News
Covid time bonanza: Luxury SUVs for MPs coming, after all!
LCs opened before Cabinet rescinded its own decision
By Shamindra Ferdinando
In spite of the Finance Ministry decision to withdraw an earlier Cabinet paper for the import of 399 vehicles at a cost of Rs 3.7 bn, the cash-strapped government was not in a position to unilaterally cancel what Media Minister and co-Cabinet spokesperson Keheliya Rambukwella called a tripartite transaction.
Minister Rambukwella said so in response to Hiru presenter Chamuditha Samarawickrema’s last query on the live ‘Salakuna’ TV programme around midnight on Monday (7)
Minister Rambukwella admitted that as Letters of Credit had been opened through a State Banks the cancellation would be an issue that couldn’t be addressed unilaterally. Samarawickrema-led ‘Salakuna’ panel asked why luxury vehicles were being brought amidst an extremely difficult situation.
Of the 399 vehicles, 225 were for members of Parliament, made up of SLPP 145, SJB 54, TNA 19, JJB 3, AITC 2, EPDP 2, UNP 1, SLFP 1 and OPPP, TMVP, MNA, TMTK, ACMC, NC and SLMC one each. Among the beneficiaries is the sole UNP National List member though yet to take oaths as an MP. Former Minister and UNP Chairman Vajira Abeywardena recently told The Island that party leader Ranil Wickremesinghe would fill the National List slot.
The Island
learns that the original cabinet paper for the leasing of 227 brand new Toyota Land Cruisers, 17 brand new Toyota Hilux 4WD double cabs, 1 brand new Toyota Land Cruiser V8, 52 brand new Hino cab Intercooler Turbo, 51 brand new Toyota Hilux 4 WD double cabs with intercooler, one brand new Toyota Hilux 4 WD with intercooler and 50 brand new Toyota high-roof ambulances. Payments were to be made in both USD and Japanese Yen.
The Prime Minister’s Office in a statement issued in the last week of May stated that the previous cabinet paper had been withdrawn as the financial situation was not conducive to import vehicles.
Asked by ‘Salakuna’ panel why 227 brand new Toyota Land Cruiser Prado had been imported for 225 members, Minister Rambukwella denied any knowledge of the recipients. The minister also said that he was not aware for whom the V8 had been ordered.
In spite of the government directive issued in the wake of rapid deterioration of foreign reserves amidst the first Covid-19 outbreak, over 300 expensive vehicles were imported by permit holders, the Customs told The Island. Inquiries revealed that Letters of Credit had been opened by banks regardless of the government directive and vehicles subsequently released.
The Island yesterday (8) sought an explanation from Minister Rambukwella regarding the status of the high profile leasing arrangement pertaining to 399 vehicles. Minister Rambukwella said that he was not aware of how the state bank that had opened the Letters of Credit handled the issue at hand. However, as the opening of Letters of Credit meant guaranteed payment, Sri Lanka faced the prospect of being blacklisted if a unilateral decision was taken on the matter. The minister explained the difficulty in reversing the original decision.
None of the Opposition political parties have criticized the government move on vehicles made at a time the country was struggling to cope with Covid-19 fallout.
SLPP’s 2019 presidential election manifesto, too, assured that vehicles wouldn’t be imported for members of parliament for a period of three years
After the change of government in 2019, the SLPP put in place a much touted project to expedite repairs to state-owned vehicles as part of the overall measures to meet what co-cabinet spokesmen Ministers Rambukwella, Udaya Gammanpila and Dr. Ramesh Pathirana called immediate shortfall.
Colombo District SJB lawmaker Dr. Harsha de Silva recently said that the move to order vehicles for lawmakers hadn’t been discussed with his party. The former non-cabinet minister was responding to The Island query whether he was aware of leasing arrangements being made for the vehicles.
During ‘Salakuna’ it transpired that vehicles had been ordered from Singapore based enterprise not the mother company in Japan.
Latest News
The Sun is directly overhead Warakapola, Aranayaka, Gampola, Bibile, Inginiyagala, and Akkaraipattu at about 12:12 noon today (08)
On the apparent northward relative motion of the sun, it is going to be directly over the latitudes of Sri Lanka from the 05th to 15th of April this year.
