News
Sugar tax scam takes shocking turn: Parliament directive to recover Rs 16 bn disregarded
FM now claims loss of revenue not reported, contradicts AG’s findings
By Shamindra Ferdinando
The ongoing controversy over the failure on the part of the Finance Ministry and the Inland Revenue Department (IRD) to recover taxes from companies implicated in a massive sugar tax scam in 2020 has taken a shocking turn, with the Department of Trade and Investment Policy declaring that loss of revenue hadn’t taken place.
D. M. A. Dassanayake, Information Officer of the department that comes under the purview of the Finance, Economic Stabilisation and National Policies Ministry, said so in response to a query submitted to the Ministry in terms of the Right to Information Act (RTI) No 12 of 2016.
The Finance Ministry emphasised that contrary to claims, the issuance of Gazette 2197/12, dated Oct. 13,2020 whereby Special Commodity Levy (SCL) on sugar imports had been reduced to 25 cents from Rs 50 (per kg) didn’t cause any loss of revenue.
The Island received the Finance Ministry response on February 08, 2024 for a set of questions submitted on Dec 18, 2023. The questions were based on the proceedings of the Public Finance Commission on Dec 16 chaired by Dr. Harsha De Silva, economist and member of the main Opposition Samagi Jana Balawegaya (SJB)
During the Dec 16 proceedings, Dr. De Silva questioned the failure on the part of the Finance Ministry and the IRD to recover the losses as ascertained by the Auditor General by way of a forensic audit conducted into the Oct 2020 sugar scam. The House committee flayed the two institutions for turning a blind eye to several major sugar importers making a killing at the expense of the consumers. The Auditor General has named those who benefited from the SCL reduction.
MPs Chandima Weerakkody, Madura Vithanage, Duminda Dissanayake and Sumith Udukumbura attended the meeting.
Declaring that the government lost tax revenue, amounting to over Rs 16 bn, the AG had recommended criminal investigation into the sugar scam perpetrated during Mahinda Rajapaksa’s tenure as the Finance Minister. At the time of the issuance of the controversial Gazette in Oct 2020, S.R. Attygalle served as the Secretary to the Ministry of Finance. The forensic audit revealed that the government suffered a loss of Rs. 16.763 bn within four months (Oct 14, 2020 to Feb 08, 2021).
The House committee has pointed out that in spite of the SCL on sugar imports being reduced by a staggering 99.5%, the relevant authorities hadn’t done anything to prevent importers from exploiting the consumers. The IRD has been asked on January 16, 2024 to submit a report in respect of recoveries to be made from sugar importers.
Responding to another query, Information Officer Dassanayake said that the Finance Ministry had been summoned before the Public Finance Commission twice.Asked what were the difficulties in recovering revenue losses caused by the sugar tax scam, the RTI officer said that the question didn’t arise as losses hadn’t been estimated.
Asked whether another sugar tax scam perpetrated in November last year in the wake of the change of government consequent to Aragalaya was under investigation, the RTI officer declared that investigations conducted by the CID and the CIABOC (Commission to Investigate Allegations of Bribery or Corruption) so far didn’t reveal fraud. The Island pointed out that Labour and Foreign Employment Minister Manusha Nanayakkara is on record as having alleged a massive tax scam occurred in November last year.
The Island also asked whether President Wickremesinghe, in his capacity as the Finance Minister, instructed the Finance Ministry regarding the recouping losses. The RTI official said that the question is irrelevant as loss of revenue hadn’t been estimated or reported.
The Public Finance Commission has also paid attention to the reversal of the Special Commodity Levy in November in respect of sugar imports. The House committee questioned the rationale in the Finance Ministry seeking to collect as much as Rs 30 bn from consumers by way of tax reversal while allowing those who had been implicated in massive fraud to go unpunished.
The Finance Ministry disregarded questions submitted in terms of the RTI regarding the IMF stand in respect of the need to streamline revenue collection and whether the Ministry consulted the Attorney General as regards ways and means to address such corrupt practices.
News
Waste management and recycling to receive priority in the 2027 Budget – PM
Prime Minister Dr. Harini Amarasuriya stated that the upcoming 2027 Budget will place priority on waste management, waste reduction and recycling, emphasising that what should be left for future generations is not contaminated soil or seas filled with plastic, but a clean and green environment where they can breathe freely and live healthy lives.
The Prime Minister made these remarks while delivering the keynote address at the 3rd International Conference on “Plastic, Innovation and Environmental Sustainability”, organised by The Open University of Sri Lanka, held today (30 September) at the Cinnamon Lakeside Hotel, Colombo.
Held under the theme “Eco-Friendly Innovations,” the conference focused on minimising environmental damage caused by plastic waste, introducing environmentally friendly alternatives, developing circular economy models and promoting sustainable waste management. Addressing the conference, the Prime Minister further pointed out that plastic pollution is not merely an environmental issue, but a global challenge directly linked to the climate crisis.
The Prime Minister emphasised that the uncontrolled accumulation and disposal of waste poses a serious threat to both public life and the environment, and that the destruction of natural resources in the name of economic development cannot be considered meaningful development. The Prime Minister stated that several major projects are planned to be implemented under the Clean Sri Lanka national programme, including the “Pivithuru Purawara” National Waste Management Project, which will be implemented during the 2027–2029 period at a cost of Rs. 34 billion.
