The electricity bills should be increased as a mandatory requirement and a final decision in this regard will be made in about two or three days, said Chairman of the Public Utilities Commission of Sri Lanka (PUCSL) Janaka Ratnayake, speaking to a briefing yesterday (19).
“There was no revision in electricity tariffs since 2014. Even in 2014 it was only slashed. Accordingly, a revision of electricity tariffs would be essential. Because, we know that the prices of coal and fuel have risen sharply in the global market. In addition, we have a big problem with the situation of the Rupee being depreciated surging the value of the Dollar. Accordingly, the Ceylon Electricity Board is incurring huge losses. The CEB cannot tolerate this losses any further. Therefore, we will be making a decision within the next two or three days on how the electricity tariffs should be increased. Most likely, we will be informing the public the manner in which the electricity tariffs are increased. There, we hope to increase the bills of other consumers without increasing the bills of low income consumers consuming between 30 – 60 units by obtaining a subsidy from the government,” he said.
The chain of escalations near fuel stations spawned by fuel crisis in the country has continued for another day as a heated exchange occurred at a fuel station in Meegahatenna, Kalutara yesterday (19) evening.
The unrest was sparked as fuel was being released into cans and containers (bully) while large crowds were queuing up at the station for fuel, and the Army fired into the air to control the situation, according to reports.
Prof. G.L. Peiris, Minister of Foreign Affairs, met the UN High Commissioner for Human Rights, the Secretary General of the International Federation of the Red Cross and the Permanent Representatives of China, the European Union, Australia, Republic of Korea, Germany, Netherlands and Jordan in Geneva on the sidelines of the 50th session of the UN Human Rights Council.
At the meeting with Michelle Bachelet, High Commissioner for Human Rights, Minister Peiris assured the High Commissioner of Sri Lanka’s continued active engagement with the international system including the Human Rights Council, in a candid and transparent manner. The Foreign Minister also described in detail the results achieved on the ground by local mechanisms including the Office of Missing Persons, the Office for Reparations, the Office for National Unity and Reconciliation, the SDG Council as well as independent institutions such as the Human Rights Commission of Sri Lanka. Foreign Minister Peiris informed the High Commissioner that the invitation to undertake an official visit to Sri Lanka extended previously, still stands. He also wished her well on her upcoming retirement, announced at the beginning of the current session.
At the meeting with Ambassador Chen Xu, Permanent Representative of China, the Foreign Minister thanked China for the continuous support extended to Sri Lanka over the years. Discussing the economic challenges facing the country, particularly issues relating to foreign reserves and their impact on food and energy security, Minister Peiris expressed appreciation for the substantial quantities of food, pharmaceutical items and COVID-19 vaccines provided by China. Reference was made to the long standing and friendly relationship between the two countries and the expectation of further strengthening the ties in the future.
Foreign Minister Peiris and Ambassador Amanda Gorely, Permanent Representative of Australia discussed the upcoming visit to Sri Lanka by Ms. Claire O Neil, Minister for Home Affairs and Cyber Security of Australia. While stating that the looked forward to meeting the Home Affairs Minister, the Foreign Minister assured the Permanent Representative of Sri Lanka’s continued commitment to combat illicit migration, which Sri Lanka views as a humanitarian calamity.
At the meeting with Jagan Chapagain, the Secretary General of the International Federation of the Red Cross, Minister Peiris requested for the delivery of medicines and healthcare equipment to Sri Lanka as a matter of priority. In his discussion with Ambassador Lotte Knudsen, the Permanent Observer of the European Union, the Foreign Minister highlighted the importance of economic diplomacy, including trade, investment and tourism.
The Foreign Minister also held discussions with Ambassador Walid Khalid Obedat, Coordinator of the Arab League and the Permanent Representative of Jordan, Ambassador Taeho Lee, Permanent Representative of the Republic of Korea, Ambassador Natalie Olijslager, Charge d’ Áffaires of Netherlands and Ambassador Hans-Peter Jugel, Deputy Permanent Representative of Germany.
H.O.S Withanage serving as an Assistant Superintendent of Police (ASP) attached to the Police Communication Division was arrested by the Police Special Investigation Unit for producing a counterfeit English diploma during an interview for ASPs and remanded upon being produced before the Fort Magistrate.
However, the suspect was released and reinstated in duty without being subjugated to any suspension of duty in a matter of two days, correspondents revealed.
Had a Police officer of any title below committed such an act, he would have been suspended of service by now. Why two laws operate in the same government body?
50 per cent of all private buses will operate from tomorrow (20) revealed Chairman of the Ceylon Private Bus Owners Association Gemunu Wijeratne.
As the Energy Minister agreed to provide diesel for private buses continuously through SLTB depots, steps will be taken to operate more than 10,000 private buses, he revealed.
Wijeratne also noted that private bus operations will be increased up to 70 per cent within this week and urged the public to use public transport services instead of motor vehicles and motorbikes.
Sources closer to state-owned LITRO Gas denied the allegation levelled by Nagananda Kodithuwakku talking to a YouTube Channel that a great tender fraud was committed at the state-owned gas company, stating that his comments come in in a low-level attempt to accomplish political goals by fabricating a news from a false part of a popular story.
The sources on the condition of anonymity explained that an international tender was launched for the purchase of 280,000 metric tonnes of gas for LITRO for 2022 – 2023 and that its lowest bid, which was ended on 16/03/2022, was tendered to SIAM Gas for a shipping cost of US $ 96 per metric tonne, adding that this was already public record and there is no evidence to suggest that Kodithuwakku had researched and found anything new.
Accordingly, Kodithuwakku is promoting false propaganda, knowingly or unknowingly, they added.
