News

Sri Lanka’s state owned Ceylon Petroleum Corporation (CPC) is devising plans to increase its jet fuel imports in the next two years anticipating a rise in domestic demand of the aviation sector in the next two years, official procurement plan revealed. CPC will increase jet fuel imports by 38.33% to 593440 metric tons next year and in addition 7.4% more to 635820 metric tons in 2022, official data showed.

According to official documents, CPC has no alternative other than to import refined petroleum products to meet the local demand as the production at Sapugaskanda oil refinery is insufficient to tackle the demand, procurement plans unveiled.

The government has to expedite the procurement process of fuel imports as the CPC refinery has to shut down for maintenance once in every two years.

The present production out put at the refinery is around 40,000 b/d which is sufficient to meet 25% to 30% of the domestic demand and the balance will have to be imported, official sources said.

The government has already given the green light for the CPC to resume the long-planned project to expand crude oil processing capacity of its refinery at Sapugaskanda.

The CPC's proposal has received Cabinet approval recently to devise a new feasibility study to determine the scope, technical, operational, and financial feasibility of the planned 100,000-b/d expansion.

It will also focus on several alternative proposals to enhance the refinery’s existing capacity, according to Government Information Department of Government Information.

The sales volume of CPC declined by almost 20% to 3,367 million litres for the first eight months of 2020, compared to 4,211 million litres in the same period of 2019, Treasury reports revealed.

Accordingly, CPC revenue dropped almost by LKR 96 billion while the cost of sales declined by 22% to LKR 311 billion.

In fact, as the CPC’s overall performance is highly linked with the exchange rate fluctuations, coupled with the exchange rate variations, its’ overall loss for the first eight months of 2020 reached LKR 4.4 billion, a report revealed.

As the average crude oil price remained below USD 43 per barrel, the total import cost of the CPC during the first eight months of 2020 declined to around USD 1,126 million it added.

Sri Lanka’s largest and the first ever state owned wind power plant was declared open by Prime Minister Mahinda Rajapaksa in Mannar yesterday (09). The Ceylon Electricity Board (CEB) controlled wind power plant was constructed on a US$ 200 million loan from the Asian Development Bank (ADB).

Although the project was planned by Prime Minister Mahinda Rajapaksa in 2014 in his capacity as the then President of Sri Lanka, most of the work was carried out under the previous Yahapalana administration.

The Mannar Wind Power Project, which is at least a year behind its schedule, will add 100 MW to the national grid, according to the Ministry of Power.

The Ceylon Electricity Board (CEB) has incurred millions of rupees due to the delay in commissioning the wind power project.

The contract has been awarded by the CEB to Vestas Asia Pacific AS, a world-renowned Danish wind turbine manufacturer, to build the first large-scale wind farm in Sri Lanka in the southern coast of Mannar Island.

The project comprises 30 state-of-the-art wind turbines, each rated to 3.45 MW. The total installed capacity of this wind farm is 103.5 MW.

The Mannar Wind Power Project recently completed the final main gravity foundation along with the erection of the 10th wind turbine.

The primary contractor, Vestas Asia Pacific, along with their specialist civil engineering contractor, Access Engineering PLC, has achieved satisfactory progress amidst challenging conditions of the Covid-19 pandemic. The project work commenced in March 2019.

The CEB is considering installing six more turbines to produce an additional 20 MW of power with the remaining funds from the ADB.

Minister Gammanpila said that the power plant was constructed to use fossil and reusable energy for power generation in Sri Lanka, adding that it will further help safeguard the country’s foreign exchange, he said.

A leading hospital in Sri Lanka, where the bodies of the latest prison massacre victims were taken, does not have the facilities to conduct autopsies on bodies of people who were infected with the virus, according to the national rights watchdog.

This shocking revelation was made by the Human Rights Commission of Sri Lanka (HRCSL) in a letter to the head of the Colombo north teaching hospital urging him not to destroy bodies of those who died in the Mahara prison riot a week ago.

