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Lawyers for suspect write to AG

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‘Undervalued goods’ in foreign currency transfer case:

Counsel appearing for the first suspect in the foreign currency transfer case have urged the Attorney General to direct the FCID to investigate how police alleged, that goods, for which funds had been remitted by banks, had not been imported into Sri Lanka, in the context of the FCID subsequently reporting to Courts in paragraph 9 of their report, dated 20th August 2026, that, in fact, goods had come to Sri Lanka and cleared by Sri Lanka Customs!

M.M. Zuhair PC with Priyantha Nawana PC for the first suspect Jiffry Mohamed of A Y Investments Impex Ltd., of Bankshall Street, Colombo 11, in their letter to AG have raised the question as to why the police are not investigating extensively, the assertion made to Court by the police themselves in para 9, that goods had been undervalued and cleared by customs at the Sri Lanka end.

“What remains to be done is for the police to do a comprehensive and diligent investigation into the goods received and cleared by the importers. The police must, furthermore, investigate the complainant in this case, namely the Sri Lanka Customs, as to how the complainant facilitated the importers in clearing the goods, which the police allege were undervalued! They must also investigate whether the goods were cleared by Customs by accepting ‘undervaluing’ and accepting the reduced Customs duty, Value Added Tax (VAT) and other taxes, such as Social Security Contribution Levy (SSCL), and whether the Customs deprived the Inland Revenue of its legitimate dues that should have eventually benefitted the country and its citizens, the letter to the AG has pointed out.

“The Special Import License and Payment Regulations No 1 of 2011” made under the Import and Exports (Control) Act No 1 of 1969 facilitated the procedure for Advance Payments, enabling the licensed banks to make telegraphic transfers to overseas exporters in due compliance with the said Regulations. We submit that no offence or irregularity was committed by anyone facilitating the transfer of funds overseas to foreign companies, which have exported the goods direct to the importers who paid for the goods.

“It is submitted that all transactions were done through licensed commercial banks, all of which are subject to the strict regulation, superintendence and control by the Central Bank of Sri Lanka where due diligence had always been exercised, as commercial banks were obliged to do under the Special Import and Payment Regulations, enacted in 2011.

“Police could not have come to a definitive accusation against anyone without any investigation on the source and the legitimacy of the multiple advance payments, which are lawful under the 2011 Advance Payment Regulations.

“Police have not conducted any meaningful investigation, whatsoever, either through due process or based on the documents available in the banks:

(a) in respect of the source of the monies received and/or deposited into the suspect’s above-named company or his 34 associate companies from the importers’ brokers, whose details have been furnished by our client to the investigators, or

(b) in respect of the overseas exporters who received the funds transmitted through approved Sri Lankan banks after exercising due diligence conducted by each of the 13 Sri Lankan approved banks, including State Banks.

“Without such vital investigations (A) of the importers who deposited such large sums of money as advance payments in accordance with the Advance Payment Regulation No 1 of 2011 as well as (B) of the goods exported to Sri Lanka in terms of the said 2011 regulations by the overseas exporters, the allegation against the suspect and his associate companies of money laundering is absolutely untenable and unacceptable, Counsel for the suspect have said.

The first suspect’s lawyers have requested the AG to advise and guide the police to do a “just, fair and complete investigation” and that the suspect, who is in remand for the third month, could do better to assist the police in the investigation if he is enlarged on bail.



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Govt. confident of 2/3 majority despite NPP split speculation

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Anura / Harini

By Shamindra Ferdinando

The ruling NPP yesterday (21) dismissed claims of a widening rift, within the government, over the proposed 22nd Amendment. Asked whether the NPP was concerned over a section of the Opposition alleging Prime Minister Dr. Harini Amarasuriya and two dozen MPs taking a view contrary to that of the party in this regard, authoritative party sources said some persons were propagating speculation for their own interest.

Declaring that there was absolutely no issue regarding the controversial Amendment, sources emphasised once it was tabled in Parliament, it would be passed with 2/3 majority.

Sources dismissed claims that out of its 159-member parliamentary group a section of NPPers was opposed to the government move. According to an influential Opposition activist, there are 57 JVPers and 66 NPPers in the government group and the rest contested the last parliamentary polls, having aligned with the JVP.

Ministerial sources told The Island that the government was confident of going ahead with the 22nd Amendment and Judicature (Amendment) Bills. Sources said that the NPP was not bothered about the Opposition protests in and outside Parliament.

Speaker Dr. Jagath Wickremaratne is expected to disclose the confidential ruling that he received from the Supreme Court in respect of more than 65 petitions for and against the 22nd Amendment and Judicial Amendment Bills. The enactment of the 22nd Amendment would pave the way for extending the retirement age of Supreme Court judges, from 65 to 67 years, and Court of Appeal judges, from 63 to 65 years.

