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Sri Lanka overpaid Indian fertiliser company in 2021: Audit report

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The previous government paid more than double the market price to import nano nitrogen liquid fertiliser from an Indian fertiliser company that was selected through an unsolicited proposal, and received only seven percent of the total order placement despite settling the amount in full, an audit report has revealed.

The National Audit Office report found that, during the 2021 Maha season, the Indian Farmers Fertilisers Corporative Limited (IFFCO) was selected to supply the fertiliser through its local agent United Farmers Trust (UFT) based on two unsolicited proposals it had submitted.

The company is yet to pay Rs 48 million as total outstanding for the failure to supply the agreed fertiliser consignment.

Due to Sri Lanka’s foreign currency shortage at that time, the Indian company proposed to supply fertiliser on a credit basis.

Even though agreements had been entered into on November 22, 2021 for the import of 4,250,000 bottles (2,125,000 litres) at USD12.45 a bottle containing 500ml of liquid fertiliser, only 306,454 bottles of fertiliser had been imported in four instances. The Government had to incur a cost of Rs711,863,096, the audit report said.

In his recommendations, Auditor General W P C Wickramaratne said that steps should be taken to recover the over payment of Rs49,846,406 for the first stock (100,224 bottles) either from the relevant company or the parties that had approved payments without proper evaluation due to “failure of responsible parties such as Ministry of Agriculture, Procurement Committee, and Technical Evaluation Committee in specifically identifying the substantial price payable for a bottle of liquid nano fertiliser.”

The urgent import of liquid fertiliser from India commenced in September in the wake of the previous government’s disastrous policy of organic farming by banning chemical fertilisers, pesticides and weedicides in the country in April 2021.

In the following month (May), thee then Cabinet of Ministers approved a proposal to import organic fertiliser from a Chinese company – Qingdao Seawin Biotech Group Co Ltd – which was turned away by Sri Lankan authorities when it reached the Colombo Port without a valid Quarantine Certificate.

The audit inquiry also noted that even though the price of a 500ml bottle of nano liquid fertiliser had been mentioned at INR240 – equivalent to USD3.185 – on the Indian manufacturing company’s website, they were imported to Sri Lanka at USD5 per bottle according to Cusdecs (Customs declaration).

“However, it was not confirmed during the audit that the importation could be carried out at the price indicated on the website. It had been revealed at a meeting held on November 10, 2021 that the price of a liquid fertiliser 500ml bottle was USD5.25 (FCA). Despite having such knowledge, 100,224 bottles of nano nitrogen liquid fertiliser had been purchased at USD12.45 each and 206,232 bottles had been purchased at USD10 each without making purchases at a low price,” the report indicated.

The audit inquiry also observed that the Agriculture Ministry had not taken steps to sign an agreement with the supplier at a price beneficial to the government, and the supplier, his agent and the manufacturer had gained a profit exceeding a fair profit margin.

Ahead of the import, no experiment had been carried out in a laboratory or model farm before the release of this fertiliser to cultivation lands. Fertiliser had been imported without proper evaluation of the requirement of nano liquid fertiliser, the inquiry observed.

The inquiry noted that the fertiliser was given under different names to farmers without ascertaining the contents, which was questionable, and that proper attention had not been paid to the qualifications of the relevant supplier.

(sundaytimes.lk)

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Sathosa to sell rice at Rs. 220 per kilo

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Trade, Commerce, Food Security and Co-operative Development Minister Wasantha Samarasinghe told Parliament yesterday that action will be taken to sell 200,000 kilograms of rice daily to the public through the ‘Lanka Sathosa’, at a controlled price of Rs.220 per kilo to the public from today.

The Minister also said that steps will be taken to provide a coconut to the people in the suburban areas through Lanka Sathosa at a price of Rs.130 a nut within the next two weeks. He said this while participating in the debate on the government’s policy statement presented by President Anura Kumara Dissanayake recently.

The Minister also said that rice mill owners have agreed to release 200,000 kilos of rice per day to be sold through Lanka Sathosa at a price of Rs.220 per kilo.

