Sapugaskanda oil refinery to be shut down due to crude oil shortage

The Sapugaskanda Oil Refinery will temporarily shut down tomorrow due to a shortage of crude oil, a senior official of the Sapugaskanda Oil Refinery told media.

This is the first time that the Sapugaskanda oil refinery will be closed due to lack of crude oil.

Udaya Gammanpila, Minister of Energy and Sumith Wijesinghe, Chairman of the Ceylon Petroleum Corporation stated that a special media briefing will be held tomorrow afternoon.

President of the Petroleum General Employees Union Dr. Ashoka Ranwala said the reason for the closure of the refinery was the lack of crude oil and the ship carrying the crude oil is scheduled to arrive in the third week of December. Until then the refinery has to be closed, the official said.

It is learned that the 90,000 metric tons of crude oil from the crude oil tanker, which will arrive in December, will be sufficient for only 15 days and another shipment is expected again in mid-January.

However, when inquired Energy Minister Udaya Gammanpila has stated that there will be no oil shortage. He has said that there are sufficient stocks of oil in the country and if there is a shortage of oil he will say so beforehand.

Ceylon Petroleum Corporation’s (CPC) Jathika Sevaka Sangamaya wing (JSS) Secretary Ananda Palitha has cautioned that there will be a shortage of kerosene in the country as the 100 percent kerosene requirement for the country is manufactured by the refinery.

Sri Lanka agreed to re-test rejected fertilizer: Chinese Ambassador

The Chinese Embassy says that Sri Lanka agreed to retest the rejected Chinese organic fertilizer via a third party, the Chinese Ambassador to Sri Lanka says.

The Chinese Ambassador to Sri Lanka, Qi Zhenhong made these remarks after a meeting with Venerable Warakagoda Sri Gnanaratana Thera, Chief Prelate of the Asgiriya Chapter today (14).

Speaking further, the Ambassador stated that the issue is merely a commercial dispute, however some parties are attempting to politicize it.

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Sri Lanka looking to lower fiscal deficit from 2022

(Reuters) – Sri Lanka is confident of not defaulting on its debts and will work on gradually improving the quality of its foreign exchange reserves, finance minister Basil Rajapaksa said on Saturday.

Rajapaksa said when presenting Sri Lanka’s 2022 budget on Friday that the government will cut its budget deficit to around 8.8% of gross domestic product in 2022. The deficit target for 2021 was revised to 11.1%.

“Sri Lanka has never defaulted in its history and that record will be maintained,” Rajapaksa told a briefing, a day after presenting the annual budget.

“Even part of our reserves are borrowed but we will improve the quality of reserves gradually from next year till 2024. By 2024, we are confident we will be able increase reserves and put debt on a sustainable footing,” he added.

The government did not provide an estimate for 2022 growth in its budget but at a forum on Saturday central bank governor Nivard Cabraal said growth is likely to improve in 2022.

“This year we are looking at 5% growth and if we have a good year in 2022 with tourism reaching a quarter of pre-2019 levels then we are well on course for 6% growth,” Cabraal said.

“This will mean our macroeconomic fundamentals will be in much better shape than now”.

CHALLENGING FUTURE

Debt repayment is one of the key challenges facing Sri Lanka with foreign exchange reserves having dropped to $2.27 billion as of end October.

Rajapaksa said remittances and tourism, which are the top two sources of dollar inflows, have both been affected by the COVID-19 pandemic and it has been tougher to attract investors.

“But we want to reduce borrowings. I guarantee that the $1.54 billion up to July 2022 will be repaid,” he added.

Treasury Secretary S. R. Attygalle said the budget is likely to bring in structural reforms to support and strengthen growth and improve Sri Lanka’s fiscal position.

He said the government has a revenue target of 15% of GDP by 2025 and that expenditure will be strictly managed.

“The revenue side is a challenge but with tourism bouncing back Sri Lanka will become comfortable in the next 12 to 18 months,” he added.

Analysts, however, are unsure if the announcements in the budget are enough to instil confidence in investors, ratings agencies and market participants.

