News
Delays in unloading fuel cost state coffers dear: Unionist
Latest payment over USD 1 mn for diesel, petrol carrying ships
Bowser owners call off strike after receiving 30 percent increase
By Shamindra Ferdinando
The cash-strapped government has to pay over USD 1 mn as demurrage for the delay in unloading two shiploads of diesel and petrol (92 and 95).
Samagi Jana Balavegaya (SJB) trade union convenor Ananda Palitha yesterday (02) said that the government owed an explanation regarding the unbelievable waste of funds at a time the country was seeking IMF’s intervention and assistance from China, India and other major powers.
Palitha said that two consignments had been supplied by Vitol Asia (Singapore) Pvt. Ltd., in terms of an agreement with the Ceylon Petroleum Corporation (CPC). In late Oct 2021, the CPC awarded contracts to supply diesel and petrol (both 92 and 95) from January 2022 to August 2022 to Vitol Asia (Singapore) Pvt Ltd.
Responding to questions, Ananda Palitha said that the unloading of the vessel Swarna Pushp carrying diesel began over the weekend, following 31 days at sea, due to Sri Lanka’s failure to make the required payment. For 31 days demurrage could amount to USD 558,000. The final payable amount would be much higher as demurrage was applicable to the unloading period, Palitha said. The oil products tanker is plying under the Indian flag.
According to the SJB activist, another vessel, Torm Adventurer, which arrived on March 28 carrying 38,000 mt of petrol 92 and 95 was yet to begin unloading. Sri Lanka now owed the vessel over USD 600,000 as demurrage fees for 34 days delay in unloading.
Palitha said that everyday an additional USD 18,000 was added to the total amount.
Energy Ministry Secretary K.D.R. Olga and CPC Chairman Sumith Wijesinha were not immediately available for comment.
Palitha said that Parliament should take up the issue.
Palitha emphasised that the CPC should have explored the possibility of bringing in two shipments in terms of the USD 500 mn Indian credit line instead of scheduling supplies from Vitol Asia (Singapore) Pvt. Ltd., if the Treasury was so desperate.
Commenting on the strike launched by the tanker owners’ association over the last weekend demanding an increase in transport costs taking into consideration increase in the price of spare parts, service charges et al, Palitha said that the new Energy Minister Kanchana Wijesekera instead of initiating a dialogue had simply dismissed the association’s plea.
The association asked for a 60 percent increase though finally the two parties agreed for a 30 per cent increase. The association immediately called off the strike.
Palitha said that the Energy Ministry had given in quickly as it realised contrary to claims of urgent counter measures, the government didn’t have the wherewithal to maintain the distribution network. The trade union activist said that the association members operated 600 bowsers whereas the government didn’t have even 70 bowsers at its disposal.
The strike resulted in serious disruption to fuel supply countrywide as pressure mounted on the government to settle the political crisis.
Prof. Charitha Herath, Chairman of the Committee of Public Enterprises (COPE) assured that his outfit would soon inquire into payment of demurrage fees. Lawmaker Herath gave the assurance when The Island raised the issue with him.
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Complete all projects funded under the LKR. 500 bllion allocation for Ditwah within this year – President
President Anura Kumara Dissanayake emphasised that both the political authority and public officials have a responsibility to ensure that the LKR. 500 billion allocated by the Government in response to Cyclone Ditwah is utilised effectively and efficiently for the recovery and development of the affected communities and areas. The President further stressed the need to complete all related projects before the end of this year.
The President also pointed out that the Government has already taken steps to transform the culture in which the law was selectively enforced based on power, wealth and political connections and to establish a new culture where all citizens are equally subject to the law. The President noted that certain groups are attempting to portray the creation of a law-abiding society as a major crisis, but stressed that, in building a civilised nation, it is essential to create a society in which everyone is accountable under the law.
President Anura Kumara Dissanayake made these remarks while attending the Special District Coordination Committee Meeting for Matale held on Tuesday (12) morning at the Veera Keppetipola Hall in Matale.
The President further emphasised that the law should not be regarded as an obstacle preventing public officials from properly discharging their duties. He called upon all officials to remain fully committed to rebuilding the lives of the people by working within the legal framework and ensuring that public funds are utilised in a planned, efficient and productive manner.
During the meeting, the President also conducted an extensive review of the progress of compensation payments for the loss of lives and property caused by Cyclone Ditwah, as well as the measures taken to restore housing and normalcy to affected communities.
Officials stated that the compensation allowances of LKR 25,000 and LKR 50,000 granted to families affected by Cyclone Ditwah have now been fully disbursed within the Matale District. They further noted that the student assistance allowances of LKR 15,000 and LKR 10,000 have also been fully paid.
