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Govt. flayed for jacking up fuel prices despite Rs 120 bn profit since last Sept.

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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.



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Harsha flays govt. over plan to pass coal, Treasury losses to public

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Harsha de Silva

Chairman of the Public Finance Committee Dr. Harsha de Silva, MP, yesterday (31) said that the National People’s Power (NPP) government was going ahead with a controversial move to pass on the massive losses caused by the coal scam to the public. The government also intended to recover USD 2.5 (approximately Rs 800 mn) lost by the Treasury from the people by introducing an amendment to the Budget, the Opposition lawmaker alleged.

Dr de Silva said that the government had been compelled to increase the supply of diesel for the oil-fired power plants to meet the Norochcholai generation shortfall due to the use of substandard coal.

Responding to The Island queries, the former State Minister said that regardless of repeated assurances that electricity consumers wouldn’t be burdened for the lapse on their part, the government, in writing, has assured the International Monetary Fund (IMF) to recover the losses from the public. This came to light after the IMF released the Letter of Intent submitted by the government following the completion of the combined Fifth and Sixth Reviews under the Extended Fund Facility (EFF) programme to receive USD 695 mn.

Commenting on the specific assurance as regards the upward revision of fuel prices and electricity tariffs, MP de Silva pointed out the government’s assurance of its commitment to cost-recovery pricing for fuel and electricity meant that subsidies provided to ease the burden on households and businesses would remain within budgeted limits and be phased out by the end of September 2026.

Welcoming the USD 695 mn IMF loan, MP de Silva said that in terms of the agreement between the government and the IMF, the relief would end once Rs 100 bn allocated to provide relief was spent on subsidies on fuel (Rs 57 bn), electricity (Rs 15 bn) and the rest on ‘Aswesuma’ social welfare scheme and fertiliser.

MP de Silva said that the crisis should be examined taking into consideration that Sri Lanka paid very high prices to procure fuel in the wake of the continuing turmoil in West Asia. He noted that having perpetrated a coal scam the government could not under any circumstances absolve itself of responsibility for the skyrocketing electricity tariffs.

Commenting on the Sri Lanka-IMF agreement, lawmaker de Silva lambasted the government for utterly chaotic and poor management of the economy. Severe criticism was directed at the government over the rapid depreciation of the rupee against the USD and the NPP’s pathetic performance. Amidst speculation that De Silva may switch allegiance to the NPP, the MP also posted a video in which he flayed the government alleging the NPP couldn’t take forward measures taken by former President Ranil Wickremesinghe.

MP de Silva explained how the people would end paying for the theft of USD 2.5 by way of an amendment to the Budget. The MP told The Island that assurance meant that the government acknowledged that there was no hope of recovering USD 2.5 mn though they talked of investigations and progress being made. De Silva called for a combined Opposition effort to pressure the government to act responsibly in the face of growing challenges.

The government couldn’t lie as the relevant IMF report and the government letter of intent were in the public domain, Dr de Silva said.

by Shamindra Ferdinando

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PM opens Vesak pandals

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The PM opening a Vesak pandal

Two Vesak pandals erected in the Colombo area to mark Vesak Poya were ceremonially opened under the patronage of Prime Minister Dr. Harini Amarasuriya.

The Prime Minister first opened a pandal depicting the Sambula Jataka, constructed by the Sri Vaishakya Society of the Borella Magazine United Traders’ Association. She subsequently attended the opening of another pandal at the Grandpass Kosgas Junction, which portrays the Samudra Vanija Jataka tale, and ceremonially inaugurated it by lighting a traditional coconut-oil lamp.

The event was attended by members of the Maha Sangha, clergy of other faiths, Members of Parliament Dr. Najith Indika, Attorney-at-Law Lakmali Hemachandra and Dilith Jayaweera, Deputy Inspector General of Police Nihal Thalduwa, former Member of Parliament Thilanga Sumathipala, and President of the Magazine United Traders’ Association Palitha Herath, among others.

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UNP challenges NPP move to amend Vihara – Devalagam Act

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The UNP yesterday said that the government did not have the power to establish a Dharma Court. According to the Constitution, neither the executive, the legislature nor the judiciary had the power to interpret the Dharma, it added. The power to pass laws on disciplining the clergy had been granted to Parliament in terms of Article 105 of the Constitution, the UNP said, emphasising that the ultimate powers lay with the committees of the respective sects.

