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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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Where is Gnanasara Thera?Police pass buck to court

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Gnanasara Thera

by Norman Palihawadane

Bodu Bala Sena (BBS) General Secretary Ven. Galagoda Aththe Gnanasara Thera’s whereabouts have remained unknown since the Supreme Court, on Monday, annulled a presidential pardon granted to him in 2019.

Prison officers visited the Thera’s temple in Nawala, Rajagiriya, to take steps to return him to prison to serve the unexpired portion of his six-year sentence. However, monks at the temple had reportedly informed the officials that they were unaware of his whereabouts.

Police spokesman ASP F.U. Wootler said a separate court order was required for the police to trace the Thera, or assist in taking him into prison custody. No such order had been issued so far, he claimed.

Meanwhile, sources close to Gnanasara Thera said he was expected to attend a book launch in Colombo tomorrow (17),

The development follows the Supreme Court declaring the 2019 presidential pardon granted to Gnanasara Thera, by then President Maithripala Sirisena, null and void.

A three-member Supreme Court bench held that the pardon had been granted arbitrarily and violated public trust and principles of natural justice.

Gnanasara Thera had been serving a six-year prison sentence for contempt of court when the then President Sirisena granted him the pardon, in May, 2019. He had served only about nine months of the sentence at the time.

With the pardon annulled, the original sentence remains in force and the Thera is now required to serve the balance of his six-year term.

The Supreme Court ruling has raised questions over the procedure to be followed to return him to prison, with police and prison authorities yet to take custody of him.

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Russian citizens in Lanka to vote in State Duma elections

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Chandana Ruwan Jayanetti, Director of the Advanced Technological Institute, Galle, presented a copy of his new book POEMS FROM GALLE, to Prime Minister Dr. Harini Amarasuriya in her office in Parliament last Friday (11). Dr. Hiniduma Sunil Senevi, Minister of Buddhasasana, Religious and Cultural Affairs, is also in the picture.

Russian citizens residing or temporarily visiting Sri Lanka will have the opportunity to cast their ballots in the elections to the State Duma of the Federal Assembly of the Russian Federation on September 20.

The Embassy of the Russian Federation in Sri Lanka said polling would be held at polling station No. 8338 at the Russian Embassy, 404, Bauddhaloka Mawatha, Colombo 07.

The polling station will be open from 8 a.m. to 8 p.m. on September 20, according to the Embassy.

Russian citizens aged 18 and above, including those permanently residing in Sri Lanka and those temporarily visiting the country, are eligible to vote, the Embassy said.

Voters are required to visit the polling station during its operating hours and produce documents certifying their Russian citizenship.

The Embassy said prior registration was not required to participate in the voting.

The election will be held to elect deputies to the ninth convocation of the State Duma, the lower house of Russia’s Federal Assembly.

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Euro 110,000 research drive to tackle plastic waste in food sector

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Grant agreement signed by Mahmoud Gaballah, Project Manager at Expertise France and Sr. Prof. Pasdunkorale Arachchige Jayantha, Vice-Chancellor of the University of Ruhuna

Plastic waste is a growing challenge for Sri Lanka’s food sector, yet important gaps remain in understanding where and how single-use plastics are used, how they move through food value chains, and where interventions could have the greatest impact.

Through the European Union-funded CIRCULAR project, new research will help address these gaps by generating evidence to inform policy, business practices and more sustainable choices. Three research grants, totalling €Euro 110,000, will support university-led studies by research teams from the Faculty of Agriculture at the University of Ruhuna, and the Faculty of Medicine and Faculty of Computing at the University of Kelaniya.

Together, the studies will examine the use, flow and impacts of single-use plastics (SUPs) across selected food and beverage value chains in the Colombo and Galle Districts. The research will also seek to identify practical opportunities to reduce plastic use, promote more sustainable alternatives and strengthen circular economy practices.

At present, available data on plastic waste in Sri Lanka, particularly single-use plastics, do not provide sufficient detail on the sectors, sources and types of plastics involved. This limits the ability of policymakers, businesses and other stakeholders to pinpoint where plastic use can be reduced most effectively and to assess which interventions could deliver the greatest impact. The new research will help provide a more detailed understanding of these patterns, supporting more targeted and evidence-based action.

The three research teams will use a combination of data collection, waste-flow mapping, environmental and public health assessments, and life-cycle approaches to examine these challenges from different perspectives. The findings are expected to help identify opportunities to reduce plastic use, improve resource efficiency and promote more sustainable packaging and waste management practices.

The research grants are part of the CIRCULAR project’s broader efforts to support Sri Lanka’s transition towards more sustainable production and consumption in the food sector. Alongside research and evidence generation, the project works to raise awareness, encourage behaviour change and support approaches that move away from the traditional “take, make and dispose” model towards a more circular economy.

Circular Economy in the Food Sector (CIRCULAR) project is a three-year initiative focused on reducing food loss and food waste (FLW) and Single-use plastic (SUP) waste in the Food Sector in Sri Lanka. Funded by the European Union, and partially co-funded by the German Federal Ministry for Economic Cooperation and Development (BMZ), the project is jointly implemented by Expertise France (EF), the Food and Agriculture Organisation (FAO) and Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH.

By strengthening the evidence base on single-use plastics, the research is expected to provide a stronger foundation for practical action, helping decision-makers, businesses and other stakeholders better understand where change is needed and how more sustainable solutions can be put into practice.

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