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Owners of small cars driven round the bend due to non-availability of tyres

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by Suresh Perera

A shortage of automobile tyres in the market is driving motorists round the bend amidst complaints that dealers still holding stocks have inflated prices in the backdrop of existing import restrictions.

The worst affected are owners of small cars, many of whom derive an income by operating passenger taxi and affiliated services.

“We have no option but to ground our vehicles and be deprived of earnings to care for our families”, some passenger taxi services operators complained.

There is also the risk of facing legal action as the traffic police are now examining tyres of passenger vehicles on the roads following the bus accident at Passara, they noted.

Moreover, in the case of an accident, there is every possibility that insurance claims will be dishonored in case the tyres are found worn out, they further said.

The market is not wholly dependent on locally manufactured products, as the import restrictions apply only to radial tyres for rim sizes 12 and 13, and for motorcycle and three-wheeler tyres, says Ravi Dadlani, Managing Director, CEAT Kelani Holdings, a key player in the local tyre industry.

“That’s the crux of the matter. Tyres for rim sizes 12 and 13 are used in small cars, which are aplenty in the country not only for private use but also in the taxi services business, the operators pointed out.

“How can we run hires with worn out tyres and endanger the lives of passengers especially on wet days?”, they asked.

There is no restriction on the import of all other tyre types and sizes, including those for trucks and buses, Dadlani said.

With regard to ‘import restricted sizes’ – cars rim sizes 12 and 13, motorcycles and three-wheelers, CEAT produces 31,800 car Radial tyres in 12 & 13 sizes per month (whereas the market demand for these sizes is 32,000) meeting 100% of the market requirement, he explained.

If that was so, where have all the tyres pumped into the market gone?, the operators queried. “With dealers claiming they have not received fresh stocks, we have been going around in circles to find the right (tyre) sizes”.

Even refurbished tyres are being now being sold for fancy prices due to the shortage. Unlike earlier, there are no small tyres dumped on roadsides now because everything is being refurbished as prices are good due to the demand, they asserted.

“They wanted Rs. 5,000 for a size 13 refurbished tyre with no guarantee on performance. Perhaps, road accidents have shot up because some motorists use them as there’s no option”, a taxi service driver remarked.

It’s a risk no doubt, but some people prefer to take the challenge rather than keep their vehicles grounded and go hungry, he said.

CEAT also produces 100% of the requirement for three-wheeler tyres and 50% of the requirement for motorcycle tyres, the Managing Director said.

“Together with other local manufacturers of three-wheeler and motorcycle tyres, we can meet 150% of Sri Lanka’s demand in these categories”, he assured.

“People who talk of statistics should go around and see for themselves the reality of the situation on the ground”, the operators suggested.

Those who are holding stocks are selling them at exorbitant prices, they claimed.

The dealers are provided a price list covering all sizes and types of tyres by each manufacturer and are entitled to discounts of up to, or more than 30%. They are expected to pass on a substantial discount to the end customer based on the purchase terms, and to our knowledge the majority of genuine establishments still do so, Dadlani said.

There may be a price list, but that does not necessarily mean it happens that way. The shortage in the market has seen the emergence of brokers and middlemen who can procure tyres for customers at fancy prices, the operators further asserted.

Those who sit in comfort and dish out figures should do a round and find out what’s happening in the marketplace. They will then be able to come to terms with reality, they said.

Dealers say that when they order 100 tyres, for example, they receive only 25 and these are sold in double quick time due to the demand, they added.

“Our supplies to each dealer are on the basis of an established demand pattern based on the size of the market served by each outlet. This has worked well over many years. However, some dealers are now arbitrarily demanding more tyres to build up a larger inventory and may complain if they do not receive the increased volumes they are ordering”, Dadlani pointed out.

“It is also possible that a particular tyre size may not be available on the day it is ordered, but given the production cycles we operate, that size will become available within that month. We are in touch with cab companies and have not received complaints of vehicle fleets being grounded due to lack of tyres”, he continued.