The nearest areas of Sri Lanka over which the sun is overhead today (08th) are Warakapola, Aranayaka, Gampola, Bibile, Inginiyagala, and Akkaraipattu at about 12:12 noon.
News
AKD admits import of substandard coal, blames technicalities and supplier
… announces temporary relief package
President Anura Kumara Dissanayake yesterday acknowledged in Parliament that the import of substandard coal had adversely impacted electricity generation.
“There’s an issue with the coal. That’s true,” the President said, addressing the House.
President Dissanayake maintained that the problem had not arisen from the tender process but from the failure of the supplier to deliver coal that met the required standards. “The issue did not arise from the tender process. It resulted from the supplier’s failure to deliver coal that met the required standards. I would also like to point out that coal is not tested by individuals through simple inspection or personal judgment; it is examined in certified laboratories,” he said.
The President went on to say that coal shipments are tested through certified laboratories before dispatch, and an initial payment of 80 percent was made after receiving laboratory certification confirming that the coal meets stipulated specifications.
The President said the balance 20 percent was released only after a second verification carried out by an Indian laboratory selected for the purpose in 2023. Tests had revealed that three shipments failed to meet the required specifications.
The President added that although some shipments had passed laboratory tests, operational assessments at the power plant indicated that the coal was not performing to the expected standard. As a result, the government had withheld the remaining payments for certain consignments, imposed penalties on some suppliers, and in a few instances suspended even the initial 80 percent payment.
He said the use of substandard coal would increase electricity generation costs as the shortfall would have to be compensated by alternative sources, such as diesel. However, he assured Parliament that the additional costs would be recovered from the coal suppliers and would not be passed on to consumers.
The President also said the government expected to receive the fourth and fifth tranches of financial assistance from the International Monetary Fund by the end of May. He told Parliament that Sri Lanka hoped to reach a staff-level agreement with the IMF by Thursday, which would enable the country to secure about USD 700 million in funding.
Meanwhile, the President announced a temporary increase in cash assistance under the Aswesuma welfare programme to provide relief to low-income households during the April festive season.
He said the government continued to face challenges in accurately identifying eligible beneficiaries but noted that Aswesuma remained the only available framework to determine eligibility. Under the scheme, current benefit categories include payments of Rs. 17,500, Rs. 10,000 and Rs. 5,000.
For April, the Rs. 17,500 allowance will be increased by Rs. 7,500 to Rs. 25,000, while the Rs. 10,000 payment will rise by Rs. 5,000 to Rs. 15,000. Beneficiaries in the transitional category will receive an additional Rs. 2,500. The temporary increases are expected to cost the Treasury about Rs. 8.5 billion and will apply only for the month of April.
Addressing electricity tariffs, the President said the adjustment that came into effect on April 1 had been determined earlier and was not linked to the present crisis. According to him, the increase for households consuming less than 30 units amounts to about Rs. 15 per month, while other tier increases translate to approximately Rs. 1 to Rs. 1.50 per day.
He said the government had considered three options to manage rising electricity costs: requiring the Ceylon Electricity Board to absorb the losses, transferring the burden entirely to the Treasury, or passing the cost on to consumers. Instead, the government opted for a shared approach involving the State, the public and the national power system operator.
Under this arrangement, consumers using less than 90 units of electricity will receive a subsidy during the next tariff revision. The government has allocated Rs. 5 billion per month for the programme, amounting to Rs. 15 billion over three months. The President said losses in the electricity sector during the same period were estimated at about Rs. 32 billion.
Turning to agriculture, the President outlined measures to stabilise fertiliser supply amid rising global prices. He said the Department of Agriculture currently held about 14,000 metric tonnes of urea imported at the previous price, while private companies also possessed stocks.
Following discussions with fertiliser suppliers, companies had agreed to release all remaining stocks purchased at the old price to Agrarian Service Centres. These quantities, together with government stocks, are expected to be sufficient for two paddy cultivation seasons.
However, fertiliser required for the third season would have to be imported at higher prices. The President said recent offers for urea ranged from USD 680 to USD 850 per metric tonne.
