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SL to approve $4.5bn Sinopec refinery proposal on Monday

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Colombo (LNW): Sri Lanka is poised to greenlight a US $4.5 billion refinery proposal from Chinese state-owned company Sinopec on Monday (27), Energy Minister Kanchana Wijesekera disclosed.

In the midst of its most severe economic crisis in over 70 years, Sri Lanka is actively seeking new investments and bolstering its domestic fuel sources.

The proposal is set to be discussed on Monday’s agenda, expressing optimism about receiving approval from the cabinet, a report by REUTERS revealed.

Once the approval is granted, the intention is to promptly invite Sinopec to formalise the agreement through signing.

Sinopec, renowned as the world’s leading refinery in terms of capacity and a major player in the petrochemical sector, views this investment as a significant milestone in its ongoing efforts to expand beyond the borders of China. The company already holds refinery assets in Saudi Arabia and engages in petrochemical production in Russia.

While the specifics of Sinopec’s investment remain under wraps until the agreement is signed, the Minister emphasised that the initial commitment is at least US $4.5 billion. Further details will be disclosed as the project progresses and additional components are incorporated, he added.

This development aligns with China’s expansive Belt and Road Initiative, a strategic endeavor aimed at revitalising the ancient Silk Road to enhance global trade infrastructure.

Previously, state-run China Merchant Port Holdings secured a 99-year lease for Hambantota port, and a US $392 million deal was inked for the construction of a logistics and storage hub in Colombo port, as reported by Chinese state media in April.

Upon official approval, Sinopec plans to commence the basic engineering design phase, which includes finalising the refinery’s size and technical configuration.

This investment will complement Sinopec’s recent foray into the fuel retailing business, making it the third international company with a foothold in Sri Lanka, holding a license to operate 150 petrol stations, the REUTERS report added.

Sinopec and commodities trader Vitol were shortlisted by the Sri Lankan government in August to bid for the refinery. However, Vitol withdrew from the competition, leaving Sinopec as the sole contender.

The refinery may extend its reach beyond Sri Lanka, considering the country’s relatively low local fuel consumption, Industry experts speculated.

The partnership with China Merchants Port could facilitate the expansion of bunker fuel supply at Hambantota, strategically positioned along busy shipping lanes between Europe and Asia.

Sinopec’s fuel oil division, which initiated its retail business in 2019, has been supplying marine bunker fuel at Hambantota, according to another Sinopec official. In contrast, Sri Lanka’s existing refinery at Sapugaskanda, operational since 1969, processes 38,000 barrels of oil per day.

Today’s (Nov 26) weather: Showers to continue; several provinces to experience misty conditions

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By: Isuru Parakrama

Colombo (LNW): Showers or thundershowers will occur at a few places in Sabaragamuwa, Central and Uva provinces after 2.00 p.m, and several spells of showers may occur in Northern and Eastern provinces, the Department of Meteorology said in its daily weather forecast today (26).

Misty conditions can be expected at some places in Western, Sabaragamuwa, Central and Uva provinces during the morning, the statement added.

The 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 may occur at a few places in the sea areas around the island particularly during the afternoon or night.
Winds:
Winds will be North-easterly or variable in direction. Wind speed will be (30-40) kmph in the sea areas off the coast extending from Puttalam to Trincomalee via Kankasanthurai. Wind speed will be (20-30) kmph in the other sea areas around the island.
State of Sea:
The sea areas off the coast extending from Puttalam to Trincomalee via Kankasanthurai will be moderate and slight in the other sea areas around the island. Temporarily strong gusty winds and very rough seas can be expected during thundershowers.

September records 168 cases of child sexual abuse, 22 underage pregnancies

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Colombo (LNW): In a recent discussion at the Parliamentary Committee on Public Finance, it was disclosed that 168 cases of child sexual abuse were reported in September, with 22 girls under 16 becoming pregnant.

The committee, which included representatives from civil organisations like the Westminster Foundation for Democracy, convened to gather ideas and suggestions on the budget proposals for 2024 and the country’s policies.

During the discussion, civil society representatives emphasised the urgent need for a systematic program to provide sex education to children.

The Committee also highlighted the importance of identifying the number of school girls requiring various facilities, including sanitary facilities, and establishing a system to provide them with the necessary support.

Civil organisation representatives brought attention to the problems arising from insufficient focus on women’s welfare and the challenges faced by school girls, contributing valuable insights to the committee’s considerations.

