News
TISL challenges National Audit (Amendment) Bill
Transparency International Sri Lanka (TISL) filed legal action last week (22), in the Supreme Court challenging the National Audit (Amendment) Bill which was published in the gazette on 23rd June 2025. The Bill is to amend the National Audit Act No. 19 of 2018. The petition has been filed in public interest.
TISL has, in a media statement, said that the National Audit Act is one of the key legislative tools to uphold financial accountability and combat corruption within the public sector. It empowers the Auditor-General to audit public institutions and hold officials accountable for misuse or mismanagement of public funds. This is done particularly through its provisions on imposing surcharges as penalties. Surcharge is designed to ensure that public officers are accountable for losses or mismanagement of public resources due to fraud, negligence, misappropriation, or corruption. In the proposed amendment, there are several provisions that weaken this framework and risk undermining the independence, authority, and effectiveness of the public auditing process.
One of the most concerning features of the Bill is the proposed removal of “negligence” as a basis for surcharge under Sections 19 and 23 of the principal enactment. This lowers the standard of responsibility for public officials, potentially shielding them from being held liable even where losses to the state are caused by careless or reckless duty of care. This contradicts the public trust doctrine and weakens constitutional safeguards for citizens against mismanagement of public funds.
The bill introduces a “Surcharge Review Committee” to make decisions on recommendations on imposing a surcharge made by the Auditor-General. The power to make final decisions on surcharging and the amounts to be recovered is vested in the “Surcharge Review Committee” appointed by the President. The Petition flags concerns over the absence of a mechanism to ensure that the decisions taken by the Surcharge Review Committee are open, fair, and accountable.
TISL also raises concerns over the lack of clear timelines and sanctions for non-compliance with the complaint mechanism on audit findings to law enforcement. The proposed amendments allow the Auditor-General to notify, where reasonable grounds to believe that any fraud, corruption or misappropriation in any transaction has been committed, the Chief Accounting Officer in terms of the auditee entity or Secretary to the Cabinet of Ministers when such allegation is against the Chief Accounting Officer, to act “immediately”, thereby placing the obligation of making a complaint to law enforcement. However, absence of defined timeframes or penalties for non-compliance opens this process to arbitrary delay, inaction, or political influence – seriously weakening enforcement.
Sri Lanka’s own Governance Action Plan and the National Anti-Corruption Action Plan 2025–2029, along with the IMF Governance Diagnostic Assessment, call for stronger public audit frameworks and robust enforcement. However, the Bill’s proposed amendments inhibit these national and international commitments. Instead of strengthening institutional oversight, it dilutes accountability and compromises timely legal action on audit findings.
At a time when Sri Lanka is attempting to restore public confidence in state institutions and meet its anti-corruption reform pledges, it is imperative that the Auditor-General’s independence and enforcement powers are preserved – not curtailed.
TISL’s petition urges the Supreme Court to determine that the relevant clauses of the Bill are inconsistent with key provisions of the Constitution, including the sovereignty of the people, the right to equal protection of the law, and the proper exercise of public power.
News
INS Airavat makes port call in Colombo
The Indian Naval Ship (INS) Airavat arrived at the Port of Colombo for Operational Turnaround on 01 Jun 26. The visiting ship was welcomed by the Sri Lanka Navy (SLN) in compliance with time-noured naval traditions.
INS Airavat is a Landing Ship Tank, commanded by Commander IP Patil.
During their stay in the island, the ship’s crew is scheduled to take part in a series of professionally enriching events and camaraderie-building programmes organised by the Sri Lanka Navy.
The Indian naval personnel will also tour several historic and prominent tourist attractions across the country before the ship concludes her deployment.
News
BASL asks govt. to abandon plan to raise retirement ages of CA and SC judges
… tells Prez such arbitrary change neither necessary nor desirable
The Bar Association of Sri Lanka (BASL) has urged President Anura Kumara Dissanayake to abandon the controversial plan to increase the retirement age of the judiciary, including the Court of Appeal and the Supreme Court.
In a statement issued by the BASL President Rajeev Amarasuriya and its Secretary Nalin de Silva, the BASL pointed out that the proposed increase of the retirement age of the judiciary would undermine the independence, integrity, dignity, and public confidence in the Judiciary, which is essential for the maintenance of the Rule of Law and democratic governance in Sri Lanka.
The text of the BASL statement: “The Bar Association of Sri Lanka (hereinafter referred to as “BASL”) notes with grave concern reports in the public domain that the Government is considering the introduction of an amendment to the Constitution to increase the age of retirement of Judges of the Court of Appeal and the Supreme Court.
It is the considered view of the BASL that the age of retirement of the judges of the Court of Appeal and the Supreme Court which has stood at 63 years and 65 years respectively from the promulgation of the 1978 Constitution, should not be changed arbitrarily and that such a change is neither necessary nor desirable.
To do so will result in the loss of public confidence in the integrity of the legal system and of the Government’s commitment to preserve and protect the rule of law and the independence of the judiciary. Members of the public are likely to question the motives of the Government in bringing in a Constitutional amendment solely for this purpose.
