News
Treasury loses USD 18 mn as minister blocks CCD probe into generator fraud
by Ifham Nizam and Prabhath Withana
An investigation by the Colombo Crimes Division (CCD) into a complaint of fraud, which caused a loss of over USD 18 million to the government coffers, has been stalled by a minister, according to police sources.
The CCD commenced the investigation, several weeks ago, following a complaint against a Singaporean, of Sri Lankan origin, and a Sri Lankan, for using forged documents to cheat a Sri Lankan company out of Rs 35 million.
Investigators uncovered a customs fraud, amounting to USD 18 million using a Power Purchasing Agreement (PPA) between the Ceylon Electricity Board (CEB) and a Hongkong-based company. The Customs Department’s Compliance and Facilitation Division commenced a separate investigation.
The Customs investigation found that the suspects had deprived Sri Lanka of USD 18 million by using the PPA, which had been cancelled by the CEB. “As per the PPA, the V Power Holdings could import to Sri Lanka power generators, duty free, to supply 34 MW to the national gri, for a six-month period. As per the PPA, after six months the company is required to re-ship those generators and is also requested pay a 10 percent tax on revenue from the generators. That tax could have been around one million USD. They brought down 350 generators. The duty for the generators would have been around 14 million USD. The company obtained a duty waiver to the tune of around three million USD. However, the PPA had been cancelled by that time by the CEB because V Power Holdings failed to deliver 34 MW, within the stipulated one-month period,” a senior CCD officer said.
The company has to pay over 18 million USD to Sri Lanka. It did not re-export the generators. In addition, the suspects have also been charged with defrauding Rs 35 million from the Green Win Holdings Lanka Ltd., the local agent company of the Hong Kong-based Listed Company, V Power Holdings.
The CCD investigation has been halted due to political interference, sources said, adding that the suspects had approached a Cabinet minister.
Asked for comment, senior CEB officials said that there had been a PPA with V Power Holdings but it had been cancelled by the CEB. With the cancellation of the agreement, the company loses their rights for duty concessions, a top management level officer of the CEB told The Island.
Customs Media Spokesman and Deputy Director (Legal) Sudattha Silva said that the Compliance and Facilitation Division of the Department was conducting an investigation. He said he was not in a position to comment more as the investigation was in progress.
The V Power Holdings was accused of violating the Section 50 (A) (1) (a) (b) of the Customs Ordinance.
When contacted for comment, Chairman of Green Win Holdings Lanka Ltd, Vajira Wickramasinghe said. That there were two investigations into the aforementioned incidents.
“We signed the PPA with CEB as the Sri Lankan representative of the V Power Holdings of Hong Kong. The V Power Holdings’ Chief Commercial Officer sent a Singaporean of Lankan origin to work with us. Later, it was found that Singaporean with the help of a former director of our company, carried out the fraud. They have misused the canceled PPA to clear the consignment from the harbour. Now, the CCD says that they cannot find the Singaporean and the Lankan who have gone into hiding. I hope that the investigations will resume and the culprits will be caught so that justice will be done.”
News
Diesel replacement costs up to Rs. 4.5 bn in April
Coal power generation falls by 27 GWh
A sharp decline in coal-fired electricity generation in April 2026, compared to the corresponding month last year, may have cost Sri Lanka more than Rs. 4.5 billion, as the country was compelled to rely on significantly more expensive diesel-powered generation to make up the shortfall, according to power sector data.
The coal-based electricity generation, in April 2026, was 27 GWh lower than in April 2025, a development that has sparked concern among energy experts and economists over the mounting financial burden on the country’s already strained power sector.
Industry calculations reveal that generating the lost 27 GWh through diesel-fired power plants would require approximately 8.1 million litres of fuel, based on a standard consumption rate of 0.3 litres per kilowatt-hour.
With fuel costs estimated at around USD 286 per barrel, or roughly USD 1.80 per litre, the replacement power would have cost approximately USD 14.57 million. At the prevailing exchange rate of about Rs. 315 to the US dollar, the bill exceeds Rs. 4.5 billion for April alone.
Energy sector analysts say the figure highlights the enormous economic value of maintaining high availability at coal-fired power plants, particularly at a time when Sri Lanka is seeking to reduce electricity costs and strengthen energy security.
“The financial impact of losing low-cost coal generation is substantial. Every unit not generated by coal has to be replaced by a much more expensive source, usually diesel or fuel oil, which ultimately affects the finances of the power sector and the wider economy,” a senior energy analyst said.
Even under a more conservative calculation, based on the average electricity generation cost of around Rs. 72 per unit recorded in 2025, the loss remains significant. The 27 million units not generated from coal would translate into an additional cost burden of nearly Rs. 2 billion.
The decline in coal generation comes at a critical juncture for Sri Lanka’s energy sector.
