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Ex-AG backs IMF bailout conditions

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reminds how Yahapalanaya diluted National Audit Bill to appease corrupt lot

By Shamindra Ferdinando

Former Auditor General Gamini Wijesinghe yesterday (06) said that the weakening of the National Audit Bill, before Parliament endorsed the new law in early July 2018, too, had contributed to the collapse of the national economy. Alleging that the then Sirisena-Wickremesinghe coalition and influential public servants sabotaged their efforts to introduce a new law that could have been effectively used against corruption at all levels, Wijesinghe pointed out that the recently issued IMF’s Governance Diagnostic Assessment report on Sri Lanka demanded that the National Audit Act should be amended.

Although the Act provided for the powers, duties and functions of the Audit Service Commission and the establishment of the National Audit Office and the Sri Lanka State Audit Service and specified the role of the Auditor General over public finance, the then government ensured it lacked key provisions to deal with public sector waste, corruption, irregularities and mismanagement, Wijesinghe said.The IMF’s 16-point preconditions for the resumption and continuation of USD 2.9 bn bailout package exposed our entirely corrupt political party and public administration system, the retired Auditor General said. Those in Opposition couldn’t exploit the IMF’s demands for their advantage because they, too, were responsible for ruination of the national economy.

Wijesinghe said so responding to SJB lawmaker Dr. Harsha de Silva’s declaration that the failure on the part of the government to address deep-rooted corruption hampered financial recovery. Wijesinghe, who served as the AG from Nov. 2015 to April 2019, emphasized that economist Harsha represented the UNP at the time that party sabotaged the National Audit Bill. “What was finally enacted by the UNP and SLFP combine didn’t address primary concerns,” the outspoken official said, adding that the original Bill was meant to rein in top public sector management responsible for massive corruption.

Responding to another query, Wijesinghe said that the enactment of the new National Audit Bill was a key pledge made by the UNP-led coalition that backed Maithripala Sirisena at the 2015 January presidential election. Actually, it was to be introduced on 19 Feb., 2015, at the commencement of their 100-day Yahapalana programme, the present day civil society activist said, adding that the UNP and those who now represented the main Opposition SJB and the then divided UPFA worked against their effort.

Wijesinghe alleged that major political parties feared offending the public service. According to Wijesinghe, political parties pursued strategies in collaboration with the top management of the public administration for their benefit. “The position taken by the IMF should be appreciated and supported though the country was humiliated”, but such external pressure from lending bodies and bilateral donors were required to compel the parliament to take remedial measures the ex-AG said.

Declaring whatever the lame excuse trotted out by the government the IMF had suspended the second tranche amounting to USD 330 mn pending fresh staff-level agreement with Sri Lanka, Wijesinghe said that regardless the country being in such a precarious situation, the Parliament continued to turn a blind eye. “Allegations traded by government and Opposition members do not serve any purpose.

Whatever happens they are still committed to continue with the same system,” Wijesinghe said, pointing out that no political leader had the courage to tackle corruption. Referring to Treasury bond scams that had been perpetrated in Feb. 2015 and March 2016, the former Auditor General said that the Parliament’s response proved the public couldn’t depend on the legislature. Wijesinghe said that Sri Lanka should have acted two decades ago when corruption emerged as a major threat to political, economic and social stability.

The IMF’s demands (1) Establishment of an Advisory Committee by November 2023 to nominate commissioners for the Commission to Investigate Allegations of Bribery or Corruption (CIABOC), (2) Disclosure of asset declarations of senior officials by July 2024, (3) Enactment of proceeds of crime legislation by April 2024, (4) Amendment of the National Audit Act, (5) Finalization of implementation of regulations for beneficial ownership information and creating a public registry by April 2024, (6) Enactment of Public Procurement Law by December 2024, (7) Publishing reports on increasing competitive tendered procurement contracts, targeting agencies with low levels of competition, (8) Requiring the publication of all public procurement contracts above LKRs 1 billion, (9) Implementing the State-Owned Enterprise Reform Policy to ensure ethical management, (10) Abolishing or suspending the Strategic Development Projects Office Act until a transparent process for evaluating proposals is established, (11) Amending tax legislation to prevent unilateral tax changes without parliamentary approval, (12) Implementing short-term anti-corruption measures within revenue departments to enhance oversight and sanctions, (13) Exploring options for new management arrangements for the Employees Provident Fund to avoid conflicts of interest, (14) Revising legislation, regulations, and processes for stronger oversight in the banking sector, (15) Establishing an online digital land registry and ensuring progress in registering/titling-state land and (16) Expanding the resources and skills available to the Judicial Services Commission to strengthen justice.