The Prime Minister further stated that the project aims to minimise the disposal of non-biodegradable waste, including plastic, into the environment, while expanding recycling and compost production. She also emphasised that laws and regulations alone are insufficient to ensure environmental protection, and that a sense of responsibility towards the environment must be cultivated through the education system itself. The Prime Minister also stated that steps are being taken through the new education reforms to practically integrate environmental education, plastic and waste management, and circular economy concepts into the school curriculum. She added that the “Green Schools” concept will be promoted at school level, encouraging children to adopt “Zero Waste” practices from an early age. In addition, the Prime Minister called on universities and researchers to adopt an interdisciplinary approach, bringing together fields such as engineering and social sciences, in order to develop practical and innovative solutions to these challenges.
The occasion was attended by the Vice Chancellor of The Open University of Sri Lanka Senior Professor P. M. P. C. Thilakarathne, Professor J. M. A. Manathunga, Professor Banduni Athapattu, Professor Alex Lin, members of the academic panel, local and international researchers, officials of the Ministry of Environment, and a group of university students were also present at the occasion. Prime Minister’s Media Division
[Prime Minister’s Media Division]
News
Civil society activist accuses govt. of favouring Ven. Gnanasara
Court of Appeal issues warrant for monk’s arrest
by Shamindra Ferdinando
Civil society activist Gamini Viyangoda on Monday (28) lambasted the NPP government for its failure to act promptly on the Supreme Court cancelling the presidential pardon granted to the General Secretary of Bodu Bala Sena (BBS) Galagodaatte Gnanasara.
Addressing a gathering at the Sri Lanka Foundation to mark the launch of ‘Rajapaksha Samagama’ and ‘Pasku Praharaye Thoththa Babala’ by Lasantha Ruhununuge and Tharindu Uduwaragedara and M.F.M., Faseer, Viyangoda alleged that President Dissanayake’s government was also acting in a manner partial to Gnanasara Thera, the way all previous governments had done.
The NPP should be ashamed of its pathetic failure to act swiftly and decisively, immediately after the Supreme Court revoked President Maithripala Sirisena’s pardon. Viyangoda said that the government owed an explanation as to why law enforcement authorities couldn’t apprehend Gnanasara, following the announcement made on 14 Sept. “For two weeks what were they doing,” he asked.
Ven. Gnanasara was sentenced, in 2018, for a six-year period for contempt of court and intimidating Sandya Eknaligoda, the wife of Prageeth Eknaligoda who disappeared in 2010. But, President Sirisena pardoned him before the convicted monk completed one year of his six-year term.
Viyangoda said that Ven. Gnanasara had openly moved about freely, launched a book and acted as if the Supreme Court ruling didn’t have any impact. Every minute Gnanasara stayed in the open it was an affront to the Supreme Court, Viyangoda said, accusing the government of shielding a wrongdoer.
Referring to certain incidents during the Yahapalana time, Viyangoda revealed that he personally sought the then Prime Minister Ranil Wickremesinghe’s direct intervention to have Ven. Gnanasara, hiding at a faraway temple, apprehended. “I met Wickremesinghe at Temple Trees. When I raised the failure on the part of police to apprehend Gnanasara, Wickremasinghe immediately called Sagala Ratnayake, who was in charge of public security at that time. Ratnayake promised to take the monk to custody the following day. The next day, Gnanasara surrendered through a lawyer.”
Viyangoda alleged that the Wickremesinghe government had shielded Vem. Gnanasara. The Wickremesinghe-Sagala Ratnayaka duo did that in style, he said, accusing the present government, too, of doing the same.
The Court of Appeal yesterday (29) issued a warrant for the arrest of Gnanasara Thera and ordered that he be produced before the court on 1 Oct.
The court further directed that the warrant be executed through the Inspector General of Police.
This happened when a motion filed by the Attorney General, seeking an order to enforce the prison sentence imposed on Gnanasara Thera, was taken up before the Court of Appeal.
The motion was heard before a Court of Appeal bench, comprising Justices Mayadunne Corea and Lakmali Karunanayake.
President’s Counsel Anura Meddegoda, appearing for Gnanasara Thera, told the court that his client was resting due to illness and requested a date to study the motion and make submissions.
But State Counsel Sajith Bandara declared that the matter concerned a criminal case and requested that the court issue a warrant if the accused failed to appear before the court.
News
More cops than cones
Colombo’s bus priority lane rule returned today, 29 September, as a pilot programme across the city and nearby areas. It applies from 6 a.m. to 9 a.m. and from 4 p.m. to 7 p.m. daily. The renewed operation covers seven designated lanes, meant to cut delays and make public transport more predictable.
Transport Minister Bimal Rathnayake said officials would monitor the trial to assess its effect on congestion and public transport efficiency. Police have told all officers to take legal action against violators. Drivers may enter a lane only in unavoidable cases, such as emergencies, exceptionally heavy traffic, or to cross it when turning.
The Lanka Private Bus Owners’ Association has welcomed the move, and Metro Bus is adding five new routes.
The rule has been revived before, and past efforts struggled with enforcement, so the pilot project’s results will matter.
(Image courtesy Hiru)
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