News

Sri Lanka Customs Department has been directed by the Finance Ministry to conduct a prompt inquiry in to the current controversial issue of importing discarded material such as used mattresses in to the country without considering its detrimental impact on environment and public health.

Finance minister Mangala Samaraweera has issued this directive to Director General of Customs Ms. P.S.M. Charles, soon after his return to the island concluding an official overseas visit today (23).

According to Finance Ministry, this stock of waste material has been brought to the island by a local company without obtaining the required license from the Central environmental Authority.

Minister Samaraweera vowed to take stringent legal action against relevant companies responsible for the importing and storing the stock of mattresses which were allowed to perish without restuffing and reprocessing it for several months.

Hayleys Free Zone Limited MD Ruwan Waidyaratne noted that they will find an overseas buyer and reship the stock of mattresses soon after reprocessing it.

However, the Director of the company Amal Rodrigo said that the reprocessing processes had been delayed due to the bankruptcy of the UK Company and there was no one to accept the stock when they return it to the sender.

It has also been revealed that Hayleys Fibre Ltd, the premier manufacturer & exporter of value added coil fiber products to international markets is engaged in the production of a wide range of premium quality mattresses with the opening of a new showroom “Mattress Shop” in Colombo 10 in 2015.

Therefore the management of Hayleys Free Zone Limited cannot wash their hands and absolve from their responsibility claiming that they were not the importer or the owner of the stock of mattresses, Customs official said.

Hayleys Free Zone Limited absolved from any involvement in importing garbage to Sri Lanka while putting the blame solely on Ceylon Metal Processing Corporation (Pvt) Limited ,the importer of these discarded mattresses from UK.

Hayleys Free Zone company vehemently denied allegations against it light of recent adverse media publicity in relation to 130 container loads of used mattresses that are currently stored at its yard premises.

The company clarified that these mattresses were imported by Ceylon Metal Processing Corporation (Pvt) Limited, who is the actual owner of the cargo.

Hayleys Free Zone entered into an agreement with the freight forwarder ETL Colombo (Pvt) Ltd, who was appointed by Ceylon Metal Processing Corporation (Pvt) Ltd, for the purpose of processing and re-exporting the mattresses in question.

The Ministry of Power and Renewable Energy has decided to purchase another 500 MW of barge-mounted emergency power to meet the electricity demand in 2020.

However, the decision to seek approval for more barge-mounted emergency power comes at a time when the controversial proposal to procure 400 MW of supplementary power from a Turkish company is still pending before the Cabinet of Ministers.

Power and Renewable Energy Ministry Director – Development Sulakshana Jayawardena has said the Ministry had decided to seek open tenders to procure another 500 MW of emergency power for 30 months until the commissioning of a 300 MW LNG (liquid natural gas) power plant in Kerawalapitiya.

Accordingly, a Technical Evaluation Committee (TEC) comprising Ceylon Electricity Board (CEB) engineers and ministry officials has been appointed and the normal tender process would be followed for the purchase of 500 MW of emergency power for next year.

According to the Power Ministry official, the 400 MW of supplementary power from the Turkish company would be purchased only for a short period of time, and later, the 500 MW of barged-mounted power would be added to the grid.

Meanwhile, two 200 MW Turkish powerships are expected to be stationed at Galle and Kerawalapitiya for six and nine months, respectively to help meet the existing electricity demand.

The 500 MW of barged power will be procured for next year for a period of 30 months.

The purchase of power from the powerships faced yet another hurdle when the Sri Lanka Ports Authority (SLPA) stated that there was no space to berth the powership at the Galle Harbour. However, the SLPA had later agreed to provide the facilities there.

Solid waste management and disposal of Aircraft at the Bandaranaike International Airport (BIA) in Katunayaka is now being handled in a shocking manner following the handing over the task to several private companies, informed sources disclosed.

Airport & Aviation Services (Sri Lanka) Ltd handled the aircraft waste management for a period of over 15 years sending the stocks of garbage to Nai kanda furnace to burn it.

This practice has been halted three years ago and several businessmen selected through tender procedure have now been allowed to sort out waste disposed by air crafts arriving at the airport for recycling purposes.

The remaining stock of waste is being sent to Nai kanda furnace to destroy it by burning and this has become a severe environmental pollution issue due to improper management of solid waste disposal.

Airport & Aviation Services (Sri Lanka) Ltd is selling the garbage to businessmen without considering the environmental pollution issues, several leading environmentalists complained.

Solid waste management and disposal is one of the most significant issues in the environmental management of the airline industry.

A waste composition analysis was conducted by a group of experts for in-flight service waste, and potential waste minimisation measures were evaluated.

