News
Finance Ministry allows liquor company to operate without paying taxes: Ways and Means Committee
By Shamindra Ferdinando
Chairman of the Committee on Ways and Means Patali Champika Ranawaka on Tuesday (12) alleged that the Finance Ministry had allowed the operation of a distillery in spite of that company failing to pay taxes.
The former minister said that the country lost millions for want of political will to recover what that company owed the Treasury.
Addressing the media at the Thalakotuwa office of Eksath Janaraja Peramuna, its leader Ranawaka questioned the failure on the part of the Finance Ministry to cancel the license issued to that company. In spite of specific instructions issued in that regard, the Finance Ministry and the Excise Department were yet to take expected action. Lawmaker Ranawaka estimated the weekly loss of revenue at approximately Rs 100 mn.
Pointing out that President Ranil Wickremesinghe held the finance portfolio, MP Ranawaka said that SLPPers Shehan Semasinghe and Ranjith Siyambalapitiya functioned as State Finance Ministers. They should pay immediate attention to the issue at hand, the former JHU stalwart said.
Responding to The Island queries, MP Ranawaka said that parliamentary committees that had been tasked with streamlining the operations didn’t receive the cooperation of relevant government institutions responsible for revenue collection.
The ex-minister also found fault with two major state banks for withholding data pertaining to non-performing loans. However, the National Savings Bank (NSB) has complied with the instructions issued by Parliament, MP Ranawaka said, drawing the attention of the Finance Ministry to the developing situation.
The bone of contention is whether certain influential persons undermined their efforts to streamline revenue collection at a time the people were up in arms over increasing of the Value-Added Tax (VAT) from 15% to 18% and imposing it on nearly 100 items that had been hitherto exempted from the same.
MP Ranawaka said that the IMF has told the Wickremesinghe-Rajapaksa government to achieve revenue targets that weren’t feasible at all. In comparison with 2022, the IMF wanted the government to increase revenue to 6.5% of the Gross Domestic Product (GDP) by 2025, the MP said, declaring that no country experiencing a severe difficult economic crisis could achieve such targets. According to him, the expected revenue was approximately Rs 2,000 bn whereas the government intended to collect an additional Rs 600 bn by way of VAT.
But certain companies and individuals had been allowed to operate outside the law and their sordid operations were being facilitated, the ex-minister said, pointing out the inordinate delay in amending what he called the tax appeal process. The Parliament as the institution accountable for public finance should be held responsible for this situation, MP Ranawaka said.
For want of a clear system in place, profit-making state enterprises refrained from paying relevant taxes to the Treasury. Referring to the latest available statistics, MP Ranawaka questioned why the CPC that had earned a profit of Rs 88 bn was yet to be taxed. The ex-minister said that though 52 state enterprises obtained a profit of Rs 303 bn they weren’t taxed.
The CEB made quite significant profits in November and this month but the government seemed not interested in taxing that institution, he said. The parliamentarian said that the possibility of some 100 rural hospitals facing closure for want of proper attention at every level should be examined against the backdrop of successive governments failing to streamline revenue collection.
Commenting on the sharp increase in the number of Sri Lankans migrating to Australia and other countries, particularly for education, the MP said that it was a very heavy burden on the economy.
Alleging that the government lacked a proper strategy to meet the daunting challenges, the former minister said that if 18% VAT was slapped on fuel with effect from January 01, 2024 a liter of petrol (92 Octane) would go up by Rs 38 and diesel by Rs 34.
News
Prison mayhem leaves at least 26 dead; five officers killed in revenge violence
At least 26 people, including five prison officers and 20 inmates, have been confirmed dead following violent unrest at Negombo Prison, hospital sources said yesterday, as authorities struggled to restore full control over the facility.
According to unconfirmed reports the prison officers were killed by rioters yesterday morning, in retaliation, and weapons carried by those officers were grabbed by them.
Negombo General Hospital Director Consultant Dr. Pushpa Gamlath said nearly 100 injured persons had been admitted, following the clashes, and eight of the critically wounded had been transferred to the National Hospital, in Colombo, for further treatment.
The violence, which initially broke out on Sunday (5) between remand prisoners and convicted inmates, left two inmates dead and 38 others injured before being temporarily brought under control.
However, tensions flared again on Monday (6), with prison officials reporting renewed unrest inside the facility despite earlier assurances that the situation had stabilised.
Police said the initial confrontation was triggered by a dispute linked to the exposure of an alleged drug trafficking network, operating within the prison, and was reportedly orchestrated by a drug trafficker, identified as Suresh, who is said to have links to an underworld figure known as ‘Booru Moona’.
The violence rapidly escalated, with female inmates staging a protest on the Prison roof in support of those involved in the clashes, while relatives gathered outside demanding information on detainees. Police later facilitated visits for selected family members to hospitalised inmates.
