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Rs 1.5 bn Lotus Tower, Customs Hq. land transactions yet to be finalised; COPE stresses need to streamline procedures

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By Shamindra Ferdinando

The Committee on Public Enterprises (COPE) has told the Sri Lanka Ports Authority and Sri Lanka Customs to regularize two land transactions worth over Rs. 1.5bn. COPE Chairman Prof. Charitha Herath has advised SLPA Chairman Dr. Prasantha Jayamanna and Director General Customs Maj. Gen. G.V. Ravipriya (retired) to take immediate steps to validate the agreements in respect of the Nelum Tower and Sri Lanka Customs headquarters.

The COPE took up the issue when the SLPA top management appeared before the parliamentary watchdog committee, recently. DG Customs participated in the proceedings in his capacity as a member of the Board of Directors of the SLPA.

Prof. Herath has stressed the importance and the responsibility on the part of all state enterprises and institutions concerned to rectify the shortcomings pertaining to these high value transactions.

Auditor General W.P.C. Wickramaratne has been present on the occasion. The proceedings revealed that in spite of the completion of the Customs complex at a staggering cost of Rs 4 bn in May 2012 those in authority hadn’t bothered to finalize the payment for the land. The COPE has been told the Customs haven’t paid Rs 947.5 mn for 2 acre land belonging to the SLPA utilized for the construction.

Dr. Jayamanna said that at the time the SLPA land had been handed over to the Customs all concerned parties believed the SLPA could swap it with a block of land belonging to the Customs. But, later, that land, too, had been identified as SLPA property, Dr. Jayamanna said. The disclosure made Prof. Herath to ask DG, Customs to formalize the matter in consultation with relevant authorities.

Prof. Herath asked the SLPA to either obtain money for 2 acre land estimated to worth Rs 604.5 mn from the UDA that handled the Nelum Tower project or finalise the transaction in a suitable way. Asked whether the SLPA preferred money or shares of the company managing Nelum Tower, Dr. Jayamanna said that they have discussed with the UDA the possibility of swapping D.R. Wijewardena Mawatha land where Nelum Tower was built with UDA land also estimated at Rs 600 mn at the Bloemendhal Road. When the COPE was told the UDA hadn’t decided on the swap, Prof. Herath asked the SLPA to finalise the transaction by perhaps obtaining money for their land.

Dr. Jayamanne has pointed out that in case they go ahead with the swap of D.R. Wijewardene Mawatha land with that of UDA’s at Bloemendhal Road, the UDA would have to make a payment, too, in line with the valuation of the land.



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Former first lady Shiranthi Rajapaksa arrested by CIABOC

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Former first lady Shiranthi Rajapaksa, wife of former President Mahinda Rajapaksa was  produced before the Hulftsdorp court, after  being  arrested by officers of the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) and produce

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U.S. Navy ship USS Tulsa arrives in Colombo for replenishment visit

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The U.S. Navy ship USS Tulsa (LCS 16) arrived at the Port of Colombo this morning, 7 October 2026 for replenishment purposes.

The visiting ship was welcomed by the Sri Lanka Navy in accordance with naval traditions.

The 127.7-metre-long platform is a Littoral Combat Ship commanded by Commander BM Wanier. Commissioned on 16 February 2019, USS Tulsa has since been in service with the US Navy.

The ship previously made a port call in Sri Lanka on 27 August 2025.

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Fuel crunch looms

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Govt. tells fuel distributors to maintain stocks to ensure uninterrupted supplies

by Saman Indrajith and Norman Palihawadane

The government had instructed private fuel distributors to maintain minimum stocks and ensure uninterrupted supplies to the market, Energy Minister Anura Karunathilaka told Parliament yesterday (06).

Karunathilaka said the Ministry of Energy Secretary had notified the relevant companies of the requirement, following a reduction in supplies by some private distributors, amid higher international fuel prices.

The Minister said private companies had informed the government that they were facing losses because international prices had risen while fuel was being sold, locally, at prevailing prices. As a result, some companies had reduced the volumes released to the market.

The reduced supplies had increased the burden on the Ceylon Petroleum Corporation (CPC), whose share of the diesel market had risen from about 54% to 82%, the Minister said.

“The CPC currently holds an 82% share of the market,” he said, adding that it had increased its supplies, compared with February, to compensate for the reduction by private distributors.

Karunathilaka said the government could not, under the existing agreements with private companies, specify the quantities they should supply to individual filling stations. However, it could require them to maintain minimum stocks in the country.

The Minister said the Energy Ministry had already instructed companies that had failed to maintain the required stocks to take steps to prevent supply disruptions.

The Minister attributed the queues reported at some filling stations to reduced supplies from private distributors, as well as normal variations in fuel distribution. He also said demand for CPC fuel had increased because private companies generally did not provide fuel to dealers on credit, while the CPC offered a three-day credit facility.

“We expect that, as the Ceylon Petroleum Corporation takes on this additional burden, the problem will ease to some extent by Wednesday or Thursday,” Karunathilaka said.

He said instructions had also been issued to increase supplies to CPC filling stations. A special discussion on the issue is scheduled for today (07), with officials of the Energy Ministry and CPC expected to participate,

along with President Anura Kumara Dissanayake.

Meanwhile, Petroleum Dealers’ Association officials have called for an early solution to the supply issue. Association Chairman D.V. Shantha Silva said queues had been reported at many filling stations, mainly those operated by private distributors.

He said the situation was not due to an overall shortage of fuel, but was linked to reduced orders by Lanka IOC, Sinopec and R.M. Parks amid concerns over losses incurred on fuel sales.

The Ceylon Petroleum Private Tanker Owners Association has urged motorists to refrain from panic buying, saying there was no nationwide disruption to fuel supplies.

The government earlier increased fuel prices and introduced a per-litre diesel subsidy following concerns raised by distributors over rising international prices.

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