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

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… 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.



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French Navy Ship PROVENCE arrives in Port of Colombo

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The French Navy Ship PROVENCE arrived at the Port of Colombo on a formal visit on Sunday (16 Mar 25) morning.

She was welcomed by the Sri Lanka Navy in compliance with the time-honoured naval traditions.

The 142.20m long Destroyer is Commanded by Captain Lionel SIEGFRIED and manned by a crew of 160 members.

During the stay in the island, crew members of PROVENCE will visit some tourist hotspots in the country and the ship is scheduled to depart the island on 20 Mar.

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Court of Appeal dismisses Ex-IGP’s writ petition

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The Court of Appeal this [17] morning  dismissed the writ petition filed by former Inspector General of Police (IGP) Deshabandu Tennakoon, seeking an interim injunction to prevent the execution of the arrest order issued by the Matara Magistrate’s Court against him.

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Project to distribute smart boards for 1,000 schools with the goal of enhancing education has completely failed to meet its objectives and the investment of LKR 1.7 billion has been underutilized -PM

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Prime Minister Dr. Harini Amarasuriya stated that the project to distribute smart boards for 1,000 schools with the goal of enhancing education has completely failed to meet its objectives and the investment of LKR 1.7 billion has been underutilized.

The Minister of Education, Higher Education and Vocational Education, Prime Minister Dr. Harini Amarasuriya made these remarks in the Parliament complex on Saturday [March 15, 2025] while discussing the project to establish networked classrooms by facilitating smart boards to the school system.

The Cabinet Memorandum No. AMP/24/0385/601/027 and the Cabinet decision dated March 4, 2024 has been presented for the approval of the provision of digital smart boards and other related equipment to 1,000 selected schools, with the objective of enhancing education through the establishment of a systematic network of smart classrooms within the school system funded by the Sri Lanka Telecommunications Regulatory Commission (TRCSL).

Subsequently, an additional Cabinet Memorandum, No. AMP/24/0978/630/009, dated May 14, 2024, was presented, proposing the implementation of this project in alignment with the project proposed by Chinese government for digitalizing Schools. Under this Chinese-funded project, plans were made to establish a centralized control center and a studio facility, along with the provision of an additional 500 smart boards. Accordingly, the integration of both projects was proposed to create a network of smart classrooms across 1,500 schools.

The cabinet decision has been presented requiring Sri Lankan Government to purchase smart boards with specifications identical to the smart boards which were proposed to be distributed by the Chinese Government.

In line with the Cabinet decision of May 14, 2024, the procurement for the 1,000 smart boards began in July 2024. However, at the time of purchase, the project proposed by the Chinese Government was still at the discussion stage, and no official agreement had been reached regarding the technical specifications of the smart boards.

However, the procurement was carried out through the Sri Lanka State Trading (General) Corporation without a competitive bidding process, relying on price quotations obtained from a single supplier based on unclear sources that were not officially verified by the Chinese government. The Sri Lanka Telecommunications Regulatory Commission incurred the full cost of LKR 1.7 billion, with an additional LKR 430 million allocated for services and installation.

The aforementioned procurement appears to have been conducted at an unusually accelerated pace when compared to the standard procedure typically followed for high-value procurements. Specifically, price quotations were requested on July 5, 2024, opened on July 15, 2024, and by July 16, 2024, the Technical Evaluation Committee had completed and submitted the report. Subsequently, the report was reviewed by the Standing Procurement Committee appointed by the Cabinet on July 17 and 18, 2024, with recommendations being provided on the same day. These recommendations were then submitted to the Cabinet on July 23, 2024, and approval was granted on July 30, 2024. Followed by this, the purchase requisition was issued to the supplier on August 5, 2024. Accordingly, the entire procurement process was completed within a span of one month.

As part of this procurement, a Letter of Credit was opened to facilitate the payment of USD 3,135,392.50 for 1,000 smart boards to Intelligent Express Limited Hong Kong, which has been identified as a representative of Huawei. While the relevant Cabinet paper indicated Huawei as the designated manufacturer supplying the smart boards under the Chinese funding project, the Chinese government has not yet confirmed the selection of such a supplier for this project.

According to aforementioned purchase requisition, the purchased smart boards and related equipment were delivered to the Ministry of Education in October 2024 and are currently stored at Pattala Gedara Teacher’s Training College. Although the procurement of the aforementioned Smart boards by the Sri Lankan Government has been finalized, the relevant project, which was intended to be implemented under the funding of Chinese government, has not yet commenced and a final agreement regarding its implementation has not been reached.

Prior to reaching a final agreement on the network integration facilities and centralized system proposed by the Chinese government, the procurement of these smart boards has resulted in the inability to utilize the equipment for the intended purpose. It is expected that the Chinese aid project is at the discussion stage, and the implementation may extend until the end of this year. Further, no official decision has been made regarding the selection of a supplier for the project.

Given this situation, if the 1,000 smart boards and other equipment currently stored in warehouses are to be distributed to schools, school principals must be provided with clear instructions on their proper use. However, due to the delay in implementing the project under the funding of the Chinese government, specific guidelines on the installation and utilization of the equipment cannot yet be issued.

Since network integration cannot be carried out at this stage, these smart boards can only be used as standalone classroom units. As a result, the objectives of the project will not be met, and the investment of LKR 1.7 billion made might be considered to be underutilized.

A formal investigation has been initiated to determine whether financial and procedural irregularities have occurred in this procurement. Additionally, discussions are currently continued with the Chinese government, and efforts are being made to secure the proposed facilities from China at the earliest convenience.

[Prime Minister’s Media Division]

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