<ul><li>Oil prices see biggest single-day jump in 2 years</li><li>CPC assures steady supplies</li><li>Impact on local prices in 1-2 months</li><li>Stocks secure for up to 45 days</li></ul> The Ceylon Petroleum Corporation (CPC) yesterday (14) ruled out any immediate impact of rising global fuel prices on local fuel prices.Oil prices had surged sharply on Friday (13) following escalating tensions between Israel and Iran, marking the largest single-day increase in over two years.&nbsp;US crude oil (WTI) jumped 7.26%, settling at $ 72.98 per barrel, while Brent crude rose 7% to $ 74.23 per barrel.However, speaking to The Sunday Morning, CPC Managing Director Dr. Mayura Neththikumarage said that at present there had been no delays, no diversions of any ships, and no messages informing them of any such developments.&nbsp;“We continue to remain highly vigilant, but as of now there are no issues,” he said. “However, we are staying alert and closely monitoring how the situation might affect us in the future.”Dr. Neththikumarage added: “We do not face any direct impact because we are not purchasing anything from Iran or that region, so essentially, there is no direct effect on us. The only possible consequence would be if Iranian supplies get disrupted, in which case the demand for the supplies we are currently receiving might increase. That is the only concern for us at the moment.”He further clarified that Sri Lanka sourced products from the Gulf region but not from Iran or Iraq.&nbsp;“We have no dealings with those countries, so there is no direct impact on our operations. The issue is not that demand for our products will increase, but rather that the countries currently supplying oil and gas to other nations might face challenges. If that happens, they will need to secure their supplies from elsewhere, which could indirectly increase demand on the sources we use.”“Primarily, we purchase through traders. These traders have the flexibility to buy from multiple locations. We only get information about the source when the loading takes place. We are not buying directly from any country or from government entities,” he said.“Since we buy through traders, they have various supply options – places like Singapore, Brunei, and the Arabian Gulf – which makes our supply chain more secure. Thanks to this, we are not tied to any single country for our product sourcing,” the CPC Managing Director added.He noted that because of this flexibility, there should be no disruption in supplies. The only possibility is an increase in product prices. However, this potential price increase is unrelated to shipping or trade charges, as those have already been factored in up to December. The concern lies solely with possible increases in international product prices.“Even if prices rise globally, it won’t have an immediate effect on us. If international product prices increase, we might start feeling the impact in about one to two months, not right away,” he explained.Regarding the country’s current stock situation, Dr. Neththikumarage said: “We normally maintain about 20-30 days of finished product inventory, depending on the product type. In some cases, we even have up to 45 days of stock. Additionally, we have crude oil stocks, which can be refined into finished products as needed, giving us extra security.”“We have enough finished product and crude stock in hand and with our multiple sourcing options through traders, we do not foresee any immediate disruption to our supply,” he concluded.Earlier in the day, both benchmarks had soared by as much as 14% and 13%, respectively – the biggest single-day percentage gains for both oil contracts since March 2022, shortly after Russia’s full-scale invasion of Ukraine. On a weekly basis, it also marked the strongest gains for crude prices since October 2022.The surge reflected immediate concerns about energy supply disruptions and growing fears that this geopolitical conflict could be more prolonged than previous episodes between Israel and Iran.&nbsp;Market analysts noted that if Iranian oil were to be removed from the market, prices could climb an additional $ 7.50 per barrel. More critically, any threat to exports passing through the Strait of Hormuz – the world’s most vital oil chokepoint – could push prices as high as $ 100 per barrel.Despite the sharp rally, the Organization of the Petroleum Exporting Countries (OPEC) pushed back against calls for an emergency release of oil stockpiles, stating that there were no current market dynamics justifying such action.Analysts also warned that rising oil prices could reignite inflationary pressures globally, complicating central banks’ interest rate decisions.&nbsp;Overall, the escalation has injected a significant risk premium into the oil market, with expectations of further volatility in the days ahead.

