News

SJB questions Kanchana over suspension of fuel pricing formula, USD 3 bn debt to suppliers

Published

3 years ago

2023/01/5

Sahan Weerasooriya

‘Petroleum, water services, too, should be under electricity regulator’

By Shamindra Ferdinando

The Convenor of the combined trade union front, in fuel, ports and power sectors of the Samagi Jana Balavegaya (SJB), Ananda Palitha, yesterday (04) alleged that consumers had been deprived of the benefit of the continuing drop in world crude oil prices as the government had suspended the cost-reflective fuel pricing formula, introduced in late May last year.

Having declared that the new pricing formula would be adjusted bi-monthly, or monthly, the government had conveniently discarded the mechanism, Ananda Palitha alleged.

Power and Energy Minister, Kanchana Wijesekera, owed the public an explanation why the pricing formula had been suspended for about six months.

Responding to The Island queries, the former CPC/Ceylon Petroleum Storage Terminals Ltd. (CPSTL) employee claimed that a litre of petrol, both 92 and 95, as well as diesel, could be sold much less than the current prices charged from consumers.

The failure on the part of the Power and Energy Ministry to implement the pricing formula had paved the way for the Indian Oil Corporation’s subsidiary in Sri Lanka, Lanka IOC, to earn massive profits at the expense of the bankrupt country.

Lanka IOC, incorporated in 2003, to carry out retail marketing and bulk supply to industrial consumers owns one-third of shares in CPSTL, Palitha said.

The trade union activist said that a joint parliamentary group should inquire into what was going on in the petroleum sector as successive ministers, given the responsibility of managing the vital sector, caused irreparable harm by pursuing agendas inimical to the national economy. The incumbent Minister Wijesekera is not an exception, the trade union leader added.

Had petroleum and water utilities, too, been brought under the Public Utilities Commission, established in 2002, as was originally envisaged, the issues at hand could have been handled in a different way, the SJB activist said.

In spite of the Commission being designated the regulator for petroleum and water utilities, successive governments conveniently refrained from bringing them under the Commission by way of Parliamentary Acts, Ananda Palitha said.

Ananda Palitha pointed out how the Chairman of the Commission, Janaka Ratnayaka, in spite of quite heavy political pressure, stood by the public in the face of relentless pressure exerted by the government, hell-bent on going ahead with massive tariff hikes.

The trade unionist said that all political parties, represented in Parliament, should be held accountable for the developing crisis. According to Ananda Palitha, the non-inclusion of petroleum sector and water services industries was deliberate and meant to prevent the regulator from doing his job, in the interest of the country, consumer and fair play.

Referring to the continuing crisis at the Sapugaskanda oil refinery, Ananda Palitha said that those who disrupted the supply of crude oil, delivered heavy blows to the CEB. “By disrupting operations, they thwarted the supply of naphtha, diesel and furnace oil. Everyone knows who benefits from such disruptions,” Ananda Palitha said.

Commenting on President Ranil Wickremesinghe demanding explanations from the CPC and SriLankan Airlines over the payment of bonuses, at the end of 2022, Ananda Palitha asked how Wickremesinghe, who held the Finance portfolio, didn’t know what was going on.

The Wickremesinghe-Rajapaksa government should be ashamed, if it really didn’t know until the workers of those institutions were paid bonuses. Referring to a media statement, issued by the Presidential Media Division (PMD), Tuesday evening, in this regard, Ananda Palitha questioned the status of CPSTL, jointly run by the CPC and Lanka IOC.

Ananda Palitha said that the CPC owed suppliers as much as USD 3 bn whereas the government was down on its knees before the Washington-based International Monetary Fund (IMF) for USD 2.9 bn spread over a period of four years.

Of this staggering amount, the CPC owed USD 700 mn to India and this needed to be settled in March-April this year, Ananda Palitha said, adding that the country owed a further USD 800 mn to other suppliers. There was also a long outstanding payment to Iran, believed to be USD 425 mn.

