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Head of Economic Oversight Committee to move CIABOC against revenue authorities

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Mahindananda Aluthgamage

‘Parliament amended law to favour tax defaulters, with defaulter being able to drag appealing process for 15 years’

By Shamindra Ferdinando

Chairman of Sectoral Oversight Committee on National Economic and Physical Plans Mahindananda Aluthgamage yesterday (05) said that he intended to utilise Anti-Corruption Act No 09 of 2023 against top government revenue officials who neglected their responsibilities.

The former minister said so when The Island asked him as to what specific measures were being contemplated in the New Year to compel Inland Revenue Department (IRD), Customs and Excise Department to meet the revenue targets.

Kandy District lawmaker Aluthgamage said that increased revenue last year, following repeated interventions made by Parliament, revealed that revenue collection systems/procedures had been corrupted to the core. Regardless of who wielded political power at any given time, the system favoured the tax defaulters and in turn also benefitted corrupt officials to look the other way, the SLPPer said.

The utterly flawed and corrupt system had been put in place by Parliament that, over the years, amended relevant laws at the behest of the Finance Ministry, the ex-Minister said. The bottom line is those responsible for revenue collection brazenly represented the interests of big business regardless of the consequences, MP Aluthgamage said.

The new Anti-Corruption Act came into operation on Sept 15, 2023. Lawmaker Aluthgamage said that there were specific provisions in it to deal with negligent and corrupt officials.

The enactment of the new law automatically repealed the Bribery Act (Chapter 26), the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) Act No 19 of 1994 and the Declaration of Assets and Liabilities Law No 01 of 1975.

Responding to another query, MP Aluthgamage emphasized that in spite of improvement in revenue collection last year the need to establish a powerful revenue authority to monitor and regulate the three state income collecting bodies couldn’t be forgotten.

In addition, the Department of Motor Traffic, too, should be placed under close watch as it was riddled with corruption, the MP said.

The parliamentarian added that the failure on the part of successive governments to implement the Revenue Administration Management Information System (RAMIS), acquired from Singapore at a colossal cost, was yet to be fully functional. “The officialdom is bent on continuing with flawed systems for obvious reasons,” the ex-Minister said.

The vast majority of people, struggling to make ends meet, hated the new tax regime due to uncollected taxes, penalties and interests from those who could pay amounted to as much as Rs 1,000 bn by Dec 31, 2023.

MP Aluthgamage said that he strongly believed that corrupt officials should be dealt in terms of the new Anti-Corruption Act by the CIABOC.

President Ranil Wickremesinghe on Dec 21, 2023, appointed W. M. N. P. Iddawala, former Judge of the Court of Appeal and Deputy Secretary General of Parliament, as the new Chairman. Bernard Rajapakse, former Senior Deputy General Manager of the People’s Bank, and Chethiya Goonesekera, PC and Additional Solicitor General of the Attorney General’s Department, were the other members of the Commission.

The new team replaced Justice Eva Wanasundera (Chairperson), Justice Deepali Wijesundera and retired DIG Chandra Nimal Wakishta who once served as the head of State Intelligence Service (SIS). However, retired Justice W.K.D. Wijeratne remains the Director General, CIABOC.

MP Aluthgamage stressed that the recovery of unpaid taxes, penalties and fines was as important as expanding the tax base in line with the government overall strategy meant to strengthen the economy. That was one of the major IMF conditions the government had no option but to address, MP Aluthgamage said, urging political parties not to undermine government efforts.

Addressing the media at the Presidential Media Division (PMD) in late Sept 2023, MP Aluthgamage charged that incompetence and corruption at the three main revenue gathering bodies caused the government significant losses. He estimated the annual losses at approximately Rs 500 bn, with Customs being the main culprit responsible for failing to collect as much as Rs 360 bn.

The lawmaker said that those under a cloud over losses caused to the government could challenge him if they felt his assessments weren’t accurate. The one-time SLFPer said that though ill-fated political decisions caused the rapid deterioration of the economy during President Gotabaya Rajapaksa’s presidency, no one could deny the despicable role played by revenue collecting bodies.

The MP alleged that politicians and officials had colluded with the big business to amend the relevant laws to prolong the appeal process. That was the primary tool used by the interested parties, the former minister said, adding that the Parliament couldn’t absolve itself of the responsibility for this pathetic state of affairs.

Aluthgamage said that he told President Wickremesinghe that PAYE (Pay as You Earn) tax was not required at all if the government ensured proper collection of taxes.



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Sun directly overhead Kokkuvil, Nallur, Kodikamam and Nagar Kovil at about 12.11 noon today (28)

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The sun is going to be directly over the latitudes of Sri Lanka during 28th of August to 07th of September due to its apparent southward relative motion.

The nearest places of Sri Lanka over which the sun is overhead today (28) are Kokkuvil, Nallur, Kodikamam and Nagar Kovil about 12.11 noon.

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Eight politicians in drug kingpin probe

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Police to arrest and question four former ministers, others over links to Basik

By Norman Palihawadane

Police are investigating alleged links between suspected major drug trafficker Shiran Basik and a number of prominent politicians, with eight of them due to be arrested and questioned as investigators widen their probe into his financial dealings and network of associates, police headquarters, according to a senior police officer.

Among those set to face questioning include a sitting MP, four former ministers, and at least one of them is a female. Police are also investigating allegations that Basik provided large sums of money to politicians during election campaigns and extended other financial and material benefits to political figures.

