Decision Taken at the Cabinet Meeting held on – 18.08.2010

1.      On the recommendation of Minister of Petroleum Industry Susil Premajayantha Cabinet granted approval to enter in to an agreement with National Iranian Oil Company (NIOC) to extend the existing term contract  to procure 2 million MTs of Iranian Light Crude Oil from 1st September 2010 to 31st August 2011 with 120 days interest free credit facilities.

And to procure 135,000 MTs of Arabian Light Crude Oil from Saudi Arabian Oil Company, Saudi Arabia,during the year 2010 with 30 days interest free credit facility.
Prior to 2007 Iran offered only the normal credit facility up to 30 days. In response to a request made by our President during his visit to Iran for the first time in 2007, the Government of Iran extended interest free credit facility up to 120 days. When our country experiences severe shortage of foreign exchange in 2008 – 2009 as a result of the global recession, this credit facility was a great relief of Sri Lanka.

2.      On a proposal by Minister of Agriculture Mahinda Yapa Abewardena , Implementation of “Api Wawamu – Rata Nagamu” Local Food Promotion Programme – Cabinet observed that the above programme has been implemented successfully during the period from 2007 – 2010. In 2008 Sri Lanka recorded the highest ever annual paddy yield of 3.88 Million MT. The highest yield recorded in a single Maha season was 2.6 million MT paddy in the 2009-2010 Maha Season.

As a result of this increased paddy production the annual per capita wheat flour consumption has come down to 29.22 kg in 2009 from 42.07 Kg in 2005. The extent of paddy cultivation in the Eastern Province has also been increased to over 40% by now, as against 2007.

Accordingly, Cabinet approval was granted in principle to include this programme under the Medium Term Budgetary Framework  for the year 2011 to 2013 and to implement it as a well integrated development programme jointly by the Ministry of Agriculture and the Provincial Department of Agriculture.

3.      On a proposal by Minister of Agriculture Mahinda Yapa Abewardena Cabinet approval was granted to provide funds required for the Research and Development component of the Project  Proposal for the Establishment of Biodiversity Garden of Tropical Fruits at Fruit Crops Research and Development Center (FCRDC) at Horana, Department of Agriculture, during the first three (03) years to develop it as a Biodiversity Garden of Tropical Fruits,  with the assistance of all related public sector institutions including the Department of National Botanical Gardens.

4.      On the recommendation of Minister of Environment Minister Anura Priyadarshana Yapa, Cabinet of Ministers granted approval for the ratification of the SAARC Convention on “Co-operation on Environment” signed in Thimphu by the Ministers of Foreign / External Affairs of the SAARC Member Sates at the 16th SAARC Summit held from 28-29 April 2010 in the presence of the Heads of States SAARC including the President of Sri Lanka.

The objective of the Convention is to enhance environment cooperation among the SAARC countries in the light of continuing degradation of environment in the region and to promote concerted efforts in protection and conservation of the environment regionally.

5.    On the recommendation of Minister of Water Supply and Drainage Dinesh Gunawardena, approval was granted to award the tender for the Supply necessary items required for the Rehabilitation of the Water Supply Distribution system in Pettah, Hultsdrop and parts of Kotahena and Maradana in Colombo for a sum of RS.1098 million.

Ministry of Water Supply and Drainage has placed before the cabinet the recommendation of the Cabinet Appointed Tender Board to grant the tenders for the supply and laying of pipes in the Pettah, Hultsdrop and parts of Kotahena and Maradana in Colombo for the supply of water under Phase I of Kalu Ganga Water Supply Project.

This procurement was done in accordance with the procurement guidelines of GOSL / JICA. Further, JICA has granted concurrence to the decision.

The total cost of this activity which amounts to Rs.1098 million will be met from loan funds provided by the Government of Japan.

Prof. Ariyaratne Athugala
Director General of Government Information