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Reduction of fuel prices, no-faith motion so far not discussed at Cabinet or SLPP group level – Udaya

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By Shamindra Ferdinando

Energy Minister Udaya Gammanpila says the government hadn’t discussed the possibility of reducing fuel prices though there was a spate of statements regarding downward revision.

Pivithuru Hela Urumaya leader and attorney-at-law Gammanpila said so when The Island asked him whether the government had deliberated the issue at hand at the cabinet and the Cost of Living Committee following the increase in fuel prices on June 11. The PHU represented in Parliament by one lawmaker is a constituent of the ruling SLPP, the largest party in the Parliament with 116 seats. The SLPP parliamentary group consists of 145 members with the SLFP being the second largest group with 14-members.

Responding to another query, Colombo District lawmaker said that the cabinet and the SLPP Parliamentary group hadn’t discussed how to face the no-faith motion moved by the Samagi Jana Balavegaya (SJB) against him for the fuel price hike.

Party leaders on July 5 decided to debate and vote on the no faith motion on July 19 and 20th. Speaker Mahinda Yapa Abeywardena presided the meeting.

Minister Gammanpila said that the Speaker Abeywardena should have rejected the SJB’s no-confidence motion on technical grounds.

Minister Gammanpila said that the Cost of Living Committee on June 09 decided to increase the fuel prices due to extremely grave financial situation that undermined the entire banking system. The PHU leader said that he was among several Ministers and State Ministers present on the occasion. Premier Mahinda Rajapaksa had been among them.

On the following day, Prime Minister Mahinda Rajapaksa, in his capacity as the Finance Minister, in writing authorised the hike in fuel prices, MP Gammanpila said, adding that whatever various interested parties propagated the economic situation remained dicey.

Minister Gammanpila pointed out that the Presidential Media Division (PMD) in a statement dated June 13 set the record straight. The President’s Office admitted the financial crisis that had been caused by the Ceylon Petroleum Corporation (CPC) and the Ceylon Electricity Board (CEB) being in debt to the Bank of Ceylon and the People’s Bank to the tune of Rs 737 bn.

Lawmaker Gammanpila said that contrary to numerous reports, claims and speculation, they hadn’t worked out a plan to bring down fuel prices or introduce a relief package so far.

Minister Gammanpila said that he was not worried at all about the SJB’s no-faith motion. The minister explained that in spite of the SJB not having the numbers in parliament, the no-faith motion had been directed at the government as part of its overall political strategy to cause a split.

“Those who had publicly criticised me for announcing the fuel price hike are aware of the circumstances leading to the June 11 announcement. Both the President and the Prime Minister endorsed the decision,” Minister Gammanpila said, adding that problems couldn’t be addressed through rhetoric. Whatever, various spokespersons say, at the end of the day, the SLPP would have to defeat the SJB no-faith motion by the widest possible margin.

The lawyer explained that the Cost of Living Committee decided on the fuel price hike in the wake of Central Bank issuing a dire warning on the national economy. The Minister said that the Central Bank warned the Treasury of dire consequences unless fuel prices were revised forthwith.

The Energy Minister said that Treasury Secretary S.R. Attygalle, too, acknowledged the challenges ahead when SJB lawmaker Dr. Harsha de Silva recently sought the Treasury Chief’s opinion on the current financial situation. The SJB has raised the issue at a routine meeting of the Committee on Public Enterprises (COPE) chaired by Prof. Charitha Herath.

He pointed out the SJB’s contradictory stand on the economic situation. On one hand, the SJB demands the government bring down the price of fuel and provide relief to the masses. Referring to high profile SJB’s vehicle protest outside the parliament to highlight their demand to reduce fuel prices, Minister Gammanpila said the same lot called for IMF intervention to save the economy.

Minister Gammanpila said that he didn’t play politics with the issue but sought a common ground where all could work together to overcome challenges. The minister recalled the difficulties faced by him recently when he sought the foreign exchange required to procure fuel. President Gotabaya Rajapaksa, in his address to the nation late last month acknowledged the daunting task in meeting annual loan payments amounting to USD 4 bn.

A group of eight lawmakers, including two ministers, Wimal Weerawansa and Vasudeva Nanayakkara, recently declared that they would soon propose a relief package to those who had been badly affected by the June 11 fuel price hike. However, the group hadn’t taken it up at cabinet or parliamentary group level and such a mechanism remained unfeasible due to the current situation, The Island learns.

Early last month, Minister Gammanpila declared that the country lacked the wherewithal to build a second refinery at Sapugaskanda and external investments were required to get the project off the ground. Minister Gammanpila pointed out that Minister Bandula Gunawardena and State Minister Dr. Nalaka Godahewa, too, recently explained how difficult the situation was on the economic front.



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President proposes; Speaker disposes

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Dr. Wickramaratne

AKD’s request to Harsha:

Speaker Dr. Jagath Wickramaratne has frustrated an attempt by Chairman of the Committee on Public Finance (CoPF) Dr. Harsha de Silva, MP, to intervene to settle the continuing dispute over the appointment of a new Auditor General.

Dr. De Silva yesterday told The Island he had recently written to all members of the Constitutional Council (CC) drawing their attention to the urgent need to address the issue at hand. The AG’s position remains vacant since 08 Dec, 2025. AG W.P.C. Wickremanayake retired in April and since then there have been a couple of Acting appointments. The CC has declined to endorse any of President Dissanayake’s nominees as the AG.

Asked whether he had taken up the issue with the CC following President Anura Kumara Dissanayake soliciting his support in this regard, MP de Silva said that he had written to CC members as agreed with the President.

