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Trade union says Energy Ministry has regulatory powers to intervene

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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.



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Women’s T20 World Cup 2026 warm-up: Chamari Athapaththu’s 94 helps Sri Lanka beat Pakistan

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File photo: Chamari Athapaththu top-scored for Sri Lanka (Cricinfo)

Captain Chamari Athapaththu’s 94 helped Sri Lanka chase down 169 with ease against Pakistan. Athapaththu and Vishmi Gunaratne together started strongly, putting up a 159-run stand as Sri Lanka won with eight balls to spare.

With the ball, right-arm seamer Chethana Vimukthi, who was called up as the injured Shashini Gimhani’s replacement. for the T20 World Cup, made an impact for Sri Lanka, finishing with figures of 4 for 31. Vimukthi broke the 60-run stand between openers Muneeba Ali and Gull Feroza, following which Pakistan lost wickets regularly. Captain Fatima Sana top-scored for Pakistan from No. 7 with 37 to push the total past 150. In reply, Sri Lanka made easy work of the chase, with Athapaththu itting five sixes and nine fours in her 56-ball stay.

Scores:

Sri Lanka Women 169 for 1 in 18.4 overs (Chamari Athapaththu 94, Vishmi Gunaratne 63*; Fatima Sana 1-20 ) beat Pakistan Women  168 for 8 in 20 overs (Muneesha Ali 36, Gull Feroza 26. Ayesha Zafar 10, Saira Jabeen 12,  Fatima Sana 37, Aliya Riyaaz 22;  Sugandika Kumari  1-33,  Chethana Vimukthi 4-31, Malki Madara 1-19, Nimasha Meepage 1-16) by nine wickets

(Cricinfo)

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Open hearing on coal procurement inquiry set for July first week

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Open hearing of evidence into alleged irregularities in coal procurement is scheduled to begin in the first week of July, while the Presidential Commission of Inquiry continues recording statements from relevant officials, investigators said.

So far, the Commission has recorded statements from around 40 government officials, including members of procurement committees and other personnel attached to institutions involved in coal-related transactions.

Officials said that, depending on evidence gathered during the ongoing inquiry, statements may also be obtained from former ministers if required.

The Commission has also received 28 complaints in connection with alleged irregularities in coal imports and related procurement processes.

President Anura Kumara Dissanayake on April 17 appointed a three-member Presidential Commission of Inquiry under the Special Presidential Commissions of Inquiry Act No. 07 of 1978 to probe alleged malpractice in coal imports and electricity generation since the inception of coal-based power generation up to April 16, 2026.

The Commission is chaired by Supreme Court Justice Gihan Kulatunga, with Court of Appeal Judge Aditya Patabendige and High Court Judge Sanjeewa Somaratne serving as members. Former State Ministry Secretary P.V. Bandulasena acts as Secretary to the Commission.

The inquiry covers alleged procurement irregularities, possible financial losses to the State, import of substandard coal, quality inspection failures, contractual breaches and operational issues in power generation, including whether corrective measures were taken where necessary.

It will also identify responsible political authorities, officials of Sri Lanka Coal Company (Private) Limited and suppliers, while recommending legal or administrative action and measures to prevent future lapses.

Meanwhile, the Committee on Public Enterprises (COPE) is also preparing to table its report on coal procurement in Parliament, with officials from relevant institutions having been summoned during its proceedings. COPE Chairman MP Dr. Nishantha Samaraweera said audit findings had also been considered, and any matters requiring further investigation would be referred to law enforcement and anti-corruption authorities.

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TNA MP calls for complete repeal of PTA

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Trincomalee District TNA MP Shanakiyan Rasamanickam has submitted a motion to Parliament calling for the immediate repeal of the Prevention of Terrorism Act (PTA), arguing that the controversial law has enabled arbitrary detention, torture and the targeting of minority communities for more than four decades.

In his motion, now published in the Addendum to the Order Book of Parliament, the MP urged the Government to repeal the Prevention of Terrorism Act, No. 48 of 1979, in its entirety and refrain from introducing any replacement legislation containing similar provisions.

Rasamanickam contended that the PTA had been used for over 40 years to facilitate prolonged arbitrary detention and to obtain false confessions through torture. He further alleged that the law had disproportionately affected minority communities and civil society groups.

The motion states that there is no justification for maintaining a permanent counter-terrorism law that grants sweeping powers to the authorities.

The TNA legislator argued that existing legal provisions were sufficient to address security threats, noting that terrorism-related offences could already be prosecuted under the Penal Code.

He also pointed out that the Government retained the power to declare a state of emergency when circumstances warranted extraordinary measures, rendering a permanent anti-terrorism framework unnecessary.

Accordingly, the motion calls on Parliament to resolve that the Government take immediate steps to abolish the PTA without replacing it with legislation containing comparable powers.

The Prevention of Terrorism Act, enacted in 1979, has long been the subject of criticism from human rights organisations, civil society groups and international bodies, which have raised concerns over provisions relating to detention without trial and safeguards against abuse.

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