Iran-Israel tensions: Global fuel prices surge, no immediate impact on SL

<ul><li>Focus on reviewing regulations on plastic pellets began following X-Press Pearl disaster</li><li>IMO recommendations on best practices about plastic pellets adopted by MEPC 83 in April</li></ul> A new set of guidelines developed by the International Maritime Organization (IMO) about the safe packaging and carriage of consignments of plastic pellets has been adopted by the European Union (EU) as a mandatory practice for shipping within the regional organisation, IMO Secretary-General Arsenio Dominguez told The Sunday Morning last week.According to Dominguez, the IMO had begun developing the new set of guidelines following the Singapore-flagged MV X-Press Pearl shipwreck disaster in May 2021, which caught ablaze and sank in the Colombo anchorage, spilling hundreds of tonnes of plastic pellets (nurdles) and toxic chemicals into the coastal waters of Sri Lanka.&nbsp;The disaster, the largest of its kind in Sri Lankan history, has been called the worst marine environmental disaster in Sri Lanka by some experts, and its impact on the marine and coastal ecosystem remains an ongoing assessment.Addressing a press conference at the third United Nations Ocean Conference (UNOC3) held in Nice, France, the IMO Secretary-General, responding to a question by The Sunday Morning about what could be done to improve safety in transport of plastics in the aftermath of the MV X-Press Pearl incident, stated: “We already have the MARPOL convention about the prevention of disposal of plastics at sea. When it comes to that specific example, we already have traffic separation systems in place to ensure the safe navigation of ships.“One of your recent incidents was related to plastic pellets and we have already developed a new set of guidelines on the packaging and the management of plastic cargo and their clean-up. As soon as we issued the new regulations, they were adopted by the EU, which is turning them into mandatory regulations. In parallel, we are working to introduce mandatory regulations on plastic pellet transport.”Dominguez added that the MV X-Press Pearl incident was what had initiated their review into existing legislation, adding that the IMO was now studying the available legal instruments to make the recommendations mandatory.Accordingly, in March 2024, the Marine Environment Protection Committee (MEPC) approved MEPC.1 Circular 909 – ‘Recommendations for the carriage of plastic pellets by sea in freight containers’ – which includes how plastic pellets should be packed and the quality of the packaging, which should be strong enough to withstand the shocks and loadings normally encountered during transport.&nbsp;It governs how the packaging should be constructed and closed to prevent any loss of contents and how transport information should clearly identify those freight containers containing plastic pellets. The shipper should supplement the cargo information with a special stowage request for proper stowage.&nbsp;It also includes recommendations on how freight containers containing plastic pellets should be properly stowed and secured to minimise hazards to the marine environment without impairing the safety of the ship and persons on board. Specifically, they should be stowed under deck wherever reasonably practicable, or inboard in sheltered areas of exposed decks.Further, IMO Member States, meeting at MEPC 82 in October 2024, approved the guidelines on good practice relating to the clean-up of plastic pellets from ship-source releases. These guidelines provide practical guidance for government authorities on issues such as contingency planning, response, post-spill monitoring and analysis, and intervention and cost recovery.The MV X-Press Pearl, a 185-metre-long Singaporean-flagged container vessel, was en route from Hazira Port in India on 15 May 2021 to Colombo with 1,486 containers on board, including 25 tonnes of nitric acid, a large volume of plastic nurdles, and several other chemicals, when it issued a distress call while in anchorage 9.5 nautical miles northwest of the Colombo Harbour.&nbsp;The ill-fated vessel sank by the stern in the anchorage following a multinational effort to douse the blaze and get it under control.

MV X-Press Pearl disaster: New IMO guideline on plastic pellets transport

<ul><li>Launch set in 18 months</li></ul> The Ministry of Digital Economy is due to call for tenders by the end of this month or in July for procurement related to the development and implementation of the Sri Lanka Unique Digital Identity (SLUDI) platform, with the launch expected 18 months later, Deputy Minister of Digital Economy Eranga Weeraratne confirmed.Speaking to The Sunday Morning, Weeraratne said that the project was currently in the procurement phase and that a Request for Proposal (RFP) had already been issued as part of the tendering process.“There is no contract signed with any company at this point. The process is open,” he said.&nbsp;The delay, he explained, was because the RFP process was still being sorted out.The SLUDI initiative, which seeks to create a digitally verifiable identity for every Sri Lankan citizen, is a cornerstone of the Government’s broader digital governance strategy.&nbsp;According to officials, the platform will integrate biometric data and demographic details, enabling a range of services, from public administration to digital banking, to be securely accessed via a unified digital identity.Weeraratne further clarified that the SLUDI platform and the Electronic National Identity Card (e-NIC) project were being pursued as complementary initiatives.“They are two separate projects, but they will work hand in hand. SLUDI is expected to be launched first, while e-NIC will follow. The reason for this is because they are both part of the same ecosystem, and for e-NIC to work, the digital ID should be activated,” he said, noting that while both projects were moving forward in parallel, SLUDI was currently leading the implementation timeline.The SLUDI platform, once implemented, is expected to be interoperable with a wide range of public and private sector systems, potentially revolutionising citizen access to services.&nbsp;A key feature will be its use of biometric authentication, aimed at enhancing security, reducing identity fraud, and streamlining service delivery.Weeraratne claimed that the full implementation of the SLUDI project would require about 18 months. “The e-NIC project will be launched soon after the SLUDI project is launched. We are trying to have them both be launched around the same time,” he stated.Previously, the SLUDI project drew attention after reports claimed that an agreement had been signed with an Indian firm to develop the system. However, Weeraratne categorically denied such reports, confirming that no company had been awarded a contract yet and that the process remained open and competitive.&nbsp;The SLUDI project has been developed with technical guidance and consultation from the Information and Communication Technology Agency (ICTA), with a framework designed to adhere to international standards of digital identification, including privacy and data protection principles.The Deputy Minister added that more concrete dates for implementation would be determined following the tender process.The launch of the SLUDI platform is also expected to dovetail with the Government’s broader digitalisation roadmap, which includes reforms in e-governance, cybersecurity, and digital infrastructure aimed at modernising the Sri Lankan economy, and improving transparency and efficiency in public service delivery.

