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Rs. 16 bn sugar duty scam: Recovery of losses further delayed

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MP says ex-Prez should be questioned over Minister’s disclosure

By Shamindra Ferdinando

State Finance Minister Ranjith Siyambalapitiya yesterday (02) said that the recovery of at least part of revenue losses caused by the alleged sugar tax scam, (2020), couldn’t be done in a hurry.

Siyambalapitiya said so when The Island asked the State Minister how soon the government could recover 30 percent of Rs 16 bn loss in revenue in terms of an assurance he gave Parliament less than a week before the presentation of Budget 2023.

State Minister Siyambalapitiya said the recovery process could take over a year, depending on accounting years of the relevant sugar importers. On Nov. 09, he told Parliament the Treasury had suffered losses amounting to Rs 16 bn due to the unprecedented reduction of duty on a kilo of white sugar, from Rs 50 to 25 cents, from 13 Oct., 2020. He is on record as having said that the Treasury could recover only 30 percent of Rs 16 bn estimated loss.

Siyambalapitiya assured Parliament that the government would ensure such unilateral decisions couldn’t be taken in the future.

The then Prime Minister Mahinda Rajapaksa served as the Finance Minister whereas Ajith Nivard Cabraal held the State Finance portfolio. S. R. Attygalle served as the Secretary to the Treasury.

The SLPP government increased the duty on a kilo of white sugar to Rs 50 in May 2020, a couple of months before the general election, and it was brought down to 25 cents, a few weeks after the last general election.

Media and Transport Minister Bandula Gunawardena’s Office told The Island that the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) was yet to record a statement from the Minister as regards disclosure he made in Parliament on the sugar duty scam. Sources close to Bandula Gunawardena said that the former Trade Minister wanted to set the record straight. “The Minister couldn’t furnish a statement on Dec. 19, as sought by the CIABOC. However, CIABOC was told subsequently to record his statement,” sources said.

Addressing the Parliament, on Dec. 09, Minister Gunawardena said that in spite of him being the Trade Minister, he was not consulted at all and his strong opposition disregarded by President Rajapaksa when the Finance Ministry drastically reduced duty on imported sugar, without the benefit being passed onto the consumer.

Lawmaker Gunawardena claimed that inimical decisions were taken by ‘advisors’ at the expense of ministers who lacked authority.

CIABOC has so far recorded statements from over 30 persons in respect of the high profile investigation launched following complaints received from Samagi Jana Balavegaya MPs, Field Marshal Sarath Fonseka and Mayantha Dissanayake and public interest litigation Attorney-at-Law Nagananda Kodituwakku. Those questioned included former Presidential Secretary Dr. P.B, Jayasundera.

The Island

learns that the CIABOC contemplated seeking a statement from former President Gotabaya Rajapaksa in this regard.

Sources said that a clarification was required as some of those who had been questioned over the issuance of the relevant gazette by the Finance Ministry claimed they received instructions from the President.

Former Chairman of the Committee on Public Finance, Anura Priyadarshana Yapa, is on record as having said that the reduction of duty on sugar didn’t benefit the consumers at all. Incumbent Cabinet ministers Vidura Wickremanayake and Nalin Fernando, before they received ministerial portfolios this year in their capacity as members of the Public Finance Committee, have criticized the sugar tax scam.

MP Mayantha Dissanayake told The Island that Minister Gunawardena has pointed the finger at former President Gotabaya Rajapaksa. Declaring that the CIABOC couldn’t under any circumstances leave the ex-President out of the investigation, MP Dissanayake emphasized that Bandula Gunawardena, too, should be held accountable for loss in revenue. How the then Trade Minister could distance himself from the sugar scam by blaming it on the President and those near and dear to that President, MP Dissanayake asked.

Since Minister Gunawardena’s revelation, the former President has left the country.

Responding to another query, MP Dissanayake said that the CIABOC, too, owed the public an explanation regarding, what he called, the inordinate delay in probing this case. “On behalf of the SJB youth movement, I lodged a complaint on Feb 01, 2021, and subsequently made inquiries regarding the investigation. Minister Gunawardena’s disclosure has revealed the culprits,” MP Dissanayake said.



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Environmental laws will be enforced equally against everyone

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Prime Minister Dr. Harini Amarasuriya stated that the Government was deeply saddened by the unfortunate death of the Tusker Kavanthissa, a national treasure who sustained severe injuries from gunshot wounds. She emphasised that environmental laws would be strictly enforced against those responsible for environmental crimes, without discrimination or favouritism.

The Prime Minister made these remarks while addressing the Presidential Environmental Awards 2026, organised for the 11th time by the Central Environmental Authority under the Ministry of Environment, at the Bandaranaike Memorial International Conference Hall (BMICH) in Colombo on Monday  (19 October).

A total of 195 awards, comprising Gold, Silver, Bronze and Merit Awards, were presented to institutions recognised for their sustainable management of natural resources. The Prime Minister participated in presenting the Gold Awards.

