News

Sri Lanka to buy Russian coal; LCC will no longer pursue Indonesian order

Published

2 months ago

February 12, 2023

editor

Sri Lanka is to buy 720,000 metric tonnes of Russian coal from two companies–China’s Combasst Industries Development Ltd and Dubai’s Coral Energy DMCC–after an earlier agreement with an Indonesian supplier fell through.

Lanka Coal Company (LCC) will no longer pursue the order from Indonesia’s PT Arista Mitra Jaya. On Monday, the Power and Energy Ministry secured Cabinet permission to buy the stocks from the other two companies shortlisted along with Arista Mitra and Hans Australia Pty Ltd. Hans Australia was later ruled out on the basis of certain terms they required fulfilled.

LCC first placed its order with the lowest supplier Arista Mitra for US$ 240 per ton with 180-day credit. However, the Mandira Bank of Indonesia rejected the usance Letter of Credit (LC) opened by Lanka Coal Company without providing a reason, a Cabinet paper submitted on Monday by State Minister D. V. Chanaka, said.

Arista Mitra then sought to transfer the LC to a third party “where such a transfer is not possible within the context of the contract,” the Cabinet paper said. LCC would, on the Attorney General’s advice, terminate this contract.

The purchasing matter subsequently went to a ministerial sub-committee and the standing Cabinet-appointed procurement committee (SCAPC), after which Combasst Industries and Coral Energy were selected.

Combasst would sell the coal at US$ 230 per MT with 200-day credit, LCC Chairman Shehan Sumanasekara said.

Twenty percent of cargo value would be deposited by LCC in a non-resident rupee account and the balance to the same account, in equal portions. After the credit period, the rupees would be changed into dollars and remitted to the supplier. Combasst’s price was indexed to the Russian Coal Index (RCI).

Coral Energy was selling at a fixed price of US$ 240 per MT, Mr. Sumanasekara said. Under this agreement, there would be no payment until the cargo was discharged at Lakvijaya in Norochcholai, and disbursement would be according to usage (that is, “storage model”).

“This means that, today if the plant requires 5,000 MT despite having one to eight shipments unloaded, we will pay only for the desired quantity,” the Chairman said.

It was anticipated that the coal from Coral Energy would be used for the first time in early June this year.

“Even then, out of the total payment, 80 percent will be disbursed per usage on the same day and there will be a further 120 days of credit for the usage of the balance 20 percent. Both parties have provided the needed credit terms with two different mechanisms,” he said.

LCC had struggled to purchase fuel since its last competitive tender fell apart late last year. The latest companies were selected on the basis of unsolicited proposals after the Cabinet granted approval to this procurement method, alongside permission to make purchases through government-to-government agreements “considering urgent and exceptional circumstances.”

source – sundaytimes

News

Won’t allow any breach of law & order during my tenure – President

Published

28 mins ago

April 1, 2023

editor

President Ranil Wickremesinghe stated that during his presidency, no one will be allowed to breach the law and order of the country. He emphasized that he will prioritize doing what is right over doing what is popular, and that presenting popular ideas can lead to the destruction of the country.

President Ranil Wickremesinghe said this during his address to the Tri Forces & Police officers and other rankers at the Air Force Base, Anuradhapura, as the Commander in Chief of the armed forces.

President Ranil Wickremesinghe asserted that no one is entitled to engage in violent protests on the streets, but all political parties have the right to express their opinions or criticize him in a peaceful manner.

He emphasized the importance of doing the right thing, and mentioned that they presented the International Monetary Fund agreement to the parliament to assess whether the parliamentarians had the courage to make the right decisions for the betterment of the country.

The President referred to the International Monetary Fund agreement as an example and expressed his expectation for everyone’s assistance in making the IMF program successful. He also stated that if the country adopts a fresh approach and embarks on a new journey, it can achieve significant development within the next 25 years.

The President asserted that Sri Lanka will win the economic war, similar to the successful fight against terrorism, adding that measures would be taken to establish economic independence in the country.

The President acknowledged that the armed forces and police will continue to play a crucial role in achieving economic independence, and also assessed the actions of the armed forces and police in maintaining law and order during the previous year.

The President expressed gratitude towards the armed forces for fulfilling their responsibility, as without their efforts, Sri Lanka would have become an anarchic state. He also mentioned that the ongoing competition between world powers is affecting the Indian Ocean, and he intends to take action as the President to protect Sri Lanka from this influence.

The President emphasized that future military situations can be shaped by technology and knowledge, unlike in the past. He highlighted the need for the armed forces and police to be equipped with modern technology and knowledge to overcome future challenges. The President initiated the Defence 2030 program, aiming to strengthen the defence forces of Sri Lanka.

The President also announced that stringent laws will be introduced to combat the drug scourge, and no amnesty will be granted to drug offenders.

The President said that he had instructed the Minister of Law and Order Tiran Alles, and Justice Minister Wijayadasa Rajapaksha to take strict action against such offenders and to utilize the support of the armed forces in this effort.

Minister of State for Defence Premitha Bandara Tennakoon, Senior Adviser to the President on National Security and Chief of Staff to the President Mr Sagala Ratnayake, Secretary to the Ministry of Defence GeneralKamal Gunaratne (Rtd), Chief of Defence Staff General Shavendra Silva, Army Commander Lieutenant General Vikum Liyanage, Air Force Commander Air Marshal Sudarshan Pathirana, Navy Commander Vice Admiral Priyantha Perera, Inspector General of Police Mr. C.D. Wickramaratne and around 1200 other rankers of the Tri Forces and Police were present on this occasion.

News

39 Chinese nationals arrested over online financial fraud

Published

34 mins ago

April 1, 2023

editor

At least 39 Chinese nationals have been arrested by the Aluthgama police in connection with an online financial fraud.

Police said the suspects had defrauded millions of money over several months through the internet from the accounts of people in different countries.

The group had been staying in a tourist resort in the Kaluamodara area in Aluthgama and Police said they were arrested based on complaints received through several embassies.

While the arrested Chinese nationals were taken to the Alutgama police, several smartphones and cash in their possession were also taken into custody by police.

(dailymirror.lk)

News

2 students killed during big match vehicle parade

Published

42 mins ago

April 1, 2023

editor

Two students were killed and seven others injured after a cab toppled during the vehicle parade held in view of the big match between Uva Paranagama Maha Vidyalaya and Dharmadutha College this afternoon, Police said.

The injured were admitted to the Badulla Hospital.

The accident occurred when the vehicles paraded around the ground during the match.

Further investigations are underway