A tyre dealer in Colombo The Sunday Island spoke to said local brands were not available, but offered a size 14 Chinese product for Rs. 9,900 each. Another dealer said he has only Dunlop to fit rim sizes 13 and 14 and quoted Rs. 11,750 for each.

The Managing Director said that CEAT has the capacity to produce 100% of the car and van radial tyre requirements for rim sizes 12 and 13, and together with other local manufacturers, 150% of the requirement of motorcycle tyres and 150% of the requirement for three-wheeler tyres.

Asked whether CEAT increased prices after the import restrictions were enforced, he said the company reduced prices in December 2019 and kept them unchanged in 2020 and until January 2021. During this period, natural rubber prices in the world market increased by over 50%. As a result, CEAT revised prices by 11.8% in January 2021 purely to absorb the raw material cost/other costs increases.

Asked whether the temporary closure of the CEAT manufacturing plant due to some employees testing Covid-19 positive lead to a disruption in the supply chain and reflect on market availability of its products, Dadlani replied, “In line with the government mandated health and safety protocols and in the interest of employee safety, we suspended manufacturing for seven days in February this year. This did result in an unavoidable disruption of supplies, considering that we manufacture about 3,200 radial and motorcycle tyres per day. We however made up for the production loss through additional production on Sundays”.

 

 



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GL: Colombo Port City Bill received AG’s sanction

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…SC scheduled to commence hearing petitions today

By Shamindra Ferdinando

SLPP Chairman Prof. G.L. Peiris says that the proposed Colombo Port City Economic Commission Bill is consistent with the Constitution. Prof. Peiris, who is also the Education Minister, insists the Bill received the sanction of the Attorney General.

Prof. Peiris explained to the media the circumstances under which the incumbent government had initiated the proposed Bill. He did so having briefed Ven. Dr. Ittapane Dhammalankara Thera as regards the current political developments, at the Sri Dharmaloka Maha Viharaya, Rukmale, Pannipitiya, on Saturday (17).

President Gotabaya Rajapaksa recently presented the Colombo Port City EC Bill to the Cabinet of ministers. The 76-page Bill provides for the establishment of an EC authorised to grant registrations, licences, authorisations, and other approvals to carry on businesses and other activities in the Special Economic Zone (SEZ) to be established within the Colombo Port City.

Responding to government member Dr. Wijeyadasa Rajapakse’s bombshell accusations that the proposed Bill when enacted in parliament would transform newly reclaimed land adjacent to the Galle Face Green to sovereign Chinese territory, Prof. Peiris emphasized the responsibility on the part of the President in respect of the implementation of the project. Declaring that even an amendment couldn’t be moved without specific approval of the President, Prof. Peiris said all reports pertaining to financial matters, too, should be submitted to the President.

The former law professor also challenged those opposed to the proposed Bill claiming that the police and the military would be excluded from performing duties in the reclaimed land. One-time External Affairs Minister insisted that the police and the military enjoyed the right to exercise powers in terms of the country’s law in case of violations.

The minister said that the government was keen to create an environment conducive for foreign direct investment. However, those who now decried the Colombo Port City EC Bill conveniently forgot the formation of the ‘Greater Colombo Economic Commission’ (GCEC) under a new draconian Bill introduced by the then President J.R. Jayewardene.

Prof. Peiris said unlike JRJ’s Bill, the one proposed by the incumbent government adhered to the Constitution hence the approval from the Attorney General.

Prof. Peiris alleged that the JRJ’s Act paved the way for GCEC to take decisions pertaining to newly formed Export processing Zones (EPZ) and basically conduct its affairs outside the purview of the parliament. Claiming that those who exercised the required powers could transfer funds to and from accounts and anyone violating the secrecy faced jail terms, Prof. Peiris stressed that even the judiciary couldn’t intervene in some matters pertaining to this particular Act introduced in 1978.

According to Prof. Peiris, in 1992, the then President Ranasinghe Premadasa further strengthened the law by depriving the public an opportunity to obtain a restraining order from a court in respect of the all-powerful Commission.

