C’mbo Port ‘Ice’ detection:

By Shamindra Ferdinando

A senior police official said that the Special Investigation Unit (SIU), inquiring into alleged loopholes and irregularities in the August 31 raid carried out at the Colombo Port, might seek clarification from the US Embassy here.

The official said so responding to The Island query regarding the need for the SIU to get in touch with the US against the backdrop of its own admission that Senior DIG Ranmal Kodituwakku had been informed by the US Drug Enforcement Administration regarding the drug stash on 31 August.

The official said that the SIU already recorded SDIG Kodituwakku’s statement in connection with the investigation.

Earlier, the US Embassy in Colombo declined to comment on the SIU probe into the recent narcotics detection jointly made at the China-managed Colombo International Container Terminal (CICT) by the US Drug Enforcement Administration’s (DEA) New Delhi Country Office and the Sri Lanka Police.

US Embassy spokesperson said that the mission wouldn’t add to their press release, issued on 02 September, in the immediate aftermath of the raid.

Police Headquarters, on 11 September, declared that the Central Crime Investigation Bureau (CCIB) was conducting investigations into the recovery of 463 kg of Crystal Methamphetamine (‘Ice’). Police never acknowledged the role played by the US in the operation.

Among those arrested in connection with the Colombo Port narcotics detection were three Pakistani passport holders. In our previous report, regarding the Colombo Port detection, we inadvertently stated that the police didn’t acknowledge the role played by the US.

The police official said that once the IGP received the SIU report, he would take necessary action, depending on the findings.

‘Undervalued goods’ in foreign currency transfer case:

Counsel appearing for the first suspect in the foreign currency transfer case have urged the Attorney General to direct the FCID to investigate how police alleged, that goods, for which funds had been remitted by banks, had not been imported into Sri Lanka, in the context of the FCID subsequently reporting to Courts in paragraph 9 of their report, dated 20th August 2026, that, in fact, goods had come to Sri Lanka and cleared by Sri Lanka Customs!

M.M. Zuhair PC with Priyantha Nawana PC for the first suspect Jiffry Mohamed of A Y Investments Impex Ltd., of Bankshall Street, Colombo 11, in their letter to AG have raised the question as to why the police are not investigating extensively, the assertion made to Court by the police themselves in para 9, that goods had been undervalued and cleared by customs at the Sri Lanka end.

“What remains to be done is for the police to do a comprehensive and diligent investigation into the goods received and cleared by the importers. The police must, furthermore, investigate the complainant in this case, namely the Sri Lanka Customs, as to how the complainant facilitated the importers in clearing the goods, which the police allege were undervalued! They must also investigate whether the goods were cleared by Customs by accepting ‘undervaluing’ and accepting the reduced Customs duty, Value Added Tax (VAT) and other taxes, such as Social Security Contribution Levy (SSCL), and whether the Customs deprived the Inland Revenue of its legitimate dues that should have eventually benefitted the country and its citizens, the letter to the AG has pointed out.

“The Special Import License and Payment Regulations No 1 of 2011” made under the Import and Exports (Control) Act No 1 of 1969 facilitated the procedure for Advance Payments, enabling the licensed banks to make telegraphic transfers to overseas exporters in due compliance with the said Regulations. We submit that no offence or irregularity was committed by anyone facilitating the transfer of funds overseas to foreign companies, which have exported the goods direct to the importers who paid for the goods.

“It is submitted that all transactions were done through licensed commercial banks, all of which are subject to the strict regulation, superintendence and control by the Central Bank of Sri Lanka where due diligence had always been exercised, as commercial banks were obliged to do under the Special Import and Payment Regulations, enacted in 2011.

“Police could not have come to a definitive accusation against anyone without any investigation on the source and the legitimacy of the multiple advance payments, which are lawful under the 2011 Advance Payment Regulations.

“Police have not conducted any meaningful investigation, whatsoever, either through due process or based on the documents available in the banks:

(a) in respect of the source of the monies received and/or deposited into the suspect’s above-named company or his 34 associate companies from the importers’ brokers, whose details have been furnished by our client to the investigators, or

(b) in respect of the overseas exporters who received the funds transmitted through approved Sri Lankan banks after exercising due diligence conducted by each of the 13 Sri Lankan approved banks, including State Banks.

“Without such vital investigations (A) of the importers who deposited such large sums of money as advance payments in accordance with the Advance Payment Regulation No 1 of 2011 as well as (B) of the goods exported to Sri Lanka in terms of the said 2011 regulations by the overseas exporters, the allegation against the suspect and his associate companies of money laundering is absolutely untenable and unacceptable, Counsel for the suspect have said.

The first suspect’s lawyers have requested the AG to advise and guide the police to do a “just, fair and complete investigation” and that the suspect, who is in remand for the third month, could do better to assist the police in the investigation if he is enlarged on bail.

United Trade Unions Convener and Samagi Jana Balawegaya (SJB) Executive Board Member Ananda Palitha has urged the Bar Association of Sri Lanka (BASL) to join the large scale protests, planned for 25 September, to pressure the government to seek approval for the 22nd Amendment at a referendum.

Emphasising that the BASL relentlessly campaigned against the 22nd Amendment, Palitha requested that the BASL throws its full weight behind the protest planned near Polduwa Junction, near Parliament, on 25 September, and also launch demonstrations, outside courts, countrywide.

The trade unionist intervened after the BASL declined to join the joint Opposition protest planned for 24 September near Polduwa Junction.

Responding to The Island queries, Palitha said everything possible would be done to stage a successful protest against the government. According to him, the invitation was extended to the BASL for the historic protest against a draconian Amendment as the organisation indicated its inability to join political parties on the first day of the campaign. (SF)