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FSP picks holes in Trinco Tank Farm deal

Published

4 years ago

2022/01/8

By Rathindra Kuruwita

An agreements signed on Thursday night to develop the Trincomalee Oil Tank Farm as a joint venture between Ceylon Petroleum Corporation (CPC) and Lanka IOC was illegal and Sri Lankans should not accept them, Education Secretary of the Frontline Socialist Party (FSP), Pubudu Jayagoda said yesterday.

Jayagoda said that usually such agreements had three parts, – lease agreement, a modalities agreement and an agreement on the joint venture company, i.e. Trinco Petroleum Terminal Ltd. However, only the modalities agreement had been presented to the Cabinet in late December and it was that agreement the Cabinet approved on 03 January 2022, he said

“Did the government sign the lease agreement too? From what we hear, a lease agreement was signed on Thursday night. However, the Governor of the Eastern Province needs to sign the agreement for this lease agreement to be valid and legitimate. Since the Governor had not signed the agreement, the lease agreement is not legitimate and the entire agreement is null and void without a lease agreement. So we would like to tell Sri Lankans that there is no reason for us to accept or respect this agreement,” he said.

On Thursday night the lease agreement was signed and the signatories were Treasury Secretary, Land Commissioner General, Ceylon Petroleum Corporation (CPC), LIOC and Trinco Petroleum Terminal Ltd., the Minister of Energy Udaya Gammanpila said in a Tweet.

The Education Secretary of the Frontline Socialist Party said that the government had started to sign important agreements in the middle of the night. Earlier an agreement was signed, in the middle of the night, with US based, New Fortress Energy to transfer 40% of Yugadanavi shares and to handover the monopoly over the supply of LNG, he said.

“These strategically important agreements that have significant impact on our lives are not even presented to the Cabinet, let alone the people. These agreements are against our constitution and the law,” he said.

Jayagoda said given that the people had no access to the full agreement, they had to depend on the statements made by Minister Gammanpila. However, most of the statements the Minister made were false, he said.

“The Minister claims that agreements in 1987, 2003 and 2017 had already granted India the access to the old tanks in Trincomalee. These claims are contradictory. If the 1987 agreement had given the tanks to India, why sign another one in 2003 or 2017. Despite the Minister’s claims, there was no formal agreement to hand over 14 tanks to India in 2003, he said. A MoU was signed, but a formal agreement was never executed. The 2017 agreement between India’s Sushma Swaraj and then Minister Malik Samarawickrama too was only a MoU. So, IOC was holding these tanks illegally. However, when this agreement is signed it will formally have these tanks. The Minister also claims that the 1987 Indo-Sri Lanka accord earmarked these tanks for Indian use. However, the agreement only states that if we develop these tanks with a foreign partner that partner will have to be India. So Gammanpila is bending facts,” he said.

Jayagoda pointed out that it was now widely acknowledged that Sri Lanka didn’t sign the Indo-Lanka agreement voluntarily. India twisted the arm of then President J.R. Jayewardene to make him agree. The agreement did not even have clauses on what steps to take if one party violated the agreement, he said.

“The agreement had been violated so many times and it is a joke to say that we are adhering to a non-existent clause of this agreement. There really is no reason why we should accept the accord at all,” he said.

The current agreement signed on Thursday allows LIOC to make changes to the structures in the tank farm, Jayagoda said. The 2003 agreement only allowed IOC the use of the tanks.

“This is why this is a more dangerous agreement than anything signed in 1987, 2003 or 2017. Moreover, the agreement states that Sri Lanka can’t enter into agreements with other companies to operate in the tank farm for another decade. The worst part is that under the 2003, any issue that arises between the two parties could be solved by Sri Lankan law but the 2022 agreement says that we have to go before arbitration courts in Singapore to settle any dispute. Our previous performances before arbitration courts have been less than stellar,” he said.

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58,454 International aircraft movements in Sri Lanka in first 11months of 2025 – Ministry of Ports and Civil Aviation

Published

5 hours ago

2025/12/31

Priyan

According to figures released by the Ministry of Ports and Civil Aviation there have been 58,454 international aircraft movements in the first 11 months of 2025 in Sri Lanka. [An aircraft movement refers to the count of take offs and landings at an airport]

The figures also confirm that tourist arrivals via air stands at 2.1 million.

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Highest revenue in 93-year history of Inland Revenue Department collected in 2025

Published

8 hours ago

2025/12/31

Priyan

The Inland Revenue Department has succeeded in collecting Rs. 2,203 billion in revenue in 2025, the highest amount recorded in its 93-year history. This represents a surplus of Rs. 33 billion over the revenue target for the year and a 15 per cent increase compared with the revenue collected in the previous year, stated Commissioner-General of Inland Revenue Ms Rukdevi Fernando.

She made these remarks at a discussion held on Tuesday (30) morning at the Department’s auditorium under the patronage of President Anura Kumara Dissanayake.

Marking the first occasion in the 93-year history of the Inland Revenue Department that a President has visited the Department, the President attended a meeting with the staff to review the progress achieved in 2025 and the new plans for 2026.