The political activist alleged that USD 45 mn paid for the procurement of crude oil, under controversial circumstances, was missing.

Meanwhile, the government was in the process of clearing the way for the privatization of both the CEB and the State Banks, he alleged.

All News Advertisement

Related Topics:Ananda Palitha Featured Kanchana Wijesekara

Up Next

SC deems SJB MP’s move unconstitutional

Don't Miss

SL HC in New Delhi felicitates long-serving staff members as it celebrates Diwali

Click to comment

Latest News

Maldivian President plants a sapling to mark 60 years of Sri Lanka–Maldives Diplomatic Relations

Published

3 hours ago

2026/05/4

Priyan

President of the Maldives, Dr Mohamed Muizzu, who is on a State Visit to Sri Lanka at the invitation of President Anura Kumara Dissanayake, planted a sapling this afternoon (04) at Viharamahadevi Park in Colombo to commemorate 60 years of diplomatic relations between Sri Lanka and the Maldives.

Upon arrival at the Viharamahadevi Park in Colombo, President Dr Mohamed Muizzu was warmly received by President Anura Kumara Dissanayake. Children lined both sides of the pathway holding the national flags of the two countries and paid tribute to the visiting Maldivian President.

Among those present at the occasion were Deputy Speaker Rizvi Salih, Minister of Foreign Affairs, Foreign Employment and Tourism, Vijitha Herath and the Mayor of Colombo, Vraie Cally Balthazaar, along with several other dignitaries.

[President’s Media Division (PMD)]

News

Sri Lanka and Maldives strengthen ties with productive bilateral talks

Published

3 hours ago

2026/05/4

Priyan

Following the bilateral meeting between President Anura Kumara Dissanayake and President Dr. Mohamed Muizzu of the Maldives, who is currently on a State visit to Sri Lanka, official-level bilateral discussions between the delegations of the two countries were held this morning (04) at the Presidential Secretariat.

The discussions commenced after the formal welcome ceremony accorded to President Dr. Mohamed Muizzu earlier this morning within the Presidential Secretariat premises.

Extending a warm welcome to the Maldivian President, President Anura Kumara Dissanayake expressed his appreciation for accepting the invitation to visit Sri Lanka.

President Dissanayake noted that President Muizzu’s visit, taking place as the two nations mark 61 years of diplomatic relations, reflects the strong partnership, mutual trust and longstanding friendship between Sri Lanka and the Maldives. The President further expressed confidence that the visit would mark a new phase in bilateral relations.

The two leaders engaged in extensive discussions on ways to further expand and diversify multifaceted cooperation, including economic, cultural and social ties, in a manner that delivers mutual benefits to the people of both countries.

Key areas of focus included tourism promotion, educational cooperation, youth and sports development, challenges faced by both nations in the fisheries sector within the Indian Ocean region, education and vocational training, as well as defence training and broader security cooperation.

Representing the Government of Sri Lanka were Minister of Foreign Affairs, Foreign Employment and Tourism, Vijitha Herath, Minister of Labour and Deputy Minister of Finance and Planning, Anil Jayantha Fernando, Minister of Science and Technology, Krishantha Abeysena; Deputy Speaker Rizvie Salih, Secretary to the President, Dr. Nandika Sanath Kumanayake, Secretary to the Ministry of Defence, Air Vice Marshal Sampath Thuyacontha (Retired), Additional Secretary to the Ministry of Foreign Affairs (covering Europe, North America, East Asia and Oceania, Southeast Asia and Central Asia, South Asia, the Middle East and Legal Affairs) M. R. K. Lenagala, Sri Lanka’s High Commissioner to the Maldives, Mohamed Rizvi Hassan and Director (South Asia and SAARC) of the Ministry of Foreign Affairs, Foreign Employment and Tourism, Mahesha Jayawardena.

