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Rs. 16 bn sugar duty scam: Recovery of losses further delayed

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MP says ex-Prez should be questioned over Minister’s disclosure

By Shamindra Ferdinando

State Finance Minister Ranjith Siyambalapitiya yesterday (02) said that the recovery of at least part of revenue losses caused by the alleged sugar tax scam, (2020), couldn’t be done in a hurry.

Siyambalapitiya said so when The Island asked the State Minister how soon the government could recover 30 percent of Rs 16 bn loss in revenue in terms of an assurance he gave Parliament less than a week before the presentation of Budget 2023.

State Minister Siyambalapitiya said the recovery process could take over a year, depending on accounting years of the relevant sugar importers. On Nov. 09, he told Parliament the Treasury had suffered losses amounting to Rs 16 bn due to the unprecedented reduction of duty on a kilo of white sugar, from Rs 50 to 25 cents, from 13 Oct., 2020. He is on record as having said that the Treasury could recover only 30 percent of Rs 16 bn estimated loss.

Siyambalapitiya assured Parliament that the government would ensure such unilateral decisions couldn’t be taken in the future.

The then Prime Minister Mahinda Rajapaksa served as the Finance Minister whereas Ajith Nivard Cabraal held the State Finance portfolio. S. R. Attygalle served as the Secretary to the Treasury.

The SLPP government increased the duty on a kilo of white sugar to Rs 50 in May 2020, a couple of months before the general election, and it was brought down to 25 cents, a few weeks after the last general election.

Media and Transport Minister Bandula Gunawardena’s Office told The Island that the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) was yet to record a statement from the Minister as regards disclosure he made in Parliament on the sugar duty scam. Sources close to Bandula Gunawardena said that the former Trade Minister wanted to set the record straight. “The Minister couldn’t furnish a statement on Dec. 19, as sought by the CIABOC. However, CIABOC was told subsequently to record his statement,” sources said.

Addressing the Parliament, on Dec. 09, Minister Gunawardena said that in spite of him being the Trade Minister, he was not consulted at all and his strong opposition disregarded by President Rajapaksa when the Finance Ministry drastically reduced duty on imported sugar, without the benefit being passed onto the consumer.

Lawmaker Gunawardena claimed that inimical decisions were taken by ‘advisors’ at the expense of ministers who lacked authority.

CIABOC has so far recorded statements from over 30 persons in respect of the high profile investigation launched following complaints received from Samagi Jana Balavegaya MPs, Field Marshal Sarath Fonseka and Mayantha Dissanayake and public interest litigation Attorney-at-Law Nagananda Kodituwakku. Those questioned included former Presidential Secretary Dr. P.B, Jayasundera.

The Island

learns that the CIABOC contemplated seeking a statement from former President Gotabaya Rajapaksa in this regard.

Sources said that a clarification was required as some of those who had been questioned over the issuance of the relevant gazette by the Finance Ministry claimed they received instructions from the President.

Former Chairman of the Committee on Public Finance, Anura Priyadarshana Yapa, is on record as having said that the reduction of duty on sugar didn’t benefit the consumers at all. Incumbent Cabinet ministers Vidura Wickremanayake and Nalin Fernando, before they received ministerial portfolios this year in their capacity as members of the Public Finance Committee, have criticized the sugar tax scam.

MP Mayantha Dissanayake told The Island that Minister Gunawardena has pointed the finger at former President Gotabaya Rajapaksa. Declaring that the CIABOC couldn’t under any circumstances leave the ex-President out of the investigation, MP Dissanayake emphasized that Bandula Gunawardena, too, should be held accountable for loss in revenue. How the then Trade Minister could distance himself from the sugar scam by blaming it on the President and those near and dear to that President, MP Dissanayake asked.

Since Minister Gunawardena’s revelation, the former President has left the country.

Responding to another query, MP Dissanayake said that the CIABOC, too, owed the public an explanation regarding, what he called, the inordinate delay in probing this case. “On behalf of the SJB youth movement, I lodged a complaint on Feb 01, 2021, and subsequently made inquiries regarding the investigation. Minister Gunawardena’s disclosure has revealed the culprits,” MP Dissanayake said.