Tenders to be called for Unique Digital ID

The Government remains confident that Sri Lanka will meet its ambitious target of becoming mine-free by 2028, despite concerns arising from a recent pause in US assistance for demining operations earlier this year.According to the Ministry of Urban Development, Construction, and Housing, ongoing diplomatic negotiations have helped to ensure that pledged US support will continue, albeit with possible adjustments to funding mechanisms.Speaking to The Sunday Morning, the ministry’s Additional Secretary (Projects) M.M. Nayeemudeen stated that while US funding for demining efforts had temporarily stalled in January, constructive discussions with US representatives had helped to allay fears of a long-term suspension.“We have written to the US Embassy through the Ministry of Foreign Affairs. They have assured us that funding will not stop,” Nayeemudeen confirmed.&nbsp;“The US Embassy will continue to support Sri Lanka’s demining programme through four organisations – HALO Trust, Mines Advisory Group (MAG), Skavita Humanitarian Assistance and Relief Project (SHARP), and Delvon Assistance for Social Harmony (DASH).”The US has long been one of the largest bilateral donors to Sri Lanka’s humanitarian demining efforts, particularly in the Northern and Eastern Provinces which were heavily contaminated with landmines and unexploded ordnance (UXOs) during the nearly three-decade-long civil conflict. Thousands of families in former conflict zones depend on the clearance of these lands to rebuild their lives and livelihoods.However, earlier this year, US support was temporarily suspended due to reported administrative and funding cycle realignments in Washington. The halt came at a critical time when Sri Lanka was aiming to accelerate clearance operations in order to meet its declared 2028 deadline for becoming landmine-free.In response, Sri Lankan authorities engaged in a series of consultations with the US Embassy and other donor countries.&nbsp;“We held several discussions and workshops with the participation of US Embassy officials. A donor appreciation meeting was also held on 2 May with the participation of the Prime Minister. These emerged positively,” Nayeemudeen said, referring to high-level efforts to reassure partners and sustain funding flows.According to him, while the core funding commitments remain intact, there may be revisions to how the disbursements are structured going forward. “Whatever the funding that was promised will be issued by the US Government. However, there might be changes to the funding arrangements and how these funds will be disbursed,” he explained.Beyond the US, Sri Lanka’s demining operations are currently supported by 11 international donors and Nayeemudeen expressed optimism about expanding this base.&nbsp;“There is potential for further funding from these countries also. The donor appreciation meeting went smoothly and we are hopeful of continued engagement,” Nayeemudeen noted.&nbsp;He also expressed optimism that the goal remained within reach. “As of now, we have managed to resolve the issue through negotiations and we still hope that we will be able to reach our target of being mine-free by 2028,” he affirmed.

