Sri Lanka News Updates with Discussions

Sri Lanka government today stressed that the Cabinet and the Parliament only have rights to decide on imposing taxes in the country.

Speaking at a press briefing held in Colombo this morning Consumer Affairs Minister Bandula Gunawardena said that nobody could interfere with this right.

Responding to a question made by the journalists on clash between the government and the Supreme Courts on fuel issue the Minister added that the price of petrol will remain unchanged.

According to the Minister the current fuel shortage was made by the shed owners and the main opposition to collapse the government.

Addressing the same press briefing the Media Minister Anura Priyadharshana Yapa also confirmed that the price of petrol will remain unchanged at least until next Wednesday. The Cabinet is to take up the issue on next Tuesday (23) when they meet again.

Will there be CF for the madhu devotees to celebrate Christmas in madhu church this year??

Lanka Indian Oil Corporation (LIOC) has decided to sell 90 octane petrol at Rs. 100 with immediate effect, stated officials from LIOC

Gonix, Upul probably owns a real horse, man. LOL

looks like the central government has been stinging along the dumb tn's all along!! lol!! why oh why

Sri Lanka unit of Indian oil cuts petrol price on court order
Dec 19, 2008 (LBO) Lanka IOC, a unit of Indian Oil Corporation is cutting the retail price of petrol to 100 rupees a litre on an order by Sri Lanka's Supreme Court, an official said Friday.

'Our lawyers have advised us to cut the price,' Lanka IOC chief executive Suresh Kumar said.
'We have started informing the outlets from around 8.00 p.m.'

Lanka IOC usually piggy backs on the price of state-run Ceylon Petroleum Corporation (CPC).

Supreme Court fixed petrol prices at 100 rupees a litre Wednesday and also specified tax on a formula based on petrol at around 56 US dollars a barrel.

Under the court ordered formula, petrol prices do not come down below 100 rupees a litre even if oil prices fall further.

Sri Lanka's cabinet of ministers met on two consecutive days over the issue but took no action saying the court order was not yet received.

Cabinet is next due to meet on Wednesday. Before the court order Sri Lankan president Mahinda Rajapaksa said in a public speech that the government would not be tied down by a price formula.

The court order came following a public interest petition which said the government was charging 72 rupees of tax from petrol which cost less than 30 rupees a litre to import.

Lanka IOC, a listed company in the Colombo Stock Exchange is cutting prices ahead of any cut on government levies, hurting its margins.

The court order also directed the Treasury to charge a higher percentage of tax from Lanka IOC which is leaner and has lower operating costs, compared to the more inefficient CPC which has been stuffed with government supporters for decades.

Court also ordered its former chairman sacked and its finance manager had been barred from coming to work over controversial derivative the utility bought to fix prices.

Court has also halted payments to banks on the derivatives.

Anyhow...interesting times are ahead as GOSL is going to be in troubled OIL !