SRI LANKA NEWS (DECEMBER 2021) Compiled by Victor Melder.

Sri Lanka’s inflation, as measured by the change in the Colombo Consumers’ Price Index (CCPI) increased to 9.9 percent in November 2021 from 7.6 percent in the previous month, the Department of Census and Statistics reported Tuesday. The CCPI for all items for the month of November 2021 increased to 150.7 from 146.9 in October 2021. With respect to October 2021, the reported inflation for November 2021 was mainly due to the higher price levels prevailed in the month, the Department of Census and Statistics said. As a result, the Year on Year inflation of Food Group increased to 17.5 percent in November 2021 from 12.8 percent in October 2021 and the Year on Year inflation of Non Food Group increased to 6.4 percent in November 2021 from 5.4 percent in October 2021. For the month of November 2021, on year‐to‐year basis, contribution to inflation by food commodities was 5.51 percent and the contribution of Non Food items was 4.41 percent. The moving average inflation rate for the month of November 2021 is 5.3 percent. The corresponding rate for the month of October 2021 was 4.8 percent. (Colombo Page, 1.12.2021)

SJB MP Gayantha Karunatilaka said in Parliament yesterday that illicit alcohol consumption in Sri Lanka has risen over 300% in recent times, adding considerable stress to Government health expenditure. Speaking during the Budget debate on the Ministry of Health, he noted that according to World Health Organization estimates, average global alcohol consumption had risen 55% whilst the number in Sri Lanka stood at 95%. He said that this painted a grave picture of alcohol consumption and regulations in Sri Lanka, and that the Government needs to focus more attention on this aspect. He asserted that consumption of illicit alcohol with varying levels of unregulated toxins posed serious threats to human health, and this had a caused a rise in hospital admissions and treatment in recent times, which is a burden to State expenditure. (Daily Financial Times, 1.12.2021)

The Government is holding talks with India for two separate currency swap arrangements to the value of US$ 1.4 billion, in addition to an already announced US$ 500 million credit line. Central Bank Governor Ajith Nivad Cabraal told the Sunday Times the terms and conditions for the new US$ 1.4 billion swap deal would be disclosed after the talks were completed. He said the latest swap would help to boost Sri Lanka’s foreign reserves. The talks on the swap arrangement are in addition to negotiations for a US$ 500 million Indian credit line for fuel purchases. The move comes as Sri Lanka is expected to meet international commitments up to US$ one billion by mid next year. The Governor said that although the Yahapalana Government had left behind a reserve of US$ 7.6 billion in 2019, the new government had paid up six billion US dollars last year and another US$ 6.6 billion this year for foreign debts. However, the repayments this year and next year include commitments with regard to loans taken during the 2010-2015 Mahinda Rajapaksa government, when Mr. Cabraal was the Governor of the Central Bank. Mr Cabraal said loans obtained in the latter part of the last government had aggravated the situation as it had taken loans up to seven billion US dollars from April 2018 to January 2019 at the commercial rates of 8 percent interest. “We will not go for commercial loans in the future, but will opt for government-to-government loans or swap arrangements between Central Banks,” he said. The Governor said the Government would, however, not go for bailout packages of the International Monetary Fund (IMF). (Sunday Times, 5.12.2021)

