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Industry leaders say ban on oil palm crop expansion has jeopardized Rs. 26bn investment

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Representatives of the Palm Oil Industry Association (POIA) Association met with President Gotabaya Rajapaksa to present an appeal for a pragmatic solution to the impasse created by non-scientific opposition to the cultivation of oil palm, Dr. Rohan Fernando, president of the industry’s apex body, said.

The President’s announcement of a ban on further expansion of the crop has placed a Rs. 26 billion investment in jeopardy, he noted.

“We have presented the facts that respond to the environmental and other concerns expressed by critics, and elaborated on the economic potential of the industry in terms of supporting the government’s efforts to conserve foreign exchange through import substitution, and to generate better wages for plantation workers,” Dr. Fernando told the Association’s AGM last week.

He said that with the re-election of the founder office bearers and committee of the POIA for a second two-year term, business leaders pledged to continue their advocacy in the national interest on behalf of Sri Lanka’s beleaguered palm oil industry.

Palm oil is the most-widely used vegetable oil in the world, meeting 42 per cent of global demand from only 14.8 million hectares of land world-wide, while Soya Bean, the No. 2 crop, meets only 29.8 per cent of the global oil demand from 103.8 million hectares of land, he elaborated.

He said the current mean national yield of coconut oil is 0.8 MT per hectare in contrast to the global mean palm oil yield of 3.8 – 4.0 MT per hectare, which means that five times more land needs to be allocated to produce an equivalent volume of coconut oil.

A worker employed in an oil palm plantation earns an average of over Rs. 60,000 per month, which is more than twice the wages of a worker employed on a tea or rubber plantation, Dr Fernando said. “Therefore, cultivating oil palm is one strategy to address low worker wages within permissible limits and oil palm is also an economically-viable crop for smallholders.”

He added that the opportunity for import substitution is also immense in Sri Lanka as the country imports almost 220,000 MT of palm oil per year.

“We produce only around 25,000 MT of palm oil per year and coconut oil cannot meet the balance demand. An increase in local palm oil production could enable a foreign exchange saving in the region of approximately Rs 30 billion”, he further said.

The Association has repeatedly stressed that the campaign against oil palm cultivation in Sri Lanka is based on untruths, half-truths, misrepresentation and panic-mongering and that the country’s oil palm cultivation is a case study for guilt-free palm oil, Dr. Fernando continued.

Lessons learnt from the mistakes of other countries have been implemented in a slow and measured expansion of oil palm cultivation over the past 50 years, with no deforestation, no habitat loss and no adverse environmental or climate impacts scientifically attributable to the crop, he added.

Addressing the most common argument used against oil palm, he said: “Critics allege that cultivation of oil palm has affected rainfall in Galle, Kalutara and other districts. However, in the last several years rainfall in these districts has increased and caused flooding, which clearly shows that there has been no drop in rainfall in any of these districts. On the contrary, rainfall has drastically reduced in the last 10 years in the Nuwara Eliya and Kandy Districts, where there is no oil palm cultivated.”

“We remain hopeful that the President will favourably consider the Association’s request to permit the planting of saplings legitimately imported by plantation companies in response to the 2014 Cabinet decision during the Mahinda Rajapaksa presidency to expand the extent under oil palm cultivation up to 20,000 hectares”, he said.

The POIA represents cultivators as well as refiners, processors, manufacturers, marketers and sellers of palm oil and other products of the oil palm, who have cumulatively invested Rs 26 billion in the industry.

Sri Lanka has less than 11,000 hectares under oil palm – just over 1 per cent of the extents under tea, rubber and coconut – and plantation companies had been mandated by a government decision in 2014, to increase the total area under oil palm to 20,000 hectares under strictly-enforced guidelines that ensure the industry is environmentally non-invasive, before the government back-pedalled on the plan, leaving companies with oil palm saplings to the value of Rs. 500 million in nurseries.

The office bearers and executive committee re-elected at the POIA AGM for 2020-22 comprises Dr. Rohan Fernando (President), Vish Govindasamy and Sajjad Mawzoon (Vice Presidents), Mrs Oshadhi Kodisinghe (Secretary), Ravi Jayatilleke (Treasurer) and Messrs Gayan Samarakone, Bhathiya Bulumulla, Lalith Obeyesekere, Thishan Karunasena, Manjula Narayana, Manoj Udugampola and Binesh Pananwala.



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Heat Index at ‘Caution level’ at some places in the Western, Sabaragamuwa, Southern and North-western provinces and in Monaragala and Mannar districts

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Warm Weather Advisory
Issued by the Natural Hazards Early Warning Centre of the Department of Meteorology at 3.30 p.m. on 11 March 2026, valid for 12 March 2026.

The public are warned that the Heat index, the temperature felt on human body is likely to increase up to ‘Caution level’ at
some places in the Western, Sabaragamuwa, Southern and North-western provinces and in Monaragala and Mannar districts.

The Heat Index Forecast is calculated by using relative humidity and maximum temperature and this is the condition that is felt on your body. This is not the forecast of maximum temperature. It is generated by the Department of Meteorology for the next day period and prepared by using global numerical weather prediction model data.

Effect of the heat index on human body is mentioned in the above table and it is prepared on the advice of the Ministry of Health and Indigenous Medical Services.

ACTION REQUIRED
Job sites: Stay hydrated and takes breaks in the shade as often as possible.
Indoors: Check up on the elderly and the sick.
Vehicles: Never leave children unattended.
Outdoors: Limit strenuous outdoor activities, find shade and stay hydrated.
Dress: Wear lightweight and white or light-colored clothing.

Note:
In addition, please refer to advisories issued by the Disaster Preparedness & Response Division, Ministry of Health in this regard as well.

