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Govt pays hundreds of dollars as demurrage for fuel shipments

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Govt pays hundreds of dollars as demurrage for fuel shipments

The Ceylon Petroleum Corporation (CPC) has to pay approximately US $ 200,000 in demurrage charges for a fuel shipment laying off the Colombo coast awaiting payment to unload the consignment,informed sources revealed.

The Ministry of Energy says at least $ 15,000 had to be paid per day in demurrage charges to the ship that has been waiting since 23 March.

“It has been waiting for some time now, since 23 March. We have to pay demurrage charges as well and it is usually between $ 15,000-$ 18,000 per day for demurrage charges,” a senior official of the ministry said.

However, Sri Lanka is still facing payment challenges for fuel imports with the state-run Ceylon Petroleum Corporation (CPC) owing $235 million for shipments already received, while about $500 million more will be needed to pay for letters of credit maturing over the next six weeks.

“A consignment of 40,000 MT of diesel arrived at the port recently . It will be discharged shortly to fuel sheds as well as 12,000 MT for power generation. It is the second consignment using the Indian credit line,” he said, adding that it had been procured at a cost of $ 38 million.

He said that there were another two ships with crude oil in the open seas but they were at the risk of turning back if payments were not made.

Sri Lanka has extended a credit line with India by $200 million in order to procure emergency fuel stocks, the country’s power and energy minister said on Monday, with four shipments due to arrive in May.

Colombo was also in talks with New Delhi over extending the credit line by an additional $500 million, minister Kanchana Wijesekera told a news conference.

Sri Lanka has used $400 million, on multiple shipments in April, of the $500 million credit line extended by India earlier this year, Wijesekera said. Two fuel shipments will be paid for from the remaining funds in May.

“The Indian credit line was extended by $200 million recently and this will be utilised for four shipments in May. Talks are continuing for a further $500 million with India so in total the credit line will be $1.2 billion,” Wijesekera said.

GTF deeply appreciates the humanitarian aid offered by the Tamil Nadu Government to all the people of Sri Lanka

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GTF deeply appreciates the humanitarian aid offered by the Tamil Nadu Government to all the people of Sri Lanka


The Global Tamil Forum (GTF) expresses its deep appreciation to Chief Minister Honourable M. K. Stalin for his consistent effort to provide humanitarian aid from Tamil Nadu to Sri Lanka. Last month Chief Minister Stalin had engagements with Honourable Prime Minister Modi and Honourable Minister of External Affairs S Jaishankar on this issue, and now the State Assembly has unanimously passed a resolution urging “the central government to positively consider the request of the Tamil Nadu Government to immediately send food and other essential commodities including lifesaving medicines from Tamil Nadu to the people of Sri Lanka, who are facing severe hardships”. The State Government has decided to provide 40,000 tonnes of rice, 137 types of lifesaving drugs and 500 tonnes of milk powder for children, all valued at an estimated Indian Rs. 123 crore. Chief Minister Stalin indicated in his speech that this was only the first instalment and called on the Tamil Nadu people to contribute generously.

Chief Minister Stalin emphasised though he had initially announced to help Tamils in Sri Lanka, various leaders from the Tamil community in Sri Lanka had requested that the aid be not confined only to the Tamils and the assistance should be for all Sri Lankan citizens, “which moved me.” He added, “I could not control my emotions on hearing this. This is Tamil culture.”

GTF appreciates the many calls from the Tamils in Sri Lanka to extend Tamil Nadu aid to all deserving recipients irrespective of their ethnicity or religion, and particularly would like to acknowledge the highly publicised calls from the Tamil National Alliance Spokesperson Sumanthiran MP and Tamil Progressive Alliance Leader Mano Ganesan MP. We are also deeply touched by the generous spirit with which Chief Minister Stalin has acceded to these commendable requests.

GTF recognises the remarkable and hopeful developments taking place in Sri Lanka and their potential to trigger meaningful and long-lasting changes in the country. Any such changes have to include transitioning Sri Lanka into a truly pluralist state where no community will be left out of the governance arrangements.

GTF sincerely hopes that all communities in Sri Lanka recognise the generosity in spirit with which the issue of Tamil Nadu aid was dealt by the Tamil leaders from both sides of the Palk Strait.

Foreign donors hold back project finance to Sri Lanka

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Foreign donors hold back project finance to Sri Lanka

Foreign financing for ongoing mega projects is being held back in the current socio –political instability in the country, further straining Sri Lanka’s economy, official sources said.