The Australian High Commission has granted additional A$ 1 million, or Rs. 135 million, in continued support for landmine clearance charity the Mine Advisory Group (MAG), until December 2022. Australia has been a consistent supporter of mine clearance in Sri Lanka since the end of the 26-year conflict in 2009 and has spent more than A$ 20 million, or Rs. 2.7 billion, on mines clearance.  In total, the new project aims to return ca. 220,000 m2 of land – equivalent to 15 cricket pitches – to local people for safe use and help remove the threat of landmines. The new funding will support MAG and its national partner Delvon Assistance for Social Harmony (DASH) to conduct humanitarian demining. MAG Country Director in Sri Lanka, Valentina Stivanello said MAG was grateful to Australia for its generous support, which she said, together with their partner DASH, would help to release large areas of contaminated land and support the livelihood of communities as well as economic development potential in the North and East of Sri Lanka.  The project will support the Sri Lankan Government’s goal to become mine free, in line with its obligations to the Ottawa Landmine Treaty. MAG estimates more than 5,000 people living close to the minefields will benefit from the initiative. DASH PM Ananda Chandrasiri said the elimination of the terrible legacy of landmines was essential for the future of Sri Lanka. The three-decade long civil war in Sri Lanka ended in 2009, leaving behind over 2,000 km2 of contaminated land. Today, minefields cover about 13 km2 of land in Sri Lanka that could be used for housing, farming, or to build homes, schools and clinics.  Since 2002, MAG has cleared over 43 km2 of land and recovered over 92,000 landmines and unexploded items (Daily Financial Times, 6.12.2021)

Advocata’s Bath Curry Indicator (BCI) which tracks the monthly changes in the price of a basket of commonly consumed food items recorded the highest retail prices since 2019. Since 2019, prices have increased by 44%. This means that an average family, who spent Rs. 960 weekly on the BCI basket of food items in November 2019 now has to pay Rs 1,390 for the same basket of goods just two years later. Retail prices year on year have shown an increase of 35%. However, the food items that have increased the most in the past month alone are tomatoes (206%), beans (33%) and green chilli (23%). The BCI tracks the weekly retail prices in the Colombo market of the most commonly consumed food ingredients that might be used in a typical Buth curry meal. The prices are collected from the Weekly Indicators that the Central Bank publishes. (Daily News, 8.12.2021)

According to Epidemiology Unit of the Health Ministry, 757 new COVID-19 cases were reported so far on Wednesday. According to the Epidemiology Unit report at 8:30 pm Wednesday, a total of 569,928 COVID-19 cases have been reported since the beginning of the pandemic. While 11,928 infected patients are currently under medical care at hospitals and homes, 543,467 patients have fully recovered and been discharged from hospitals. Sri Lanka Wednesday reported 28 deaths raising the total to 14,533. According to the Epidemiology Unit report, so far total of 15,948,495 people have received a first dose of COVID-19 vaccine and 13,771,693 have received the second dose. In addition, 1,033,791 have received the third booster dose. (Colombo Page, 8.12.2021)

A recent national survey conducted by LIRNEasia, a regional policy think tank, showed that 44% of Sri Lanka’s population aged 15 and above were internet users in 2021. Internet use was lower amongst the rural, elderly, less educated and poorer groups. Those residing in rural areas, for example, were 19% less likely to be online than their peers residing in urban areas.
The pandemic situation has brought many online, with 31% of new users (aged 15 and above) in 2020 and 2021 citing that they came online due to a need brought about by the pandemic. Despite the growth experienced, internet use levels in Sri Lanka this year were below that of countries such as India and Nigeria. Sri Lanka’s sub-par performance in this regard is notable for two reasons. First, because empirical evidence shows that countries with higher per capita income often have higher internet use levels. Sri Lanka’s internet use levels were below that of countries with lower per capita income levels (Figure 2). Second, because Sri Lanka has out-performed these countries in the past, but recent high growth in countries such as India – where internet use grew by 25% annually – have led to them overtaking Sri Lanka.  “Concerted efforts should be made to bring and keep those at the margins online,” LIRNEasia Senior Research Manager Gayani Hurulle, stated. “These include ensuring that high-quality, affordable internet is available to all, and digital skills of users are built to allow for productive, responsible and safe internet use.”  (Daily Mirror Online, 10. 12. 2021)

