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Commercialization of SL fuel sector prompts the need of proper regulator

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By: Staff Writer

Colombo (LNW): In the wake of the entry of three multinational oil companies into the fuel import, distribution and sales the need of a state regulator has become vital to achieve expected positive results several veteran economists claimed.

The Public Utility Commission (PUCSL) is empowered to regulate all 5 fuel suppliers. But on the other hand, the government is trying to weaken the PUCSL. There should be an open competition for fuel pricing, they said.

Cabinet approval granted to award licenses to Sinopec, United Petroleum, Australia and RM Parks of USA in a collaboration with Shell Plc to enter the Fuel Retail market in Sri Lanka. These companies will be allowed to import, store and distribute petroleum products for 20 years.

State minister for finance recently declared the amount of accumulated losses of SOEs including Ceylon Electricity Board (CEB) and Ceylon Petroleum Corporation (CPC) is Rs1029 billion.

But the truth is that the government has taken a large portion of money from the CPC (and to some extent from the CEB) as taxes.

The Government and the regulator should not allow energy cartels to be formed and black mail the government and country. This was evident during Mrs Bandaranaike’s tenure in 1961 which resulted in the nationalization of fuel companies, former Power and Energy Minister Patalee Champika Ranawake said.

If we liberalize the fuel markets, competition should prevail, and a powerful regulator must exist. If not it will be a disastrous experience than the current CPC, he added

The Government has decided to unbundle CEB as well. Independent cost unit/ components may be formed according to the committee report — six generation units, two transmission units, 4 distribution units and a few other units to run the CEB-owned assets and subsidiaries.

Most professionals agree that CEB should have four distribution companies similar to LECO (CEB subsidiary).

The problem is the consumer is restricted to one choice in his living area. Only one electricity supplier exists.

In the meantime, the ministry is to introduce the WHEEKING PRINCIPAL where a consumer can buy from a particular independent power producer by minimal understanding. So, it is a limited open market.

Power is of paramount importance in all economies. Destabilization in the power and energy sector will lead to political destabilization.

This was the case in Lebanon, Greece, Pakistan, and other countries in the recent past. I wrote a book, “Power and power” (2014) to coin the theory on the correlation between political power and physical power (energy), citing various experiences around the world and in particular Sri Lanka.

It has been observed that the political elite, criminal bureaucratic elements and power sector oligarchs work in unison and siphoned off big money from the Ceylon Petroleum Corporation (CPC), Ceylon Electricity Board (CEB) and finally from the consumers’ pockets.

New integrated labour law coming soon to promote investment

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By: Staff Writer

Colombo (LNW): A new integrated labour law to encourage foreign investment is due shortly replacing Labour and Foreign Employment Minister Manusha Nanayakkara this week revealed that.

The Labour Department expects to introduce a simple and a unified labour law to the country by the end of 2023 to facilitate and encourage new entrepreneurs

Speaking at the Ministerial Consultative Committee on Labour and Foreign Employment Affairs Nanayakkara also said that taking opinions and suggestions of all relevant parties including the public will be started from 2 May to formulate this integrated labour law.

He further pointed out that the country’s industrial law, which is currently scattered and complex, is expected to be converted into an integrated labour law, and it is an essential step to encourage local and foreign investors. Thus, the new consolidated law will facilitate the settlement of disputes between employers and employees.

The Minister also said that these new laws will facilitate the convenient start and running of business activities, especially for investors coming to Sri Lanka.

This is in line with the proposal made by President Ranil Wickremesinghe through Budget 2023 to enact a new, updated and unified labor law in a manner to benefit both employer – employee segments and the economy.

According to the ministry, the department has concluded the preliminary discussions on updating and revising the existing labor laws by now.

Currently, there are over 40 labour laws in force in Sri Lanka out of which only 19 are being actively used for the matters pertaining to the labourers.

The contradictions and clashes among some of these laws has caused delays to the process and also discouraged the new entrepreneurs.

