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Editorial

Sugar Scam: Get at bitter truth

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Saturday 14th June, 2025

The Criminal Investigation Department (CID) is reported to have said, quoting the Attorney General’s (AG’s) Department that the questionable reduction of the special commodity levy (SCL) on imported sugar in 2020, during the SLPP government, did not amount to a criminal offence. The AG’s Department has reportedly directed the CID to conduct further investigations to find out whether anyone gained undue benefits from the duty reduction. Why the probe dragged on for years is the question. There was ample time for the suspects to cover their tracks.

The CID has belaboured the obvious. The SCL reduction per se was not an offence—criminal or otherwise. The Cabinet of Minister has the authority and discretion to increase or decrease SCLs. What is really at issue is the economic fallout of the SCL decrease in question and the undue benefits that accrued therefrom to a few sugar importers connected to the SLPP government.

One can only hope that the CID and the Commission to Investigate Allegations of Bribery or Corruption will conduct a thorough probe into what has come to be dubbed the sugar scam, which was one of the issues the NPP flogged very hard during its election campaigns.

The CID and the national anti-graft commission have not been free from political pressure. So, it is possible that the present-day rulers do not want a precedent created with the SCL reduction at issue being deemed a punishable offence, for they themselves stand accused of having manipulated import duties for the sake of its cronies among big-time rice millers.

What the critics of the SCL reduction have said is that the SLPP government adopted that measure after ensuring that all sugar importers, except its financiers among them, had replenished their stocks and could not take delivery of any more shipments of sugar. When it slashed the SCL on sugar imports from Rs. 50 to 25 cents a kilo, its cronies had placed orders for sugar and/or some of their shipments were on their way to Colombo. The SCL was a well calculated move that stood the SLPP financiers in good stead at the expense of the state coffers; it is believed that among the beneficiaries of the questionable SLC reduction were those who sponsored the propaganda events held by the SLPP ahead of the 2019 presidential election.

It will not be difficult for the CID to figure out who actually benefited from the SLC reduction. All it will have to do is to ascertain information about the sugar importers who placed orders immediately before the slashing of the SLC and about those whose shipments were reaching the Colombo Port when the SCL decrease was announced.

The SLPP government made the SLC decrease out to be a move intended to bring the sugar prices down for the benefit of the public, but Basil Rajapaksa himself admitted in a television interview that the sugar prices had not come down. The CID should also find out what the sugar prices were before and after the SLC reduction. It has been reported in the newspapers that the sugar prices did not drop despite the decrease in the SCL because most of the sugar importers had purchased sugar prior to the SLC reduction and did not want to adjust prices and suffer losses. The government craftily served the interests of the sugar importers, including its financiers by allowing the sugar prices to be kept at the previous level while its cronies were maximizing profits at the expense of the public and the economy. Such politically-motived moves made a huge contribution to the country’s worst-ever economic crisis, and they must be probed thoroughly and the culprits brought to justice.



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Editorial

Dons’ frustration and rulers’ nonchalance

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Monday 5th October, 2026

The Federation of University Teachers’ Associations (FUTA) has held several media briefings during the past several months to highlight a host of unresolved issues affecting the university system, but the government seems to be unconcerned. Addressing the media, over the weekend, the FUTA raised those problems once again, pointing out that all state universities had been left with only about 5,000 teachers because a large number of academics had already left the country, mostly for economic reasons. The situation was taking a turn for the worse, it warned.

University teachers are among the professionals who played a pivotal role in enabling the JVP-led NPP’s meteoric rise to power, but today they are shouting themselves hoarse in a bid to draw the government’s attention to the problems besetting the university system, but in vain. The same holds true for the state-sector doctors, who have got short shrift from the government, which rides roughshod over the GMOA (Government Medical Officers’ Association) as well as the BASL (Bar Association of Sri Lanka), whose members also campaigned hard for the NPP.

The incumbent government, just like its predecessors, has apparently prioritised a plan to increase the number of universities in keeping with what looks like a politically determined agenda over resourcing and staffing the existing universities adequately. President Anura Kumara Dissanayake, in his wisdom, has promised to establish 50 new universities across the country while almost all state universities are experiencing severe resource constraints, with many academics voting with their feet.

A quality university system cannot be created simply by increasing the number of universities or admitting more students. The need is for a combination of capable academics, adequate resources, institutional autonomy, rigorous standards and a system of accountability. There are certain other conditions that need to be fulfilled for a country to create a vibrant university system that conforms to international standards. First of all, there should be a clear national higher education strategy to establish a diversified, future-oriented tertiary education system that is adequately resourced and staffed.

