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Customs suffered Rs. 6.1 bn loss due to negligence

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…Rs 220 mn revenue denied due to fraud

By Saman Indrajith

Two leading palm oil companies had caused a loss of Rs. 6,130 million to the Sri Lanka Customs between 2013 and 2016, the Committee on Public Accounts (COPA) was informed, on Thursday.

The COPA was informed that an audit conducted by the Auditor General’s Department had revealed that the loss was due to the negligence on the part of Sri Lanka Customs officials, who failed to clear specific goods, under the Harmonized System (HS Code).

Although Secretary to the Treasury and Ministry of Finance, S.R. Attygalle, had already taken measures to investigate and recover the losses incurred by the state, the COPA directed the Sri Lanka Customs also to take immediate action in that regard, and Director General of Sri Lanka Customs Major General Vijitha Ravipriya agreed to do so.

The Director General of the Sri Lanka Customs and its high-ranking officials, officials of the Ministry of Finance and officials of the Auditor General’s Department were present at the Committee on Public Accounts meeting, chaired by Prof Tissa Vitharana.

It was also revealed that since 2013, the government had lost revenue to the tune of Rs. 220 million because importers had registered imported vehicles as dual-purpose vehicles for special purposes. A minimum of Rs.1,300 million could have been levied on 443 specialized vans, from 2010-2019, according to sources.

Another major irregularity revealed through the audit, pertaining to the importation of 10 vans and 414 lorries under special purpose vehicles, from the year 2010, was taken up for discussion by the Committee.

The Committee was informed that a luxury car, fraudulently registered as a special purpose vehicle, valued at nearly Rs. 9 million, had been released by the Sri Lanka Customs with a levy of only Rs. 1.5 million. Had the vehicles been cleared under the relevant category of vehicles, the levy payable to the Government would have been approximately Rs. 56 million. It was proposed to expedite the maintenance of a computer comparison system as previously recommended by the Committee with the concurrence of the Secretary to the Treasury and Ministry of Finance, following talks the Treasury Secretary Attygalle had with the Sri Lanka Customs and the Department of Motor Traffic.

The members of the Committee agreed to assist in the legislative process, if amendments to any Acts were required, for the aforesaid purpose.

Failure to implement an adequate internal control system, within the Sri Lanka Customs, pertaining to the process of imports and exports, following the release of six containers of perfume, worth Rs. 39,335,091, declared as medication, causing the government a loss of Rs. 40,761,600, and lack of punitive action against errant officials involved in the act of fraud, were revealed at the Committee meeting.

Taking into consideration issues such as the officials of Sri Lanka Customs responsible for generating 32.48% of the revenue for the year 2019 opposing a biometric attendance system, weaknesses of internal governance, issues pertaining to the recruitment of an Attorney and a Chief Internal Auditor for the Legal Department, members of the COPA mutually agreed to summon the Sri Lanka Customs again.

State Minister Dayasiri Jayasekara, Shehan Semasinghe, Prasanna Ranaweera and MPs Tissa Attanayake, Ashoka Abeysinghe, Gunapala Ratnasekera, Weerasumana Weerasinghe, Prof. Ranjith Bandara, Niroshan Perera, Gamini Waleboda, S. Shritharan, Prof. Harini Amarasuriya,  and Upul Galappaththi, were present at the meeting.



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Sajith warns country is being dragged into authoritarian rule 

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Sajith Premadasa

Opposition and SJB Leader Sajith Premadasa has alleged that the current government is attempting to suppress freedom of expression and media freedom to lead the country towards authoritarian rule.

In a video message on Thursday (25), Premadasa said that in a democratic country, the four main pillars safeguarding democracy are the legislature, the executive, the judiciary, and the independent media, but, at present, the government is using the police to violate both the democratic rights of the people and the rights of police officers themselves.

He said that the government is working to establish a police state that deprives citizens of their right to access truthful information.

“For democracy to be protected, media freedom must be safeguarded, and space must be given to independent media. Instead, the government is interfering with the independent media process, using the police to suppress and intimidate independent media,” he said.

He noted that even when independent media present their views based on reason, facts, and evidence, the government attempts to suppress them. Such actions, he said, amount to turning a democratic country into a police state. “Do not suppress the voice of the silent majority, the independent media,” he urged.

Premadasa emphasised that independent media represent the voice of the silent majority in the country and must not be suppressed.

“Media repression is a step towards authoritarian rule, and the people did not give their mandate to create an authoritarian regime or a police state. If the government attempts to abolish democratic rights, the Samagi Jana Balawegaya will stand as the opposition against it,” he said.

The Opposition Leader further alleged that the government was interfering with police independence, stating, “Political interference has undermined the independence of the police, making it impossible for them to serve impartially. Suppressing freedom of expression is an attempt to lead the country towards authoritarian rule.”

Premadasa pointed out that the media has the right to reveal the truth, and interfering with that right is a violation of the rights of 22 million citizens.

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Wholesale mafia blamed for unusually high vegetable prices  

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Vegetable prices at the Peliyagoda Manning Wholesale Market surged to unusually high levels yesterday (26), raising concerns among consumers as the festive season drives up demand. The situation is expected to persist over the next few days, a spokesman for the Manning Market told The Island.

He said a sharp increase in the number of buyers visiting the wholesale market, ahead of upcoming festivities, had resulted in a sudden spike in demand, prompting wholesale traders to raise prices significantly. The price hikes have affected a wide range of commonly consumed vegetables, placing additional pressure on household budgets.

According to market sources, the wholesale price of beans climbed to Rs. 1,100 per kilogram, while capsicum soared to Rs. 2,000 per kilogram. Green chillies were selling at around Rs. 1,600 per kilogram. Prices of other vegetables, including beetroot, brinjal (eggplant), tomatoes, bitter gourd, snake gourd and knolkhol, also recorded unusually high increases.

The spokesman alleged that despite the steep rise in prices, vegetable farmers have not benefited from the increases. Instead, he claimed that a group of traders, who effectively control operations at the wholesale market, are arbitrarily inflating prices to maximise profits.

He warned that if the relevant authorities fail to intervene promptly to curb these practices, vegetable prices could escalate further during the peak festive period. Such a trend, he said, would disproportionately benefit a small group of middlemen while leaving consumers to bear the brunt of higher food costs.

By Kamal Bogoda ✍️

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Cyclone-damaged Hakgala Botanical Garden reopened with safety measures

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Hakgala Botanical Garden

The Hakgala National Botanical Garden, which was closed in the aftermath of Cyclone Ditwah, has been reopened to tourists from yesterday, the Ministry of Environment indicated.

The Ministry said the reopening was carried out in accordance with recommendations and guidelines issued by the National Building Research Organisation (NBRO) and the DisasterManagement Centre (DMC) after safety assessments were completed.

However, due to the identification of hazardous ground conditions, several areas, within the garden, have been temporarily restricted. These include the pond area, near the main entrance, and access roads leading towards the forest park where potential risks were observed. Warning signs have been installed to prevent visitors from entering these zones.

To ensure the safety and convenience of both local and foreign visitors, the garden’s management has introduced a special assistance programme, with staff deployed to guide and support tourists.

The Hakgala Botanical Garden was closed as a precautionary measure during the disaster situation triggered by Cyclone Ditwah. The Ministry noted that the garden has now been safely reopened, within a short period, following remedial measures and inspections, allowing visitors to resume access while maintaining necessary safety precautions.

By Sujeewa Thathsara ✍️

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