Washington alleged former of buying overpriced Airbuses and latter of corrupt MiG deal

The US Department of State has publicly designated the former CEO of SriLankan Airlines, Kapila Chandrasena, and Former Ambassador to Russia, Udayanga Weeratunga, for their alleged involvement in significant corruption.

As per a statement released by the US Department of State, Kapila Chandrasena was involved in corruption while serving in his capacity as SriLankan Airlines CEO in exchange for ensuring Sri Lanka purchased Airbus aircraft for over market value.

The US has said that Udayanga Weeratunga orchestrated and personally benefitted from a corrupt scheme involving the procurement of MiG aircraft for the Sri Lanka Air Force. As part of this action, family members of both Kapila Chandrasena and Udayanga Weeratunga have also been designated.

Accordingly, Kapila Chandrasena and Udayanga Weeratunga and their family members cannot enter the US.

The US State Department statement says the following regarding the two former Sri Lankan officials:

“Pursuant to Section 7031(c), the Department of State is publicly designating Kapila Chandrasena for his involvement in significant corruption. Chandrasena accepted a bribe while serving in his capacity as Sri Lankan Airlines CEO in exchange for ensuring Sri Lanka purchased Airbus aircraft for over market value. As part of this action, his immediate family members are also designated.”

 “Pursuant to Section 7031(c), the Department of State is publicly designating Udayanga Weeratunga for his involvement in significant corruption. Weeratunga orchestrated and personally benefitted from a corrupt scheme involving the procurement of MiG aircraft for the Sri Lankan Air Force. As part of this action, his immediate family members are also designated.”

The U.S. State Department announced a slew of sanctions on Monday to mark International Anti-Corruption Day and the eve of Human Rights Day, targeting individuals from multiple countries. It has designated 14 individuals, including immediate family members, from countries around the world for significant corruption and one individual for gross violations of human rights, pursuant to Section 7031(c) of the Department’s annual appropriations act, rendering them ineligible for entry into the United States.

The Department of State is also further taking steps to impose visa restrictions on dozens of individuals pursuant to multiple policies under section 212(a)(3)(C) of the Immigration and Nationality Act.

Dr. Anil Jasinghe was appointed as the new Secretary to the Ministry of Health and Media.

According to the President’s Media Division (PMD), the appointment was made by President Anura Kumara Dissanayake.

The official letter of appointment was handed over to Dr. Jasinghe by the Secretary to the President Dr. Nandika Sanath Kumanayake at the Presidential Secretariat yesterday

Sri Lanka’s book industry yesterday renewed its call for books to be exempted from VAT and submitted a proposal to be considered for inclusion in in Budget 2025.

Urging the government to consider the financial and social ramifications of taxing sources of knowledge and learning, a collective associations representing publishers, writers, retailers, importers and exporters has pointed out that books were exempt from VAT in the past, and called for the restoration of the status quo ante.

In their proposal, four Associations have said that with all inputs for the publishing industry, with the exception of local labour being imported, Sri Lanka’s book industry is already taxed at 33.045%, and the imposition of a value-added tax (VAT) of 18%, at the point of sale, has made books unaffordable to many.

Addressing a media briefing, Sri Lanka Book Publishers Association (SLBPA) President Samantha Indeewara pointed out that the NPP leaders, while in opposition, had taken exception to VAT on books, and had asked the government of the day to abolish it. “We are, therefore, cautiously optimistic that the concerns of the book industry will be addressed in the next Budget,” he said.

“We have brought to the government’s attention the numerous anomalies affecting the industry that are directly attributable to the imposition of VAT on books,” he said. “The majority of publishing companies are not eligible to pay VAT, and, therefore, cannot have VAT deducted when they pay on material needed for producing books locally,” Indeewara said, noting that only about 12 large publishing and printing companies were eligible to pay VAT.

However, many of the smaller publishers sell their books via bookshops and distribution networks run by large companies, and the imposition of VAT results in all of their books being taxed, he said.

Another matter of serious concern was that by imposing taxes on books, Sri Lanka continued violate the UNESCO Florence Agreement of 1950, which it signed as a Contracting State. The UNESCO Florence Agreement is a treaty that binds Contracting States not to impose customs duties and taxes on certain educational, scientific, and cultural materials that are imported.

Associated with the SLBPA and joint signatories to the proposal submitted to the government are the Sri Lanka Writers Association, the All Ceylon Booksellers Association, and the Sri Lanka Book Importers and Exporters Association.