Financial Times

Nahil accuses PERC of violating Lankan constitution
Sri Lankan business magnate Nahil Wijesuriya has accused the Public Enterprise Reforms Commission (PERC) of violating the constitution by barring Sri Lankan investors from the domestic petroleum market.

Referring to a PERC announcement inviting potential investors, the East West Enterprises Ltd chairman said the the statement "Pre-Qualification Criteria - Expressions of interest are sought from international petroleum companies with a proven track record in petroleum product retailing" took away the fundamental right to equal opportunity guaranteed to Sri Lankans under the Constitution.

"By barring Sri Lankan investors from making an 'Expression of Interest' and the consequential denial of participation in what is undoubtedly a major business opportunity, the PERC is clearly acting ultra vires the Constitution of Sri Lanka," he said in a letter to PERC chairman Chrisantha Perera.

He said the press notice was a fundamentally flawed document and urged that the notice be re-advertised giving local investors equal opportunities to participate in the liberalisation of the fuel market Wijesuriya said they were made to understand that, in PERC's view, local companies doesn't possess any knowledge or expertise to import, store, transport and sell petrol at petrol stations simply because CPC monopolised this field for over 30 years.

"It is possible - even probable - that PERC mistakenly believes that Sri Lanka sorely lacks the level of expertise needed for successful management of storing, transporting and pumping petrol in filling stations.

We are more than happy to let you know that there is no hi-tech that is required here; the 30-year petroleum monopoly has bequeathed to this country a vast pool of expertise - not only in selling petrol in filling stations but also in the more demanding business of running a petroleum refinery. Any Sri Lankan who so wishes could mobilise these resources and run a successful business of importing, storing, transporting and selling petrol in petrol stations."

Tea output seen exceeding 300m kg
Ceylon tea production looks set to exceed 300 million kg this year with a good crop in July reducing the cumulative deficit, the Sri Lanka Tea Board said. Black tea output in July bounced back to the highest in three years, with a total of 24.7 million kg from all the island's three elevations, brokers John Keells said.

The Tea Board said the nine percent increase in the July production, compared with July 2002, helped propel cumulative January-July output to 177.6 million kg, narrowing the deficit to almost 4.3 million kg or two percent. Sri Lanka, the world's largest tea exporter, produced a record 310 million kg in 2002. Its January-July production was 181.9 million kg.

"It is encouraging to see the Low Country posting its best in three years for July with 14.2 million kg," John Keells said. "This is a significant comeback from the effects of the worst flooding the region has seen in recent history. The increase reflected a 12 percent growth from last year and accounted for 57 percent of the national volume."
Mid-Grown production grew 18 percent for the month, a significant improvement for the smallest sector accounting for 18 percent of the total national output, it said.
However, the High Grown volume fell two percent to six million kg.

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