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Loss of vital byproducts of refinery having devastating impact on other sectors: FSP

Published

4 years ago

2021/11/20

By Rathindra Kuruwita

Byproducts of the Sapugaskanda oil refinery such as furnace oil, jet fuel, kerosene and naphtha are vital for many Sri Lankan industries and its shutdown will have a devastating impact on various sectors, Frontline Socialist Party’s (FSP) Education Secretary, Pubudu Jayagoda says.

Jayagoda said Minister of Energy Udaya Gammanpila had stated that importing refined petrol and diesel was much more economical than purchasing crude oil.

“We do not have crude oil because the country doesn’t have dollars. The CPC floated over five tenders and there were no international sellers who wanted to supply us crude. In fact, sellers had not responded to the coal tenders floated by Sri Lanka and this might lead to a power shortage at the beginning of next year,” he said.

The Ceylon Electricity Board (CEB) has been able to generate a significant portion of electricity with hydropower because of heavy rains, he said adding that by January 2022, the people might have to experience several hours of power cuts, Jayagoda said.

“Sri Lanka spent a significant amount of money on oil imports. In 2019, when a barrel of crude oil was selling at around USD 69, we spent about USD 3.67 billion to import oil. In 2020, we spent about USD 2.32 billion because the price of a barrel of crude oil dropped to about USD 45. Right now the price of a barrel of crude oil is about USD 80, and we will spend about USD 4 billion this year. There are some who believe that the price of a barrel will go up to USD 120 by the end of 2022,” he said.

Jayagoda added that while Sri Lanka had no control over world crude oil prices, there were several ways that the CPC could improve the situation through long-term planning. In 2020, there was a significant drop in oil prices and Sri Lanka could have kept a buffer stock, he said. There are oil storage tanks in Muthurajawela and Trincomalee. However, instead of renovating the tanks in Trincomalee, the government is planning to sell them, he said.

“Fifteen oil tanks in Trincomalee have been given to Indian Oil Corporation (IOC) on lease. However, the agreement expires at the end of the year, and we can take them back. However, the government not only plans to give them back to the IOC, but they are planning to place over 70 tanks under a company that India has a majority stake in. An understanding was reached on this during the recent visit by the Indian Foreign Secretary. The ‘talks’ were so successful that the Indian delegation took some photos opposite the tanks,” Jayagoda said.

The FSP Education Secretary said that the Sapugaskanda Oil Refinery had not been expanded since its inception. Even without any funds to develop its infrastructure, the refinery played a significant role in supporting many industries, he said.

“So, around 60% are byproducts of refining are furnace oil, black oil, jet fuel, kerosene and naphtha. The CPC makes a lot of money by selling them. By mid-1990s, the CPC had been able to pay for its crude oil imports by selling the byproducts. However, successive governments have ruined this sources income. The fact that the CPC still makes money from them shows that there are cash cows,” he said.

Jayagoda said that ultimately the government would end up spending more dollars importing furnace oil, jet fuel, kerosene, and naphtha. This is akin to the disaster created by banning the import of urea, he said. Although the government saved some money by bringing a halt to import of urea, it spent a large amount of dollars importing compost, potassium, and nitrogen.

“A number of state and private companies depend on the byproducts of refining. Earlier the CEB bought black and furnace oil from the CPC. Now, it’s planning to import them. We will probably do the same with kerosene, naphtha and jet fuel. The question is whether we have dollars? If the CEB can’t purchase these products that will affect the production of 200 MWs of electricity,” Jagoda said.

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Former Minister Mahinda Wijesekara passes away aged 83

Published

15 hours ago

2026/04/2

Priyan

Former Matara District Member of Parliament and Cabinet Minister Mahinda Wijesekara has passed away this morning (02) at the age of 83 family sources have announced.

Mahinda Wijesekara served as a Member of Parliament for the Matara district for over two decades (1989 to 2010), representing the People’s Alliance, the United National Party and the United People’s Freedom Alliance.

He held several ministerial portfolios, including Minister of Postal and Telecommunication Services in 2008, Minister of Forestry and Envioronment 1999-2001, Minister of Fisheries and Ocean Resources from 2001 to 2004 and Minister of Special Projects 2007-2008

He was in poor health following injuries sustained in the 2009 bomb attack by the LTTE terrorists in Godapitiya, Matara.

He was the father of former Minister Kanchana Wijesekara.

