News
Farmers warn against releasing 1 mn kilos of rice held at Port
By Shamindra Ferdinando
The United Rice Producers’ Association (URPA) has alleged that the releasing of one million kilos of rice held at the Colombo Port will lead to a sharp drop in the rice prices and the rice market could even collapse.
Muditha Perera, who heads the Polonnaruwa-based URPA, told The Island that farmers had been struggling to sell their produce. “If large stocks of imported rice are allowed into the market now, there would be a catastrophe,” Perera said. According to him, since Oct, 2021, nearly 700,000 metric tonnes of rice have been imported following the reduction of levy imposed on a kilo of rice to 25 cents.
The entrepreneur said that the URPA on Sunday (16) had brought the further deterioration of the situation to the notice of the Presidential Secretariat via an e-mail. In spite of a much-touted directive that had been issued by President Ranil Wickremesinghe as regards swift government response to public concerns, the URPA was yet to receive at least an acknowledgment, Perera said.
The Finance Ministry confirmed that State Finance Minister Ranjith Siyambalapitiya issued instructions on Oct 12 to the Customs to release one million kilos of imported rice that hadn’t been cleared over the past few years. According to the Finance Ministry, the decision has been taken following talks between State Minister Siyambalapitiya and Ports and Shipping Minister Nimal Siripala de Silva at the latter’s ministry.
The ministry disclosed that 79 containers, carrying one mn kilos of rice, had been held over the failure on the part of the importers to pay demurrage for failing to clear them on time. They were among 950 containers detained at the Colombo harbour on the same charge, the Finance Ministry said, adding that there were considerable quantities of turmeric and karunka among that backlog.
Muditha Perera said that successive governments had allowed large scale imports of rice and other items at the expense of local producers. In a letter, dated Oct 16, addressed to President Wickremesinghe, the URPA alleged that in spite of sufficient stocks in the country, the SLPP resumed rice imports in Oct 2021, much to the disappointment of farmers. Claiming that this was done at the request of major rice millers, affiliated to the ruling alliance, the Association blamed the then Trade and Agriculture Ministers, Bandula Gunawardena and Mahindananada Aluthgamage, respectively, for negligence and unilateral decisions taken at the expense of the farmers.
The Association alleged that in spite of the continuing severe foreign exchange crisis and the availability of sufficient stocks of rice, the government allowed rice imports probably in a deliberate attempt to discourage the farming community.
Commenting on the devastating impact of the fertiliser and agro chemicals ban imposed by the then President Gotabaya Rajapaksa on the agriculture sector, the Association President asserted that the 2021/2022 Maha yield dropped by as much as 900,000 metric tonnes as a result.
The Association compared the large-scale import of rice with such imports in 2014/2015 that compelled the yahapalana government to even use Mattala airport to store paddy.
Declaring that the industry was in an acute crisis, Perera warned of irreparable damage to the economy. “Most of the farmers and small and medium rice producers are in a dilemma. Against the backdrop of sharp increase in electricity rates and depreciation of the rupee, the production costs have gone up,” Perera said.
The Association chief alleged that though some politicians referred to this issue, political parties hadn’t addressed the recurring problem though they repeatedly assured the farmers of their wellbeing. How could they guarantee food security when the farmers were unable to sell their produce, Perera said, urging Parliament to address the issues at hand or face the consequences.
News
Courtesy call by the Heads of Mission- Designate on Prime Minister
The heads of mission designate to Sri Lanka paid a courtesy call on Prime Minister Dr. Harini Amarasuriya on 26th of March at the Prime Minister’s office.
The delegation comprised Dharshana M. Perera, High Commissioner – designate of Sri Lanka to Malaysia, Ms. Dayani Mendis, Ambassador and PRUN – designate of Sri Lanka to Austria, Ms. N.I.D. Paranavitana, Ambassador – designate of Sri Lanka to Ethiopia & African Union, Prof. (Ms.) M.I. Fazeeha Azmi,Ambassador – designate of Sri Lanka to Iran, Saman Kumara Chandrasiri, Ambassador – designate of Sri Lanka to Israel, and M. Farook M. Fawzer, Representative – designate of Sri Lanka to Palestine.
