The US Dollar crisis in Sri Lanka has caused a long delay in securing the release of several imported items at the Colombo Port, and among them are goods classed as dangerous cargo, Sri Lanka Port Authority sources revealed.  

These Sources said that highly flammable liquids imported to Sri Lanka are stuck at the Colombo Port as the required USD is not being released by banks to clear the items.

One supplier said  on the condition of anonymity that his goods have been stuck at the port for nearly 8 weeks.

The supplier said that the goods had been shipped to Sri Lanka for a local paint manufacturer but has not been cleared as the local company is unable to obtain US$.

According to the supplier, the goods are highly flammable and should not be kept for long hours in extreme heat conditions.

“These goods should ideally be cleared in 24-48 hours but they have been stuck at the port for nearly 8 weeks,” the supplier said.

The Central Bank has imposed strict limits on making payments using USD as there is a shortage of US$ in Sri Lanka.

Another supplier said that they are forced to pay demurrage owing to the long delay to clear some of the goods in Colombo.

He noted that the dollar crisis in Colombo is posing a serious threat to their busines and is also hurting the confidence of exporters to Sri Lanka.

General Secretary of the All Ceylon General Port Employees’ Union Niroshan Gorakanage said that several goods remain stuck at the Colombo Port owing to the Dollar crisis.

He said that he is unaware if there are dangerous goods among the items as claimed by the suppliers but added that it is highly likely.

“If there are such goods then there is an issue as these items should be cleared soon,” he said.

 Sri Lanka’s diversified blue-chip conglomerate Aitken Spence PLC headed by billionaire business tycoon Harry Jayawardena has made a major initiative inpromoting the country’s key industries with German investments.   

Aitken Spence recently partnered with the Delegation of German Industry and Commerce in Sri Lanka (AHK Sri Lanka). The premium platinum partnership is aimed at promoting key industries in Sri Lanka to draw German investments.

Aitken Spence represents three major German brands namely, TUI, Hapag Lloyd and DB Schenker. 

Aitken Spence Travels is a joint venture with TUI which is the largest leisure, travel and tourism company in the world. 

Aitken Spence Maritime has a joint venture in Sri Lanka with Hapag Lloyd, a global leader in container shipping, specialising in reefer cargo, dangerous goods and special cargo projects.

 Aitken Spence Freight is the local agent representing DB Schenker, a leader in supply chain management and logistics solutions. 

These are some of the long-standing relationships with world renowned organisations which has provided a plethora of opportunities for the respective industries whilst it signifies trust, professionalism and growth, officials of the company said. .

AHK Sri Lanka is part of the German Chamber Network Abroad supported by the Federal Ministry for Economic Affairs and Climate Action (BMWK) and the Association of German Chambers of Commerce and Industry (DIHK) which represents several million German companies. 

AHK Sri Lanka is committed to fair business and offers the ideal platform to create business opportunities for both Sri Lankan and German companies in both directions.

Commenting on this premium platinum partnership, Dr. Parakrama Dissanayake Deputy Chairman and Managing Director said, “For many years, across the Group of Aitken Spence, we have established several partnerships with some of the world’s most recognised and trusted companies and brands.

 This is a further commitment to strengthening our relationship with AHK Sri Lanka and that we capitalise on the highest level of access and exposure within AHK Sri Lanka’s extensive network of regional and international decision-makers. Moreover, partnerships of this nature will help the much-needed boost for key industries and the economy of Sri Lanka at large. This is particularly crucial during the pandemic as we must work in collaboration to revive business

Sri Lanka’s Foreign Ministry is now interefearing into the fuel procurement process making recommendations to eliminate prospective bidders in favor of a few selected international suppliers awarding them the Gasoline term tenders causing millions of dollar loss for the country. 

