News
CoPF finds fault with Finance Ministry, AG for missed deadlines
“Proposed ‘Gambling Regulatory Authority’ law inadequate”
The Committee on Public Finance (CoPF) has said the proposed Gambling Regulatory Authority (GRA) law will not be adequate to meet the challenging task of overseeing the thriving casino industry.In spite of discussions held since Nov., 2022 when the CoPF formally called for the establishment of dedicated GRA, the relevant stakeholders hadn’t been able to reach a consensus, political sources told The Island.
When The Island sought a clarification from CoPF Chairman and SJB MP Dr. Harsha de Silva yesterday (10), he emphasised that the parliamentary committee on several occasions had urged the previous government (Wickremesinghe-Rajapaksa arrangement) and the incumbent National People’s Power (NPP) government to secure expert advice from jurisdictions that run well-regulated casinos, like Singapore, they weren’t interested.
The CoPF Chairman said that the issue at hand had attracted fresh attention in the wake of the opening of the country’s first integrated resort City of Dreams, an 800-room hotel that housed what the operators called a world class gaming area with license to operate for 20 years.
John Keells Holdings (JKH) has teamed up with Melco Resorts & Entertainment Limited (“Melco”) developer, owner and operator of integrated resort facilities in Asia and Europe. President Anura Kumara Dissanayake opened the facility on August 2 that received approval from the Finance Ministry during Ranil Wickremesinghe’s tenure as the President and Finance Minister. NPP and JVP leader Dissanayake currently holds the Finance portfolio.
The CoPF relentlessly pushed the Finance Ministry to finance the process by September 2023 and then by March 31, 2024.
The Wickremesinghe-Rajapaksa government granted approval for the JKH-Melco project though CoPF on Nov 24, 2022 declared that no new licenses would be issued until the formulation of GRA. Sources said that this announcement was made when CoPF considered two extraordinary gazette notifications on casinos but weren’t approved.
Sources alleged that the Finance Ministry pathetically failed to adhere to decisions taken by CoPF to ensure the speedy finalisation of the process to ensure the setting up of GRA in line with international standards. However, for want of the required commitment of the Finance Ministry, the CoPF couldn’t achieve what it wanted to.
CoPF has expressed serious concern over the issuance of what it called an unduly long 20-year casinos license to JKH-Melco operation.
At the moment, the lucrative casino industry here operates under an outdated and fragmented legal and
regulatory framework, primarily governed by: (i) Casino Business (Regulation) Act, No. 17 of 2010 and (ii) Betting and Gaming Levy Act, No. 40 of 1988.
Regardless of the enactment of the 2010 legislation, the corresponding regulations for licensing and designated operational areas hadn’t been issued for over a decade, those who represented CoPF have pointed out.
Bally’s, Bellagio, Casino Marina, and Stardust currently operate under provisional registrations, all of whom registered within a five-month window in 2013, sources said. According to sources regardless of promises to increase revenue by taxing casinos, Sri Lanka lacked the required tools to monitor the industry’s financial operations, including online platforms.
According to the CoPF and Finance Ministry, there had been undue delays on the part of the Attorney General in examining the GRA Bill. Sources pointed out that the AG’s Department had taken as many as 15 months to review the Bill and all stakeholders needed to discuss ways and means of avoiding such delays in finalising critically important Bills.
by Shamindra Ferdinando ✍️
News
PSTA worse than PTA: FSP
The Frontline Socialist Party (FSP) yesterday accused the government of seeking to use the proposed Protection of the State from Terrorism Act (PSTA) to suppress popular political activity, claiming that some of its provisions were more repressive than those of the Prevention of Terrorism Act (PTA).
FSP Education Secretary Pubudu Jayagoda told a media briefing, in Nugegoda, that the definition of terrorism in the Bill was so broad that it could be used to label almost any form of popular political activity as terrorism.