The President expressed his appreciation to all officers and staff of the Inland Revenue Department for surpassing the revenue expected by the Government and urged everyone to continue working towards a common objective in order to realise the economic transformation required for the country.

Emphasising that no individual is entitled to the privilege of evading taxes, the President stated that the era in which a tax culture prevailed based on personal or political affiliations has come to an end. He further stressed that the law will be enforced without hesitation, irrespective of status, against those who attempt to evade taxes.

The President also pointed out that tax collection is neither repression nor coercion but a legitimate right of the State, adding that necessary changes will be made to laws, regulations, designations and staffing in order to secure this contribution.

He further emphasised that the Government’s objective is to ensure that the benefits of these economic achievements flow to the people of the country. The Government is focusing on improving essential public services to enhance the quality of life, undertaking a new transformation of the transport system and providing adequate allocations for the development of the education and health sectors.

The President also highlighted the need for a targeted programme to properly collect the taxes due to the Government by addressing issues such as improving tax literacy, simplifying the tax system and filling staff shortages.

Ms Rukdevi Fernando stated that the professional competence and dedication of the Department’s officers were the key factors behind this success.

She further noted that a revenue target of Rs. 2,401 billion has been set for 2026 and that the Department expects to achieve this through programmes aimed at enhancing tax compliance and broadening the tax base.

In addition, she said that the Department plans to expand third-party data sharing, strengthen investigations into domestic and overseas assets, take over the RAMIS system, reinforce risk-based auditing, introduce e-invoicing, adopt modern technology for tax administration and enhance tax ethics in 2026.

Minister of Labour and Deputy Minister of Finance and Planning Dr Anil Jayantha Fernando, Deputy Minister of Economic Development Nishantha Jayaweera, Secretary to the President Dr Nandika Sanath Kumanayake, Commissioner-General of Inland Revenue Ms Rukdevi Fernando and senior officials and staff of the Department were present at the occasion.

Business

Sri Lanka Customs exceeds revenue targets to enters 2026 with a surplus of Rs. 300 billion – Director General

Published

17 hours ago

2025/12/31

Priyan

The year 2025 has been recorded as the highest revenue-earning year in the history of Sri Lanka Customs, stated Director General of Sri Lanka Customs, Mr. S.P. Arukgoda, noting that the Department had surpassed its expected revenue target of Rs. 2,115 billion, enabling it to enter 2026 with an additional surplus of approximately Rs. 300 billion.

The Director General made these remarks at a discussion held on Tuesday (30) morning at the Sri Lanka Customs Auditorium, chaired by President Anura Kumara Dissanayake.

The President visited the Sri Lanka Customs Department this to review the performance achieved in 2025 and to scrutinize the new plans proposed for 2026. During the visit, the President engaged in extensive discussions with the Director General, Directors and senior officials of the Department.

Commending the vital role played by Sri Lanka Customs in generating much-needed state revenue and contributing to economic and social stability, the President expressed his appreciation to the entire Customs employees for their commitment and service.

Emphasizing that Sri Lanka Customs is one of the country’s key revenue-generating institutions, the President highlighted the importance of maintaining operations in an efficient, transparent and accountable manner. The President also called upon all officers to work collectively, with renewed plans and strategies, to lead the country towards economic success in 2026.

The President further stressed that the economic collapse in 2022 was largely due to the government’s inability at the time to generate sufficient rupee revenue and secure adequate foreign exchange. He pointed out that the government has successfully restored economic stability by achieving revenue targets, a capability that has also been vital in addressing recent disaster situations.

A comprehensive discussion was also held on the overall performance and progress of Sri Lanka Customs in 2025, as well as the new strategic plans for 2026, with several new ideas and proposals being presented.

Sri Lanka Customs currently operates under four main pillars, revenue collection, trade facilitation, social protection and institutional development. The President inquired into the progress achieved under each of these areas.

It was revealed that the Internal Affairs Unit, established to prevent corruption and promote an ethical institutional culture, is functioning effectively.

The President also sought updates on measures taken to address long-standing allegations related to congestion, delays and corruption in Customs operations, as well as on plans to modernize cargo inspection systems.

The discussion further covered Sri Lanka Customs’ digitalization programme planned for 2026, along with issues related to recruitment, promotions, training and salaries and allowances of the staff.

Highlighting the strategic importance of airports in preventing attempts to create instability within the country, the President underscored the necessity for Sri Lanka Customs to operate with a comprehensive awareness of its duty to uphold the stability of the State, while also being ready to face upcoming challenges.

The discussion was attended by Minister of Labour and Deputy Minister of Finance and Planning, Dr. Anil Jayanta Fernando, Deputy Minister of Economic Development, Nishantha Jayaweera, Secretary to the President, Dr. Nandika Sanath Kumanayake, Deputy Secretary to the Treasury, A.N.Hapugala, Director General of Sri Lanka Customs, S.P.Arukgoda, members of the Board of Directors and senior officials of the Department.