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SOEs record Rs 774 Bn losses in 2022: COPF

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SJB MP Dr Harsha de Silva chairing Committee on Public Finance meeting last Tuesday

Officials from the Ministry of Finance revealed that Sri Lanka’s state-owned enterprises (SOEs) incurred a staggering LKR 774 billion in losses in 2022, during a meeting of the Committee on Public Finance held on Feb 25.

The meeting, chaired by Dr Harsha de Silva, also highlighted significant improvements in revenue collection, with 2024 revenue and grants increasing by 33.1% compared to 2023, achieving 99.1% of the annual target—the highest in history.

The officials attributed this success to the increase in VAT rates, the removal of tax concessions on 95 out of 137 previously VAT-exempt items, and enhanced fiscal discipline. They noted that the revenue-to-GDP ratio, currently at 13.6%, is projected to rise to 15.3% by 2029. However, the Committee emphasized that this figure remains below the 20% average for middle-income countries, urging further improvements in tax administration.

To boost efficiency, Key Performance Indicators (KPIs) have been introduced for the Inland Revenue Department, Sri Lanka Customs, and the Excise Department. Additionally, the Ministry presented a simplified “Citizen’s Budget”, detailing fund allocations across 12 sectors, including health, education, and transportation, to enhance transparency and public understanding of tax utilization.

The Committee also discussed the LKR 330 billion revenue target from vehicle imports, questioning its feasibility given that only LKR 83 million in Letters of Credit have been opened so far. Officials expressed confidence in achieving the target through high import taxes.

Regarding SOEs, officials disclosed that 52 state-owned enterprises generated a combined profit of LKR 428 billion from January to October 2024, while SriLankan Airlines recorded significant losses. This marks a notable improvement from the LKR 774 billion total losses incurred by SOEs in 2022.

The Committee raised concerns over delays in operationalizing the Dambulla agricultural warehouse, completed in 2019 but stalled due to procurement issues for refrigeration units. Similarly, the National Art Gallery in Colombo remains closed despite LKR 120 million allocated for renovations.

The meeting concluded with a focus on public debt management, with the Committee stressing the need for skilled professionals to ensure effective implementation of the newly enacted debt management law.

The session was attended by Deputy Minister Dr. Harshana Suriyapperuma and several Members of Parliament, including Ravi Karunanayake and Dr. Kaushalya Ariyarathne.



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Gold tops $5,000 for first time ever, adding to historic rally

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[pic BBC]

The price of gold has risen above $5,000 (£3,659) an ounce for the first time, extending a historic rally that saw the precious metal jump by more than 60% in 2025.

It comes as tensions between the US and NATO over Greenland have added to growing concerns about financial and geopolitical uncertainty.

US President Donald Trump’s trade policies have also worried markets. On Saturday he threatened to impose a 100% tariff on Canada if it strikes a trade deal with China.

Gold and other precious metals are seen as a so-called safe-haven assets that investors buy in times of uncertainty.

Demand for gold has also been driven by a range of other factors including higher-than-usual inflation, the weak US dollar, buying by central banks around the world and as the US Federal Reserve is expected to cut interest rates again this year.

Wars in Ukraine and Gaza, as well as Washington seizing Venezuelan President Nicolás Maduro, have also helped push up the price of gold.

On Friday, silver topped $100 an ounce for the first time, building on its almost 150% rise last year.

[BBC]

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Auditor General issue acid test for newly constituted CC, says former COPE Chief

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Charitha

SJB Working Committee member and ex-SLPP lawmaker Charitha Herath says that all eyes are on the newly constituted Constitutional Council (CC) as to how it will handle the dispute between President Anura Kumara Dissanayake, and the previous CC, over the appointment of Auditor General (AG).

The former parliamentarian said so in response to The Island query yesterday (25). In terms of the Constitution, Prime Minister Dr. Harini Amarasuriya and Opposition Leader Sajith Premadasa last week agreed on the appointment of former civil servant Austin Fernando, Professor Wasantha Seneviratne and Ranjith Ariyaratne as non-MP members of the CC.

They replaced former Ministry Secretary Dr. Prathap Ramanujam, former Chairperson of the Sri Lanka Medical Association Dr. Dilkushi Anula Wijesundere and Dr. Dinesha Samararatne of the University of Colombo. Pointing out that they rejected the President’s nominees for the AG’s post on several occasions, Herath emphasised the pivotal importance of the appointment of a person with impeccable credentials.