The former UNPer and one-time State Minister said: “I did so, giving due respect to CC’s independence, underscoring the critical importance in them working with the President to resolve the crisis. I alluded to the need to have transparency in public financial management during this post-cyclone period where large amounts of funds are being transacted on multiple fronts, both domestic and foreign.”

Responding to another query, Dr. De Silva emphasised that he had clarified that the President must send the names of qualified and experienced persons to the CC for consideration. “However, these letters were returned to me by the Speaker, without being delivered to members of the CC. The Speaker didn’t give an explanation. Thus, except for members who are MPs who had been copied via email by my committee office, others never received my letter of concern. Even though I questioned, in Parliament, the basis of his refusal to forward my communication to the members of the CC of which he is Chairman, no answer was given.”

The CC consists of Dr. Jagath Wickramaratne, Speaker and Chairman of the 10-member body. Dr. Harini Amarasuriya, Prime Minister, Sajith Premadasa, Leader of the Opposition, Bimal Rathnayake, Aboobucker Athambawa, Ajith P. Perera, Sivagnanam Shritharan, and three civil society members namely Dr. Prathap Ramanujam, Dr. Dilkushi Anula Wijesundere and Dr. Dinesha Samararatne. None of the President’s nominees could obtain CC’s approval as all of them were rejected by the CC.

The present CC was introduced by the 21st Amendment to the Constitution which was endorsed on 31 October 2022.

Both the Bar Association of Sri Lanka (BASL) and the Transparency International Sri Lanka Chapter recently requested President Dissanayake, in writing, to propose a suitable person to the post of AG. The BASL, in another statement that dealt with the forthcoming vacancies in the CC due to three civil society members completing their terms, declared its concern over possible attempts by the President and the NPP government to fill the vacancies with rubber stamps.

The three civil society members will complete their terms on 18 January. In terms of Article 41E of the Constitution, the CC meets at least twice every month, and may meet as often as may be necessary. The Chairman presides at all meetings of the CC and in the absence of the Chairman, the Prime Minister, and in the absence of the Prime Minister, the Leader of the Opposition presides at the meetings of the CC.

Asked whether the CC could be disrupted due to the end of civil society members’ terms, an authoritative official pointed out that in case new appointments were not made the current members could continue.

The Parliament has not so far called for applications to fill the forthcoming vacancies.

by Shamindra Ferdinando ✍️

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Sri Lanka loses Rs.7.5 bn due to coal tender irregularities: FSP

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Pubudu

The NPP government’s coal procurement process has once again come under scrutiny following allegations by the Frontline Socialist Party (FSP) that substandard coal has been imported for power generation and that tender procedures were manipulated to favour a specific supplier.

Addressing the media after a party meeting in Maharagama on Saturday, FSP Education Secretary Pubudu Jagoda said a test report issued by the government laboratory at the Lakvijaya Power Plant had confirmed that the latest coal shipment unloaded in Sri Lanka did not meet the required quality standards. According to the report, the coal’s calorific value ranged between 5,600 and 5,800 kilocalories per kilo, below the 5,900–6,200 kCal/kg range specified in tender requirements.

Jagoda warned that lower calorific value coal would require higher volumes to generate the same amount of electricity, increasing costs significantly. Preliminary estimates, he said, indicated an additional financial burden of around Rs. 7,500 million, which might eventually be passed on to consumers through higher electricity tariffs.

The FSP also accused the government of tailoring procurement rules to benefit the Indian supplier, which has deposited bonds for long-term coal supply for the upcoming season. Jagoda alleged that tender conditions had been altered to accommodate the company, pointing to changes in coal reserve requirements. Under the 2021 Sri Lanka Coal Registration Document, suppliers were required to maintain a minimum reserve of one million metric tonnes with a gross calorific value of 5,900 kCal/kg. This threshold, he said, had been reduced to 100,000 metric tonnes in the 2025 document which is a 90% reduction raising serious concerns.

He further cited past allegations against the Indian company, including findings in a 2016 Auditor General’s report that the company violated procurement guidelines regarding a rice supply contract with Sathosa in 2014. Jagoda also referred to legal issues involving individuals linked to the company, and the suspension of a representative by the International Cricket Council in 2019 over match-fixing allegations.

Beyond company-specific concerns, Jagoda criticised what he described as systemic manipulation of the coal tender process. He questioned why the coal tender, typically called in February or March, was delayed until July, despite electricity being declared an essential service. He also alleged that the tender submission period had been progressively shortened from the internationally accepted six weeks to five weeks, and now reportedly to three giving an unfair advantage to suppliers with existing stock.

The Ministry of Energy has recently issued an amended tender to procure 4.5 million metric tonnes of coal for the Lanka Coal Company for the 2025/26 and 2026/27 periods, following the cancellation of an earlier tender.

Jagoda warned that delays and irregularities could lead to coal shortages, higher spot market purchases, increased electricity costs, and even power cuts if hydropower generation falls short. He called for urgent investigations into the procurement process, insisting that the burden of alleged mismanagement and corruption must not be transferred to the public.

by Chaminda Silva ✍️

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CID summons SJB MP for criticising education reforms

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Prasad

SJB Gampaha District MP Prasad Siriwardhana has been summoned to the CID today (12) for questioning in connection with a statement he made on a private television channel regarding education reforms.

He was earlier asked to report to the CID on 10 January to make a statement. However, as Siriwardhana had notified the authorities that he was unable to appear on that day, he was subsequently asked to come today.

Siriwardhana is one of the critics of the shortcomings of the education reforms introduced by the NPP government.

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