The Prime Minister, Dr. Harini Amarasuriya, extended her best wishes to the Heads of Mission–designate and underscored the importance of their forthcoming assignments in advancing Sri Lanka’s national interests emphasizing their collective role in contributing towards the socio-economic upliftment of Sri Lanka.
The Prime Minister further highlighted the importance of projecting a positive and credible image of Sri Lanka internationally, through consistent, professional, and strategic engagement in their respective host countries and multilateral platforms.
She encouraged the Heads of Mission to actively identify and facilitate high-quality investment opportunities, particularly in sectors aligned with Sri Lanka’s development priorities, with a focus on sustainability, innovation, and long-term value addition.
Particular emphasis was placed on the promotion and diversification of Sri Lanka’s exports, including the exploration of new markets and strengthening trade linkages.
The meeting was attended by the Secretary to the Prime Minister, Additional Secretary to the Prime Minister Ms. Sagarika Bogahawatta and heads of mission-designate.
[Prime Minister’s Media Division]
News
SC finds Keheliya, others, guilty of violating FRs of public through corrupt drug procurement deal
The Supreme Court yesterday held former Health Minister Keheliya Rambukwella and several senior health officials liable for violating the fundamental rights of the public over a controversial drug procurement carried out under the 2022 Indian Credit Line.
Delivering the judgment, a three-judge bench, headed by Chief Justice Preethi Padman Surasena, and comprising Justice Kumudini Wickremasinghe and Justice Janak de Silva, found that the procurement of medical supplies from an unregistered company, in breach of established procedures, had resulted in a serious infringement of public rights.
The Court ruled that the granting of a Waiver of Registration by the authorities was “wrongful, arbitrary and capricious,” and held that the direct procurement carried out on an unsolicited basis was unlawful. The transaction was accordingly declared null and void.
In a significant order, the Court directed Rambukwella to pay Rs. 75 million in compensation to the State from his personal funds.
The then Health Ministry Secretary Janaka Chandragupta and former Chairman of the National Medicines Regulatory Authority (NMRA), Prof. S. D. Jayaratne, were each ordered to pay Rs. 50 million.
The Court further directed NMRA Chief Executive Officer Dr. Wijith Gunasekara and former Director of the Medical Supplies Division Dr. Thusitha Sudarshana to pay Rs. 50 million each as compensation.
The ruling followed the hearing of a fundamental rights petition filed by Transparency International Sri Lanka and two other parties.
The Court also instructed the Commission to Investigate Allegations of Bribery or Corruption to initiate appropriate action under the Anti-Corruption Act against those found responsible.
Senior Counsel Senany Dayaratne, with Nishadi Wickramasinghe, Lasanthika Hettiarachchi, Janani Abeywickrema and Maheshika Bandara, appeared for the petitioners.
News
Sajith nudges govt. to follow India’s example in giving relief to consumers by slashing taxes on fuel
Opposition and SJB Leader Sajith Premadasa yesterday urged President Anura Kumara Dissanayake to reduce taxes on fuel, just as the Indian government has done.
He said in a post on X that “Modi government has decided to reduce the Special Additional Excise Duty on petrol and completely remove it for diesel in order to cushion the hardship on the Indian consumer. High time for Anura Kumara Dissanayake to keep up to his election promise and follow suit.”
Meanwhile foreign media reported that India has slashed excise duties on petrol and diesel to protect consumers and rein in a potential spike in inflation, while imposing windfall taxes on aviation fuel and diesel exports, amid volatile global oil markets, as a result of the Iran war.
Global oil prices have surged past $100 per barrel after the near closure of the Strait of Hormuz, which serves as a conduit for 40% of India’s crude oil imports, since the US and Israel first struck Iran on February 28.
In a government order, released late on Thursday, India’s Finance Ministry reduced the special excise duty on petrol to three Indian rupees ($0.0318) per litre from 13 Indian rupees earlier. It also cut the duty on diesel to zero from INR 10 rupees per litre.
The government did not say how much the duty cuts would cost. The move comes ahead of elections next month in four Indian states and one federal territory, with Indian voters known to be extremely sensitive to higher prices.
“Government has taken a huge hit on its taxation revenues to ensure very high losses of oil companies, approximately 24 rupees a litre for petrol and 30 rupees a litre for diesel, at this time of sky high international prices, are reduced,” Indian Oil Minister Hardeep Singh Puri said in a post on X.
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