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Shocking lapses in revenue collection revealed

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COPA concerned over Rs. 7.5 bn spent on upgrading integrated computer system 

By Shamindra Ferdinando 

Parliamentary watchdog-COPA (Committee on Public Accounts), in its latest report has highlighted significant loss of revenue and misuse of public money caused by the failure on the part of the Department of Inland Revenue, Sri Lanka Customs and Department of Excise to streamline their operations.  

COPA Chairman Prof. Tissa Vitarana presented his first report to Parliament on July 20. The COPA consists of 22 members representing both the government and the Opposition. The COPA report dealt with the Auditor General’s reports on Department of Inland Revenue, Sri Lanka Customs and Department of Excise. 

Pointing out that as at July 31, 2020, there had been 281 vacancies (10 percent of the approved cadre), the all-party committee asserted that failure to fill 183 senior level vacancies in the Inland Revenue Department would hinder the smooth functioning of the institution.  

COPA has questioned the failure on the part of Sri Lanka Customs to recruit a suitable person to the post of Legal Officer. The vacancy hadn’t been filled in spite of the Management Services Department approving the creation of the post, it has pointed out. 

COPA has observed that the Excise Department, too, in spite of receiving approval from the Management Services Department on June 30, 2020 failed to recruit a legal officer though it being an essential post. There had been 35 senior and 66 tertiary level positions among altogether 292 vacancies in what the watchdog committee called a vital part in overall revenue collection mechanism. 

Asserting that the three above-mentioned institutions were responsible for the collection of 90 percent of government revenue, COPA alleged that the continuing failure to streamline operations contributed to corruption. It faulted these institutions for allowing what it called private parties to misappropriate public funds.

Former COPA Chairman and incumbent member lawmaker Lasantha Alagiyawanna yesterday (28) said that tangible measures were required to ensure proper collection of revenue. Acknowledging irregularities had undermined the whole process, the SLFPer explained how those responsible for revenue collection manipulated the system for their benefit at the expense of the national economy.

State Minister of Co-operative Services, Marketing Development and Consumer Protection Alagiyawanna said that the continuing registration of vehicles imported for a particular purpose as dual purpose vehicles was nothing but a crime. Lawmaker Alagiyawanna said that in spite of interventions made by parliamentary watchdogs, COPA, COPE (Committee on Public Enterprises) and COPF (Committee on Public Finance) the situation remained quite unsatisfactory.

Responding to another query, lawmaker Alagiyawanna said that relevant ministers should take remedial measures.

COPE member Dr. Harsha de Silva yesterday said that the government revenue was now at a paltry 9.2 percent of the GDP (Gross Domestic Production). One-time non-cabinet minister de Silva said that perhaps it was one of the lowest in the world. 

Vitarana’s outfit has recommended urgent amendments to Acts pertaining to the Inland Revenue Department as well as Sri Lanka Customs to facilitate the revenue collection process. As regards Sri Lanka Customs and Motor Traffic Department, COPA underscored the urgent need to amend relevant Acts as existing laws seriously hindered revenue collection procedures. COPA also called for modification of existing laws pertaining to the Excise Department to enable the institution to achieve its primary objectives.

Pointing out that a vast sum of money had been spent on developing integrated computer systems, COPA underscored revenue collection mechanisms that couldn’t be perfected without the availability of such methods. COPA called for the development of what it called a National Coordination Plan meant for strengthening of the revenue collection process.

COPA revealed that a staggering Rs 4 bn had been spent so far on modifying/updating the system at the Inland Revenue and a further Rs 3.5 bn was required to complete the work. The 22-member COPA has expressed serious concern over the large amount of funding made available to still unfinished project.

 

 

 



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Japan-funded anti-corruption project launched again

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Anura

‘NPP taking credit for what was started during previous govt.’

The National Anti-Corruption Action Plan (NACAP) 2025-2029, ceremonially launched by President Anura Kumara Dissanayake on 09 April, 2025, had actually got underway during former President Ranil Wickremesinghe’s tenure, sources said.

According to a joint media release issued by the interested parties, following the launch, also attended by Chief Justice Murdu Fernando, PC, the Commission to Investigate Allegations of Bribery and Corruption (CIABOC)-led project received the financial backing of Japan and the technical expertise of the UNDP.

In response to The Island query regarding the recipients of the funding, exact amounts provided to them and the duration of the project, sources said that the 18-month-long project, implemented by the UNDP, had been launched in March 2024. According to sources, the project was launched with Yen 137 mn made available through the Japanese Supplementary Budget (approximately 931,000 USD) six months before the last presidential election.

New Japanese Ambassador in Colombo Akio Isomata, and UNDP Resident Representative Ms. Azusa Kubota, were among those present at the 09 April launch.

Isomata’s predecessor Mizukoshi Hideaki finalised the agreement with Ms Kubota on 12 February, 2024, to pave the way for the new project, titled ‘The Project for Promoting Economic Governance through Anti-corruption Policy Support.’