'Preserve the bodies'

The letter was written by the Commission at a time relatives and prison rights activists were casting doubts about claims by authorities that 9 out of 11 killed were identified as Covid 19 Victims.

While we are aware of the regulations in relation to disposal of bodies of those infected by the virus, we write to remind you that these bodies form part of an investigation that has already commenced,” wrote Ramani Muttettuwegama, Commissioner in charge of Investigations and Inquiries.

“Therefore, they should be preserved in a manner compatible with health requirements but not be cremated or destroyed in any other way until the autopsy proceedings in relation to their death is concluded. Further, where possible, external examination of the bodies such as photographs etc can be commenced and access should be provided to the forensic team for this purpose.”

She had further instructed the Hospital Director Dr. W. A. M. Shelton Perera to seek court approval to carry on the necessary investigations.

“Our inquiries reveal that although your hospital lacks the facilities for performing autopsies on bodies of people who were infected with the virus, the mortuary at the Infectious Diseases Hospital at Kotikawatte does have the required facilities and permission should be sought from the Magistrate for seeking their expertise if required.”

'They were shot' - CPRP

Earlier, HRCSL had recommended to commence forensic examination of the prison premises and hold post-mortem inquiries to understand cause of death of those who died and nature of injuries.

So far, six of the dead detainees have been identified. However, the cause of death has not been established.

They were shot to death, relatives and the Committee for the Protection of Prisoners Rights (CPPR) are convinced. Source: JDS

Sri Lanka introduced measures to protect the country’s currency by slapping a temporary vehicle import ban in March this year in the face of the economic impacts caused by COVID-19.

Under this set up, around 1300 vehicles have been struck in Japanese ports due to Sri Lanka's import restrictions.

Sri Lankan vehicle exporters in Japan, holding a special press conference in Tokyo stated that this decision by the Government is threatening the jobs of Sri Lankans involved in the automobile industry in Japan.

They immediately requested the government to grant permissions for vehicles that were purchased to fulfill orders before March, 20.

Sri Lankan Automobile Association in Japan immediately notified the Sri Lankan embassy in Tokyo to humbly request the Sri Lankan government to help them export vehicles that they have already purchased before the import ban regulation was placed on March 20.

They said that they have still not seen a favourable response and this has resulted in pushing most of our Sri Lankan businesses towards bankruptcy. Around 2000 Sri Lankans working in Japan in this automobile industry have been severely affected by this.

They expressed the hope that the Sri Lankan government would give them a favourable relief to release the vehicles that have been purchased before March 20.

The Ministry of Agriculture will provide LKR 700 million for 2000 families to cultivate fruits for the export market with the aim of uplifting the economy of the poor farming community. The Ministry in a statement yesterday (11) said that they have decided to provide Rs. 500,000 per family in Nawalapitiya, Gampola, Udunuwara and Hewaheta electorates in the Kandy District through the Innovation Project implemented with the assistance of the World Bank.

The specialty here is the cultivation of these products directly for the export market.

Under the project, the farmer will be provided with highly productive plants that meet foreign market demand, drip technology and the technical knowledge and understanding required for a high quality product. Further, state-of-the-art processing centres will be set up for value addition of the harvest.

Banana, guava, pineapple and avocado fruits will be cultivated for export purposes under this project.

Representatives of the Dole Company who met the Minister of Agriculture Mahindananda Aluthgamage at the Ministry of Agriculture agreed to create a foreign market for the produce of these farmers.

Furthermore, agricultural products will be exported to the Middle East and the Philippines.

The project will also be launched in twelve more districts in Sri Lanka and work has already commenced in five districts.

The first fruit container is set to be exported in the first quarter of next year.

India has assured the Sri Lanka that they will take prompt action to resolve the issue of Indian fishermen encroaching on Sri Lanka's territorial waters which has had a severe impact on local fishermen and their livelihoods.