The Colombo Chief Magistrate has dismissed a case filed against three gay men for homosexuality. The dismissal of Case No. 34131/3/20, was based on a letter by the Attorney General informing the Police that the Attorney General will not pursue the case.  In June last year, Narahenpita Police raided a private hotel room in Colombo and arrested three men for homosexuality. The men were beaten with batons and wires until they bled by the police and subject to forced anal examinations by Judicial Medical Officers (JMOs). The men, all who identify as gay, were not participating in any sexual activity at the time of the raid but were merely having drinks and eating in the room. The men allege that the police had used an unopened packet of condoms in the hotel bathroom as grounds to arrest them. It is not unusual for hotels to provide complimentary condoms in hotel sanitary kits. The police then proceeded to prosecute the men under section 365A of the Penal Code.   Section 365A criminalises “gross indecency” between any persons and does not specifically mention or criminalise homosexuality. However, police enforce these provisions almost exclusively against LGBT people, leading to a practical criminalisation of LGBT people in Sri Lanka.  Following an investigation last year, the Daily Mirror exposed how the Sri Lanka police were using sections 365 and 365A of the Penal Code to routinely arrest and torture LGBT people for consensual relationships. Evidence also shows that while police harass and arrest LGBT people for consensual relationships, there is considerable police inaction on sexual crimes against women by men.    Investigation also produced evidence of forced anal and vaginal examinations of LGBT people by JMOs on the instructions of the police. One of the victims of the police prosecution, a Swedish national, has filed a complaint with the Human Rights Commission of Sri Lanka. In a petition detailing his harrowing experience at the hands of Sri Lanka Police, the victim states that he was “subjected to torture, cruel and inhumane and degrading treatment” and that police officers tied him with wires, and forced him to undergo anal examinations in attempt to prove homosexuality.”   Attorney General has consistently repeated since 2014 that discrimination against LGBT people is unconstitutional and violated the right to equality and freedom from discrimination under Article 12 of the Constitution. Despite these repeated assertions by the AG, the police have continued to harass arrest and prosecute LGBT people.
The request for dismissal by the AG is the first such known instance of dismissal of a case against LGBT people.   
Recently, several LGBT rights activists, led by Equal Ground, filed a writ petition in the Court of Appeal against Sri Lanka Police for conducting homophobic training sessions. This is the first such case in the Senior Courts of Sri Lanka requesting to enforce the rights of LGBT people.   (Colombo Page, 10.12.2021)  

The official reserves and assets of Sri Lanka as at last November were US$ 1587 million, State Minister of Samurdhi, Household Economy, Micro Finance, Self-Employment and Business Development Shehan Semasinghe today informed the Parliament. Responding to a written question, State Minister Semasinghe said the foreign exchange reserves stood at US$ 1009.5 million and the International Monetary Fund’s reserves at US$ 67 million and special purchases account funds were at US$ 127.2 million. He said the country’s gold reserves were worth US$ 382 million while other reserves were at US$ 1.1 million. (Colombo Page, 9.12.2021)

The World’s largest single natural specimen of corundum as a single crystal (Blue sapphire) has been found in Sri Lanka, officials said. According to the National Gem and Jewellery Authority, the specimen, which weighs 310 kg dimension (66.04cm , 60.96cm, 48.26cm) has been named as the “Queen of Asia”. This specimen was brought to the National Gem and Jewellery Authority Gemmology Laboratory, Ratnapura, where the gemmologists took five samples representing the whole rock specimen and carried out several gemmological tests. Accordingly, the tests showed that all five samples were natural. This specimen is a rare specimen and not recorded in the gemmological literature. (Daily Mirror Online, 12.12.2021)

About 32 children are abused every day in this country, said the Minister of Mass Media, Dullas Alahapperuma at a workshop held at the Government Information Department on Wednesday. The Minister said a child is abused every hour and this year alone the National Child Protection Authority has received 10,713 complaints regarding child abuse. There were 1,632 complaints of abuse of children under the age of five and 2,626 complaints of abuse of children between the ages of 6 and 10. The Minister also stated that the number of unreported incidents is very high compared to the number of complaints recorded. He said that although the relationship between the media and children should be similar to the teacher-student relationship, at present it has become like the relationship between a bogeyman and a child. State Minister of Women and Child Development, Pre-School and Primary Education, School Infrastructure and Education Services Piyal Nishantha, Senior DIG Ajith Rohana and Director General of Government Information Mohan Samaranayake were also present. (Colombo Page, 17.12.2021)

