News
LIOC move worsens govt.’s fuel woes
Widest difference in fuel pricing formula since LIOC’s entry in 2003
By Shamindra Ferdinando
Former Energy Minister Udaya Gammanpila says Lanka-India Oil Company (LIOC) has effectively taken itself out from the local petroleum market and is pricing its products in line with economic realities.
The LIOC has achieved that objective by keeping its diesel and petrol prices (per litre) Rs 77 and 92 , respectively, higher than those of Petroleum Corporation (CPC), the leader of the Pivithuru Hela Urimaya says.
Having increased diesel and petrol prices on 06 Feb. and 25 Feb, 202, causing a price difference of Rs. 17 and Rs 27, per litre of diesel and petrol respectively, the LIOC has widen that margin, the widest since its entry into the Sri Lankan market in 2003.
President Gotabaya Rajapaksa removed Gammanpila from ministerial portfolio on 03 March within 24 hours after a group of dissident constituents of the ruling Sri Lanka Podujana Peramuna (SLPP)) unveiled an alternative economic plan.
Responding to The Island queries, lawmaker Gammanpila said that the LIOC couldn’t be faulted for seeking to curtail losses. In terms of an agreement Sri Lanka entered into with India in respect of the LIOC’s entry into local market, the Indian enterprise had the right to increase its prices unless Sri Lanka absorbed the losses.
Attroney-at-law Gammanpila emphasized that current Ceypetco pricing formula didn’t reflect crude oil prices in the world market, which were rising even higher mainly as a result of the war in Ukraine.
Gamini Lokuge succeeded Gammanpila as the energy minister while Pavitradevi Wanniarachchi received the power portfolio, which was previously held by Lokuge.
MP Gammanpila said that the latest hike would make it impossible for the vast majority of people to pump diesel or petrol at LIOC service stations. However, those living in some areas would experience difficulties as they were serviced by LIOC. In terms of the 2003 agreement, LIOC took over one third of service stations at that time managed by the CPC. At the time of the agreement, the countrywide CPC network comprised 300 service stations. Today, LIOC operates 211 service stations.
LIOC blamed rising international prices due to a variety of reasons, including the Russian invasion of Ukraine for increasing its pricing formula for increases announced on Feb 06 and Feb 24 though the latest was blamed on what the Indian enterprise called a significant depreciation of the Lankan Rupee against the USD.
In a statement issued late Thursday night, the LIOC quoted its Managing Director as having said that the depreciation of the Rupee twice in a span of seven days by Rs 57 against USD has directly impacted the landed cost of Gasoil and Gasoline making them dearer by an equivalent amount per litre. Oil and gas prices are also surging as western countries respond to Moscow’s invasion with numerous sanctions to isolate Russia and cut it off from global oil markets. Our current losses are exorbitantly high considering current international prices leaving no other option but to increase the prices of Gasoil and Gasoline. However, it is a painful reality that even after this price increase, there would still be heavy losses at the prevailing international prices.”
LIOC MD Gupta emphasized that LIOC did not receive any subsidy from the Government of Sri Lanka and its losses were calculated based on actual landed cost of the product after considering payment of applicable duties, taxes and other statutory levies including handling charges.
Former Minister Gammanpila said that the country lacked the wherewithal to meet the economic crisis. “There is no point in denying that fact. The sacking of Wimal Weerawansa and Udaya Gammanpila wouldn’t make a difference at all, the PHU leader said, urging the government to work out a proper strategy at least now.
Lawmaker Gammanpila recalled his efforts to establish a special fund to cushion the impact in case of steep increase in fuel prices. The former Minister alleged that his proposal that had been made in March 2021 didn’t find favour with the Finance Ministry. Even after a cabinet sub-committee endorsed the proposal in Oct. 2021, the Finance Ministry simply ignored it, the MP alleged.
Gammanpila said that regardless of repeated assurances given by the government regarding the normalization of fuel supply, the LIOC increase would bring the entire Ceypetco distribution under tremendous pressure. The former Minister pointed out that the LIOC sales volumes would drop sharply to such an extent it would no longer matter.
The U.S. Embassy in Colombo welcomed the U.S. Sports Envoys to Sri Lanka, former National Basketball Association (NBA) and Women’s National Basketball Association (WNBA) players Stephen Howard and Astou Ndiaye, from June 8 through 14.