Indian High Commissioner Gopal Baglay has given this pledge when he called on Foreign Minister Dinesh Gunawardena and the Minister of Fisheries Douglas Devananda at the Ministry of Foreign Relations yesterday (07), Indian High Commission in Colombo announced.

He stressed the need to continue to deal with the matters related to fishermen and their boats in a humanitarian manner, in accordance with the existing understandings.

The High Commissioner highlighted concrete steps taken by both the central government of India and the state government of Tamil Nadu in addressing all dimensions of the issue and specifically underlined India’s ongoing measures to support and encourage Indian fishermen to practise deep sea fishing.

He expressed the hope that the next meeting of the bilateral mechanism on matters pertaining to fishermen could soon be arranged online.

With regard to a proposal for joint management of the Palk Bay and Gulf of Mannar by Fisheries Minister Douglas Devananda, the High Commissioner shared that the forward looking elements in the proposal needed to be examined in greater detail.

He thanked the Sri Lankan government for organising the 4th NSA level Trilateral Meeting on Maritime Security held in Colombo on November 28.

The two countries have agreed at the meeting  that enhanced cooperation among various countries, particularly Sri Lanka and India, is crucial for addressing challenges like terrorism, radicalisation, organised crime, drug trafficking, etc. in our region.

The High Commissioner expressed the confidence that India-Sri Lanka relations will reach new heights in the coming year.

The United States launched a new LKR 3.6 billion (USD 19.5 million) initiative to help small businesses and economically empower Sri Lankan women.

The Private Sector Development Project, which is funded through the U.S. Agency for International Development (USAID), will provide technical assistance and financing to small businesses in the tourism, technology, and commercial care industries, the US embassy said in statement today (10).

It will also help Sri Lanka weather the economic impact of COVID-19 by providing much needed financial assistance through which businesses will be able to expand job opportunities for women and increase profits thanks to better business practices. Strengthening resilience in the face of the pandemic is a key step toward a post-COVID economic recovery.

“This project demonstrates the United States’ long-term commitment to engage the private sector in development cooperation that shape market-driven solutions to achieve sustained impacts,” said U.S. Ambassador to Sri Lanka Alaina B. Tepltiz. “Most importantly, this timely assistance will also mitigate the economic effects of COVID-19 in Sri Lanka,” she said.

The initiative will promote innovation and entrepreneurship and provide incentives for Sri Lankan financial institutions to support under-served communities in rural areas throughout the country.

It will also encourage businesses to hire more women. Studies show that when women are economically empowered, they reinvest back into their families and communities, which drives economic growth. More information on the COVID-19 funding opportunity can be obtained via the link below. https://thepalladiumgroup.com/tender/Funding-Opportunity-Notice-Innovative-Concepts-for-COVID-19-Economic-Relief-and-Adaptation-in-Sri-Lanka

The country's oldest political party, the United National Party celebrated its 74th anniversary recently in the backdrop of the party's most severe election reversal amidst its party machinery crumbling with its cash strapped head quarters 'Srikotha' on the verge of closing down.   

As the party struggles with calls for internal changes from its members, the choice of the party's next leader remains a hard one - youth or seniority - namely Ruwan Wijewardene or Karu Jayasuriya.

UNP leader Ranil Wickremasinghe has stepped into infuse life blood to maintain the administrative functions of UNP by providing millions of rupees out of his pocket to pay salarees of the staff

He has donated Rs. 3 million from his personal money to pay the salaries of the staff of the UNP headquarters Sirikotha in Pita Kotte.

Acting General Secretary Shamal Senarath confirmed that Wickremesinghe paid this amount to pay last month's salary on November 25.

Wickremesinghe has given this money to pay the salaries of 36 staff members working at the Sirikotha UNP headquarters.

Acting Secretary General said that Wickremesinghe has never neglected his duties for the party, irrespective of the challenging circumstances.