News

Navy seize 323kg of heroin from fishing vessel in southwestern seas

Published

18 hours ago

2026/04/2

Priyan

In a decisive strike against the drug menace, the Sri Lanka Navy intercepted a local multiday fishing trawler carrying a staggering haul of suspected narcotics in the seas southwest of the island.

This operation, carried out under the national mission “A Nation United”, resulted in the apprehension of six suspects (06) and the seizure of the trawler used to smuggle the illicit substance.

Following the mid-sea interception, the trawler was escorted to the Dikkowita Fisheries Harbour on the morning of 01 Apr 2026. A meticulous inspection conducted by the Police Narcotic Bureau (PNB) subsequently confirmed that the sacks (19) aboard contained more than 323kg of heroin.

The Commander of the Navy, Vice Admiral Kanchana Banagoda, accompanied by the Commander Western Naval Area and the Director General Operations, visited the Dikowita harbour to personally inspect the drug haul.

Addressing the media, the Navy Commander emphasized that these intensified surveillance efforts are carried out under the direct guidance of the Ministry of Defence. He highlighted that the Navy and the Sri Lanka Coast Guard have strategically coordinated operations across the island’s maritime zones to disrupt trafficking routes and ensure national security.

The Commander of the Navy stated that through surveillance operations conducted this year, the Navy has intercepted local multi-day fishing trawlers attempting to bring illegal substances. This has enabled the seizure of a large quantity of narcotics intended to be smuggled into Sri Lanka.

Furthermore, based on foreign intelligence received by the Sri Lanka Navy, continuous surveillance operations carried out off the Beruwala sea area over the past few days led to the recent (01 April) successful operation, he opined.

The Naval Chief stated that so far this year, 07 local multi-day fishing trawlers have been apprehended by the Navy. The street value of the narcotics seized from these boats is estimated to be approximately Rs. 40 billion.

The 06 suspects, the fishing trawler, and the seized heroin were handed over to the Police Narcotic Bureau for comprehensive investigation and onward legal proceedings.

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PM opens ‘Silver Age Center,’ an Elder Care, Training and Research Centre built with modern facilities in Kataragama

Published

21 hours ago

2026/04/2

Priyan

Prime Minister Dr. Harini Amarasuriya stated that a society must be built where all senior citizens can lead lives of safety, freedom, happiness, health, mobility, and spiritual well-being, with their rights safeguarded. She further emphasized that this is a responsibility shared by both the government and society.

The Prime Minister made these remarks on Tuesday (31st of March) while virtually participating in the opening of the ’Silver Age Center,’ an Elder Care, Training and Research Centre constructed with modern facilities in Kataragama. The event was held at the Ministry of Rural Development, Social Security and Community Empowerment, located in the new Sethsiripaya building.

During the event, the Prime Minister was presented with a draft of regulations and guidelines related to the regulation of institutions that provide residential care for senior citizens, by representatives of the National Council for Senior Citizens.

Expressing her views further, the Prime Minister stated:

“This project, which commenced in 2022, had been halted due to various reasons. However, we have now resumed the project and are pleased to hand it over to the public today.

One of the key commitments of our policy is to create a society that ensures safety and protects the rights of all. Everyone, from the young to the elderly, deserves to enjoy these rights, freedom, and happiness.

A significant portion of our population is rapidly transitioning into senior age. However, the age of 60 still represents an active stage of life where individuals can contribute meaningfully to society and the economy. Senior citizens have needs, as well as abilities and valuable experience. We must recognize that they can continue to engage with society and remain active contributors.

Institutions that provide services for senior citizens play a vital role, and maintaining them is a social responsibility. It is essential to ensure the rights and provision of necessary services for all senior citizens, whether they live within families, independently, or in institutional settings.

We must ensure access to healthcare, transportation, lifelong learning, freedom, happiness, and spiritual well-being for senior citizens, while safeguarding their rights.

We should move beyond the traditional concept of ’elders homes’ and instead develop institutions that cater to the diverse needs of senior citizens, enabling them to spend their later years with dignity and respect.”

The opening of the ’Silver Age Center,’ Elder Care, Training and Research Centre, was carried out by Deputy Minister of Trade, Commerce, Food Security and Cooperative Development, R. M. Jayawardhana, along with regional public representatives and government officials. The occasion was attended virtually by the Minister of Rural Development, Social Security and Community Empowerment, Dr. Upali Pannilage; Secretary to the Ministry, Sampath Manthrinayake; and other ministry officials.

(Prime Minister’s Media Division)