News
“Move to hand over Sevanagala Sugar Co. to Daya G alleged”: PMD responds
Dhanushka Ramanayake, Director General (Media) of the President’s Media Division (PMD) has sent us the following clarification:
“The attention of President’s Media Division has beenbrought to the news item on pages 01 and 02 of The Island newspaper dated 30.10.2023, titled “Move to hand over Sevanagala Sugar Co. to Daya G alleged.”
Mr. Daya Gamage, a Sri Lankan entrepreneur and an active member of the United National Party under the leadership of President Ranil Wickremesinghe, is closely associated with politics. This connection highlights that any insinuation of a “conflict among allies” in the news, whether intentional or inadvertent, is misleading and based on incorrect information.
In the spirit of our mutual commitment to delivering accurate information to the public, we wish to present the correct details regarding the news piece in The Island newspaper from 30.10.2023, titled ‘Move to hand over Sevanagala Sugar Co. to Daya G alleged.’
No decision or proposal has been made to transfer Sevanagala Sugar Company to Daya Group.
As per the report in The Island newspaper, the Sevanagala Sugar Factory was brought under government ownership through the Revival of Underperforming Enterprises or Underutilized Assets Act No. 43 of 2011. This act also facilitated the government’s acquisition of several financially struggling institutions, including the Pelwatta Sugar Factory, Hilton Hotel and Grand Hyatt Hotel.
At the time of this acquisition, the investment in the Sevanagala Sugar Factory was attributed to the Daya Group Company, which is owned by Mr. Daya Gamage, a notable Sri Lankan entrepreneur. In cases where financial losses were incurred by investors due to the government takeover of these struggling businesses a designated assessment committee was appointed. The provisions of the same act were invoked to determine and provide compensation where warranted.
Consequently, compensation was disbursed to the companies taken over by the government. However, in the case of the Sevanagala Sugar Company, no compensation was forthcoming due to specific technical issues.
In response to this situation, Mr. Daya Gamage, as the investor in the Sevanagala Sugar Company, initiated three legal proceedings to seek compensation or the return of the property. He expressed his willingness to regain ownership and resume business operations without requiring compensation as an alternative resolution.
The government’s decision in this matter was to provide compensation rather than returning the property. In response, employees at the Sevanagala Sugar Company filed two fundamental rights cases in the Supreme Court, both of which are currently awaiting resolution.
To calculate the compensation owed to the investor for the handover of the Sevanagala Sugar Company to the government a Compensation Commission was re-established. This commission’s task is to assess the losses suffered by the investor encompassing property not only the immovable property of the Sevanagala Sugar Company but also considering the business losses incurred due to the acquisition of specific motor vehicles, machinery and equipment meant for its further development.
The Compensation Commission is chaired by the Chief Valuator of the Government and includes two retired Chief Appraisers from the Government Valuation Department as members. They are responsible for conducting the compensation calculations. To maintain transparency throughout this process, the investor has been granted approval by the cabinet to appoint a monitor.
As it stands, the government’s decision is to compensate the investor for property acquisition losses and business losses determined by the Compensation Commission. No proposal or decision has been made regarding the reversion of the property, and such a proposal has not been approved by the Cabinet.
In an effort to ensure transparency in government property disposal, a new Public Enterprises Reform Unit has been established, with criteria approved by the Cabinet. If the property is to be re-disposed, it will be done through a transparent tender process following these established guidelines.
It’s important to note that the government has not chosen to return the property to the previous investor through any other procedure and an additional related case is still pending in court.
In the spirit of providing a fair platform for all information, I kindly request that you give the same level of publicity to this accurate account as you did to the initial news in the newspaper.
News
Switzerland to vote on plan to cap population at 10 million
Can a country put a fixed limit on its population? That is the question Switzerland will be answering on Sunday when voters go the polls to decide on a proposal to cap their population at 10 million, a move that has exposed divisions about immigration in the Alpine nation.
The move is backed by the right-wing Swiss People’s Party, which describes it as a “sustainability initiative” aimed at easing pressure on housing, public services and the environment. However some voters see this as the party’s latest anti-immigration move.
Dubbing it a “chaos initiative”, the government, other political parties, business leaders and trade unions argue it will deprive hospitals and hotels of much needed staff, and damage hard-won relations with the European Union, leaving non-EU member Switzerland isolated in a very risky world.
Switzerland’s population has grown rapidly since 2002, when it stood at 7.3 million. Now it is 9.1 million, 27% of whom are Swiss residents who were born abroad.
Switzerland’s system of direct democracy means all major decisions are taken via the ballot box. Campaigners simply have to gather 100,000 signatures to ensure a nationwide vote.
Many voters are concerned by overcrowded trains, expensive apartments and rising health costs.
The latest opinion polls indicate this could be a very close vote.
They suggest voters are inching towards a no vote by a wafer thin margin, with 52% opposed – but polls remain divided, with 45% saying they are in favour of the proposal and a significant number of voters still undecided.