Addressing the Ministerial Consultative Committee meeting, Labour and Foreign Employment Minister Manusha Nanayakkara stated that steps will be taken to prepare the new integrated labour law to avoid the complexities of the existing labour law.

The attention of the committee was also paid to businesses that are not registered in the Employees’ Provident Fund (EPF).

The Minister pointed out that only 80,000 business companies are registered in the Employees Provident Fund. The MPs stressed that immediate action should be taken against unregistered companies.

Accordingly, it was decided to inform all divisional secretaries and local government commissioners in writing to send information about businesses registered in different parts of the island to the Ministry of Labour.

Also, the Minister instructed the Department of Labour and the Employees’ Provident Fund to submit a plan of possible future actions against such companies within a month.

Justice Minister says public opinion sought on ATA till May 30

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By: Isuru Parakrama

Colombo (LNW): Justice Minister Wijeyadasa Rajapakshe said the public’s opinion and their suggestions with regard to the proposed Anti-Terrorism Bill will be collected till May 30, 2023.

Accordingly, the public can submit their opinions and suggestions on the proposed bill to the Ministry before the deadline set by the Minister.

Any individual or political parties and civil movements are able to raise their concerns pertaining to the bill, Rajapakshe added, promising that measures will be taken to table the proposed bill after obtaining the opinion of all relevant parties including the public.

The announcement comes in two days after the controversial bill was delayed in being tabled in Parliament in response to severe backlash by a number of concerned parties.

PHIs warn of dengue high epidemic

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By: Isuru Parakrama

Colombo (LNW): Sri Lanka is currently at the brink of facing a dengue high epidemic, warned Chairman of the Public Health Inspectors’ Association Upul Rohana, speaking to media yesterday (30).

“An unusual growth of dengue cases is currently visible. The public must be warned that there is a serious risk of a dengue high epidemic being occurred in the country in the near future. It is obvious that the National Dengue Control Unit lacking the implementation of a proper methodology is acting in a manner by which public funds are being wasted,” Rohana alleged.

The PHI Chief went on: “There is no need of a National Dengue Control Unit to inform the public when the number of dengue cases rises. The National Dengue Control Centre in particular believes that the general public can be used to control dengue by giving them a meal or a cup of tea. Such affair is not being done practically in the grassroots. If they believe that dengue can be controlled by the mere issuance of pages of circulars, that simply does not happen.”

“We, therefore, reiterate that the National Dengue Control Unit should begin to provide the officials the necessary gear of chemicals, fuel and other equipment via the implementation of a practical solution for dengue prevention, without wasting public funds. Instructing the people of this country to simply control dengue, on the other hand, would be useless,” he added.

LIOC slashes fuel prices

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By: Isuru Parakrama

Colombo (LNW): Lanka Indian Oil Company (LIOC) has slashed the prices of fuel concurrent to the price revision by the Ceylon Petroleum Corporation (CPC).

Accordingly, the LIOC’s price revisions on fuel are as follows;

  • 92 Octane Petrol per litre: Rs. 333 (slashed by Rs. 7)
  • 95 Octane Petrol per litre: Rs. 365 (slashed by Rs. 10)
  • Auto Diesel per litre: Rs. 310 (slashed by Rs. 15)
  • Super Diesel per litre: Rs. 330 (slashed by Rs. 135).

Meanwhile, the prices of kerosene and industrial kerosene remain unchanged.

President’s Message for International Workers’ Day

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On International Workers’ Day, it is important to recognize the significant role that the working people play in the economic progress of a country. In Sri Lanka, they have been a driving force behind the country overcoming challenges and leading the nation forward throughout history.

Last year, the country endured a severe economic collapse. The workers played a crucial role in patiently and courageously supporting the country as we waited to take the difficult initial steps in stabilizing the economy. As we celebrate this year’s May Day, we should take the opportunity to show the world the pride of the workers of Sri Lanka.

It is crucial that we put the country first and not fall prey to narrow political interests at this critical juncture. The government has always worked to secure the rights of the working public. By ensuring their rights and privileges, we hope to create a brighter future where the value of labour is recognized.

