News

Several political parties belonging to the Opposition, including the Samagi Jana Balawegaya (SJB), have decided to boycott Parliament this week.

Speaking in Parliament today (21), Leader of the Opposition Sajith Premadasa said his party would boycott parliament this week, as they have failed to address the crises currently being faced by the people of the country.

Meanwhile, Anura Kumara Dissanayake, leader of the National People’s Power (NPP) also stated that his party would boycott Parliament this week.

He suggested that the government submit a short-term programme to address the ongoing crisis, to take the country forward.

The founder and President Emeritus of Ceylon Biscuits Limited (CBL) Group, Deshamanya Mineka Wickramasingha has passed away at the age of 87.

After almost 48 years at the helm of the organisation he founded in 1968, the visionary entrepreneur had retired from the position of Chairman of the CBL Group in 2015.

Ramya Wickramasingha, who was CBL’s Deputy Chairman was later appointed as Chairman of the CBL Group. However, Mineka P. Wickramasingha had continued to mentor the group in his new role as President Emeritus.

Committed to building a Sri Lankan business that was driven by core family values and a part of a greater purpose, Mineka Wickramasingha had developed a protein enriched children’s biscuit in 1967 that became a nationwide initiative with the Ministry of Education to help prevent malnutrition in schoolchildren and, the start of the CBL story.

Beginning with Munchee, he created brands that were sought after across the world and enriched the lives of every Sri Lankan.

He was conferred the title of Deshamanya, which is the second highest national civil honour awarded by the Sri Lankan Government, for exceptional and highly meritorious service to the nation.

A total of 21 protesters including a Buddhist monk have been arrested by the police for obstructing two entrances of the Finance Ministry in Colombo.

Police said that the arrested protesters includes a Buddhist monk, four females and another 16 males.

They had been engaged in a protest this morning (20) blocking the entrance to the Ministry of Finance while the protesters had also erected tents near the entryway.

The Police Media Unit said that this had resulted in officials of the Finance Ministry, Presidential Secretariat and the Treasury facing various difficulties in reporting for duties and essential services.

The release further states that the public who came to obtain services from these institutions also had to face various difficulties.

Police said that even the meeting of the Secretary to the Ministry of Finance with the IMF representatives who have arrived in the country, had also been delayed due to the blockade at the entrance to the ministry.

The police and STF personnel had been deployed subsequently to disperse the protesters while they had arrested 21 protesters.

The arrested suspects are to be produced before courts later today (20).

The protest had been organised by those protesting at the Galle Face Green. They had blocked the area for traffic from near the Lotus Road in Colombo Fort all the way up to the Finance Ministry entrance.

The driver of a three-wheeler died earlier today (16) in Panadura, after waiting in a fuel queue for two days.

The victim, identified as a 53-year-old father of three, had been at the Egoda Uyana filling station with another three-wheeler driver the previous day, and had arrived at the Wekada petrol station around 07:00 pm last night.

The victim is believed to have suffered from a heart attack while having dinner with a fellow three-wheeler driver and was subsequently rushed to the Panadura Base Hospital. He, however, was pronounced dead by this time, a hospital official said, adding that he had passed on the way.

The brother of SLPP Parliamentarian Sanath Nishantha was arrested by police of assaulting a civilian.

Jagath Samantha, the 38-year-old brother of SLPP Parliamentarian Sanath Nishantha was arrested by police of assaulting a civilian who was in line at a filling station in Arachchikattuwa on Sunday (19).

The suspect, a member of the Arachchikattuwa Pradeshiya Sabha was arrested on Monday (20) morning.

He is charged with obstructing the duties of a police officer, and assaulting a civilian.

The suspect will be produced in court on Monday (20).

SriLankan Airlines issued a clarification on reports circulating about flight UL 504 avoiding a possible mid-air collision with another aircraft.

SriLankan Airlines confirmed that its pilots operating UL 504, which departed from London to Colombo on 13 June 2022, were able to safely commandeer the flight without an incident.

Contrary to news reports, SriLankan confirmed that UL 504 was not at risk of a mid-air collision with another aircraft at any point.

The vigilance of the pilots and the state-of-the-art communication & surveillance system onboard the aircraft enabled safe passage for UL 504.

Further, SriLankan Airlines commends the timely action of the pilots operating UL 504, which ensured the safety of all passengers, crew and equipment onboard UL 504.

State-owned LITRO Gas denied the allegation levelled by Nagananda Kodithuwakku regarding an alleged tender fraud that was committed at the state-owned gas company, stating that his comments come in a low-level attempt to accomplish political goals by fabricating a news from a false part of a popular story.