The latest tender bender has come to light in the term tender floated by Ceylon Petroleum Corporation( CPC)  to import 1.8 million barrels of Gasoline which had been tainted with irregularities  corrupt practices and wheeler dealings of  officials in connivance with the foreign ministry, disgruntled fuel suppliers alleged.

Three bidders have submitted their applications for the tender and one the lowest bidder Coral Energy Pte Ltd has been rejected by the Special Standing Cabinet Appointed Procurement Committee while selecting Oman Trading Limited.

The three bidders who applied for the tender were Oman Trading Limited, Vitol Asia (Singapore) Ltd and Coral Energy Pte Ltd Singapore.

In a letter sent by the Energy Ministry under the signature of its secretary K.D.R Olga to Coral Energy informing that due to the failure of verification on the existence of the company and nature of business, the bid of the company has been considered as non responsive.

This is the new practice followed by some corrupt officials engaged in the emergency fuel  procurement process with the aim of getting kickbacks from bidders for the elimination of the  prospective bidders from getting the fuel import tender, these suppliers  pointed out.     

It has been revealed  SL Embassy in Singapore has sent a recommendation on the directions of local authorities stating that a company with US$ 5.3billion revenue in 2022 ‘is not actively engaged in trading’. 

This recommendation is not based on the company’s financials but based on ‘ad hoc’ visits by so-called embassy officials to the company’s office in Singapore, they alleged.  

The Energy Ministry and CPC is  now  in the practice of deciding  on procurement based on ‘office visits’ to the bidders. All the saga is to qualify the next bidder who bills Rs.400 million more to satisfy the increasing  corruption demands despite the country’s current   forex situation.

 This was another example of foreign currency outflows due to negligence and connivance of corrupt officials, they claimed.  

CPC rejects the company which accepts LC and gives credit for officials to make petty money and award to the higher bidder who wants ‘prepayment’, a senior official who wished to remain anonymous said.  

In this  shocking and disgusting new move, CP C makes continuous and  deliberate attempts to disqualify a globally known, strong oil company and has awarded the  contract to a regular supplier (who demands prepayment and who has refused to give any discounts to CPC, he divulged.  

The regular supplier is known to be controlling CPC and its officials making millions of US$ capitalizing on the country’s current forex plight.

When the lowest bidder has offered a price of US$ 1.1 million lesser than the second highest bidder, CPC has used a new practice of planning the  elimination  mission in connivance with corrupt foreign ministry officials and has submitted a report stating that the company is ‘not actively engaged in oil trading’, he added. 

 Several economic experts who expressed concern on this whole affair of the CPCare  asking if a company with ‘US$ 5.3 billion annual rRevenue is not an active trading company’ then what does the term ‘active’ mean? 

Also the trading circle which is well aware about CPC and its corrupt procurement practices which has brought the country to today’s crisis situation is asking as to how Foreign Ministry which is usually corruption free has now stooged down to this level by acting so unprofessionally and unfairly, especially in a country like Singapore.

 It has been observed that ‘Enterprise Singapore’ which is equivalent to SL ‘BOI’ has recommended ‘Coral Energy’ the lowest bidder.

But the foreign ministry official has not consulted Enterprise Singapore, analyzed any documentation including the company financials. 

The decision as per him is based on him going to see the office of the company 3 times and not many professional people being there.

A Joke considering today’s covid situation and the world’s new norm of operating from multiple locations reducing dependency of one office. 

A public interest activist also stated that he will file litigation seeking the opinion of the courts especially to check if CPC made such office visits in the past to each lowest bidder and disqualify them to make the award go to the highest bidder.

Inorganic fertiliser will be available for purchase for Sri Lanka’s farmers from the upcoming yala season allowing local companies to resume imports, Agriculture Minister Mahindananda Aluthgamage disclosed.

Turning 369 degrees from his previous arrogant stance he noted that the government itself did not support the president’s vision for a green agriculture and that the farmers’ complaints and outcries for fertiliser were fair and justifiable.