Addressing the occasion, the Prime Minister stated:

“A country’s prosperity is measured not only by its economic indicators. Clean air, safe drinking water and a healthy ecosystem are equally essential to ensuring a better quality of life for its people.

The Clean Sri Lanka programme, launched with this objective, is not merely about cleaning roads. It is a national transformation aimed at reducing waste, ensuring proper waste management and changing the way we think about and treating the environment.

We cannot allow tragedies such as the one that befell Tusker Kavanthissa to happen again. Environmental laws must not be influenced by a person’s position, wealth or connections. The law will be enforced equally against everyone. Everything from the issuance of licences to the approval of projects must be carried out on the basis of scientific evidence and with complete transparency.

Development achieved at the expense of environmental destruction can never be considered sustainable development. Wildlife officers and veterinary teams made significant efforts to save the Tusker Kavanthissa. However, the Tusker could not be saved due to the severity of its injuries and the resulting infections.

The Government is deeply saddened by this loss. In order to prevent similar incidents in the future, we will further strengthen veterinary care for wildlife and veterinary education. The Government has already taken a number of practical measures to address the long-standing human-elephant conflict.

Accordingly, 113 forest areas have been designated as reserves, bringing 71,900 hectares (approximately 180,000 acres) under protection. In addition, three elephant corridors are being established to facilitate the free movement of elephants, alongside a dedicated reserve for elephant management.

In order to strengthen the field operations of the Department of Wildlife Conservation, 100 pickup vehicles, 185 motorcycles and nine tractors have been provided. Furthermore, 3,500 elephant fence assistants and 5,000 members of the Civil Security Department have been deployed to maintain elephant fences.

Steps have also been taken to amend the National Environmental Act after 26 years. More than 1,600 new officers are being recruited to the Ministry of Environment.

Environmental conservation must not be treated as a temporary project. It must become an essential component of government policy and the daily lives of every citizen. It is vital to support small and medium-sized enterprises in adopting green technologies, promoting practical environmental skills through school and university education, and fostering environmental responsibility through religious institutions. We seek the support and cooperation of the entire public to ensure that we leave behind a safe, beautiful and clean country for future generations.

The event was attended by Minister of Environment Dhammika Patabendi; Minister of Industry and Entrepreneurship Development Sunil Handunnetti; Deputy Minister of Environment Anton Jayakody; Secretary to the Ministry of Environment K. R. Uduwawala; Chairman of the Central Environmental Authority, Professor Tilak Hewawasam; and a large gathering of government officials, foreign representatives and award recipients.

Prime Minister’s Media Division

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President pays last respects to Most Venerable Kappetiyagoda Siri Wimala Thera

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President Anura Kumara Dissanayake today (20) paid his last respects to the remains of Most Venerable Kappetiyagoda Siri Wimala Thera, Anunayake of the Sri Lanka Ramanna Maha Nikaya and Chief Incumbent of the Rajopawanaramaya Temple in Gatambe, Kandy, who passed away.

The President visited the Rajopawanaramaya Temple in Gatambe, Kandy, where the remains of the Thera are lying, and paid his last respects. He subsequently expressed his deepest condolences to the Maha Sangha and the temple’s Dayaka Sabha, who are mourning the passing of the Thera.

Central Province Governor and Consultant Physician Dr Harsha Suranga Fernando, Kandy District Secretary Indika Udawatta and several others were present.

President’s Media Division (PMD)

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Ranawaka accuses govt. of using JVP cadres and police to suppress political opponents

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… reminds AKD led over 560 protests during Yahapalanaya

Former Yahapalana Minister and United Republican Front (URF) leader Patali Champika Ranawaka yesterday (19) alleged that the JVP, which carried out over 560 protests during the 2015-2019 period, was now bent on preventing the Opposition from exercising its democratic right to protest.

Recalling the declaration made by the JVP at the height of the violent protest campaign in July 2022 that it would set the Parliament ablaze, the former parliamentarian lashed out at the JVP-led administration for using the police excessively to curb political opposition. Ranawaka said this while addressing the media at the former President Ranil Wickremesinghe’s Flower Road Office .

Commenting on the protest campaign launched by the Maha Sangha, demanding presidential pardon for General Secretary of the Bodu Bala Sena (BBS) Ven. Galagotaatte Gnanasara, the ex-Colombo District lawmaker alleged that President Anura Kumara Dissanayake used a combination of police, investigative units and JVP cadres to break up the monks’ protest. The government went to the extent of compelling the JVP/NPP-run Colombo Municipal Council (CMC) to deprive the peaceful protesters of basic toilet facilities, he alleged.

The government’s actions proved that only those with prior approval from JVP Pelawatte headquarters could launch protests in Colombo, its suburbs or in the provinces. The police have become a political tool in the hands of the JVP, the ex-Minister said. (SF)

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