The government is committed to protecting the Employees’ Provident Fund, which was established for the benefit of the working people. Despite attempts by some parties to create undue fear regarding the Provident fund, I give my assurances that we will not allow it to be misused.

We invite all the working people of Sri Lanka to join hands as we undertake a new reformist path of building a prosperous Sri Lanka by 2048. We congratulate them on this meaningful International Labour Day where their rights are secured. The working people are a social force that can exert a stronger influence on the entire economic process of the country, and we must continue to value and support their contributions.

Ranil Wickremesinghe
President
Democratic Socialist Republic of Sri Lanka

Presidential Task Force to Promote Artificial Intelligence in SL

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PMD: During a recent discussion at the President’s Office, President Ranil Wickremesinghe commented on the potential for Artificial Intelligence (AI) technology to contribute to the country’s development.

He instructed officials from the Ministry of Technology to form a presidential task force comprising AI experts and prepare a concept paper to promote AI usage in the country. The President highlighted the potential of Artificial Intelligence in various fields, including agriculture, education, health, fisheries, and industry.

The President noted that the current annual contribution to Sri Lanka’s gross national income through computer and information technology is around USD 1.9 billion, with no known amount from AI technology. He instructed officials to develop a system to track AI contributions. Additionally, he stressed the importance of taking prompt action to increase AI’s contribution to the gross domestic product in the coming years.

Expressing his views, the President further said,

“We have identified the modernization of agriculture and fisheries, tourism, and improvement of supply centers as urgent areas for development in our economic reforms. Additionally, we have placed a greater focus on the technology industry.

As we see the world progressing with artificial intelligence, it is crucial for Sri Lanka to focus on this technology and invest in it. The private sector needs to be involved in this initiative. I called for this discussion today to seek your opinions on how we can proceed with this. How can we kick-start these programs? What are the advantages and disadvantages of investing in AI? These are some of the issues I want to discuss with you. The government plans to allocate one billion rupees for AI technology next year. To develop this technology in the country, we need to create an appropriate environment, which requires an institution and data. So, I am eager to hear your suggestions on how we can develop these programs.

We are aiming to create a digital economy and it will require a lot of effort in the coming months. Fortunately, the government has already prepared the necessary plans. However, it is important to note that only 2500 engineers are produced in our country every year. I have suggested that we should aim to produce at least 10,000 engineers to meet the demands of the digital age. When it comes to artificial intelligence, we should consider Singapore and India as role models. It is true that East Asia, South Korea, Japan, and China are making progress in artificial intelligence, but no country in West Asia has reached that stage yet. This presents a clear opportunity for us, and we must have strategies in place to implement this program promptly. In order to achieve this, we should start by improving university research departments.”

During the discussion on the integration of AI technology into the wider model of digitization in Sri Lanka, the Minister of State for Technology, Mr. Kanaka Herath, and the Secretary of the Ministry, Mr. Niranjan Gunawardena, a Senior Professor, shared their views.
The participants focused on the development of infrastructure necessary for related research activities and the latest trends in the field. The scholars who attended the discussion also expressed their views on future steps that need to be taken for the advancement of the field.

Mrs. Chandani Wijewardena, Senior Additional Secretary to the President for Strategic Affairs, along with representatives from the Sri Lanka Artificial Intelligence Association, universities, national innovation institutes, and experts in the field of information technology were among those who participated in the discussion.

Maps on May Day rallies, parade routes and parking revealed

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By: Isuru Parakrama

Colombo (LNW): A number of rallies and marches are set to be held in and around the city of Colombo organised by several political parties in celebration of the International Workers’ Day today (01).

Below are the maps on these rallies, parade routes and parking of vehicles:

May Day Rally by the Sri Lanka Podujana Peramuna
May Day Rally by the Samagi Jana Balawegaya
May Day Rally by the Janatha Vimukthi Peramuna
May Day Rally by the United National Party

Five provinces issued advisory for heavy rain

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By: Isuru Parakrama

Colombo (LNW): The Natural Hazards Early Warning Centre of the Department of Meteorology today (01) issued an advisory for heavy rain for five districts in Sri Lanka, urging the public to be vigilant amidst the weather conditions.

