By: Staff Writer

November 04, Colombo (LNW): In the first half of 2024, Sri Lanka’s state-owned Ceylon Petroleum Corporation (CPC) saw a significant reduction in its petroleum import costs, dropping to USD 1.235 billion from USD 1.38 billion in the same period of 2023. This reduction, as reported by the Finance Ministry, stemmed primarily from lower import volumes, influenced by the entrance of new competitors in the market, despite rising international crude oil prices.

The drop in import costs positively impacted CPC’s cost of sales, which decreased by 17.2% to LKR 467.7 billion, compared to LKR 564.6 billion in the first six months of 2023. However, CPC’s turnover simultaneously experienced a more substantial decline of 20.1%, dropping from LKR 681.5 billion in the first half of 2023 to LKR 544.3 billion in 2024.

This reduction in revenue significantly affected the company’s profitability, with net profits falling sharply by 70.2% to LKR 20.7 billion, compared to LKR 69.5 billion in the previous year. The lower profitability was attributed to increased competition and lower sales, despite the overall decrease in the cost of imports.

Furthermore, CPC’s financial obligations improved over the same period. The organization has now cleared all liabilities to Sri Lanka’s Bank of Ceylon and People’s Bank, thanks to a government initiative that took on CPC’s dollar-denominated debts from state banks. The debt owed to the National Iranian Oil Company, which had stood at USD 230.9 million at the end of 2023, also decreased to USD 191 million by the end of June 2024.

The Finance Ministry report highlighted that CPC’s prior debt was largely due to dollar loans taken from state banks to cover supplier credits during times of currency shortages. These shortages often arose from the central bank’s policy of flexible inflation targeting, which involved printing money to encourage inflation and stimulate economic growth.

However, when money was created to finance imports, it led to a widening current account deficit and subsequent currency devaluations, causing CPC to incur substantial losses.

The economic challenges CPC faced were not new. During past currency crises, including one tied to the Iranian debt two decades ago, CPC had relied on suppliers’ credit.

Analysts noted that this pattern of incurring debt from money printing has continued to burden Sri Lanka’s economy. Additionally, the central bank’s approach of maintaining low interest rates through open market operations had similar consequences, contributing to the country’s financial instability.

After Sri Lanka’s civil war, the government pursued heavy debt accumulation, enacting the Active Liability Management Law to manage its debts actively. This approach, combined with unsustainable interest rate policies, eventually pushed Sri Lanka towards default.

However, since the last quarter of 2022, Sri Lanka’s central bank has maintained relative monetary stability, which has been advantageous for state energy firms like CPC. This stability, along with a gradual currency appreciation, has somewhat mitigated the impact of global oil price surges on CPC’s operations.

These changes have allowed CPC to reduce debts and manage costs better, even as profits and revenues shrink amid heightened market competition.

By: Isuru Parakrama

November 04, Colombo (LNW): The Public Utilities Commission of Sri Lanka (PUCSL) has instructed the Ceylon Electricity Board (CEB) to present a more robust proposal for lowering electricity tariffs, deeming the initial reduction insufficient.

The CEB has until 8 November to deliver an updated plan.

The initial proposal, submitted by the CEB on October 24 October, suggested tariff cuts between 4 per cent and 11 per cent.

However, stakeholders, including consumer advocacy groups, have raised concerns that these reductions fall short, particularly in light of the CEB’s improved financial performance in recent months.

Critics argue that the utility provider’s profitability should translate into more significant relief for consumers facing high electricity costs.

PUCSL Communications Director Jayanath Herath highlighted that, following the submission of a revised proposal by the CEB, the PUCSL will work on a counter-proposal.

This will aim to ensure that the final tariff adjustments are better aligned with both consumer expectations and the utility’s recent financial outcomes.

By: Isuru Parakrama

November 04, Colombo (LNW): Shashi Prabha Ratwatte, wife of former State Minister Lohan Ratwatte, was taken into custody following a court appearance at Nugegoda Magistrate’s Court in connection with the discovery of an unregistered luxury vehicle at her residence in Mirihana, Nugegoda.

The Nugegoda Magistrate subsequently ordered her remand until November 07.

The incident originated on October 26, when police located a high-end vehicle lacking registration plates at a three-storey residence owned by Mrs. Ratwatte.

This search, conducted following a tip-off received at police headquarters, uncovered the vehicle in the Embuldeniya neighbourhood.