SL confident of meeting 2028 mine-free target

The 2024 report of the National Audit Office (NAO), titled ‘Special Audit on the Management/Administration of Various Funds in Sri Lanka Customs,’ reveals that billions of rupees designated for the State have instead been disbursed as ‘rewards’ and overtime payments without proper ministerial oversight, alongside significant losses in Government revenue.One of the most alarming findings in the report highlights the payment of a staggering Rs. 24,225,600,376 in reward money to Customs officials and informants between 2012 and August 2023.This sum had been disbursed based solely on an internal departmental order, entirely bypassing the mandatory approval of the minister of finance, a requirement stipulated by Section 153(2)(b) of the Customs Ordinance No.17 of 1869.The audit has noted that payments without ministerial approval had occurred since 1988, disregarding legal provisions.&nbsp;Internal orders have allowed rewards for officers not directly involved in investigations, including for routine duties, providing additional benefits beyond salaries and overtime.The audit has also identified substantial State revenue losses from penalty mitigation.&nbsp;In 17 cases between 2017 and 2023, initial penalties stood at Rs. 7,611,652,834 but have been reduced to Rs. 481,694,078. The value of 30% credited to the Government from the mitigated penalty value stood at Rs. 144,508,224, resulting in a direct loss of Rs. 181,512,488 compared to the attempted evaded tax of Rs. 326,020,712.&nbsp;Only 30% of net revenue from detected offences (Rs. 14,535,360,226 from 2012 to August 2023) had been credited to the Consolidated Fund, less than potential recovery.Additionally, the NAO report also notes that Sri Lanka Customs has allegedly violated attendance circulars by using manual registers instead of fingerprint machines, undermining accountability.&nbsp;Meanwhile, 90% of the Overtime Fund had been paid to officials regardless of extra hours worked, with only 10% credited to Government revenue.&nbsp;Overtime payments in 2021 and 2022 totalled Rs. 948,323,405 and Rs. 938,872,620, respectively, while Government revenue from this fund had been Rs. 85,739,457 and Rs. 83,667,789, respectively. The accuracy of these payments is unconfirmed due to the lack of precise duty hour records.The NAO report has concluded with a series of critical recommendations aimed at restoring financial integrity and transparency within the Sri Lanka Customs.&nbsp;These include strengthening existing legal provisions governing Customs funds, conducting a proper study to redefine what duties qualify for reward money, amending rules related to fund administration, and crucially, increasing the percentages of revenue credited to the Consolidated Fund from various Customs funds.The report also calls for tighter controls on penalty mitigation, the abolition of redundant sub-funds, and the immediate regularisation of attendance and overtime payment systems.&nbsp;The audit’s findings have underscored an urgent need for comprehensive reforms to ensure the efficient collection and rightful utilisation of public revenue, signalling potential widespread public concern and demands for decisive Government action.When The Sunday Morning contacted Customs Media Spokesperson Seevali Arukgoda and Director General of Customs P.B.S.C. Nonis for comment, both requested additional time to study the findings of the report prior to commenting.&nbsp;Deputy Minister of Finance and Planning Dr. Harshana Suriyapperuma did not answer phone calls made seeking his views while Deputy Minister of Economic Development Prof. Anil Jayantha Fernando could not be reached on account of being overseas.

Customs rewards: Questions over billions in questionable payments

Following the release of the islandwide animal census results, the Ministry of Agriculture is currently conducting discussions on necessary action to address the growing issue of crop damage and agricultural disruption caused by wild animals.The report on the national animal census was officially released on Thursday (12).In a press release, Hector Kobbekaduwa Agrarian Research and Training Institute (HARTI) Director Professor A.L. Sandika revealed the results of the survey: toque macaques (rilawa) – 5.17 million, grey langurs (wandura) – 1.74 million, giant squirrels (dandu lena) – 2.66 million, and peacocks – 4.24 million.He expressed that a large concentration of monkeys was situated in religious grounds or districts such as Anuradhapura, which reported a total of 160,135.&nbsp;The highest population of grey langurs was recorded in the Kandy District with a count of 634,668.Meanwhile, giant squirrels and peacocks were illustrated to have a high distribution in areas such as Kurunegala and Monaragala, with Kurunegala recording 546,715 giant squirrels and 621,517 peacocks.When contacted by The Sunday Morning, Deputy Minister of Agriculture and Livestock Namal Karunaratne emphasised that the updated figures allowed authorities to design more effective strategies in the face of damage caused by various species of wild animals.“This survey plays a vital role as, up until now, there has been no such quantifiable data as to the number of such wildlife, nor has there been any research on this topic in Sri Lanka. Now, any Government branch, ministry, university, or institution has access to this data,” he said.Karunaratne further noted that the data from the survey had revealed a high population of the reported species with regard to their surrounding habitat.According to the report, the total number of the species surveyed across the country exceeds 13 million.The animal census was conducted on 15 March as a public-driven initiative aimed at identifying and assessing the prevalence of wild animals within residential and agricultural areas during the daytime.

