News
Public sector importers deprive Treasury of Rs 57 bn in taxes – Customs
Excise Chief won’t act on Parliament instructions
By Shamindra Ferdinando
Chief Financial Officer of Customs, Anura Muthukude, yesterday (26) disclosed that the Treasury would lose taxes amounting to approximately Rs 57 bn owed by public sector importers over the years.
Muthukude said that this was due to the public sector being allowed to clear goods without paying the applicable taxes as directed by successive governments.
This revelation was made at a press conference held at the President’s Media Division (PMD), at Janadhipathi Mawatha, to explain the status of revenue collection undertaken by the Inland Revenue, Excise and Customs.
Of the 38 importers who had been categoried in this regard, 37 were public enterprises, the official said.
The official explained that the Treasury couldn’t, under any circumstances, recover the money owed to them.
Deputy Commissioner General Tax Policy, International Affairs and Legal, Inland Revenue, B.K.S. Shantha, and Commissioner General of Excise, M.J.Gunasiri, explained efforts made by their respective institutions to meet revenue targets set by the government.
The top Customs official said that they had no option but to abide by government directives regarding the release of goods without paying the applicable taxes.
At the onset of the media briefing, the PMD declared that their intention was to clear misconceptions regarding tax collection.
Responding to The Island query regarding the Excise Department’s failure to collect Rs 7.9 bn in taxes from liquor manufacturers in spite of a specific directive issued by the Ways and Means Committee of Parliament, Excise Chief Gunasiri said that he couldn’t go ahead with such instructions unless cleared by the Secretary to the Treasury Mahinda Siriwardana.
Gunasiri declared that he had to abide by instructions issued from the Secretary to the Treasury as he was his Chief Accounting Officer.
According to a statement released by Parliament, on 11 August, the Excise Department hadn’t carried out instructions issued by the Ways and Means Committee, claiming that the Commissioner General of Excise didn’t receive Finance Ministry approval.
Having presented facts and figures related to the revenue collection since 2019, Gunasiri declared that he could comfortably meet the staggering Rs 232 bn revenue target set for 2024 by the government.
Gunasiri said that last year they collected Rs 179 bn and the target had been raised by Rs 53 bn (29.6%) this year and efforts were being made to further strengthen the revenue collection process.
Commenting on continuing controversy over the issuance of liquor licenses with the Opposition repeatedly alleging that liquor licenses were issued to influence crossovers in the run-up to the presidential election, Gunasiri explained the introduction of a new scheme to collect as much as Rs 2 bn from this exercise.
Gunasiri revealed that of that envisaged amount Rs. 1.75 bn had been collected so far.
sought an explanation from Deputy Commissioner Shantha whether the government consulted the Inland Revenue before the recent announcement regarding a sharp salary increase in January 2025. The Department’s views were sought as the government recently declared that implementation of Rs 10,000 salary increase to public servants would compel them to increase current VAT from 18% to 20%.
Shantha politely said that he was not aware of consultations taking place between the government and the Inland Revenue Department.
Chairman of the Expert Committee on Public Service Salary Disparities, Udaya R. Seneviratne, last week told the media at PMD that the basic salary of public service employees would be increased by a minimum of 24% for primary-level service categories. For all government officials, salaries would be gradually increased from an average of 24% to 50%, depending on current fiscal feasibility, Seneviratne said.
Seneviratne added that in light of prevailing inflation and economic conditions, a cost of living allowance of Rs. 25,000 would remain unchanged for three years and would be provided to all government employees for three consecutive years, starting from January 2025, with 2025 being considered the base year.
Shantha explained how the legal process in addition to the Tax Appeals Commission procedures caused quite significant delays in tax collection for obvious reasons.
The official said that anyone who felt being wronged by the Department could move even the Supreme Court. As much as Rs 878 bn had been tied up in legal processes at varying stages and posed serious challenge in meeting collecting targets.
Shantha declared that so far the Inland Revenue was on track to meet the 2024 revenue target of Rs 2024 bn. The official released data to support his declaration.
Muthukude said that they too could meet 2024 revenue target of Rs 1533 bnin spite of serious shortage of workers. “Of 3090 approved cadre, we are operating with 2150 people with a staggering 940 vacancies,” Muthukude said, adding that 30.4% vacancies existed.
News
President Commissions Offshore Patrol Vessel ‘Samudra Vijaya’ into Sri Lanka Navy
The commissioning ceremony of the deep-sea patrol vessel as Samudravijaya, gifted to the Sri Lanka Navy by the United States Coast Guard to enhance the Navy’s operational capabilities, was held under the patronage of Commander-in-Chief of the Armed Forces, President Anura Kumara Dissanayake, on Thursday afternoon (04) at the Eastern Terminal premises of the Port of Colombo.
The vessel was officially handed over to Sri Lanka by the United States Coast Guard on 2 December 2025. Following modifications to meet the operational requirements of the Sri Lanka Navy, the vessel commenced its voyage to Colombo on 20 February 2026 from the United States Coast Guard Yard in Baltimore, Maryland.
The induction of the vessel marks a significant step towards further strengthening the operational capabilities of the Sri Lanka Navy and enhancing the country’s maritime and national security. The vessel is expected to make an important contribution to maritime surveillance, search and rescue operations, protection of fisheries resources, environmental monitoring and the enforcement of international maritime laws and conventions. In particular, it will serve as a vital asset in combating narcotics trafficking and other transnational maritime crimes, which remain major challenges for both Sri Lanka and the wider region.
