News

USD 500 mn credit line to procure petroleum products: Govt. wants India to double facility

Published

4 years ago

2022/04/11

Sahan Weerasooriya

‘Protests will ruin efforts to attract tourists’

By Shamindra Ferdinando

Sri Lanka is trying to have the USD 500 mn Indian Credit Line for fuel increased to USD 1 bn. Janaka Ratnayaka, Chairman of the five-member Public Utilities Commission of Sri Lanka (PUCSL) yesterday told The Island that Sri Lanka was seeking to have the Indian credit line doubled in line with overall efforts to tackle the worsening crises.

Emphasising the importance of doubling the Indian credit line, Ratnayake revealed that another combination of 200 MT of fuel would be delivered within a short period, also under USD 500 million credit line.

Declaring that funds had been made available for what he called anchored diesel shipment, Ratnayake said that sufficient stocks were now available to provide uninterrupted electricity supply for Sinhala and Tamil New Year on 13, 14 and Good Friday (April 15) as well.

Since the finalisation of the USD 500 mn credit line on Feb 02, 2022, for the purchase of petroleum products, India has delivered four shipments on 16, 20, and 23 March, and 02 April.

Eldos Mathew Punnoose, Head – Press, Information and Development Cooperation – since the operation began, 200,000 mt of fuel had been delivered, including a consignment of 40,000 MT by Indian Oil Corporation, outside the line of credit facility, in February 2022.

Treasury Secretary S.R. Attygalle, who signed for the USD 500 mn credit line on behalf of Sri Lanka, recently resigned after Basil Rajapaksa had lost the finance portfolio. Sri Lanka reached agreement with the Export and Import Bank of India in this regard.

Punnoose said in addition to the USD 500 mn credit line in response to a separate and urgent request from Sri Lanka, New Delhi had swiftly finalised a credit facility of USD 1 billion for the supply of essential items, including food and medicines. The first shipments of rice, under this facility, would be here soon, the official said.

Earlier in January this year, India provided financial assistance to Sri Lanka that included a credit swap of US$ 400 million and deferment of an Asian Clearing Union payment of over USD 515 million. In cumulative terms, Indian support to the people of Sri Lanka, in the first quarter of 2022, is in excess of US$ 2.5 billion, the Indian spokesperson here said.

Referring to travel advisories issued by several countries, PUCSL Chairman Ratnayake emphasised that large scale protests would have a catastrophic impact on efforts to attract tourists. Pointing out those violent incidents outside President Gotabaya Rajapaksa’s private residence at Pangiriwatte Road, Mirihana, on March 31, and continuing countrywide protests, including the ongoing campaign opposite the Presidential Secretariat, would undermine efforts to stabilise the situation.

Ratnayake said that the delay on the part of all those concerned at every level to take tangible measures to address issues at hand could increase pressure on the national economy. Responding to queries, Ratnayake said that early stabilisation of the national economy couldn’t be achieved if protests undermined political stability.

All News Advertisement

News

Navy seize an Indian fishing boat poaching in northern waters

Published

1 hour ago

2026/01/3

Priyan

During an operation conducted in the dark hours of 01 Jan 26, the Sri Lanka Navy seized an Indian fishing boat and apprehended 11 Indian fishermen while they were poaching in Sri Lankan waters, off Kovilan of Kareinagar, Jaffna.

The Northern Naval Command spotted a group of Indian fishing boats engaging in illegal fishing, trespassing into Sri Lankan waters. In response, naval craft of the Northern Naval Command were deployed to drive away those Indian fishing boats from island waters off Kovilan.

Meanwhile, compliant boarding made by naval personnel resulted in the seizure of one Indian fishing boat and apprehension of 11 Indian fishermen who continued to engage in illegal fishing in Sri Lankan waters.

The seized boat (01) and Indian fishermen (11) were handed over to the Fisheries Inspector of Myliddy, Jaffna for onward legal proceedings.

Latest News

Tri-Forces donate LKR. 372 million, a day’s pay of all ranks to ‘Rebuilding Sri Lanka’ Fund

Published

8 hours ago

2026/01/3

Priyan

Members of all ranks from the Sri Lanka Army, Sri Lanka Navy and Sri Lanka Air Force have collectively donated a day’s basic salary to the ‘Rebuilding Sri Lanka’ Fund, which was established to restore livelihoods and rebuild the country following the devastation caused by Cyclone Ditwah.

Accordingly, the total contribution made by the Tri-Forces amounts to LKR. 372,776,918.28.

The cheques representing the financial contributions were handed over on Wednesday (31 December) at the Presidential Secretariat to the Secretary to the President, Dr. Nandika Sanath Kumanayake.

The donations comprised LKR. 250 million from the Commander of the Army, Major General Lasantha Rodrigo; LKR. 73,963,879.71 from the Commander of the Navy, Rear Admiral Kanchana Banagoda and LKR. 48,813,038.97 from the Commander of the Air Force, Air Marshal Vasu Bandu Edirisinghe.

Secretary to the Ministry of Defence, Air Vice Marshal Sampath Thuyacontha, was also present on the occasion.

News

CEB demands 11.57 percent power tariff hike in first quarter

Published

10 hours ago

2026/01/3

Thilina Walpola

The Ceylon Electricity Board (CEB) has submitted a proposal to the Public Utilities Commission of Sri Lanka (PUCSL) seeking an 11.57 percent increase in electricity tariffs for the first quarter of 2026, citing an estimated revenue shortfall and additional financial pressures, including cyclone-related damages.

According to documents issued by the PUCSL, the proposed tariff revision would apply to electricity consumption from January to March 2026 and includes changes to both energy charges and fixed monthly charges across all consumer categories, including domestic, religious, industrial, commercial and other users.

Under the proposal, domestic electricity consumers would face increases in unit rates as well as fixed monthly charges across all consumption blocks.

The CEB has estimated a deficit of Rs. 13,094 million for the first quarter of 2026, which it says necessitates the proposed 11.57 per cent tariff hike. The utility has noted that any deviation from this estimate whether a surplus or a shortfall will be adjusted through the Bulk Supply Tariff Adjustment (BSTA) mechanism and taken into account in the next tariff revision.

In its submission, the CEB said the proposed revision is aimed at ensuring the financial and operational stability of the power sector and mitigating potential risks to the reliability of electricity supply. The board-approved tariff structure for the first quarter of 2026 has been submitted to the PUCSL for approval and subsequent implementation, as outlined in Annex II of the proposal.

The CEB has also highlighted the financial impact of Cyclone Ditwah, which it said caused extensive damage to electricity infrastructure, with total losses estimated at around Rs. 20 billion. Of this amount, Rs. 7,016.52 million has been attributed to the first quarter of 2026, which the utility said has a direct bearing on electricity tariffs.

The CEB warned that if external funding is not secured to cover the cyclone-related expenditure, the costs incurred would need to be recovered through electricity tariffs in the second-quarter revision of 2026.

Meanwhile, the PUCSL has said that a decision on whether to approve the proposed tariff increase will be made only after following due regulatory procedures and holding discussions on the matter.

By Sujeewa Thathsara ✍️