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BASL asks govt. to abandon plan to raise retirement ages of CA and SC judges

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… tells Prez such arbitrary change neither necessary nor desirable

The Bar Association of Sri Lanka (BASL) has urged President Anura Kumara Dissanayake to abandon the controversial plan to increase the retirement age of the judiciary, including the Court of Appeal and the Supreme Court.

In a statement issued by the BASL President Rajeev Amarasuriya and its Secretary Nalin de Silva, the BASL pointed out that the proposed increase of the retirement age of the judiciary would undermine the independence, integrity, dignity, and public confidence in the Judiciary, which is essential for the maintenance of the Rule of Law and democratic governance in Sri Lanka.

The text of the BASL statement: “The Bar Association of Sri Lanka (hereinafter referred to as “BASL”) notes with grave concern reports in the public domain that the Government is considering the introduction of an amendment to the Constitution to increase the age of retirement of Judges of the Court of Appeal and the Supreme Court.

It is the considered view of the BASL that the age of retirement of the judges of the Court of Appeal and the Supreme Court which has stood at 63 years and 65 years respectively from the promulgation of the 1978 Constitution, should not be changed arbitrarily and that such a change is neither necessary nor desirable.

To do so will result in the loss of public confidence in the integrity of the legal system and of the Government’s commitment to preserve and protect the rule of law and the independence of the judiciary. Members of the public are likely to question the motives of the Government in bringing in a Constitutional amendment solely for this purpose.

Your Excellency is no doubt aware that the cadre of the Judges of the Court of Appeal was increased from 12 to 20 Judges (including the President of the Court of Appeal) and that of the Supreme Court from 11 to 17 Judges (including the Chief Justice) by the 20th Amendment to the constitution certified on 29th of October 2020. With such enhancement, workwise, there cannot be a real requirement to extend the retirement ages of these judges.

Your Excellency is aware that altering the retirement age of judges of the apex courts would have to be done through a Constitutional amendment. For many years Sri Lanka’s Constitution has been subject to ad hoc amendments, sometimes in order to cater to the political needs of the government in power and often contrary to the interests of the rule of law, the independence of the judiciary and the judiciary.

Extending the retirement age of the sitting Judges of these Courts at this point of time is likely to be viewed by the public as a blatant attempt to interfere with the judiciary. We believe that to go ahead with such an ad hoc move will also be an affront to the Honourable Judges of those courts.

If the Government goes ahead with such a move it will set a dangerous precedent for future Governments too to introduce ad hoc amendments to the Constitution in respect of the functions of the Judiciary.

The independence of the Judiciary and the public confidence reposed in it, are indispensable pillars of the Rule of Law and the democratic framework of our Republic. In that regard, it is of paramount importance that the Judiciary must not only remain independent in fact, but must also be seen by the public to be wholly independent, impartial, and free from even the slightest perception of influence, favour, accommodation, or impropriety.

The Bar Association of Sri Lanka is therefore constrained, in the discharge of its duty to uphold and safeguard the Rule of Law and the independence of the Judiciary, to respectfully express its serious concern regarding any such proposed amendment, which is neither in the interests of the Judiciary and nor of the people.

In the circumstances, the BASL respectfully urges Your Excellency not to proceed with any proposed constitutional amendment seeking to increase the retirement age of the members of the Judiciary including Judges of the Court of Appeal and the Supreme Court.

We remain confident that Your Excellency will give due consideration to the importance of preserving and protecting the independence, integrity, dignity, and public confidence in the Judiciary, which is essential to the maintenance of the Rule of Law and democratic governance in Sri Lanka.”

Govt. declines to respond

A member of the Cabinet yesterday declined to comment on the BASL’s letter to President Anura Kumara Dissanayake. The Minister said that he wouldn’t comment for the time being.

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New US tariffs proposed on 60 countries, including Sri Lanka

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12.5% additional duties on goods imported from Colombo

The US has proposed additional duties of 10% or 12.5% on imports from 60 economies, including Sri Lanka, over their alleged failure to curb trade in ‌goods made with forced labour.

The proposal made by US Trade Representative’s (USTR) office in terms of Section 301 unfair trade practices investigation to be released, news agencies reported, pointing out that the Trump administration was seeking to rebuild its emergency tariffs, which were struck down by a US Supreme Court decision in February.

The USTR said it determined that it would impose 10% duties related to ⁠the forced labour investigation on imports from Canada, Ecuador, the European Union, Indonesia, Mexico, Pakistan, Argentina, Bangladesh, Cambodia, El Salvador, Guatemala, Indonesia, Malaysia, Taiwan and Britain.

The trade agency said it would impose additional duties of 12.5% on the remaining 45 countries that were investigated.