Potential December profits of CEB to benefit consumers in April: Minister

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Colombo (LNW): Minister of Power and Energy, Kanchana Wijesekera, announced plans to allocate any operating profit realised by the Electricity Board in December, attributed to favorable rain conditions, to consumers in April.

Despite the current financial deficit of Rs. 12 billion, Minister Wijesekera expressed optimism about a potential positive turn in the financial outlook, anticipating insights from the upcoming financial report in December.

The Minister shared these details during a Press Briefing at the Presidential Media Centre organised under the theme ‘Collective Path to a Stable Country’ on November 25.

Full Statement:

The restructuring of the Ceylon Electricity Board (CEB) has long been a subject of discussion within the country. In a significant development, the Cabinet granted approval last Monday for the restructuring based on the submitted report. Additionally, the proposed new electricity bill received approval, marking a crucial step towards enhancing the efficiency and effectiveness of the electricity sector in alignment with national objectives

Consequently, measures are underway to officially gazette and submit the new Electricity Act to Parliament within the upcoming two weeks. The intention is to facilitate a comprehensive debate on the proposed Act in the Parliamentary sessions scheduled for January of the following year.

The Minister addressed misconceptions raised in Parliament concerning the configuration of electricity generation, transmission and distribution. The Minister’s proposal entails restructuring power generation into four distinct companies, emphasizing that the entire hydroelectricity sector, constituting 100%, will remain under government control. The management of power plants situated in close proximity to Mahaweli, Lakshapana and Samanalaweva will also be retained by the government.

As part of this restructuring initiative, it has been decided to consolidate the Norochchole power plant under a single company, while all other power plants will be grouped together under a separate entity. This strategic decision aims to optimize operational efficiency and enhance the overall effectiveness of the power generation sector.

The proposal includes the establishment of a distinct company dedicated to transmission work, with the main control system remaining entirely under government ownership. Furthermore, it is suggested that the four distribution zones be transformed into four separate companies, each tasked with efficient and independent operation. This strategic proposal aims to streamline the transmission and distribution processes, ensuring enhanced effectiveness and responsiveness within the electricity sector.

The restructuring of the electricity board is anticipated improvements in efficiency, quality and reduction of wastage. The initiative takes into consideration existing laws and regulations in various countries worldwide. The implementation of the restructuring plan is slated to follow the submission of the draft, incorporating feedback and suggestions from various stakeholders, including experts of the relevant field. The continuity of the Public Utilities Commission is expected to remain unchanged, operating in a manner consistent with current practices.

Presently, the Electricity Board is experiencing a financial deficit of Rs. 12 billion. Regrettably, despite occurrence of rains, the Electricity Board has not yet achieved a financially profitable position. The current rain situation has yet to contribute to the desired positive impact on the board’s financial standing. The board is closely monitoring the situation, and if operational profits are realized by December, as determined through financial calculations, a concession will be extended to consumers in April, aligning with the commitment to pass on benefits to the public contingent upon favourable financial outcomes.

The nation has suffered the loss of numerous power plants as a consequence of delayed policy decisions and the prolonged non-implementation of previously made decisions. The proposed construction of the Sampur power plant, a project that has been under consideration for several years, faced a significant setback when the decision was made in 2016 to forego its construction. Originally slated for completion in 2020, the non-realization of the Sampur plant has resulted in an annual loss of Rs. 95 billion.

As part of the government’s strategic initiatives, five significant projects have been identified for immediate implementation. Additionally, there are plans to sign agreements for five more projects before the end of the current year. The forthcoming agreements include collaborations with the Adani wind power plant in Mannar, the construction of a solar panel power plant in Siambalanduwa, the Hambantota solar panel project, also projects proposed for Batticaloa and Punakari.

Furthermore, the government has issued instructions to the relevant departments to reassess the fee for reconnection following a power cut. It is anticipated that the current reconnection fee, set at Rs. 3000, will be revised to a range between Rs. 1000 and Rs. 2000. This adjustment is aimed at ensuring a more reasonable and accessible reconnection process for consumers, aligning with the government’s commitment to enhancing customer satisfaction and service affordability in the electricity sector.

Education Minister aims to educate children in political process via Student Parliament

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Colombo (LNW): Minister of Education and Leader of the House, Susil Premajayantha, emphasised the value of the Student Parliament in shaping the future leadership of the country.

