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Editorial

The petrol strike

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Last week’s previously announced strike by employees of the Ceylon Petroleum Corporation (CPC) would surely have invoked memories of last year’s queue horrors outside filling stations and gas dealerships; this was not only in the minds of motorists and cooking gas consumers but also within a wider spectrum of the people subject to hours long power cuts. The success, if it may be so described, of the Ranil Wickremesinghe presidency up to now predates last month’s deal with the IMF. His government, no doubt because the country had stopped paying off its foreign debt and servicing loan obligations, was able to end the never-before-seen scenes of miles long queues countrywide. If it had been unable to do that, Wickremesinghe would have been past tense by now.

But all is not on the plus side of the ledger. Although the queues near filling stations were largely absent despite the CPC employees’ trade union action, there were shortages attributed to the non-placing of orders by dealers who anticipated a downward price revision in April. That was to be expected in the context of Power and Energy Minister Kanchana Wijesekera’s announcement to that effect. This was undoubtedly wrong speech on the part of the minister who projects an attractive picture in today’s political firmament. He is young, vigorous and speaks very fluent English and Sinhala. He minimizes appearances at press conferences often preferring to have his say through his twitter handle. His early announcement cost plenty.

At the height of last year’s fuel crisis when overnight waits in a queue was common, he introduced the eminently sensible fuel rationing system using a QR code. It may perhaps be argued that this arrangement could have been made earlier than it actually was. But better late than never. Undoubtedly there are some bucks being made by fuel pump attendants now fiddling the system in collusion with dishonest motorists; yet the scheme is working reasonably well and Wijesekera needs to be credited for that. Clearly the public is at odds with strikers causing them both massive inconvenience and hardship by work stoppages. This is most dramatic in the health sector beset with other problems, notably the shortage of essential medicines.

How far the standoff will go on now that the first shots have been fired remains to be seen. The minister has not ordered peremptory dismissal of strikers defying the Essential Service order now in force. Instead he has opted sending the union leaders, including one from his own Sri Lanka Podu Jana Peramuna (SLPP), on compulsory leave. They will also not be permitted within CPC premises. Further action will follow due investigation. The cat is among the canaries with a Samagi Jana Peramuna (SJB) unionist, previously of the UNP, in the prohibited list. Nobody would object to the presence of troops and police within CPC installations as it is a common union practice to intimidate so-called blacklegs.

As this is being written on Friday, fuel distribution appeared normal with both CPC and LIOC (Lanka Indian Oil Corporation) filling stations operating without let or hindrance. Small queues were visible at some sheds on Thursday but these were not more than 10 -15 vehicles long and were quickly cleared. Notices declaring ‘No stocks’ that were ubiquitous the last time round were conspicuously absent. Some tankers on their delivery runs were escorted obviously for the sake of prudence although they were clearly not under threat.

President Wickremesinghe has not even hinted at the possibility of a July 1980-style heavy handed approach used by the JRJ regime of that time fresh from its 1977 landslide. Tens of thousands of strikers lost their job on that occasion and political parties, encouraging unions aligned to them to back a putsch against a government elected with an unprecedented mandate, learned a bitter lesson. Wickremesinghe’s opponents are vocal about his capacity to emulate his Uncle Dickie. He first entered parliament in 1977 and was a favoured nephew of the then president.

The government has explained the decision to bring three new players into the petroleum business was intended to create competition that would benefit consumers. When Prime Minister Sirima Bandaranaike nationalized the petroleum import and distribution business in the early sixties, there were three foreign players in the market selling under the brand names of Shell, Caltex and Esso with Shell dominating marketshare. But at that time all three western players in a profitable business priced their petrol at the same rate and there was no price competition. While there was claimed competition on the service front (eg. one player would wipe a motorist’s windshield with a damp cloth while his tank was being filled) there was no real competition. Today CPC and LIOC usually price their products at the same level but there have been aberrations when LIOC found it was profitable to sell diesel above the CPC price to discourage sales.

One argument for nationalizing the petroleum industry in the early sixties was the possibility of procuring Russian oil. The entrenched players had their own suppliers connected to the western oil industry and procurement from the Soviet bloc was non-existent. Eventually the CPC was vested with a monopoly which continued till 2003 when Colombo introduced limited competition by allowing India’s state-owned Indian Oil Corporation to enter the market. Lanka Indian Oil Corporation PLC, (LIOC) which is quoted on the Colombo Stock Exchange will expand its footprint here with the entry of the new players. CPC employees, many holding sinecures and often recruited with political patronage, naturally resent the shrinking of the CPC monopoly and will resist it. That appears to be today’s state of play.



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Editorial

Sobering truth vs belligerent bluster

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Thursday 30th April, 2026

US President Donald Trump has lashed out at German Chancellor Friedrich Merz for being critical of the US-Israeli military campaign against Iran. Instead of countering the German leader’s compelling arguments, Trump has alleged that Germany is not opposed to Iran’s nuclear programme. He has written in a social media post that Merz thinks it is all right for Iran to have a nuclear weapon and does not know what he is talking about. If Iran had a nuclear weapon, the whole world would be held hostage, Trump has claimed. Merz has said nothing to suggest that Germany is soft on Iran’s nuclear ambitions. Instead, he has very convincingly pointed out that the US-Israeli military strategy is ill-conceived and flawed.