Animal census: Ministry moves to address crop damage

Discussions on the proposed Trincomalee energy hub between India, the United Arab Emirates (UAE), and Sri Lanka have been delayed, it is learnt.&nbsp;Initially scheduled to begin in June, the discussions are now planned to take place in July.Speaking to The Sunday Morning yesterday (14), Ministry of Energy Secretary Prof. Udayanga Hemapala said that the discussions had been delayed as the UAE party could not make it on the scheduled days due to circumstances which had risen on their end.“We are planning to do it by July, but the dates have not been fixed yet,” he added.He added that the discussions and conditions would be finalised within a period of six months.The energy hub is to consist of a multi-product pipeline and bunkering facilities.The Memoranda of Understanding (MOU) to develop Trincomalee as an energy hub were exchanged between Prof. Hemapala, Indian Foreign Secretary Vikram Misri, and UAE Ambassador to Sri Lanka Khaled Nasser Al Ameri during Indian Prime Minister Narendra Modi’s official visit to the island in April.It is reported that the project is to consist of a multi-product pipeline as well as bunkering facilities and, potentially, a refinery.

Trincomalee energy hub: Tripartite discussions delayed

<ul><li>Does not always reflect accurate ground reality: Dr. Wijemuni</li></ul> Deputy Minister of Health and Mass Media Dr. Hansaka Wijemuni yesterday (14) denied reports of a shortage in key medications for conditions such as hypertension and diabetes.Acknowledging long-standing issues within the pharmaceutical supply chain, he stressed that the ministry had already initiated corrective measures.“This is not a recent development; it is a situation that has persisted for years. We have investigated the shortcomings and taken necessary actions to address them,” he said.Dr. Wijemuni said that the Government had also implemented steps to prevent medicine shortages from affecting patients, with a complete resolution of supply issues projected by 2026.He also highlighted limitations in the ‘Swastha’ system, which is currently used to track pharmaceutical stocks in hospitals, noting that it did not always reflect the accurate, on-ground availability of medications.“If certain medicines appear to be in short supply, hospitals have been authorised to independently procure what is needed. The absence of 180 medications in central storage does not mean patients will go without treatment,” he clarified.To further address concerns, the Deputy Minister announced that a shipment of medications, sufficient for 10 months, was expected to arrive in the country within the coming weeks.&nbsp;This delivery is expected to ease shortages, particularly in post-cancer treatment medications. Additionally, an alternative strategy for managing these shortages is scheduled to be introduced next week.Dr. Wijemuni urged media outlets and relevant organisations to handle information about the country’s pharmaceutical supplies responsibly, cautioning against unnecessarily alarming the public.“The necessary steps are being taken to ensure the continued supply of essential medicines in Sri Lanka,” he reassured.Nevertheless, Government Medical Officers’ Association (GMOA) Spokesperson Dr. Chamil Wijesinghe on Friday raised the alarm over severe medicine shortages in Sri Lanka, reporting that as of May, nearly 180 essential medicines were missing from central storage, with around 50 more lacking in hospitals.&nbsp;The shortages include painkillers, antibiotics, and medications for chronic conditions such as hypertension, diabetes, kidney ailments, and cancer.Dr. Wijesinghe criticised the Ministry of Health for failing to resolve these persistent issues, noting the Health Minister had previously admitted that procurement delays in 2024 were to blame.&nbsp;He questioned why the problem had not been detected sooner and warned that the situation could force emergency procurements, increasing the risk of public fund misuse.

Essential medicine: Ministry notes limitations in ‘Swastha’ system

Two days after the Air India disaster in Ahmedabad, an audio has emerged revealing the pilots’ final message to the Air Traffic Control (ATC) moments before the flight crashed into the medical college building. Senior pilot Captain Sumit Sabharwal sent a distress call to the Ahmedabad ATC right after the plane took off. In the five-second audio, the pilot can be heard saying: “MAYDAY… MAYDAY… MAYDAY… NO POWER… NO THRUST… GOING DOWN…” Air India Flight AI171 took off from Ahmedabad airport at around 1:30 pm IST on June 12, heading to London Gatwick with 242 people on board: 230 passengers, 10 cabin crew members, and 2 pilots. Only one passenger, a British national of Indian origin, survived the crash. Among those who died was former Gujarat Chief Minister Vijay Rupani, who was on the flight. The plane quickly lost altitude and crashed into a hostel building, killing several medical students and local residents. Thick black smoke rose from the crash site, and a large-scale rescue operation was immediately launched. Investigators found one of the black boxes on Thursday night. They are still searching for the second black box and the digital video recorder (DVR), which could provide key information about what caused the crash. Central agencies, including the National Investigation Agency (NIA), have visited the site. The Ministry of Civil Aviation set up a high-level, multi-disciplinary panel to investigate the crash’s cause. This panel will look into the events leading up to the crash and review the current Standard Operating Procedures (SOPs) and safety guidelines. Source: Firstpost

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