“This is not a government. People elect a government to use resources in the country with a good management for the development of the people in the country. However, this government is selling and sacrificing the most important resources that belong to the people. As a political party and trade union movements we would begin a street struggle against government’s policy of selling and sacrificing country’s resources. We would build the broadest force to launch the biggest struggle against the attempt to sell Ceylon Petroleum Corporation, oil tanks at Hambantota, the oil tank farm at Trincomalee, the refinery, Colombo Port,” said the Leader of the JVP Comrade Anura Dissanayaka at a press conference held at the head office of the JVP at Pelawatta yesterday (3rd).
The President of National Trade Union Center (NTUC) Comrade K.D. Lal Kantha, the General Secretary of All Ceylon Ports General Workers Union Comrade Chandrasiri Mahagamage, its Asst. Secretary Comrade D. Niroshan, the President of Ceylon Petroleum General Services Union and Provincial Councillor Comrade Ashoka Ranwala and its Organizing Secretary Comrade Ajith Padmasiri Perera were also present.
Speaking further Comrade Anura Dissanayaka said, “The present government is manipulating the economy towards selling and sacrificing the resources of the country. Before this government came to power a view was spread that it is a UNP government that could take the economy of the country towards prosperity, fill pockets of the people with money, where shops would be filled with customers and generate one million jobs. However, after one and a half years in office the government has shown that they were only fairy tales, it cannot increase production, protect the existing production economy, generate jobs or raise the living standard of the people. Besides, even after ten months have gone by this year, there is no definite budget for the country. Neither the Parliament that has fiscal power nor the Ministry of Finance know the income or the expenditure of the country. The economy is manipulated blindly.
The government doesn’t have an economic theory. When the economy of a citizen breaks down he sells the vehicle or the land he owns. This government does the same. Valuable resources of the country are sold to confront the economic crisis. Colombo Port is one such valuable resource. Colombo Port holds the 26th position among harbours in the world. We’re 12th in the list of countries with ports. In all other countries the ports are important on the production and imports of that country. In China Shanghai Harbour has an important place due to the export of its massive loads of products. However, the market in Sri Lanka is small. Import and exports are limited. However, Colombo Port enjoys an important place through transhipment. Colombo Port has 5 container terminals. 2 of them have been already sold. Queen Elizabeth Jetty and South Jetty have been privatized. By 2001 86% of operations in Colombo Port were carried out by Sri Lanka Ports Authority. It has been brought down to 38% at present. However, container movements in Queen Elizabeth Jetty have been increased from 14% in 2011 to 28% now. Container handling the government possessed has come down to 38%. This was due to the shallowness of terminals owned by the government. It was limited to 15 meters. The jetties managed by the private sector have depths of 18 meters and more so that they could accommodate larger container vessels. Later, the East jetty owned by the government was deepened to 18 meters. What is left to do is to fix cranes. Instead of procuring what is required, the government has decided to sell the East Jetty saying it runs at a loss.
It is true that Port Authority is run at a loss. But this loss is not due to the East terminal. By 2015 Sri Lanka Ports Authority incurred a loss of Rs. 141,560 million. During Mahinda Rajapaksa regime Rs. 144,000 million was spent to build Hambantota Harbour. By now the loss due to Hambantota Harbour is Rs.37,180 million. A Rs. 8000 million loan was obtained to build Oluwil Harbour. This loan too is paid by Sri Lanka Ports Authority. Not a single ship has arrived at Oluwil Harbour since 2013. A Naval training school was built near Oluwil Harbour spending funds from Sri Lanka Ports Authority. Only 5 students sought admission. It was handed over to Eastern University. The loss is to the Ports Authority. Rs. 4200 million was spent to build Sooriyawewa Stadium. As such the loss incurred by Port Authority is not an issue of the East terminal. A main reason for the loss incurred by the Port Authority is spending large amounts of money by the governments that ruled this country for projects that had no direct connection with the Port Authority. Hence the attempt to sell East terminal of Colombo Harbour should be defeated. At present Prime Minister Ranil Wickremesinghe has presented a cabinet paper to sell 85% of the East terminal. We would guarantee that the JVP together with trade unions and other progressive forces would defeat the attempt by the ‘yahapalana’ government to sell important and sensitive economic centers in the country.
