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VFS Global again offers to cooperate with govt. following exposure by NAO

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…withheld over USD 1.4 mn belonging to SL, funds routed through foreign banks

Outsourcing and technology specialist VFS Global, investigated by the National Audit Office (NAO) over the controversial online visa issuance scheme, yesterday (29) expressed its readiness to cooperate with the Auditor General, or any other relevant authority.

In a statement issued through a PR agency, VFS Global claimed that though they, on 07 November, 2024, offered to provide ‘full support and any information which may be required’ to the Auditor General, no response had been received. According to the statement, VFS Global made the offer after hearing of the NAO move to conduct an audit. However, VFS Global remains committed to extend its support to the Auditor General, the company said.

President Ranil Wickremesinghe’s government entered into a controversial outsourcing agreement with GBS Technology Services & IVS Global FZCO (IVS-GBS), V F Worldwide Holdings Ltd (VFS Global) on 21 December, 2023, for provision of e-visa and other related services. On behalf of the government, the Department of Immigration and Emigration entered into the agreement.

The VFS statement claimed as per the terms of this agreement VFS Global had a limited role as technical partner as the IVS-GBS was the prime contractor.

Sources familiar with the issues relating to the agreement, pointed out that the then Controller General of Immigration and Emigration, Harsha Illukpitiya, on 23 September, 2024, was given two years’ imprisonment for contempt of court, following his failure to comply with an interim order related to the issuance of electronic visas.

The Supreme Court bench that gave the order consisted of Justices Yasantha Kodagoda, Janak de Silva, and Arjuna Obeyesekere.

The NAO audit report, dated 03 October, 2025, revealed GBS Technology Services and IVS Global-FZCO, operating under VFS VF Worldwide Holdings Ltd., collected both the 2.5% Social Security Contribution Levy (SSCL) and 18% Value Added Tax (VAT) from visa applicants, between April and August 2024, but conveniently failed to remit these taxes, causing a loss of $ 1,418,360 to the Government ($ 172,970 in SSCL and $ 1,245,390 in VAT).

The audit also revealed the company earned an additional $ 1.8 million from visa-fee-waiver countries, where visitors were exempt from visa fees but were still charged a service fee.

The audit exposed major financial and procedural irregularities, including tax evasion, foreign remittance violations, and breaches of procurement law.

NAO also disclosed that visa fee revenues were routed directly to foreign bank accounts, managed by the private service providers, instead of being deposited into official Sri Lankan government accounts. This practice prevented the govermentt from independently verifying the actual income generated, creating, what the report described as, “a significant accountability gap.”

Top Opposition spokesman Prof. G. L. Peiris repeatedly pointed out that the government entered into a new agreement at the expense of arrangements implemented by Mobitel Private Ltd.

NAO highlighted that the proposals for the new agreement had been submitted on 08 September, 2023, and the Cabinet of Ministers appointed a committee to evaluate it on 11 September, 2023, and approval was granted on 11 December, 2023, and finalised on 21 December, 2023 (SF)



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Mercury fears over coal imports: CEJ urges urgent standards, health probe

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Environmentalists have raised fresh concerns over possible mercury contamination linked to coal used at the Norochcholai coal power plant, warning that Sri Lanka still lacks binding standards on mercury content in imported coal despite mounting health risks in nearby communities.

Chairperson of the Centre for Environmental Justice (CEJ), Environmental Scientist Hemantha Withanage, said recent coal consignments suspected to be of inferior quality could contain elevated mercury levels, posing a threat to both ecosystems and human health.

“International studies show that mercury content in coal can vary significantly. For example, research on South African coal indicates a range between 0.01 and 0.49 ppm. However, Sri Lanka has still not established a maximum permissible mercury level for imported coal,” Withanage told The Island.

He pointed out that the environmental protection licence issued for the Norochcholai Coal Power Plant allows mercury emissions of up to 0.01 mg/Nm³, but stressed that regulating emissions alone is insufficient without controlling mercury content at the source.

“With no standard for mercury in imported coal, there is a serious regulatory gap. This raises legitimate concerns that recent shipments may contain higher mercury concentrations,” he said.