The total in-flight waste was estimated to be up to 500 kg per flight, including food waste, and galley and cabin waste.

The waste composition analysis showed that paper (mainly newspaper, meal menu cards, etc.) was the largest component, ranging from 32 to 71 percent by weight of the total galley and cabin waste.

Another major component was plastic items. Transparent polystyrene drinking cups and food covers accounted for up to 13% of the total weight.

Aluminium cans accounted for up to 4% of the total waste. These recyclable materials can be sorted on board to facilitate the waste reduction and recycling programme.

The proposed on board sorting and collection programmes can achieve a recycling rate of as much as 45–58% of the total galley and cabin waste from in-flight services, the waste composition analysis revealed.

Minister of Sports Harin Fernando said that the new constitution governing Sri Lanka Cricket will be tabled in parliament on Monday (22).

The new constitution is a brain child of a group of former national cricketers including Sidath Wettimuny, Roshan Mahanama, Mahela Jayawardena and Kumar Sangakkara.

It was reported that the new Cricket constitution would carry several suggestions to improve the most popular game in the country.

Sri Lanka’s vehicle imports continues plummeting to very low levels as a result of tax increases and other controlling measures, the Motor Traffic Department claimed.

Vehicle registrations across most categories have declined in June comparing to statistics in May, a drop in 2-wheeler registrations have driven down the total to 26,201 the lowest on record over the past 36 months.

The revenue generated from motor vehicles significantly declined by 46.2 per cent to Rs. 40 billion in the first four months of 2019, which was 16.5 per cent of the total annual estimate for 2019.

This drop was mainly due to reduction of imports of motor cars by 70.2 per cent stemming from the restriction imposed on cash margin for the establishment of Letter of Credits (LCs) and the temporary suspension of the establishment of LCs for the importation of motor vehicles under the concessionary permit schemes.

Upward revisions of excise duty rates in August 2018 on motor vehicles with engine capacity less than 1000cc as measure of controlling the foreign currency outflow and the revision of excise duty rates on motor vehicles were the other factors tords this end.

Total car registrations recorded 1,580 units in June down from 1,816 units in May and significantly down from 6,819 units 12 months ago.

Brand new cars recorded 222 units in June down from 291 units in May and 992 units 12 months ago. Small cars accounted for bulk of them recording 185 units (83%). Imports from India and Japan accounted for 45% and 41% of units, respectively. Financing share was 50% in line with the normal monthly average.

Electric cars recorded 7 units in June up from 6 units in May but marginally down from 10 units 12 months ago. Nissan Leaf accounted for 6 of these units.

SUV registrations recorded 289 units in June down from 303 units in May and significantly down from 637 units 12 months ago.

Bus registrations recorded 40 units in June down from 66 units in May and significantly down from 177 units 12 months ago.

Van registrations recorded 480 units in June marginally up from 464 units in May and significantly down from 665 units 12 months ago.

The case against former Secretary to the Ministry of Defense Hemasiri Fernando and IGP Pujith Jayasundara in connection with the Easter Sunday attack, was postponed till October 3 by Colombo Chief Magistrate Lanka Jayaratne.

The Chief Magistrate instructed the Criminal Investigations Department (CID), today (22), to carry out further investigations and report to the court on October 03 and ordered to expedite the investigation process.

The CID informed the Magistrate that they have concluded recording statements from Hemasiri Fernando but had only recorded two statements from former top cop. They said they were yet to record additional statements from Pujith Jayasundara.

A lawyer representing IGP Jayasundara said that his client has been affected by a recent press statement issued by AG’s office concerning the case recently.

However, Deputy Solicitor General Dileepa Peiris had responded saying that he was not aware of the statement, and it would be brought to the attention of the AG in due course.

Hayleys Free Zone Limited absolved from any involvement in importing garbage to Sri Lanka while putting the blame solely on Ceylon Metal Processing Corporation (Pvt) Limited, the importer of these discarded mattresses from UK.

Hayleys Free Zone company vehemently denied allegations against it in the light of recent adverse media publicity in relation to 130 container loads of used mattresses that are currently stored at its yard premises.

The company clarified that these mattresses were imported by Ceylon Metal Processing Corporation (Pvt) Limited, who is the actual owner of the cargo.

In the wake of this incident, the Government has been urged to tighten entrepôt trade regulations introduced by then president Mahinda Rajapaksa in 2013 which allows re-exporting rackets of unscrupulous exporters to enjoy tariff relief, customs officers emphasised.

