Connect with us

News

Trade union says Energy Ministry has regulatory powers to intervene

Published

on

Sharp difference in LIOC and CEYPETCO prices causes further losses to govt.

By Shamindra Ferdinando

The government’s efforts to provide an uninterrupted fuel supply at CEYPETCO pumping stations has suffered a debilitating setback due to theunprecedented heavy demand caused by sharp differences in prices at the CPC-owned and the Lanka India Oil Company (LIOC) managed service stations.

CPC Chairman Sumith Wijesinha yesterday (28) said that with the latest price increase announced by the LIOC, a litre of petrol and diesel, at LIOC service stations, now costs Rs. 27 and Rs 18, respectively, more than at CEYPETO stations.

Wijesinha acknowledged that the difference in prices is the sharpest ever since the entry of LIOC into the Sri Lanka market. A trade union affiliated to the main Opposition Party, the Samagi Jana Balavegaya (SJB) asked the government how the LIOC could increase fuel prices, contrary to the existing agreements.

LIOC entered the Sri Lanka market in 2003 during Chandrika Kumaratunga’s tenure as the President. The Indian state enterprise gradually expanded its operations here and now it operated 202 service stations.

In addition to the oil terminal it managed at Trincomalee, the LIOC owned one-third share in the Ceylon Petroleum Storage Terminals Limited (CPSTL) – a joint venture involving the LIOC and the CPC. The CPSTL operated 13 oil terminals.

Wijesinha admitted that the LIOC had the right to decide on fuel prices on its own. LIOC increased the price of petrol and diesel on Feb 6 and Feb 25, 2022, effective midnight on each day. On Feb 6, LIOC increased the price of a litre of petrol by Rs 7 and diesel by Rs 3. On Feb 25, LIOC jacked up the price of a litre of petrol by Rs 20 and diesel by Rs 15.

Managing Director of LIOC Manoj Gupta, in a statement issued on the eve of Feb 25 price increase said that the steep rise in international oil markets compelled them to increase the price of petrol and diesel. Pointing out that the Brent crude oil price was now over USD 100 per barrel, Gupta blamed the Russian invasion of Ukraine along with drop in supply by OPEC countries for the situation.

In the wake of Feb 6 price increase, Energy Minister Udaya Gammanpila said that he was informed of the impending price increase by the LIOC. The Minister said so when The Island sought his response to the fuel price hike.

Minister Gammanpila, too, acknowledged that in line with the agreement between Sri Lanka and India, the latter could decide on the pricing formula.

The third retailer Laugfs Petroleum follows the CEYPETCO’s pricing formula. Laugfs entered the market in 2004 also during the Kumaratunga’s presidency.

In spite of the cash-strapped and debt-ridden CPC taking massive losses, the government has delayed matching LIOC pricing formula, thereby drawing the vast majority of consumers to its service stations. CPC Chairman Wijesinha said that their daily losses went up sharply as the sales volumes grew.

During a recent meeting chaired by President Gotabaya Rajapaksa at the Presidential Secretariat, Finance Minister Basil Rajapaksa emphasized that imported pharmaceuticals were the only items subjected to price controls.

Opposition trade union grouping representing oil, port and electricity sector workers yesterday (28) questioned the failure on the part of the government to prevent LIOC increasing oil prices contrary to the existing agreement between the two parties. Having earned massive profits in 2021, the LIOC seemed determined to further exploit hapless Sri Lanka, convener of Samagi trade union grouping Ananda Palitha emphasized that LIOC couldn’t under any circumstances increase prices without specific approval from the Energy Ministry in the absence of a Regulator as envisaged in the agreement between the two parties.

Asked whether the price increases announced by the LIOC on Feb 6 and 25 were illegal in terms of the existing agreements, Ananda Palitha pointed out that would be the case if the Energy Ministry opposed the move. Responding to LIOC claims that oil markets were jittery in the wake of the Russian invasion of Ukraine and other related factors, Ananda Palitha stressed that both the CPC and the LIOC still received stocks ordered 35 days ago.

LIOC MD Gupta has stated that his was the only public limited energy company in business here and was accountable for more than 10,500 local shareholders.

The outspoken trade union leader called for a total review of all agreements between Sri Lanka and India as regards LIOC and Trincomalee oil tank farms. According to him, in the absence of proper energy policy Sri Lanka was at the mercy of India and other foreign powers.

Reference was made to the controversial circumstances under which Sri Lanka has finalized an energy deal with the US-based New Fortress Energy, in September last year. The matter is now before the Supreme Court.

Ananda Palitha said that the government couldn’t absolve itself of the responsibility for ensuring steady supply of fuel at reasonable prices to the consumers.



Latest News

58,454 International aircraft movements in Sri Lanka in first 11months of 2025 – Ministry of Ports and Civil Aviation

Published

on

By

According to figures released by the Ministry of Ports and Civil Aviation there have been 58,454 international aircraft movements in the first 11 months of 2025 in Sri Lanka. [An  aircraft movement refers to the count of take offs and landings at an airport]

The figures also confirm that tourist arrivals via air stands at 2.1 million.

Continue Reading

Latest News

Highest revenue in 93-year history of Inland Revenue Department collected in 2025

Published

on

By

The Inland Revenue Department has succeeded in collecting Rs. 2,203 billion in revenue in 2025, the highest amount recorded in its 93-year history. This represents a surplus of Rs. 33 billion over the revenue target for the year and a 15 per cent increase compared with the revenue collected in the previous year, stated Commissioner-General of Inland Revenue Ms Rukdevi Fernando.