International financial institutions, development agencies and donor countries have suspended release of funds for these projects which are being halted midway.

“A lot of foreign funds for development projects are held up following the grave economic crisis and public protests as well as the Central Bank’s announcement of preemptive default on foreign debt,” a senior Foreign Ministry official confirmed.

Foreign donors were closely monitoring political developments in the country before releasing their balance tranches for the ongoing mega projects, he added.

As at the end of 2021, 325 mega scale development projects worth approximately Rs.6.9 trillion have been implemented under 47 line ministries with foreign and domestic funding.

Including three projects which started in the fourth quarter 2021, there were 98 newly initiated projects worth Rs. 2.6 trillion, Finance Ministry data showed.

Out of the allocated provision for total number of mega scale development projects for year 2021, 68 percent has been utilised at the end of the last year and 32 per cent will be held up.

It is observed that the financial progress could have been increased further, if clearing bottlenecks such as delay in procurement, shortage of construction materials and limitations in importations of mega scale projects were adequately assisted, finance ministry sources said.

However at present the whole public administration process has come to stand still after months of tensions within the government and unrest among the people suffering from the decline in living standards long and frequent power cuts and a 25- 70 percent increase in food prices, officials added.

Meanwhile newly appointed Treasury Secretary Mahinda Siriwardene has ordered all new eprojects and those that have been started and stalled due to lack of raw materials to be suspended.

“Enhancing the government revenue is a crucial requirement to control this challenging situation,” Siriwardene said.

“However as it takes a certain time, public expenditure needs to be well-tightened, making it available only for the most essential services for a certain period.”

In the case of half-completed projects, negotiations have to be held with contractors.Officials have also been asked to stop acquiring lands or other assets.

Requirements which have commenced but where letters have not been issued should be delayed.Circulars issued earlier containing current spending would continue.

Sri Lanka’s state finances got into a fix since 2019 due to ‘revenue-based fiscal consolidation’ in which the usual spending-based consolidation was abandoned.

Recurrent spending was pushed up to over Rs 3trillion and total spending rose to Rs 4 Tn, a marginal decline of about Rs 30 billion from the approved allocations for 2021

Batticaloa fabric park aims  to save US$ 500 million annually

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Batticaloa fabric park aims  to save US$ 500 million annually

 Sri Lanka has taken the first step in manufacturing textiles to meet the needs of local apparel industry by launching the first phase of the Batticaloa fabric park with the aim of preventing  US$ 500 million in foreign exchange flowing out of the  country   

The first phase of the park will provide an opportunity to add raw materials to the local apparel industry and  to manufacture apparel made entirely from local materials for the global market,”  Board of Investment (BOI) Chairman Raja Edirisuriya disclosed. 

.” Moreover, expectations that it will show the results of the economic and social growth that can be seen in investment zones under the BOI such as Katunayake, Biyagama, Koggala and Seethawaka,” the Chairman emphasized.

Sri Lanka is a county that has garnered immense acclaim and a strong reputation worldwide for manufacturing high-quality apparel trusted by the iconic global fashion brands.

 Sri Lanka annually imports textile raw materials used in the apparel industry worth US $6 bn from different countries around the globe. 

Taking this into account, the attention of the Board of Investment (BOI) was drawn to set up the Textile Park in Punnakuda, Batticaloa with the intention of manufacturing textile raw materials on the Island itself.

The Park which is a 255-acre land is equipped with all facilities and the potential to establish eight to ten large-scale factory complexes. Furthermore, the Textile Park can be named the largest development project being undertaken in the Eastern Province.

In addition, the Government is to spend a sum of Rs. 5.5 billion on the development of infrastructure facilities in the project which will eventually boost infrastructure facilities in the area.

BOI Chairman Raja Edirisuriya and its Director-General Renuka M. Weerakone made an inspection tour alongside a group of investors who are geared to embark on new projects in the Fabric Park.

speaking on the occasion, BOI Director General Renuka M. Weerakone said “The Textile Park has been constructed following a thorough and extensive study done by BOI officials where they have recommended that it suits to be converted into an investment zone. 

“The BOI has also taken initiative in obtaining necessary approvals from relevant line ministries and institutions. We as the BOI aspire to establish the Textile Park in a more environmentally friendly manner,” she stressed.