The UNP said so in response to President Anura Kumara Dissanayake’s recent speech that a concept paper had been submitted for amending the Vihara – Devalagam Act and the Cabinet had approved it. The President further stated that he had held a discussion with the Registrar, the Commissioner for Buddhist Affairs and the Attorney General. It is not known whether he discussed the matter with the Buddhist MPs in the Opposition.

Excerpts of the statement issued by former President Ranil Wickremesinghe’s Office: ” President Anura Kumara Dissanayake has recently publicly agreed to a call to take the same measures as previous kings in cases where the Buddhist religion is distorted under the guise of Dhamma.

Over our history we have seen some kings kill the Sangha during their reigns. The JVP also killed the Sangha in the same way during the years 1987-89.Kotikawatte Saddhatissa, Weltota Pangnadassi, Beligalle Mahinda, Kumbagoda Gnanaloka, Athurugiriya Pangnatissa, Soragune Pangnasara, Pelpola Dharmapala, Kandy Dhammarakkhitha and many other monks are included in the list of the JVP’s assassinations.

Apart from shedding the blood of the Buddha, the greatest sin that Buddhists can commit is the killing of the Sangha.  The JVP has not apologised for the killings. Is it moral for the President to accept this invitation without first taking this step?

In addition to killing the Sangha, the JVP also looted valuable historical items from the monasteries and temples.

The JVP has never accepted that Buddhism should be given priority politically. The JVP has always acted against Buddhism.

A major question that arises from this is whether the JVP, which has a history of killing monks, can do such a thing after taking power. What is the hidden motive here?

Mr. J. R. Jayewardene took steps to include a separate chapter in the 1978 Constitution to take necessary measures for monks who behave undisciplined and engage in crimes.  Provisions were made for the establishment of a Sangha Court to decide on the discipline of monks.

What did the NPP government done during the Sinhala and Tamil New Year? It disrupted all the auspicious signs. While the whole world was celebrating Vesak Poya on May 1st, the Vesak Poya day in Sri Lanka was postponed to a later date in order to hold political rallies.

There is no objection to taking action against unruly monks. But there is a procedure for how to discipline monks. Cabinet papers related to this should be prepared and presented to the Maha Sangha led by the Mahanayaka Theros and then a decision should be taken. Everything should be carried forward according to the existing tradition in the country.

The President has also expressed his views on taking monks to court. He has expressed such views without understanding the tradition. Taking wrong-doing monks to court in their robes is not something that only happened yesterday. Thalduwe Somarama and Mapitigama Buddharakkhita were presented to court wearing their robes for the assassination of Mr. Bandaranaike and later their robes were removed. This is not limited to monks. Father Mathew Peiris first came to court for legal proceedings wearing his robe. Accordingly, the monks who are currently acting in an undisciplined manner must also follow the same procedure that was implemented earlier.

The President mentioned in his speech that a concept paper was submitted for amending the Vihara – Devalagam Act and the Cabinet agreed to it. The President further stated that he had held a discussion with the Registrar, the Commissioner for Buddhist Affairs and the Attorney General. It is not known whether he had discussed this matter with the opposition Buddhist parliamentarians. This work has all been done only by the government without any consultation.

The government does not have the power to establish a Dharma Court. According to the Constitution, neither the executive, the legislature nor the judiciary have the power to interpret the Dharma. The power to pass laws on disciplining the clergy has been given to Parliament under Article 105 of the Constitution. However, the final powers lie with the committees of the respective sects. At present, this work has been done by the cabinet, officials and a handful of monks of a government that does not accept Buddhism.

The temples with the most assets and properties today are in the monasteries and temples that fall under the Vihara – Devalaya Village Act.  It is no secret that the Janatha Vimukthi Peramuna (JVP) is taking the position that these temples should be taken under government control. There is a strong suspicion that the Dharma Court is being created for this purpose.

An organized program to destroy Buddhism is being implemented today through government-affiliated social media. A section of civil society is also involved in it. What is always happening today is the marginalization of the Buddhist monastic-lay opinion.In the President’s speech, a reference was also made to the holding of the World Buddhist Congress in this country under the current government.

Such a situation is also indicated in the Vasala Sutta.

“Na jaccha vasalo hoti,

Na jaccha hoti brahmano;

Kammana vasalo hoti,

Kammana hoti brahmano”

Its Sinhala meaning is as follows.

“One is not a householder by birth.Nor is one a Brahmin by birth.One becomes a householder or a Brahmin by one’s actions.”

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