Speaking at the inaugural debate of the Student Parliament at Sivali Central College in Ratnapura, held at the Ministry of Education on Friday (24), Minister Premajayantha highlighted the importance of providing children with practical political experience to contribute to a strong political future.

The Minister noted that approximately 3,000 student parliaments are currently active nationwide, with the ministry’s goal being to nurture responsible, decent, and honest leadership from an early age.

Addressing the gathering, Assistant Secretary General of Parliament, Hansa Abeyratne, underlined the significance of the Parliament as the supreme institution in the country, as outlined in Articles 3 and 4 of the Constitution.

He emphasised that despite challenges, parliamentary democracy is a time-tested concept with no viable alternative.

Following the opening remarks, the Student Parliament commenced, focusing on the topic “The contribution of the education system to building sustainable development and the role of the Student Parliament.”

At the conclusion of the debate, certificates were awarded to student parliamentarians, and officials from the Ministry of Education received sets of books compiled on the parliamentary process.

The event, attended by Venerable clergy, Additional Secretary (Administration) to the Prime Minister Harsha Wijewardene, Co-Curriculum Director of the Education Ministry Githani Subasinghe, officials from the Department of Communication of Parliament, Principal of Sivali Central College, Ratnapura Captain Neil Dhammika Watukarawatta, Deputy Principal, teachers, and students, was organized jointly by the Ministry of Education and the Department of Communication of the Parliament of Sri Lanka.

EU extends EUR 15mn to promote circular economy in SL’s food sector.

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By: Staff Writer

Colombo (LNW): Sri Lanka and the European Union (EU) entered into a financing agreement to promote a circular economy and sustainable consumption and production in the food sector, finance ministry announced.

Under the agreement, the EU will extend EUR 15 million to increase food availability for vulnerable people in Sri Lanka by establishing more efficient distribution channels/mechanisms of food, avoiding food waste and/or convert food waste much-needed farming inputs like organic fertilizer, animal feed, etc.

The action is aligned with the Paris Agreement, 2030 Agenda for Sustainable Development and more particularly, the external dimension of the EU policies under the EU Green Deal and more directly to SDG 12 on responsible consumption and production.

It will also contribute to Sri Lanka’s commitments under the 2021 updated National Determined Contributions (NDCs) and implementation of the National Policy on Sustainable Consumption and Production.

The project supports the economic crisis in Sri Lanka by building economic resilience and improving food security and nutrition while reducing impact of human activities on human and animal health, environment, biodiversity and more generally on the transportation and disposal contribute to greenhouse gas emissions.

Project activities align with the objective to reduce losses and increase recovery, processing and supply of edible and safe food surplus and/or waste management for the benefit of vulnerable consumers and/or food producers and to enhance effectiveness of the sustainable production, distribution and consumption models related to food waste/loss and single use plastic food packaging.

“Sri Lanka faces numerous challenges, from resource scarcity to effective protection of environmental and other resources. Within these challenges, however, lies an opportunity to adopt a circular economy model that can transform the development of new technologies, business models and entrepreneurship and innovation, that foster a thriving economy,” said Ambassador of the European Union to Sri Lanka and the Maldives Moreno Carmen.

Carmen stressed that promoting circular economy practices is vital for the country to mitigate the risk of crises in the future and to establish food security and sustainability.

ADB recruits experts to assist Sri Lanka’s electricity sector reforms.

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By: Staff Writer

Colombo (LNW):The Asian Development Bank (ADB) has recruited and extended the services of several experts to assist in the reform process of Sri Lanka’s electricity sector.

Minister of Power and Energy Kanchana Wijesekera, on Wednesday (22 Nov.), met with officials of the reform secretariat, to discuss the next steps required to be followed for the reform process.

Accordingly, the Minister stated that ADB has recruited and extended the services of Dr. Pankaj Batra, former Chairman of the Central Electricity Authority of India to assist the Reform Secretariat on the National System Operator, along with Prof. Arosha Adikaram, Chair of the Human Resources Department, University of Colombo to assist on the Human Resource Management of CEB.

The services of ADB Executive Consultant Debasis Mohapatra, too was extended to consult on institutional strengthening.

“We discussed the observations made by the President, Cabinet Ministers, Development Agencies such as ADB, JICA, World Bank, USAID, the inclusion of regulations necessary for a smooth transition, consumer protection laws, constitutional requirements, tariff regulations, before gazetting & presenting in Parliament for approval”, Minister Wijesekera said in this regard, in a post on X (formerly Twitter).