“The failure of our most important trading partners to address the importation of goods made with forced labour is unacceptable,” US Trade Representative Jamieson Greer said in a statement. “This creates a dynamic where American workers are forced to compete globally on an unlevel playing field.”

According to the trade agency, the USTR found that Sri Lanka has failed to impose and effectively enforce a forced labour import prohibition.

The USTR noted that the results of its investigation indicate that the acts, policies and practices of Sri Lanka related to the failure to impose and effectively enforce a forced labour import prohibition are unreasonable and burden or restrict US commerce.

Accordingly, it has proposed to impose 12.5% additional duties on goods imported from Sri Lanka.

The USTR said it also was proposing a textile mechanism that would allow for a certain volume of apparel and textile imports ‌to ⁠enter the US at a reduced tariff rate, though the duties and volumes were not disclosed.

The announcement comes ahead of the July 24 expiration of a 10% temporary tariff imposed by the Trump administration on February 20, the day the Supreme Court struck down US President Donald Trump’s tariffs under the International Emergency Economic Powers Act.

On Monday, the USTR proposed ⁠a 25% duty on many Brazilian goods as a result of a Section 301 investigation into the country’s digital trade practices and preferential tariffs. The trade agency is also expected to soon unveil the findings of another major Section 301 probe into ⁠the buildup of excess industrial capacity in 16 trading partners, including China.

In the forced labour findings, the USTR said it would exempt from the tariffs a number of products, including energy, rare earths and certain ⁠other metals, beef, coffee, certain fruits and vegetables, pharmaceuticals, organic chemicals and aircraft parts.

The USTR said it would accept public comments on the proposed tariffs and other remedies through July 6, with a public hearing scheduled for July 7.

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55,000 MT of rejected coal unloaded at Norochcholai

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‘Coal scam turns into daylight robbery’

More than 55,000 metric tonnes of what has been described as substandard coal that should have been outright rejected had already been unloaded from the vessel MV JOSCO YONGZHOU by yesterday (June 2), intensifying allegations of a major procurement scandal involving the Norochcholai Lakvijaya Power Plant.

The Free Lawyers Organisation (FLO) warned that the controversial shipment, carrying a total of 59,766 metric tonnes of coal, was being discharged despite evidence that it failed to meet mandatory tender specifications and should never have been accepted into the country.

The vessel arrived at the Puttalam anchorage on May 28 and was inspected by authorities at around 3.30 p.m. Approval for unloading was reportedly granted within 30 minutes. Unloading commenced shortly thereafter and has continued despite mounting concerns raised by legal and civil society groups.

According to the FLO, the official Load Port Report issued by Bureau Veritas Solutions South Africa (Pvt) Ltd on April 30, 2026, classified the shipment as one that should have been completely rejected under the tender conditions applicable to the Lanka Coal Company.

The controversy centres on the ash content of the coal. The report indicates an ash level of 16.8 per cent, while the Lanka Coal Company’s own tender document, under Section 5.2 titled “LCC Reject Values for Coal”, sets the maximum permissible reject threshold at 16 per cent.

“The coal does not qualify for purchase under the tender conditions. There is no legal basis for the Lanka Coal Company or the Government of Sri Lanka to accept or pay for this shipment,” the organisation said.

The FLO described the incident as the most serious coal procurement controversy in recent years, noting that this is believed to be the first instance in which a shipment identified at the loading port itself as falling within rejectable limits has nevertheless been cleared for unloading in Sri Lanka.

The shipment was reportedly supplied by Taranjot Resource (Pvt) Ltd.

Attorneys-at-Law Athula de Silva and Piyal Darshana Guruge warned that any decision to process payment for the consignment could expose officials to liability under the Anti-Corruption Act No. 9 of 2023.

They argued that authorising payment for a shipment that allegedly fails mandatory quality requirements could amount to causing a loss to the state and constitute a serious breach of procurement procedures, financial regulations and administrative rules.

The lawyers questioned how a shipment identified in an internationally recognised inspection report as unsuitable for acceptance was allowed to proceed through the approval process and be almost entirely unloaded before any formal investigation was conducted.

With over 55,000 metric tonnes already discharged by yesterday morning, the organisation said the issue had moved beyond a mere procurement dispute and raised serious concerns about accountability, regulatory oversight and the protection of public funds.

The FLO called for an immediate independent investigation by the Auditor General, the Commission to Investigate Allegations of Bribery or Corruption, the Lanka Coal Company and relevant technical authorities, warning that failure to act could result in significant financial losses to the state and further undermine public confidence in the management of strategic energy procurements.

By Ifham Nizam

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