The Hon. Dayasiri Jayasekara, Attorney-at-Law

¶ 01 Hon. Presiding Member, thank you for the opportunity to speak about the Ministry of Energy. I will begin with the issue between the distributors and the Ceylon Petroleum Corporation (CPC).

¶ 02 This is not new. In 2010 a proposal came to pay 2.5% of the selling price per litre to dealers. In 2015–2016 it was increased by 0.5%, moving to 3% of the selling price. In 2016, “upper cap” and “lower cap” thresholds were discussed. When diesel was Rs. 121 per litre, 3% was paid; similarly, for petrol up to Rs. 162 per litre, 3% was paid. In practice, diesel often sold around Rs. 1000 per litre and petrol around Rs. 1308–1358. The Board took decisions, but they were not implemented—this failure to execute is the core cause of today’s problem. Though a circular was instructed in 2016, the responsible legal officer (still in position) did not implement the process properly.

¶ 03 Then in 2022, petrol and diesel prices were sharply raised. Attempts to implement the 2016 decision led to dealers obtaining an interim injunction from the District Court. We know diesel lines ran into the hundreds and petrol to the hundreds as well. After about seven months, that injunction was lifted. When the Corporation tried to revert to the old method, the dealers went to the Western Provincial Civil Appellate High Court and obtained another stay. As Hon. Bimal Rathnayake noted, there is an ongoing court case. The dealers also went to the Supreme Court; even though the interim order was dissolved, the case continues. In August 2023, a decision was given to increase the margins.

¶ 04 Despite all this, the Government now speaks as if none of it happened. The President’s first appointment was the CPC Chairman, who met the dealers and said he would resolve it by Monday 10.30 a.m.—but due to the general election, it was not done. If it had been implemented then, the Government would have faced a massive crisis with shortages like in recent days. So they held off and are now trying to enforce the new circular.

¶ 05 After the election, the CPC developed a formula: if you sell 15 loads, after costs there is a profit of Rs. 62,330; for 16–30 loads, a profit of Rs. 130,000. They discussed it with dealers; when dealers objected, they proceeded to implement the circular unilaterally. The Appellate High Court did not reject the matter but told both parties—the CPC and the dealers—to discuss and reach a decision. Instead, the CPC is proceeding alone.

¶ 06 We raised this not to create petrol queues or engineer conspiracies; we do not wish to bring back the era of people walking with cans. But the Government panicked, looking to blame someone. If someone sabotaged, find them. The Opposition has a right to raise a voice for those affected. We spoke using board papers and numbers: how much petrol and diesel were short. Yet the Power and Energy Minister was not allowed to answer here; instead others—Hon. Bimal Rathnayake, the Deputy Minister of Finance and Procurement, and the Minister of Urban Development, Construction and Housing—spoke. The subject Minister sat silent. That is unfortunate.

¶ 07 In 2015, unions (Sri Lanka Nidahas Sevaka Sangamaya leaders and others) struck for salary increases and told dealers not to distribute fuel. That Government had just come in. It was not us who engineered regime change; it was those trade unions. Many who did wrong then are now chairmen and managing directors of institutions today; some who fled abroad after premium frauds and SAP data exposures now hold office again, while sending pleas from overseas. We shouted “thieves” then; today those same persons are in positions under this Government.

¶ 08 At that time, CPC Chairman Sumith Wijesinghe took a Rs. 100,000 allowance pursuant to a circular during Gotabaya Rajapaksa’s time. Buddhika Madihewa did not draw a salary, only Board fees. Now Mr. Rajakaruna takes both basic salary and allowances—hundreds of thousands. I tabled this last week. You keep saying your people do not take money. But circulars are being violated—please correct this first.

¶ 09 What is the plan now? There are 1,400 fuel dealers; CPC has 236, and Lanka IOC about 100. The Government’s move is to annihilate these dealers and hand operations entirely to the private sector. We say do not rush into conflict; think carefully. We are not trying to incite strikes or queues. Understand the issue; do not act blindly.

¶ 10 On renewables: you now speak of adding another 2,000 MW. There are 75 renewable projects; 74 were approved in January–February. Approval requires clearances from about 14 agencies. Why are these 75 projects not being approved now? The Secretary has called back files to “re-examine.” Send them back and process them. Is this on your instruction or some higher authority’s? We all know how certain big names influence things. Our concern is not simply the lowest unit cost like USD 4.65 cents per kWh, but why award tenders despite major deviations. If there is a major deviation, why was it awarded? Do not justify only on lowest price while ignoring deviations. If so, why have procurement committees at all? Conduct these properly.

¶ 11 This Government collects about Rs. 120 per litre in taxes on petrol and Rs. 90 on diesel. You said those taxes were unfair and would be reduced and that fuel would be lowered by Rs. 50 per litre. Please do as promised.

¶ 12 Thank you for the time.