News
Corrupt elements use Parliament, Finance Ministry to evade taxes
Economic Oversight Committee Chief makes shocking allegation
Complicity of official owning Las Vegas house exposed
by Shamindra Ferdinando
Chairman of the Sectoral Oversight Committee on National Economic and Physical Plans Mahindananda Aluthgamage, MP, yesterday (01), said influential corrupt elements within the state revenue collection apparatus had with the help of the Finance Ministry brought in amendments to relevant laws to stifle the revenue collection process. Their actions had taken a heavy toll on the state coffers.
The government had created a system that allowed four appeals against Inland Revenue Department tax estimates, MP Aluthgamage explained, alleging that interested parties abused the parliamentary process.
The former Minister said so in response to the queries raised by The Island about his recent declaration at the Presidential Media Centre (PMC) that a special unit was required to monitor Inland Revenue, Customs and Excise Departments.
Asked whether he had sought to highlight the failure on the part of parliamentary watchdog committees, the COPE (Committee on Public Enterprises), the COPF (Committee on Public Finance) and the COPA (Committee on Public Accounts), relevant ministerial consultative committees as well as the Auditor General to carry out their duties and functions properly, Aluthgamage said the fact that as much as Rs. 904 bn had not been collected as taxes over the past 15 years proved that the existing systems were flawed.
MP Aluthgamage said: “In fact, the government, at the expense of the national economy created a system for the benefit of tax dodgers. Parliament is responsible for this situation. Four appeals are not allowed in any part of the world. But the Finance Ministry and Parliament created systems that can be manipulated because the corrupt elements receive the backing of the powers that be.”
Responding to another question, MP Aluthgamage said those who had been tasked with revenue collection seemed to have been hand in glove with tax dodgers.
Aluthgamage said his committee had recently requested President Ranil Wickremesinghe, who also holds the Finance portfolio, to reduce the number of tax appeals from four to two.
MP Aluthgamage said that he had realised the urgent need for a fresh and thorough inquiry into state finance following the declaration of bankruptcy in May 2022 and the ouster of President Gotabaya Rajapaksa two months later.
The former Minister said that he wouldn’t hesitate to admit that corrupt systems remained in place regardless of the change of government in July last year. “A few months ago, a person known to me was asked to pay Rs 100 mn as tax. He got in touch with a senior revenue official, paid him Rs 10 mn and got the matter settled. When I brought this to the notice of the relevant department head, the official concerned simply said that particular officer often did so.
“Obviously regardless of the change of government and the fact that the country is begging for IMF assistance, corruption is rampant,” MP Aluthgamage said, noting that though the country was bankrupt and experienced continuing turmoil the vast majority of those who were tasked with revenue collection lived cushy lives. The Oversight Committee Chairman disclosed that one of the key Inland Revenue officials owned properties in Las Vegas, whereas another top official had walked free after being caught with heroin.
Alleging that some of those holding key positions in the revenue collection set-up collaborated with tax dodgers, the MP said that similarly the Excise Department and liquor manufacturers perpetrated massive tax frauds. Responding to another query, MP Aluthgamage emphasised that actually the increase in the price of liquor had helped certain liquor manufacturers.
Appreciating the interventions made by MP Patali Champika Ranawaka to pressure the Excise Department to do its job, MP Aluthgamage said that routine checks had revealed the widespread use of fake security tax stamps affixed to bottles of liquor countrywide. The Excise Department bosses should be held accountable for this situation as liquor manufacturers could not engage in such massive frauds without the blessings of the department.
Referring to a delay in agreement with the IMF over the releasing of the second tranche of USD 2.9 bn Extended Fund Facility (EFF), MP Aluthgamage said that the flaws in the revenue collection process, too, had contributed to the situation. The MP alleged the Inland Revenue, Customs and Excise Departments continued to undermine the revenue collection. “They always come up with lame excuses to thwart efforts to streamline tax collection,” he said.
Alleging that frauds involving the Excise Department and liquor manufacturers caused 40 percent loss in revenue, MP Aluthgamage alleged that a significant amount of that money ended up with Excise Department personnel at all levels. “This is the sad truth,” the ex-Minister said.
