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Dayasiri issues dire warning over national economy

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‘Waste, corruption and irregularities as devastating as corona’ 

By Shamindra Ferdinando

SLFP General Secretary Dayasiri Jayasekera says the government lacked the wherewithal to provide those struggling to make ends meet sufficient financial assistance.

The decision to provide Rs 2,000 for a family during the current Covid-19 lockdown highlighted the deteriorating economic crisis, State Minister Jayasekera points out.

 “In fact, the national economy is in such a bad shape the government found it difficult to pay that amount,” MP Jayasekera told The Island while warning of dire consequences unless the government and the Opposition reached a consensus on a strategic plan to save the economy.

 Responding to another query, the Kurunegala District MP discussed the crisis in his pocket borough of Bingiriya electorate, where alone approximately 15,000 persons had been affected by the lockdown. The State Minister emphasised that it wouldn’t be fair to blame one administration or a particular person for the current crisis.

 The SLFP group in the government consists of 14 members, including one accommodated on the SLPP National List. MP Jayasekera said that the government found it difficult to pay even Rs 2,000.

 Successive governments over the years had allowed key public sector enterprises such as the Ceylon Petroleum

Corporation (CPC), Ceylon Electricity Board (CEB), SriLankan Airlines to bleed the national economy, MP Jayasekera said.

Noting Energy Minister Udaya Gammanpila’s declaration in June that the entire banking sector faced collapse due to staggering amount of money owed to the Bank of Ceylon and the People’s Bank by the CPC and CEB, lawmaker Jayasekera said that tangible measures were required to address the crisis.

The Presidential Secretariat subsequently estimated the amount owed by the CPC and CEB at Rs 737 bn.

 MP Jayasekera said the public sector was a massive burden on the people. Instead of taking a political stand on the public sector, the government and the Opposition should at least now address the issue at hand.

 The national income was primarily utilized to pay the salaries of the public sector and pensions, Jayasekera said, adding that the government lacked the financial strength to meet its obligations due to dwindling income.

State Minister Jayasekera said that further expansion of the public sector was unthinkable. However, the government and the Opposition should reach an agreement without further delay that they wouldn’t exploit the issue for political advantage. “Let there be a consensus on a workable plan,” lawmaker Jayasekera said. The unprecedented devastation caused by the raging Covid-19 pandemic had compelled all political parties represented in parliament to act swiftly and decisively, the former minister said.

 “If we do not take meaningful measures to stop the rot in the wake of economic catastrophe the country will be bankrupt,” State Minister Jayasekera said.

 Referring to the continuing failure on the part of the revenue collection mechanism to meet its obligations, lawmaker Jayasekera explained utterly irresponsible conduct of the Customs. The continuing legal battle between the Customs and Sri Lanka Ports Authority (SLPA) over the former seeking massive rewards from the latter as regards a detection made a decade ago, MP Jayasekera said the case underscored the absurdity of the situation. “We are talking about a massive scam. Having allowed the SLPA to clear the equipment, the Customs imposed a penalty for non-payment of duties but the issue at hand is that the penalty money ended up with Customs officers,” MP Jayasekera said.

The Committee on Public Accounts (COPA) that inquired into the scam, but hadn’t been able to resolve the issue yet, lawmaker Jayasekera said, asserting that even the Parliament seemed helpless as various interested parties continued to take advantage of an utterly corrupt system. There couldn’t be a better example than the Customs moving court against the SLPA under questionable circumstances to highlight the severe financial impropriety, the former minister said.

 Explaining his role as COPA member, MP Jayasekera said that the revelations made at COPA as well as COPE (Committee on Public Enterprises) and Committee on Public Finance (COPF) proved beyond doubt that the parliament over the years had pathetically failed to ensure financial discipline. The lawmaker said that actually he was at a loss and felt so sorry over the failure of the parliament to address the situation.

 The Customs, Inland Revenue and the Excise Department responsible for revenue collection operation owed an explanation, the former minister said, pointing out how the public suffered due to negligence on the part of those responsible for ensuring financial stability.

 Lawmaker Jayasekera said that as a member of the parliament he couldn’t absolve himself of the responsibility for the overall failure of the parliament. Ensuring financial discipline and transparency were primary responsibilities of the parliament whoever controlled the parliamentary majority, MP Jayasekera said. “Another responsibility is the enactment of new laws. We seem to have failed in both spheres,” the SLFPer said.

 The State Minister discussed how Inland Revenue bungled on numerous occasions. One occasion was IR’s failure to collect massive amount in taxes from casinos, lawmaker Jayasekera said, alleging in spite of parliamentary watchdog intervention remedial action couldn’t be taken.

 State Minister Jayasekera said that the simmering controversy over Indian involvement in the East Container Terminal (ECT) of the Colombo port and the offering of West terminal which is something only on paper to India revealed the crisis in the government. Some of those who talked about mega plans simply didn’t take into consideration the ground situation nor were they capable of what MP Jayasekera called rationale thinking.