Trump is known for using circular reasoning and false dichotomy when he tries to defend the indefensible. His claim that Iran has to be prevented from acquiring nuclear capability is self-defeating, for US Intelligence Chief Tulsi Gabbard herself has testified before the Congress that Tehran is not building nuclear weapons. Washington has manufactured a casus belli again, the way it did in 2003 to justify the invasion of Iraq; it claimed that Saddam Hussein had stockpiles of chemical weapons.

Ironically, President Trump, who has been eyeing the Nobel Peace Prize, is not at peace with the rest of the world, including the NATO member states. Having bombed Iran, destroying assets worth billions of US dollars and killing thousands of civilians, he has opted for negotiations with Tehran. International media reports and defence analysts have indicated that the US has exhausted a substantial portion of some of its missile stockpiles, and now it has to rebuild the inventories, a task that will take a considerable time; this could affect Washington’s preparedness for future conflicts, they have pointed out. Trump is believed to have made a virtue of necessity by declaring a ceasefire.

Merz’s criticism of the US-Israeli war on Iran has struck a responsive chord with all peace-loving people around the world. His assessment of the West Asian conflict is spot on. He has rightly pointed out that Washington is being humiliated by Tehran’s negotiating tactics. Iran has openly stated that it did not ask for a ceasefire.

It is obvious that Trump plunged headfirst into war, without having an exit strategy. He and Israeli Prime Minister Benjamin Netanyahu may have expected to make short work of Iran, engineer a regime change and install a puppet regime in Tehran. Iran’s resilience and strategic moves made the US-Israeli military plans go awry.

Merz has cogently argued that the problem with conflicts like the current one in West Asia is that “always you don’t just have to get in – you have to get out again, as was seen in Afghanistan for 20 years and in Iraq”. In Afghanistan, after two decades of fighting, which caused thousands of civilian deaths and cost the western taxpayers about a trillion dollars, the US and its allies replaced the Taliban with the Taliban, as it were.

In an asymmetric engagement, there is hardly anything that the weaker side, fighting for survival, does not weaponise. Iran effectively shifted the war to the economic front while attacking Israel, the US bases in the region and the critical assets of the American allies within its missile range. The closure of the Hormuz Strait, which Iran is using as a strategic lever, has disrupted global oil and fertiliser supplies passing through that chokepoint. Massive oil price hikes could not have come at a worse time for Europe, which is still struggling to deal with the fallout from the Ukraine war and the Covid-19 pandemic. The soaring oil prices have become a double whammy for the European nations as well as others. It is only natural that Europe does not want the West Asian conflict to drag on. US farmers are also complaining of staggering increases in production costs due to soaring fertiliser prices. The US naval blockade has not helped Washington solve the problem—the closure of the Hormuz Strait for international navigation. Oil prices are rising and economies are screaming the world over. Trump has had to clean up the mess he and Netanyahu created in West Asia.

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Editorial

Stop mob intimidation

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Wednesday 29th April, 2026

The police yesterday intervened to prevent a clash between a group of JVP activists and some Opposition politicians who held a protest near the private residence of Secretary to the Ministry of Finance Dr. Harshana Suriyapperuma, in a Colombo suburb. The protesters complained of a cow dung attack by the JVP members, who denied the charge. Tempers were flaring, and the two groups would have come to blows but for the police presence.

There is no gainsaying that citizens have a right to conduct peaceful protests near state institutions where scandals occur or in other public places. On Monday, a large number of anti-government activists were seen near the Finance Ministry protesting against an illegal diversion of Treasury funds. They shouted themselves hoarse before dispersing. But some self-proclaimed anti-corruption campaigners obviously overstepped their limits and became a nuisance when they protested near Dr. Suriyapperuma’s house the following day. Such demonstrations, in our view, amount to mob intimidation.

The family members of Dr. Suriyapperuma or other Finance Ministry officials obviously have nothing to do with the theft of Treasury funds and must not be made to suffer distress. One may argue that the JVP, which resorted to similar tactics in the past, has been hoist with its own petard. The JVP even made a determined yet abortive bid to march on Parliament at the height of a popular uprising in 2022. If it had succeeded in its endeavour, the country would have been plunged into anarchy. But two wrongs don’t make a right.

Lessons learnt during the final phase of Aragalaya in 2022, when scores of houses belonging to the then ruling party politicians and their family members were torched and an SLPP MP was murdered, must not be forgotten. Protests and counter-protests tend to spiral out of control once tension rises and seething anger blinds mobs to reason. Hence the need for the organisers of such events to act with restraint and take precautions. Political leaders ought to keep troublemakers among their supporters on a tight leash.

Pressure must be ramped up on the government to stop shielding the corrupt and have the Treasury theft and other scandals probed thoroughly, and the Opposition’s right to hold peaceful protests cannot be questioned, but under no circumstance must protesters be allowed to mob the residences of politicians and officials.