Your Excellency is no doubt aware that the cadre of the Judges of the Court of Appeal was increased from 12 to 20 Judges (including the President of the Court of Appeal) and that of the Supreme Court from 11 to 17 Judges (including the Chief Justice) by the 20th Amendment to the constitution certified on 29th of October 2020. With such enhancement, workwise, there cannot be a real requirement to extend the retirement ages of these judges.
Your Excellency is aware that altering the retirement age of judges of the apex courts would have to be done through a Constitutional amendment. For many years Sri Lanka’s Constitution has been subject to ad hoc amendments, sometimes in order to cater to the political needs of the government in power and often contrary to the interests of the rule of law, the independence of the judiciary and the judiciary.
Extending the retirement age of the sitting Judges of these Courts at this point of time is likely to be viewed by the public as a blatant attempt to interfere with the judiciary. We believe that to go ahead with such an ad hoc move will also be an affront to the Honourable Judges of those courts.
If the Government goes ahead with such a move it will set a dangerous precedent for future Governments too to introduce ad hoc amendments to the Constitution in respect of the functions of the Judiciary.
The independence of the Judiciary and the public confidence reposed in it, are indispensable pillars of the Rule of Law and the democratic framework of our Republic. In that regard, it is of paramount importance that the Judiciary must not only remain independent in fact, but must also be seen by the public to be wholly independent, impartial, and free from even the slightest perception of influence, favour, accommodation, or impropriety.
The Bar Association of Sri Lanka is therefore constrained, in the discharge of its duty to uphold and safeguard the Rule of Law and the independence of the Judiciary, to respectfully express its serious concern regarding any such proposed amendment, which is neither in the interests of the Judiciary and nor of the people.
In the circumstances, the BASL respectfully urges Your Excellency not to proceed with any proposed constitutional amendment seeking to increase the retirement age of the members of the Judiciary including Judges of the Court of Appeal and the Supreme Court.
We remain confident that Your Excellency will give due consideration to the importance of preserving and protecting the independence, integrity, dignity, and public confidence in the Judiciary, which is essential to the maintenance of the Rule of Law and democratic governance in Sri Lanka.”
Govt. declines to respond
A member of the Cabinet yesterday declined to comment on the BASL’s letter to President Anura Kumara Dissanayake. The Minister said that he wouldn’t comment for the time being.
News
New US tariffs proposed on 60 countries, including Sri Lanka
12.5% additional duties on goods imported from Colombo
The US has proposed additional duties of 10% or 12.5% on imports from 60 economies, including Sri Lanka, over their alleged failure to curb trade in goods made with forced labour.
The proposal made by US Trade Representative’s (USTR) office in terms of Section 301 unfair trade practices investigation to be released, news agencies reported, pointing out that the Trump administration was seeking to rebuild its emergency tariffs, which were struck down by a US Supreme Court decision in February.
The USTR said it determined that it would impose 10% duties related to the forced labour investigation on imports from Canada, Ecuador, the European Union, Indonesia, Mexico, Pakistan, Argentina, Bangladesh, Cambodia, El Salvador, Guatemala, Indonesia, Malaysia, Taiwan and Britain.
The trade agency said it would impose additional duties of 12.5% on the remaining 45 countries that were investigated.
“The failure of our most important trading partners to address the importation of goods made with forced labour is unacceptable,” US Trade Representative Jamieson Greer said in a statement. “This creates a dynamic where American workers are forced to compete globally on an unlevel playing field.”
According to the trade agency, the USTR found that Sri Lanka has failed to impose and effectively enforce a forced labour import prohibition.
The USTR noted that the results of its investigation indicate that the acts, policies and practices of Sri Lanka related to the failure to impose and effectively enforce a forced labour import prohibition are unreasonable and burden or restrict US commerce.
Accordingly, it has proposed to impose 12.5% additional duties on goods imported from Sri Lanka.
The USTR said it also was proposing a textile mechanism that would allow for a certain volume of apparel and textile imports to enter the US at a reduced tariff rate, though the duties and volumes were not disclosed.
The announcement comes ahead of the July 24 expiration of a 10% temporary tariff imposed by the Trump administration on February 20, the day the Supreme Court struck down US President Donald Trump’s tariffs under the International Emergency Economic Powers Act.
On Monday, the USTR proposed a 25% duty on many Brazilian goods as a result of a Section 301 investigation into the country’s digital trade practices and preferential tariffs. The trade agency is also expected to soon unveil the findings of another major Section 301 probe into the buildup of excess industrial capacity in 16 trading partners, including China.
In the forced labour findings, the USTR said it would exempt from the tariffs a number of products, including energy, rare earths and certain other metals, beef, coffee, certain fruits and vegetables, pharmaceuticals, organic chemicals and aircraft parts.
The USTR said it would accept public comments on the proposed tariffs and other remedies through July 6, with a public hearing scheduled for July 7.
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