To cushion farmers from price increases, the government has decided to sell fertiliser for the third season at a fixed price of Rs. 10,200 per bag despite the estimated market price ranging between Rs. 13,500 and Rs. 14,000. The Treasury will absorb the difference, amounting to roughly Rs. 3,000 per bag, at a total estimated cost of about Rs. 1.7 billion.
The President also announced increases in fertiliser subsidies. Farmers cultivating paddy will receive Rs. 30,000 per hectare, up from Rs. 25,000, while subsidies for subsidiary crops during the Yala season will increase from Rs. 15,000 to Rs. 18,000. Small tea holders will receive a one-time additional payment of Rs. 5,000 per fertiliser bag in addition to the existing Rs. 4,000 subsidy.
He said the expanded fertiliser support programme would cost the government about Rs. 6.5 billion, with an additional Rs. 600 million allocated specifically for fertiliser subsidies.
The President also outlined plans to manage rising energy costs, particularly in the fuel sector. He said the government had considered allowing fuel prices to fully reflect market costs or introducing a subsidy mechanism.
According to current estimates, he said, diesel would exceed Rs. 600 per litre if sold strictly at cost. Instead, the government has decided to maintain the existing tax structure and provide Treasury-funded subsidies.
Under the proposed scheme, diesel will receive a subsidy of up to Rs. 100 per litre, while petrol will receive up to Rs. 20 per litre. Fuel prices will continue to be adjusted based on monthly cost calculations, with the next revision scheduled for May 1.
The subsidy programme is expected to cost around Rs. 20 billion per month and will operate for three months at an estimated total cost of Rs. 60 billion.
In addition, fishermen will receive targeted assistance. Small fishing boats will qualify for an extra Rs. 50 per litre fuel subsidy for up to 625 litres per month, credited directly to bank accounts. This will provide a monthly benefit of Rs. 31,250 per boat.
Multi-day fishing vessels will receive a fuel allowance of Rs. 150,000 per vessel during the three-month subsidy period, the President said.
By Saman Indrajith
News
‘Sri Lanka – China relations: Community with a Shared Future’ launched
The Chinese Embassy in Colombo launched the commemorative publication in connection with the 70 years of Sri Lanka Diplomatic Relations with China titled, “Sri Lanka – China Relations: Community with a Shared Future” on 03 April 2026 in the presence of a large distinguished audience.
Cao Jing, Deputy Director General of the Asian Department of the Ministry of Foreign Affairs, Officials of the Chinese Foreign Ministry, Diplomatic Corps, Xu Yan of the Chinese People’s Association for Friendship with Foreign Countries, officials of Ministry’s line agencies and state-owned enterprises and several other guests having interests in Sri Lanka participated at the event.
The commemorative publication captures the essence of Sri Lanka’s resilience as a nation by tracing its rich history, civilization and culture. It offers insights into salient features of Sri Lanka that has been recognized for ages as “a land like no other”.
The publication was authored by the distinguished career Ambassador Dr. Ananda Kumarasiri.
In delivering the opening remarks Ambassador Majintha Jayesinghe, expressed his appreciation to the author Dr. Ananda Kumarasiri. Recalling the establishment of Diplomatic Relations in 1957, Sri Lankan Ambassador stated that the impressive tapestry of genuine friendship that exists between our two countries since ancient times have grown exponentially.
Ambassador Majintha Jayesinghe expressed the aspiration that this book will present an insightful account of the rich heritage of Sri Lanka’s relations with China. He hoped that the commemorative publications would encourage future generations to look at the shared history and relations with pride and motivate them to further enhance this unique friendship and goodwill to higher vistas of achievements.
In his address, Ambassador, Dr. Ananda Kumarasiri among other important observations, pointed out that there is much scope for Sri Lanka and China to collaborate in a number of fields. In particular, he highlighted that China’s tremendous technological and industrial progress can be harnessed for Sri Lanka to embark into-the development of alternative sources of energy, backward integration of Sri Lanka’s primary resources that would ensure value added exports and also in recycling wastes from various primary resources.
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