News
Kanchana admits consumers charged Rs. 50 per litre of fuel to settle USD 700 mn Indian loan
… USD 5 mn paid to Iran a month
By Shamindra Ferdinando
Power and Energy Minister Kanchana Wijesekera has confirmed that consumers of petrol and diesel have been made to pay Rs. 50 to Rs. 55 per litre since the middle of last year to settle what the Ceylon Petroleum Corporation (CPC) owed its creditors.
Minister Wijesekera said so when Chamuditha Samarawickrema raised the issue on ‘Salakuna’ live political programme on Hiru TV recently.
SJB trade unionist Ananda Palitha disclosed the CPC move in an interview with The Island recently. The former UNP trade union leader said that a litre of petrol 92 cost Rs. 366, Octane 95 Rs. 464, Auto Diesel Rs. 358 and Super Diesel Rs. 475 because the CPC passed its debt on to consumers. A litre of Kerosene is sold at Rs. 236.
Wijesekera said: “CPC owed USD 730 to suppliers. In addition, the CPC owed the two State Banks – Bank of Ceylon and People’s Bank Rs 199 bn. Under the Indian credit line, the CPC procured petroleum products to the tune of USD 700 mn from April to August 2022. We also owe Iran USD 240 mn as payments couldn’t be made due to international sanctions that had been in place at that time.”
With a view to easing pressure on the two State Banks, the CPC settled the entire amount owed to them, Minister Wijesekera said. The improvement of the financial situation due to the revision of fuel pricing formula enabled the CPC to repay Rs 150 bn out of Rs 199 bn. “We have settled the total amount owed to the People’s Bank and the Bank of Ceylon debt was brought down to approximately Rs 50 bn.”
Minister Wijesekera said that the CPC faced a major crisis as supplies had been disrupted due to their failure to pay suppliers. Of USD 730 mn debt, the CPC owed China about USD 400 mn, Minister Wijesekera said, disclosing China had initiated legal action against Sri Lanka in this regard. On a priority basis the CPC had settled the entire USD 730 mn owed to suppliers.
Commenting on the Indian credit-line used by the CPC to the tune of USD 700 mn, Minister Wijesekera said that the Treasury had undertaken to settle that amount. The minister contradicted Ananda Palitha’s claim that the Treasury had taken over the entire CPC debt amounting to USD 3 bn. According to him, consumers were charged Rs 50 to Rs 55 as excise duty per a litre of petrol and diesel to cover USD 700 mn Indian loan.
Referring to the long overdue payment for Iranian crude, Minister Wijesekera said it was being repaid in monthly installments of USD 5 mn each.
Responding to another query, Minister Wijesekera said that the CPC had been in debt to the tune of Rs 2 trillion. The Treasury had taken the bigger share of that amount including the USD 700 mn Indian credit line, he said. Asked whether Sinopec and Lanka IOC benefited from the Rs 50 to Rs 55 excise duty, Minister Wijesekera declared that money ended up with the Treasury.
Minister Wijesekera said that although diesel was subjected to tax it was not used to generate electricity now. Furnace oil and naphtha weren’t subject to taxes, he said, adding that the CPC didn’t make profits by supplying furnace oil to the CEB.
Asked why Sri Lanka didn’t obtain fuel supplies from Russia but almost entirely depend on Singapore based trading firms, Minister Wijesekera said that there were about 10 suppliers and the CPC followed tender procedures.
Minister Wijesekesa said that after Sri Lanka had finalized agreement with the IMF in respect of the USD 2.9 bn loan package, the CPC didn’t accept unsolicited bids.
Latest News
Royal Navy of Oman Vessel “SADH” arrives at Port of Colombo
The Royal Navy of Oman Vessel “SADH” arrived at the Port of Colombo on a logistics replenishment visit on Tuesday (10 Feb 26). The Sri Lanka Navy welcomed the visiting ship in
compliance with naval traditions.
The 75m – long ship is commanded by Lieutenant Commander Shaheen Saud Abdul Rahman AI Balushi.
The port call will facilitate professional interaction and goodwill exchanges between the two navies.
During the stay in Colombo, crew members of the ship are expected to visit some tourist attractions in the city of Colombo.
News
NPP: Speaker won’t step down, CIABOC can investigate him
* New Auditor General should not have been sworn in before Speaker – Opp.
* Suspended House Dy. Sec. Gen. Chaminda Kularatne takes his case to CA today
General Secretary of the National People’s Power (NPP) Dr. Nihal Abeysinghe yesterday said that there was no need for Speaker Dr. Jagath Wickramaratne to step down in view of the complaint lodged against him with the CIABOC (Commission to Investigate Allegations of Bribery or Corruption).
NPP General Secretary said so in response to The Island query whether the parliamentary group of the ruling party discussed the growing Opposition calls for the Speaker, who is also the Chairman of the Constitutional Council, to step down to facilitate the investigation.
The NPP parliamentary group consists of 159 MPs, including 18 National List (NL) members.
NL member Dr. Abeysinghe asked whether any other person, who had been investigated by the CIABOC, stepped down from his or her position to facilitate the inquiry.
The top official emphasised that the CIABOC could go ahead with its investigation without any hindrance.

Chamindra and Dr. Jagath
Opposition sources said that there hadn’t been a similar situation before and the CIABOC investigation into Speaker Dr. Wickramaratne is unprecedented as he heads the 10-member CC responsible and directly involved in all key appointments, including that of members to the CIABOC.
Sources pointed out that the newly appointed Auditor General, Ms. Samudrika Jayaratne, took the oath of secrecy before the Speaker on 5 February in Parliament after suspended Deputy General Secretary of Parliament Chaminda Kularatne complained to CIABOC.
In accordance with Section 9 of the National Audit Act, No. 19 of 2018, Jayaratne took the oath of secrecy in her capacity as the Auditor General of the National Audit Office and Chairperson of the Audit Service Commission.
Sources said that Kularatne would move the Court of Appeal today (10) against his removal at the behest of the Staff Advisory Committee, headed by the Speaker.
By Shamindra Ferdinando
News
Trinco Buddha statue case: All suspects, including 4 monks re-remanded till 11 Feb.
The Trincomalee Magistrate’s Court yesterday (09) further remanded 10 persons, including four Buddhist monks, arrested on 19 January, 2026, for allegedly placing a Buddha statue in the coastal reservation, on 16 January.
The Buddhist monks, including Ven. Balangoda Kassapa Thera, and six other individuals, were further remanded until 11 February.
They have been accused of violating the Coast Conservation Act by placing a Buddha statue on a block of land belonging to the Trincomalee Bodhiraja Temple.
Of the four monks, Ven Balangoda Kassapa Thera and Ven Trincomalee Kalyanawansa Tissa Thera moved the Court of Appeal against the Magistrate’s Court decision. The case was heard on 22 January before a Bench comprising the President of the Court of Appeal, Justice Rohantha Abeysuriya, and Justice K. Priyantha Fernando.
Manohara de Silva, PC, and President’s Counsel Uditha Igalahewa, PC, appearing for the petitioners, urged the Court to take up the matter urgently, describing it as a case of exceptional importance.
However, the Court of Appeal on 3 February dismissed the petitions against the remanding of Ven Balangoda Kassapa Thera and Ven Trincomalee Kalyanawansa Tissa Thera.
The order was issued by the Court of Appeal bench consisting of the President of the Court of Appeal, Justice Rohantha Abesuriya and Justice Priyantha Fernando.
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