News

Sri Lanka today (17) signed an agreement for one billion US dollar credit line from India to help import essential items.

It was inked in New Delhi in the presence of Indian foreign minister S. Jaishankar and the finance ministers of the two countries Nirmala Sitharaman and Basil Rajapaksa.

“India stands with Sri Lanka,” Jaishankar said in a tweet later.

The Chairman of the Ceylon Petroleum Corporation, Attorney-at-Law Sumith Wijesinghe states that the CPC has not yet increased fuel tariffs properly.

The CPC Chairman stated that the fuel price increases only covers the losses incurred via the sale of two fuels, petrol and super diesel, and a loss of Rs. 120 was being incurred previously.

However, Wijesinghe stated that the matter was discussed at length and the fuel has been increased only by Rs. 55, when it should have been increased by Rs. 120.

Ceylon Petroleum Corporation took steps to increase fuel prices with effect from midnight yesterday (11).

Accordingly, 92 Octane Petrol has been increased by Rs.77 to Rs.254 per liter, 95 Octane has been increased by Rs. 76/-, to Rs. 283/-, Auto Diesel has been increased by Rs. 55/-, to Rs. 176/-, while Super Diesel by Rs. 95/-, to Rs. 254/-.

The move follows the decision taken by the Lanka IOC to increase the price of petrol by Rs. 50 per liter and diesel by Rs. 75 per liter from midnight on Thursday (10).

Accordingly, a litre of octane 95 petrol is Rs. 254, a litre of Euro 3 petrol is Rs. 263, a litre of auto diesel is now sold at Rs. 214, while a litre of super diesel is now Rs. 249.

News 1st

A Gazette Extraordinary has been issued by Minister of Health Keheliya Rambukwella increasing the revision of prices of 60 varieties of medicinal drugs.

The communiqué was published under Section 142 of the National Medicines Regulatory Authority Act, No. 5 of 2015.

The price revision is effective from today (March 15).

Gazette 2022-03-15 Price Re... by Ada Derana

All airline ticket prices were increased by 27 per cent as of midnight yesterday (10).

Chairman of the Civil Aviation Authority of Sri Lanka, Upul Dharmadasa said the price hike is due to the Sri Lankan Rupee depreciating against the US dollar.

The US dollar previously traded at Rs. 203.66, but increased to Rs. 259.99 after the Central Bank allowed the exchange rate to float.

Finance minister Basil Rajapaksa left for India a short while ago to finalize a financial assistance.

He was accompanied by his wife and finance secretary S.R. Attygalle,

Rajapaksa has had a virtual meeting with Indian external affairs minister S. Jaishankar on a credit facility of USD one billion for importing food, essential items and medicine.

Earlier today, the cabinet also gave permission for the finance minister to obtain technical assistance from the International Monetary Fund and to seek necessary assistance to resolve the economic crisis.

The former Minister of Energy, Udaya Gammanpila states that he was prevented from addressing the Parliament during the debate on the energy crisis.

Although he made a written request seeking a time slot to speak, the former Minister was informed by the Office of the Government Whip has informed him that he cannot be permitted to speak.

However, the Parliamentarian has subsequently spoken to the Chief Government Whip, Minister Johnston Fernando, who stated that he will consider, however was followed by him stating that the former Minister will not be permitted to speak as the speaker’s list was full, despite him holding the portfolio of the Minister of Energy until 03rd March.

“I have been elected to parliament on SLPP ticket by people casting 136,331 votes. Denying my right to speak in Parliament by SLPP means denying my voters to express their hearts and minds. I respectfully expect the speaker to protect my right to speak in Parliament,” the former Minister said in a tweet.

Cement prices have risen with Tokyo cement increasing the price of a 50 kg bag of cement by 350 rupees.

Accordingly, the new price of a bag of cement will be Rs. 1,850.

The price of a bag of cement remained at Rs. 1,500 so far.

The prices of rice packets as well as bread and other bakery products will increase following a hike in wheat flour and fuel prices and the depreciation of the Sri Lanka rupee.

A loaf of bread, from midnight today (11) will be upped by Rs. 30, to between Rs. 110 and Rs. 130, said the bakery owners association.

This follows the two wheat flour suppliers raising the price by Rs. 38 per kg.

Also, the price of a bun will also increase by Rs. 10, a rice packet by between Rs. 20 and Rs. 30, a Kottu by Rs. 10 and short-eats by Rs. 5 each.

There will be a 15% increase in bus fares if no fuel subsidy is received, President of the All Ceylon Private Bus Owners' Association Gemunu Wijeratne says.