“Overall, the budget is unlikely to help the economic situation significantly and does not give a strong indication of how it expects to meet its debt obligations going forward or how it expects to address the plummeting reserves,” said Trisha Peries, head of economic research at Frontier Research.

UN Law Commission: Ex-CJ’s bid fails

The United Nations (UN) International Law Commission (ILC) failed to elect former Chief Justice Mohan Peiris to its ranks last week.

According to the ILC, the election of the members of the Commission for a five-year term, beginning in January 2023, took place by secret ballot at the 32nd meeting of the General Assembly at its 76th session held last Friday (12).

Peiris was seeking one of eight seats on the ILC allocated to the Asia-Pacific region.

Eight nominees from India, Vietnam, Japan, China, South Korea, Cyprus, Mongolia, and Lebanon were elected from the secret ballot. While Peiris secured 112 votes, he failed to make it into the eight.

Accordingly, Professor (Dr.) Bimal N. Patel (India), Dr. Vilawan Mangklatanakul (Thailand), Asada Masahiko (Japan), Nguyen Hong Thao (Vietnam), Huikang Huang (China), Prof. Keun-Gwan Lee (South Korea), Andreas D. Mavroyiannis (Cyprus), Munkh-Orgil Tsend (Mongolia), and Nassib G. Ziade (Lebanon) were the eight selected nominees.

Peiris, along with two others from Kazakhstan and the Philippines, failed to gain a seat among the vacant 34 member positions.

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AG’s advice sought on Chinese fertilizer company’s letter of demand

The Attorney General’s advice is to be sought with regard to the letter of demand issued by the Chinese company which supplied the controversial stock of organic fertilizer.

Qingdao Seawin Biotech Group Co Ltd recently directed a letter of demand to Dr. W.A.R.T. Wickramaarachchi, Additional Director of the National Plant Quarantine Service of the Department of Agriculture, seeking USD 8 million in damages from the National Plant Quarantine Services (NPQS) of Sri Lanka.

The letter of demand in question was subsequently referred to the Attorney General.

In the Letter of Demand, sent through its local lawyers, Qingdao Seawin Biotech Group Co Ltd warns that failure to pay the said sum in three days would result in legal action.

The Sri Lankan government had decided to complete the shift from chemical to organic farming in April, with the government allocated 3.8 billion US dollars for organic fertilizer purchase in August by importing certain nutrients.

The Agriculture Ministry had selected China’s Qingdao Seawin Biotech Group Co. Ltd through open bidding to supply organic fertilizer.

The government decided to import 99,000 metric tonnes of organic fertilizer at a cost of 63 million US dollars from the Chinese company. However, the consignment was rejected after an analysis reportedly found it to be “tainted”.

In two samples, the Sri Lanka Standard Institutions as also National Plant Quarantine Service and Sri Lanka Atomic Energy Board found micro-organisms, pathogens, and diseases harmful to the soil, plants, and humans.

They had warned that China’s organic fertilizer would be an agricultural disaster as the samples were found to be infected with Erwinia, a notorious plant pathogen that causes severe post-harvest losses in crops.

After the rejection of the consignment this month, China announced the blacklisting of state-owned People’s Bank of Sri Lanka, citing a “vicious” Letter of Credit “default”.

China said that the Sri Lankan bank’s decision caused huge losses, but the bank clarified that it was only following court orders prohibiting it from making payments.

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Key takeaways from Finance Minister’s 2022 Budget speech

Minister of Finance Basil Rajapaksa, delivered his inaugural budget speech today (12). This is the 76th budget of an independent Sri Lanka and it is also the second budget of the incumbent Government.