The Sri Lankan government is preparing to introduce a new legislation that would establish independent corporate entities responsible for activities related to electricity generation, transmission, distribution, trade, supply, and procurement, already performed by the Ceylon Electricity Board.

The draft bill received the green light from the cabinet recently, and it will be presented to parliament in the near future.

The bill aims to establish independent corporate entities responsible for activities related to electricity generation, transmission, distribution, trade, supply, and procurement, already performed by the Ceylon Electricity Board.

Entities will be set up in a manner in which they can be registered under the Companies Act. This move is to be done with the aim of attracting new investments and creating market competition.

It also proposes for the establishment of a National Electricity Advisory Council, while the Public Utilities Commission of Sri Lanka will serve as the regulator of the electricity sector.

The bill also proposes the implementation of timely, legal, structural, oversight, and market-based changes to ensure the financial self-sufficiency of the corporate entities.

This includes the adoption of a cost-reflective and transparent tariff system, improved financial and resource management, and enhanced accountability and oversight measures.

It also proposes the promotion of private sector investment in the electricity industry through stock market listing, and public-private partnership modalities.

It also places emphasis on the government’s commitment to decarbonization goals, climate change policies, and the use of renewable energy sources.

Only 31 of 179 Foreign Investment Projects Delivering Results

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The Sectoral Oversight Committee on National Economic and Physical Plans, chaired by MP Mahindananda Aluthgamage, recently convened in Parliament to address the concerning performance of Foreign Investment Projects. Shockingly, among the 179 ongoing projects, only 31 were found to be yielding desired outcomes, raising serious concerns about the efficiency of these initiatives.

Revealing insights into the matter, discussions disclosed that despite receiving approximately Rs. 2.6 trillion for these projects from foreign institutions, the expected results remain elusive. The Committee lamented the failure of these initiatives to fulfill objectives, attributing this shortfall to the inadequacies within relevant Ministries, operating institutions, and the established project monitoring units.

Highlighting the alarming rise in the country’s foreign debt due to this inefficiency, the Committee emphasized the urgent need for improved implementation strategies and stringent monitoring mechanisms. Consequently, officials were tasked with submitting a comprehensive progress report within a month, aiming to rectify these shortcomings.

Additionally, during the session, the Committee scrutinized four performance reports, encompassing various departments and annual reports from key institutions such as the Ceylon Industrial Development Board and the Sri Lanka Tourism Development Fund. The meeting also saw the active participation of MPs and Committee Members, including Harshana Rajakaruna, Sudath Manjula, Nipuna Ranawaka, Gunathilaka Rajapaksha, and others, signifying the gravity of the issue at hand.

Co-opted Members Appointed for Legislative Committee on ‘Dassana Bauddha Sanvidhanaya (Incorporation)’ Bill

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Co-opted Members to serve in the Legislative Standing Committee for the consideration of the “Dassana Bauddha Sanvidhanaya (Incorporation)” Bill named.

The Hon. Mahinda Yapa Abeywardana, Speaker announced to the House  yesterday  (24) that the following Co-opted Members to serve in the Legislative Standing Committee for the consideration of the “Dassana Bauddha Sanvidhanaya (Incorporation)” Bill. Namely;
 Hon. Keheliya Rambukwella
 Hon. Vidura Wickramanayaka
 Hon. Vijitha Berugoda
 Hon. Gayantha Karunatilleka
 Hon. Tissa Attanayake
 Hon. R. M. Ranjith Madduma Bandara
 Hon. Gunathilaka Rajapaksha
 Hon. Upul Mahendra Rajapaksha

A decision to debate the Budget Head of the Non-Cabinet Ministry of State Plantation Enterprises Reforms.
The Hon. Mahinda Yapa Abeywardana, Speaker also announced that apart from the Budget Head of the Ministry of Agriculture and the Ministry of Plantation Industry, scheduled to be debated on Saturday, December 09 th , 2023, the Budget Head of the Non-Cabinet Ministry of State Plantation Enterprises Reforms, has also scheduled to be debated.

President Wickremesinghe unveils bold agricultural export initiative at the 25th Presidential Awards Ceremony

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In a significant and forward-looking speech at the 25th Presidential Awards of the Export Development Board (EDB), held yesterday (24) at the Bandaranaike Memorial International Conference Hall (BMICH), President Ranil Wickremesinghe outlined a comprehensive plan to revitalize Sri Lanka’s agricultural sector for export, acknowledging past challenges and missed opportunities.