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X-Press Pearl disaster fuels global call to classify plastic pellets as hazardous

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X-Press Pearl

Nearly five years after the catastrophic sinking of the X-Press Pearl, off Sri Lanka’s western coast, the environmental scars remain visible — from contaminated beaches to disrupted fisheries. Now, that tragedy has become a rallying point for an international coalition of scientists, demanding urgent reforms to global maritime law.

A group of leading researchers and environmental experts is calling on the International Maritime Organisation (IMO) to formally recognise plastic pellets — commonly known as nurdles — as hazardous to the marine environment. They argue that existing international shipping regulations fail to adequately address the environmental devastation caused by pellet spills.

Their appeal comes through a newly accepted scientific commentary, published in Cambridge Prisms: Plastics, consolidating decades of research on the impacts of plastic pellet pollution.

Plastic pellets are small, lentil-sized (2–5 mm) particles made from virgin or recycled plastic and used to manufacture a vast range of plastic

products. Scientists say that spills occur frequently during handling and transport, both on land and at sea. Once released into the ocean, pellets persist for decades, spreading across vast distances and entering marine food chains.

Dr. Jennifer Lavers, who studies pollutants in seabirds, warned that the scale of plastic ingestion has reached crisis levels.

“Today the volumes of plastic pellets entering the marine environment are enough to ‘feed’ millions of young seabirds,” she said. “In some areas we are seeing nearly a 100% rate of plastic ingestion, with pellets being particularly problematic.”

Beyond physical harm such as digestive blockages in wildlife, pellets also pose chemical threats. According to Dr. Sinja Rist of DTU Aqua, they are far from inert materials.

“Pellets are persistent, widely dispersed, readily ingested by wildlife, and capable of transporting hazardous chemicals,” she explained, noting that they can absorb and release toxic substances across oceans.

Sri Lanka’s experience with the X-Press Pearl disaster, in 2021, highlighted these dangers on an unprecedented scale. The burning container ship released vast quantities of chemicals and billions of plastic pellets into the sea, causing widespread marine contamination and severe economic losses to coastal communities.

Hemantha Withanage, Chairperson of the Centre for Environmental Justice in Sri Lanka, said the disaster exposed major gaps in international maritime regulation.

“After studying the aftermath of the X-Press Pearl disaster, it is impossible to argue that plastic pellets are harmless cargo,” Withanage stressed. “The impacts in Sri Lanka were immediate, widespread, and long-lasting. Stronger international regulation is essential to prevent this from happening again.”

Under the International Convention for the Prevention of Pollution from Ships (MARPOL), the intentional discharge of plastics is banned. However, scientists argue that current rules are inadequate when it comes to preventing or responding to accidental spills, especially those involving container ships.

The researchers are urging the IMO to assign plastic pellets a specific United Nations classification number. Such recognition would formally acknowledge their environmental hazard potential and trigger stricter requirements for packaging, labelling, and emergency notification during shipping.

Dr. Therese Karlsson, lead author of the commentary and Science Advisor for the IPEN, said the scientific case is clear.

“There are decades of studies highlighting threats from plastic pellets released into the oceans, including risks to marine animals and the food chain,” she said. “Plastics contain thousands of chemicals, many known to cause harm to the environment and human health. It is past time for global regulations to protect our oceans.”

The European Union has recently introduced measures aimed at preventing pellet losses throughout the supply chain, and in 2021 the IMO committed to addressing pellet pollution as part of broader efforts to reduce marine plastic litter. Yet experts warn that without binding global action, pellet spills will continue.

For Sri Lanka, still recovering from one of the worst maritime environmental disasters in its history, the international call carries particular urgency.

Scientists say the message from the island nation’s experience is unmistakable: plastic pellets must no longer be treated as ordinary cargo, but as hazardous materials demanding strict global oversight.

