News
PUCSL Chairman insists fuel can be sold a lot cheaper
By Saman Indrajith
Chairman of the Public Utilities Commission of Sri Lanka (PUCSL), Janaka Ratnayake has told the Committee on Public Enterprises (COPE) that petrol and diesel can be priced at approximately Rs. 250.
He made this statement when the COPE summoned PUCSL officials to examine the Auditor General’s report for PUCSL for the years 2018 and 2019 and current performance of the Commission.
During the meeting, Rathnayake mentioned that when he checked the import prices of petroleum and the taxes levied by the government, he had realised that both petrol and diesel could be sold at cheaper rates.
Rathnayake pointed out that petrol and diesel could be sold at Rs. 200 less than the current price. He also said that the government had collected a tax of Rs. 280 on one liter of diesel imported on 01 July.
The PUCSL Chairman said it was his personal opinion and did not reflect the view of the PUCSL.
The COPE members questioned Ratnayake on his qualifications for becoming the chairman of the commission. Ratnayake said he had obtained a Special Degree in Public Administration from the University of Sri Jayewardenepura and a Postgraduate degree in Business Administration (MBA) from the University of Colombo. He said that he had also studied at Harvard University. As for his political qualifications, he stated that since 2005, he had been a supporter of the Rajapaksas.
COPE Chairman Prof. Charitha Herath said the statement made by PUCSL Chairman regarding the fuel price would be discussed at length, and the officials from the Ministry of Power and Energy and the PUCSL Chairman would be summoned before the COPE in the future to further examine it, Prof. Herath said.
The COPE also looked at the decision taken by the commission to rent a Benz car, manufactured in the year 2005, without fuel or driver from a company called General Business (Pvt.) Ltd without entering into any agreement for one year from 07 December 2021.
The annual rent for the vehicle was Rs. 4.5 million and on 31 May 2022, Rs. 2.18 million had been paid to the aforesaid company.
The COPE members pointed out that the documents on hiring of this vehicle had not been submitted for audit, and they included a recommendation for hiring a 15-year-old vehicle, as well as the irregularities in calling for bids for the hiring of the vehicle, and the issues of transparency in the payment of rent for it Accordingly, the COPE Chairman recommended that an investigation be conducted and a full report submitted.
The COPE also informed that the Organisation Structure and Salary Structure of the PUCSL should be developed on the recommendation of the National Salary and Cadre Commission and the approval of the Department of Management Services. The COPE recommended the Finance Minister to submit an amendment to the Cabinet for approval.
The COPE pointed out that Rs. 45.8 million had been paid to the staff of the institution as 11 types of allowances. The committee also said that Rs. 86.8 million, of the total operational cost (49% of the total amount) had been spent on public awareness programs.
The COPE also discussed the electricity generation plan for the years 2018-2037. The officials present mentioned that data on another new generation plan had been submitted in 2021 and it had not been approved as the appropriate requirements were not met. The Committee mentioned that when the political authorities changed, problems arose due to the change of those plans.
Under the Electricity (Distribution) Performance Standards Orders mentioned in a special gazette notice issued in 2016, the commission had been assigned to prepare and enforce performance rules within 36 months, but that task had not been completed, the COPE said.
The members of the committee were Minister Mahinda Amaraweera, Mahindananda Aluthgamage, Indika Anuruddha, (Dr.) Harsha de Silva, (Dr.) Nalaka Godaheva, Jayantha Samaraweera, Premnath C. Dolawatta and Madura Withanage were present. Also, several MPs who are not members of the committee also participated with the permission of the chairman of the committee.
By Shamindra Ferdinando
Iran has sought the Indian intervention, at the highest level, to provide lifesaving support to the crews of empty Iranian vessels stranded just outside Sri Lanka’s 12-nautical mile territorial waters off Galle.
Sources familiar with the issue said that Iran had brought the developing situation to the attention of New Delhi as the crews of almost 20 vessels, included Indian nationals. Sources stressed that the group of vessels that unloaded crude oil a couple of months back were now stranded within Sri Lanka’s Exclusive Economic Zone (EEZ).
The US Navy torpedoed an unarmed Iran frigate, returning from India, on 04 March, 2026, about 19 nautical miles off the Galle coast. The unprovoked attack killed nearly 100 Iranians.
The Iranian Embassy in Colombo has inquired from the Indian High Commission of their response to the situation, sources said. The US has issued a global warning against providing food, water, medicine and other services to the Iranian vessels. The outcome of Iran-India talks on the issue at hand was not known, though sources asserted India may not throw its weight behind Iranian efforts to address the issue.
Responding to The Island queries, sources said both Sri Lanka and India were in a dilemma due to the US warning. India couldn’t ignore the plight of the Indian crew members and the Iranian vessels in its backyard.
The Sri Lankan government remains tight-lipped about the vessels stranded in its EEZ. Our efforts to elicit a response from relevant authorities were in vain. In addition to Indians, there are Bangladeshis among the crew members. Iran has explicitly stated the responsibilities of the countries concerned to provide assistance in terms of international law.
The Iranian position was articulated by its Ambassador to Sri Lanka, Dr.Alireza Delkhosh, recently. In a special statement, Ambassador Delkhosh emphasised that in terms of the Convention on the Law of the Sea (Article 98) as well as SOLAS and SAR
Conventions, Sri Lanka couldn’t refrain from providing the needs of the Iranian vessels stranded in its EEZ.
SLMC leader Rauff Hakeem lambasted the NPP government in Parliament for failing to provide assistance to the Iranian ships. The former Minister alleged that the government was simply carrying out dictates of the US. He strongly criticised the way Foreign Minister Vijitha Herath was handling the issue.
MP Namal Rajapaksa, who is in remand custody over the controversial Airbus deal, was further remanded until October 27 by the Colombo Magistrate’s Court yesterday (13).
Colombo Chief Magistrate Asanga S. Bodaragama made the order after considering submissions by officers of the Commission to Investigate Allegations of Bribery or Corruption and lawyers representing Rajapaksa.
Sri Lanka’s economy is expected to sustain its recovery over the next two years, although growth is projected to moderate amid mounting global uncertainties, according to the International Monetary Fund’s (IMF) latest World Economic Outlook.
In its World Economic Outlook 2026: Resilience Under Strain, Urgent Choices, the IMF projects Sri Lanka’s economy to expand by 4% in 2026, slowing to 3.7% in 2027, following estimated growth of 5% in 2025.
Inflation, meanwhile, is forecast to rise to 5.3% in 2026 and 5.4% in 2027, reversing the average deflation rate of 0.5% recorded in 2025.
Unemployment is expected to remain steady at 3.9% throughout the forecast period.
The projections come amid growing pressure on the global economy from the ongoing conflict in the Middle East, elevated energy prices, geopolitical tensions and trade disruptions.
Sri Lanka’s external position is also expected to weaken, with the current account balance projected to shift from a surplus of 1.6% of gross domestic product (GDP) in 2025 to deficits of 0.5% in 2026 and 0.3% in 2027.
The IMF’s outlook points to continued economic expansion in Sri Lanka, but with slower growth, rising inflation and a narrowing external surplus giving way to current account deficits over the forecast period.
Heavy showers above 100 mm are likely at some places in the Western, Sabaragamuwa, Southern, Central, and North-western provinces and in Anuradhapura district.
Sri Lanka, India caught in US-Iran ship crisis
Namal further remanded
IMF projects Lankan economic growth to moderate amidst mounting global uncertainties
Major Gen Pushpakumara assumes command of 56 Infantry Division
Dickwella axed, Bandara earns maiden Test call up
‘Dates have the highest sugar content to fight Coronavirus’
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