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Low income families sidelined despite making 25% down-payment five months ago

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Preference given to buyers who made 100% payment

by Suresh Perera

In what was described as “shocking official apathy”, prospective buyers of Sea View Residencies at Lunawa complained that they have been left out in the cold despite making the 25% down-payment plus other “related charges” five months ago to procure a flat.

The 356-unit housing complex was developed by the Urban Settlement Development Authority (USDA) targeting “low and middle income families”, but in what appears to be a mix-up in priorities, those who had the financial strength to make 100% payment upfront were given preference, they asserted.

Applicants who settled the full payment on outright purchases have already moved into occupation, while those who made the required 25% down-payment five to six months ago are still left kicking their heels until a monthly repayment plan on the balance due is worked out by the USDA with a financial institution, they said.

“I made a down-payment of one million rupees plus an additional Rs. 140,000 as “related charges” to acquire a unit under a price range of Rs. 4.56 million to Rs. 5.58 million each. Despite the payment made in February 2021, there’s still no word of the promised repayment scheme being finalized so that I can occupy the flat”, a prospective buyer said.

Apart from the standard “we will get back to you soon” response from a USDA officer handling the project, there’s still no hope of occupying the flat, he noted.

“It’s a double whammy because for the past five months, I have to pay rent on the house I am occupying in addition to servicing the bank facility raised to make the one million rupee down-payment”, he further said.

“It’s so convenient for them to blame their lackadaisical attitude on Covid-19 when they had two full months to sort out the matter before the pandemic situation worsened”, he pointed out.

Even during the travel restrictions in the Western province in May, banks were operational and government officers were supposed to ‘work from home’. However, it appears that USDA officials handling the housing project had been twiddling their thumbs without pushing through the repayment plan, he continued.

He said that it’s a joke to call Sea View Residencies a housing project for “low and middle income families” when those who had the financial capacity to make 100% payment upfront are already occupying the flats, while lesser beings continue to be pushed around.

“That’s correct, we have already given the units to those who have made the payment in full”, says USDA’s Chairman, M. L. Subasinghe Arachchi.

He said the 100% payment factor was based on a Cabinet decision.

Asked about “low and middle income families” who have made the down-payment, but are still kept waiting, he replied, “they can arrange a bank loan, and if necessary, we can give a letter to facilitate it”.

“If we had the collateral to raise millions of rupees as a loan from a financial institution, we wouldn’t have opted for a flat meant for low income families”, a prospective buyer protested.

A USDA officer familiar with the subject said a scheme to work out a monthly repayment facility on behalf of the considerable segment of prospective buyers who had made the 25% down-payment has been forwarded to HDFC Bank.

“We have to submit the deed of the land certified by the Land Registry to finalize the process”, he further said.

“When I made inquiries about the inordinate delay, I was told that the Land Registry had earlier rejected the application because Lunawa (Moratuwa) had been identified by a USDA officer as an area within the purview of ‘Southern Province’ instead of Western Province”, the buyer claimed.

“With such ‘competent’ people around, I cannot imagine how much longer we will be kept waiting to take possession of our flats”, he laughed.

“Anyway, we hope to sort out matters within the next two weeks”, the officer assured.

He admitted that the general practice earlier when selling units in housing complexes specifically meant for low income families was for the government institution concerned to arrange a feasible credit facility through a government financial institution on reasonable interest.

Application forms were initially issued to interested buyers on a non-refundable deposit of Rs. 2,000 each. After shortlisting applicants, interviews were called, where they were assured that after the 25% down-payment on the total value of each unit was made, a credit facility would be arranged through the Bank of Ceylon under a monthly repayment plan at 6.25% per annum.

The applicants were shortlisted on the basis of a monthly household income of Rs. 75,000. The availability of a bank facility was also clearly outlined in letters sent to buyers shortlisted as “eligible applicants” to purchase the flats.

Asked why buyers who made the full payment were given preference, while low income families who sought a repayment plan have been kept waiting for more than five months, the officer explained that some issues that cropped up had to be ironed out.



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Coal scandal: Govt. urged to release lab report

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Pubudu Jagoda

The government is under mounting pressure to release a foreign laboratory report on the controversial coal consignment imported for the Lakvijaya Power Plant, with the Frontline Socialist Party (FSP) accusing the authorities of political interference and tender manipulation.

Speaking to the media after a party meeting in Homagama yesterday, FSP Education Secretary Pubudu Jagoda demanded an immediate explanation for the delay in disclosing the report from a Dutch laboratory, Cotecna, which was commissioned to test samples of the coal stocks in question after doubts were raised about an earlier local laboratory assessment. Jagoda said Cabinet media spokesperson Dr. Nalinda Jayatissa had announced that the report would be submitted by 16 January, but it had yet to be made public.

“The Sri Lankan lab confirmed the coal was substandard and could damage both the environment and power plant machinery. The foreign lab has independently verified the same results, we are told. Yet, political pressure appears to be delaying the release of the report.” He warned that any attempt to issue a false report would eventually be exposed and urged the government and the laboratory to maintain transparency.

SLPP MP D.V. Chanaka told Parliament last week that while 107 metric tonnes of coal were normally required per hour to generate 300 megawatts, but as many as 120 tonnes of newly imported coal were needed to produce the same amount of power due to its lower calorific value. Tests showed the first two shipments had calorific values of 5,600–5,800 kcal/kg, below the required minimum of 5,900 kcal/kg, said.