International ratings agency Fitch downgraded cash-strapped Sri Lanka Saturday by one notch to “CC” due to mounting fears of a sovereign default on its $26 billion foreign debt. The downgrade came a day after Sri Lanka reported a 1.5 percent contraction in the third quarter of this year as a foreign exchange crisis wrecked its recovery from the coronavirus pandemic. Fitch said the downgrade reflected its view of an “increased probability of a default event in coming months” as Sri Lanka’s foreign reserves slumped to $1.58 billion at the end of November. “We believe it will be difficult for the government to meet its external debt obligations in 2022 and 2023 in the absence of new external financing sources,” the agency said in a statement. It noted Sri Lanka had to repay two international sovereign bonds of $500 million in January 2022 and $1.0 billion in July 2022 with little improvement in capital inflows into the nation of 21 million people. Foreign-currency debt service payments, including principal and interest, for next year total $6.9 billion, or the equivalent of nearly 430 percent of the island’s official gross international reserves as of November 2021. “Cumulative foreign-currency debt service, including interest and principal, amounts to about $26 billion from 2022 through to 2026,” Fitch said. The island’s tourism-dependent economy was hammered by the pandemic and authorities responded to falling foreign exchange reserves with a broad import ban, triggering shortages including food, fuel and medicines. The crisis has spread to affect manufacturing and services and agriculture has also suffered badly due to a ban on agrochemical imports. Sri Lanka’s economy had grown 12.3 percent in the second quarter but a third wave of infections that forced a 41-day curfew saw services and industries heavily affected, the statistics office said on Friday. Its foreign reserves of $1.58 billion at the end of November compared with $7.5 billion when the government of Gotabaya Rajapaksa took over two years ago. Supermarkets have rationed staples such as milk powder, sugar, lentils, tinned fish and rice as commercial banks ran out of dollars to finance imports. The central bank has been appealing for foreign currency, even loose change people may have after returning from overseas trips, as the government desperately looks for dollars. The banking regulator has also warned it will freeze accounts of informal money changers who offer higher prices for hard currency than official exchange rates. (Daily Mirror, 18.12.2021)

Fitch Ratings, in a rather hasty move, downgrading Sri Lanka’s international sovereign rating on 17 December 2021, demonstrated its failure to recognize the positive developments taking place in Sri Lanka amidst a global pandemic, the Central Bank of Sri Lanka said in a statement today. Responding bitterly to the downgrade, the Central Bank said the action resembles the recent unwarranted downgrade by Moody’s Investors Service a few days prior to the announcement of the National Budget 2022. “The sense of urgency on the part of an internationally recognized rating agency to downgrade Sri Lanka is inconceivable, particularly considering the fact that Fitch was being constantly updated by Sri Lankan authorities on the latest developments in all sectors of the economy and imminent foreign exchange inflows,” it said. The Central Bank explaining the current developments requested all stakeholders of the economy, including international investment partners, not to be dissuaded by this “unjustified” rating action, but instead, work with Sri Lanka to “surf the turbulent tides”, which are expected to settle in the next few days. (Colombo Page, 19.12.2021)