Officials also informed the meeting that the disaster had caused complete damage to 254 houses and partial damage to 3,829 houses within the district. Compensation payments have already been completed for all houses eligible to receive assistance without a formal assessment, while assessment procedures for the remaining houses are currently underway.
Extensive discussions were also held regarding alternative solutions to issues arising from various circumstances, including the lack of land ownership, the location of properties within high-risk zones and occupation of protected reserve areas. The meeting further discussed possible amendments to the existing criteria in order to expedite these processes.
The President also reviewed the progress relating to compensation payments for lives lost due to the disaster, compensation for families relocated from high-risk areas, the provision of housing rent allowances, the issuance of National Building Research Institute (NBRI) reports, as well as the progress of housing construction and land acquisition activities.
The President emphasised the necessity of relocating all families currently residing in high-risk areas affected by Cyclone Ditwah. Highlighting the importance of formulating the necessary legal provisions in this regard, the President instructed officials to treat the resettlement of these families in safer locations as a priority matter and to expedite the process.
The President also inquired into the measures being taken to care for children who lost their parents due to the cyclone and to safeguard their future. The President instructed officials to prepare individual support programmes for each affected child and refer them to the Ministry of Women and Child Affairs.
Issues affecting the school system within the district were also discussed during the meeting. The President highlighted the importance of releasing the relevant lands and constructing school buildings in line with the plan being implemented under the Ministry of Education for the relocation and restoration of the school system.
In addition, the President reviewed the progress of the road development programme in the Matale District relating to roads damaged by Cyclone Ditwah.
Officials stated that 16, A and B grade roads and two bridges in the Matale District were damaged by the cyclone. They further noted that reconstruction work on all 16 roads and one of the bridges has now been completed, while discussions were held regarding the expedited reconstruction of the remaining Moragahakanda Bridge as a permanent structure.
The President also inquired into the progress of construction work on the Riverston Road, which is of significant importance to the tourism industry, as well as the Galewela–Matale road project, which has remained a long-standing issue. He instructed officials to expedite the completion of both projects.
The meeting also reviewed the progress of restoration work relating to roads, bridges, culverts and water projects under local government authorities in the Matale District that were damaged by the disaster.
In addition, discussions were held regarding the compensation process under the Ministry of Industry for businesses in the service sector, the tourism sector and the mining sector that suffered losses due to the disaster, as well as the challenges that have arisen in implementing the compensation programme.
The President also reviewed the measures taken to restore the agriculture and livestock sectors. He noted that the Government has placed special emphasis on promoting rural agriculture, with a focus on developing a production-driven economy.
Discussions were also held on the Matale Urban Development Plan implemented under the 2026 Budget allocations, as well as the project to relocate the Dambulla Hospital. The President stressed the importance of ensuring that these initiatives are implemented within the stipulated timeframe and that their benefits are effectively delivered to the public.
The meeting was attended by the Chairman of the Matale District Coordinating Committee and Deputy Minister of Buddhasasana, Religious and Cultural Affairs, Gamagedara Dissanayake, Co-Chairman and Governor of the Central Province, Professor Sarath Abayakon, Members of Parliament Sunil Biyanwila and Dinesh Hemantha and the Chief Secretary of the Central Province, Ajith Premasinghe, along with local government representatives. Also present were the Commissioner General of Essential Services and Chief of Staff to the President, Prabath Chandrakeerthi, Secretary to the Ministry of Defence, Air Vice Marshal Sampath Thuyacontha (Retired), Matale District Secretary, L.P. Madanayaka, senior officials from relevant departments, representatives of the security forces and other state officials.
(PMD)
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Development projects should be carried out in line with the practical needs of the people – PM
Prime Minister Dr. Harini Amarasuriya instructed officials to implement development projects by taking into account the practical needs of the people.
The Prime Minister made these remarks at the Colombo District Planning Committee meeting held on Tuesday (12) at the Colombo District Secretariat to review the progress of development projects in the Colombo District.
During the meeting, discussions focused on a number of development projects scheduled to be implemented in 2026 and 2027, with special attention given to rural road development, alleviation of poverty, and infrastructure development.
Under the Decentralized Budget Programme, more than Rs. 195 million has been allocated for 2026, and Members of Parliament representing the district have submitted their proposals accordingly. To date, 240 project proposals have been received through Divisional Secretaries, and approval has already been granted for 126 projects valued at Rs. 127 million.
An allocation of Rs. 100 million has been made to ensure the safety of the roads in the Colombo District, with priority given to installing safety barriers and traffic signboards in hazardous locations. In addition, officials stated that plans have been prepared targeting 2027 to construct rural bridges with an allocation of Rs. 100 million and to develop 50 kilometres of roads.