The Negombo Prison, which houses around 1,800 remand and convicted inmates, descended into widespread disorder as rival groups clashed, with reports indicating that the violence later spread beyond the initial confrontation.
Authorities said rioting inmates had allegedly seized firearms during the renewed unrest on Monday, prompting heightened security measures.
The Sri Lanka Air Force deployed drones for aerial surveillance and a Bell 412 helicopter to monitor the situation, while additional military personnel were sent to reinforce security around the prison.
Prisons Department spokesperson A.C. Gajanayake said a special investigation team had been appointed, under the direction of the Commissioner General of Prisons, to probe the incident, while a separate police investigation is also underway.
Justice Minister Harshana Nanayakkara told The Island that he had called for a detailed report on the disturbances.
By Norman Palihawadane
News
Cleaner, cheaper electricity gathers momentum with rapid progress in 50 MW Mannar wind power project
Sri Lanka’s drive towards cleaner and cheaper electricity gathered fresh momentum with the reported rapid progress in the 50 MW Mannar Wind Power Project, which is expected to produce the lowest-cost wind-generated electricity in the country’s history while saving billions of rupees in annual fuel imports.
The Ministry of Energy announced that the first wind turbine for the project had already arrived in the country, while the remaining turbine components have reached the Port of Trincomalee and are currently being unloaded, signalling a major milestone in the construction of one of the country’s key renewable energy ventures.
The project, inaugurated by President Anura Kumara Dissanayake, in January this year, is expected to become a cornerstone of the government’s strategy to transform Sri Lanka’s electricity sector by expanding renewable energy generation and reducing dependence on imported fossil fuels.
According to the Ministry, electricity generated by the Mannar wind farm will be purchased at USD 0.0465 (approximately Rs. 14.37) per unit, making it the lowest tariff ever secured for wind-generated electricity in Sri Lanka.
Energy experts say the competitive tariff demonstrates the growing economic viability of renewable energy and could help stabilise future electricity prices.
The Ministry also estimates that once the wind farm is connected to the national grid, Sri Lanka will save approximately Rs. 4.7 billion annually by reducing the import of fossil fuels required for thermal power generation, easing pressure on the country’s foreign exchange reserves.
The Mannar project is expected to support the government’s ambition of substantially increasing the contribution of renewable energy to the national electricity mix, by 2030, while helping Sri Lanka move towards its long-term goal of achieving net-zero carbon emissions by 2050.
Hayleys Fentons PLC, selected through an international competitive bidding process, is responsible for the installation and maintenance of the wind turbines.
The National System Operator (NSO), operating under the Ministry of Energy, will oversee the integration and management of electricity generated by the project within the national grid.
By Ifham Nizam
News
Tech-enabled trafficking, fake foreign jobs pose growing threat, MPs told
Human trafficking has become increasingly sophisticated, with deceptive overseas employment offers, fraudulent recruitment practices and technology-enabled recruitment emerging as major threats that require a coordinated national response, Members of Parliament were told at a special awareness programme held in the House recently.
Addressing the programme, Secretary to the Ministry of Defence and Chairman of the National Anti-Human Trafficking Task Force, retired Air Vice Marshal Sampath Thuyacontha, said trafficking in persons had evolved significantly over the years and was now closely linked to organised transnational criminal networks.
He warned that fake foreign employment opportunities, fraudulent recruitment agencies, online recruitment platforms, forced labour, sexual exploitation and, in some instances, the use of victims for forced criminal activities had become key challenges confronting authorities.
The awareness programme organised jointly by the National Anti-Human Trafficking Task Force of the Ministry of Defence and Parliament, was aimed at strengthening legislators’ understanding of emerging trafficking trends, the legal and policy framework governing the issue, and the role of Parliament in strengthening anti-trafficking legislation.
MPs were also briefed on the National Strategic Action Plan on Combating Human Trafficking (2026-2030), which focuses on preventing trafficking, identifying and protecting victims, strengthening the criminal justice response and improving coordination among State institutions.
Special emphasis was placed on the growing use of digital platforms for recruitment, deceptive migration practices, labour exploitation and the coercion of victims into criminal activities.
The programme featured presentations by Additional Solicitor General Haripriya Jayasundara, PC, and State Counsel Sajith Bandara of the Attorney General’s Department.
The event, held under the patronage of Deputy Chairperson of Committees Hemali Weerasekara, was attended by Opposition Leader Sajith Premadasa, Public Security and Parliamentary Affairs Minister Ananda Wijepala, Deputy Defence Minister retired Major General Aruna Jayasekara, Members of Parliament and senior officials of the Ministry of Defence, the National Anti-Human Trafficking Task Force and Parliament.
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