Assistance from Japan and UNDP was in line with their efforts to enable Sri Lanka struggling to resolve the economic crisis.

The Japanese Embassy said on 12 February, 2024, that the project sought to (1) strengthen legal and policy frameworks; (2) improve coordination among key institutions combating financial and tax crimes; and (3) enhance strategic institutional and individual skills and capacities around combating anti-corruption through strategic action.

By Shamindra Ferdinando

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Ranil makes statement to CIABOC

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Former President Ranil Wickremesinghe leaving the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) yesterday after making a statement related to ongoing investigation into former State Minister Chamara Sampath Dassanayake. Dassanayake is in remand custody pending investigations into an alleged misappropriation of funds during his tenure as the Uva Province Chief Minister.

(Pic by Nishan S. Priyantha)

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Nearly 500 kilos of heroin destroyed under court supervision

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Sujith Gunawardena, Director, INSEE Ecocycle and Acting Inspector General of Police (IGP) in Sri Lanka, Priyantha Weerasooriya.

The police and court officials yesterday (28) supervised the destruction of nearly 500 kilos of heroin at the INSEE Cement Plant located in Puttalam.

The following is the text of statement issued by the INSEE Ecocycle Lanka (Private) Limited in this regard: ” Building on a consistent track record of supporting national anti-narcotics initiatives and eradicating a national menace, INSEE Ecocycle Lanka (Private) Limited, the leading professional waste management solutions provider, collaborated once more with the Sri Lanka Police Narcotics Bureau (PNB) and the National Dangerous Drugs Control Board (NDDCB) to responsibly dispose of 494.048 kgs of confiscated heroin via co-processing technology.

This marks the fourth collaboration between INSEE Ecocycle and law enforcement authorities for the destruction of such substances, following successful disposals carried out in 2018, 2019, and 2023 totalling approximately 1804 kgs of dangerous drugs.

The disposal, which ensured environmentally safe and secure destruction of the narcotics, was conducted on 28 April at the INSEE Cement Plant located in Puttalam, under the strict supervision of PNB officials and court-appointed representatives.

Prior to disposal, the confiscated heroin, seized during national anti-narcotics operations, was rigorously verified by the Government Analyst Department (GAD), NDDCB, and judicial authorities to ensure compliance with legal and safety protocols.

INSEE Cement Sri Lanka Chairman/CEO Nandana Ekanayake explained: “INSEE Cement is the only fully integrated cement manufacturing facility in the country with the required capability to provide this solution. We proudly support the national cause and contribute to building a drug-free nation. Sri Lanka’s only operational Cement Kiln Co-processing facility is in our Puttalam Cement Plant. INSEE Cement has always focused on the Health and Safety of all our stakeholders. As a responsible corporate citizen, we are proud and honoured to extend our support and ensure the safe disposal of harmful substances with utmost care and professionalism.”

Emphasizing the significance of the initiative, Sujith Gunawardena, Director, INSEE Ecocycle, said, “As Sri Lanka’s sole provider of co-processing technology, we are proud to collaborate with the authorities and support this critical effort. We successfully disposed of the confiscated narcotics in an environmentally friendly and sustainable manner, complying with all the regulations. Co-processing offers a complete destruction solution for hazardous waste at extremely high temperatures, eliminating it without harmful emissions or residual byproducts. It is a cleaner and more sustainable solution than traditional incineration. It is globally accepted as the superior waste management method, significantly reducing greenhouse gas emissions and aligning with global best practices for sustainable waste management.”

INSEE Ecocycle played a critical role in the technical evaluation of the feeding mechanism and pre-processing activities, collaborating closely with PNB and NDDCB to guarantee the safe disposal of the hazardous substance. The comprehensive technical evaluation comprised thorough risk assessments and mitigation action plans, addressing environmental, social, health, and safety concerns for the entire pre-processing and co-processing value chain.

Throughout the confiscated heroin disposal process, experts from PNB and NDDCB provided guidance on critical components, including laboratory analyses and procedural adherence, culminating in the secure and transparent destruction of the narcotic substance. The disposal took place using cement kiln co-processing technology, also known as thermal destruction, at temperatures of 1800- 2000 °C with a 4-6 sec residence time and under fully controlled process parameters.

INSEE’s co-processing facility satisfies all regulatory requirements and technical standards and is globally adopted for waste management. The facility offers a complete solution with zero harmful emissions to the environment. It has also obtained all required licenses, such as the Environmental Protection License and Scheduled Waste Management License from the Central Environmental Authority and the Provincial Environmental Authority, and certifications including ISO 9001, ISO 14001, ISO 17025, ISO 39001, and ISO 45001.

With a proud legacy of over two decades, INSEE Ecocycle has managed more than 1.3 million metric tons of industrial waste in collaboration with over 1,000 customers, including multinationals, local conglomerates, corporations, government authorities at central and regional levels, and recycling partners. The partnership demonstrates the company’s commitment to advancing Sri Lanka’s circular economy and environmental stewardship.”

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