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No import of vehicles anytime soon as govt. is concerned about drain on exchange reserves – Siyambalapitiya

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Ranjith Siyambalapitiya

By Rathindra Kuruwita

The government has not decided on a timeline to allow the free import of vehicles to the country, State Minister of Finance, Ranjith Siyambalapitiya says. He said that importing vehicles would be a drain on the country’s foreign currency reserves.

“We have allowed the import of 250 buses and 750 vans for tourism. We are looking into whether and how we can relax the import of vehicles. That’s it.”

Siyambalapitiya said there is one vehicle for five Sri Lankans. The government has appointed an expert committee to examine whether the country is ready to allow the import of private vehicles.

“We will decide what to do, based on what the Committee says. Some groups, like vehicle importers, are adversely affected by the restrictions on vehicle imports. However, we must look at national priorities.”

The State Minister said there will be a massive demand for vehicles, if the government relaxes the restrictions on vehicle imports. This would lead to a large outflow of foreign reserves.

“We have not allowed vehicle imports since 2020. The demand probably is huge now”.

Siyambalapitiya said there are sporadic rumours that the government will allow vehicle imports soon. “I don’t know how to make these videos and how they come with this idea,” he added.

He also said that they are closely monitoring the vehicles imported under a scheme to allow migrant workers to import vehicles.

Siyambalapitiya said that restructuring domestic debt was controversial and that the biggest burden of the restructuring was borne by the EPF.

“There are 2.7 million beneficiaries and last year, we promised to pay them an interest rate of 9 percent until 2026. However, at the end of 2023, we realized we can give a higher interest rate because of the good investments we had made with the fund. We decided to give an interest of 13 percent for 2023. What we will pay for 2024 will be decided in 2025,” he said.

He added that this is the first time that EPF beneficiaries received an interest rate of 13 percent after 2009.

Siyambalapitiya said in the past four months, the Central Bank has bought 1.2 billion dollars from the local market. If the Bank did not make this intervention, the exchange rate of the dollar will be about 250 rupees.

“This would have badly affected the exporters.”

Sri Lanka has exceeded its state revenue target for the first quarter of 2024 by 6 percent, Siyambalapitiya said, adding that the government expects a revenue collection of 4,106 billion rupees in 2024.

The State Minister said the government wants its revenue to be at least 14 percent of the GDP and that he believes the revenue target for the year can be achieved.

The Sri Lankan government collects revenue through three institutions, i.e., Sri Lankan Customs, the Excise Department, and the Inland Revenue Department, and has collected 834 billion rupees (about 2.8 billion dollars) in the first quarter, compared with an expected revenue target of 787 billion rupees (about 2.6 billion dollars) in the period, he said.

Siyambalapitiya mentioned that cheques will no longer be accepted to pay income tax. Over the years a large number of people have paid their income tax by cheque and a lot of these cheques have bounced.

The State Minister said that any government that comes into power will have to follow the current economic policies. There will be a collapse akin to 2022, if there is a diversion from the current path.



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Ex-lawmakers group calls for IPU’s intervention to check “irregularities” in Parliament

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Association of Former Members of Parliament of Sri Lanka has requested the Inter-Parliamentary Union to inquire into, what the group calls, institutional irregularities in Parliament.

The Association cited the decision taken by the Attorney General not to appear for Speaker Dr. Jagath Wickremeratne, in a case filed in the Court of Appeal by sacked Deputy Secretary General of Parliament Chaminda Kularatne, to underscore the need for IPU’s intervention.

The following is the text of the letter signed by former JVP MP Premasiri Manage, on behalf of the Association:  We write to Your Excellency on behalf of the Association of Former Members of Parliament of Sri Lanka, an independent body representing former legislators who have served the Parliament of Sri Lanka across successive administrations. The Association is committed to upholding democratic values, parliamentary traditions, institutional integrity, and the rule of law within Sri Lanka’s governance framework. It is with grave concern that we bring to your attention a series of developments that, in our respectful view, seriously undermine parliamentary democracy, administrative fairness, and institutional independence in Sri Lanka.

1. Unlawful Cancellation of Parliamentary Pensions

The present Government of Sri Lanka has, through actions that we consider both unlawful and unethical, cancelled the pension entitlements of former Members of Parliament. This decision appears to have been taken arbitrarily, without adherence to established legal principles, legitimate expectations, or due process, thereby undermining the dignity and security of those who have served in the national legislature.

2. Illegal and Malicious Interdiction of the Deputy Secretary General of Parliament

We wish to draw urgent attention to the interdiction of the Chief of Staff and Deputy Secretary General of Parliament, which raises serious concerns regarding abuse of authority and interference in administrative due process. According to material presently before the Court of Appeal of Sri Lanka (CA/Writ Application No. 109/2026), the interdiction:

• Was imposed through the Parliamentary Staff Advisory Committee (PSAC), which lacks lawful authority to exercise such disciplinary powers, rendering the action ultra vires;

• Was based on a preliminary inquiry conducted without proper legal mandate, thereby invalidating the process from its inception;

• Was not the result of an independent administrative determination, but was carried out following the direct personal intervention and influence of Speaker, Dr. Jagath Wickramaratne;

• Appears to have been driven by personal and retaliatory considerations, amounting to a malicious exercise of authority rather than a lawful disciplinary process.