Key takeaways from the Minister’s speech are detailed below:

Annual Warrant for State expenditure to be made a Quarterly Warrant in the future
Telephone expenditure in State institutions to be slashed by 25%
Construction of new office buildings for State institutions to be suspended for two years
Eligibility for MPs’ pensions to be extended to 10 years from the current 5 years
Radio/TV Broadcasting & Telecasting licences to be issued on an auction basis
Petrol allowance of Ministers & State officials will be reduced by 5 litres per month for an individual
The Special Commodity Levy to come into effect from 01 January 2022
Age limit for Govt. sector employees’ pension extended to 65 years
Rs. 15 million to be allocated for the development of their areas to each MP
Rs.600 Mn to 3-wheelers sector, Rs. 1,500 Mn for Private bus industry, Rs. 400 Mn for school vans & buses and Rs. 500 Mn to Event Management sector to be allocated to compensate for loss during pandemic
Rs.15,000 Mn allocated to provide relief packages to low income earning families
A one-time tax surcharge of 25% to be imposed on individuals or companies earning an annual taxable income of Rs. 2,000 Mn in financial year 2020/21
Rs.5 to be increased on the current retail price of each cigarette
Value added tax on financial services provided by commercial banks & financial institutions to be increased from 15% to 18%
All vehicles held up at SL Customs due to non-payment of taxes or other reasons to be released after charging such relevant taxes and fines
A levy to be imposed on motor vehicles meeting with accidents & such levy to be reimbursed through insurance.
Rs. 1,000 Mn allotted for senior citizens and people with special needs
Proposal to establish telecommunication network covering entire country
Govt. to extend retirement age of public servants to 65 years
Proposal to transfer Rs. 8.5 Bn that Perpetual Treasuries Limited earned in violation of the Code of Conduct at the Central Bank of Sri Lanka, to the Treasury.
Another Rs. 4 Bn allocated for every electorate in the country
MSME sector allocated Rs. 5 billion in relief
Additional Rs. 5000 Bn allocated to promote Organic Agriculture
Additional Rs. 15,000 Bn allocated to ensure access to clean drinking water
Rs. 500 Mn allocated to develop the renewable energy sector
Rs. 2000 Mn allocated for urban housing projects, Rs. 5000 Mn allocated for rural housing
Rs. 500 Mn allocated for the development of houses for people living in estate Line-Houses
Rs. 85,000 Mn will be allocated for rural community development
Rs. 3 Mn for every Grama Niladhari Division. A total of Rs. 42,053 Mn will be allocated for this purpose.
Read the Minister’s full speech by clicking the link courtesy Ada Derana – Finance Minister’s Full Budget Speech – 2022 by Ada Derana on Scribd.

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Indo-Lanka Parliamentary Friendship Association for Lanka’s 9th Parliament established

The India- Sri Lanka Parliamentary Friendship Association for the 9th Parliament of Sri Lanka was established on Thursday at the Parliament complex under the patronage of the Speaker of Parliament, Mahinda Yapa Abeywardana.

The High Commissioner of India to Sri Lanka, Gopal Baglay was the Guest of Honor.

The meeting was attended by more than 100 Members of Parliament and included several Ministers, State Ministers and MPs. Speakers at the meeting highlighted that this was the largest number of attendees they had seen for the establishment of a Parliamentary Friendship Association. This was highlighted as a testimony to the strength of India- Sri Lanka bilateral relationship.

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Chamal Rajapaksa, Minister of Irrigation and State Minister of National Security & Disaster Management and State Minister of Home Affairs was elected as the President of the Association. MPs Rauff Hakeem, M.A Sumanthiran and Dr. V. Radhakrishnan were elected as Vice- Presidents. Further, Anura Priyadharshana Yapa, MP and Jeevan Thondaman, State Minister for Estate Housing and Community Infrastructure were elected as the Secretary and Asst. Secretary respectively. Jagath Kumara Sumithraarachchi, MP, was elected as the Treasurer.

Speaking at the event, Foreign Minister Prof. G.L.Peiris highlighted the close civilizational ties between India and Sri Lanka. He also highlighted that the greatest gift of India to Sri Lanka was Buddhism and stressed the importance of people to people connect between the two countries.