He said the Bill’s approach to defining terrorism was based largely on attempts to compel a government, or an international organisation, to do, or refrain from doing something, rather than on internationally recognised criteria, such as killings, causing serious bodily harm, kidnapping or acts intended to spread terror among the public.
Jayagoda also alleged that the Bill transferred substantial powers from the judiciary to the executive, while extending powers of arrest, investigation and detention to the armed forces, in addition to the police.
He claimed that the government had sought to portray the Bill as a replacement for the PTA while retaining or introducing provisions that could facilitate political victimisation and repression.
The FSP also questioned the government’s decision to proceed with the Bill, despite having previously sought public views on an earlier draft.
Jayagoda said a draft had been published earlier this year, with the period for public submissions ending on February 28, but the Bill subsequently gazetted was essentially the same draft with some provisions rearranged.
Jayagoda also referred to a letter reportedly sent by Attorney-at-Law Saliya Peiris, a member of a Committee, chaired by President’s Counsel Rienzie Arsecularatne, that had been appointed to draft the legislation. He said Peiris had stated, in the October 06 letter, that changes had been made to the draft prepared by the Committee.
“This means that even the Committee, appointed to prepare the Bill, was a deception,” Jayagoda alleged.
He said that the PSTA was fundamentally similar to the Anti-Terrorism Bill introduced by the previous government, in 2023, which the National People’s Power (NPP) opposed and challenged in court.
“If the NPP opposed that Bill then and is now bringing the same legislation before Parliament, the government must explain its position,” he said.
Jayagoda called on NPP MPs to oppose the PSTA in Parliament and urged trade unions and other groups to build a broad public movement against the legislation.
He challenged the government to an open debate on the Bill.
News
Shiranthi R remanded until 13 Oct.
Former First Lady Shiranthi Rajapaksa was yesterday remanded until 13 October after being produced before the Colombo Magistrate’s Court following her arrest by the Commission to Investigate Allegations of Bribery or Corruption (CIABOC).
Shiranthi, wife of former President Mahinda Rajapaksa, was arrested at her residence on Poorwarama Road, Kirulapone, after CIABOC officers recorded a statement from her for nearly two hours.
According to the CIABOC, the arrest was made over allegations that Rs. 10 million obtained from the National Savings Bank through the Siriliya Saviya organisation was misappropriated.
The money was allegedly obtained to provide a Computed Tomography (CT) scanner to the children’s hospital. Investigators allege that the scanner was not provided and that the funds were instead unlawfully used.
CIABOC is investigating alleged offences under the Public Property Act and corruption-related provisions in connection with the transaction and other financial activities involving Siriliya Saviya, which was headed by Rajapaksa.
Rajapaksa returned to Sri Lanka on Monday night on a flight from Malaysia after travelling overseas for medical treatment. She left for Singapore on 16 September after being admitted to a private hospital in Colombo on 15 September following an illness.
She had been due to appear before the Financial Crimes Investigation Division (FCID) on 13 October in connection with its investigation into the financial affairs of Siriliya Saviya.
Meanwhile, her lawyers filed an anticipatory bail application before the Maligakanda Magistrate’s Court on Monday, seeking an order preventing her arrest in connection with the FCID investigation.
News
Former NSB Chairman Kariyawasam granted bail
Former National Savings Bank (NSB) Chairman Pradeep Kariyawasam was yesterday granted bail by the Colombo Magistrate’s Court following his arrest by the Commission to Investigate Allegations of Bribery or Corruption (CIABOC).
Kariyawasam, husband of former Chief Justice Shirani Bandaranayake, was arrested in connection with the Bribery Commission’s investigation into the ‘Siriliya Saviya’ account linked to former First Lady Shiranthi Rajapaksa.
The investigation concerns financial activities involving the Siriliya Saviya initiative, which was headed by Rajapaksa, wife of former President Mahinda Rajapaksa.
CIABOC is continuing investigations into the alleged financial irregularities relating to the account.
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