News
Govt. flayed for jacking up fuel prices despite Rs 120 bn profit since last Sept.
By Shamindra Ferdinando
The Convenor of ‘Samagi Joint Trade Union Alliance’ Ananda Palitha yesterday (06) alleged that the bankrupt country was being exploited to the hilt by the powers that be and external powers.
The one-time director of the Ceylon Petroleum Corporation (CPC) said that the Wickremesinghe-Rajapaksa government increased diesel and petrol prices on 30th July, in spite of unprecedented profits accrued, since September last year, while claiming there were sufficient stocks available for a period of three months.
The SJB trade union leader pointed out that retired Admiral Ravi Wijegunaratne, who served as the CPC Managing Director till the end of July, this year, was quoted as having told The Island recently that the CPC profits amounted to Rs 73 bn.
The latest price revision was announced close on the heels of the former Navy Commander’s declaration, Ananda Palitha said, adding that thanks to some intrepid persons in the CPC management he was able to obtain related information, the former UNPer said.
In a brief interview with The Island, Ananda Palitha emphasized that from Sept. 2022 to Dec .2022, the CPC earned quite staggering profits, amounting to Rs 40 bn. The situation has further improved, the former CPC employee said, adding that this year’s profits so far were estimated at Rs 84 bn.
Responding to another query, Ananda Palitha said that the CPC was no longer burdened with loans nor procured petroleum products on credit. According to him, the CPC’s unsettled loans amounting to USD 3 bn had been transferred to the Central Bank by the incumbent government.
Pointing out that the People’s Bank was the major creditor, Ananda Palitha stressed the importance of parliamentary oversight in the absence of transparency and accountability in the management process. It would be a grave mistake on the part of the government to go by the profits alone, Ananda Palitha said, urging thorough examination of the process to ensure that the consumers weren’t further burdened.
The latest price revision was announced on 30 July ahead of the arrival of the first consignment of fuel from the latest entrant to the market, Ananda Palitah said. China Petrochemical Corporation aka Sinopec would benefit by the price revision, the SJB official said. “On 30 July, CPC raised the price of 92 Octane petrol by Rs 20 to Rs 348. Octane 95 was also increased by Rs 10 to Rs 375 a litre. Super Diesel was increased by Rs 12 to Rs 358 per litre. Lanka IOC matched the CPC pricing formula,” Ananda Palitha said.
The second consignment followed and Sinopec now got around 42,000 metric tons of petroleum products here. These products included Petrol 92 Octane, Petrol 95 Octane, Auto Diesel and Super Diesel. The new supplier hasn’t been able to start distribution as stipulated in the agreement, Ananda Palitha said.
Ananda Palitha alleged that the incumbent administration took advantage of the political-economic-social crisis to pursue an agenda of its own. Having repeatedly assured that their primary intention was to ensure the continuous supply of quality fuel at competitive prices, the government called for international tenders to procure the services of recognized suppliers.
The three selected enterprises were M/s Sinopec Fuel Oil Lanka (Private) Limited, F5, Hambantota Maritime Center, Mirijjawila, Hambantota, Sri Lanka, M/s United Petroleum Pty Ltd, 600 Glenferrie Rd, Hawthorn, Victoria 3122, Australia and M/s RM Parks, 1061 N. Main St, Porterville, CA 93257, USA, in collaboration with Shell PLC. However, only Sinopec proceeded as agreed with the government as the other enterprises declined to pay USD 2 mn license fee unless they received an international guarantee in respect of the funds.
Alleging that the Chinese obviously had received favored treatment Ananda Palitha pointed out Sinopec paid USD 2 mn licence fee. Citing a range of concessions received by Sinopec, Ananda Palitha stressed that contrary to the tender procedures, Power and Energy Minister Kanchana Wijesekera subsequently through a cabinet paper granted two far reaching concessions. As a result of ministerial intervention, 1 percent royalty payments in USD had been done away with while the money raised through sales here could be taken out immediately in USD.
Ananda Palitha also questioned the decision to grant BoI status to Sinopec contrary to the tender conditions.
The outspoken trade union activist said that the Chinese entry into the retail market here should be examined against the status of the Lanka IOC operations and the continuing expansion facilitated by Indian interventions at the highest level. In spite of change of governments, Lanka IOC, since its inception here in 2003 sustained growth and received a mega boost with the agreement on Trincomalee oil tank farm finalized during Udaya Gammanpila’s tenure as the Power and Energy Minister.
News
CEB demands 11.57 percent power tariff hike in first quarter
The Ceylon Electricity Board (CEB) has submitted a proposal to the Public Utilities Commission of Sri Lanka (PUCSL) seeking an 11.57 percent increase in electricity tariffs for the first quarter of 2026, citing an estimated revenue shortfall and additional financial pressures, including cyclone-related damages.
According to documents issued by the PUCSL, the proposed tariff revision would apply to electricity consumption from January to March 2026 and includes changes to both energy charges and fixed monthly charges across all consumer categories, including domestic, religious, industrial, commercial and other users.