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Justice Corea appointed Acting President of the Court of Appeal

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Court of Appeal Judge M. Sri Mevan Anthony Edirimannasuriya Corea receives his letter of appointment

President Anura Kumara Dissanayake has appointed Court of Appeal Judge Mayadunna Sri Mevan Anthony Edirimannasuriya Corea as the Acting President of the Court of Appeal.

The appointment has been made as President’s Counsel Nalin Rohantha Abeysuriya, who currently serves as President of the Court of Appeal, will be overseas until the 24th.

Accordingly Justice Mayadunna Corea was sworn in as Acting President of the Court of Appeal before President Anura Kumara Dissanayake at the Presidential secretariat last morning (21).

Secretary to the President Dr Nandika Sanath Kumanayake was also present at the occasion.

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Protest against setting up of cement factory in highly populated area near BIA

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The cement factory premises located in close proximity to a school and the lagoon

… school alleges deception

What began quietly as a single-storey tourist hotel, on the edge of Katunayake-Seeduwa has, five years later, morphed into a looming five-storey cement factory and with it, a storm of fear, anger and unanswered questions.

At a media briefing held on 19 September at St. Thomas International School, Seeduwa, the community finally found its voice. The gathering included priests, school principals, environmental defenders, and parents whose children study within a few hundred metres of the site.

The briefing was led by Rev. Fr. Jude Chrishantha Fernando, Director of National and Archdiocesan Catholic Social Communications, Rev. Fr. Nilantha Heshan, Director of the Archdiocesan Sethsarana Institute, Dinusha Nanayakkara, Convener of the Archdiocesan Committee for the Protection of Muthurajawela, and Attorney-at-Law Ms. Isuri Rodrigo.

Their message was clear: This is not a campaign against development.

“We Are Not Against Cement. We Are Against Deception.”

“Cement is an essential raw material for the country. We have no opposition to any such factory or production plant,” they told the media. “But what we cannot agree to is a project of this magnitude, in this location, without any proper environmental assessment.”

The speakers alleged a textbook case of deception, obtaining approvals for a low-impact tourist hotel, in one of the most densely populated educational zones in the Katunayake-Seeduwa Municipal Council area, and then transforming it into a heavy industrial plant.

“In an area where thousands of schoolchildren study, to show one thing on paper and build another is a highly fraudulent procedure. It is clear that the real environmental damage and the truth have been hidden from the people,” they said.

With the sea and lagoon winds that sweep across Seeduwa, experts fear these fine particles will not stay confined to the factory walls. They will drift across classrooms, homes, and the Katunayake Free Trade Zone, where thousands of workers, representing all 25 districts of Sri Lanka, work every day.

“The risk is not local. It is national. We are talking about a future generation of children with respiratory illnesses, and workers developing chronic breathing disorders,” one speaker warned.

Rev. Fr. Jude Chrishantha Fernando, Director of National & Archdiocesan Catholic Social Communications, responding to journalists

Then there is the proximity that defies logic, just 500 metres from the Bandaranaike International Airport.

The panel presented a scientific concern that has aviation experts worried: a significant drop in air quality around the airport and its runway, and the severe risk to highly sensitive aircraft engines when they ingest air mixed with cement dust. What is at stake, they argued, is not just health but the economy itself.

“When you weigh it deeply, the economic contribution of an international airport is far higher than that of a cement factory. If international airlines start to avoid Katunayake due to safety and air quality concerns, it will be a fatal blow to our country’s economy,” they emphasised.

A few minutes away lies another victim the Negombo Lagoon and the Muthurajawela wetlands, Sri Lanka’s largest and most sensitive coastal ecosystem.

The panel warned that cement dust settling on the mangrove system could degrade water quality, disrupt the delicate salinity balance, and directly interfere with fish breeding grounds. For the fishing communities of Negombo, whose lives depend on the lagoon, this is an existential threat.

“The lagoon is a nursery. If its water quality drops, fish will not breed. If fish do not breed, an entire fishing community collapses,” they said.

The speakers alleged that while the developers claim to have approvals from various state institutions, many of the mandatory clearances, particularly comprehensive Environmental Impact Assessments and feasibility reports, have not been obtained.

They stressed they are not calling for an end to investment, but for it to be done right.

“We have no objection to this factory being started in another suitable location where it will not cause these environmental impacts, based on proper feasibility and assessment reports. Stop this construction here and move it,” was the unanimous demand.

The appeal has now been directed again to the President, the government, and all responsible state institutions and officials.

As the briefing ended, one image lingered — a school playground, a lagoon, and a towering cement structure rising between them. It is a scary picture for the people of Seeduwa; they asks a simple question: What price are we willing to pay for development that doesn’t breathe?

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