Several media reports stated recently that the UNP headquarters had run into bankruptcy with the party being unable to pay the salaries of the staff members attached to Sirikotha.

The party is yet to nominate a member for the single national list slot which they managed to secure at the last Parliamentary election.

Rebuilding the United National Party (UNP) has gained unprecedented impetus with the latest election defeats.

The mediations, painful at times, have nonetheless yielded a crucial discussion today, which the country will be watching with mixed feelings of hope.

Bludgeoned by a record number of election defeats on the trot, the UNP leadership finally yielded. Wickremesinghe’s view that he is willing to step aside should a competent replacement be found finally brought hope to party stalwarts who have been pushing reforms in vain.

IT also sparked fear among a faction that watched the moves of former UNPer and Opposition leader Sajith Premadasa and viewed them as being vengeful and lacking in political acumen.

A leading international human rights group has warned that nearly a third of Sri Lanka's cabinet ministers could hinder Sri Lanka's opportunities of attracting foreign direct investments into the country. "A third of Sri Lankan cabinet ministers were appointed to office this year while they stood accused of corruption or murder. In some cases the indictments are still pending," the International Project for Truth and Justice (ITJP) said.

The report by the ITPJ was released yesterday (09), marking the International Anti-Corruption Day, noting that ministries were allocated to persons despite allegations of corruption, fraud or murder against them.

"Respect for the rule of law means that if an officer is charged with a crime, he or she must clear his or her name before being appointed to the highest office in the state," the ITJP's Executive Director, Yasmin Sooka said.

“Some of the ten officials allege they were politically victimised by the previous regime – that is not the point. Everyone is equal before the law – overriding  the judicial system and  the  institutions  that support accountability will have disastrous consequences for the institutions that protect citizens’ rights, not to mention investor confidence,” she added.

The ITPJ's latest statement on the Sri Lankan government comes just a day after the 2000-page report by the Presidential Commission of Inquiry appointed to probe incidents of Political Victimisation was handed over to President Gotabaya Rajapaksa on Tuesday (08).

The three member commission was chaired by Retired Supreme Court Judge Upali Abeyratne and comprised Retired Appeal Court Judge Daya Chandrasiri Jayatilleka and Retired IGP Chandra Fernando.

The government will take necessary steps to accelerate the North Central Great Canal Project (NCGP) delayed due to problems with the construction company. In the latest development, China State Construction Engineering Corporation Ltd. (CSCEC) has been awarded the contract to construct a 27.7 km long tunnel as part of the 95.86 km-long North Central Great Canal Project

CML-MTD Construction Ltd, part of the Walkers CML Group that was facing some financial issues, has carried out the construction work of the initial phase of the Upper Elahera Canal Project (UECP) requiring complex engineering solutions.

But it is not clear as to whether this company is still involved in the project or the present status of the project which is to be completed at a cost of LKR 65 billion.

Claiming to be the largest Mahaweli water project in Sri Lanka since 1998, and one of the longest canals in South East Asia, the UECP is an Asian Development Bank (ADB) funded project of the Ministry of Mahaweli Development and Environment.

Claiming to be the largest Mahaweli water project in Sri Lanka since 1998, and one of the longest canals in South East Asia, the UECP is an Asian Development Bank funded project of the Ministry of Mahaweli Development and Environment.

The Upper Elehera Construction Project (UECP) comprises two components. The first component is the construction of the Kalu Ganga-Moragahakanda Transfer Canal (including two tunnels) that will transfer water between the Kalu Ganga and Moragahakanda reservoirs.

The second component is the construction of the Upper Elahera Canal that connects the Moragahakanda reservoir to the existing reservoirs Huruluwewa, Manankattiya, Eruwewa and Mahakanadarawa (including in total 28 km of tunnels). These reservoirs feed existing irrigation and water supply schemes.

China State Construction Engineering Corporation Ltd. has been awarded the contract to construct a 27.7 km-long tunnel as part of the 95.86 km-long North Central Great Canal Project.