Prof. Peiris accused the UNP and its breakaway faction, the Samagi Jana Balavegaya (SJB) and other interested parties of propagating lies against the project as part of their overall political strategy. The minister acknowledged that the UNP was among those who moved the Supreme Court against the proposed Bill.

Since former Justice Minister Rajapakse strongly condemned the proposed Bill at a hastily arranged media briefing at Abayaramaya under the auspices of Ven Muruththettuwe Ananda thera, several Ministers and State Ministers, Keheliya Ranbukwelle, Mahindananda Aluthgamage, Prof. G. L. Peiris, Namal Rajapaksa, Ajith Nivard Cabraal responded to their colleague on behalf of the government.

A five-member bench of the Supreme Court will begin hearing the petitions today (19).

Among those who filed cases against the proposed Bill were President of the Bar Association Saliya Pieris, PC, former lawmaker Wasantha Samarasinghe on behalf of the JVP, civil society activists, Gamini Viyangoda and K.W. Janaranjana on behalf of Purawesi  Balaya and the Center for Policy Alternatives (CPA).

Viyangoda questioned the government’s motive in depriving the public ample time and space to challenge the constitutionality of the Bill.

Purawesi Balaya spokesperson said that the disputed Bill had been placed on the Order Paper of Parliament on the 8th of April 2021, at a time when the sittings of the Supreme Court were suspended for the vacation. In terms of the Constitution any citizen seeking to challenge a Bill on the grounds that it is inconsistent with the Constitution has to do so within one week of being placed on the Order Paper of Parliament, which in this instance is the 15 th of April 2021. The petitioner said between the 8 th April 2021 and 15 th April 2021, there were the weekend and three public holidays intervening, thereby giving any citizen seeking to challenge the Bill, only two working days to obtain legal advice and representation.

Those who complained bitterly over urgent Bills exercised the same strategy as regards the controversial Bill, the civil society activist said. Responding to another query, Viyangoda said that if the government was confident the Bill didn’t violate the Constitution, it could have been properly discussed at their parliamentary group meeting before being presented to the cabinet of ministers.

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Wijeyadasa, under heavy flak over opposition to China project, says ready to face consequences

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by Shamindra Ferdinando

SLPP lawmaker Dr. Wijeyadasa Rajapakshe, PC, yesterday (18) told The Island that he stood by the accusations he made in respect of the proposed Colombo Port City Economic Commission Bill.

The former Justice Minister emphasised that he had expressed concerns publicly regarding the planned project after carefully examining the proposed Bill.

“In spite of a spate of statements issued by various government spokespersons, I’m confident of the legal process scheduled to begin today (19). The entire country should be concerned over the government move made at the behest of China.”

Responding to another query, the Colombo district MP urged political parties represented in Parliament to study the Bill with an open mind. The proposed law should be examined taking into consideration the previous UNP-led government transferring control of the strategic Hambantota port to China on a 99-year-lease and China is also in control of a terminal in the Colombo port for 35 years.

The MP said that he was ready to face the consequences of his decision to take a contrary view as regards the Chinese project. Those who had been benefited by the mega China funded project would shamelessly back it, lawmaker Dr. Rajapakse maintained, recollecting how members of parliament backed the 2002 Ceasefire Agreement brokered by Norway, shielded Treasury bond thieves et al.

Those who moved the Supreme Court against the proposed Bill included the Bar Association of Sri Lanka, MP Rajapakse said. The former Minister claimed that unprecedented tax exemptions provided to the businesses coming up in the newly reclaimed land adjacent to the Galle Face Green would pose a severe threat to the national economy.

The MP said that he didn’t personally have anything against China or any other country, but strongly believed in political and economic independence of the country. Therefore, the right-thinking lawmakers couldn’t under any circumstances vote for the proposed Bill as it was, the former Minister said.