Sri Lanka is heading towards a major economic crisis in 2022 amidst dwindling foreign reserves and pressure on the monetary system with no immediate signs of recovery, official statistics and estimates computed by government agencies with the use of financial modeling has revealed. While Sri Lanka is due to repay close to US$1 billion worth of debt next month (January) and a total of over $7 billion for 2022, the Sri Lanka economy has contracted by 1.5 percent year-on-year in the third quarter of 2021, following a 12.3 percent expansion in the previous period, according to the Census and Statistics Department (DCS). It was the first drop in economic output since the second quarter of last year, as the country re-imposed quarantine curfews and other restrictions amid its worst virus wave since the onset of the pandemic. Further the Treasury coffers had to spend a massive Rs. 2.5 trillion in nominal terms per year, bringing the total loss of economic output during the two years of COVID-19 pandemic to Rs.5 trillion, Finance Ministry data revealed. The official reserves and assets of Sri Lanka as at last November were US$ 1.58 billion.. The Central Bank and the whole banking system’s Net Foreign Assets (NFA) which refers to the difference between gross foreign reserve assets and liabilities related to foreign reserves exceeded – $3.6 billion, provisional data shows. According to latest statistics, the total debt burden will be over $7 billion in 2022 while the country has to pay bilateral debt of donor countries amounting to $947 million in January alone next year. The January 2022 payments included $500 million of International Sovereign Bonds, $247 million of International Development Bonds and $200 million in terms of bilateral and multilateral loans The foreign debt situation of 2022 includes January payments for debt at $947 million; multilateral debt of international financial agencies = $604 million; debt owed to creditors overseas and related external debt = $514 million; international sovereign bond maturities = $1.5 billion out of which $500 million should be repaid in January 2022; further repayment for international sovereign bond interest and other debt charges =$ 1.08 billion; Sri Lanka Development bond repayment = $ 1.44 billion; other repayments = around $1.2 billion; and Bangladesh SWAP repayment = $150 million all of which totals = $7.43 billion. Central Bank Governor Ajith Nivard Cabraal has rejected claims that the country is having an acute foreign exchange crisis saying that foreign inflows expected by end 2021 would be around $3 billion. (Sunday Times, 19.12.2021)

Sri Lanka’s foreign remittances fell to a 12-year low of 271.4 million US dollars in November 2021, official statistics show. In April 2009, the remittances hit 266.3 million US dollars, when the rupee was floated. Last month’s figure was lower than the 375 m USD recorded in April 2020 amid global and domestic Covid-19 lockdowns. The remittances started to fall from 446 m USD in August as a 200 to the US dollar peg was strictly enforced. Banks were barred from buying dollars above the rate from remittance houses and family members of expatriate workers. (Ceylon Today, 20.12.2021)

A total of 847 gas related explosions have been reported to the police across the country this year alone and seven persons were killed in those explosions while 16 sustained injuries. A total of 797 out of total incidents were due to explosions involving Litro gas cylinders while 50 explosions were reported related to Laugfs gas leaks. Eighteen property damages were also reported since January 1 this year up to date. According to a report, 477 incidents were reported due to gas stove explosions while 299 incidents of gas leaks and 52 cases of damages to gas pipe were reported. Fifteen incidents due to damage in regulators and an incident of damage to a gas cylinder were also reported this year. Among the areas of where fatal incidents were reported due to gas explosions were, Thalathuoya, Maradana, Welikada, Kottawa, Kandapola,Matale and Kandy. (Daily Mirror Online, 21.12.2021)

Sri Lanka plans to settle a debt for past oil imports from Iran by paying it off in tea, a government minister said. Ramesh Pathirana said his country hoped to send $5m (£3.8m) worth of tea to Iran each month to clear a $251m debt. Sri Lanka is experiencing a severe debt and foreign exchange crisis, which has been made worse by the loss of tourist income during the coronavirus pandemic.

A member of the country’s tea board said it was the first time tea had been bartered to settle foreign debt. Mr Pathirana said the method of payment would not violate United Nations or American sanctions, because tea was categorised as a food item on humanitarian grounds, and no black-listed Iranian banks would be involved. “We hope to send $5m worth of tea each month to repay Iran for oil purchases pending since the last four years,” he told Reuters The Plantation Ministry said: “The recommended scheme will save Sri Lanka much-needed foreign currency since the settlement to Iran would be made in Sri Lankan rupees through the sale of Ceylon Tea.” (BBC News, 23.12.2021)

During the past three days of Christmas, the Colombo National Hospital reported 588 accidents.  Accordingly, the hospital issued a statement noting that this is a 29 percent increase compared to the number of accidents reported during the same three day period last year. Further, 123 road accidents were reported this year which is a 33% increase compared to 2020. The hospital further said that 140 accidents were reported due to falls which is a 40% increase compared to the number of accidents that occurred last year. Meanwhile, 83 domestic accidents have also been reported which is an increase of 14 % compared to 2020. Overall, the statement says a significant increase in the number of accidents has been reported to hospitals during the three days of Christmas this year compared to last year. (Daily News, 27.12.2021)

