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Who prevents Litro from using available equipment?

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Asantha responds to Udaya’s accusations

By Shamindra Ferdinando

Former Ceylon Petroleum Corporation (CPC) Chairman Asantha de Mel yesterday (27) said that Energy Minister Udaya Gammanpila should make a genuine effort to enter the lucrative LPG (liquid petroleum gas) market.

Minister Gammanpila, who is also an attorney-at-law, could find out who had prevented state owned Litro (formerly Shell) to undertake the project without further delay, De Mel said. “Consumers will benefit if the state entered the market. There cannot be any justification in depriving CPC /Litro opportunity to use available equipment.

The former national cricketer said so in response to The Island query whether he accepted responsibility for losses suffered in 2008 to the tune of Rs 37 mn when his controversial bid to enter the LPG market went awry.

The Island raised the issue with de Mel in the wake of Energy Minister Gammanpila calling for a report on what he called squandering of public funds on equipment et al which were never used. The former Chairman said that the incumbent minister couldn’t be unaware of what was going on at the time.

Mel said: “When Laugfs sought to extend the exclusive contract it had with the CPC to procure the entire stock of LPG gas output at the Sapugaskanda refinery, I on behalf of the CPC took up the position; the buyer should pay the real market price. They disagreed. When they declined to work out an agreement fair by both parties, I took the initiative to procure equipment necessary to begin bottling gas. They moved the Supreme Court against me over cases of hedging bringing my tenure as CPC Chairman to an end.”

The former CPC Chairman said that legal action prevented them from using the LPG produced at their own facility. Contrary to claims and unsubstantiated allegations, De Mel emphasized that the CPC undertook the project with the cabinet approval. The then Petroleum Minister A.H.M. Fowzie submitted a cabinet paper in that regard. Minister Gammanpila could easily verify it with the Cabinet office, De Mel said, adding that he wouldn’t even bother to respond to the Energy Minister if The Island had not raised the issue with him.

An irate De Mel said that for 12 years no one bothered to use the available bottling facility at Sapugaskanda. Now that the Minister Gammanpila had vowed to uncover the truth, the Pivithuru Hela Urumaya leader should first of all inquire into the circumstances under which the Laughs had entered into an exclusive agreement with the CPC to procure the entire LPG stock produced at Sapugaskanda at terms detrimental to the government. How could they expect the agreement to continue without any alterations, De Mel asked, expressing concern the incumbent government wouldn’t take tangible measures in that regard.

According to him, Laugfs moved court when the CPC was planning to call for tenders to procure gas cylinders.

Responding to another query, he said the Energy Ministry should reveal the amount of LPG produced at Sapugaskanda refinery that was made available to Litro and Laugfs, the per percentages and how the ministry intended to utilize the equipment acquired in 2008.

In April 2011, the media reported the government directing that CPC LPG output be shared 50 per cent each between Litro and Laugfs after the CPC unilaterally decided to split it 70 % to 30% in favour of Litro. The CPC moved prompted Laugfs to complain to the government.

The former CPC Chairman emphasized that prevention of state from competing with the private sector couldn’t be justified under any circumstances.

Accusations over hedging agreements signed by de Mel with two banks, in respect of buying fuel in late Nov 2008 led to his suspension by the Supreme Court. The SC also recommended that Minister Fowzie be replaced. Of the two petitions against De Mel, one was filed by the chairman of Laugfs gas company W.K.H. Wegapitiya, another petition by Kiniyawala Palitha thera, the then UNP MP Ravi Karunanayake MP and Ravi Jayawardena.



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Hatton National Bank donates Rs. 100 Million to the ‘Rebuilding Sri Lanka’ Fund

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The ‘Rebuilding Sri Lanka’ Fund, launched to support communities affected by Cyclone Ditwah and to facilitate national recovery efforts, continues to attract generous support from local and international organizations, the business community and philanthropists.

In this context, Hatton National Bank has contributed Rs. 100 million to the Fund. The cheque was presented on Tuesday (16) at the Presidential Secretariat by the Bank’s Managing Director/Chief Executive Officer,  Damith Pallewatte, together with Chief Operating Officer  Sanjaya Wijemanna, to Secretary to the President Dr. Nandika Sanath Kumanayake.

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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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