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LIOC move worsens govt.’s fuel woes

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Widest difference in fuel pricing formula since LIOC’s entry in 2003

Widest difference in fuel pricing formula since LIOC’s entry in 2003

By Shamindra Ferdinando

Former Energy Minister Udaya Gammanpila says Lanka-India Oil Company (LIOC) has effectively taken itself out from the local petroleum market and is pricing its products in line with economic realities.

The LIOC has achieved that objective by keeping its diesel and petrol prices (per litre) Rs 77 and 92 , respectively, higher than those of Petroleum Corporation (CPC), the leader of the Pivithuru Hela Urimaya says.

Having increased diesel and petrol prices on 06 Feb. and 25 Feb, 202, causing a price difference of Rs. 17 and Rs 27, per litre of diesel and petrol respectively, the LIOC has widen that margin, the widest since its entry into the Sri Lankan market in 2003.

President Gotabaya Rajapaksa removed Gammanpila from ministerial portfolio on 03 March within 24 hours after a group of dissident constituents of the ruling Sri Lanka Podujana Peramuna (SLPP)) unveiled an alternative economic plan.

Responding to The Island queries, lawmaker Gammanpila said that the LIOC couldn’t be faulted for seeking to curtail losses. In terms of an agreement Sri Lanka entered into with India in respect of the LIOC’s entry into local market, the Indian enterprise had the right to increase its prices unless Sri Lanka absorbed the losses.

Attroney-at-law Gammanpila emphasized that current Ceypetco pricing formula didn’t reflect crude oil prices in the world market, which were rising even higher mainly as a result of the war in Ukraine.

Gamini Lokuge succeeded Gammanpila as the energy minister while Pavitradevi Wanniarachchi received the power portfolio, which was previously held by Lokuge.

MP Gammanpila said that the latest hike would make it impossible for the vast majority of people to pump diesel or petrol at LIOC service stations. However, those living in some areas would experience difficulties as they were serviced by LIOC. In terms of the 2003 agreement, LIOC took over one third of service stations at that time managed by the CPC. At the time of the agreement, the countrywide CPC network comprised 300 service stations. Today, LIOC operates 211 service stations.

LIOC blamed rising international prices due to a variety of reasons, including the Russian invasion of Ukraine for increasing its pricing formula for increases announced on Feb 06 and Feb 24 though the latest was blamed on what the Indian enterprise called a significant depreciation of the Lankan Rupee against the USD.

In a statement issued late Thursday night, the LIOC quoted its Managing Director as having said that the depreciation of the Rupee twice in a span of seven days by Rs 57 against USD has directly impacted the landed cost of Gasoil and Gasoline making them dearer by an equivalent amount per litre. Oil and gas prices are also surging as western countries respond to Moscow’s invasion with numerous sanctions to isolate Russia and cut it off from global oil markets. Our current losses are exorbitantly high considering current international prices leaving no other option but to increase the prices of Gasoil and Gasoline. However, it is a painful reality that even after this price increase, there would still be heavy losses at the prevailing international prices.”

LIOC MD Gupta emphasized that LIOC did not receive any subsidy from the Government of Sri Lanka and its losses were calculated based on actual landed cost of the product after considering payment of applicable duties, taxes and other statutory levies including handling charges.

Former Minister Gammanpila said that the country lacked the wherewithal to meet the economic crisis. “There is no point in denying that fact. The sacking of Wimal Weerawansa and Udaya Gammanpila wouldn’t make a difference at all, the PHU leader said, urging the government to work out a proper strategy at least now.

Lawmaker Gammanpila recalled his efforts to establish a special fund to cushion the impact in case of steep increase in fuel prices. The former Minister alleged that his proposal that had been made in March 2021 didn’t find favour with the Finance Ministry. Even after a cabinet sub-committee endorsed the proposal in Oct. 2021, the Finance Ministry simply ignored it, the MP alleged.

Gammanpila said that regardless of repeated assurances given by the government regarding the normalization of fuel supply, the LIOC increase would bring the entire Ceypetco distribution under tremendous pressure. The former Minister pointed out that the LIOC sales volumes would drop sharply to such an extent it would no longer matter.



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Elders’ home devastated by fire was a ‘house of horror’: Witnesses

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Death toll rises to 12: Director remanded

Some residents were allegedly chained

Police have come under public pressure to investigate allegations of inhumane treatmenf the residents at an elders’ home in Batagoda, which was also reportedly used as a care centre for persons with special needs, following a devastating fire that has so far claimed 12 lives.