The sources on the condition of anonymity explained that an international tender was launched for the purchase of 280,000 metric tonnes of gas for LITRO for 2022 – 2023 and that its lowest bid, which was ended on 16/03/2022, was tendered to SIAM Gas for a shipping cost of US $ 96 per metric tonne, adding that this was already public record and there is no evidence to suggest that Kodithuwakku had researched and found anything new.

Accordingly, Kodithuwakku is promoting false propaganda, knowingly or unknowingly, they added.

Kodithuwakku, who reveals only the date of the letter sent to SIAM on May 03, 2022 with the approval of the Cabinet, either does not know the entire contents of the letter or deliberately conceals the rest of the letter for his own purpose, the sources alleged.

Kodithuwakku conceals the facts that there is a shortage of gas in the current Sri Lankan market, LITRO had requested the Supplier (SIAM) to to provide 15,000 metric tonnes of gas for June considering the tender bid price being only US$ 96 per metric tonne as an emergency, as it takes some time to prepare standby letters of credit (SBLC) for the security of the Supplier, and the request was rejected outright by SIAM and urged on May 09, 2022 that a SBLC of US$ 30 million be issued via an international bank and that the gas could not be supplied until the issuance of such a LC, sources further disclosed to LNW.

They went on saying that Kodithuwakku has deliberately ignored the fact that LITRO is currently unable to provide a LC amounting to US$ 30 million due to the current crisis facing the country.

Replying to a letter from the state-owned gas company sent on May 03, 2022 requesting the supply of 15,000 metric tonnes of gas, SIAM responded on May 30, 2022 that such a consignment cannot be provided under this volatile situation and that they are able to provide 6,600 metric tonnes ten days after the issuance of a SBLC via a bank and that such an offer could be made for US$ 112 per metric tonne, not US$ 96.

In the backdrop, the second lowest bidder Oman Trading (OQ Trading) called for an emergency purchase of 15,000 metric tonnes of gas and they stated that at least 100,000 metric tonnes of gas should be purchased at a rate of US$ 129 per metric tonne. The rate was similar to the price they had initially offered for the tender.

The state treasury failed to provide them with SBLC due to the growing gas crisis locally and the inability of the lowest bidder SIAM to supply enough gas and worsening the situation, SIAM set out to offer conflicting prices. In the backdrop, the Sri Lanka LP gas market became a burning spot and the then LITRO Chairman Vijitha Herath sent a letter to the Finance Ministry on May 31, 2020 requesting financial assistance to obtain gas from OQ Trading in this emergency.

The Cabinet meeting held on 08/06/2022 accordingly concluded that SIAM would be the lowest bidder, but the government could not issue an SBLC in the event of a a recession and neither the bank nor the Treasury would be able to provide such facilities, urging the SIAM tender to be called off.

The Cabinet also directed that a new tender be issued expeditiously and that measures be taken to implement the procurement procedure on a more favourable basis considering the economic situation. It directed the relevant parties to obtain gas from OQ Trading, the second lowest bidder, for these urgent public needs and to meet those needs by working on favourable agreements on a more favourable credit basis amidst the economic challenges.

Therefore, Kodithuwakku ought to understand that it was an emergency purchase, not a preliminary tender, and that SIAM’s withdrawal was not due to commissions but because the GOSL was unable to issue SBLC on behalf of the company, the LITRO sources further pointed out.

They also alleged that Kodithuwakku is in an attempt to provoke unrest among the people by equating the gas price to that of LAUGFS, Rs. 6800, against the backdrop where current LITRO Chairman Muditha Peiris has pledged that the price of a domestic LITRO gas cylinder will not exceed Rs. 5,200.

New heads for state-owned media institutions including Rupawahini Corperation have been appointed by Media Minister Bandula Gunawardena.

Accordingly, Asanka Priyanath Jayasuriya has been appointed as the Chairman of the Rupawahini while Ganaka Amarasinghe appointed as the Chairman of the Independent Television Network (ITN).

Hadsan Samarasinghe has been appointed as the Chairman of the Sri Lanka Broadcasting Corporation (SLBC).

The Ceylon Petroleum Corporation and Lanka IOC have suspended the permits of 03 fuel trucks with immediate effect, Minister of Power and Energy Kanchana Wijesekara said this evening.

According to the minister, the permits were suspended pending investigations into 03 separate incidents reported on social media on illegal unloading of fuel.

Several videos circulated on social media showed several bowsers illegally unloading fuel, despite the ban on sale of fuel in cans, containers and bottles.