The Maldivian delegation included Minister of Foreign Affairs Iruthisham Adam, Minister of Economic Development and Trade, Mohamed Saeed, Minister of Fisheries, Agriculture and Marine Resources, Ahmed Shiyam, Minister of Homeland Security and Technology, Ali Ihusaan, Chief of Staff to the President, Abdulla Fayaz, Principal Secretary to the President on Foreign Relations, Mohamed Naseer; Chief Government Spokesperson, Mohamed Hussain Shareef, High Commissioner of the Maldives to Sri Lanka,Masood Imad; Minister of State for Foreign Affairs and Chief of Protocol , Mohamed Shahudy, Deputy Minister at the President’s Office, Mr Mohamed Hassaan and Minister Counsellor at the Maldives High Commission in Sri Lanka, Mr. Ismail Mamdhooh.

[President’s Media Division (PMD)]

News

Maldives and Sri Lanka exchange seven MOUs

Published

3 hours ago

2026/05/4

Priyan

Seven Memoranda of Understanding (MoUs), signed across several sectors between the Maldives and Sri Lanka, were formally exchanged this morning (04) at the Presidential Secretariat in the presence of President Anura Kumara Dissanayake and President Dr. Mohamed Muizzu of the Maldives.

Marking a new chapter in Maldives–Sri Lanka relations, the MoUs cover cooperation in the fields of health, sports, tourism, education and defence.

Accordingly:

1. MoU on Tourism Cooperation between the Democratic Socialist Republic of Sri Lanka and the Republic of Maldives was exchanged by Maldives Minister of Foreign Affairs, Ms Iruthisham Adam and Sri Lanka’s Minister of Foreign Affairs, Foreign Employment and Tourism, Vijitha Herath.

2. MoU on Archiving Cooperation between the Department of National Archives of Sri Lanka and the National Archives of the Maldives was exchanged by Maldives Minister of Foreign Affairs, Ms Iruthisham Adam and Sri Lanka’s Minister of Foreign Affairs, Foreign Employment and Tourism, Vijitha Herath.

3. MoU on Training and Professional Development of Teachers and School Leaders between the Ministry of Education, Higher Education and Skills Development of the Maldives and the Ministry of Education, Higher Education and Vocational Education of Sri Lanka was exchanged by Maldives Minister of Foreign Affairs, Ms Iruthisham Adam and Sri Lanka’s Minister of Foreign Affairs, Foreign Employment and Tourism, Vijitha Herath.

4. MoU on Sports and Youth Development Cooperation between the Republic of Maldives and the Democratic Socialist Republic of Sri Lanka was exchanged by Maldives Minister of Foreign Affairs, Ms Iruthisham Adam and Sri Lanka’s Minister of Youth Affairs and Sports, Sunil Kumara Gamage.

5. MoU on Defence Cooperation between the National Counter Terrorism Centre of the Maldives and the Ministry of Defence of Sri Lanka was exchanged by the Maldives High Commissioner to Sri Lanka, Masood Imad, and the Secretary to the Ministry of Defence, Air Vice Marshal Sampath Thuyacontha (Retired).

6. MoU between the Ministry of Defence and National Service of the Maldives and General Sir John Kotelawala Defence University of Sri Lanka was exchanged by the Maldives High Commissioner to Sri Lanka, Masood Imad and the Vice Chancellor of General Sir John Kotelawala Defence University, Rear Admiral Dammika Kumara.

7. MoU on Academic Cooperation between the University of Colombo of Sri Lanka and the Ministry of Health, Family and Welfare of the Maldives was exchanged by Maldives High Commissioner to Sri Lanka, Masood Imad and the Vice Chancellor of the University of Colombo, Professor Indika Mahesh Karunathilake.

The state visit of President Dr Mohamed Muizzu, undertaken at the invitation of President Anura Kumara Dissanayake, aims to further strengthen economic, cultural and social ties between the two countries, while enhancing their multifaceted partnership.

Cabinet Ministers, government officials and members of the Maldivian delegation, representing both Sri Lanka and the Maldives, were present at the occasion.

[President’s Media Division]