The official reserve position of Central Bank of Sri Lanka (CBSL) has today reached approximately USD 3.1 billion, CBSL Governor Ajith Nivard Cabraal said. “In keeping with our previous announcements, the official reserve position of CBSL has today reached approximately USD 3.1 billion and will remain around that level by end 2021 as well,” he tweeted. With reserves down to USD1.6Bn, in November, the governor said earlier that Sri Lanka would boost its foreign reserves to around USD3.5 billion by the end of the year. (Daily Mirror Online, 29.12.2021)

Chief Government Whip and Highways Minister Johnston Fernando yesterday opened the newly rehabilitated 86.7 km stretch of highway from Bibile to Chenkalady. The project is considered a major booster to the economy as it provides people easy access to markets and social infrastructure such as schools and hospitals and reducing the travel time due to the reduction of traffic congestion and ultimately reducing the travel cost benefiting passengers and industries. The feasibility study of the project to develop this stretch of the A5 main road to a two-lane highway commenced in 2014. The A5 highway from Peradeniya, Badulla to Chenkalady is 275 km long. Development and upgrading the road had been done in three phases by two construction companies. The first phase covered the development of a 29 km stretch from Bibile to Padiyatalawa, The 30 km stretch from Padiyatalawa to Tempitiya was covered by the second phase. Under the third phase of the project a 27.7 km stretch of road from Tempitiya to Chenkalady was upgraded. Upgrading the 86.7 km long road from Bibile to Chenkalady cost Rs 7,200 million. The Saudi Fund for Development assisted the Lankan government in covering the cost. A sum of Rs 12.4 million had been paid as compensation for the loss of lands of people in Bibile, Rideemaliyadda, Padiyatalawa and Mahaoya divisional secretariat areas because of the project. (Daily Island, 29.12.2021)

Total public debt stock stands at Rs.17 trillion; bulk consists of rupee debt as govt. leaned heavily on domestic borrowing. The total outstanding public debt has increased slightly under Rs.2.0 trillion during the first nine months, as the cash-strapped government had to borrow more since the country was hit with multiple waves of coronavirus since April this year, hobbling the economy. According to the latest data released by the Finance Ministry and published by the Central Bank, the country’s total debt stock had ballooned to Rs.17.05 trillion by the end of October 2021, from Rs.15.12 trillion at the end of 2020, rising by Rs.1,934.5 billion during the nine months. This is the most in any nine-month period but the good news is nearly 80 percent of the new debt was raised in rupees, as the country has been settling its foreign currency debt fell due during both 2020 and 2021, largely utilising its foreign currency reserves, which brought the country closer to a debt default. While the rupee debt took the lion’s share, it also caused the current troubles in the external sector, as they hit the balance of payment by way of outflows through imports, since the Central Bank had to provide dollars for such rupees until they stopped providing any more convertibility when reserves fell to rock bottom. Sri Lanka’s foreign currency reserves fell to US $ 1.6 billion by end-November, barley enough for a month’s imports before they were suddenly propelled to US $ 3.1 billion on December 29, with some inflows, which the Central Bank is yet to officially reveal. Meanwhile, the prospects of the US $ 1.9 billion worth of currency swaps and bilateral term loans with India reached a step closer this week, after the country’s Petroleum Minister said that an agreement would be signed in January with India to lease out 99 oil tanks in Trincomalee. Further, a joint venture company was also set up this week by Ceylon Petroleum Corporation, with the name of Trinco Petroleum Terminal Limited, to undertake operations by both parties. Meanwhile, the rupee debt, which predominately came by way of treasury bills and bonds and the majority of which came through printed money, also caused other excesses in the economy by way of sending the prices through the roof. The Colombo inflation hit 9.9 percent in November, with food prices also surging by 17.5 percent over the same month last year. According to the Treasury data, the total domestic debt has risen by Rs.1,533.4 billion in the nine months to Rs.10,598.5 billion. Meanwhile, the total outstanding foreign debt rose by a modest Rs.401 billion in the nine months, all of which came from the depreciation of the rupee and by the end of September 2021, the total foreign debt stock was at rupee equivalent of 6,453.2 billion. The Sri Lankan rupee has depreciated by about 7.2 percent against the dollar so far during the year. This could be one reason why the authorities are hesitant to float the currency, as its fallout on the outstanding foreign currency debt will be enormous.  Economists opine that the Central Bank should let either the currency or the interest rates to absorb the shock, as both cannot be controlled at once. (Daily Mirror Online, 30.12.2021)

