News

Wimal unfazed by loss of profit-making Lanka Phospate Co.

Published

5 years ago

2021/06/21

Sahan Weerasooriya

… hopes new minister will sustain successful operations

By Shamindra Ferdinando

National Freedom Front (NFF) leader and Industries Minister Wimal Weerawansa yesterday (20) said that he hoped Lanka Phosphate Company would continue to achieve success under the purview of any other ministry.

A spokesperson for NFF quoted Minister Weerawansa as having said that he wished Phosphate deposit at Eppawela would be utilised in a way beneficial to the country for generations to come.

The Minister said so in the wake of President Gotabaya Rajapaksa bringing Lanka Phosphate under Agriculture Minister Mahindananda Aluthgamage by way of a special gazette notification. This has been done at the expense of Minister Weerawansa.

The NFF official emphasised that the loss-making Lanka Phosphate Company had been transformed during Weerawansa’s tenure as the Industries Minister and by June 2021 the state venture recorded Rs 104 mn operating profit.

The NFF also released relevant documents pertaining to losses suffered before Weerawansa took over the Industries Ministry. Pointing out that the public sector enterprise had suffered an operating loss of Rs 80.8 mn loss in 2016/2017 financial year, the NFF said that Industries Ministry under Weerawansa’s leadership proved that bankrupt institutions, too, could be turned around.

The new administration now bore the responsibility for sustaining the successful operation, the NFF said, adding that the party expected the continuation of work undertaken by Minister Weerawansa. The NFF pointed out that Lanka Phosphate Company undertook production of organic fertiliser during an initial Covid-19 eruption and was aiming to expand its operation. Had the company achieved success valuable foreign exchange could have been saved, the party said, estimating annual expenditure on fertiliser imports at Rs 33 bn.

The phosphate project has been under the Geological Survey and Mines Bureau since its inception in 1974. Having set up a Phosphate company in 1991 and an abortive attempt was made in 2000 to sell it off to a private company, the NFF said, pointing out that since then the enterprise remained under the Industries Ministry. However, the previous government brought it under the Agriculture Ministry as the then minister in charge of portfolio Duminda Dissanayake represented the area where the Eppawela phosphate deposit was, the NFF said.

After the change of government in 2019, Lanka Phosphate Company was brought back under the Industries Ministry, the NFF said.

Minister Weerawansa explained measures taken by him to transform the loss-making venture and manage the operation in a way that brought benefits to the farming community.

He said that at the time of the issuance of the gazette they were planning to launch a new product Biogenic Microbial Phosphate as part of the overall development of the enterprise. The former JVP heavyweight denied accusations that he interfered with the management or in any other way hindered the smooth running of the operations.

The NFF said that it wouldn’t worry over the transferring of Lanka Phosphate Company to the Agriculture Ministry though some believed that the development should be examined against the backdrop of emerging differences between the ruling Sri Lanka Podujana Peramuna (SLPP) and its constituents. Minister Weerawansa last week joined seven other lawmakers to issue a statement condemning the General Secretary of the SLPP Attorney-at-Law Sagara Kariyawasam for demanding Energy Minister Attorney-at-Law Udaya Gammanpila’s resignation over hike in fuel prices.

The NFF said that the government at least didn’t inform the party of the intended change. It could have been handled in a much better way, the party said, urging the SLPP administration to be mindful of the relationship among the constituents.

All News Advertisement

Latest News

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

Published

4 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

7 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 ✍️

News

Health Minister sends letter of demand for one billion rupees in damages

Published

7 hours ago

2026/01/3

Thilina Walpola

Ondansetron controversy

Minister of Health and Mass Media Dr Nalinda Jayatissa has sent a letter of demand for Rs. 1 billion in damages from YouTube content creator Dharmasri Kariyawasam, accusing him of disseminating false and defamatory material linking the Minister to the importation of Ondansetron and inciting public unrest.

The notice, sent through the Minister’s lawyers, states that investigations are currently under way into 10 medicines, including Ondansetron Injection, manufactured by India-based Maan Pharmaceutical Limited.

Ondansetron Injection was among nine injectable drugs recently suspended by the National Medicines Regulatory Authority (NMRA) following reports of patients administered with the drug suffering adverse complications.

Despite the ongoing investigations, Kariyawasam allegedly aired a widely viewed programme on his YouTube channel titled “The hidden story of the Indian drug that claimed lives, Mayor Balthazaar’s relative, and Minister Nalinda’s cover-up.”

According to the letter of demand, the programme falsely portrayed Minister Jayatissa as being directly responsible for importing the drug, colluding with the supplier, and attempting to conceal the issue, while depicting him as indifferent to public suffering.

The Minister’s lawyers maintain that these allegations are entirely false and defamatory, citing passages in which Kariyawasam allegedly accused Jayatissa of lying about the supplier, concealing facts related to PTC Medicals (Pvt) Ltd., the actual importer, and showing a lack of concern over deaths purportedly linked to the drug.

The programme also claimed links between the directors of PTC Medicals and family members of Colombo Mayor Vraîe Cally Balthazaar, implying political favouritism.