Farmers willing to follow the green agriculture programme will be provided organic fertiliser and pesticides, the minister said at a meeting held at the Agriculture Department on Thursday (13)

In the wake of severe fertiliser shortage an unknown company has stepped into supply urea fertiliser in sachet packets of five kilo grams each to farmers under the tag of “Dimo the next generation agriculture “at an unbearable price.

Normally farmers are used to purchasing 50 Kilogram bags of urea fertiliser and they had to satisfy with a five kilo gram sachet packets paying an exorbitant price of Rs 2000.

This has fixed the price of Rs 400 per a kilo gram of urea which is unbearable for farmers, social activists claimed.

Ten (10) companies have come forward to place orders to import chemical fertiliser for the upcoming Yala season, while the next organic fertiliser shipment from Qingdao Seawin has left China’s shores and is on its way to Sri Lanka, reliable informed sources said.

Even before the gazette was revoked on 30 November 2021, the Minister of Plantation had obtained Cabinet approval to order 98,000 MT of Ammonium Sulphate, of which only 30,000 MT has been imported so far.  

Director General of the Department of Agriculture, Dr. Ajantha de Silva said orders for nitrogen in the range of 500 kg, potassium chloride in the range of 60 kg, and phosphorus in the range of 50 kg has been requested.

The Government hopes to import fertiliser in February in preparation for the Yala season, which begins in March. Also, because the price of urea is currently high, the Government intends to ‘wait’ for the price to fall, according to sources..

Meanwhile, Senior Professor – Weed Science OF Peradeniya University, Prof. Buddhi Marambe, predicted that unless the Government is to provide some incentives, even if fertiliser is imported, the higher in-country prices would affect agricultural production and increase the cost of food for consumers.     

“The world market prices of fertiliser are exorbitantly high at the moment. For example, one metric tonne of urea where the normal market price was ranging between US$ 300-400, is now US$ 1,000-1,200.

As for fertiliser imports and prices, the Ceylon Fertiliser Company and Colombo Commercial Fertiliser were allowed to import fertilisers for paddy cultivation and they were given free of charge to paddy farmers.

For other crop production, the private sector was allowed to import fertiliser on a quota system approved by the NFS, and the subsidised selling price was Rs 1,500 per 50 kg pack.  

 Sri Lanka’s Masterplan for Consolidation of Non-Bank Financial Institutions is now being implemented expeditiously, Central Bank announced to day (Monday 31)   

Under this   Masterplan nine finance companies have already introduced fresh capital of Rs 12.56 billion to meet regulatory capital requirements. 

These companies are   Sarvodaya Development Finance PLC, Dialog Finance PLC, Asia Asset Finance PLC, Lanka Credit and Business Finance PLC, People’s Merchant Finance PLC, Softlogic Finance PLC, Merchant Bank of Sri Lanka & Finance PLC, UB Finance Co Ltd and Richard Pieris Finance Ltd.

 In addition, 12 companies have submitted their acquisition/consolidation plans to CBSL and obtained relevant preliminary approvals.

 According to the Central Bank among these companies were Ass tline Leasing Co Ltd – acquisition of finance business licence of Kanrich Finance Ltd and settlement of its deposits,LB Finance PLC – acquisition and subsequent amalgamation of Multi Finance PLC, SMB Leasing PLC – acquisition of finance business licence of Swarnamahal Financial Services PLC and settlement of its deposits. 

Other companies are Commercial Leasing & Finance PLC – acquisition and subsequent amalgamation of Sinhaputhra Finance PLC, HNB Finance PLC – acquisition and subsequent amalgamation of Prime Finance PLC. , LOLC Finance PLC- amalgamation of Commercial Leasing & Finance PLC. 

As a result of these developments, the Non-Bank Financial Institutions sector has witnessed a significant improvement in compliance with regulatory capital requirements and has recorded the lowest non-compliance levels during recent times, Central Bank stated in a media release.