According to him, the Inland Revenue, Customs and Excise were required to collect Rs. 1,667 bn, Rs 1,217 bn and Rs 217 bn, respectively, this year. But so far this year, they had collected only Rs 956 bn, Rs 578 bn and Rs 109 bn, respectively, MP Aluthgamage said.
MP Aluthgamage said that he had been targeted by Inland Revenue after he raised the issues at hand publicly. “I was investigated,” the MP said, adding his efforts couldn’t be derailed by such efforts.
MP Aluthgamage said that he had urged President Wickremesinghe to take remedial measures as soon as possible. “Our continuous failure to act even after the declaration of bankruptcy is unacceptable.”
News
Colombo Law Society objects to judges’ retirement age move
…Urges President not to undermine public confidence in independence of judiciary
The Colombo Law Society has urged President Anura Kumara Dissanayake not to proceed with any constitutional amendment to extend the retirement age of Supreme Court and Court of Appeal judges, warning that such a move could undermine public confidence in the independence of the judiciary.
In a letter dated July 2, 2026, the Society said its Executive Committee had unanimously resolved to convey its concerns following reports of a proposal to increase the retirement age of judges of the superior courts.
The Society said any amendment affecting the tenure of sitting judges should be approached with caution, adding that public confidence in the independence of the judiciary must be safeguarded.
Full text of the letter: The Executive Committee of the Colombo Law Society, at its duly convened meeting held on 25 June 2026, deliberated extensively on the reported proposal to increase the retirement age of Judges of the Court of Appeal and the Supreme Court.
Having carefully considered the matter, the Executive Committee unanimously resolved to convey its concerns to Your Excellency and to express its support for the position taken by the Bar Association of Sri Lanka in its letter addressed to Your Excellency, dated 25 May, 2026.
The Colombo Law Society recognizes and appreciates the invaluable contribution made by members of the higher judiciary to the administration of justice in Sri Lanka. However, we respectfully take the view that any alteration to the constitutionally established retirement age of Superior Court Judges must be approached with the utmost caution and only after broad consultation with all relevant stakeholders.
The existing retirement ages of Judges of the Court of Appeal and the Supreme Court have remained unchanged since the promulgation of the 1978 Constitution. Any departure from this long-standing constitutional framework, particularly where it affects serving judges, may give rise to public concern and perceptions that could undermine confidence in the independence and impartiality of the judiciary.
The independence of the judiciary is one of the cornerstones of the Rule of Law and democratic governance. Equally important is the public perception of such independence. The judiciary must not only be independent in fact but must also be seen to be independent and free from any appearance of influence or accommodation.
The Colombo Law Society further notes that the number of Judges of both the Court of Appeal and the Supreme Court was increased through constitutional reform in 2020. In those circumstances, questions naturally arise as to whether there exists a compelling institutional necessity to alter the retirement age of Superior Court Judges at this juncture.
We respectfully submit that constitutional amendments relating to the judiciary should be undertaken only after careful consideration of their long-term impact on judicial independence, public confidence, and the constitutional framework of the Republic.
Accordingly, the Colombo Law Society respectfully urges Your Excellency to give the fullest consideration to the concerns expressed by the legal profession and to refrain from proceeding with any constitutional amendment seeking to extend the retirement age of Judges of the Court of Appeal and the Supreme Court.
We remain confident that Your Excellency will continue to uphold and safeguard the independence, integrity, dignity, and public confidence in the judiciary, which remain essential to the preservation of the Rule of Law and democratic governance in Sri Lanka.
News
Freedom 250: US Embassy celebrates America’s 250th Independence Day through magic of American cinema
The US Embassy in Sri Lanka commemorated America’s semiquincentennial—250 years of independence—with Chief Guest, Minister of Health and Mass Media Nalinda Jayatissa, and hundreds of Sri Lankan partners, government officials, business leaders, diplomats and friends of the United States, at a Freedom 250 celebration honouring the enduring power of freedom through the lens of American cinema. The July 2 celebration highlighted the ideals that have shaped the United States for two and a half centuries—individual liberty, self-government, freedom of expression, and the belief that free people can dream, create, and shape their own future. The Embassy grounds were transformed into an immersive cinematic experience, celebrating how American films have reflected those freedoms while inspiring audiences across generations and around the world, including in Sri Lanka.