The government has repeatedly emphasised the need to maintain affordable electricity tariffs, while reducing dependence on imported fossil fuels and expanding renewable energy capacity.
Experts warn that any sustained reduction in low-cost baseload generation could undermine these objectives, increasing the need for costly thermal power and placing additional pressure on foreign exchange reserves.
The latest figures are expected to intensify scrutiny of generation planning, fuel procurement strategies and the operational performance of major power plants. They also underscore the importance of ensuring uninterrupted operation of coal-fired facilities until sufficient renewable and storage capacity is available to replace them reliably.
With the country striving to maintain economic stability and energy affordability, analysts argue that avoiding such generation shortfalls must remain a top priority for policymakers and power sector planners.
By Ifham Nizam
News
Sallay on hunger strike: Counsel warns CID
Asith Siriwardena Counsel for former Director of State Intelligence Service, Major General (Retd.) Suresh Sallay, detained under the Prevention of Terrorism Act (PTA) over the 2019 Easter Sunday attacks, has called upion the Director of the CID, SSP G. S. Abeysekara, to transfer his client either to a private or government hospital to receive urgently needed teatment.
Sallay was on a hunger strike, claiming mistreatment by the CID, his wife said, after visting him, yesterday.
Siriwardena wrote to the CID Director yesterday (07) after Sallay was visited by his wife, son and brother.
The text of the letter: “The family observed that Mr. Sallay’s physical condition has deteriorated to an alarming and critical level.
“He is reportedly unable to attend the visitation without the physical assistance of two officers. During the visit, he informed his family that he had refused medication, saline, food, and water. He further expressed a belief that his death is imminent and requested that arrangements be made for the donation of his eyes. He also requested an immediate visit from his Attorney for the purpose of executing his last will and other related legal documentation.
“These statements, and circumstances, demonstrate a grave deterioration in his physical and psychological condition. It is apparent that he is no longer capable of making rational decisions concerning his own welfare, health, and survival.
The prolonged conditions, under which he is presently being held have, at the very least, created a serious and immediate risk to his life.
“The State assumes a non-delegable duty of care toward every person held in its custody. Once an individual is deprived of liberty, the responsibility for safeguarding that person’s life, health, and wellbeing rests squarely upon the authorities exercising control over that individual. Any failure to discharge that duty in the face of a known and imminent medical emergency is a matter of the utmost legal seriousness.
“You are hereby formally notified that Mr. Sallay requires immediate medical intervention by qualified independent medical professionals and urgent transfer to an appropriate hospital facility capable of providing comprehensive assessment and treatment. Any delay, refusal, or failure to act despite clear knowledge of his precarious condition may give rise to personal and institutional liability under the criminal and civil law of Sri Lanka
“Should General Sallay suffer irreversible injury or death while remaining in the present conditions despite this explicit warning, it will be open to the relevant authorities, courts, and investigative bodies to examine whether such conduct amounts to a deliberate disregard of a known and foreseeable risk to life. Those responsible for decisions concerning his continued detention and medical care may be required to account personally for their actions and omissions.
“Accordingly, I demand that:
1. Mr. Sallay be transferred forthwith to a government or private hospital equipped to provide urgent medical treatment;
2. He be examined immediately by independent medical specialists, including psychiatric professionals if necessary; His legal representatives and family be granted reasonable access to him;
3. A written update on his medical status and the measures taken for his protection be provided without delay. This letter constitutes formal notice. Any further failure to act despite knowledge of the circumstances set out herein will be relied upon in any future judicial, criminal, constitutional, or international proceedings arising from harm suffered by my client.”
News
Opp. questions why Rs 10 bn meant for Ditwah victims held in Treasury account
The Opposition says the NPP government should explain why the funds received by Rebuilding Sri Lanka haven’t been utilised to provide relief to those affected by Ditwah cyclone in late November last year.
The failure on the part of the government to utilise as much as Rs 10 bn, received from local and foreign donors, came to light when the National Audit Office (NAO) appeared before the Public Finance Commission recently.
The NAO told the House Committee that no statutory fund currently existed under the name “Rebuilding Sri Lanka” and the programme operated through an account maintained under the Deputy Secretary to the Treasury.
The NAO declared that no payments had been made through this account to date.
Former SLPP MP Sanjeewa Edirimanne said that until the disclosure made by the NAO the country had been led to believe the Rebuilding Sri Lanka fund provided post-Ditwah relief. Pointing out that JVP General Secretary Tilvin Silva’s declaration in Jaffna that funds allocated to hold Provincial Council polls
had been utilised to assist Ditwah victims, Edirimanne said such blatant lies were propagated while the government held on to Rs 10 bn meant for the disaster victims.SJB MP Mujibur Rahman questioned the rationale behind keeping funds received specifically for Ditwah victims still living under extremely difficult conditions. (SF)
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