Ad hoc funds

Everything seems to have gone wrong at once for the JVP-NPP government. While the Opposition is flogging the issue of a Treasury fund diversion to a rouge account, Chairman of the Committee on Public Finance (COPF) and SJB MP Dr. Harsha de Silva has raised concerns about the legality of the Rebuilding Sri Lanka Fund (RSLF), which was set up in the aftermath of Cyclone Ditwah last year.

On Monday, addressing the media, Deputy Minister of Finance Dr. Anil Jayantha Fernando assured the public that the RSLF was safe. Donations had come from Sri Lankans and foreigners in 49 countries, he said, dismissing as baseless a claim that the fund had not been properly utilised. Responding to him, the COPF Chief has said that the RSLF has no legal validity. He has argued in an X message that under the IMF programme several funds were abolished, and only statutory funds are maintained. He has repeatedly questioned the Finance Ministry officials on issues regarding the RSLF only to be informed that they are still working on them, according to his social media post.

The RSLF has been free from allegations of irregularities, but its lack of statutory grounding could give rise to issues about transparency, regulatory oversight and public trust. Statutory recognition will help foreclose criticism that often has a corrosive effect on the integrity of relief funds.

It is hoped that the COPF will ensure that the Finance Ministry officials appear before it and explain why they have made no serious effort to obtain statutory status for the RSLF. The practice of establishing ad hoc relief funds needs to be discontinued.

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Editorial

Treasury theft: Heed Sajith’s demand

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Tuesday 28th April, 2026

The JVP-NPP government has painted itself into a corner and provided another rallying point to its political opponents, who are on the offensive, using the latest scandal as a bludgeon to beat the ruling party leaders with. The last few days have seen Opposition protests against the diversion of Treasury funds (USD 2.5 million) to a rogue account. The protesters would have the public believe that it is the biggest-ever theft of state funds, and the government has no moral right to remain in power. They are demanding that President Anura Kumara Dissanayake resign as the Minister of Finance and Dr. Harshana Suriyapperuma step down as the Secretary to the Finance Ministry.

However, there is a counterargument that cannot be ignored under the principle of natural justice. It posits that the fund diversion happened during a routine process of debt servicing, and the officials who handled the task did not contact the creditor, an Australian agency, despite being alerted by the Central Bank, and ordered the fund transfer, after checking with the phisher, of all people, on the account number. There is no evidence that they sought approval of the senior Treasury officials for the erroneous fund transfer, and the theft happened due to the sheer negligence of some officials in the External Resources Department (ERD).

The incumbent government has earned notoriety for scapegoating state officials, as evident from the manner in which it has sought to defend former Energy Minister Kumara Jayakody, who is embroiled in a coal procurement scam. Therefore, it is only natural that the JVP-NPP administration stands accused of trying to help the President and the Treasury Chief save their skins politically by throwing some ERD officials to the wolves. It is popularly said that he who hath an ill name is half-hanged. Reputations and perceptions do matter in politics, but it is imperative that all aspects of an issue be examined thoroughly during an investigation before conclusions are drawn.

There seems to be no end to the current rulers’ bungling. The government blundered big time by keeping the theft of Treasury funds under wraps. The illegal fund diversion would not have snowballed into a huge political issue if the government had disclosed it immediately after the phishing attack came to light and called in the CID to conduct a probe. Most of all, Parliament should have been informed of the incident without delay.

Having made a colossal blunder that has provided grist to the Opposition’s mill, the least the government can do now to prove its much-touted commitment to upholding accountability and transparency is to heed Opposition Leader Sajith Premadasa’s call for appointing a Parliamentary Select Committee (PSC) headed by an Opposition MP. The PSC proceedings must be open to the media. Ideally, the Opposition should have a majority on the committee, as the SJB has suggested. The government should be able to allow an independent parliamentary probe into the Treasury theft if it has nothing to hide. The public has a right to know the truth.

Many of those who are condemning the government for the illegal fund diversion pretend to be paragons of virtue, but they themselves are tainted. Some of them have a history of cutting numerous corrupt deals and defending crooks while in power. The bigwigs of the SJB and the UNP who are accusing the government of covering up rackets and shielding the corrupt went so far as to deny the Treasury bond scams in 2015 and had no qualms about defending those responsible for that financial crime. They even sought to dilute the COPE (Committee on Public Enterprises) report on the bond scams, with a slew of footnotes. (Ironically, the JVP itself backed the UNP-led Yahapalana government despite the bond scams and other corrupt deals.) The less said about the SLPP politicians, the better. The SLPP became a metaphor for corruption, while in power, but today its leaders have taken to moral grandstanding and are on a crusade against corruption. They defended Keheliya Rambukwella, who was exposed for procuring substandard medicines and fake cancer drugs.

Sadly, the JVP-NPP government, which came to power, promising to eliminate corruption and usher in good governance, has failed to live up to the expectations of the public, who hoped for a new political culture. Worse, it has created a situation where the crooks out of power are recovering lost ground on the political front.

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