Taking to his official Twitter account, the lawmaker thanked those who brought these illegal activities to the notice of the authorities.

License of 3 Fuel trucks have been suspended immediately by CEYPETCO and LIOC pending further investigations in to the 3 Incidents reported on social media on fuel transport trucks illegally unloading fuel. I Thank everyone who brought the illegal activities to our notice.

— Kanchana Wijesekera (@kanchana_wij) June 18, 2022

M.C.C. Ferdinando has resigned as the Chairman of the Ceylon Electricity Board (CEB).

He has tendered his resignation to the Minister of Power and Energy, who has accepted the rresignation.

“I have accepted the letter of resignation tendered to me by the CEB Chairman Mr MMC Ferdinando,” the minister tweeted. .

He added that CEB Vice Chairman Nalinda Illangakoon will take over as the new Chairman of the Ceylon Electricity Board.

Illangakoon had previously served as Chairman of the National Youth Corps as well as the Skills Development Fund, Director of the Dangerous Drugs Administration and a Senior Manager of the Associated Newspapers.

He is the Chairman of the Complex Business Group and its owner. A former army officer, Illangakoon is also a commercial pilot who has also won several medals in various fields.

Ferdinando’s resignation comes in the wake of his recent controversial statement before the Committee on Public Enterprises (COPE).

During a meeting of the Committee on Public Enterprises (COPE) at the parliamentary complex on Friday (10), the CEB Chairman M.M.C. Ferdinando had claimed that the tender for the wind power plant in Mannar had been given to India’s Adani Group as a result of the pressure exerted by Indian Prime Minister Narendra Modi.

Ferdinando, who is the former Secretary to the Ministry of Power, told the committee that the President had informed him to award the tender to the Adani Group as there was pressure from the Indian Government to do so.

However, President Gotabaya Rajapaksa later issued a statement denying these allegations of undue authorisation for wind power project.

President Rajapaksa categorically stated that he had not at any time given authorisation to award a wind power project in Mannar to any person or any institution.

The President vehemently denied the statement made by the Chairman of the Ceylon Electricity Board at the Parliamentary Committee on Public Enterprises in this regard.

Ferdinando had later apologized over the statement made by him at the COPE meeting, regarding the awarding of the Mannar Wind Power project to Indian conglomerate Adani, and said he withdraws the statement which is totally incorrect.

Issuing a statement addressed to COPE Chair Dr. Charitha Herath, the former CEB chairman had said that he was compelled without limitation to express the word ‘Indian Prime Minister’ due to unexpected ‘pressure and emotions’ during the discussion.

Prime Minister Ranil Wickremesinghe has stated that it is his policy not to leave anyone hungry in the face of the food crisis.

Speaking at a meeting of the Committee on Food Security at the Prime Minister’s Office today (17), the Prime Minister said that although the food crisis could directly affect 4 million to 5 million Sri Lankans in the future, steps would be taken to control it.

He instructed the officials to pay more attention to the children and the adults in particular.

Prime Minister Wickremesinghe also directed the appointment of a committee headed by Parliamentarian Nimal Lansa to look into the mitigation efforts of the food crisis, adding that he wanted the plan prepared by this committee within two weeks.

He further said that 225 divisions should be handed over to the Members of Parliament and the rest to the top officials including the Secretaries to the Ministries and the Private Sector to provide leadership to develop and reach the targets of 336 Divisional Secretariats in the country under the Food Security Program. It was proposed to recruit graduates from the Divisional Secretariats for this purpose.

The Premier instructed the officials to give priority to providing food, gas and fuel to the fishing community.

Special emphasis was placed on food security, especially for children’s homes, nursing homes and homes for persons with disabilities.

Wickremesinghe also stressed the need for a medium and long term plan for a modern agricultural system that would create a regionally competitive market and called for it to be formulated urgently.

Sri Lanka may be compelled to buy more oil from Russia as the island nation hunts desperately for fuel amid an unprecedented economic crisis, the newly appointed prime minister said.

Prime Minister Ranil Wickremesinghe said he would first look to other sources, but would be open to buying more crude from Moscow. Western nations largely have cut off energy imports from Russia in line with sanctions over its war on Ukraine.

In a wide-ranging interview with Associated Press on Saturday, Wickremesinghe also indicated he would be willing to accept more financial help from China, despite his country’s mounting debt. And while he acknowledged that Sri Lanka’s current predicament is of “its own making,” he said the war in Ukraine is making it even worse – and that dire food shortages could continue until 2024. He said Russia had also offered wheat to Sri Lanka.