International competitive bids have been invited to select a suitable contractor.

Cabinet approved the proposal tabled by the Minister of Irrigation Chamal Rajapaksa to award the contract to the company as recommended by the Standing Committee on Procurement appointed by the Cabinet of Ministers.

The 27.7 km tunnel will be constructed from Koduruwawa to Namalpura via the conserved forests and sanctuaries in Giritale and Hurulu as a package of Mahaweli Water Security Investment Programme which is implemented with ADB funds.

The construction of 144 transit housing units in Mannar is nearing completion and it will be completed next year, the Indian High Commission said in a statement. This was revealed when Deputy High Commissioner Vinod K Jacob undertook a two- day visit to Mannar and Jaffna from 7 to 8 December 2020.

During the visit, he inspected the progress at the ongoing construction of Indian project for construction of 144 transit houses for pilgrims at the Mannar Madhu Church and at the up-gradation of the historic Thiruketheeswaram Temple.

A MoU for construction of transit houses at Mannar Madhu Church was signed in August 2020 and is projected to be completed by September 2021 with an expected cost of LKR 290 million.

At the Thiruketheeswaram Temple, the Indian government has completed the restoration of the mahamandapam and other works at a total cost of more than LKR 320 million.

These two projects are an important part of the continuing and highly successful development cooperation partnership between India and Sri Lanka.

The following day (08), the Deputy High Commissioner participated in the grand opening ceremony of the 100 MW wind power project at Thambapawani in Mannar.

The Indian government has been implementing several projects in the field of Housing islandwide, deepening India-Sri Lanka cooperation in the livelihood development. India’s flagship Housing Project envisaging the construction of 50,000 houses in Sri Lanka at an overall outlay of LKR 33 billion under full grant basis is almost complete.

Agreement for construction of an additional 10,000 houses in the plantation areas at an outlay of Rs. 11 billion on grant basis was signed in August 2018.

This makes the total number of houses being built under the Indian Housing Project as 60,000. In addition, close to 3,000 houses are being built under the Model villages housing program in all districts of Sri Lanka, taking the total number of houses being built by India in Sri Lanka to 63,000.

With several public and private sector establishments coming to a near standstill during COVID-19, the government has taken several revenue enhancement measures to achieve an income of around 9.5% of GDP in 2021, according to a Finance Ministry fiscal strategy report. To complement such a strategy, several measures have already been taken to address the concerns in revenue collection which is estimated to increase to LKR 1.65 trillion in 2021 from around LKR 1.36 trillion this year.

Revenue enhancement has been accompanied by a comprehensive strategy that interlinks tax policy reforms and revenue administration reforms, which have been dealt with by the Treasury effectively, a senior official said.

This includes combining several tax instruments (e.g. increasing the PAL rate and removing the NBT rate), simplification of the system of taxation by reducing the number of taxes to be paid such as NBT, PAYE and WHT.

Further, capacity enhancing measures in revenue administration have already commenced including the establishment of the Large Taxpayers Unit (LTU) at the Inland Revenue Department (IRD), and the introduction of risk-based audits.

The Integrated Treasury Management Information System (ITMIS) at the Treasury has commenced roll outs in 45 entities and it is expected to further expand to about 200 entities. The tax buoyancy is expected to be improved in the medium term.

The government has introduced measures such as an electronic tax filing system which makes it easier to pay taxes. Several taxes were removed to simplify the tax structure with the Economic Service Charge (ESC), Debt Repayment Levy (DRL) and Nation Building Tax (NBT) being removed.

The standard Corporate Income Tax (CIT) rate structure was reduced to 24% from 28%. The concessionary rate of 14% is applicable to the income from export of goods, tourism, education, healthcare, construction and agro-processing and 18% applicable on income from manufacturing.

The high tax rate of 40% continued to be applied on liquor, tobacco and betting and gaming, budget estimates showed.