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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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Post-Ditwah recovery efforts: Rs. 190 bn needed to restore roads and bridges countrywide

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Officials of the Ministry of Transport and Highways and Urban Development yesterday said that due to the destruction of roads and bridges across the country by Cyclone Ditwah, the Road Development Authority alone had incurred a loss of approximately Rs. 75 billion.

The officials said the restoration of disaster-hit roads and bridges would require approximately Rs. 190 billion.

This was disclosed at the meeting of the Sectoral Oversight Committee on Infrastructure and Strategic Development, convened to discuss the nature of the Ditwah disaster and the measures to be taken to assess the resulting social, economic, and environmental damage. The meeting was held recently (11) in Parliament under the Chairmanship of Member of Parliament S.M. Marikkar.

During the meeting, officials of the Ministry of Transport and Highways and Urban Development pointed out that as a result of the disaster situation, 316 roads and 40 bridges, under the purview of the Road Development Authority, had been damaged.

However, the Chair of the Committee pointed out that assessments regarding damage to railway lines and regional roads across the country had not yet been carried out. The Chair further emphasised the importance of the Ministry taking the lead in formulating a mechanism to provide financial allocations for the rehabilitation of regional roads.

Accordingly, the officials informed the Committee that it was currently expected to obtain a loan of Rs. 2 billion from the World Bank, and that funds required to carry out these rehabilitation works were also expected to be obtained from several other institutions.

Meanwhile, officials of the Ceylon Electricity Board (CEB) informed the Committee that the CEB had incurred a loss of approximately Rs. 20 billion due to recent natural disasters. It said discussions are underway to obtain a loan from the World Bank for this purpose. Commenting on this, the Chair of the Committee advised the CEB officials to obtain these funds as a grant rather than as a loan. He emphasised the importance of securing the funds as a grant, as obtaining them as a loan could result in an increase in electricity bills for consumers.

In addition, officials informed the Committee that Lanka Electricity Company (Pvt.) Ltd. had incurred an estimated loss of Rs. 252 million due to the Ditwah disaster. Officials representing the company further stated that since the expenditure required for the repair work could be covered with budgetary allocations already provided to them, no additional loan or grant was required.

Officials also informed the Committee that the National Water Supply and Drainage Board had incurred an estimated loss of Rs. 5.6 billion due to the disaster. The Secretary of the Ministry of Housing, Construction and Water Supply informed the Committee that 156 water supply schemes of the National Water Supply and Drainage Board were damaged, and that all of them had now been restored. The Secretary further informed the Committee that arrangements were being made to obtain the funds required for rehabilitation as a grant from the Asian Development Bank.

Accordingly, emphasising the importance of preparing plans to face potential future disasters, the Chairman of the Committee said the Sectoral Oversight Committee on Infrastructure and Strategic Development was ready to provide necessary support to the relevant ministries and officials for this purpose.

Members of Parliament Nalin Bandara Jayamaha, Ajith P. Perera, and Asitha Niroshana Egodavithana, along with a group of officials, were present at the discussion.

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Siddhalepa takes authentic Lankan Ayurveda medicine to UK through a collaborative

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The expansion of Sri Lankan Ayurveda in the United Kingdom was marked a few days ago at the Sri Lanka High Commission in London, with the official launch of the Siddhalepa & Ayurveda Medical UK Collaborative. The occasion brought together dignitaries, Ayurvedic and medical professionals, wellness industry leaders, and members of the Sri Lankan and British communities to celebrate the formation of a strategic partnership aimed at improving access to authentic Sri Lankan Ayurveda medicine in the UK.

Delivering the welcome remarks, Dr Roshan Jayalath, Director of Ayurveda Medical UK, outlined the collaborative’s commitment to strengthening clinical standards, preserving cultural integrity, and enhancing global recognition of Sri Lanka’s rich medical heritage. Addressing the gathering, Sri Lanka’s High Commissioner in London, Nimal Senadheera, underscored the initiative’s significance in promoting Sri Lanka’s cultural legacy, deepening bilateral relations, and creating new opportunities for cooperation in the fields of Ayurveda and wellness. He reaffirmed the High Commission’s support for initiatives that elevate Sri Lanka’s international profile.

Joining the event virtually from Sri Lanka, Asoka Hettigoda, Chairman of the Siddhalepa Group, spoke of the company’s 200-year Ayurvedic lineage, its 90-year commercial history, and its standing as a global leader in authentic Ayurveda. This was followed by a presentation by Mrs. Shevanthie Goonesekera, titled The Origins of Siddhalepa, which traced the brand’s evolution and its enduring contribution to Sri Lanka’s cultural heritage.

Directors Prof Vijay Nayar and Dr Prag Moodley outlined the collaborative’s vision for a structured, clinically responsible model of Ayurveda practice in the UK, while Dr Vani Moodley spoke on Ayurvedic diagnostic principles and the philosophy underpinning the “Signs of Life” approach.

By Sujeeva Nivunhella
in London

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Prof. G. L. Peiris offers rare insider’s account of Sri Lanka’s peace talks with LTTE

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As global attention focusses on high-stakes peace negotiations, a definitive Sri Lankan perspective on the promise and perils of negotiated conflict resolution comes to print

At a moment when the world is closely watching peace efforts linked to conflicts in Thailand and Cambodia, Gaza and Ukraine, a new book by Prof. G. L. Peiris revisits one of the most closely scrutinised peace initiatives of recent times: the negotiations between the Government of Sri Lanka and the Liberation Tigers of Tamil Eelam (LTTE).

Titled ‘The Sri Lanka Peace Process: An Inside View,’ the book is published by Vijitha Yapa Publications. The hardcover volume provides a scholarly, candid and first-hand account of the peace process that began in Sattahip, Thailand, on 16 September 2002, amid widespread international expectation that a brutal 30-year conflict was finally nearing its end.

Prof. Peiris

The talks drew global attention not only for their ambition, but also for what they symbolised: the hope that dialogue could succeed where decades of violence had failed, and that Sri Lanka might offer lessons for the negotiated resolution of other ethnic conflicts. The reality proved more complex. The process unfolded amid international scrutiny, encountering structural weaknesses, competing agendas and political vulnerabilities that ultimately led to its collapse.

This book examines that journey in detail. It analyses the design of the peace process, its strengths and inherent flaws, the limited gains that were achieved, and the factors that precipitated its failure. Importantly, it does so through the lens of the individual who led the Government of Sri Lanka’s negotiations in face-to-face talks with one of the world’s most ruthless terrorist organisations, the LTTE.

Prof. Peiris brings exceptional authority to this narrative. A former Dean of the Faculty of Law and Vice Chancellor of the University of Colombo, he has also served Sri Lanka as Minister of External Affairs, State Minister of Defence, Minister of Education and Minister of Justice. His academic credentials include a Bachelor of Laws with First Class Honours from Ceylon, and Doctorates from Oxford University and Sri Lanka.

Drawing on this blend of academic rigour and experience at the highest levels of governance, Prof. Peiris offers an objective, analytical and deeply personal account of the peace talks. The narrative is enriched by first-hand insights into the personalities involved, the strategic calculations on both sides, and the realities of negotiating under intense domestic and international pressure.

As contemporary global leaders grapple with the complexities of ending armed conflicts through dialogue, ‘The Sri Lanka Peace Process: An Inside View’ serves as a timely reminder of both the potential and the fragility of peace processes, and of the high cost of missteps along the way.

The book is available in hardcover at Rs. 7,500.

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