Atmospheric conditions are favorable for evening thundershowers in most parts of the island, and showers or thundershowers will occur at several places over most parts of the island after 2.00pm, the Dept said in its statement.

Heavy showers above 100 mm are likely at some places in Western, Sabaragamuwa, Central, North-Western and Southern provinces, and showers or thundershowers may occur in Western and Southern provinces during the morning too.

General public is kindly requested to take adequate precautions to minimise damages caused by temporary localised strong winds and lightning during thundershowers.

Marine Weather:

Condition of Rain:
Showers or thundershowers will occur at several places in the sea areas around the island.
Winds:
Winds will be south-westerly over sea area around the island and wind speed will be (25-35) kmph.
State of Sea:
The sea areas around the island will be slight to moderate. Temporarily strong gusty winds and very rough seas can be expected during thundershowers.

Sri Lanka Original Narrative Summary: 01/05

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  1. Analysts say massive contraction in demand for fuel has prompted reduction in fuel prices: CPC’s 92 Octane Petrol reduced by Rs.7 per litre to Rs.333: 95 Octane Petrol by Rs.10 to Rs.365: Diesel by Rs.15 to Rs.310: Super Diesel by Rs.135 to Rs.330: Lanka IOC fuel prices also reduced in parallel.
  2. Several political parties and trade unions to celebrate International Workers’ Day, today, with rallies and processions in towns across the country: UNP at Sugathadasa Stadium, Colombo North: SLPP at Campbell Park, Borella: SJB at P D Sirisena playground, Maligawatte: NPP in front of Viharamahadevi Park: FSP at Delkanda Junction: Uttara Lanka Sabhagaya at Hyde Park, Colombo: SLFP in front of Kandy Central Market: ‘Nidahasa Janatha Sandhanaya’ in front of the Sahas Uyana, Kandy.
  3. Govt begins discussions with bi-lateral external creditors on debt restructuring of USD 7.1 bn out of the total USD 25.9 bn: separate talks with Paris Club members + India, and China: 3 baseline restructuring scenarios with 6-year maturity extension for all & haircuts ranging from 15% to 30%, and higher coupons, to be discussed: Govt had committed to submit the Debt Restructuring Plan to the IMF by yesterday.
  4. Minister Mahinda Amaraweera requests the Animal Production and Health Department to permit eggs imported from India to be released to the local retail market: massive egg shortage in the country.
  5. Pakistan’s former PM and Tehreek-e-Insaf Chairman Imran Khan warns “Pakistan would face a Sri Lanka-like situation” and that violent protests will break out in the country if elections are not held: asserts he has so far taken party decisions that did not hurt the fragile economy, but if the elections were delayed, the situation would get out of control.
  6. Fishermen in Tamil Nadu say 109 fishing boats have been impounded by Sri Lankan authorities along with the fishermen on various charges, since 2018: Association leaders meet Tamil Nadu Chief Minister M K Stalin and request him to intervene for the release of the boats: also seek “Govt to Govt” intervention through the Indian External Affairs Minister S Jaishankar.
  7. SL welcomes 14 Sri Lankans residing in Sudan who were evacuated due to the prevailing crisis in that country: evacuation facilitated by the Govt of Saudi Arabia.
  8. King Charles III to host a special meeting of the Commonwealth Heads of State and Govt on May 5, the day before his Coronation, on a suggestion by President Ranil Wickremesinghe.
  9. Met Dept says the Heat Index in the Western, North-Western, Northern, North-Central & Eastern Provinces, and Monaragala, Ratnapura, & Hambantota Districts, is expected to increase up to “Caution levels” of 39-45 Celsius.
  10. Former JVP MP Sunil Handunnetti says the SJB has approved the destruction which would be caused to the country and the economy through the IMF fund facility agreement, by being absent during the time of voting in Parliament: claims the SJB did not have the backbone to oppose it.