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SJB unionist: IOC and Sinopec benefit from special levy on fuel to recover CPC losses

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Ananda Palitha

By Shamindra Ferdinando

Even after imposing 18 percent Value Added Tax (VAT) on fuel with effect from January 1, the government continued to charge Rs 50 on a litre of both petrol and diesel purportedly to recover losses incurred by the highly corrupt state owned Ceylon Petroleum Corporation (CPC) over the years, Samagi Jana Balawegaya trade union leader Ananda Palitha told The Island yesterday (01).

The CPC owed the public an explanation why those who had been struggling to make ends meet were forced to pay for losses caused by waste, corruption, irregularities and mismanagement at all levels at the government managed entity, the former UNP activist said.

According to Ananda Palitha, the government introduced Rs 50 charge on each litre of petrol or diesel sold with effect from June 01, 2023 due to accumulated government-guaranteed debt of nearly USD 3 bn owed by the CPC to the Bank of Ceylon and People’s Bank transferred to the Treasury in line with a Cabinet decision.

Palitha pointed out that two private enterprises, namely Lanka Indian Oil Company (LIOC) and Chinese giant Sinopec, had been the main beneficiaries of the controversial levy.

The trade unionist took up this issue in the wake of the new pricing formula announced at midnight on January 1.

The CPC and LIOC increased the price of a litre of petrol 92 by Rs 20 to Rs 366 whereas Sinopec priced the litre at Rs 363. The CPC and LIOC increased the price of litre of auto diesel by Rs 29 to Rs 358 while Sinopec priced the litre at Rs 355. The CPC, LIOC and Sinopec priced petrol 95 and super diesel at Rs 464 and Rs 475, respectively, having increased the price of litre by Rs 38 and Rs 41. A litre of kerosene has been reduced by Rs 11 to be priced at Rs 236.

Contrary to various reports regarding the new pricing formula, the government imposed 18 percent VAT after having abolished 7.5 percent Port and Airport Development Levy aka PAL but retained the unprecedented Rs 50 charge on a litre of diesel and petrol.

Ananda Palitha alleged that the Cabinet approved original plan to levy 1% tax on monthly sales of new entrants to the domestic fuel market, namely Chinese oil giant Sinopec, US-based R.M. Parks and United Petroleum of Australia was reversed and a special charge of Rs. 50 imposed on hapless consumers. The US and Australia-based firms are yet to launch operations here.

One percent tax was to be utilized to settle USD 3 billion loans taken by the CPC but following representations made by Sinopec, the government abolished 1% tax on their sales, Ananda Palitha said, urging the Opposition to examine the issue at hand without further delay.

Responding to another query, the political activist found fault with the Parliament for not looking into the pricing formula, regardless of the media relentlessly taking up the issue. The Opposition, too, had been largely silent while the government allowed Indian and Chinese state companies to make a killing, the SJB trade union leader alleged. “We are contemplating lodging a complaint with the Commission to Investigate Allegations of Bribery or Corruption. Can a bankrupt country allow foreign companies to make such huge profits at the expense of the public?” Ananda Palitha asked.

The government repeatedly assured that the entry of foreign players would stabilize the local market and ensure uninterrupted supply, Ananda Palitha said. “We were told of competitive pricing formulas and quality products at affordable prices. But, the foreign players are now making unconscionable profits with the blessings of the government,” the activist said.



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President Commissions Offshore Patrol Vessel ‘Samudra Vijaya’ into Sri Lanka Navy

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The commissioning ceremony of the deep-sea patrol vessel as Samudravijaya, gifted to the Sri Lanka Navy by the United States Coast Guard to enhance the Navy’s operational capabilities, was held under the patronage of Commander-in-Chief of the Armed Forces, President Anura Kumara Dissanayake, on Thursday afternoon (04) at the Eastern Terminal premises of the Port of Colombo.

The vessel was officially handed over to Sri Lanka by the United States Coast Guard on 2 December 2025. Following modifications to meet the operational requirements of the Sri Lanka Navy, the vessel commenced its voyage to Colombo on 20 February 2026 from the United States Coast Guard Yard in Baltimore, Maryland.

The induction of the vessel marks a significant step towards further strengthening the operational capabilities of the Sri Lanka Navy and enhancing the country’s maritime and national security. The vessel is expected to make an important contribution to maritime surveillance, search and rescue operations, protection of fisheries resources, environmental monitoring and the enforcement of international maritime laws and conventions. In particular, it will serve as a vital asset in combating narcotics trafficking and other transnational maritime crimes, which remain major challenges for both Sri Lanka and the wider region.

