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USD 587 needed for planned fuel imports

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By Rathindra Kuruwita

Sri Lanka must pay 587 million US dollars for planned fuel imports, until mid-August, Minister of Power and Energy, Kanchana Wijesekera yesterday (03) told the media in Colombo.This amount was equal to 217 billion rupees, at an exchange rate of 367 rupees per dollar, he said.

On Monday, Sri Lanka had to pay the Indian Oil Company (IOC) 34 million dollars and another 76 million dollars to a Malaysian company. On 06 July another 34 million dollars will have to be paid to the IOC.

“On 08 July, we need to pay for three shipments. 19.95 million dollars to the IOC. 49.54 million dollars to Singapore company Vitol and 66.53 million dollars for United Arab Emirates-based Coral Energy DMCC . This comes to 136.2 million dollars. On 10 July we must pay 36.43 million dollars for a furnace oil shipment, and 82 million dollars to Coral for a shipment of crude oil. These 316 million dollars are for ships that will arrive in July,” he said.The Minister added that 122 million dollars had to be paid to the IOC for two ships carrying petrol and 67 million for one carrying diesel in the coming weeks.

“These ships will arrive by mid-August,” he said.

The Minister said that they must pay for suppliers upfront and initially the Central Bank of Sri Lanka (CBSL) and the Treasury had insisted that they could allocate only 125 million US dollars for fuel imports.

“Given this limitation, we tried various methods to procure fuel, but without success. We tried new suppliers but that also led to many issues. So, ultimately, the President and Prime Minister decided that the Ministry has to be given money to purchase fuel,” he said.

Minister Wijesekera said that he had spoken to the Governor of the CBSL and Treasury Secretary for foreign currency to purchase fuel.

“It’s not easy. They have promised to give us rupees and we have to find dollars. We need to get the dollars from exporters or international banks. Will they give us dollars at 367 rupees? What will happen if they ask for a higher exchange rate? I will ask the Cabinet today to approve paying higher rates if the need arises,” he said.

Oil companies will only provide oil after payments are made because Sri Lanka owes these companies hundreds of million dollars. Between November 2021 and April 2022, alone CPC had to pay 326 million dollars to companies through the Bank of Ceylon, 242 million dollars through the People Bank and 80 million through other banks, he said.

“The CBSL Governor is talking to seven suppliers. He has given payment schedules so that weekly or monthly payments could be made. We have given them guarantees. Still, they won’t supply new shipments unless upfront payments are made.

Minister Wijesekera said Sri Lanka had, on 30 June, paid 11 million USD to buy 7500 metric tons of diesel from LIOC. The diesel consignment will be sent from LIOC facility in Trincomalee to Colombo today (04). By Sunday afternoon, CPC had 12,774 metric tons of diesel, 1,414 metric tons of petrol 92, 2647 metric tons of petrol 95, 233 metric tons of super diesel, 500 metric tons of jet fuel and 29,000 metric tons of furnace oil used to produce electricity, he said.The Minister said that the first fuel shipment to the country for July is a diesel shipment that will arrive on 08 or 09 July. This will be supplied by a UAE company. Singapore’s Vitol will send another ship carrying diesel between 11 and 14 July. Another diesel shipment might arrive between 15 and 17 July. However, this shipment had not been finalised yet, he said.

“On 22 or 23 July a patrol shipment will be provided by the IOC. The diesel shipment that might arrive between 15 and 17 July is also to be supplied by the IOC. The IOC has asked us to settle 50% of the payment by today and deposit the rest by Wednesday. We requested them to let us pay 30% by Wednesday. We have also spoken to the Malaysian government and they might provide us with 50,000 metric tons of petrol and 10,000 metric tons of kerosene. This has not been finalized. If this works out, we might get a petrol shipment by 10 or 11 July,” he said.

Wijesekera added that the crude oil shipment expected from UAE’s Coral will consist of 135,000 metric tons. On 12 August another crude oil ship is expected, he said.

