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USD 587 needed for planned fuel imports
By Rathindra Kuruwita
Sri Lanka must pay 587 million US dollars for planned fuel imports, until mid-August, Minister of Power and Energy, Kanchana Wijesekera yesterday (03) told the media in Colombo.This amount was equal to 217 billion rupees, at an exchange rate of 367 rupees per dollar, he said.
On Monday, Sri Lanka had to pay the Indian Oil Company (IOC) 34 million dollars and another 76 million dollars to a Malaysian company. On 06 July another 34 million dollars will have to be paid to the IOC.
“On 08 July, we need to pay for three shipments. 19.95 million dollars to the IOC. 49.54 million dollars to Singapore company Vitol and 66.53 million dollars for United Arab Emirates-based Coral Energy DMCC . This comes to 136.2 million dollars. On 10 July we must pay 36.43 million dollars for a furnace oil shipment, and 82 million dollars to Coral for a shipment of crude oil. These 316 million dollars are for ships that will arrive in July,” he said.The Minister added that 122 million dollars had to be paid to the IOC for two ships carrying petrol and 67 million for one carrying diesel in the coming weeks.
“These ships will arrive by mid-August,” he said.
The Minister said that they must pay for suppliers upfront and initially the Central Bank of Sri Lanka (CBSL) and the Treasury had insisted that they could allocate only 125 million US dollars for fuel imports.
“Given this limitation, we tried various methods to procure fuel, but without success. We tried new suppliers but that also led to many issues. So, ultimately, the President and Prime Minister decided that the Ministry has to be given money to purchase fuel,” he said.
Minister Wijesekera said that he had spoken to the Governor of the CBSL and Treasury Secretary for foreign currency to purchase fuel.
“It’s not easy. They have promised to give us rupees and we have to find dollars. We need to get the dollars from exporters or international banks. Will they give us dollars at 367 rupees? What will happen if they ask for a higher exchange rate? I will ask the Cabinet today to approve paying higher rates if the need arises,” he said.
Oil companies will only provide oil after payments are made because Sri Lanka owes these companies hundreds of million dollars. Between November 2021 and April 2022, alone CPC had to pay 326 million dollars to companies through the Bank of Ceylon, 242 million dollars through the People Bank and 80 million through other banks, he said.
“The CBSL Governor is talking to seven suppliers. He has given payment schedules so that weekly or monthly payments could be made. We have given them guarantees. Still, they won’t supply new shipments unless upfront payments are made.
Minister Wijesekera said Sri Lanka had, on 30 June, paid 11 million USD to buy 7500 metric tons of diesel from LIOC. The diesel consignment will be sent from LIOC facility in Trincomalee to Colombo today (04). By Sunday afternoon, CPC had 12,774 metric tons of diesel, 1,414 metric tons of petrol 92, 2647 metric tons of petrol 95, 233 metric tons of super diesel, 500 metric tons of jet fuel and 29,000 metric tons of furnace oil used to produce electricity, he said.The Minister said that the first fuel shipment to the country for July is a diesel shipment that will arrive on 08 or 09 July. This will be supplied by a UAE company. Singapore’s Vitol will send another ship carrying diesel between 11 and 14 July. Another diesel shipment might arrive between 15 and 17 July. However, this shipment had not been finalised yet, he said.
“On 22 or 23 July a patrol shipment will be provided by the IOC. The diesel shipment that might arrive between 15 and 17 July is also to be supplied by the IOC. The IOC has asked us to settle 50% of the payment by today and deposit the rest by Wednesday. We requested them to let us pay 30% by Wednesday. We have also spoken to the Malaysian government and they might provide us with 50,000 metric tons of petrol and 10,000 metric tons of kerosene. This has not been finalized. If this works out, we might get a petrol shipment by 10 or 11 July,” he said.
Wijesekera added that the crude oil shipment expected from UAE’s Coral will consist of 135,000 metric tons. On 12 August another crude oil ship is expected, he said.
Speaking about his visit to Qatar, Minister Wijesekera said he had met a number of officials and they might provide Sri Lanka diesel, crude oil, furnace oil and gas at a concessionary rate, at the discretion of the Emir of Qatar. “Even if this happens, it won’t happen overnight. If we need to buy oil, we could buy directly from their private companies, the Qatar officials said. Qatar is not an exporter of petrol or jet fuel. They are a gas giant, though. The Qatari officials said that they had proposed to build an LNG terminal in 2019, but there had been no response from Sri Lanka,” he said.
The Minister said that he had also spoken to the Qataris about oil exploration in Mannar.Minister Wijesekera said he had asked CPC officials to provide him with a procurement plan till December. He added that the CPC was overstaffed.
The Minister urged the expatriate Sri Lankan workers to send in remittances through the banking system and help revive the economy and ameliorate the suffering of fellow citizens.
“Once the fuel starts coming in the queues will disappear. I want to add another thing. There is now a token system in place. However, we have never asked for this system. What I said last month, announcing that we will only be providing fuel to essential services, was to give a token to people who were in the queue at that time. I specifically asked people not to join queues anew. Now only LIOC is distributing fuel to private vehicles, and they have started a token system. This is not what we wanted,” he said.