During the ceremony, President Dissanayake presented the official commissioning warrant to the vessel’s Commanding Officer, Captain Gayan Wickramasuriya. The President subsequently unveiled the vessel’s name board and official insignia before undertaking an inspection tour of the ship. The Commander of the Navy briefed those present on the vessel’s operational readiness, systems and capabilities.

President Dissanayake also signed the vessel’s Distinguished Visitors’ Book and was presented with a commemorative plaque featuring a replica of the vessel.

Among those present were Minister of Ports and Civil Aviation Anura Karunatilaka. Deputy Minister of Defence, Major General Aruna Jayasekara (Retd.), Secretary to the Ministry of Defence, Air Vice Marshal Sampath Thuyacontha (Retd.), Admiral of the Fleet Wasantha Karannagoda, Commander of the Army, Lieutenant General Lasantha Rodrigo, Commander of the Air Force, Air Vice Marshal Vasu Bandu Edirisinghe. Commander of the Navy, Vice Admiral Kanchana Banagoda, Inspector General of Police, Attorney-at-Law Priyantha Weerasooriya, Charge d’affaires to the U.S. Embassy Ms. Jayne Howell, Senior Defence Official and Defence Attache with Spouse Lieutenant Colonel Matthew House, representatives of the Embassy and senior officers of the Sri Lanka Navy.

(PMD)

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Elders’ home devastated by fire was a ‘house of horror’: Witnesses

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Death toll rises to 12: Director remanded

Some residents were allegedly chained

Police have come under public pressure to investigate allegations of inhumane treatmenf the residents at an elders’ home in Batagoda, which was also reportedly used as a care centre for persons with special needs, following a devastating fire that has so far claimed 12 lives.

Eyewitnesses who were among the first responders told the media that several residents had been chained inside rooms at the Senehase Kedella Elders’ Home when the fire broke out on Wednesday. They claimed that rescue efforts were hindered as iron chains could not be removed, and that some residents died while being restrained.

Authorities have not yet verified these claims, and Police said investigations are continuing.

Police spokesman ASP F.U. Wootler, contacted for comment, said there were rumours to that effect, but the Police were not in a position to verify the claims until a report from the Government Analyst was received. He said eight survivors with burn injuries were being treated in hospital.

Meanwhile, the Director of the facility had been arrested and was due to be produced before the Horana Magistrate’s Court, Police said adding that he was remanded till June 11.

The death toll from the fire has risen to 12 as of Thursday morning following the recovery of additional charred remains during ongoing forensic examinations at the site. Six others sustained serious injuries and are being treated at the Horana Base Hospital.

Police said 72 residents were inside the facility at the time of the blaze. Of them, 10 died inside the building, seven were injured and hospitalised, while 51 were rescued and relocated.

Survivors were initially housed at Batagoda Junior School before being transferred with Army assistance to another branch of the same care network in Galpatha.

A magisterial inquiry was conducted on Thursday morning. Horana Magistrate Lakmini Vidanagamage visited the scene. The burnt remains were examined and removed under judicial supervision.

Separately, allegations have emerged that residents were required to pay an admission fee of Rs. 75,000, along with a monthly charge of Rs. 35,000 to the centre. Police have not commented on these claims.

The director was taken to the scene as part of ongoing investigations, while forensic experts continue examinations to determine the cause of the fire, which remains undetermined.Anguruwatota Police are conducting investigations.

 By Norman Palihawadane and Nishan S Priyantha

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CERT : AI-generated videos depicting Prez, PM lure public into financial scams

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Sri Lanka CERT has issued a public warning over the circulation of artificial intelligence (AI)-generated videos falsely depicting President Anura Kumara Dissanayake, Prime Minister Harini Amarasuriya and several other prominent personalities to promote fraudulent investment schemes online.

According to complaints received by the national cyber security agency, the videos have been created using deepfake technology and are being used as part of attempts to defraud members of the public through financial scams.

The images of famous sports personalities and other public figures have also been misused in the deceptive content.

The agency has warned that similar AI-generated material has been used to spread false information relating to investment opportunities, employment offers, as well as matters concerning the country’s economy and tax policies.

According to Sri Lanka CERT, the videos are being widely shared across online platforms and frequently contain links urging viewers to make investments in return for purported profits.The agency has cautioned that these links may redirect users to fraudulent websites designed to steal personal information, financial data and money from unsuspecting victims.

Sri Lanka CERT has urged the public to exercise extreme caution when encountering such content online and advised against clicking on suspicious links or sharing personal information through unverified websites.

“The public should remain vigilant and avoid becoming victims of false information and online fraud schemes,” the agency said.

Sri Lanka CERT has also encouraged internet users to verify information through official sources before acting on any investment, employment or financial offers circulated via social media or other online platforms.

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