Wickremesinghe, who is also Sri Lanka’s finance minister, spoke to the AP in his office in the capital, Colombo, one day shy of a month after he took over for a sixth time as prime minister.

Appointed by President Gotabaya Rajapaksa to resolve an economic crisis that has nearly emptied the country’s foreign exchange reserves, Wickremesinghe was sworn in after days of violent protests last month forced his predecessor, Rajapaksa’s brother Mahinda Rajapaksa, to step down and seek safety from angry crowds at a naval base.

Sri Lanka has amassed US$51 billion in foreign debt, but has suspended repayment of nearly US$7 billion due this year. The crushing debt has left the country with no money for basic imports, which means citizens are struggling to access basic necessities such as food, fuel, medicine – even toilet paper and matches. The shortages have spawned rolling power outages, and people have been forced to wait days for cooking gas and gasoline in lines that stretch for kilometres.

Two weeks ago, the country bought a 90,000-metric-ton (99,000-ton) shipment of Russian crude to restart its only refinery, the energy minister told reporters.

Wickremesinghe did not comment directly on those reports, and said he did not know whether more orders were in the pipeline. But he said Sri Lanka desperately needs fuel, and is currently trying to get oil and coal from the country’s traditional suppliers in the Middle East.

“If we can get from any other sources, we will get from there. Otherwise [we] may have to go to Russia again,” he said.

Officials are negotiating with private suppliers, but Wickremesinghe said one issue they face is that “there is a lot of oil going around which can be sourced back informally to Iran or to Russia.”

“Sometimes we may not know what oil we are buying,” he said. “Certainly we are looking at the Gulf as our main supply.”

Since Russia’s invasion of Ukraine in late February, global oil prices have skyrocketed. While Washington and its allies are trying to cut financial flows supporting Moscow’s war effort, Russia is offering its crude at a steep discount, making it extremely enticing to a number of countries.

Like some other South Asian nations, Sri Lanka has remained neutral on the war in Europe.

Sri Lanka has received and continues to reach out to numerous countries for help – including the most controversial, China, currently the country’s third-largest creditor. Opposition figures have accused the president and the former prime minister of taking on a slew of Chinese loans for splashy infrastructure projects that have since failed to generate profit, instead adding to the country’s debt.

Critics have also pointed to a beleaguered port in the hometown of then-President Mahinda Rajapaksa, Hambantota, built along with a nearby airport as part of China’s Belt and Road Initiative projects, saying they cost too much and do too little for the economy.

“We need to identify what are the projects that we need for economic recovery and take loans for those projects, whether it be from China or from others,” Wickremesinghe said. “It’s a question of where do we deploy the resources?”

The prime minister said his government has been talking with China about restructuring its debts. Beijing had earlier offered to lend the country more money but balked at cutting the debt, possibly out of concern that other borrowers would demand the same relief.

“China has agreed to come in with the other countries to give relief to Sri Lanka, which is a first step,” Wickremesinghe said. “This means they all have to agree [on] how the cuts are to take place and in what manner they should take place.”

Sri Lanka is also seeking financial help from the World Food Programme, which may send a team to the country soon, and Wickremesinghe is banking on a bailout package from the International Monetary Fund. But even if approved, he does not expect to see money from the package until October onwards.

Wickremesinghe acknowledged that the crisis in Sri Lanka has been of its “own making.” Many have blamed government mismanagement, deep tax cuts in 2019, policy blunders that devastated crops and a sharp plunge in tourism due to the coronavirus pandemic. But he also stressed that the war in Ukraine, which has thrown global supply chains into a tailspin and pushed fuel and food prices to unaffordable levels, has made things much worse.

“The Ukraine crisis has impacted our … economic contraction,” he said, adding that he thinks the economy will shrink even further before the country can begin to recoup and rebuild next year.

“I think by the end of the year, you could see the impact in other countries” as well, he said. “There is a global shortage of food. Countries are not exporting food.”

In Sri Lanka, the price of vegetables has jumped threefold while the country’s rice cultivation is down by about a third, the prime minister said.

The shortages have affected both the poor and the middle classes, triggering months of protests. Mothers are struggling to get milk to feed their babies, as fears of a looming hunger crisis grow.

Wickremesinghe said he felt terrible watching his nation suffer, “both as a citizen and a prime minister.”

He said he has not ever seen anything like this in Sri Lanka – and did not think he ever would. “I have generally been in governments where I ensured people had three meals and their income increased,” he said. “We’ve had difficult times. … But not like this. I have not seen … people without fuel, without food.”

Source: The Associated Press

--Agencies