The Minister also said that considering the current demand for rice in the local market and the damage caused to paddy cultivation due to heavy rains, the rice import restrictions have been lifted until midnight on December 20. The Minister also stated that the Government has taken steps to provide solutions to this problem by making rice available in the market as a solution to the rice shortage that has arisen in the market. Steps have been taken to solve the coconut shortage in the market in the next two to three weeks and to prevent consumers from exploiting. For this, 1 million coconuts will be released to the market.

In the past, various individuals and institutions have intervened to create shortages of goods in the country. We are trying to resolve this problem through discussions with those individuals and organisations. Otherwise, we will take specific measures as a government to prevent the people from being inconvenienced and exploiting,” he said.

(dailynews.lk)

(This story, originally published by dailynews.lk has not been edited by SLM staff)

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DSI obtains enjoining order against infringement of ‘Fun Souls’ brand

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Action was filed in the Commercial High Court of Colombo by DSI through their Attorneys Sudath Perera Associates against the entity Lakpa Footwear Ltd., with its headquarters based in Horana. The action was filed for the infringement of DSI’s ‘Fun Souls’ trademark and brand and the shoe design on the basis of trademark infringement, unfair competition, and passing-off.

D. Samson & Sons Ltd., widely known as DSI, is a leading homegrown brand and manufacturer of footwear, apparel, and bicycle tyres across the country and has established a strong reputation for quality products in Sri Lanka since its inception. In 2016, DSI introduced and developed the brand ‘Fun Souls’ with a youth identity, to offer a range of unique shoes and bags, including infant shoes, toddler shoes, boys’ and girls’ footwear, and accessories. This ‘Fun Souls’ shoe design was an original concept presented by the DSI brand family.

On 1 November, Commercial High Court Judge Jagath A. Kahandagamage issued an enjoining order against the Defendant for engaging in the sale of kids’ footwear with a brand name/design identical or confusingly similar to the ‘Fun Souls’ trademark and the shoe design.

The Plaintiff, DSI, pleaded that the Defendant has copied the mark ‘Fun Souls’ and the design of the shoe belonging to the Plaintiff in a similar manner with the deliberate intention of passing off its products as those of the Plaintiff.

The Plaintiff further pleaded that the slight, insignificant changes in the impugned mark and the design used by the Defendant are unnoticeable to the average consumer and deliberately adopted with the mala fide intention of the Defendant to usurp the goodwill and reputation of the Plaintiff’s ‘Fun Souls’ trademark and the shoe design.

The Commercial High Court, after hearing the submissions of the Lead Counsel for the Plaintiff, issued an enjoining order as requested by the Plaintiff. The order restrains the Defendant from continuing to use or carrying out business using its infringing shoe design, under the name, sign, or mark ‘Fun Shoe,’ which is misleadingly similar to the Plaintiff’s trademark ‘Fun Souls’ and its associated shoe design.

It also prohibits the Defendant from using any other variation of the name, sign, mark, or shoe design that is confusingly similar to the Plaintiff’s trademark or trade name, and from adopting any trade name or trademark that could cause confusion with the Plaintiff’s trademark or trade name.

(ft.lk)

(This story, originally published by ft.lk1st has not been edited by SLM staff)

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Horana Sri Palee gazetted as Mass Media Faculty of Colombo Uni.

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The Horana Sri Palee Campus has been gazetted as the Faculty of Mass Media of the Colombo University.

According to the gazette extraordinary issued by Prime Minister Dr.Harini Amarasuriya, the faculty’s departments are gazetted as Department of Mass Media Studies, Department of Language Studies, Department of Computer Studies and Department of Performing Arts Studies.

Established in 1996 as the West Board of the Colombo University in Horana, it conducted undergraduate and postgraduate courses in media and performing arts studies. Later the name was changed to Sri Palee Mandapa of Colombo University under the University Act in 1988 and until now it has been functioning under a Campus President. Teaching was done in the Departments of Mass Media, Performing Arts, Computer and Language Studies and after being declared as the Faculty of Mass Media, these departments were gazetted as Departments.

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