Welcoming guests to the celebration, Chargé d’Affaires Jayne Howell reflected on the profound connection between American freedom and cinematic storytelling. “Tonight, we celebrate 250 years of American independence by honouring one of our nation’s greatest gifts to the world—the art of cinema,” she said.
“For more than a century, American filmmakers have used their creative freedom to craft stories that resonate across every border and culture. From the opening of the world’s first dedicated movie theater in New Orleans, in 1896, to the groundbreaking animation of Snow White, from the sweeping epics like The Godfather to the technological marvels of Avatar, Star Wars and Jurassic Park, and classics like The Bridge on the River Kwai—filmed in Sri Lanka and forever linking the island to Hollywood history—our films reflect the very freedoms we celebrate today—the freedom to dream boldly, to question deeply, and to imagine new possibilities.”
CDA Howell continued, “As we share this cinematic journey with our Sri Lankan friends—fellow champions of democracy and freedom—we’re reminded that the best American stories are universal stories. They speak to the courage we see in The Wizard of Oz, the unity we witness in The Avengers, the wonder we experience through E.T., the spirit of exploration and achievement captured in films like Apollo 11, and the resilience we admire in Forrest Gump. Tonight, we celebrate not just American cinema, but the freedom that makes it possible—the freedom to tell any story, to show America at its best and its most complex, and to believe that movies can change how we see ourselves and each other. That freedom is what we honour on this 250th anniversary and the enduring values that will guide us forward.”
The evening opened with a stunning visual spectacle: rooftop screens displayed on the Embassy building celebrating 250 years of American independence and commemorating the signing of the Declaration of Independence on July 4, 1776. The centerpiece was an open-air screening, under the stars, featuring carefully curated clips that traced American cinema’s evolution—from silent films that established visual storytelling techniques still used today, through Disney’s Snow White and the Seven Dwarfs (the first full-length animated feature), The Matrix’s groundbreaking “bullet time” effects, to Christopher Nolan’s The Dark Knight, which redefined superhero cinema as a vehicle for exploring complex questions about justice and society.
The celebration concluded with fireworks illuminating the Colombo sky as the III Marine Expeditionary Force Band, the US Marine Corps’ forward-deployed band in the Indo-Pacific region, based in Okinawa, Japan, performed a montage of American songs that have inspired generations. Guests enjoyed a menu featuring high-quality US beef and other American food and beverages, showcasing the global reputation of American agricultural exports.
As the United States marks 250 years of independence, Freedom 250 celebrates the enduring idea that has defined America since 1776—that freedom unlocks human potential, fuels creativity and innovation, and empowers individuals to shape a better future. Through education, trade, investment, security cooperation, and the enduring ties between our people, the United States and Sri Lanka continue to strengthen a partnership built on opportunity and shared democratic values.
The US Embassy extends its sincere gratitude to the generous sponsors whose support made this year’s Independence Day celebration possible, including Diamond Sponsors Brandix, Hayleys, Hirdaramani, MAS Holdings, Mastercard, RM Parks, and Visa, along with our other valued partners.
News
CA dismisses application filed by Yoshitha seeking to quash conspiracy charge in money laundering case
The Court of Appeal yesterday dismissed a revision application filed by Yoshitha Rajapaksa seeking to quash a conspiracy charge in the money laundering case, pending before the Colombo High Court.
Rajapaksa had challenged the conspiracy count in the indictment filed by the Attorney General, under the Prevention of Money Laundering Act, contending that the charge was not legally maintainable.
A Court of Appeal Bench, comprising Justices Amal Ranaraja and Dr. Sumudu Premachandra, rejected the application, ruling that the conspiracy charge could proceed before the Colombo High Court.
The ruling clears the way for the High Court to continue hearing the money laundering case, filed by the Attorney General against Rajapaksa.
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