She made these remarks at a discussion held on Tuesday (30)  morning at the Department’s auditorium under the patronage of President Anura Kumara Dissanayake.

Marking the first occasion in the 93-year history of the Inland Revenue Department that a President has visited the Department, the President attended a meeting with the staff  to review the progress achieved in 2025 and the new plans for 2026.

The President expressed his appreciation to all officers and staff of the Inland Revenue Department for surpassing the revenue expected by the Government and urged everyone to continue working towards a common objective in order to realise the economic transformation required for the country.

Emphasising that no individual is entitled to the privilege of evading taxes, the President stated that the era in which a tax culture prevailed based on personal or political affiliations has come to an end. He further stressed that the law will be enforced without hesitation, irrespective of status, against those who attempt to evade taxes.

The President also pointed out that tax collection is neither repression nor coercion but a legitimate right of the State, adding that necessary changes will be made to laws, regulations, designations and staffing in order to secure this contribution.

He further emphasised that the Government’s objective is to ensure that the benefits of these economic achievements flow to the people of the country. The Government is focusing on improving essential public services to enhance the quality of life, undertaking a new transformation of the transport system and providing adequate allocations for the development of the education and health sectors.

The President also highlighted the need for a targeted programme to properly collect the taxes due to the Government by addressing issues such as improving tax literacy, simplifying the tax system and filling staff shortages.

Ms Rukdevi Fernando stated that the professional competence and dedication of the Department’s officers were the key factors behind this success.

She further noted that a revenue target of Rs. 2,401 billion has been set for 2026 and that the Department expects to achieve this through programmes aimed at enhancing tax compliance and broadening the tax base.

In addition, she said that the Department plans to expand third-party data sharing, strengthen investigations into domestic and overseas assets, take over the RAMIS system, reinforce risk-based auditing, introduce e-invoicing, adopt modern technology for tax administration and enhance tax ethics in 2026.

Minister of Labour and Deputy Minister of Finance and Planning Dr Anil Jayantha Fernando, Deputy Minister of Economic Development Nishantha Jayaweera, Secretary to the President Dr Nandika Sanath Kumanayake, Commissioner-General of Inland Revenue Ms Rukdevi Fernando and senior officials and staff of the Department were present at the occasion.

Continue Reading

Business

Sri Lanka Customs exceeds revenue targets to enters 2026 with a surplus of Rs. 300 billion – Director General

Published

on

By

The year 2025 has been recorded as the highest revenue-earning year in the history of Sri Lanka Customs, stated Director General of Sri Lanka Customs, Mr. S.P. Arukgoda, noting that the Department had surpassed its expected revenue target of Rs. 2,115 billion, enabling it to enter 2026 with an additional surplus of approximately Rs. 300 billion.

The Director General made these remarks at a discussion held on Tuesday  (30)  morning at the Sri Lanka Customs Auditorium, chaired by President Anura Kumara Dissanayake.

The President visited the Sri Lanka Customs Department this to review the performance achieved in 2025 and to scrutinize the new plans proposed for 2026. During the visit, the President engaged in extensive discussions with the Director General, Directors and senior officials of the Department.

Commending the vital role played by Sri Lanka Customs in generating much-needed state revenue and contributing to economic and social stability, the President expressed his appreciation to the entire Customs employees for their commitment and service.

Emphasizing that Sri Lanka Customs is one of the country’s key revenue-generating institutions, the President highlighted the importance of maintaining operations in an efficient, transparent and accountable manner. The President also called upon all officers to work collectively, with renewed plans and strategies, to lead the country towards economic success in 2026.

The President further stressed that the economic collapse in 2022 was largely due to the government’s inability at the time to generate sufficient rupee revenue and secure adequate foreign exchange. He pointed out that the government has successfully restored economic stability by achieving revenue targets, a capability that has also been vital in addressing recent disaster situations.

A comprehensive discussion was also held on the overall performance and progress of Sri Lanka Customs in 2025, as well as the new strategic plans for 2026, with several new ideas and proposals being presented.

Sri Lanka Customs currently operates under four main pillars, revenue collection, trade facilitation, social protection and institutional development. The President inquired into the progress achieved under each of these areas.

It was revealed that the Internal Affairs Unit, established to prevent corruption and promote an ethical institutional culture, is functioning effectively.

The President also sought updates on measures taken to address long-standing allegations related to congestion, delays and corruption in Customs operations, as well as on plans to modernize cargo inspection systems.

The discussion further covered Sri Lanka Customs’ digitalization programme planned for 2026, along with issues related to recruitment, promotions, training and salaries and allowances of the staff.

Highlighting the strategic importance of airports in preventing attempts to create instability within the country, the President underscored the necessity for Sri Lanka Customs to operate with a comprehensive awareness of its duty to uphold the stability of the State, while also being ready to face upcoming challenges.

The discussion was attended by Minister of Labour and Deputy Minister of Finance and Planning, Dr. Anil Jayanta Fernando, Deputy Minister of Economic Development, Nishantha Jayaweera, Secretary to the President, Dr. Nandika Sanath Kumanayake, Deputy Secretary to the Treasury, A.N.Hapugala, Director General of Sri Lanka Customs,  S.P.Arukgoda, members of the Board of Directors and senior officials of the Department.

Continue Reading

Trending