Meanwhile, BOI Executive Director (Zones) M.K.D Lawrance expressing positive sentiments said “the steps have been taken to provide facilities needed to set up factories in parallel to developing infrastructure facilities in the region. 

The construction works of 40 % of access roads have been completed and a daily water capacity of 1500 – 2000 cubic meters has been supplied to fulfil the water requirements of setting up factories. Electricity has also been supplied while the basic constructions of the wastewater treatment plant have also been completed.”

The investors who joined the inspection tour opined that Sri Lanka has been outstanding in the global apparel industry for over 50 years, however; Sri Lanka has to import all textile raw materials except a few from foreign countries

We have to come across various hurdles in importing these raw materials given the current global competition because all the nations that manufacture raw materials are also engaged in the production of garments,” they pointed out.

“Thus, a much-needed fabric Park will tremendously help Sri Lanka to save money and develop sustainable import substitutes for the apparel industry in the country. Besides, setting up a fabric park of this nature will help Sri Lanka procure raw materials on time and complete the orders on time,” the group of investors added

Sri Lanka’s IMF Gamble hangs on debt restructuring 

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Sri Lanka’s IMF Gamble hangs on debt restructuring 

The International Monetary Fund (IMF) has requested Sri Lanka to implement a strict fiscal and monetary policy protecting the livelihoods of the most vulnerable poorest of the poor people.

several  economic analysts claimed. 

Sri Lanka is still to sent a Letter of Intent to the IMF promising a number of adjustments ranging from changing the tax regime to introducing pricing formulas for fuel and electricity. 

The Governments is still hesitant to make commitments to IMF because they come with steep social and political costs

“Fiscal policy should be devised on a revenue-based consolidation strategy that increases the ability of the country to raise revenues and to address most critical spending needs while further tightening monetary policy,” Anne-Marie Gulde-Wolf, IMF Acting Director for Asia and the Pacific said this week.

On revenue-based consolidation, she said that wherever possible the taxes should be paid more by those that are well off compared to the most vulnerable segments of society.

The raising of revenue has become a very difficult and gigantic task after the present government’s action in 2019 to do away with a range of taxes and turning it around cannot be done overnight, Senior Commissioner of the Inland Revenue Department (IRD) Sarath Abeyratne told the Business Times.

He noted that the country has lost more than Rs.1 trillion in tax revenue with a 33.5 per cent decline in the number of registered taxpayers (corporate and individual) in the country during the past two years.

This decline is most probably connected with particularly the increase in thresholds for Value Added Tax (VAT) and the abolition of Pay As You Earn (PAYE) tax and later replacing it by the Advance Personal Income Tax (APIT) which is an optional scheme, he pointed out.

A large number of tax files has to be closed and the expected economic stimulus has not been realised by not heeding to advise given to senior officials of the Treasury and IRD, he said adding that a handful of advisors controlled the public administration machinery.

Money printing or currency pumping and borrowing have become the order of the day instead of raising revenue from taxes and controlling public expenditure during the past two years, he said.

Monetary policy has to be tightened to keep inflation in check and there was a need for a flexible exchange rate, former Central Bank Deputy Governor Dr W.A. Wijewardena said.

The government has to increase taxes to meet rising public expenditure and suspending capital expenditure by the Finance Ministry is not sufficient to tackle the present fiscal crisis, he added.

The economic situation has been made worse by mismanaged government finances and ill-timed tax cuts. Foreign reserves were at historic lows, major debt repayment is coming up, and the Sri Lankan currency is in a free fall, depreciating close to 65 percent since the restrictions on exchange were relaxed in early March.

Food and fuel shortages, power cuts, and inadequate supply of medicines, among other items, have become a daily occurrence in the country.

‘Independent’ MP group agrees by policy to form national government

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‘Independent’ MP group agrees by policy to form national government

The MP group who are claiming themselves to be independent in Parliament has held a discussion with a group of SLPP members led by Basil Rajapaksa at the President’s House under the patronage of President Gotabaya Rajapaksa today (02).

MPs Wimal Weerawansa, Udaya Gammanpila, Tiran Alles, Nimal Siripala De Silva and Anura Priyadarshana Yapa have appeared for the independent MP group and Basil Rajapaksa, G.L. Peiris, Sagara Kariyawasam, Sanjeewa Edirimanna and Ramesh Pathirana for the Ruling Party.