Investigators are also looking into claims that two politicians were provided with facilities to construct houses and hotels, while efforts are under way to establish the extent of political support and assistance allegedly provided to Basik.

The Colombo Central Crime Investigation Bureau (CCIB) is expected to question the politicians based on information reportedly disclosed by Basik during interrogation. Two electoral organisers are also expected to be taken into custody as part of the ongoing investigation, according to police sources.

Meanwhile, statements are being recorded from managers and employees of several businesses allegedly linked to Basik, while investigators continue to examine information and records recovered from his mobile phone.

Basik, 48, was brought back to Sri Lanka on August 14 after being arrested in Dubai and deported. He was taken into custody by officers of the Criminal Investigation Department’s Airport Unit at Bandaranaike International Airport and subsequently handed over to the CCIB for further investigation.

Police initially obtained a 72-hour detention order to question Basik before securing approval to detain him for 90 days.

Basik, a resident of Dehiwala, is facing investigations over alleged large-scale drug trafficking as well as firearms, and unlawful assembly of weapons-related offences. Police are also examining whether he had any involvement in recent prison-related incidents and have said information has emerged linking him to the 2012 Welikada Prison riot.

The investigation has also expanded to Basik’s alleged assets and business interests in Sri Lanka and overseas.

Police have said information uncovered during questioning indicates that Basik had claimed ownership of five hotels along Colombo’s Marine Drive. Investigators have also identified two houses and two mobile phone shops in Boralesgamuwa allegedly linked to him.

A court has ordered a comprehensive examination of bank accounts linked to Basik, with the Financial Intelligence Unit of the Central Bank of Sri Lanka to conduct a review of his financial accounts. A separate investigation into his wealth and properties is being conducted by the Illegal Assets Investigation Division.

Investigators are also examining claims that Basik owns properties, including hotels and vehicles, in several European countries, as well as a high-value vehicle in Dubai. These claims remain subject to further investigation.

Basik had left Sri Lanka for Dubai in 2018, where police said he lived a lavish lifestyle while operating businesses. He was arrested by UAE authorities before being deported to Sri Lanka.

During initial questioning, Basik told investigators that Dubai police had stopped and searched him at a shopping mall and examined his mobile phone. He claimed that footage relating to Iranian missile and drone attacks was found on the device and that he was subsequently questioned over alleged links to Iran.

Police are continuing to examine the circumstances surrounding his arrest and deportation, as well as the information contained in his mobile phone and other evidence gathered during the investigation.

The ongoing probe is being conducted under the supervision of Senior DIG Ranmal Kodituwakku and SSP Kamal Ariyawansa.The allegations against Basik and the politicians named in connection with the investigation have not been established in court, and the investigations remain ongoing.

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CJ first SC judge to benefit from 22A, if enacted: BASL

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The Bar Association of Sri Lanka (BASL) has opposed the proposed “Twenty-Second Amendment to the Constitution”, saying it raises serious concerns over judicial independence and the rights and interests of the public.

In a statement signed by BASL President Rajeev Amarasuriya and Secretary Nalin De Silva, the association said it had challenged the constitutionality of the proposed amendment before the Supreme Court.

The BASL noted that the Chief Justice would be the first Supreme Court judge to benefit from the proposed amendment if it becomes law. It also referred to widespread speculation that the amendment was being expedited to facilitate an extension of the incumbent Chief Justice’s tenure, which is due to end on December 1, 2026.

Full text of the statement:

“The Bar Association of Sri Lanka (BASL) has taken a principled position opposing the Bill titled the “Twenty-Second Amendment to the Constitution” on the basis that it raises serious concerns regarding the independence of the Judiciary and the rights and interests of the people. Accordingly, the BASL has challenged the constitutionality of the proposed amendment before the Supreme Court.

“It is observed that it will be the Honourable Chief Justice who will be the first Judge of the Supreme Court who will benefit from the 22nd Amendment, if this Bill is enacted into Law.

There is widespread belief that this amendment is being rushed to facilitate the extension of the tenure of the Honourable Chief Justice which would otherwise complete on 1st December 2026. In this backdrop, in the recent past, we have witnessed allegations being made in Parliamentary Proceedings as well as on Social Media concerning the Judiciary including the incumbent Chief Justice.

“During this period, the BASL has also been subjected to unfounded attacks on social media and other platforms.

“The Judiciary, like every other institution exercising public power, must remain subject to legitimate scrutiny and accountability. Judgments, judicial conduct and the administration of justice may properly be subjected to fair, informed and responsible criticism. Where credible concerns or allegations arise regarding any member of the Judiciary, including the Chief Justice, they should be examined objectively and addressed through the appropriate constitutional and parliamentary processes which are in place, with due regard to fairness and due process.

“At the same time, everyone must exercise responsibility when making allegations concerning individual judges, lawyers and others. Personal attacks based upon unsubstantiated allegations can undermine public confidence in the administration of justice and affect the independence and integrity of the judicial process and the system of justice

“Judicial independence is not intended to shield any individual from legitimate scrutiny or accountability. It is a safeguard for the people, ensuring that disputes are determined impartially and that individual rights, the Rule of Law and the constitutional order are protected.

“The BASL therefore calls upon all organs of the State, all parties concerned and the media to respect the role of the Judiciary and the system of administration of justice, while ensuring that any genuine concerns are addressed fairly, responsibly and through the procedures established by the Constitution and the law.”

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