defence Ministry in a statement issued yesterday (09) quoted President Anura Kumara Dissanayake as having assured visiting Defence Minister Rajnath Singh that Sri Lanka would never allow its territory to be used for activities inimical to India’s security interests.
The text of the Indian press release: “Visiting Indian Defence Minister Rajnath Singh called on President Anura Kumara Dissanayake in Colombo on September 09, 2026. The two leaders held substantive discussions on issues covering the entire spectrum of the multi-faceted partnership between the two nations, characterised by traditionally warm relations and mutual trust.
The two sides reaffirmed that as civilisational twins, close neighbours and maritime partners, India and Sri Lanka would continue to work together for their development and welfare of the people while working jointly to ensure the safety, security, peace and prosperity of the region. The senior Indian Minister conveyed greetings on behalf of Prime Minister Narendra Modi and underlined that the citizens of the two countries share deep friendship based on strong historical & civilisational links and people-to-people exchanges.
Extending a warm welcome to Mr. Singh, President Dissanayake recalled his interactions with PM Modi and reiterated that Sri Lanka would never allow its territory to be used for any activities inimical to India’s security interests.
President Dissanayake expressed his gratitude for the relief assistance provided by India as part of Operation Sagar Bandhu during Cyclone Ditwah and the comprehensive rehabilitation package extended by New Delhi to facilitate reconstruction and rehabilitation work across different parts of the island. The powerful Indian Defence Minister emphasised that as a closest friend and neighbour of Sri Lanka, India considered it not a favour, but a responsibility to provide assistance as the first responder and would continue to do so in the future as well.
Both leaders virtually inaugurated three Bailey Bridges constructed by the Indian Defence Forces. The two sides also exchanged MoUs on upgradation of L70 Guns for the Sri Lankan Air Force, and cooperation between National Cadet Corps (NCC) & National Defence Colleges (NDC) of both the countries. The MoU on Upgradation of six L70 guns for the Sri Lankan Air Force falls under a Government of India grant. The upgradation of these air defence guns will significantly strengthen the air defence architecture of critical assets in Sri Lanka. These air defence guns were earlier provided to the Sri Lanka Air Force by India.
The MoU on academic cooperation between NDC, India and NDC, Sri Lanka will facilitate knowledge sharing which will be a significant step in further strengthening the academic bonds between both the sister institutes. The MoU on NCC cooperation will formalise the NCC youth exchange programme between India and Sri Lanka. This exchange programme provides a valuable opportunity for NCC cadets from multiple countries across the world to come to New Delhi every year and participate in NCC events.”
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