Speaking about his visit to Qatar, Minister Wijesekera said he had met a number of officials and they might provide Sri Lanka diesel, crude oil, furnace oil and gas at a concessionary rate, at the discretion of the Emir of Qatar. “Even if this happens, it won’t happen overnight. If we need to buy oil, we could buy directly from their private companies, the Qatar officials said. Qatar is not an exporter of petrol or jet fuel. They are a gas giant, though. The Qatari officials said that they had proposed to build an LNG terminal in 2019, but there had been no response from Sri Lanka,” he said.

The Minister said that he had also spoken to the Qataris about oil exploration in Mannar.Minister Wijesekera said he had asked CPC officials to provide him with a procurement plan till December. He added that the CPC was overstaffed.

The Minister urged the expatriate Sri Lankan workers to send in remittances through the banking system and help revive the economy and ameliorate the suffering of fellow citizens.

“Once the fuel starts coming in the queues will disappear. I want to add another thing. There is now a token system in place. However, we have never asked for this system. What I said last month, announcing that we will only be providing fuel to essential services, was to give a token to people who were in the queue at that time. I specifically asked people not to join queues anew. Now only LIOC is distributing fuel to private vehicles, and they have started a token system. This is not what we wanted,” he said.



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I invite you to step into 2026 with renewed energy, hope, and determination – PM

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Prime Minister Dr Harini Amarasuriya in her New Year message invited all Sri Lankans to step into 2026 with renewed energy, hope, and determination.

The PM’s New Year message:

“As we move forward to the New Year of 2026, it is timely to reflect on the year 2025 that has passed. The year 2025 can be granted as a year having made a number of decisive and progressive steps with a people oriented government.

I am confident that, within a new political culture, we were able to strengthen transparency in state governance and lay the foundation for an efficient and corruption free public service.

We can be satisfied with the progress achieved in several key areas during 2025, including economic stability, the increasingly positive and optimistic international perception towards our country, the establishment of transparent systems of governance, and the strengthening of the sovereignty of the legislation system.

However, the unfortunate disastrous situation we experienced towards the end of 2025 was a challenging period for our nation. While it deeply moved us all, the spirit of solidarity, compassion, and collectivity shown by Sri Lankans during that difficult situation received admiration across the world.

As we step into the New Year 2026, we hold commitment to overcoming those challenges, healing from the disaster, and restoring the lives and livelihoods that were affected.

Moving forward with the goals such as initiating qualitative and sustainable transformation in the education sector, digitalizing all sectors of the public service, creating an enabling environment for entrepreneurs, artists, and creators with innovative ideas to rise on the global stage, and building a compassionate, environmentally friendly society free from drugs and harmful substances I would like to remind, at this moment, that the responsibility of rebuilding this nation rests upon the entire nation, together with the government, transcending differences of ethnicity, religion, or political affiliation, and united by a strong Sri Lankan identity.

Transforming all the challenges we experienced in the past year into sources of strength, I invite you to step into 2026 with renewed energy, hope, and determination.

I extend wishes for a victorious New Year filled with peace, happiness, and prosperity.”

 

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National Audit Office reveals NHSL lapses

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Reagent scandal:

Deputy Director of the National Hospital, Dr. Rukshan Bellana, has been interdicted by Health Service Committee (HSC) of the Public Service Commission (PSC) following a preliminary inquiry into several complaints received against him, government sources said.

They said certain matters referred by the Secretary to the Prime Minister Dr. Harini Amarasuriya and Inspector General of Police (IGP) Priyantha Weerasooriya, too, had been taken into consideration.

A Health Ministry official said there was no truth in Dr. Bellana’s claim, as reported in the 30th December edition of The Island, that the Health Ministry had sacked him on the approval of the HSC of the PSC over him taking up the massive Rs 900 mn fraud involving the supply of chemical reagents to the laboratory of the National Hospital of Sri Lanka (NHSL) in Colombo, which is the premier hospital in the country.