The parties have reportedly entered an agreement by policy to form a national government and also have agreed to put joint efforts in welcoming other political parties for an interim government.

MIAP

COVID-19: Bill Gates warns of an ‘even more transmissive and more fatal’ coronavirus variant

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COVID-19: Bill Gates warns of an ‘even more transmissive and more fatal’ coronavirus variant

The Microsoft co-founder and philanthropist has said the risk of a more virulent variant coming to light is “way above 5%”.

The coronavirus pandemic is far from over, Bill Gates has warned, saying there could still be a variant which is “even more transmissive and even more fatal”.

“We haven’t even seen the worst of it,” he said in an interview.

While not wanting to be a “voice of doom and gloom”, the risk of a more virulent variant emerging is “way above 5%”, the Microsoft co-founder and philanthropist told the Financial Times.

“We’re still at risk of this pandemic generating a variant that would be even more transmissive and even more fatal,” he said, adding that longer-lasting vaccines which block infection are urgently required.

Gates, one of the world’s wealthiest people, has written a book called How to Prevent the Next Pandemic.

He is urging the creation of a team of international experts – ranging from epidemiologists to computer modellers – to identify threats and improve international coordination.

He is also calling for a global epidemic response team, managed by the World Health Organisation, and says extra investment is vital.

“It seems wild to me that we could fail to look at this tragedy and not, on behalf of the citizens of the world, make these investments,” he said.

While acknowledging that the war in Ukraine is dominating the international agenda at present, he added: “The amount of money involved is very small compared to the benefit and it will be a test: can global institutions take on new responsibilities in an excellent way?”

Bill Gates at COP26 in November
Image: Bill Gates says the WHO should manage a new global epidemic response team. Pic: AP

A pandemic is something Gates has been warning about for years, having given a TED Talk in 2015 about the threat of a super-virus.

“If the pandemic hadn’t come along it would have been a fairly obscure TED Talk,” Gates told The Times.

“Now it’s been watched 43 million times.”

Modern life is not helping either, he added. “Everyone who works in infectious diseases just has this fear of human transmissible respiratory viruses. The more people travel and the stronger the interaction between wild species and humans, the more risk of zoonotic cross-species-type diseases.”

Sky News

Chief Prelate of Malwathu Chapter bans visits from all politicians

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Chief Prelate of Malwathu Chapter bans visits from all politicians

Chief Prelate of Siam Order and Malwathu Chapter Most Venerable Thibbatuwawe Sri Sumangala Thero has decided not to visit any politician in Sri Lanka. Making his decision into effect, the Chief Prelate has instructed the senior prelates of his Chapter to ban visits from all politicians.

The decision comes in following the negligence received as response to the letter containing six proposals tendered given by the Maha Sangha to the President, the Prime Minister and several Political Party leaders on saving the country from the crisis befallen it. The letter is believed to have contained proposals to establish an all-party interim government.

The Opposition Leader and a group of Samagi Jana Balawegaya (SJB) MPs visited Kandy recently to hand over the SJB-adapted 21st Amendment to the Constitution, but the delegation was not allowed to visit the Chief Prelate of the Siam Order and Malwathu Chapter. A group of Sri Lanka Podujana Peramuna (SLPP) MPs who arrived in Kandy on April 29 to visit the Thera was not allowed to meet him either.

Meanwhile, the Chief Prelates of the Tri-Order of Buddhism have also decided to hold a discussion with all political party leaders representing Parliament on the country’s crisis situation.

MIAP

Riot Control at Galleface heats up protest (VIDEO)

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Riot Control at Galleface heats up protest (VIDEO)

A group of Riot Control has been dispatched to the Galleface Ground where anti-government protests are being held, leading to a tense situation.

The protesters staged objection to the arrival of Riot Control and the vehicle has been moved by the Police thereafter.

MIAP

We’re lions. Lions meant to roar, Harin responds to alleged feud with Fonseka (VIDEO)

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We’re lions. Lions meant to roar, Harin responds to alleged feud with Fonseka (VIDEO)

Samagi Jana Balawegaya (SJB) MP Harin Fernando responded to the claims made on Social Media following a footage revealing a clash between him and SJB MP Field Marshal Sarath Fonseka at the SJB-led May Day Rally on May 01 was circulated making headlines.

The MP told the reporters that there is no conflict within the Party and that roars are meant to be heard where lions roam once in a while, referring themselves to lions.

MIAP

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