Acknowledging the importance of using organic fertiliser and how it benefited the country, lawmaker Jayasekera said that the whole exercise was now in turmoil as a result of hasty implementation of the project.  The former minister said that the systematic destruction caused by successive administrations that turned a blind eye to waste, corruption, irregularities and negligence was immeasurable.

 According to him the economy is in such a bad shape preparing budget for 2022 seemed unrealistic. The annual debt servicing amounting to as much as USD 4 bn underscored the catastrophic environment the country was in at the time national economy withered under continuing disruptions caused by Covid-19.

If the country maintained financial discipline, Sri Lanka would have been in a much better position to face the current health emergency, the State Minister said. Pointing out significant assistance received from foreign governments, the private sector as well as various individuals to fight the raging epidemic, lawmaker Jayasekera said that the government and the Opposition needed to review the situation. “We have to adopt a national plan to restore financial discipline or be prepared to face the consequences,” the former minister said.

The MP said that the decision to do away with a range of taxes at the onset of the government that resulted in the loss of over Rs 500 bn caused a debilitating setback.



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Construction of Jet A-1 Aviation fuel pipeline and new oil tank complex at Muthurajawela begins under President’s patronage

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President Anura Kumara Dissanayake said that the Government’s objective is to maintain a strong state presence in the energy market while providing an efficient service to the people, adding that significant progress has been achieved towards this objective over the past two years and that a strong energy market that does not place a burden on the people is now being built in Sri Lanka.

The President made these remarks on Friday (02) morning  while attending the commencement of construction of the Jet A-1 pipeline system of the Ceylon Petroleum Corporation (CPC) and two new oil storage tank systems belonging to the CPC and the Ceylon Petroleum Storage Terminal Limited (CPSTL).

The projects are being implemented in line with the Government’s national objective of developing infrastructure in the energy sector, with the aim of ensuring the security of aviation fuel supplies, reducing supply costs and providing the capacity required to meet future demand for aviation fuel.

A dedicated pipeline and associated tank complex are being constructed to connect Muthurajawela with the Bandaranaike International Airport in Katunayake, with the aim of meeting the future demand of the country’s aviation sector, ensuring the security of aviation fuel supplies and reducing transportation costs.

Construction has commenced on five new Jet A-1 fuel storage tanks with a total capacity of 92,000 cubic metres. These comprise two large Jet A-1 tanks, each with a capacity of 30,000 cubic metres; two medium-sized tanks, each with a capacity of 15,000 cubic metres; and an additional tank with a capacity of 2,000 cubic metres. The fuel supply pipeline system will be connected to the airport through a 21-kilometre-long underground pipeline with a diameter of 10 inches from the Muthurajawela tank complex. The project is scheduled for completion within 30 months.

Meanwhile, as part of ongoing efforts to strengthen and expand storage and infrastructure facilities in the petroleum industry, the Ceylon Petroleum Storage Terminal Limited (CPSTL) commenced construction today of three new storage tanks at the Muthurajawela Terminal.

Upon completion, the three-tank system, comprising two tanks with a capacity of 15,000 cubic metres each and one tank with a capacity of 10,000 cubic metres, will provide an additional total storage capacity of 40,000 cubic metres.

This will further enhance the petroleum storage capacity of the terminal and support the continued development of the country’s petroleum infrastructure. The project has a contractual period of 18 months and is scheduled for completion in April 2028.

The tanks are being constructed in compliance with relevant international standards and recognised industry best practices, ensuring enhanced safety, reliability and operational efficiency. The additional storage capacity will strengthen the country’s fuel reserves, improve operational flexibility and support the reliable and uninterrupted distribution of fuel products to meet the country’s growing energy requirements.

Minister of Ports and Civil Aviation and Minister of Energy Anura Karunathilaka said,

“We are now in an era of energy transition. The world is rapidly moving towards the use of clean energy. The use of electric vehicles is very important in this regard, and our country is also now moving in that direction.

The use of solar energy is also important. We expect to add 1,200 megawatts of solar power capacity to the national grid by 2029.

As a country, we must focus not only on controlling fuel prices but also on controlling fuel consumption. The public also has a major responsibility in this regard.

It is particularly important to change our patterns of energy consumption. Greater energy security can be achieved by avoiding periods of high energy demand, shifting towards electricity use and using fuel-efficient vehicles, particularly electric vehicles.”

Chairman of the Ceylon Petroleum Corporation D. J. Rajakaruna said,

“We faced a major challenge due to the war in the Middle East. However, with the intervention of the President, relief was provided to the people and the situation was managed very effectively.

As a result, while diesel prices in the global market increased by 91%, the increase in Sri Lanka was only around 39.5%. While petrol prices in the global market increased by 80%, the increase in Sri Lanka was only around 41%.

