By: Staff Writer

Colombo (LNW): The insurers of the ‘X-Press Pearl’ ship, which sank off the western coast of Sri Lanka after being gutted in a massive fire two years ago, have made an interim payment to the Sri Lankan Government.

This payment has been made in order to cover the cost incurred by the Maritime Environment Protection Authority (MEPA) for the beach clean-up operations of the country and compensation for the fishermen affected by the maritime disaster, says the Minister of Justice, Wijeyadasa Rajapakshe.

Accordingly, he said that the Sri Lanka Treasury has received USD 890,000 and Rs. 16 million as interim payment for costs incurred by MEPA and compensation for affected fisherfolks.

“This amount has been provided as an interim payment for compensating the fishermen and for the costs incurred by the Maritime Environment Protection Authority for cleaning up the coastline of the country due to the X-Press Pearl fire”, he added.

Sri Lanka has received $2.5 million in the third interim payment in September 2022 for the sinking of the X-Press Pearl cargo ship in June 2021, giving it a total of just $7.85 million for the worst maritime disaster in the country’s history.

Sri Lanka witnessed what is considered one of the worst marine environmental disasters after the Singapore-flagged container ship, only three months after being commissioned, caught fire some 16 kilometres off Colombo on May 20, 2021, while transporting 1,500 containers including 25 tonnes of nitric acid.

The fire that continued for nearly two weeks resulted in a massive spillage of damaged containers, microplastics, plastic pellets, chemicals and other harmful substances into the sea.

X-Press Feeders, former operators of the container ship ‘X-Press Pearl’, through the vessel owner’s P&I insurers, have made two further payments to the Sri Lankan government for claims relating to beach clean-up operations.

The payments totaling USD 878,650.53 and LKR 16,315,451.05 relate specifically to claims lodged by the Marine Environment Protection Authority of Sri Lanka in relation to beach cleaning and rehabilitation works in the aftermath of the sinking of the X-Press Pearl.

Resolution of these claims was discussed in recent meetings between a Sri Lankan Government delegation and representatives of the ship owners and their insurers in Singapore on the 18th and 19th of July 2023.

Assessments on the payment of further claims are ongoing, with all legitimate claims being considered.

Meanwhile, a caretaker tug remains at the site monitoring the situation until the conclusion of the southwest monsoon season, when work will recommence to lift the remaining fore section of the wreck and transport it to a certified decommissioning facility for dismantling, recycling, and disposal.

In a significant development, an agreement concerning the allocation of 1,996 housing units, constructed with assistance from the Chinese government, for low-income earners, creative artists, and journalists is set to be officially signed next month.

The signing of these crucial agreements is scheduled to take place during the upcoming “Belt and Road Initiative” (BRI) summit, scheduled for October in Beijing, China. The initiative underscores the ongoing collaboration and strategic partnership between the two nations.

Prasanna Ranatunga, the Urban Development and Housing Minister and Chief Government Whip, shared that among these housing units, 108 will be specifically designated for artists and journalists, located in the Kottawa Palathuru Watte area. The remaining 1,888 housing units will be dedicated to addressing the housing needs of low-income individuals and families.

Remarkably, the Chinese Government has extended substantial financial support amounting to Yuan 552 million for this project, a partnership solidified when the Government of Sri Lanka formally signed the relevant exchange letter on January 9 of the preceding year.

Minister Ranatunga emphasized that this initiative is poised to provide a practical solution for residents facing challenges due to limited housing facilities, marking a significant step towards improving the living conditions of these communities.

RM Parks, a US-based company operating under the Shell PLC umbrella, is set to initiate its fuel distribution operations in Sri Lanka, starting next month. This strategic move will see the establishment of 150 fuel stations operating under the esteemed Shell brand.

RM Parks is poised to further expand its footprint in the Sri Lankan market by introducing an additional 50 fuel stations independently in the near future. This expansion will mark RM Parks as the fourth major player to enter the country’s fuel market, alongside existing entities such as the Ceylon Petroleum Corporation, Lanka Indian Oil Corporation, and Sinopec.