The gazette notification No. 1818-30 issued during the Rajapaksa regime has provided provisions for import and re-export goods without the control of Customs Ordinance, Exchange Control Act, and Import – Export Control Act etc.

These regulations indirectly paved the way for racketeers to exploit its loop holes in manipulating entrepôt trade without considering the country’s economic prosperity and environment, General Secretary of All Ceylon Customs Service Union J.A. Gunatilleke said.

Hayleys Free Zone is a legal entity established under the Commercial Hub Regulation Act No.1 of 2013 and operates as an offshore location to provide logistics services to global clients, mainly with the aim of offering storage and value added services for re-export, as done in other free zones across the Globe.

Under this set up several environmentalists questioned as to whether this service provider could be absolved from its involvement in storing and reprocessing environmentally hazardous stock of discarded mattresses in question.

It cannot be absolved from chargers of aiding and abetting, they said adding that under the present regulations the service provider is also a party in enrepot procedures .

Hayleys Free Zone entered into an agreement with the freight forwarder ETL Colombo (Pvt) Ltd, who was appointed by Ceylon Metal Processing Corporation (Pvt) Ltd, for the purpose of processing and re-exporting the mattresses in question.

The said cargo was consigned to Hayleys Free Zone by the freight forwarder ETL Colombo (Pvt) Ltd, as per the Hub Regulation where it states that any cargo arriving at the Free Zone premises must be consigned to the Free Zone operator.

The company further stated that the cargo in question was accepted to the Hayleys Free Zone yard, after carefully scrutinising the documents which stated that the 130 containers were non- hazardous cargo.

In light of the current situation, Hayleys Free Zone revealed that it has taken a decision to processes these mattresses and re-export them expeditiously at the cost of the company.

(Reuters) - The United States wants a special forces cooperation agreement with Sri Lanka to sidestep bureaucracy and has no intention of setting up a military base in the country, the American ambassador to the island nation said in a television interview.

The comments represent the latest attempt by ambassador Alaina B. Teplitz to assuage concerns over U.S. involvement in the Indian Ocean island after plans to sign a Status of Forces Agreement (SoFA) by the two countries was heavily criticized by local media and some political analysts who see it as a threat to Sri Lanka’s sovereignty.

Also called the Visiting Forces Agreement (VFA), it will establish the framework for U.S. military personnel visiting Sri Lanka at the invitation of the government and is still being negotiated by both nations, Teplitz said.

“The visiting forces agreement is an update to an existing agreement and it is designed to address a number of red tape issues,” Teplitz told state-run TV channel Rupavahini in an interview late on Saturday.

Giving the example of the 2017 floods in Sri Lanka, Teplitz said the government had sought help from the United States and it brought in relief supplies but the aeroplanes transporting them required clearance from the government.

The agreement would allow the United States to speed up these procedures, she said, so that when there is an emergency “we don’t spend time to cut through the red tape.”

Sri Lanka sits near one of the world’s busiest shipping routes in the Indian Ocean and over the last several years China has become a major investor, building ports and highways.

India, which is just next door, is starting to push back against China’s growing influence and so are the United States and Japan, experts say.

Teplitz had earlier this week dismissed the idea that the military pact had anything to do with China.

“China has nothing to do with the VFA; this is all about the long-standing bilateral partnership with Sri Lanka,” she said during a live Facebook chat on Wednesday.

She said the U.S. and Sri Lanka currently renegotiate certain administrative issues around entry and exit of military personnel before every single training or ship visit which takes up a lot of time.

The agreement lays down rules for the benefit of both countries - “meaning no base, no permanent presence of U.S. troops”, said Teplitz, adding that Sri Lanka retains the right to approve or deny all entry of people, vessels and aircraft.

The debate on the need to have such an agreement has taken center stage especially after the Easter Sunday attacks and is driving a deeper wedge between the country’s President Sirisena Maithripala and Prime Minister Ranil Wickremesinghe who are already at loggerheads.

Sirisena said earlier in July he would not sign any military cooperation deals that are “unsuitable for the country”.

Days later Wickremesinghe told the parliament that negotiations are still on with the United States to agree on a pact but he too would not agree to anything that challenges Sri Lanka’s sovereignty.

The Trincomalee strategic gateway in the Eastern province is to be re-positioned as a tourism and export hub under a National Physical Plan for 2018-2050 prepared with the inputs of around 3000 Sri Lankan scholars and experts and not a single American was not involved in the endeavour.

Minister of Megapolis and Western Development Patali Champika Ranawaka claimed that the Colombo-Trincomalee Economic Corridor (CTEC) development plan has a potential to generate 1.2 million new jobs by 2030.