By Ifham Nizam

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Foreign Minister Herath decries deadlock in global disarmament

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Minister of Foreign Affairs, Vijitha Herath, has underscored the urgent global need for enduring peace, security, and strengthened multilateral cooperation, warning that rising geopolitical tensions have created deadlocks in global disarmament efforts and posed serious challenges to international humanitarian law.

The Minister said so while addressing the High-Level Segment of the Conference on Disarmament (CD) in Geneva on Monday (23 Feb), reaffirming Sri Lanka’s firm commitment to global disarmament and multilateral cooperation.

Minister Herath said that safeguarding the future of humanity must be treated as a paramount priority, stressing that trust and mutual respect are essential foundations for effective decision-making in multilateral forums. He reaffirmed that Sri Lanka remains committed to ensuring a secure and stable world for future generations.

Highlighting Sri Lanka’s longstanding role in nuclear disarmament, he recalled the country’s contribution to the 1964 Non-Aligned Movement Summit in Cairo, which called for the establishment of nuclear-free zones. He reiterated that Sri Lanka continues to strongly support such initiatives, particularly in the Middle East, and emphasiSed that total elimination and non-proliferation remain the only guarantees against the use of nuclear weapons.

Sri Lanka also urged that non-nuclear-weapon states must receive unconditional, non-discriminatory, legally binding security assurances, achievable through the work of the Conference on Disarmament.

On humanitarian demining, Minister Herath noted that Sri Lanka remains an active partner in that effort and currently serves as a senior member of the victim assistance committee of the Anti-Personnel Mine Ban Convention. He further reaffirmed Sri Lanka’s continued commitment to the Cluster Munitions Convention, which the country presided over in 2019.

Recognising the rapidly evolving threat landscape, the Minister warned of the impact of emerging technologies that have already reshaped the global disarmament architecture while putting international humanitarian law at significant risk. In this context, he said Sri Lanka has been advocating for the early start of negotiations on a legally binding instrument to prohibit lethal autonomous weapon systems.

He also addressed growing threats to outer space security, stressing that Sri Lanka, long a supporter of disarmament in outer space, continues to back negotiations on a legally binding instrument to prevent an arms race beyond Earth.

Minister Herath concluded by affirming Sri Lanka’s readiness to work with all nations to ensure global efforts toward a safer world are accelerated and achieved at the earliest opportunity.

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CoPF orders officials to establish legal framework for Rs. 200 for estate workers daily attendance allowance

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NDF MP Ravi Karunayake speaking at the COPF meeting

The Parliamentary Committee on Public Finance has directed officials to establish a proper legal framework for the Rs. 200 daily attendance allowance provided by the Government to estate workers.

During the Committee meeting on February 17, 2026, chaired by MP Dr. Harsha de Silva, members emphasised that while there is no objection to increasing estate worker wages, the current payment mechanism lacks a formal legal basis. The allowance is being distributed under a Memorandum of Understanding (MoU) with private plantation companies without gazette notification, leaving the arrangement vulnerable to termination and excluding contributions to the Employees’ Provident Fund (EPF) and Employees’ Trust Fund (ETF), according to parliament sources.

Officials noted that the MoU with plantation companies was valid for three years, and thereafter a policy decision would be required to continue the payments. The Committee stressed that public funds should not be used to pay salaries in private institutions without proper financial discipline, despite the allowance being approved under the 2026 Budget as a “development subsidy.” The Deputy Secretary to the Treasury suggested the payment would be more appropriately classified as a “production incentive,” though existing payments and MoUs did not specify such requirements.

The Committee also reviewed disaster relief efforts for those affected by Cyclone Ditwah. Officials reported that approximately Rs. 24.4 billion had been disbursed under various relief programs, including allowances for house cleaning, household purchases, and school assistance. Delays in housing reconstruction and rental support were attributed to damage assessments and land identification, with Committee members urging faster delivery of housing aid.

Officials from the National Insurance Trust Fund (NITF) highlighted reinsurance claims of around Rs. 11 billion following Cyclone Ditwah, noting that although NITF had not reinsured its exposure internationally since 2023, it was capable of settling existing claims.

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