The journey into Sri Lanka’s petroleum industry began when RM Parks joined hands with Shell PLC, sealing a groundbreaking agreement in July. This 20-year commitment empowers RM Parks to import, distribute, and retail a wide range of petroleum products through the network of 150 fuel stations. Notably, these fuel stations will undergo significant upgrades, including the installation of state-of-the-art automated dispensers, electric charging stations, and the introduction of mini markets and cafes, promising an enhanced customer experience and an innovative approach to fuel distribution in Sri Lanka.

Sri Lankan President Ranil Wickremesinghe is scheduled to hold a crucial meeting with a delegation from the International Monetary Fund (IMF) in Colombo on Tuesday, September 26. This meeting, to be held at the President’s Office, marks the conclusion of the first review of the IMF program for Sri Lanka.

The meeting is expected to be attended by Sri Lanka’s State Finance Ministers and other government officials. Discussions with the IMF team have been underway since September 14th, focusing on the initial review of the Extended Fund Facility (EFF) arrangement for Sri Lanka.

The IMF team’s visit to Colombo is part of a scheduled visit taking place from September 14 to September 27, 2023. In March 2023, the IMF Board approved a 48-month extended arrangement under the Extended Fund Facility (EFF), providing SDR 2.286 billion (approximately US$3 billion) to support Sri Lanka’s economic policies and reforms.

The EFF-supported program has a multi-faceted approach, aiming to restore Sri Lanka’s macroeconomic stability and debt sustainability, mitigate the economic impact on vulnerable populations, safeguard the stability of the financial sector, and enhance governance and growth prospects. The IMF’s decision also led to an immediate disbursement of SDR 254 million (about US$333 million) and the mobilization of financial support from other development partners.

In parallel, the Government Medical Officer’s Association is expected to hold discussions with the IMF team in Colombo, addressing issues related to the country’s tax reforms and other relevant matters.

Furthermore, the IMF team will engage with members of the Samagi Jana Balavegaya political party on Monday, September 25, as part of their comprehensive engagement during their visit to Sri Lanka.

The Police in Homagama took action to raid a private institution’s park following multiple complaints of minors allegedly engaging in inappropriate behavior within small rooms located on the premises.

Reports suggest that the Homagama Police initiated the raid on Sunday, September 24, in response to concerns raised by parents and religious leaders in the area. These complaints centered on school-aged children reportedly engaging in misconduct with minors visiting the park.

Upon the request of concerned parents and religious figures, the Police secured a search warrant from the Homagama Magistrate’s Court to conduct the raid. As a result of the operation, approximately 24 young couples, who were allegedly involved in indecent behavior within the rooms, were taken into Police custody.

Following the intervention, the Police provided guidance to the group and subsequently released the female individuals to their respective guardians. Investigations have indicated that a significant number of these young couples had originally informed their families that they were attending tuition classes, raising concerns about their activities.

During the course of the raid, tensions reportedly flared as the park’s owner confronted the Police, adding to the complexity of the situation. Further inquiries and actions by law enforcement authorities are expected as they continue to investigate the matter.

Finance State Minister Shehan Semasinghe revealed plans to lift nearly all import restrictions, with the exception of those related to vehicle imports, starting next month. The decision reflects the government’s efforts to revive Sri Lanka’s economy, which had prompted temporary import restrictions to address economic challenges.

These restrictions had been imposed on approximately 600 product codes, affecting various categories of goods. Of these, around 270 HS codes were linked to vehicle-related imports. The State Minister emphasized the government’s commitment to rescind all import restrictions, except for those associated with vehicles, within the coming month.

Semasinghe made this announcement during a conference aimed at informing scholars, professionals, and the public about the government’s new tax policy, efforts to secure an IMF financial facility, measures to boost government revenues, and initiatives to stabilize the economy. The conference, held in Anuradhapura, featured the participation of senior officials from the Presidential Secretariat, the Central Bank of Sri Lanka, and the Finance Ministry.

Key speakers at the conference included Presidential Director General (State Revenue) M. J. Gunasiri and North Central Province Chief Secretary Chandrasiri Bandara, who shared insights into the government’s economic policies and measures to promote economic stability.