Sources said that there was absolutely no basis for this allegation. The official said that Dr. Bellana had been interdicted for issuing statements that caused controversy and turmoil among the public. That’s the most serious offence that had been taken into consideration when the decision to interdict him was taken, sources said. “There will be a spate of charges in the charge sheet to be issued soon.”

The interdiction of medical officers could not be carried out by the Ministry of Health and Mass Media, as the Ministry was not vested with disciplinary authority, sources added.

Dr. Bellana said he stood by what he revealed and had evidence to support his claim.

Health Ministry sources acknowledged that the National Audit Office (NAO) on June 6, 2025, had called for information in respect of chemical reagents procured by the National Hospital Colombo NHSL laboratory from 2022 to 2024.

Responding to another query, sources said that a separate investigation by the Internal Audit of the Ministry of Health was on into issues raised by the Audit query pertaining to the lab of the NHSL.

Having pointed out that the government paid Rs. 894,186,168 (2022), Rs. 713,652,615 (2023) and Rs. 936,152,767, totalling Rs 2,543,991,550 for chemical reagents during that period, NAO sought an explanation from the Health Ministry as to how Rs 12,894,697 worth of chemical reagents past expiry dates were found in six laboratories at NHSL during examination carried out on April 7,8,10,21 and 22 in 2025.

The NAO also raised the failure on the part of the relevant authorities to secure the approval of the Medical Supplies Division (MSD) before placing orders with local suppliers for chemical reagents.

The Health Ministry was questioned over the absence of proper stock keeping regarding Rs 2544 mn worth chemical reagents issued to NHSL laboratories. The NAO ascertained that Financial Regulations 751 had been violated. As a result of the absence of credible stock keeping, the NAO hadn’t been able to ascertain whether shelf-life expired chemical reagents were misused, the government authority stated.

The NAO asked for an explanation regarding the payment of Rs 912,838 over the required amount to a local private supplier (NAO named the supplier) for chemical reagents obtained.

In one of the most serious observations, NAO pointed out that shelf-life expired chemical reagents had been used for tests. The NAO raised this while pointing out the Health Ministry violated a key prerequisite in the procurement of chemical reagents that their shelf life should be at least 85% at the time of receiving consignments. Instead, all stocks procured had less than six months shelf life, NAO stated.

NAO declared that some suppliers refrained from mentioning the date of manufacture and the time of expiry.

The above mentioned were some of the issues that had been raised by Audit Superintendent Y.M. Sugathadasa on behalf of the Auditor General who is the head of the NAO. The post of AG remains vacant since December 8, 2025. Earlier incumbent W.P.C. Wickremeratne retired on April 8, 2025 after having served as AG for several years. President Anura Kumara Dissanayake and the Constitutional Council haven’t been able to reach consensus on a permanent appointment yet.

By Shamindra Ferdinando ✍️

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NPP’s CMC budget passed after four Opp. members switch allegiance

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The Opposition has claimed that the government forced three of its Colombo Municipal Council members to to skip yesterday’s vote on the annual budget of the Council. The three councillors who voted with the SJB-led Opposition on 22 Dec., to defeat the NPP, skipped yesterday’s vote.

Two of them didn’t turn up yesterday while the other one left the Council early, claiming his wife was not well. One of the four SLMC councillors switched his allegiance to the NPP. having voted with the Opposition on 22 Dec.

As a result, the CMC’s annual budget was passed with a majority of two votes.

The budget proposal received 58 votes in favour, while 56 councillors voted against it. Last week, the Opposition obtained 60 votes to defeat it, while the NPP managed to secure only 57.

When the 2026 budget of CMC was first presented to the council on 22 December, 60 councilors voted against it while 57 members voted for the budget.

In the last Local Government Elections, the NPP secured power in the CMC and its mayoral candidate Vraie Cally Balthazar was elected as the Mayor of Colombo by securing 61 votes. (SF)

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