Kodithuwakku, who reveals only the date of the letter sent to SIAM on May 03, 2022 with the approval of the Cabinet, either does not know the entire contents of the letter or deliberately conceals the rest of the letter for his own purpose, the sources alleged.
Kodithuwakku conceals the facts that there is a shortage of gas in the current Sri Lankan market, LITRO had requested the Supplier (SIAM) to to provide 15,000 metric tonnes of gas for June considering the tender bid price being only US$ 96 per metric tonne as an emergency, as it takes some time to prepare standby letters of credit (SBLC) for the security of the Supplier, and the request was rejected outright by SIAM and urged on May 09, 2022 that a SBLC of US$ 30 million be issued via an international bank and that the gas could not be supplied until the issuance of such a LC, sources further disclosed to LNW.
They went on saying that Kodithuwakku has deliberately ignored the fact that LITRO is currently unable to provide a LC amounting to US$ 30 million due to the current crisis facing the country.
Replying to a letter from the state-owned gas company sent on May 03, 2022 requesting the supply of 15,000 metric tonnes of gas, SIAM responded on May 30, 2022 that such a consignment cannot be provided under this volatile situation and that they are able to provide 6,600 metric tonnes ten days after the issuance of a SBLC via a bank and that such an offer could be made for US$ 112 per metric tonne, not US$ 96.
In the backdrop, the second lowest bidder Oman Trading (OQ Trading) called for an emergency purchase of 15,000 metric tonnes of gas and they stated that at least 100,000 metric tonnes of gas should be purchased at a rate of US$ 129 per metric tonne. The rate was similar to the price they had initially offered for the tender.
The state treasury failed to provide them with SBLC due to the growing gas crisis locally and the inability of the lowest bidder SIAM to supply enough gas and worsening the situation, SIAM set out to offer conflicting prices. In the backdrop, the Sri Lanka LP gas market became a burning spot and the then LITRO Chairman Vijitha Herath sent a letter to the Finance Ministry on May 31, 2020 requesting financial assistance to obtain gas from OQ Trading in this emergency.
The Cabinet meeting held on 08/06/2022 accordingly concluded that SIAM would be the lowest bidder, but the government could not issue an SBLC in the event of a a recession and neither the bank nor the Treasury would be able to provide such facilities, urging the SIAM tender to be called off.
The Cabinet also directed that a new tender be issued expeditiously and that measures be taken to implement the procurement procedure on a more favourable basis considering the economic situation. It directed the relevant parties to obtain gas from OQ Trading, the second lowest bidder, for these urgent public needs and to meet those needs by working on favourable agreements on a more favourable credit basis amidst the economic challenges.
Therefore, Kodithuwakku ought to understand that it was an emergency purchase, not a preliminary tender, and that SIAM’s withdrawal was not due to commissions but because the GOSL was unable to issue SBLC on behalf of the company, the LITRO sources further pointed out.
They also alleged that Kodithuwakku is in an attempt to provoke unrest among the people by equating the gas price to that of LAUGFS, Rs. 6800, against the backdrop where current LITRO Chairman Muditha Peiris has pledged that the price of a domestic LITRO gas cylinder will not exceed Rs. 5,200.
‘Quadrilateral Security Dialogue (QSD), the Quad an informal strategic forum comprising four nations, namely — United States of America (USA), India, Australia and Japan has stepped in to prevent the impending economic explosion in Sri Lanka.
Quad has taken this initiative as its one of the primary objectives is to work for a free, open, prosperous and inclusive Indo-Pacific region.
The Chairman of the United States Committee on Foreign Relations Committee Robert Menendez has written to Quad members to encourage them to take a more proactive role in addressing Sri Lanka’s political and economic crisis as it continues to develop as a functional part of the Indo-Pacific architecture.
The letter was addressed to the US Secretary of State Anthony Blinken, Indian External Affairs Minister Dr. S.Jaishanker, Japanese Foreign Affairs Minister Hayashi Yohimasa and Australian Foreign Affairs Minister Penny Wong.
“The launch of the 13-nation Indo-Pacific Economic Framework (IPEF) will be a step forward for all four members of the Quad participating in deepening economic integration between like-minded allies and partners in the region Robert Menendez said.
There remains strong bipartisan and bicameral support in the US congress for the Quad. But there is more the Quad can do and should do in the Indian Ocean neighbourhood, starting with Sri Lanka,” Menendez said in the letter.
The letter said the Quad countries can lead the way in working to avoid an economic explosion in Sri Lanka that could spark a humanitarian crisis with wider, destabilising, regional impacts.
“Under the Rajapaksa’s, Sri Lanka has been left on the brink of financial ruin and humanitarian catastrophe. Mahinda Rajapaksa led this country straight into a Chinese debt trap and then his brother, Gotabaya Rajapaksa, failed to make the prudent economic steps necessary to avoid a default on its sovereign debt, he claimed.
Today, Sri Lankans of all backgrounds are rising to make clear that it is time for a change,” he said.
Menendez said that New Delhi has taken a proactive role in providing loans and humanitarian assistance to the Sri Lankan Government to avoid a meltdown, further mentioning that Washington is preparing long-term economic support.
“Tokyo is providing food assistance to the Sri Lankan people. These are all positive steps, but there is more that can be done by the Quad, including mobilising additional humanitarian assistance, providing badly needed fuel and offering technical support and advice in the areas of financial accounting, health, food security and macroeconomic policy.
Through the new Quad Humanitarian and Disaster Relief Mechanism (HADR), Tokyo and Canberra can play a bigger role and demonstrate that the Quad is capable of tackling challenges across the entire breadth of the Indo-Pacific region,” it mentioned.
Menendez said that on the diplomatic front, all four Quad nations must stand together this year at the United Nations Human Rights Council when the body receives the High Commissioner’s report on war crimes committed during Sri Lanka’s civil war.