Also, the government has decided to privatize the refinery. The government has planned to establish a private company attached to Ceylon Petroleum Corporation and hand over the refinery to this company and carry out work as a joint venture with a foreign company. The refinery needs modernization. The previous government failed to modernize the refinery for nine years. Various other projects were carried out with funds from CPC. The important and sensate economic centers were not modernized. Certain foundation stones laid for modernizations are nine years old now. The present government attempts to privatize the refinery. It is a very unfavourable decision for the country. The refinery that was commissioned in 1969 exported refined fuel by 1975 and earned 45% of the cost for importing fuel. However, the refinery was not modernized to produce the necessary volume.
We have more than 100 tanks within the oil tank farm at Trincomalee. These tanks have a capacity of storing one million metric tons of fuel. The British built the oil tank farm during the second world war for their use. The Muthrurajawela and Kolonnawa tanks we use at present can store only a month’s need of fuel for the country. However, at the oil tank farm at Troincomalee fuel needed for 4 months could be stored. When the prices of fuel go down in the world market we could store 4 months need of fuel in these tanks. It is a very valuable oil tank farm. Earlier a MoU was signed and the farm was handed over to an Indian company. Now this MoU has expired. The government owns the oil tank farm now. With the expiring of the MoU Indian Oil Company has to pay the government US$1 million monthly. Instead of collecting this money Ranil Wickremesinghe is preparing to hand over the oil tank farm to IOC. If we use this oil tank farm all fuel tankers could be brought to Trincomalee Harbour. For, a situation has developed at Kolonnawa where the pipe lines cannot be repaired. Fuel can be appropriately stored in oil tank farm. Despite Minister Chandima Weerakkody getting a cabinet paper approved for 17 of the oil tanks to be used, Prime Minister Ranil Wickremesinghe is attempting to give the oil tank farm to IOC. The oil tank farm could be made a storing place as well as the distribution center for fuel in our country. Fuel could be distributed to other parts of the island by rail. It is such a resource that is to be sold.
Hambantota Harbour was first proposed as a bunkering, ship repair, ship building, and crew change facilities port. It is near an old sea route. About 500 ships sail along this route. The first proposal was for bunkering. For that a project composed of five up right tanks with dome in 10,000m3, three up right tanks with dome in 5,000m3, three up right tanks with dome in 3,000m3, three spherical LPG tanks with 2,000m3 and all necessary auxiliary facilities were built. A ship could pump fuel to the oil terminal in one day. Ships take 7 days to unload fuel to Muthurajawela and Kolonnawa tanks. Hence unloading fuel at Troncomalee is seven times faster. This would bring in larger profits. The government, instead of handing over the bunkering service at Hambantota to the Ports Authority, called for tenders. IOC, a Chinese company and Ports Authority applied. Ports Authority won the tender. However, the government is preparing to hand over the tanks at Hambantota to a Chinese company. Government’s attempt to sell and sacrifice the oil tank farm at Trincomalee is to be repeated at Hambantota as well.
Maithri – Ranil administration is like public auctioneers. This is not a government. People elect a government to use resources in the country with a good management for the development of the people in the country. However, this government is selling and sacrificing the most important resources that belong to the people. As a political party and trade union movements we would begin a street struggle against government’s policy of selling and sacrificing country’s resources. We would build the broadest force to launch the biggest struggle against the attempt to sell Ceylon Petroleum Corporation, oil tanks at Hambantota, the oil tank farm at Trincomalee, the refinery and the East terminal at Colombo Port.
If bunkering service at Hambantota is privatized the government will lose the returns. We would not be able to get it back. The East Jetty in Colombo Harbour is to be given to a private company for 35 years. The government will not gain anything for 35 years. If the refinery owned by CPC is privatized the country wouldn’t get any profits. These are very important economic centers of our country. Hence, the destruction Maithri – Ranil administration is going to do to the country should be stopped. We, as a political movement and important trade unions in the country, call upon all trade unions, people and journalists to come forward to prevent the government from selling important and precious centers of the economy of our country.”