Under the proposal, domestic electricity consumers would face increases in unit rates as well as fixed monthly charges across all consumption blocks.
The CEB has estimated a deficit of Rs. 13,094 million for the first quarter of 2026, which it says necessitates the proposed 11.57 per cent tariff hike. The utility has noted that any deviation from this estimate whether a surplus or a shortfall will be adjusted through the Bulk Supply Tariff Adjustment (BSTA) mechanism and taken into account in the next tariff revision.
In its submission, the CEB said the proposed revision is aimed at ensuring the financial and operational stability of the power sector and mitigating potential risks to the reliability of electricity supply. The board-approved tariff structure for the first quarter of 2026 has been submitted to the PUCSL for approval and subsequent implementation, as outlined in Annex II of the proposal.
The CEB has also highlighted the financial impact of Cyclone Ditwah, which it said caused extensive damage to electricity infrastructure, with total losses estimated at around Rs. 20 billion. Of this amount, Rs. 7,016.52 million has been attributed to the first quarter of 2026, which the utility said has a direct bearing on electricity tariffs.
The CEB warned that if external funding is not secured to cover the cyclone-related expenditure, the costs incurred would need to be recovered through electricity tariffs in the second-quarter revision of 2026.
Meanwhile, the PUCSL has said that a decision on whether to approve the proposed tariff increase will be made only after following due regulatory procedures and holding discussions on the matter.
By Sujeewa Thathsara ✍️
News
Health Minister sends letter of demand for one billion rupees in damages
Ondansetron controversy
Minister of Health and Mass Media Dr Nalinda Jayatissa has sent a letter of demand for Rs. 1 billion in damages from YouTube content creator Dharmasri Kariyawasam, accusing him of disseminating false and defamatory material linking the Minister to the importation of Ondansetron and inciting public unrest.
The notice, sent through the Minister’s lawyers, states that investigations are currently under way into 10 medicines, including Ondansetron Injection, manufactured by India-based Maan Pharmaceutical Limited.
Ondansetron Injection was among nine injectable drugs recently suspended by the National Medicines Regulatory Authority (NMRA) following reports of patients administered with the drug suffering adverse complications.
Despite the ongoing investigations, Kariyawasam allegedly aired a widely viewed programme on his YouTube channel titled “The hidden story of the Indian drug that claimed lives, Mayor Balthazaar’s relative, and Minister Nalinda’s cover-up.”
According to the letter of demand, the programme falsely portrayed Minister Jayatissa as being directly responsible for importing the drug, colluding with the supplier, and attempting to conceal the issue, while depicting him as indifferent to public suffering.
The Minister’s lawyers maintain that these allegations are entirely false and defamatory, citing passages in which Kariyawasam allegedly accused Jayatissa of lying about the supplier, concealing facts related to PTC Medicals (Pvt) Ltd., the actual importer, and showing a lack of concern over deaths purportedly linked to the drug.
The programme also claimed links between the directors of PTC Medicals and family members of Colombo Mayor Vraîe Cally Balthazaar, implying political favouritism.
News
One killed, two injured in shooting at Kaduwela
A 20-year-old man was shot dead and two others injured in a shooting incident reported from the Menikgara area of Korathota, Nawagamuwa, in Kaduwela, on Thursday night (01 January).
The injured victims were initially admitted to the Oruwala Hospital in Athurugiriya and were later transferred to the Homagama Base Hospital for further treatment.
Police said the shooting targeted a group allegedly linked to an underworld figure known as Borelle Kudu Duminda, and investigations indicate the attack may have been carried out by a rival faction led by Borelle Kudu Chathu.
Preliminary investigations by the Nawagamuwa Police revealed that the victims were inside a rented house at the time of the attack. The suspects are believed to have arrived on a motorcycle and a three-wheeler, opened fire, and fled the scene immediately afterwards.
According to police, two gunmen had gained entry to the premises after cutting through a fence and used a pistol in the attack.
The deceased was identified as Sankalpa, a 20-year-old resident of Borella.
Police further said the victim and another individual were allegedly involved in an incident on November 14, 2025, in which a woman’s hand was severed with a sharp weapon in the Sarana Road area of Borella. Investigations have revealed that the woman is a close associate of Kudu Chathu.
Police said the woman’s residence was allegedly used by suspects involved in a separate shooting in Borella on 24 June, 2025, which had targeted an individual who escaped unharmed. It is alleged that the survivor of that shooting and the youth killed on Thursday later carried out the attack on the woman.
Both individuals are believed to be close associates of Kudu Duminda, a rival of Kudu Chathu, police said, adding that efforts to arrest suspects connected to the earlier incidents had been unsuccessful.
Investigators believe the latest killing was carried out based on information that a member affiliated with Kudu Chathu’s faction was present at the location. One of the injured persons is reportedly the brother-in-law of the individual who survived the June shooting.
A senior police officer said special security had earlier been deployed in the Borella area following intelligence reports that Kudu Duminda was planning a retaliatory attack.
Police noted that this is the first shooting incident reported in Sri Lanka for 2026.
By Norman Palihawadane ✍️
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