The government was expected to invest US$ 400 million for initial infrastructure development activities over the 30-year period while attracting over US$ 4 billion foreign investment of some of the mega projects under public private partnerships.

He expressed the belief that Trincomalee could be developed as the Eastern Gateway to countries in the Bay of Bengal region, home to around 3 billion people, which will be will be fast developed within the next 20 years.

The Export-Import Bank of Korea (Korea Eximbank) along with Asian Development Bank (ADB) and the Sri Lankan Government has drawn up the blueprint for the CTEC.

Under the master plan, Trincomalee would be converted into an export hub by creating a clean industrial ecosystem, which can add value to the already abundant agriculture, aquaculture, minerals and resources in its hinterland.

Trincomalee would also be re-positioned as the Eastern Tourism Hub, by increasing regional connectivity through the development of the Colombo-Trincomalee economic corridor and the establishment of an international airport in Hingurakgoda.

The region will also be converted into an eastern logistics centre through the economic opportunities gained as a result of the many Free Trade Agreements Sri Lanka has entered into with South and South East Asian nations, as well from maritime traffic in the Bay of Bengal and the Indian Ocean.

The third international airport and an international cricket stadium will also be constructed in the area while developing the Trincomalee harbour as an international port.

Korea Eximbank's collaboration with ADB is expected to make the CTEC development plan more implementable because Korean experts are expected to make augmentative contributions to the CTEC initiative based on the very experiences that Korea acquired while carrying out similar economic corridor development projects in 1970s to 1980s.

Therefore, people of this country should reject baseless allegations of bankrupt unqualified politicians linking US with Trincomalee development, Minister Ranawaka said.

Chairman of the Beliatta Pradeshiya Sabah, Cyril Munasinghe has been taken into custody in connection to an incident of assault.

Police said that the Chairman was arrested for assaulting a former Pradeshiya Sabha member on the 18th of July at the Pradeshiya Sabha auditorium.

Media Spokesperson SP Ruwan Gunasekara said that the arrest was made after Munasinghe surrendered himself to police custody today(22). The suspect is to be produced before the Tangalle Magistrate’s Court today.

The tussle over the chairmanship of Sri Lanka Rupavahini Corporation has intensified with the State Media Minister making a new appointment to the post despite the incumbent chairperson continuing to serve in the position.

State Media Minister Ruwan Wijewardena has appointed Sanjeewa Wijegunawardena on July 18th as the Chairman of Sri Lanka Rupavahini Corporation. Meanwhile, incumbent chairperson Inoka Sathyangani continues to serve in the position.

The controversy has further aggravated with Sathyangani stating that she has no notice of a new appointment to her post and that she had no intention of resigning from office. She has hence refused to relinquish her post and welcome Wijegunawardena when he had visited the Rupavahini Corporation today to assume duties.

Interestingly, Wijegunawardena was rejected earlier this month by the committee headed by the President's Secretary that authorises appointments to state media institutions when his name was proposed at the time by Minister Wijewardena to replace Sathyangani.

However, Minister Wijewardena has now unilaterally appointed Wijegunawardena as chairman of the Sri Lanka Rupavahini Corporation.

The committee headed by the President's Secretary has previously rejected names of two other individuals proposed by Minister Wijewardena to the post of Rupavahini Corporation Chairman to replace Sathyangani.

The Central Bank of Sri Lanka (CBSL) has selected KPMG India, which is identified as one of the leading international providers of risk and financial services, and business advisory, to carry out part of the forensic audit on the issuance of Treasury Bonds as recommended by the Commission of Inquiry into the Central Bank issuance of Treasury Bonds.

However, it has now been revealed that KPMG India has sought more funds to carry out the audit.

The call for more funds has been made in lieu of the many telephone conversations that have to be transcribed by the auditors during the audit and the lack of officers with language knowledge in the Indian company.

Therefore, KPMG India would likely have to outsource the transcribing of telephone conversations to another party.

CBSL yet to decide

CBSL Governor Dr. Indrajit Coomaraswamy has told a weekly English newspaper that the CBSL had completed the process of awarding five forensic audits and out of those five, one audit was handed over to KPMG India.

“There are altogether five audits where the procurement has been completed and one of those audits is being conducted by KPMG India,” he has said, adding that KPMG has sought additional funds to complete the forensic audit and the CBSL will make a final call on this request next month.

The Governor has explained that the audit firm would have to translate and transcribe millions of recordings before auditing them.

“They have requested for an additional fee for translations as they have to review millions of telephone recordings,” Dr. Coomaraswamy has noted.

According to the Governor, the total cost of all five forensic audits was approximately Rs. 300 million.