Universities cannot function properly, much less achieve academic excellence, without enough qualified teachers and appropriate student-to-staff ratios. Adequate and sustained funding, strong research capacity, academic freedom, institutional freedom and rigorous, independent quality assurance, industrial and international links are among the other factors that help ensure the robustness of a university system.

The World Bank’s recent assessment of Sri Lanka’s higher education sector has identified scarcity of qualified academic staff, inadequate research and innovation output and passive student learning among the challenges facing the sector.

FUTA members have told the media that foreign research grants have to be approved by the Cabinet of Ministers; the approval process is frustratingly slow, and therefore universities are without enough funds for research. There are arguments for and against government oversight on research grants, but the real issue is why the government cannot expedite the approval process. Teaching and research are traditionally regarded as inseparable functions of a university. Besides, universities need sufficient freedom to determine curricula, conduct research, appoint staff and make academic decisions without inappropriate political or bureaucratic interference. UNESCO regards academic freedom and institutional autonomy as important conditions for universities to fulfil their teaching and research functions.

It is doubtful whether Sri Lankan governments have learnt from history how other countries achieved their development goals. The OECD (Organisation for Economic Co-operation and Development) has revealed that universities played a central role in the development of the Global North by producing the educated workforce, scientists, engineers, doctors, teachers, administrators and other professionals needed to build modern economies and strong public institutions. They also became major centres of basic and applied research, generating knowledge that helped drive industrialisation, technological innovation and productivity. The OECD notes that universities in most developed economies remain major providers of research and important contributors to the development of new technologies. The rise of strong university systems was not merely a result of development in the Global North; universities themselves helped usher in progress. It is hoped that Sri Lankan policymakers, particularly politicians, will take cognisance of this simple fact.

The incumbent government has raised the retirement ages of judges. It even went to the extent of amending the Constitution amidst protests from national and international organisations, claiming that it had to do so to clear a backlog of cases. It has also launched a substantial programme to recruit and train thousands of police personnel. Why can’t it take similar action urgently to resolve the shortage of university teachers? It should heed the university teachers’ warning; students who qualify for university admission may have to wait for several years before the commencement of their academic programmes, and universities might end up being empty shells.

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Editorial

Kaduwela land grab and statist spectres

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A private company has complained to the police, alleging that Kaduwela Mayor Ranjan Jayalal and NPP MP Asitha Niroshana forcibly took over a block of land belonging to it in Athurugiriya for a Metro bus stand. Lawyers representing the company have told the media that the police have not acted on their complaint due to political pressure. The NPP politicians remain defiant, insisting that the new bus stand will not be shifted under any circumstances.

Sri Lanka politicians take leave of their senses when power goes to their heads. During previous governments, there were widespread allegations that some politicians got their supporters to encroach on privately owned estates in the Colombo suburbs and then demanded money from hapless owners to remove the squatters, while others openly grabbed houses and land with impunity. These allegations have gone uninvestigated. The 2024 regime change was expected to bring such illegal practices to an end. But in 2025, a group of JVP activists, led by a deputy minister, stormed a party office belonging to their rival faction, the Frontline Socialist Party (FSP), in Yakkala, and forcibly occupied it after assaulting and driving away a group of FSP members. They even showed the police a document, claiming that it was a court order vesting the ownership of the building in the JVP, and the police promptly cordoned off the area and set up a checkpoint to ensure the safety of the JVPers. But in April 2026, the Gampaha District Court ordered the JVP to return the office to the FSP.

The alleged land grab in Athurugiriya is different from the previous ones in that it is not intended to benefit any political party or any private individual as such, but it cannot be countenanced on any grounds. There should certainly be a place for the Metro buses to be parked in Kaduwela, but the government must not bulldoze its way through to acquire private property. It should negotiate with the company concerned and explore the possibility of purchasing the land at the prevailing commercial rate or taking it on lease. If the owner is unwilling to sell or lease the property, the government will have to look for an alternative location. There is no other way out. That is the way such disputes should be settled in the civilised world. The police must be made to explain why they have not instituted legal action against the Kaduwela Mayor and the NPP MP.

The government’s efforts to develop the Metro service deserve praise, encouragement and public support. The state-owned bus service has to be revitalised. However, the development of the Metro bus service cannot be cited in extenuation of high-handed actions, such as the alleged land grab.