In his remarks, High Commissioner Baglay congratulated the President and office bearers on their membership of the Association. He also expressed confidence that the establishment of the Association would reinvigorate Parliamentary exchanges and interactions between the two democracies. He added that this would further aid in strengthening the multi-faceted bilateral relationship between the two nations, especially in six areas including fostering sharing of democratic values, cooperation in combating common challenges, enhancing people-to-people connectivity, encouraging greater economic engagement, strengthening the cultural connect and sharing the fruits of development partnership.

The High Commissioner also read out excerpts from a message from Om Birla, Speaker of the Lok Sabha addressed to the Speaker of the Parliament of Sri Lanka extending his heartiest congratulations on the occasion.

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Archeology Department instructed to preserve historic Manthiri Manai palace in Jaffna

State Minister Vidura Wickremanayake during a study of ancient architecture in the Jaffna Peninsula has instructed the Department of Archeology to preserve the historic Manthiri Manai palace in Jaffna.

During a recent visit to Jaffna, the State Minister State has further instructed the relevant officials to look into any ownership issues and take necessary action.

Manthiri Manai palace, known in Sinhala as ‘Rajamanthri Maligaya’ is located in the Nallur Divisional Secretariat, Jaffna. This is one of the oldest buildings in the Jaffna district.

Considering these names, there are various theories as to whether this was the abode of a queen or queens or a palace of the Sankilian kings.

Today, the old architecture is somewhat preserved, and the main entrance is elegant and majestic.

The entrance has an ornamental gateway, a large arched porch and a tower. It is a two-storey structure with wooden carvings decorating the interior walls. At the entrance to the hall there is a beautiful wood carving and a lush lotus carving and a large classroom with entrance doors to the hall. The room to the left of the main entrance is slightly higher than the other rooms. The wooden beams used for this purpose can still be seen.

It has a well and a wash basin, a cellar, and a staircase leading down to underground rooms and secret tunnels. The kitchen and well were built to the right of the main entrance, and it appears that there were other rooms and parts connected to the outside of the building as well as to the outside through tunnels.

The entire building is constructed of Miocene limestone. The walls are plastered with lime mortar and there are various theories as to whether the main entrance and the interior tower decoration had a South Indian influence.

Many government officials were also present on the occasion.

UNP takes to the streets against rising commodity prices

The United National Party (UNP) took to the streets in Colombo on Friday to protest against the government’s mismanagement of the economy urging the government to reduce the rising cost of living and commodity prices.

Protesters marched to the Lipton Roundabout chanting slogans, displaying gas tanks as well as coconut and rice bags.

The march was followed by a protest rally with the participation of UNP leaders.

The Deputy Leader of the party Ruwan Wijewardene, General Secretary Palitha Range Bandara, Colombo Mayor Rosy Senanayake, former Minister Navin Dissanayake, Senior Vice President Sagala Ratnayake, President of the Government Nurses Association Saman Ratnapriya and other party members were also present.

Addressing the protest rally, the UNP leaders said that the budget had dealt another blow to the starving people.

Deputy Leader Ruwan Wijewardene said while the Minister of Finance presents the budget to Parliament, the people of the country are facing a huge food crisis.

“Due to the fertilizer crisis the farming community has fallen from pan to the fire. The economic problems faced by the people are infinite. Today we have joined the people in street battles against the most failed government in the history of Sri Lanka.”

The Deputy Leader said the UNP has never forgotten the people. “We stand for the issues of the people then, today and tomorrow.”

“In 2001 and 2015, the UNP inherited a collapsed economy. We are ready to solve the problems of today as we solved all of them then. They must now realize that this government has failed. I declare to you that today a revolution of a change has begun,” Wijewardene said.

Sri Lanka reports 23 Covid-19 deaths on Friday, toll rises to 13,950

Sri Lanka Friday reported 23 deaths due to COVID-19 after the figures were confirmed by the Director General of Health Services on Thursday, November 11.

Among the deaths reported today, 11 are of males and 12 of females. The majority of deaths – 21 – are of elderly people in the 60 years and above age group. A female below 30 years of age also succumbed to the disease.

According to the data reported by the Government Information Department, the total deaths due to Covid-19 since the pandemic began last year has now risen to 13,950.

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