Withanage cited a 2018 CEJ study conducted in the Kalpitiya peninsula, near Puttalam, which found alarming levels of mercury exposure among women of childbearing age. According to the study, 28 out of 36 women—approximately 77%—had mercury levels in hair samples exceeding the internationally accepted safety threshold of 1 ppm.

“The most disturbing finding was a recorded level of 15.584 ppm in one individual. These women were regular consumers of fish from the Puttalam lagoon, suggesting a bioaccumulation pathway,” he explained.

The CEJ believes that mercury released during coal combustion at Norochcholai may enter the marine environment, eventually accumulating in fish consumed by local communities.

“Mercury is a potent neurotoxin. When released into the environment, it can transform into methylmercury and enter the food chain, particularly affecting coastal and fishing communities,” Withanage warned.

He further alleged that despite formally notifying the Central Environmental Authority and the North Western Provincial Environmental Authority at the time, there had been insufficient follow-up action.

He added:”We raised these findings years ago with the relevant authorities, but there has been little to no meaningful response. This is unacceptable given the potential public health implications.”

Environmentalists are now calling for immediate steps, including the establishment of national standards for mercury content in imported coal, independent testing of all coal consignments, and a comprehensive health assessment of communities living in proximity to the power plant.

They also stress the need for continuous monitoring of mercury levels in air emissions, marine ecosystems, and food sources such as fish.

“With growing evidence of contamination, authorities must act decisively. Public health cannot be compromised,” Withanage added.

By Ifham Nizam

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Heat Index at Caution Level in the Western, Sabaragamuwa, Southern, Eastern, North-western, Northern and North-central provinces and in Monaragala district.

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Warm Weather Advisory
Issued by the Natural Hazards Early Warning Centre
Issued at 3.30 p.m. on 02 April 2026, valid for 03 April 2026.

The Heat index, the temperature felt on human body is likely to increase up to ‘Caution level’ at some places in the Western, Sabaragamuwa, Southern, Eastern, North-western, Northern and North-central provinces and in Monaragala district.

The Heat Index Forecast is calculated by using relative humidity and maximum temperature and this is the condition that is felt on your body. This is not the forecast of maximum temperature. It is generated by the Department of Meteorology for the next day period and prepared by using global numerical weather prediction model data.


Effect of the heat index on the human body is mentioned in the above table and it is prepared on the advice of the Ministry of Health and Indigenous Medical Services.

ACTION REQUIRED

Job sites: Stay hydrated and takes breaks in the shade as often as possible.

Indoors: Check up on the elderly and the sick.

Vehicles: Never leave children unattended.

Outdoors: Limit strenuous outdoor activities, find shade and stay hydrated.

Dress: Wear lightweight and white or light-colored clothing.

Note:
In addition, please refer to advisories issued by the Disaster Preparedness & Response Division, Ministry of Health in this regard as well. For further clarifications please contact 011-7446491.

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Govt. toys with the idea of moving public sector work online

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Government authorities are exploring the possibility of shifting public sector work online on April 16 and 17, to maintain essential services while managing available fuel and energy amid disruptions linked to West Asia conflagration.

The proposal was discussed at the third meeting of the Cabinet-appointed committee on ensuring continuity of public services, chaired by Prime Minister Dr Harini Amarasuriya via a virtual platform, according to the President’s Media Division.

Officials highlighted that the Ministry of Health and Mass Media had reduced diesel consumption by 42% by March 31, reflecting wider government efforts to reduce fuel use across institutions. Awareness programmes on energy management at schools are scheduled for April 7 and 9, while universities are already operating online where feasible.

The Ministry of Public Administration confirmed that examinations, including the Grama Niladhari entrance test, have continued as planned. Key ministries, including Transport, Digital Economy and Justice, are maintaining operations by deploying essential staff and utilising online systems.

The committee also discussed launching a public awareness campaign to curb water wastage and promote alternative water sources, to be jointly conducted by the National Water Supply

and Drainage Board and the ‘Clean Sri Lanka’ initiative.

Guidelines for conducting official duties online have been prepared by the Ministry of Digital Economy, with a circular expected by April 20 following consultations with the Ministry of Public Administration. Plans were also reviewed to monitor daily energy consumption, fuel reserves, and public service attendance through a digital dashboard.The committee is scheduled to reconvene on April 8.

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