During the ceremony, President Dissanayake presented the official commissioning warrant to the vessel’s Commanding Officer, Captain Gayan Wickramasuriya. The President subsequently unveiled the vessel’s name board and official insignia before undertaking an inspection tour of the ship. The Commander of the Navy briefed those present on the vessel’s operational readiness, systems and capabilities.
President Dissanayake also signed the vessel’s Distinguished Visitors’ Book and was presented with a commemorative plaque featuring a replica of the vessel.
Among those present were Minister of Ports and Civil Aviation Anura Karunatilaka. Deputy Minister of Defence, Major General Aruna Jayasekara (Retd.), Secretary to the Ministry of Defence, Air Vice Marshal Sampath Thuyacontha (Retd.), Admiral of the Fleet Wasantha Karannagoda, Commander of the Army, Lieutenant General Lasantha Rodrigo, Commander of the Air Force, Air Vice Marshal Vasu Bandu Edirisinghe. Commander of the Navy, Vice Admiral Kanchana Banagoda, Inspector General of Police, Attorney-at-Law Priyantha Weerasooriya, Charge d’affaires to the U.S. Embassy Ms. Jayne Howell, Senior Defence Official and Defence Attache with Spouse Lieutenant Colonel Matthew House, representatives of the Embassy and senior officers of the Sri Lanka Navy.
(PMD)
News
Elders’ home devastated by fire was a ‘house of horror’: Witnesses
Death toll rises to 12: Director remanded
Some residents were allegedly chained
Police have come under public pressure to investigate allegations of inhumane treatmenf the residents at an elders’ home in Batagoda, which was also reportedly used as a care centre for persons with special needs, following a devastating fire that has so far claimed 12 lives.
Eyewitnesses who were among the first responders told the media that several residents had been chained inside rooms at the Senehase Kedella Elders’ Home when the fire broke out on Wednesday. They claimed that rescue efforts were hindered as iron chains could not be removed, and that some residents died while being restrained.
Authorities have not yet verified these claims, and Police said investigations are continuing.
Police spokesman ASP F.U. Wootler, contacted for comment, said there were rumours to that effect, but the Police were not in a position to verify the claims until a report from the Government Analyst was received. He said eight survivors with burn injuries were being treated in hospital.
Meanwhile, the Director of the facility had been arrested and was due to be produced before the Horana Magistrate’s Court, Police said adding that he was remanded till June 11.
The death toll from the fire has risen to 12 as of Thursday morning following the recovery of additional charred remains during ongoing forensic examinations at the site. Six others sustained serious injuries and are being treated at the Horana Base Hospital.
Police said 72 residents were inside the facility at the time of the blaze. Of them, 10 died inside the building, seven were injured and hospitalised, while 51 were rescued and relocated.
Survivors were initially housed at Batagoda Junior School before being transferred with Army assistance to another branch of the same care network in Galpatha.
A magisterial inquiry was conducted on Thursday morning. Horana Magistrate Lakmini Vidanagamage visited the scene. The burnt remains were examined and removed under judicial supervision.
Separately, allegations have emerged that residents were required to pay an admission fee of Rs. 75,000, along with a monthly charge of Rs. 35,000 to the centre. Police have not commented on these claims.
The director was taken to the scene as part of ongoing investigations, while forensic experts continue examinations to determine the cause of the fire, which remains undetermined.Anguruwatota Police are conducting investigations.
By Norman Palihawadane and Nishan S Priyantha
News
CERT : AI-generated videos depicting Prez, PM lure public into financial scams
Sri Lanka CERT has issued a public warning over the circulation of artificial intelligence (AI)-generated videos falsely depicting President Anura Kumara Dissanayake, Prime Minister Harini Amarasuriya and several other prominent personalities to promote fraudulent investment schemes online.
According to complaints received by the national cyber security agency, the videos have been created using deepfake technology and are being used as part of attempts to defraud members of the public through financial scams.
The images of famous sports personalities and other public figures have also been misused in the deceptive content.
The agency has warned that similar AI-generated material has been used to spread false information relating to investment opportunities, employment offers, as well as matters concerning the country’s economy and tax policies.
According to Sri Lanka CERT, the videos are being widely shared across online platforms and frequently contain links urging viewers to make investments in return for purported profits.The agency has cautioned that these links may redirect users to fraudulent websites designed to steal personal information, financial data and money from unsuspecting victims.
Sri Lanka CERT has urged the public to exercise extreme caution when encountering such content online and advised against clicking on suspicious links or sharing personal information through unverified websites.
“The public should remain vigilant and avoid becoming victims of false information and online fraud schemes,” the agency said.
Sri Lanka CERT has also encouraged internet users to verify information through official sources before acting on any investment, employment or financial offers circulated via social media or other online platforms.
-
News4 days agoLankan duo emerge winners in Latin dance championship held in Blackpool, UK
-
News7 days agoIMF urges Lanka not to meddle with exchange rate
-
Business5 days agoIMF’s unstated rate:Sri Lanka’s $695m loan costs about 5.33% per annum
-
News7 days agoState of emergency extended
-
Latest News2 days agoKusal Mendis, Pathum Nissanka, bowlers put Sri Lanka 1-0 up
-
News2 days agoNew US tariffs proposed on 60 countries, including Sri Lanka
-
Business5 days agoSri Lankan scientist-innovator Milinda Edirisinghe introduces AI-integrated gem testing system to gemological world
-
Features6 days agoAre threats to Buddha Sasana external or from within?