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President calls on Atamasthanadipathi Thero
President Anura Kumara Dissanayake called on the Atamasthanadhipathi, Chief Sanghanayake of Nuwara Kalaviya, Most Venerable Pallegama Hemarathana Nayake Thero, this morning (07) for a brief discussion.
During the meeting, the President apprised the Thero of the measures being implemented by the government to provide relief to the affected people and to restore normalcy in their daily lives.
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US deploys two C-130J Super Hercules aircraft and personnel to assist in relief measures
The United States has extended humanitarian assistance to Sri Lanka to support nationwide relief efforts in the aftermath of Cyclone Ditwah, which caused severe damage across multiple regions of Sri Lanka.
The latest round of assistance, included the deployment of two C-130J Super Hercules aircraft, equipment and US Air Force personnel. The US contingent will provide vital transportation and logistics support in areas identified by the Disaster Management Centre.
A formal handover took place this afternoon (07) at the Bandaranaike International Airport (BIA) with the support officially received on behalf of the Sri Lankan government by Minister of Science and Technology Prof. Chrishantha Abeysena, Deputy Minister of Ports and Civil Aviation, Janitha Ruwan Kodithuwakku and Deputy Minister of Defence Maj. Gen. Aruna Jayasekara (Rtd).
The assistance was presented by the United States through Julie Chung, Ambassador of the United States to Sri Lanka, and Lt. Col. Van Pinxteren of the United States Air Force.
As part of the support package, the United States contingent will provide logistics capacities needed to transport humanitarian supplies to affected communities in the Northern, Eastern and Central regions.
Sri Lankan officials expressed their gratitude for the timely support, which will bolster ongoing national efforts to reach displaced families and restore essential services in cyclone-affected areas.
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Government prepares Anuradhapura farmers for Maha Season
President Anura Kumara Dissanayake instructed officials to prepare the farmers in the Anuradhapura District whose paddy cultivation was destroyed due to floods to re-cultivate during the upcoming Maha season.
Highlighting the need for all relevant institutions to work in proper coordination, treating this as a national necessity, the President instructed the authorities to provide compensation to farmers without delay and to ensure temporary irrigation water supply through provisional repairs.
The President further noted that the government is providing the highest amount of compensation in the country’s history for crop damages, with the expectation that cultivation activities will be commenced again promptly.
President Anura Kumara Dissanayake gave these instructions this morning (07) while attending a special coordination committee meeting at the Anuradhapura District Secretariat to review the programme being implemented to restore normalcy to the lives of people affected by the disaster situation and to rehabilitate damaged infrastructure in the district.
The President instructed officials to present, before this Friday, a report detailing the number of farmers who were completely affected, the extent of damaged farmland and the required financial allocations. He emphasised that compensation must be granted only to those who are genuinely entitled and that no one should receive it unjustly.
The President stated that the government is committed to providing compensation to the farming community and directed officials to foster confidence among farmers so that they will be encouraged to resume cultivation.
The President also inquired, separately, from the relevant institutions about the measures taken for the development of the district’s infrastructure including highways, irrigation and communication networks.
The President examined the programme for reopening obstructed roads and instructed that temporary repairs be expedited to meet the public’s transportation needs until permanent road development plans are implemented.
Officials of the Ceylon Electricity Board informed the meeting that 473 out of the 580 electricity transformers damaged due to the disaster have already been restored and that full electricity supply to the district could be achieved by tomorrow.
They further stated that 49,000 water connections had been affected, of which about 99% have now been restored, while water is being supplied by bowsers to the remaining areas. They noted that total restoration of water supply is expected within the next two days. Damaged community water projects are also being restored.
Well-cleaning activities are currently being carried out with the support of the Navy and the President instructed officials to complete these tasks swiftly through community participation coordinated by Divisional Secretariats.
Discussions were also held regarding the provision of compensation for crops such as Maize, restarting cultivation, restoring the livelihoods of those engaged in animal husbandry, normalising health services and rehabilitating religious sites including damaged temples.
The floods have caused total damage to 228 houses in the district. The President instructed officials to gather accurate information on whether affected families should be resettled on the same land or relocated elsewhere and to begin identifying suitable land for resettlement.
Officials reported that all schools in the district could reopen by 16 December. The President instructed that the Rs. 15,000 allowance promised by the Treasury for schoolchildren affected by the disaster be fully distributed before 31 December and that the list of beneficiaries be prepared without delay.
The President also expressed his gratitude to government officials, the Police and the Tri-Forces for their service in providing relief to the public and restoring infrastructure.
The meeting was attended by Co-Chair of the Anuradhapura District Development Committee, Minister of Trade, Commerce, Food Security and Cooperative Development Wasantha Samarasinghe, Minister of Housing, Construction and Water Supply Susil Ranasinghe , Anuradhapura District MPs Susantha Kumara Navaratna and Sena Nanayakkara, North Central Province Governor Wasantha Jinadasa, Chief Secretary J.M.R.P. Jayasinghe, representatives of local authorities; Secretary to the Treasury Dr Harshana Suriyapperuma, Anuradhapura District Secretary K.G.R. Wimalasuriya, ministry secretaries and other government officials.
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