News
CPC Losses Rs 3.5 bn: Culprits allowed to go overseas
Fuel Commission Scam
By Shamindra Ferdinando
A group of Ceylon Petroleum Corporation (CPC) officials, responsible for causing loss of nearly 3.5 billion rupees, had left the country over the past several years and successive Ministers had failed to take action against any one of them, the Committee of Public Enterprises (COPE) was told recently.
The parliamentary watchdog delved into the corrupt deal that enabled filling station owners to make a killing at the expense of both the corporation and consumers alike, according to a statement issued by the Parliament.
Declaring that the marketing department of the then loss-making enterprise had been directly responsible for the massive fraud, the parliamentary watchdog committee emphasized that the top management deliberately delayed the issuance of a particular circular for nearly nine years to facilitate payment of excessive commissions to distributors.
COPE alleged that the public had to bear the burden as the CPC conveniently passed the unwarranted additional expenditure to the consumers.the statement issued by Jayalath Perera, Director (Legislative Services) on behalf of the Director Communication, the CPC and the distributors had perpetrated the robbery exactly over a period of eight years and eight months. On the basis of Auditor General W.P.C. Wickremaratne’s report for 2022 and examination of the current status of the CPC, the COPE estimated the losses caused at Rs. 3,416 mn for the period of 2014 to 2022.
The examination of the CPC was undertaken by COPE, under the leadership of Rohitha Abeygunawardena, whose appointment as its Chairman, in early March this year, caused a major uproar in Parliament. Questioning the integrity of the lawmaker concerned, the Opposition announced a boycott of the proceedings. The status quo remains the same. AG Wickremaratne had been present at the proceedings where COPE questioned the current top management of the CPC on June 19th.
State Ministers Indika Anuruddha and Shantha Bandara, Members of Parliament Mahindananda Aluthgamage, Dayasiri Jayasekara, U. K. Sumith Udukumbura, (Major) Sudarshana Denipitiya, Upul Mahendra Rajapaksha, M. Rameshwaran and Madhura Withanage were present at the proceedings.
COPE declared that the marketing department should be held accountable for the mega fraud. At the time the marketing department initiated the manipulation of the process in 2014, Pavitradevi Wanniarachchi had been the Minister in charge of the Power and Energy portfolio. According to the AG’s findings, the manipulation had continued during the tenure of Patali Champika Ranawaka, Ranjith Siyambalapitiya, Ravi Karunanayake, Mahinda Amaraweera, Dullas Alahapperuma, Gamini Lokuge and again Pavitradevi Wanniarachchi. Except Ravi Karunanayake, who is a qualified top accountant, all others are in the current Parliament, with Amaraweera serving the Cabinet of Ministers, while Siyambalapitiya is State Finance Minister.
The corrupt deal between the CPC and the distributors had continued unabated during the Covid-19 epidemic, and the economic crisis, leading to the declaration of bankruptcy in April 2022.
The top management hadn’t been able to explain the action taken against those responsible at any level. COPE asked the CPC, on June 19, to submit a list of those responsible for the sordid operation, within seven working days. COPE also asked for a comprehensive report on fraudulent activities, within two weeks, and requested the lodging of a complaint with the Criminal Investigation Department (CID), regarding the case.
According to COPE, due to payment of unjustifiable commissions to the distributors, consumers had to pay Rs. 5.85 for a litre of 92 petrol, Rs. 7.50 for a litre of 95 petrol, Rs. 5.88 for LED and Rs. 6.96 for LSD in excess as of the calculations to date.
It was also disclosed that massive commissions that had been paid in 2022, the year the country declared bankruptcy, was conveniently categorised as sales expenditure. The examination revealed that absolutely no action had been taken against those responsible.
CPC officials before COPE
The Government’s ‘Rebuilding Sri Lanka’ Fund, established to provide relief and support to communities affected by Cyclone Ditwah, continues to receive financial contributions on a daily basis.
Accordingly, the Containers Transport Owners Association made a financial contribution of Rs. 1.5 million, while the Association of SriLankan Airlines Licensed Aircraft Engineers contributed Rs. 1.35 million to the Fund.
The respective cheques were formally presented to the Secretary to the President, Dr. Nandika Sanath Kumanayake, at the Presidential Secretariat on Friday (19).
The occasion was attended by W. M. S. K. Manjula, Chairman of the Containers Transport Owners Association, together with Dilip Nihal Anslem Perera and Jayantha Karunadhipathi.