Lohan Ratwatte, who was also arrested in Katugastota, Kandy, on October 31, reportedly informed police that the unregistered vehicle had been brought to the Mirihana house by his private secretary about three weeks prior to the search.

According to Ratwatte and his wife, his mother-in-law was residing at the property.

In a tragic turn, the private secretary in question was recently found dead from gunshot wounds in Kandy’s Katugastota area, casting further complexity on the case.

Since his arrest, Ratwatte was initially admitted to the Prison Hospital on November 02 due to what prison authorities described as “sudden illness” and was later transferred to Colombo General Hospital for further treatment.

By: Staff Writer

November 04, Colombo (LNW): The Board of Directors of Sri Lanka Telecom PLC has resolved to appoint Dr. Mothilal de Silva, as an Independent, non-Executive Director and Chairman of the Board of Sri Lanka Telecom PLC with effect from 04 November 2024.

With a career spanning over many decades, Dr de Silva is a result oriented multidisciplinary C-level executive in the telecommunication industry having experience in Sri Lanka and multiple countries in Asia and Pacific regions. He is a turnaround specialist and a strategist.

He was also the Group Chief Strategy Officer and Group Chief Corporate Officer of Dialog Axiata, General Manager (Sales, Marketing and Customer Service) of MTN Networks Pvt Ltd and Vice President Process Excellence and Group Operations of Axiata Group Malaysia.

Under his leadership as Group Chief Executive Officer, he turned around the Fiji’s state-owned telecommunication company Telecom Fiji Ltd sustainably after 5+ consecutive loss-making years.

During his tenure at Telecom Fiji, the company registered consistent growth in profit, dividend and investment for network modernisation. He sat on the Board of Directors of Lanka Communication Services Pvt Ltd, a telecommunication service provider for enterprises in Sri Lanka.

As a C-level executive at Dialog, Mothilal set up Corporate Planning, Strategy, MIS, Business Intelligence, Performance Management, Quality, Process Reengineering, Enterprise Program Management and Corporate Development divisions from scratch while apprenticing young set of managers who had progressed to become leaders in Dialog and Axiata Group subsidiary companies. He was also instrumental in winning GSMA awards, International Asia Pacific Quality Award, Asia CSR award for Dialog Axiata and many national awards.

Mothilal obtained Doctor of Business Administration from PPA Business School, Paris, with a distinction for his dissertation “Corporate Venture Capital as an engagement model for co-creating 5G ready services”. He has a MSc in IT from Keele University UK, MBA from PIM, SL, BSc (Engineering) SL, Post Graduate Diploma in Strategic Management from Maastricht School of Management, Netherland and a Post Graduate Diploma in Marketing Management from PIM SL.

By: Isuru Parakrama

November 04, Colombo (LNW): The Litro Gas Company has announced that it will not increase the prices of its domestic LP gas cylinders for November 2024, maintaining current rates to support consumers amidst rising global gas costs.

Channa Gunawardena, Chairman of Litro Gas, confirmed that the company decided to absorb the impact of global price hikes, prioritising consumer relief over potential profits.

This decision, he noted, was made possible through effective stock management and operational efficiencies within the state-owned enterprise.

As a result, the prices for domestic Litro LP gas cylinders will remain as follows:

• 12.5kg cylinder – Rs. 3,690
• 5kg cylinder – Rs. 1,482
• 2.3kg cylinder – Rs. 694

Litro’s move to stabilise prices offers some financial reprieve to households, especially as global energy markets experience fluctuations.

By: Isuru Parakrama

November 04, Colombo (LNW): In a significant ruling, the Supreme Court has dismissed a fundamental rights petition that sought to challenge the scheduled date for the upcoming general election, set for November 14, 2024.

The decision was reached today (04) by a three-judge panel, following a thorough examination of the arguments presented.

The petition was brought forth by H.M. Priyantha Herath, the Secretary of the Api Sri Lanka National Organisation and a civil rights activist.

Filed on October 21, the petition claimed that the announcement of the election date and the related nomination processes contravened the provisions outlined in the Elections Act of Sri Lanka.

In his arguments, Herath contended that the timing and manner in which the election date was declared were unconstitutional, posing potential implications for the electoral process.

However, the court found insufficient grounds to support these claims, ultimately leading to the dismissal of the petition.

The dismissal of this challenge clears the way for the electoral process to proceed as planned, ensuring that preparations for the election can continue without further legal hindrance.

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