It is high time the JVP/NPP politicians and their supporters realised that a popular mandate is not tantamount to a carte blanche and they cannot act according to their whims and fancies. The alleged land grab is bound to have an unsettling effect on investors, particularly foreign investors, given the JVP’s original ideological programme, which bore the imprimatur of its founder-leader Rohana Wijeweera, and the continuing influence of the party’s old guard over the present government. The JVP’s early programme called for far-reaching socialist economic measures, including the abolition of private ownership in several sectors and revolutionary land reform. The forcible land takeover in Athurugiriya not only smacks of statism but also conjures up the failed communist spectres of the past.

The government should take cognisance of what the US says, in its 2026 Investment Climate Statements: Sri Lanka, about land tenure here. Noting that Sri Lanka has made important progress since the 2022 economic crisis, the report says the investment environment remains difficult and unpredictable. It is not simply a negative report: it acknowledges political stability under the NPP government, commitment to the IMF programme. However, it makes specific mention of “tenure insecurity” in the context of weaknesses in Sri Lanka’s land sector. The report lists it alongside land scarcity, fragmented land administration, land degradation, encroachment and land disputes. Tenure insecurity generally means that a person or business does not have sufficiently certain, legally enforceable and transferable rights over the land they occupy or use. But it also means vulnerability to illegal occupation, land grabbing, encroachment or other involuntary loss of land. The World Bank’s definition of ‘tenure insecurity’ is noteworthy. It says tenure security involves protection against the involuntary loss of land, and notes that insecurity can arise from disputes within families or communities, or from the actions of governments or private claimants.

The US investment report provides an important reference to the foreign investors assessing Sri Lanka’s investment climate. The JVP-NPP government therefore should not send the wrong message to investors. In this day and age, news travels almost at subatomic speed, reaching millions of people across the globe within seconds. The government would do well to be mindful of the repercussions of its actions.

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Editorial

Fuelling discontent and protest

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Saturday 3rd October, 2026

Private fuel bowser owners were up in arms, yesterday, claiming that they were incurring huge losses because the Ceylon Petroleum Corporation (CPC) had not increased commissions for fuel distribution. Unless the CPC responded favourably to their demand for a substantial increase in commissions, they would be left with no alternative but to stop fuel distribution completely with immediate effect, they warned, noting that the CPC had promised to announce its final decision yesterday.

The Ceylon Petroleum Private Tanker Owners’ Association (CPPTOA), which is leading the fuel bowser owners’ struggle, said yesterday that it expected their commission to be raised at least to 20%, as the cost of fuel distribution had increased sharply. A meeting between the CPPTOA representatives and the CPC officials was going on at the time of writing.

It defies comprehension why the CPC lets the grass grow under its feet without addressing issues that have the potential to cripple fuel distribution. The CPPTOA had been protesting for weeks, but the CPC ignored fuel distributors’ demand. It may have expected the problem to go away with the passage of time. Everything possible must be done to prevent pumps from running dry at filling stations, causing hardships to the public and adversely impacting the economy.

The CPC should have taken immediate action at the first sign of trouble and invited the CPPTOA to talks instead of waiting until the eleventh hour. Prudence demands that a game of chicken be averted in a crucial sector like petroleum distribution.

Issues that could cripple the petroleum sector are best sorted out at the negotiating table, which is the ideal place for bargaining. We are not in a position to say whether it is fair for the CPPTOA to demand a 20% commission, but the fuel distributors’ grievances should be addressed and the CPC ought to hold talks with them and negotiate solutions as and when issues crop up. Flexibility is a prerequisite for resolving trade union problems. Intransigence and brinkmanship only aggravate such issues, much to the detriment of the country’s interests. If bowser operators stopped distributing fuel for a couple of days, perish the thought, it would take a considerable time to replenish supplies thereafter, and fuel queues would reappear. Disruptions to fuel distribution could have a domino effect on virtually every other sector of the economy.

The fragile economy, which is recovering from an unprecedented crisis, cannot take any more shocks, and the patience of the public is manifestly wearing thin. Petroleum sector trade unions have claimed that the CPC is selling fuel from older stocks at higher prices, while fuel distributors have called upon the government to scrap the loss-recovery levy immediately, arguing that the CPC’s legacy debt has now been fully repaid. These are the issues the Opposition should take up in Parliament instead of making loud noises that signify nothing.

One can only hope that the CPC and the CPPTOA will resolve the commission issue through negotiations, and the CPC will act more responsibly in the future without trying to wish away trade union issues that could cripple the petroleum sector.

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