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FSP faults govt. for tax amnesty

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The Frontline Socialist Party (FSP), a splinter group of the JVP, has faulted their erstwhile comrades in the government for including Clause 1.9 in the 2025 Budget Technical Notes, which allows tax-evading businesses to settle unpaid taxes from 2022–2023 within six months without penalties or interest.

Addressing a press conference at the party headquarters in Nugegoda on Friday FSP Education Secretary Pubudu Jagoda highlighted that existing laws, such as the Inland Revenue Act No. 24 of 2017, mandate a 1.5% monthly interest (18% annually) and a 25% fine for tax evasion. However, the new clause waives these penalties, costing the government billions in lost revenue.

“However, the Clause 1.9 of Technical Note of the Budget proposals presented by President Anura Kumara Dissanayake proposes if these tax evaders could settle their taxes due from 2022 to 2023 within six months, the provisions of the Inland Revenue Act No. 24 of 2017 and the Tax Act No. 14 of 2022 regarding penalties for unpaid taxes would not apply for such defaulters.

We know that Section 157 of the Inland Revenue Act No. 24 of 2017 specifies that if a taxpayer fails to pay the due taxes, they must pay the applicable interest. Section 159 clearly states that an interest rate of 1.5% per month must be charged, which amounts to 18% per year. Additionally, a 25% fine must be paid. Now, according to the budget, the government is saying that these provisions of the law do not apply, and they will not collect these fines and interest. Clause 1.9 states that if unpaid taxes from 2022–2023 are settled within six months, the provisions of the Inland Revenue Act No. 24 of 2017 and the Tax Act No. 14 of 2022 regarding penalties for unpaid taxes will not apply.

For example, WM Mendis and Company, which evaded Rs. 1.5 billion in taxes, would owe Rs. 1 billion in interest over five years, but the government is forgoing this. Jagoda revealed that companies evaded Rs. 243 billion from March 2023 to December 2024, with total unpaid taxes reaching Rs. 1,068 billion. Meanwhile, ordinary citizens, including 580,000 families, pay nearly Rs. 40,000 monthly in taxes, facing heavy burdens while the government offers relief to fraudulent businesses. The FSP called on former comrades in government to clarify their stance on this issue.



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Three arrested with narcotics valued at Rs123 million at BIA

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Three Sri Lankan male passengers who arrived from Muscat by flight no. OV 437 on Saturday (24) have been arrested by officers attached to the  NCU at BIA as they were found  to be carrying 12,306 grams of Cannabis class narcotics (suspected as Hashish & Kush) valued at 123 million rupees.

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Navy intercepts 02 narcotics-laden trawlers with 11 suspects in southern seas

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Building on its success in seizing major narcotic stocks in 2025, the Navy continued to support the “A Nation United” National Mission in 2026. In continuation of these efforts, during an
operation conducted on the high seas south of Sri Lanka, the Navy apprehended eleven (11) suspects aboard two local multi-day fishing trawlers suspected of drug smuggling.

Based on shared information, by the Sri Lanka Navy and Police, this special operation was conducted off the southern coast, deploying the Navy‟s Offshore Patrol Vessels. The operation
resulted in the interception of a multi-day fishing trawler  suspected of smuggling narcotics, and the apprehension of five (05) suspects on board.

During further operations in the same area, naval units seized another multi-day fishing trawler (01), along with communication equipment and six (06) additional suspects, also believed to be involved in drug smuggling.

This morning (25 Jan 26), the two intercepted fishing trawlers, along with fourteen (14) sacks laden with suspected narcotics and the suspects, were brought to the Dikovita Fisheries Harbour.

An expert examination by the Police Narcotic Bureau confirmed that the fourteen (14) sacks contained more than 184 kilograms of heroin and over 112 kilograms of ‘Ice’ (crystal methamphetamine).

The Deputy Minister of Defence, Major General (Retd) Aruna Jayasekara,  the Commander of the Navy, Vice Admiral Kanchana Banagoda, and the Inspector General of Police,  Priyantha Weerasuriya, inspected the narcotics at the Dikovita harbour.

The Deputy Minister of Defence said  that the current administration has initiated several projects for national development. As a flagship initiative, under the directives and guidance of the President, and under the supervision of the
Ministry of Defence, well-coordinated anti-narcotic raids have been launched.

This effort, part of “A Nation United” National Mission, involves the tri-forces, police, and all intelligence agencies working together under a coordinated plan to ensure that drug smugglers have no opportunity to bring narcotics into the country, he opined. He further stated that despite the national disaster situation, the state machinery, including the tri-forces, the police, and the public at large, remains united in rebuilding the nation, no room will be left for drug trafficking, which poses a severe threat to national security and public safety. Those
who engage in or support drug trafficking, under the cover of fishing activities, will find no escape, he added.

The Deputy Minister also reaffirmed that the tri-forces, police, and all law enforcement agencies are fully committed to their duty of suppressing this menace.

The Deputy Minister of Defence reported that, throughout 2025, a series of highly successful operations were conducted leading to numerous arrests. This was achieved through close coordination and mutual cooperation among the tri-services, the police, the Special Task Force, Police Narcotics Bureau, local law enforcement and international agencies. He noted that this
same spirit of cooperation and commitment has continued into 2026, resulting in the seizure of a large stockpile of drugs.

On behalf of the Honourable President, he extended gratitude to all who contributed to these efforts, specifically acknowledging the Commander of the Navy, the Inspector General of Police, the Police Narcotic Bureau, and the crews of the Navy’s Offshore
Patrol Vessels.

Moreover, the Deputy Minister declared that drug smuggling has become a national crisis, fueled by youth involvement and social crime. With borders secured under the “Nation United” National Mission, he warned traffickers to cease operations and urged users to abandon the destructive habit.

The Deputy Minister urged the public to report suspected drug smugglers to law enforcement via the hotlines 1818 or 1997 and also commended the role of media institutions and journalists in raising public awareness about the dangers of narcotics through responsible reporting.

Meanwhile, the two (02) multi-day fishing trawlers, along with a haul of narcotics, eleven (11) suspects, and communication equipment, were handed over to the Police Narcotic Bureau for
further investigation and legal proceedings.

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Indonesian Naval Ship ‘KRI SULTAN ISKANDAR MUDA – 367’ departs island

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The Indonesian Naval Ship ‘KRI SULTAN ISKANDAR MUDA – 367’, which arrived in Sri Lanka for logistics replenishment and a goodwill mission, departed the island on 23 Jan 26.

The Sri Lanka Navy bade a customary farewell to the departing ship at the Port of Colombo, following naval traditions.

During the stay in Sri Lanka, crew members of the ship visited some popular tourist destinations within the city of Colomb

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