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Hiding in obscure corner of India, Myanmar’s ousted lawmakers plotting to dethrone military junta

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BY S VENKAT NARAYAN

Our Special Correspondent

NEW DELHI:

Roughly a dozen ousted Myanmar lawmakers, who fled to India after the February 1 military coup, are now busy plotting to dethrone the generals.

In a spartan hillside room in India furnished only with a thin sleeping mat, one of the Myanmar Members of Parliament (MPs) spends much of his days attentively listening to Zoom conference calls and tapping away messages on his smartphone.

The short, soft-spoken man is among the handful of ousted Myanmar MPs who have fled across the border to India’s remote north-eastern region after the military coup and the lethal crackdown on dissent.

Two of the lawmakers and a Myanmar politician spoke to a Reuters reporter. They are involved with the Committee Representing the Pyidaungsu Hluttaw or CRPH, a body of ousted lawmakers that is attempting to re-establish the civilian government and displace the military.

The three said the group is supporting demonstrations, helping distribute funds to supporters and holding negotiations with multiple entities to quickly form a civilian administration nationwide. They asked not to be named for fear of reprisals against their families back home.

Most of the ousted lawmakers are from deposed leader Aung San Suu Kyi’s National League for Democracy (NLD) that overwhelmingly won a November 2020 election, which the military has annulled.

The coup has been met with a fierce pro-democracy movement and tens of thousands of people have taken to the streets across the country, despite the crackdown.

Security forces have killed over 700 people, and more than 3,000 have been detained, including more than 150 lawmakers and members of the former government. Mobile and wireless internet services have been shut down.

The fear of detention and inability to rebuild a civilian government without internet connectivity has driven some Myanmar lawmakers involved in the resistance to work from India, the two MPs elected to Myanmar’s Parliament said.

“There is no time,” one of them, who is from the country’s western Chin state, told Reuters. “People are dying in our country.”

A spokesman for Myanmar’s military did not answer calls seeking comment. The junta has accused the CRPH of treason. The group is working to set up a national unity government to challenge the military’s authority.

Since fleeing to India around two weeks ago, the lawmaker said he had been holding regular discussions with colleagues to set up a parallel administration in Chin state, under directions from the CRPH.

The process is complex, involving building consensus between elected representatives, political parties, ethnic armed groups, civil society bodies and civil disobedience movement leaders, the two lawmakers and the politician said.

The CRPH is also keen on opening communications with India, where at least 1,800 people from Myanmar are already sheltering. It will seek New Delhi’s blessings for the parallel government it is attempting to form, the politician said.

“We can’t rely on China, Thailand and other neighbouring countries,” he said. “The only country where refugees are being welcomed is India”.

India’s External Affairs Ministry did not immediately respond to questions from Reuters.

This week, NLD lawmakers from Myanmar’s northern Sagaing region held an online conference call, but only 26 out of 49 representatives dialled in, according to the second MP who attended the meeting from India.

“We don’t know where the rest are,” the federal lawmaker said. Two party officials were now trying to track down their missing colleagues.

Some of the fiercest resistance to the junta has come from Sagaing. In the last two months, around 2,000 families involved in the civil disobedience movement in one part of the region have been given financial assistance of around 17 million Kyat ($12,143), the lawmaker from Sagaing said.

The presence and activities of escapee Myanmar lawmakers could pose a diplomatic quandary to India, particularly given New Delhi’s close ties with the Myanmar military rulers.

But India’s position on the Myanmar crisis itself appears to have somewhat shifted in recent weeks. This has also been acknowledged by some CRPH representatives.

At an United Nations Security Council (UNSC) meeting on April 10, Indian diplomat K. Nagaraj Naidu said New Delhi is pushing for a return to democracy in Myanmar. “The first, and most immediate step, in this regard is the release of detained leaders,” Naidu said.

However, India is concerned around internal divisions within the CRPH that could hobble its functioning, a source with knowledge of New Delhi’s thinking said.

The politician involved with the CRPH said he is hopeful that India will engage with the group.

“If democracy wins in Myanmar, it is also a win for India,” he said.

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