[BBC]
News
Court orders former Atamasthanadhipathi to provide blood sample for DNA testing
Anuradhapura Chief Magistrate, Siyapath Sasindu Wickramaratne, on Friday (12) ordered former Atamasthanadhipathi Pallegama Hemarathana Thera, who stands accused in a case involving the alleged serious sexual abuse of a minor girl, to provide a blood sample for DNA testing.
Accordingly, the court directed the suspect monk to appear before the Government Analyst’s Department on June 16 and provide a blood sample to the Government Analyst.
The order was issued after considering a further report submitted to court by the Nittambuwa Police.
Police informed the court that, pursuant to an earlier court order, certain case material had been forwarded to the Government Analyst on May 4, 2026, for DNA examination.
According to police, the material consisted of clothing allegedly stained with blood, which had been buried and concealed by the girl and later recovered during investigations.
Police further informed the court that the Government Analyst’s report had confirmed the presence of DNA evidence on the clothing.
Investigators told court that it was necessary to obtain a biological sample from the suspect monk in order to compare it with the DNA evidence recovered from the garments.
Police therefore requested an order compelling the suspect to provide a blood sample so that it could be determined whether the DNA evidence found on the girl’s clothing matched that of the suspect.
Having considered the submissions, the Magistrate ordered the suspect monk to provide the blood sample. The court also directed the Government Analyst to submit the report of the subsequent DNA examination.Pallegama Hemarathana Thera was previously remanded in connection with the case and was later released on stringent bail conditions.
News
High fuel prices spark outrage in transport sector, services halved
(Asiatimes) From this week, those using private buses in Sri Lanka may face severe transport disruption, as operators in the sector have decided to cut services by 50%. Among the reasons for the protest are mounting losses, rising fuel costs and the government’s failure to grant fare concessions. At a press conference held on 7 June, Gemunu Wijeratne, president of the Sri Lanka Private Bus Owners’ Association, explained that “the authorities have not responded positively to requests for a review of bus fares and support measures regarding fuel”.
Meanwhile, around 25% of private transport vehicles have already voluntarily ceased operations due to financial difficulties. According to the majority of owners, “the decision comes after ongoing disputes with the authorities regarding fare adjustments and financial relief, which have not been met to date, despite numerous requests made over a long period”. Commuters, especially in Colombo and the surrounding areas, risk facing delays and overcrowding as the reduced fleet operates under the new directive.
According to Wijeratne, “the association will continue to provide a reduced service until the government approves a revised bus fare, in line with the rise in fuel prices”. The alternative for the government, he continues, is to provide “a direct subsidy to operators, as recent fuel price increases have placed considerable pressure on daily transport operators”.
During peak hours such as the morning, school finishing times and the evening rush hour, only essential services will be guaranteed. During these times, instead of four journeys, only three will be made. Overall, operations will be reduced to around 50%. “The government,” the chairman clarifies, “must take responsibility for this situation, as the majority of students and employees use private buses for their daily commutes, particularly to and from Colombo to various parts of the country.”
Operators in the sector point out that although they requested a temporary exemption to guarantee bus services for one month, neither the National Transport Commission nor the Minister of Transport responded positively. The annual fare review is due to be implemented during the first week of July, adding that they have the “legal authority” to “apply the revised fares”. On 5 June, Wijeratne continues, “we held discussions that were unsuccessful. Diesel prices are expected to rise by the end of this month. In view of all this, we are proceeding with the fare review. This year’s fare adjustment will be difficult for the public to bear, as all costs have risen by around 20–25%”.
The president of the Association of Private Bus Owners concludes by noting that “we cannot continue to operate at a loss. For this reason, we have asked the authorities for some concessions on diesel within the regulatory framework, but these measures have not been implemented. We have therefore decided to step up our industrial action. This week we will intensify our action by changing timetables and limiting operations. The decision was taken – he notes – due to the lack of a positive response to the request for a fare review following the recent rise in fuel prices”.
Recently, the Ceylon Petroleum Corporation (CPC) increased fuel prices in accordance with its monthly pricing formula. Among the changes, the price of a litre of petrol was increased by 15 rupees, rendering the current tariff structures unsustainable. To grasp the scale of the emergency and understand the impact on the population, AsiaNews spoke to Akalanka Punchihewa, Senuli Amrasekara and Dunesh Mayadunne, commuters from various parts of the country who travel to the capital every day for work. “We struggle,” they confirm, “to get to work from Kandy, Kurunegala and Galle. The recent decision by private bus operators is a severe blow, as we have to spend several hours in long queues just to get on a bus. The service provided by buses run by the Sri Lanka Transport Board (SLTB) is inferior to that of private buses. And we cannot,” the commuters conclude, “afford to travel to work by car or motorbike, as we are unable to bear the increased cost of fuel.”
by Arundathie Abeysinghe
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