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Fuel queues partially due to Minister’s big mouth: Official

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By Shiran Ranasinghe

A significant number of fuel filling station owners had stopped placing orders with the Ceylon Petroleum Corporation (CPC) due to an announcement by Energy Minister Kanchana Wijesekera that fuel prices would be significantly reduced in the first week of April.

According to a spokesperson for the Fuel Distributors’ Association of the CPC, a reduction of approximately Rs 100 per litre of fuel would result in a loss of Rs 660,000 from a 6,600 liter bowser.

As a result, orders for fuel had dropped by approximately 50%, as a senior CPC official said, noting that the government should avoid making advance announcements about fuel price revisions.

He said quees would have formed near filling sttions in the first week of April even without the CPC strike, for gas stations had not placed orders due to the expected price reduction.

In a recent address to Parliament, Minister Wijesekara announced a significant reduction in fuel prices at the next revision, slated for April in accordance with the fuel price formula.

The minister attributed the potential for lower prices to the receipt of an IMF bailout, which would allow the government to procure fuel shipments at reduced rates through competitive bidding. He also noted that Sri Lanka had previously faced challenges in opening Letters of Credit and obtaining credit facilities, as the country was unable to provide guarantees to fuel suppliers.

With the IMF bailout, however, the government would be able to procure fuel at lower prices and secure long-term credit facilities. Furthermore, the minister noted that global fuel prices had decreased and the Sri Lankan rupee had strengthened against the US Dollar, which were favorable factors for reducing fuel prices.

Overall, the minister expressed confidence that the impending price reduction would have a noticeable impact on the public.



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Formulation of a Draft Economic Development Bill to expedite the process of Digital Transformation and Digital Economic Development

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It is essential to establish an institutional framework with legal powers to ensure the effective implementation of national digital policy and guidelines.

Quality human capital should be attracted to this institutional framework for the compilation of policies, implementation of policies, regulation, and empowerment of operations. The continuous participation of the private sector should also be considered in establishing a strong institutional framework.

It has been further identified that attention should also be
drawn to new fields of digital innovation, including support for artificial intelligence and related activities.

Taking into consideration the aforementioned matters, a concept paper has been formulated to prepare a Draft Economic Development Bill for the establishment of a new institutional framework.

Accordingly, the Cabinet of Ministers has approved the resolution furnished by the  President in his capacity as the Minister of Digital Economy to instruct legal draftsman to formulate a Draft Economic Development Bill based on the aforementioned concept paper.

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Cabinet approval for Sri Lanka Community and Health Survey – 2026/2027

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The Sri Lanka Community and Health Survey is the main data source for obtaining necessary information for reviewing progress toward achieving the national health development goals, as well as the expected sustainable development goals by 2030.

The last survey was conducted in the year 2016, and the Sri Lanka Community and Health Survey should be conducted to obtain updated data to enable the collection of related data and indicators concerning the health and well-being targets of the Global Sustainable Development Objectives.

Accordingly, the Cabinet of Ministers has approved the resolution furnished by the President in his capacity as the Minister of Finance, Planning, and Economic Development to take necessary steps to conduct the aforementioned survey.

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A National Water Tariff Policy for all Water Supply and Sanitation Services

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The access to secure, reliable and affordable drinking water and adequate sanitation facilities is essential to maintain public health, promote social well-being and foster economic development.

The Sri Lankan Government recognizes water supply and sanitation services as both an economic good and a basic human need. Therefore, when pricing for water and sanitation, a balance should be maintained between the financial sustainability of the service providers and the requirement to ensure fair and affordable access for all strata in the society.

Accordingly, the Sri Lankan government has identified the necessity of a national water supply that is sensitive to gender equality and social integration applicable to all water supply and sanitation service providers. At present, there is no formal national framework for setting, reviewing, approving, and implementing tariffs for water supply systems operated by various water supply providers as well as for setting, reviewing, approving, and implementing tariffs for sanitation systems.

Therefore, the Ministry of Housing, Construction, and Water Supply has formulated a water tariff policy covering all water supply service providers under the Sri Lanka Water Supply and Sanitation Sector Reform Program, which is a policy-based loan program implemented under Asian Development Bank funds.

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