The Public Diplomacy section of the U.S. Embassy said that it would launch a weeklong basketball program intended to harness the unifying power of sports, made possible through collaboration with Foundation of Goodness and IImpact Hoop Lab.
While in Sri Lanka, Howard and Ndiaye, both retired professional basketball players, will conduct a weeklong program, Hoops for Hope: Bridging Borders through Basketball. The Sports Envoys will lead basketball clinics and exhibition matches and engage in leadership sessions in Colombo and Southern Province for youth aged 14-18 from Northern, Uva, Eastern and Western Provinces, offering skills and leadership training both on and off the court. The U.S. Envoys will also share their expertise with the Sri Lanka Basketball Federation, national coaches, and players, furthering the development of basketball in the country. Beyond the clinics, they will collaborate with Sri Lankan schoolchildren to take part in a community service project in the Colombo area.
“We are so proud to welcome Stephen and Astou as our Sports Envoys to Sri Lanka, to build on the strong people-to-people connections between the United States and Sri Lanka,” said U.S. Ambassador Julie Chung. “The lessons that will be shared by our Sports Envoys – communication, teamwork, resilience, inclusion, and conflict resolution – are essential for leadership development, community building, equality, and peace. The U.S. Sports Envoy program is a testament to our belief that sports can be a powerful tool in promoting peace and unity.”
SJB Colombo District MP Mujibur Rahuman in parliament demanded to know from the government the reasons for CEB suspending the leave of all its employees until further notice from Thursday.
MP Rahuman said that the CEB has got an acting General Manager anew and the latter yesterday morning issued a circular suspending leave of all CEB employees with immediate effect until further notice.
“We demand that Minister Kanchana Wijesekera should explain this to the House. This circular was issued while this debate on the new Electricity Amendment Bill was pending. There are many who oppose this Bill. The Minister must tell parliament the reason for the urge to cancel the leave of CEB employees,” the MP said.However, Speaker Mahinda Yapa Abeywardena prevented Minister Wijesekera responding to the query and said that the matter raised by MP Rahuman was not relevant.
The Chartered Institute of Personnel Management (CIPM) successfully concluded the 8th Annual CIPM Symposium, which took place on 31st May 2024. Themed “Nurturing the Human Element—Redefining HRM in a Rapidly Changing World,” the symposium underscored the pivotal role of human resource management (HRM) in today’s dynamic global landscape. Since its inception in 1959, CIPM has been dedicated to advancing the HR profession through education, professional development, and advocacy, solidifying its position as Sri Lanka’s leading professional body for HRM.
Ken Vijayakumar, the President of the CIPM, graced the occasion as the chief guest. The symposium commenced with the welcome address by the Chairperson, Prof. Arosha Adikaram, followed by the Web Launch of the Symposium Proceedings and Abstract Book by the CIPM President. The event featured distinguished addresses, including a speech by Chief Guest Ken Vijayakumar, President of CIPM, and an address by Guest of Honor Shakthi Ranatunga, Chief Operating Officer of MAS Holdings Pvt. Ltd., Sri Lanka.
The symposium also featured an inspiring keynote address by Prof. Mario Fernando, Professor of Management and Director of the Centre for Cross Cultural Management (CCCM) at the University of Wollongong, Australia.
Vote of Thanks of the inauguration session was delivered by Dr. Dillanjani Weeratunga, Symposium Co-chair.
The symposium served as a comprehensive platform for researchers to present their findings across a wide range of critical topics in HRM. These included Cultural Diversity and Inclusion, Talent Development and Retention, Ethical Leadership and Corporate Social Responsibility, Adapting to Technological Advancements, Mental Health and Well-being at Work, Global Workforce Challenges, Employee Empowerment, and Reskilling and Upskilling.
The plenary session was led by Prof. Wasantha Rajapakse. Certificates were awarded to the best paper presenters during the valedictory session, followed by a vote of thanks delivered by Kamani Perera, Manager of Research and Development.
The annual symposium of CIPM was a truly inclusive event, attracting a diverse audience that spanned undergraduates, graduates, working professionals, research scholars and lecturers. This widespread interest highlights the symposium’s significance in the field of HRM, offering a unique opportunity for everyone to network and learn from scholarly brains.The CIPM International Research Symposium was sponsored by Hambantota International Port, Sri Lanka Institute of Information Technology (SLIIT), E B Creasy & Co. PLC, and Print Xcel Company.
US sports envoys to Lanka to champion youth development
Rahuman questions sudden cancellation of leave of CEB employees