Eyewitnesses who were among the first responders told the media that several residents had been chained inside rooms at the Senehase Kedella Elders’ Home when the fire broke out on Wednesday. They claimed that rescue efforts were hindered as iron chains could not be removed, and that some residents died while being restrained.

Authorities have not yet verified these claims, and Police said investigations are continuing.

Police spokesman ASP F.U. Wootler, contacted for comment, said there were rumours to that effect, but the Police were not in a position to verify the claims until a report from the Government Analyst was received. He said eight survivors with burn injuries were being treated in hospital.

Meanwhile, the Director of the facility had been arrested and was due to be produced before the Horana Magistrate’s Court, Police said adding that he was remanded till June 11.

The death toll from the fire has risen to 12 as of Thursday morning following the recovery of additional charred remains during ongoing forensic examinations at the site. Six others sustained serious injuries and are being treated at the Horana Base Hospital.

Police said 72 residents were inside the facility at the time of the blaze. Of them, 10 died inside the building, seven were injured and hospitalised, while 51 were rescued and relocated.

Survivors were initially housed at Batagoda Junior School before being transferred with Army assistance to another branch of the same care network in Galpatha.

A magisterial inquiry was conducted on Thursday morning. Horana Magistrate Lakmini Vidanagamage visited the scene. The burnt remains were examined and removed under judicial supervision.

Separately, allegations have emerged that residents were required to pay an admission fee of Rs. 75,000, along with a monthly charge of Rs. 35,000 to the centre. Police have not commented on these claims.

The director was taken to the scene as part of ongoing investigations, while forensic experts continue examinations to determine the cause of the fire, which remains undetermined.Anguruwatota Police are conducting investigations.

 By Norman Palihawadane and Nishan S Priyantha

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CERT : AI-generated videos depicting Prez, PM lure public into financial scams

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Sri Lanka CERT has issued a public warning over the circulation of artificial intelligence (AI)-generated videos falsely depicting President Anura Kumara Dissanayake, Prime Minister Harini Amarasuriya and several other prominent personalities to promote fraudulent investment schemes online.

According to complaints received by the national cyber security agency, the videos have been created using deepfake technology and are being used as part of attempts to defraud members of the public through financial scams.

The images of famous sports personalities and other public figures have also been misused in the deceptive content.

The agency has warned that similar AI-generated material has been used to spread false information relating to investment opportunities, employment offers, as well as matters concerning the country’s economy and tax policies.

According to Sri Lanka CERT, the videos are being widely shared across online platforms and frequently contain links urging viewers to make investments in return for purported profits.The agency has cautioned that these links may redirect users to fraudulent websites designed to steal personal information, financial data and money from unsuspecting victims.

Sri Lanka CERT has urged the public to exercise extreme caution when encountering such content online and advised against clicking on suspicious links or sharing personal information through unverified websites.

“The public should remain vigilant and avoid becoming victims of false information and online fraud schemes,” the agency said.

Sri Lanka CERT has also encouraged internet users to verify information through official sources before acting on any investment, employment or financial offers circulated via social media or other online platforms.

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New tax law comes into force

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Speaker Dr Jagath Wickramaratne endorsing the certificate on a Bill (File)

Speaker Dr Jagath Wickramaratne on Wednesday endorsed the certificate on the Inland Revenue (Amendment) Bill, bringing the legislation into force as the Inland Revenue (Amendment) Act, No. 11 of 2026, Parliament sources said.

The Bill, which amends the Inland Revenue Act, No. 24 of 2017, was passed by Parliament on May 19.

The new law introduces a series of reforms aimed at modernising tax administration procedures, improving compliance and enforcement mechanisms, enhancing the accuracy of tax calculations and deductions, and strengthening transparency within the tax system.

The amendments also support broader economic policy objectives and include measures designed to reinforce anti-money laundering safeguards.Among the key provisions of the Act is the mandatory use of Taxpayer Identification Number (TIN) certificates for specified high-value financial transactions.

The legislation also introduces revisions to the calculation of taxable income, clarifies tax exemptions applicable to certain projects and business entities, and expands the scope for information disclosure to relevant authorities.

The amendments are expected to improve the efficiency of tax administration while facilitating greater accountability and regulatory oversight.With the Speaker’s endorsement of the certificate, the Inland Revenue (Amendment) Bill has now become law as the Inland Revenue (Amendment) Act, No. 11 of 2026.

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