Representing the Association of SriLankan Airlines Licensed Aircraft Engineers were Deshan Rajapaksa, Samudika Perera and Devshan Rodrigo handed over the cheque.
A meeting between Prime Minister Dr. Harini Amarasuriya and a delegation of UNICEF representatives was held on Saturday, (December 20) at the Prime Minister’s Office.
During the meeting, the Prime Minister explained the measures taken by the Government to ensure the protection of the affected student community and to restore the damaged school system, as well as the challenges encountered in this process.
The Prime Minister stated that reopening schools located in landslide-prone areas would be extremely dangerous. Accordingly, the Government is focusing on identifying such schools and relocating them to suitable locations based on scientific assessments.
The Prime Minister further noted that financial assistance has been provided to students affected by the disaster, enabling parents to send their children back to school without an additional financial burden. Emphasizing that school is the safest place for children after their homes, the Prime Minister expressed confidence that the school environment would help restore and improve students’ mental well-being
The Prime Minister also highlighted that attention has been given to several key areas, including the relocation of disaster-affected schools, restoration of school infrastructure, merging and operating certain schools jointly, facilitating teaching and learning through digital and technological strategies, and providing special transportation facilities. She emphasized that the Government is examining these issues and is committed to finding long-term solutions.
The UNICEF representatives commended the Government’s commitment and the initiatives undertaken to restore the education sector and assured their support to the Government. Both parties also discussed working together collaboratively on future initiatives.
The meeting was attended by the UNICEF representatives to Sri Lanka Emma Brigham, Lakshmi Sureshkumar, Nishantha Subash, and Yashinka Jayasinghe, along with Secretary to the Ministry of Education Nalaka Kaluwewa, Director of Education Dakshina Kasturiarachchi, Deputy Directors Kasun Gunarathne and Udara Dikkumbura.
(Prime Minister’s Media Division)
Drug controversy:
“Setting up state-of-the-art drug testing facility will cost Rs 5 billion”
Activists call for legal action against politicians, bureaucrats
Serious questions have been raised over Sri Lanka’s drug regulatory system following revelations that the National Medicines Regulatory Authority’s (NMRA) quality control laboratory is not accredited by the Sri Lanka Accreditation Board (SLAB), casting doubt on both the reliability of local test results and the adequacy of oversight of imported medicines.
Medical and civil rights groups warn that the issue points to a systemic regulatory failure rather than an isolated lapse, with potential political and financial consequences for the State.
Chairman of the Federation of Medical and Civil Rights Professional Associations, Specialist Dr. Chamal Sanjeewa, said the controversy surrounding the Ondansetron injection, which was later found to be contaminated, had exposed deep weaknesses in drug regulation and quality assurance.
Dr. Sanjeewa said that the manufacturer had confirmed that the drug had been imported into Sri Lanka on four occasions this year, despite later being temporarily withdrawn from use. The drug was manufactured in India in November 2024 and in May and August 2025, and imported to Sri Lanka in February, July and September. On each occasion, 67,600 phials were procured.
Dr. Sanjeewa said the company had informed the NMRA that the drug was tested in Indian laboratories, prior to shipment, and passed all required quality checks. The manufacturer reportedly tested the injections against 10 parameters, including basic quality standards,
pH value, visual appearance, component composition, quantity per phial, sterility levels, presence of other substances, bacterial toxin levels and spectral variations.
According to documents submitted to the NMRA, no bacterial toxins were detected in the original samples, and the reported toxin levels were within European safety limits of less than 9.9 international units per milligram.
Dr. Sanjeewa said the credibility of local regulatory oversight had come under scrutiny, noting that the NMRA’s quality control laboratory was not SLAB-accredited. He said establishing a fully equipped, internationally accredited laboratory would cost nearly Rs. 5 billion.
He warned that the failure to invest in such a facility could have grave consequences, including continued loss of life due to substandard medicines and the inability of the State to recover large sums of public funds paid to pharmaceutical companies for defective drugs.
“If urgent steps are not taken, public money will continue to be lost and accountability will remain elusive,” Dr. Sanjeewa said.
He added that if it was ultimately confirmed that the drug did not contain bacterial toxins at the time it entered Sri Lanka, the fallout would be even more damaging, severely undermining the credibility of the country’s health system and exposing weaknesses in health administration.
Dr. Sanjeewa said public trust in the health sector had already been eroded and called for legal action against all politicians and public officials responsible for regulatory failures linked to the incident.
by Chaminda Silva ✍️
Financial contributions received for ‘Rebuilding Sri Lanka’ Fund
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‘Dates have the highest sugar content to fight Coronavirus’
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