The Police Traffic Headquarters says that over 2,400 people have been killed in fatal road accidents island wide so far in 2021. According to the police, 2,419 people were killed in 2325 fatal road accidents between January 1 and December 27 this year. Among the killed are 697 pedestrians, 901 motorcyclists, 152 pillion riders, 243 drivers, 246 passengers, 184 cyclists and 14 others, according to the Traffic Police Headquarters. In addition, 13,469 people were injured in accidents during the period, police said. Of these, 5,263 were seriously injured and another 8,216 sustained minor injuries, police said. (Colombo Page, 30.12.2021)

 The Sapugaskanda Oil Refinery will be closed from January 03 due to the shortage of US dollars for the purchase of crude oil, the Ministry of Energy said. The Petroleum Corporation management is preparing to restart the country’s only oil refinery before January 30 after procuring the required crude oil. The supply of crude oil by the Singaporean company which was awarded the long term contract for the supply of crude oil to Sri Lanka will commence from January 25. In the process of purchasing crude oil, the relevant company should be informed 90 days in advance of the purchase of the crude oil type used in the Sapugaskanda refinery, the Ministry said in a statement. Also, the purchase of alternative crude oil as emergency purchases failed due to the lack of foreign exchange, it added. It has also become difficult to buy crude oil on a credit basis as Sri Lanka has fallen in the credit rating, the Ministry further explained. However, Sapugaskanda oil refinery supplies only 14% of the country’s petrol and 29% of its diesel requirements. Therefore, the Ministry of Energy assures that the temporary closure of the refinery will not create an oil shortage in the country. Sri Lanka for the first time shut down the refinery on November 15 due to a shortage in crude oil supply. The refinery resumed operations on 07 December. (Colombo Page, 31.12.2021)

A total of 41 more cases of Omicron COVID variant have been identified in the country. Dr. Chandima Jeewandara, Director of the Allergy, Immunology and Cell Biology Unit of the Faculty of Medicine, University of Sr Jayewardenepura in a Twitter message announced that 41 new cases of Omicron have been identified in his laboratory as of today. Accordingly, the total number of omicron infections in the country has increased to 45. However, Dr. Jeewandara said Sri Lanka has plenty of mitigation measures against Omicron variant and urged the people to get their booster as a priority to prevent severe disease. Sri Lanka confirmed its first case of Omicron variant on December 03 in an unvaccinated Sri Lankan female who had returned from Nigeria. (Colombo Page, 31.12.2021)

India will have a direct say in as many as 75 of the oil tanks in Trincomalee, with 14 of them to be retained by the Indian Oil company on lease for another 50 years. The Ceylon Petroleum Corporation will manage the remaining 24, energy minister Udaya Gammanpila said. He spoke to the media today (31) where he claimed talks with India on the oil tanks farm to be a success and the outcome a ‘historic victory’ for Sri Lanka. LIOC will jointly manage 61 of the oil tanks along with the newly-formed Trinco Petroleum Terminals Ltd., he added. The new company has 51 per cent of its shares with the CPC and 49 pc with the LIOC. The positions of the chairman and four out of the seven members of its director board will be held by the CPC,  Gammanpila said. Its structure is such that it is audited by the auditor general and it could be summoned before the parliamentary committee on public enterprises (COPE), added the minister. (Ceylon Today, 31.12.2021)