Importantly, it is also noted that the Attorney General of Sri Lanka has withdrawn from appearing on behalf of the Hon. Speaker in the related proceedings, reportedly in view of serious procedural irregularities associated with the interdiction process. The Speaker has consequently retained private legal counsel. This development strongly indicates that serious legal and procedural defects exist in the interdiction process, further reinforcing concerns regarding its legality and propriety. It is therefore evident that the lawful disciplinary framework vested in the Secretary General of Parliament was bypassed, resulting in a serious violation of the principles of natural justice, institutional independence, and the rule of law.

3. Discrimination and Harassment within Parliamentary Administration

We are also deeply concerned by credible allegations of discrimination and harassment within the parliamentary administrative structure, which, in our respectful view, have arisen as a result of the interference of the present Speaker in the administrative affairs of Parliament, thereby undermining the independence of the parliamentary administration. These concerns include:

• Discriminatory conduct affecting senior officials, including the Deputy Secretary General;

• Harassment and discriminatory treatment of female staff members within Parliament;

• The resignation of one female officer due to such circumstances;

• Confirmed findings of harassment in respect of another female officer attached to the Information Technology Division, as established by a report submitted by a former High Court Judge.

These incidents indicate a disturbing pattern of administrative misconduct and a failure to ensure a safe, independent, and professional working environment within Parliament.

3. Broader Institutional Concerns

The above matters collectively raise serious concerns regarding:

• The erosion of the independence of parliamentary administration;

• Abuse of authority and concentration of power;

• Undermining of due process and established legal frameworks;

• A broader decline in adherence to democratic governance standards.

 Request for Engagement

In light of the foregoing, we respectfully request that the Inter-Parliamentary Union:

1. Intervene and monitor the situation;

2. Call for reports and clarifications from the Speaker and senior parliamentary administration;

3. Facilitate independent review and observation of relevant judicial proceedings;

4. Promote accountability and restoration of institutional integrity within Parliament.

Given the IPU’s distinguished role in safeguarding parliamentary democracy and promoting good governance worldwide, we firmly believe that your timely engagement will contribute significantly to restoring institutional integrity and public confidence in Sri Lanka’s Parliament.

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Power and Energy Minister, Ministry Secy resign over coal probe

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Power and Energy Minister Kumara Jayakody and Ministry Secretary Prof. Udayanga Hemapala have resigned from their posts.According to the President’s Media Division (PMD), the two officials submitted their letters of resignation to President Anura Kumara Dissanayake this afternoon.

The resignations come in the wake of a Special Presidential Commission of Inquiry appointed to probe possible unlawful activity and financial irregularities in coal procurement and power generation.

The PMD said the decision was taken to ensure that the Commission’s work proceeds without interference or perceived influence from individuals holding office.

Minister Jayakody, in his resignation letter, noted that following the appointment of the Commission, he had requested that investigations into coal imports, since 2009, be referred to the Criminal Investigation Department (CID), describing it as part of the government’s anti-corruption mandate.

He added that the inquiry should be conducted independently and without bias, and said his continued presence in office could be perceived as an obstacle to the process.

Prof. Hemapala, in his resignation letter, said his decision was intended to facilitate the commencement of investigations and ensure a transparent and independent process, the PMD said.

The Special Presidential Commission was recently appointed to examine allegations of irregularities in coal imports and electricity generation over a prolonged period and to recommend corrective measures.

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President appoints Commission to probe irregularities in coal imports from inception of Norochcholai

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President Anura Kumara Dissanayake yesterday appointed a Presidential Commission of Inquiry to investigate alleged irregularities in coal imports and electricity generation, amid concerns over possible financial losses to the State.

The President’s Office said the Commission would examine transactions from the inception of coal-based power generation in Sri Lanka up to April 16, 2026, focusing on operations linked to the CEB-affiliated Lanka Coal Company (Pvt) Ltd., its successors, and private suppliers.

The three-member body is chaired by Supreme Court Justice Gihan Kulatunga, with Court of Appeal Justice Adithya Patabendige and High Court Judge Sanjeewa Somaratne as members. Former Ministry Secretary P.V. Bandulasena has been appointed Secretary to the Commission.

Appointed under the Special Presidential Commissions of Inquiry Act No. 07 of 1978, as amended, the Commission has been mandated to scrutinise procurement procedures, supply chains, quality testing, and operational processes connected to coal imports and utilisation.

The Commission has been tasked with the following mandates:

• To determine whether irregularities or illegal acts occurred in the procurement process for coal imports and to assess any resulting financial loss to the government.

• To investigate whether substandard coal was imported during the relevant period and to examine the entire associated workflow, including procurement, supply, quality testing, operational, and utility processes.

• To ascertain whether electricity generation using imported coal reached the expected levels of efficiency and productivity.

• To investigate whether legal or financial irregularities or illegal acts occurred during the power generation process if substandard coal was indeed utilized.

• To examine whether there were any breaches of expressed terms or conditions in these processes and, if so, whether measures such as withholding payments or other compensatory actions were taken.

• To identify the political authorities, government officials, officers of Lanka Coal Company (Pvt) Ltd, suppliers, or their agents responsible for any such incidents and to recommend future action to be taken against them.

• To propose measures to prevent the recurrence of such alleged malpractices or illegal acts in the future and to ensure proper governance and integrity.

In addition to the above, the Commission will also report on any other alleged malpractices or illegal acts related to coal importation and electricity generation, and recommend preventive measures to address such issues.

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