The other CC members are the Prime Minister, Speaker Dr. Jagath Wickremaratne (Chairman), the Opposition Leader, the President’s nominee Bimal Rathnayake and five persons appointed by the President, upon being nominated as follows: one MP nominated by agreement of the majority of the MPs representing the Government (Aboobucker Athambawa, MP), one MP nominated by agreement of the majority of the Members of Parliament of the political party, or independent group, to which the Leader of the Opposition belongs (Ajith P. Perera, MP), and one MP nominated by agreement of the Members of Parliament other than those representing the Government and those belonging to the political party or independent group to which the Leader of the Opposition belongs, and appointed by the President ( Sivagnanam Shritharan, MP.)

The present CC was established on October 31, 2022 in terms of the 21st Amendment to the Constitution. The Attorney General heads the National Audit Office (NAO). One-time COPE Chief said that it would be the responsibility of the government to ensure the integrity of the NAO.

Chulantha Wickramaratne, who served as AG for a period of six years, retired in April 2025. Following his retirement, President Dissanayake nominated H.T.P. Chandana, an audit officer at the Ceylon Petroleum Corporation as the AG. The CC rejected that nomination. Subsequently, President Dissanayake appointed the next senior-most official at the NAO Dharmapala Gammanpila as Acting Auditor General for a period of six months. Then, the President nominated Senior Deputy Auditor General L.S.I. Jayarathne to serve in an acting capacity, but her nomination, too, was also rejected. Many an eyebrow was raised when the President nominated O.R. Rajasinghe, the Internal Audit Director of the Sri Lanka Army for the top post. That nomination too was rejected. As a result, the vital position remains vacant since 07 December, 2025.

Herath said that the government was in a bind over the Auditor General’s appointment and the disgraceful campaign launched against Attorney General Parinda Ranasinghe, Jr, PC.

The ex-lawmaker said that JVP/NPP loyalists masquerading as journalists and civil activists had launched the protest against the Attorney General. Herath said that the decision to send Deputy Secretary General of Parliament Chaminda Kularatne, on compulsory leave, too, was a matter of serious concern.

Herath said: “This is the same government that campaigned strongly on non-interference, institutional independence, and respect for the rule of law—principles they used to criticise every previous administration. Now, they appear to be doing exactly what they once opposed, only more openly. If this pattern continues, these undemocratic actions will eventually lead to their own downfall.”

BASL in late December, 2025 urged President Dissanayake and others, including the Opposition Leader, to consult civil society and professional bodies, including them, before the appointment of civil society representatives.

Herath said that the newly constituted CC would face its first acid test when it addressed the Auditor General issue.

by Shamindra Ferdinando

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Easter Sunday carnage: Campaigners for justice ask govt. to have suicide bomber’s wife extradited

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A Catholic Church–backed organisation, Just for Justice, has called on the government to immediately fast-track the extradition of Pulasthini Mahendran, also known as Sarah Jasmine, who has been linked to the 2019 Easter Sunday terror attacks.

Addressing a press conference at the Centre for Society and Religion in Maradana last week, Fr. Rohan Silva said Mahendran should be brought back to Sri Lanka without delay to enable investigators to uncover the identities of those who masterminded the attacks, which claimed the lives of more than 275 people and injured more than 500.

Mahendran, who now reportedly goes by the name Sarah Jasmine, is the wife of Atchchi Muhammadu Muhammadu Hastun, one of the suicide bombers who attacked St. Sebastian’s Church, in Katuwapitiya, in April 2019.

Fr. Silva referred to a recent statement made by Minister of Public Security Ananda Wijepala, in Parliament, that information uncovered during investigations indicated that Mahendran was not dead. The Minister also told Parliament that there was no indication she was currently in India, but added that the government could secure her extradition if the need arose.

“We tell the Minister and the government that there is an urgent need,” Fr. Silva said. “She must be brought back so that investigators can obtain details about the masterminds of the attacks.”

According to Fr. Silva, repeated efforts had been made to obstruct investigations by promoting the claim that Mahendran died in a suicide blast at a safe house in Sainthamaruthu on April 26, 2019, days after the Easter attacks, despite what he described as evidence suggesting otherwise.

Initial reports stated that 16 people were killed in the Sainthamaruthu explosion. However, the figure was later revised to 17 when police reported the incident to court on April 30, 2019, and informed the media that Mahendran was among the dead.

 “It is our belief that those who masterminded and orchestrated the terror attacks wanted to remove Jasmine to prevent evidence being extracted from her,” Fr. Silva said. He added that there had long been suspicions that she was alive and had been taken to India or another country.

Fr. Silva questioned the government’s commitment to uncovering the truth, noting that despite the Minister’s statement in Parliament, no steps had been taken to bring Mahendran back.

“We have doubts whether this delay is due to conflicts of interest among investigators or those who direct them,” he said. “This government came to power promising impartial and expedited investigations into the Easter attacks and justice for the victims. Now, 81 weeks have passed, and we demand that the government deliver on those promises.”

by Norman Palihawadane

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