The President also underscored the importance of modernizing agricultural practices and enhancing research capabilities. He revealed plans to restructure and modernize existing agricultural research institutes, culminating in the establishment of the Agro-Technology University of Sri Lanka. This institution aims to support extension services and further innovation in the sector.

Reflecting on historical setbacks in the agricultural sector due to land reforms in 1972, President Wickremesinghe emphasized their adverse impact on agricultural exports. The President cited missed opportunities to focus on exports during key periods, such as the 60s, early 70s and post-war periods, attributing these lapses to internal conflicts and policy choices. The President expressed regret for not capitalizing on the country’s inherent strengths in agriculture, which other successful nations like Singapore had recognized.

Acknowledging the past neglect of agriculture due to various constraints, he emphasized the need to reposition the sector as a key player in the nation’s export strategy.

The President outlined a multi-pronged approach to agricultural development, targeting both small and large-scale farmers. He stressed the importance of providing financial support for smallholders to embrace agro-technology, aiming to enhance productivity. Additionally, plans were revealed to grant freehold status to individuals holding land development permits, fostering a sense of ownership and incentivizing further development.

In a bid to create opportunities for large-scale agriculture, President Wickremesinghe announced the allocation of previously undeveloped areas, including portions of the Mahaweli scheme and lands owned by government plantation corporations, for agricultural purposes. This strategic move is expected to bring approximately 300,000 acres of land under cultivation within the next few years, requiring significant capital investment.

To ensure the success of these initiatives, President Wickremesinghe emphasized the need for extension services, collaboration with the private sector and the establishment of an agro-technology university. He outlined plans to review the performance of regional plantation companies and shift towards contract farming in the tea and rubber sectors.

Turning to broader economic challenges, President Wickremesinghe acknowledged the country’s lack of growth and opportunities over the past two years. He attributed these issues to a historical imbalance in the trade and emphasized the critical need to address the budget deficit and balance of trade and highlighted the urgency of increasing exports. The President elaborated on measures to improve the country’s fiscal situation and the availability of funds for small and medium industries affected by the economic crisis.

In a global context, President Wickremesinghe acknowledged the challenges posed by international competitors such as China, Vietnam, Thailand and Malaysia in the export-oriented industries. Despite this, he stressed the urgency of the current export drive, emphasizing the need to secure the country’s future and prevent further brain drain.

The President highlighted the importance of attracting investments, both foreign and domestic, to drive innovation and expand export markets. He announced financial support for small and medium industries, underlining the government’s commitment to preserving and strengthening the supply chain.

President Wickremesinghe reiterated Sri Lanka’s historical strength as an exporter of agricultural goods. He urged a return to these roots, emphasizing the potential for value-added exports in tea, rubber and coconut. The President encouraged stakeholders to explore new areas of exports, inviting investments and partnerships to ensure the sustained growth of the country’s export-driven economy.

Concluding his address, President Ranil Wickremesinghe positioned the revival of Sri Lanka’s agricultural exports as a requirement for the nation’s economic turnaround. By combining support for smallholders, large-scale agricultural initiatives and strategic planning for export diversification, the President set forth a comprehensive vision aimed at harnessing Sri Lanka’s rich agricultural legacy for a prosperous future.

The ambitious plans outlined by President Ranil Wickremesinghe signal a pivotal moment for Sri Lanka’s agricultural sector, offering a roadmap for economic revitalization and a renewed focus on export-driven growth.

President Ranil Wickremesinghe conferred the Presidential Awards to recognize the exceptional contributions of Sri Lankan exporters to the export sector and overall economic advancement. In addition to the awards ceremony, President Ranil Wickremesinghe presided over the launch of the Sri Lanka Export Brand, the online application https:pea.edb.gov.lk dedicated to Presidential Export Awards.

The event was attended by Ministers Nimal Siripala de Silva, Bandula Gunawardena, Mahinda Amaraweera, Douglas Devananda, Jeevan Thondaman, State Ministers Dilum Amunugama, Taraka Balasuriya, Kanaka Herath, Aravinda Kumar, Secretary of the Investment Promotion Ministry, M. M. Naimuddin, Dr. Kingsley Barnard, Chairman/Chief Executive Officer of the EDB, Foreign Ambassadors and other officials.