Despite providing fuel at lower prices in this manner, the Corporation has recorded a profit of Rs. 28 billion this year. We also recorded a profit of Rs. 36 billion last year.

This may raise the question of why fuel prices are not being reduced when there are such profits.

However, we have used those profits to commence a number of infrastructure development projects at the institution.

These include adding the capacity of 11 tanks, including the construction of six tanks that had previously been abandoned, to increase fuel storage capacity; modernising our oil-filling section, which is more than 90 years old, and establishing a gantry system similar to that at Muthurajawela; laying two new pipelines for unloading fuel from the port to Kolonnawa; constructing a new pipeline to transport Jet A-1 fuel to Katunayake; and upgrading the pipeline system and laying new pipelines, among many other projects.

We are implementing these projects using those profits. Therefore, we have returned the benefits to the people through these investments.”

The Minister of Science and Technology, Professor Chrishantha Abeysena; Deputy Minister of Energy, Arkam Ilyas; Member of Parliament Kumara Jayakody; Secretary to the Ministry of Energy and Senior Additional Secretary to the President, Russell Aponso; foreign ambassadors; government officials including officials of the Ministry of Energy and the Ceylon Petroleum Corporation; and representatives of Sinopec were among those present at the occasion.

President’s Media Division (PMD)

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Lanka enters new phase of prosecutions as hurdles clear

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MONETABRIEF –The prosecution of high-profile individuals from the former Rajapaksa administrations is set to escalate this month with the clearing of legal hurdles and administrative bottlenecks, according to officials involved in the process.

Former president Gotabaya Rajapaksa’s attempt to secure an order preventing his arrest in connection with the Easter Sunday massacre was turned down by the Court of Appeal on Thursday.

An overseas travel ban has been in operation against Rajapaksa since June, but the Criminal Investigations Department made no move to question him. He instead filed a writ application seeking an order preventing his possible arrest.

President of the Court of Appeal Rohantha Abeysuriya noted that the court would not interfere with the investigative process. Any attempt by the court would amount to an obstruction of the investigation.

In an unrelated case, the same court rejected an application by opposition legislator Dilith Jayaweera seeking the quashing of a contempt charge filed against him by the Fort magistrate. The charges against Jayaweera and a few other opposition politicians are expected to be taken up in the coming week.

Jayaweera and other opposition politicians — Wimal Weerawansa, Udaya Gammanpila, Sugeeshwara Bandara, and Asanka Navaratne

— were hauled up over their remarks relating to the arrest of Suresh Sallay, the former head of the State Intelligence Service.

SLPP academic Mahinda Pathirana is also charged over his public comments about Sallay’s arrest in February under the draconian Prevention of Terrorism Act.

Former president Mahinda Rajapaksa’s son, legislator Namal Rajapaksa, is already in remand custody following his arrest in connection with three cases of bribery and money laundering relating to the 2013 Airbus deal and the Krrish property development in Colombo.

Although Namal has been granted bail in the Airbus money laundering charge, he is in custody until October 13 over the bribery charge relating to the same Airbus transaction. His arrest is under a provision of the Anti-Corruption Act that does not allow a magistrate to grant bail unless under exceptional circumstances.

Meanwhile, his mother Shiranthi Rajapaksa, who had been asked to report to the Financial Crimes Investigations Division on September 24, was a no-show and was yet to return from Singapore.

She had travelled overseas on September 16, and a family spokesman said she was handed the FCID summons at the departure lounge of Bandaranaike International Airport just before she boarded a flight to Singapore.

At the time, the family spokesman said she was due to return in three days.

“We will see greater momentum in the legacy cases in the coming weeks,” an official involved in the prosecutions said.

“We have cleared the legal hurdles to press ahead with more arrests,” he said.

“We are working on a few administrative issues which will be resolved very soon.”

The controversial prosecution of former President Ranil Wickremesinghe is dragging on without him being formally indicted since his arrest in August last year. The Fort magistrate has listed the case again for November 11, when the Attorney-General is expected to report on his decision regarding action against Wickremesinghe.

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Police warn: Court evaders face property seizure

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Police have reminded the public that courts have the power to take legal action against individuals who evade arrest or remain in hiding after warrants have been issued against them.

Police said that under Section 60 of the Code of Criminal Procedure Act No. 15 of 1979, a court could issue a written proclamation requiring a person evading arrest under a warrant to appear at a specified place and time.

The proclamation must allow the person at least 30 days to appear before court, Police said.

If the person fails to appear even after the proclamation has been issued, the court may take further action under Section 61 of the Act.

This includes issuing an order for the attachment of the movable or immovable property belonging to the person concerned.Police issued the reminder highlighting the legal measures available against persons who deliberately evade arrest and remain in hiding after warrants have been issued.

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