Jagoda accused the government of tailoring procurement rules to benefit an Indian supplier, citing a drastic reduction in reserve requirements—from one million metric tonnes in 2021 to just 100,000 tonnes in 2025—and alleged previous irregularities by the company, including a 2016 Auditor General finding regarding a rice supply contract and the 2019 suspension of a key agent of the company by the International Cricket Council over match-fixing.

He further criticised systemic manipulation of the coal tender process, including delays in issuing the tender from the usual February-March window to July, and progressively shortening the submission period from six weeks to three, giving an advantage to suppliers with stock on hand.

The Ministry of Energy recently issued an amended tender for 4.5 million metric tonnes of coal for the 2025/26 and 2026/27 periods, following the cancellation of an earlier tender. Jagoda warned that procurement delays and irregularities could trigger coal shortages, higher spot-market purchases, increased electricity costs, and potential power cuts if hydropower falls short.

Jagoda called for urgent investigations into the procurement process, insisting that any mismanagement or corruption should not be passed on to the public.Denying any wrongdoing, the government has said it is waiting for the lab report.

by Saman Indrajith ✍️

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Greenland dispute has compelled Europe to acknowledge US terrorising world with tariffs – CPSL

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Dr Weerasinghe

The Communist Party of Sri Lanka yesterday (18) alleged that the US was terrorising countries with unfair tariffs to compel them to align with its bigot policies.

CPSL General Secretary Dr. G. Weerasinghe said so responding to The Island query regarding European countries being threatened with fresh tariffs over their opposition to proposed US take-over of autonomous Danish territory Greenland.

US President Donald Trump has declared a 10% tariff on goods from Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands and Finland with effect from 1 February but could later rise to 25% – and would last until a deal was reached. Targeted countries have condemned the US move.

Dr. Weerasinghe pointed out that none of the above-mentioned countries found fault with the US imposing taxes on countries doing trade with Russia and Iran. Now that they, too, had been targeted with similar US tactics, the CP official said, underscoring the pivotal importance of the world taking a stand against Trump’s behaviour.

Referring to the coverage of the Greenland developments, Dr. Weerasinghe said that news agencies quoted UK Prime Minister Keir Starmer as having said that the move was “completely wrong”, while French President Emmanuel Macron called it “unacceptable.

Dr. Weerasinghe said that Sri Lanka, still struggling to cope up with the post-Aragalaya economic crisis was also the target of discriminating US tariff policy. The top CPSL spokesman said that the recent US declaration of an immediate 25% increase in tariff on imports from countries doing business with Iran revealed the prejudiced nature of the US strategy. “Iran is one of our trading partners as well as the US. Threat of US tariffs on smaller countries is nothing but terrorism,” Dr. Weerasinghe said, stressing the urgent need for the issue at hand to be taken up at the UN.

Responding to another query, Dr. Weerasinghe cited the US targeting India over the latter’s trade with Russia as a case in point. He was commenting on the recent reports on India’s Reliance Industries and state-owned refiners sharply cutting crude oil imports from Russia. The CPSL official said that the EU wouldn’t have even bothered to examine the legitimacy of US tariff action if they hadn’t been targeted by the same action.

Perhaps, those who now complain of US threats over the dispute regarding Greenland’s future owed the world an explanation, Dr. Weerasinghe said. The reportage of the abduction of Venezuela’s President and the first lady underscored that the US intervened because it couldn’t bear the Maduro administration doing trade with China and other countries considered hostile to them, Dr. Weerasinghe said.

The CPSL official said that the NPP couldn’t turn a blind eye to what was happening. Just praising the US wouldn’t do Sri Lanka any good, he said, adding that the Greenland development underscored that the US under Trump was not concerned about the well-being of any other country but pursued an utterly one-sided strategy.

The US dealings with the NPP government, particularly the defence MoU should be examined taking into consideration US tariffs imposed on Sri Lanka at the onset of the second Trump administration and ongoing talks with the US, Dr. Weerasinghe.

By Shamindra Ferdinando ✍️

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MPs’ Pension Repeal Bill challenged in Supreme Court

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 Two petitions have been filed before the Supreme Court challenging the constitutionality of the proposed Parliamentary Pensions (Repeal) Bill, which seeks to scrap pensions for legislators.

The Bill, presented to Parliament on 7 January by the Minister of Justice and National Integration, has drawn strong opposition from retired parliamentarians who argue that it undermines the rights of former lawmakers and their dependents.

One petition has been filed by former MPs M. M. Premasiri, Nawarathne Banda, Nishantha Deepal Gunasekara, and Saman Siri Herath, who served in Parliament from 2004 to 2010. The other petition is by former MPs Piyasoma Upali (1988–2004) and Upali Sarath Danstan Amarasiri (1988–2000).

The petitioners argue that former MPs, many of whom dedicated decades of service to the nation, often sacrificed careers and business prospects for public duty. They contend that retired MPs and some widows rely solely on their pensions, which range between Rs. 60,000 and Rs. 80,000, amounts they say are insufficient to cover basic living and medical expenses.

The petitions seek a declaration that the Bill requires approval by the people through a referendum and a two-thirds majority in Parliament, citing constitutional safeguards.

The petitions were filed through Attorney-at-Law Sanath Wijewardane and are to be supported by Dr. Wijeyadasa Rajapakshe PC.

 By AJA Abeynayake ✍️

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