01

සි   |     |  

2024-06-20

News Categories : Committee News 

COPE probe into irregularities of the Ceylon Petroleum Corporation

  • Dishonesty withing the Corporation cause a loss of Rs. 3,416 million – COPE insists on holding the corporation's officials accountable
  • Committee's displeasure that public has to bear an additional cost of fuel due to excessive commission paid to distributors – Officials responsible not in the country

 

It was disclosed at the Committee on Public Enterprises that due to dishonesty existing within the Corporation and the deliberate delay of 08 years and 08 months in issuing the relevant circular to the filling station owners by the marketing department of the Corporation, the Corporation has incurred a loss of Rs. 3,416 million for the period 2014-2022. In such context, COPE was of the view that the marketing department should assume responsibility for committing a large-scale fraud to the Corporation.

This matter was taken up for discussion recently (Jun. 19) when the Committee on Public Enterprises met under the Chairmanship of Hon. Rohitha Abeygunawardena, Member of Parliament, to examine the Auditor General's report for the year 2022 and the current status of the Ceylon Petroleum Corporation.

The Committee expressed its strong displeasure whilst insisting on holding the corporation's officials accountable. Furthermore, COPE reiterating to the high officials present that the internal officials of the Corporation are clearly responsible for such acts of fraud, inquired as to what actions the Corporation has taken in this regard thus far.

Furthermore, COPE directed the CAO/AO a report be submitted to the Committee within 7 working days containing the list of names of those affiliated to committing the fraud and the measures the Corporation has taken to hold such officials accountable for their wrong doings.

Furthermore, it was disclosed that the public had to bear an additional cost for fuel due to the payment of Rs. 31,021.07 million as extra commission to the distributors.

Due to the overpayment made by the officials, COPE disclosed that the customer has to pay Rs. 5.85 for a liter of 92 petrol, Rs. 7.50 for a liter of 95 petrol, Rs. 5.88 for LED and Rs. 6.96 for LSD in excess as of the calculations to date (19).

The Committee also inquired regarding the commission which was paid in excess for the year 2022 which has been accounted as a sales expenditure when it should have been entered as a receivable. Accordingly, the Committee further inquired about the officials responsible for the recovery of these overpayments and the action taken in this regard.

It was also disclosed at COPE that the officials responsible for the said is no longer in the country.

The Committee on Public Enterprises directed the CAO/AO to submit a comprehensive report within two weeks containing the list of names of those affiliated to committing such financial fraud and to make a complaint to the CID for investigations in parallel with the internal investigations.

State Ministers Hon. Indika Anuruddha and Hon. Shantha Bandara, Members of Parliament Hon. Mahindananda Aluthgamage, Hon. Dayasiri Jayasekara, Hon. U. K. Sumith Udukumbura, Hon. (Major) Sudarshana Denipitiya, Hon. Upul Mahendra Rajapaksha, Hon. M. Rameshwaran, and Hon. Madhura Withanage were present at this Committee meeting held.

 

12

3



Related News

2026-03-06

Third District Consultation on Improving Services for Persons with Disabilities Successfully Held in Batticaloa District