For further clarifications please contact 011-744649

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Power sector reforms jolted by 40% pay hike demand

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Nusith Kumaratunga

The government’s sweeping electricity sector restructuring programme ran into fresh turbulence yesterday, with authorities warning that meeting a 40 percent salary increase, demanded by striking power sector unions, could push electricity tariffs up by nearly 100 percent.

Chairman of the National Transmission Network Service Provider (NTNSP), Nusith Kumaratunga, issuing the warning at a media briefing, said the additional salary burden would significantly escalate operating costs in the newly formed power sector companies.

According to Kumaratunga, granting the 40 percent salary increase would raise the monthly wage bill by about Rs. 1.8 billion, amounting to nearly Rs. 22 billion annually, placing enormous pressure on the already fragile financial position of the electricity sector.

“If that additional burden is passed on to consumers, electricity tariffs may have to increase by close to 100 percent,” he said.

The briefing was organised by the management of the successor companies created following the restructuring of the Ceylon Electricity Board (CEB).

Kumaratunga said electricity sector trade unions had presented 64 demands in the wake of the restructuring exercise.

“Out of the 64 demands, 62 have already been agreed to,

while the remaining two have been referred to President Anura Kumara Dissanayake for discussion,” he said.

He explained that the majority of the demands related to the continuation of privileges previously enjoyed by employees under the CEB structure.

“During the initial round of discussions itself, the boards of directors agreed to 59 of those demands,” he noted.

Among the concessions already granted was the continuation of bonus payments, similar to those previously paid by the CEB, at least temporarily, until a performance-based incentive system is introduced.

The management had also agreed to grant an allowance of Rs. 11,000, in addition to the existing cost-of-living allowance, bringing the average additional monthly benefit to around Rs. 17,000 per employee, he said.

Kumaratunga stressed that management had approved all demands that could be granted at the ministerial level.

However, he said the proposed 40 percent salary increase would be difficult to justify, particularly at a time when other segments of the public service were not receiving similar benefits.

He also revealed that unions had requested that a 25 percent salary adjustment, granted to senior executives in 2024, be extended to all employees, with retrospective effect from January 1, 2024.

Granting such a request would require amending an existing Cabinet decision, which the boards of directors of the newly established companies do not have the authority to do, Kumaratunga explained.

He pointed out that the newly created electricity sector companies had only commenced operations on Monday, and their work had already been disrupted by the ongoing trade union action.

“It is difficult to understand why the strike continues when the vast majority of demands have already been addressed,” he said.

However, the Ceylon Electricity Board Engineers’ Union clarified that the 40 percent salary increase was not their primary demand.

Union representatives said that the electricity sector employees were originally due for a salary revision in January 2027, but the ongoing restructuring had raised concerns that the scheduled increase might not materialise.

“That is why we requested at least a reasonable percentage increase in order to secure some form of salary revision,” a senior electrical engineer said.

The dispute comes at a critical moment as the government presses ahead with the unbundling of the CEB into separate generation, transmission and distribution entities, a reform programme, officials say, is aimed at improving efficiency and attracting investment to Sri Lanka’s troubled power sector.

However, the restructuring has been strongly opposed by trade unions, which argue that the reforms could undermine employee security and weaken state control over a strategic national utility.

With industrial action continuing and tariff hikes looming as a possibility, the confrontation between the government and electricity sector unions appears set to intensify in the coming days.

By Ifham Nizam

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UN scientific research ship here amidst ban on such vessels

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The United Nations-flagged vessel R/V Dr. Fridtjof Nansen

A UN vessel arrived in Colombo yesterday (11) to conduct a month-long marine scientific survey in Sri Lanka’s Exclusive Economic Zone (EEZ). This is the first foreign scientific research vessel here since President Ranil Wickremesinghe banned such visits on January 1, 2024, for a period of one year. However, the ban remains in place with the NPP government yet to announce its new decision on the issue.

The following is the text of statement issued by the Foreign Ministry yesterday: “On the invitation of the Government of Sri Lanka, the United Nations-flagged vessel R/V Dr. Fridtjof Nansen, under the Food and Agriculture Organisation (FAO), is scheduled to arrive in Sri Lanka today to conduct a marine scientific survey in Sri Lanka’s Exclusive Economic Zone (EEZ) in collaboration with the Ministry of Fisheries, Aquatic and Ocean Resources and the National Aquatic Resources Research and Development Agency (NARA).

R/V Dr. Fridtjof Nansen supports countries in collecting critical scientific data for sustainable fisheries management and in understanding how climate change is affecting marine ecosystems. The survey, spanning 32 days, will focus on assessing marine living resources and marine ecosystems, providing updated scientific data that will support Sri Lanka’s sustainable fisheries management and ocean governance. During the mission, scientists will undertake a range of activities, including hydro-acoustic surveys to estimate the biomass and distribution of key fish stocks in Sri Lankan waters; assessment of marine pollution levels; and biodiversity monitoring.

An important component of the programme is capacity building. The mission will bring together Sri Lankan scientists from NARA and other national institutions with international experts, promoting scientific collaboration and knowledge exchange.

Sri Lanka previously hosted the R/V Dr. Fridtjof Nansen in 2018, when the vessel conducted a comprehensive survey of Sri Lanka’s continental shelf and upper slope, in collaboration with national institutions. Earlier, Nansen surveys were also carried out in Sri Lankan waters in 1978–1980, reflecting a long-standing scientific partnership under the Nansen programme.

Sri Lanka’s participation in this survey reflects the country’s continued commitment to sustainable fisheries, marine ecosystem protection, and international scientific cooperation in the Indian Ocean region.”

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