Angry Rajapaksa trying to hit back at India
- Monday, 11 November 2013
Angered by Indian Prime Minister Manmohan Singh’s decision not to attend the Commonwealth Heads of Government Meeting (CHOGM) in Colombo this week, the Mahinda Rajapaksa government has hardened its stance on leasing the Trincomalee oil tank farm to the Indian Oil Corporation (IOC).
The Press Trust of India (PTI) has reported that Sri Lanka has refused to sign a decade old agreement to lease the Trincomalee strategic oil storages to a unit of IOC and is blocking the Indian firm’s plans to set up a bitumen plant in the island nation.
In 2003, Lanka IOC - a subsidiary of state-owned IOC - bought one-third share in Ceylon Petroleum Storage Terminals Ltd which operates the China Bay tank farm.
The Ceylon Petroleum Corp (CPC) and Colombo entered into an MoU with Lanka IOC to grant a long-term lease to the Indian firm for operating the 99 storage tanks at Trincomalee for 35 years for an annual fee of USD 100,000.
Industry sources have said that the 35-year lease finalisation dragged on and now Colombo has reservations on leasing out ‘state asset’ to Lanka IOC.
Industry sources have said that the 35-year lease finalisation dragged on and now Colombo has reservations on leasing out ‘state asset’ to Lanka IOC.
Since commencing operations, Lanka IOC has invested close to USD 15 million at regular intervals in creating facilities like additional storage tanks, lube blending facilities and refurbishing of jetty.
It also wants to invest another USD 17 million in creating bitumen handling facilities at the tank farm and had applied to the Board of Investment (BOI) of Sri Lanka, they said adding BOI has told Lanka IOC that approval can be given only after settlement of lease issue.
Sources said with Sri Lanka government having reservations on leasing the facilities to Lanka IOC, the entire project is stuck.
Petroleum Secretary Vivek Rae has written to Foreign Secretary Sujatha Singh to take up the issue at the diplomatic level.
Lanka IOC, at the instance of Sri Lankan government, had in May submitted a proposal to operate the tank farms in a joint venture with CPC but there has been no response so far.
The 99 storage tanks and ancillary facilities are divided into ‘upper’ and ‘lower’ farms. The lower tank farm with 15 tanks is currently being utilised by Lanka IOC for storing and distribution of petroleum products. The upper tank farm consists of 84 tanks in an area of about 800 acres and is not being utilised presently except for storage of water in four tanks.
Criminal Complaint Against James Packer
November 11, 2013
The UNP today filed a police complaint against Australian casino king James Packer who arrived in Sri Lanka today.
UNP MP Harsha De Silva together with colleagues Ruwan Wijewardane and Ajith Perera filed the complaint at police headquarters in Colombo alleging that Packer was in Sri Lanka to promote a casino project in the country when casinos were illegal.
“He is said to be plotting with some local businessmen to establish a large scale casino in Colombo,” de Silva told reporters in Colombo after he made the complaint.
The UNP MP said that they told the police that they appreciated that the law was implemented with regard to a small time casino at Town Hall recently. “But the law must apply with the same force on the big time casinos operating in Colombo as well,” De Silva explained.
Packer is in Colombo to address the Commonwealth Business Forum and to hold discussions with the Government and other stakeholders to get his joint venture project to build a mega resort with gaming facilities on the Beira Lake. Packer’s Crown Sri Lanka project has been granted unprecedented tax breaks by the Rajapaksa Government.