Speaking to the media today (12), Wijeratne said that due to the increase in diesel prices, buses will be completely phased out by next Monday.

However, if a fuel subsidy is provided, bus fares need not be increased and buses can remain in operation.

He added that there would be no need to increase bus fares if private buses could be refueled at previous prices through the SLTB or through cooperative depots.

He, therefore, requested the Minister of Transport and the Secretary to the Ministry to take necessary action to provide a fuel subsidy.

General Secretary of the All Island Private Bus Owners' Union Federation (AIPBOUF) Anjana Priyanjith said that 80% of the buses will not be running today and the remaining 20% will be out of service by tomorrow.

Meanwhile, Inter-Provincial Private Bus Association (IPPBA) President Sarath Vijitha Kumara said that all buses are preparing to withdraw from service due to the unbearable increase in fuel prices.

Lanka IOC announced that it will increase the price of diesel and petrol with effect from midnight today (10), due to the significant depreciation of the rupee.

LIOC said that the retail selling price of diesel will be increased by Rs. 75 per litre and petrol by Rs. 50 per litre.

Issuing a statement, it said that the Central Bank of Sri Lanka had announced flexibility in foreign exchange rate and the Sri Lankan Rupee has depreciated twice in last 7 days against the dollar, initially to Rs. 230 per USD and then again to an exorbitant level of Rs. 260 from Rs. 203 previously.

“Even after this upward revision in exchange rates by over 28%, the inflow of US dollar has not improved much in the banking channels during past two days. The banks are, however, offering USD at the rate of Rs 260 and even much beyond. On the other side, Oil has also been rising sharply on the prospects for a full embargo on Russian oil and products and reaching near to the highest levels seen earlier in 2008.”

With fear of the supply scarcity amidst the Ukraine-Russia war, crude oil continues to be on the boil, threatening to reach unforeseen levels. It is gathered that the international market is rising to account for the supply disruption to at least part of the nearly 4 million barrels per day of oil that is sold by Russia into the U.S. and EU, the statement said.

In the wake of the severity of these external shocks, LIOC said it was forced to increase its Retail Selling Prices for Diesel by Rs 75/Ltr and Petrol by Rs 50/Ltr w.e.f. today.

Mr. Manoj Gupta, Managing Director LIOC, informed that “Rupee depreciation twice in a span of 7 days by Rs 57 against USD has directly impacted the landed cost of Gasoil & Gasoline making them dearer by an equivalent amount per litre. Oil and gas prices are also surging as western countries respond to Moscow’s invasion with numerous sanctions to isolate Russia and cut it off from global oil markets. Our current losses are exorbitantly high considering current international prices leaving no other option but to increase the prices of Gasoil & Gasoline. However, it is a painful reality that even after this price increase, there would still be heavy losses at the prevailing international prices.”

Mr Gupta further said that “Though the current global political and economic environment is extremely challenging compelling us to resort to desperate measures, I am confident that the situation will improve and we shall be able to pass on the benefits of reduced prices to our valuable customers.”

LIOC says it does not receive any subsidy from the Government of Sri Lanka and its losses are calculated based on actual landed cost of the product after considering payment of applicable duties, taxes & other statutory levies including handling charges.

“Lanka IOC is the only public limited energy company and accountable to its more than 10,500 local shareholders. Despite the unprecedented challenging situations, Lanka IOC has always remained committed towards the social upliftment through its several initiatives and strong environment conscience.”

Meetings of Sri Lankan authorities with IMF officials over the next few weeks are not for the purpose of debt restructuring as stated by some news agencies, says governor of the Central Bank of Sri Lanka Ajith Nivard Cabraal.

He is responding, in a tweet, to a Reuters report, which said that Sri Lanka will begin talks with the IMF next month on a plan to help the crisis-hit country, including assistance with debt restructuring and managing its foreign exchange shortage.

Quoting a source, the new agency said, “To find a way out of the crisis, the government will seek assistance with debt restructuring, the foreign exchange crisis, bolstering revenue generation and reforming state-owned enterprises.”

ceylontoday

The Public Utilities Commission of Sri Lanka (PUCSL) today approved the power shedding schedule for several areas in the country for tomorrow.

Accordingly, areas under groups P, Q, R, S, T, U, V & W in the schedule will be imposed one-hour power cut between 5.00 p.m. and 9.00 p.m. while areas under groups A, B, C, D, E, F, G, H, I, J, K & L will experience two and a half hour-power cut between 8.00 a.m. and 6.00 p.m. and for one hour and 15 minutes between 6.00 p.m. and 11.00 p.m