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Tuesday June 18th, 2024

Sri Lanka expects March furnace oil ship to ease power cuts: Minister

ECONOMYNEXT – Sri Lanka’s Ceylon Petroleum Corporation will be able to keep a steady supply of furnace oil for power generation from March 03, if a letter of credit can be opened and paid on time, Energy Minister Udaya Gammanpila said.

At the moment many Ceylon Electricity Board power plants which usually run on furnace oil are using auto diesel which has reduced diesel available for transport. As a result both power and transport sectors are disrupted.

“Under a tender floated for furnace oil a stock of 30,000MT is due to arrive on March 03,” Minister Gammanpila told parliament.

“If we open Letters of Credit on time, we can provide a continuous supply to furnace oil plants.”

“In addition the Sapugaskande refinery produces about 800 MT tonnes of furnace oil a day.”

If the refinery runs through the month about 24,000MT of fuel would be produced in March.

Sri Lanka’s CEB was denied permission to have one hour power cuts to conserve water for March and April when a coal plant went down and is now forced to cut more power.

Even otherwise, a deficit was expected in the dry season, Acting power minister Duminda Dissanayake said.

A capacity deficit was forecasted by power sector analysts for 2018 when the President Maithripala Sirisena cancelled a coal plant, but due to weak economic growth and Coronavirus, demand did not grow as expected.

In general peak capacity goes up by about 150Mega Watts a year.

“Even if thermal plants are given fuel without a break, due to dry season, power has to be cut for at least a short time until rains return,” Minister Dissanayake said.

Fuel needs of the power plants were as follows.

Barge mounted plant: 280MT of furnace oil

Sapugaskanda A plant: 300MT furnace oil

Sapugaskanda B plant: 300MT furnace oil

Uthuru Janani : 120MT furnace oil

Kelanitissa combined cycle: 650MT of Naptha

Kelani GT 7 Gas turbine – 400MT of Diesel

West Coast combined cycle: 1400MT furnace oil or 1500MT Diesel

Sojitz – 600MT Diesel

Other private plants: 120MT of diesel .(Colombo/Feb26/2022)

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Sri Lanka’s Ceylon Chamber links up with Gujarat Chamber

ECONOMYNEXT – The Ceylon Chamber of Commerce has signed an agreement with the Southern Gujarat Chamber of Commerce and Industry (SGCCI) to increase trade cooperation between India and Sri Lanka.

The MOU was signed by CCC CEO Buwanekabahu Perera, SGCCI President Ramesh Vaghasia, in the presence of Dr Valsan Vethody, Consul General for Sri Lanka in Mumbai, India.

“With the signing of the MoU, … the Ceylon Chamber of Commerce and SGCCI aim to facilitate trade between the two countries via initiatives such as trade fairs and delegations, business networking events, training programmes,” the Ceylon Chamber said in a statement.

“This partnership will open doors for Sri Lankan businesses to explore opportunities in Surat’s dynamic market and enable the sharing of expertise and resources between the two regions.”

Established in 1940, SGCCI engages with over 12,000 members and indirect ties with more than 2,00,000 members via 150 associations. It promotes trade, commerce, and industry in South Gujarat.

The region’s commercial and economic centre Surat has risen to prominence as the global epicenter for diamond cutting and as India’s textile hub, and is ranked the world’s 4th fastest growing city with a GDP growth rate of 11.5%

Surat’s economic landscape is vibrant and diverse. As India’s 8th largest and Gujarat’s 2nd largest city, it boasts the highest average annual household income in the country.

The nearby Hazira Industrial Area hosts major corporations like Reliance, ESSAR, SHELL, and L&T. (Colombo/Jun18/2024)

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Sri Lanka telecommunications bill some clauses ruled unconstitutional by SC: Speaker

ECONOMYNEXT – Sri Lanka’s Supreme Court has found a number of clauses in a proposed amendment to the Telecom Telecommunications Amendment bill unconstitutional, speaker Mahinda Yapa Abeywardana said.

“Clause No 8, proposed section 9A 2 of the bill is inconsistent with Article 12 1 of the constitution, however this inconsistency shall cease if word ‘may’ will be replaced with word ‘shall’ as set out in the determination of the supreme court.”

“Clause No 9 is inconsistent with Article 12 1 of the constitution and only can be passed with special majority required under paragraph 2 of the Article 84. However, the inconsistency shall cease if clause is amended as set out in the determination of the supreme court.

Clause No 12, proposed section 17 10 of the bill is inconsistent with Article 12 1 of the constitution and can only be passed with special parliament majority required under Article 84 paragraph 2. However, the inconsistency shall cease if clause is amended as set out in the determination of the supreme court.”

Sections of clauses 13, 18, 20, 33 and 35 were also in violation of the constitution, and could only be passed by a special majority of parliament. (Colombo/Jun18/2024)

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Sri Lanka to exempt one house from imputed rent wealth tax: President

ECONOMYNEXT – Sri Lanka will exempt one house from a proposed wealth tax outlined in an International Monetary Fund program, President Ranil Wickremesinghe said.

About 90 percent of the people’s houses are likely to be exempt from the proposed tax, he said.

“[O]ne house will be exempt from this,” President Wickremesinghe told parliament Monday.

“It is going to have a very high threshold and I do not think the vast majority of the people in this country should even be worried about their house

“Don’t worry your house will be safe.”

The IMF program document however did not mention an exempt on one house, but did mention a threshold.

Taxing houses and thrift in general could have detrimental effects on people’s well-being housing stock and their willingness to remain in the country without migrating, critics say.

Related Sri Lanka to tax imaginary rents on houses under IMF deal

The mechanism of imputed rents was used because rates on houses was assigned to provincial councils and courts could strike it down.

Opposition legislator Harsha de Silva said the Samagi Jana Balwegaya welcomed President Wickremesinghe’s statement. (Colombo/June18/2024)

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