The Third District Consultation aimed at strengthening inclusive service delivery for persons with disabilities was recently (Feb. 27) held in Batticaloa District. The event was organized by the Parliamentary Caucus for Persons with Disabilities of the Tenth Parliament and convened at the Batticaloa Municipal Council Hall . The consultation was held under the patronage of the Chair of the Caucus, Hon. Member of Parliament Sugath Wasantha de Silva and Batticaloa District Secretary J.S. Arulraj. The event was attended by the Deputy Co-Chairman, Hon. Member of Parliament (Dr.) Pathmanathan Sathyalingam, as well as Members of Parliament representing the Batticaloa District Shanakyan Rajaputhiran Rajamanickam, (Dr.) Ilayathambi Sirinath, Gnanamuthu Srinesan, and Kanthasamy Prabu. Senior government officials including Assistant District Secretary G. Praveen, District Social Service Officer Chandrakala Gnaneswaran, police officers, sectoral experts, and social development officers participated in the discussions. The representatives of the organizations of person with disabilities of Batticaloa districts were also participated in this event.  The urgency of the consultation was underscored by the statistics indicating that more than 9,000 persons with disabilities reside in Batticaloa District, supported by 14 active associations. District Secretary J. S. Arulraj highlighted critical service gaps, including the immediate need for 21 trained teachers across 23 special education units currently serving 183 students. He also raised concerns regarding the issuance of formal identification cards for persons with disabilities, difficulties in obtaining driving licences, and widespread accessibility barriers in public buildings.In his address, Hon. Sugath Wasantha de Silva emphasized that the consultation represented a unified, non-partisan effort to foster a compassionate and inclusive society. He stated that services for persons with disabilities must be delivered on the basis of humanity and equality. He further announced that the Caucus plans to engage with the Ministry of Education in March to address systemic barriers in qualifying examinations for government employment. He called upon government officials and political leaders to collaborate with dedication to resolve longstanding challenges faced by persons with disabilities.Deputy Co-Chairman (Dr.) Pathmanathan Sathyalingam stressed the importance of identifying and supporting persons with disabilities in Batticaloa who have not yet received assistance. He highlighted the need for coordinated action through relevant institutions to ensure adequate facilities and services, particularly for individuals affected by conflict and other causes of disability.Members of Parliament representing the district drew attention to persistent shortcomings in service delivery and the practical challenges faced by persons with disabilities in their daily lives. The participants from disability community raised several concerns, including extending deadlines for educational allowances; adapting competitive examinations for visually impaired candidates through Braille-based alternatives; providing priority access in hospitals to reduce waiting times; ensuring that reserved seating on public transportation is respected; and improving accessibility at local government offices, where meetings are often held on upper floors without ramps or elevators.While some matters were addressed immediately through directives issued to relevant officials, others were referred to district authorities and the Parliamentary Caucus for longer-term policy reform, reflecting a commitment to sustainable and systemic change.The Chair of the Caucus reaffirmed that the Union remains committed to conducting district-level visits nationwide to listen directly to the concerns of persons with disabilities and to proposing practical, policy-driven solutions to ensure inclusive governance across Sri Lanka.The event was organized collaboratively by the International Foundation for Electoral Systems (IFES), with funding support from the Government of Australia, in partnership with the Batticaloa District Secretariat.


2026-02-24

Committee on High Posts of Parliament Approves Nominations of Two Heads of Mission and a Ministry Secretary

The Committee on High Posts of Parliament has approved the nominations of two Heads of Mission and a Ministry Secretary.The approvals were granted when the Committee met in Parliament recently (Feb. 20) under the chairmanship of Prime Minister Dr. Harini Amarasuriya.Accordingly, the Committee approved the nomination of Mrs. Nirmala Indumathie Dias Paranavitana as Ambassador of Sri Lanka to the Federal Democratic Republic of Ethiopia and Permanent Representative of Sri Lanka to the African Union.The Committee also approved the nomination of Professor Mohamed Ibrahim Fazeeha Azmi as the new Ambassador of Sri Lanka to the Islamic Republic of Iran.In addition, approval was granted for the appointment of Mr. K.A. Vimalenthirarajah as the Secretary to the Ministry of Trade, Commerce, Food Security and Cooperative Development.


2026-02-24

Committee on Public Finance Instructs Officials to Establish Legal Framework for Rs. 200 Daily Attendance Allowance for Estate Workers