A sum of Rs. 1,036 million has been allocated for the “Praja Shakthi” programme aimed at alleviation of poverty, and the Prime Minister instructed officials to complete all related projects by 30 November 2026. Further, discussions were also held regarding the development of school playgrounds with the support of the Ministry of Sports, as well as the implementation of special projects under the Ministry of Buddhasasana and Environment.
The meeting was attended by the Minister of Justice Harshana Nanayakkara, Deputy Speaker Dr. Rizvie Salih, Colombo District Coordinating Committee Chair and Member of Parliament Lakshman Nipuna Arachchi, Members of Parliament Samanmalee Gunasinghe and Asitha Niroshana, Colombo District Secretary Ginige Prasanna Janaka Kumara, along with public representatives and government officials representing the Colombo District.
[Prime Minister’s Media Division]
News
Ex-SriLankan CEO’s death: Controversy surrounds execution of bail bond
Prof. Prathibha Mahanamahewa has emphasised the need to examine the circumstances under which the court staff executed the bail bond, and the release process, in respect of the late Kapila Chandrasena, former Chief Executive Officer of SriLankan Airlines.
Chandrasena’s body was found in a house at Pedris Road, Colombo 03.
In case of any doubt regarding bail condition/s or any other matter (insufficient surety, identity issues, suspicious documents and unclear order), the Registrar had to get in touch with the relevant Magistrate, Mahanamahewa said.
Mahanamahewa was responding to The Island query regarding the acceptance of two Muslims as sureties. Had they followed the time-tested procedure, court registry/registrar staff would never have accepted sureties as blood relatives of Chandrasena, Mahanamahewa said, alleging a major defect in the execution of the bail bond.
They were arrested by police and remanded by the Colombo Magistrate’s court, till 13 May, pending further investigations.
Colombo Chief Magistrate Asanga S. Bodharagama, on 5 May, granted to Chandrasena cash bail of Rs. 500,000 and three surety bails of Rs. 10 million each. But soon after Chandrasena received bail, the court was told that two of the Rs. 10 million sureties had been produced, after payment of Rs. 15,000 each, were made to those two individuals to act as guarantors.
The bail application had been submitted by Rienzie Arsecularatne, PC, appearing on behalf of Kapila Chandrasena, when the case was earlier taken up, on 28 April.
Police also arrested an elderly person who arranged for the two persons who hadn’t even seen Chandrasena, even once, to offer themselves as sureties.
As soon as the police revealed the fraudulent manner Chandrasena obtained bail, Chief Magistrate Bodharagama issued an order to arrest and produce him before the court. This order was issued consequent to a request made by the Commission to Investigate Allegations of Bribery or Corruption (CIABOC), on the grounds that the defendant had violated bail conditions. The CIABOC wanted Chandrasena held pending the conclusion of the case.
Sources familiar with the execution of bail bond said that the moment the suspects had submitted their National Identity Cards and letters from Grama Sevakas, the court registry/registrar staff should have rejected them. In a such high-profile case, the failure on the part of the lawyers, representing Chandrasena, to check the gsureties’ relationship with Chandrasena, was another glaring shortcoming, sources said, pointing out that after having submitted bail application on 28 April, the defence team should have come prepared to put forward genuine guarantors.
The Island contacted the Bar Association of Sri Lanka for comment on the manner in which the court staff had handled bail for Chandrasena, but there was no response.
Sri Lanka’s former Ambassador to Moscow, accredited to Kiev, Udayanga Weeratunga, said that a thorough investigation should be conducted to ascertain facts about the execution of the bail bond. Asked whether he had been in touch with Chandrasena, Weeratunga said that he spent his first day at Welikada with Chandrasena and Ranjan Ramanayake in one cell. “That happened on 14 February, 2020. I was arrested when I returned to the country, from the UAE, and produced before the then Magistrate Ranga Dissanayake, the incumbent Director General of CIABOC,” Weeratunga said.
Weeratunga said that a couple of months after the change of government in 2024, the US State Department imposed a travel ban on him and Chandrasena and their families over what the US termed as significant corruption.
Weeratunga said that altogether the US designated 14 persons and, of them, two were Sri Lankan, who happened to be him and Chandrasena, accused of corruption in respect of acquisition of MiG 27s from Ukraine and the Airbus deal, during President Mahinda Rajapaksa’s tenure as the President.
SLPP sources said that Chandrasena’s demise shouldn’t prevent proper investigation on his affidavit that claimed pressure brought on him to name Mahinda Rajapaksa as a recipient of the Airbus bribe.
By Shamindra Ferdinando
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