Committee reviews progress of disaster relief provided to the public affected by Cyclone DitwahAttention drawn to disaster management insuranceReview of the current progress of the Public Debt Management Office (PDMO) programmesThe Committee on Public Finance instructed officials to establish a legal framework for the Rs. 200 daily attendance allowance granted by the Government to estate workers.Clarifying matters at length, the Chairman of the Committee emphasized that the Committee has no objection to increasing the wages of estate workers. However, he stated that the legal basis of the mechanism used to make this payment must be discussed. It was pointed out that the payment is currently being made under a Memorandum of Understanding (MoU) entered into with private plantation companies, without being gazetted, and that such an arrangement could be terminated at any time. Officials further noted that the Rs. 200 allowance does not qualify for contributions to the Employees’ Provident Fund (EPF).Officials informed the Committee that the MoU has been entered into with private plantation companies for a period of three years, and that once this period ends, a policy decision would be required if the Government intends to continue the payments.The Committee Chair pointed out that it is inappropriate to utilize public funds to pay salaries in private institutions without proper financial discipline. Officials stated that the payment is being made as it has been approved by Parliament under the 2026 Budget.According to the approved budget estimates, the allocation for this payment is categorized as a “development subsidy.” As development subsidies are generally intended to support increased production, the Deputy Secretary to the Treasury (DST) suggested that the payment would be more appropriately termed a “production incentive.” However, it was observed that neither the payments already made for January nor the relevant MoUs specify such a requirement in practice. The Committee also questioned whether excluding the Rs. 200 daily allowance from Employees’ Provident Fund (EPF) and Employees’ Trust Fund (ETF) calculations is in compliance with the relevant laws. When asked whether the Attorney General’s advice had been sought regarding the MoUs and related matters, officials stated that such advice had not been obtained.Accordingly, the Committee emphasized that these problematic areas must be rectified and that a proper legal basis should be established for the payment.These matters were discussed when the Committee on Public Finance met in Parliament on 17.02.2026 under the chairmanship of Hon. Member of Parliament Dr. Harsha de Silva, with the participation of Hon. Deputy Ministers Chathuranga Abeysinghe and Nishantha Jayaweera and Hon. Members of Parliament Ravi Karunanayake, Ajith Alahakoon, M.K.M. Aslam, Attorney-at-Law Chitral Fernando, Wijesiri Basnayake, Sunil Rajapaksha, Nimal Palihena, Thilina Samarakoon and Champika Hettiarachchi.The Committee also discussed the progress of disaster relief provided to the public affected by Cyclone Ditwah. Officials stated that approximately Rs. 24.4 billion has so far been released under various relief measures announced for those affected. While the majority of allowances for house cleaning, purchase of household items, and assistance for schoolchildren have already been distributed, officials explained that delays in housing reconstruction and rental assistance payments have occurred due to processes such as damage assessments and land identification. Officials further clarified the verification procedures and accountability mechanisms in place. Committee members highlighted the difficulties faced by those expecting relief payments and stressed that housing assistance in particular should be expedited.Officials of the National Insurance Trust Fund (NITF) also explained their financial position and the reinsurance claims the Fund is required to settle following claims submitted by general insurance companies after Cyclone Ditwah. The estimated reinsurance claims payable by NITF currently amount to approximately Rs. 11 billion. Although NITF has not reinsured its risk exposure with an international reinsurer since 2023, officials stated that it has the capacity to settle the existing claims.It was revealed that the Treasury maintains a significant cash buffer to meet the Government’s daily expenditure requirements, with approximately Rs. 750 billion available by the end of 2025. Due to payments made in December, the cash buffer had declined to this level, leading to increased issuance of Treasury bills from late December to mid-January, which in turn raised interest costs during that period. However, the situation has now stabilized. It was also noted that as the return earned from investing the cash buffer is approximately 2–3 percent lower than the Government’s annual interest cost, maintaining such reserves entails an opportunity cost.Attention was also drawn to the progress of the Public Debt Management Office (PDMO), which has been in operation for 14 months. It was observed that 90 percent of total staff recruitment has been completed. Officials have been provided with specialized local and international training to enhance professional capacity.Although the Central Bank’s auction system is currently used for public debt management activities, steps are being taken to establish an independent system within the PDMO to enable full operational autonomy in the future.The Committee observed that Sri Lanka’s total domestic debt stock amounts to Rs. 31 trillion, comprising Rs. 15.6 trillion in Treasury bills and Rs. 15.4 trillion in Treasury bonds. The average cost of this total debt is reported at 8.73 percent.It was further noted that Sri Lanka’s total external debt servicing requirement for 2026 is projected at USD 2,504 million. Expected foreign inflows for that year amount to USD 2,100 million, including USD 858 million in project loans, USD 150 million in World Bank budget support, USD 380 million from the Asian Development Bank (ADB), and USD 800 million from the International Monetary Fund (IMF).Accordingly, a resource management gap exceeding USD 400 million remains to be addressed for debt servicing in 2026.


2026-02-24

The Parliamentary Sub-Committee on Energy meets under the Chairmanship of Hon. MP Ajith P. Perera

The Parliamentary Sub-Committee on Energy met in Parliament on 18.02.2026 under the Chairmanship of Hon. Member of Parliament Ajith P. Perera. During the meeting, several matters relating to the energy sector were discussed.Accordingly, attention was drawn to Demand Side Management (DSM) of electricity, the current progress of the Kerawalapitiya Power Plant, future sustainability plans of LTL Holdings (Pvt) Ltd and Lanka Electricity Company (Pvt) Ltd, the “Soorya Bala Sangramaya” programme, and the promotion of hydrogen as an energy source.This Sub-Committee convenes as a body appointed by the Sectoral Oversight Committee on Infrastructure and Strategic Development, chaired by Hon. Member of Parliament S. M. Marikkar.






Copyright © The Parliament of Sri Lanka.

All Rights Reserved.

Design & Developed by  TekGeeks