News
VFS Global again offers to cooperate with govt. following exposure by NAO
…withheld over USD 1.4 mn belonging to SL, funds routed through foreign banks
Outsourcing and technology specialist VFS Global, investigated by the National Audit Office (NAO) over the controversial online visa issuance scheme, yesterday (29) expressed its readiness to cooperate with the Auditor General, or any other relevant authority.
In a statement issued through a PR agency, VFS Global claimed that though they, on 07 November, 2024, offered to provide ‘full support and any information which may be required’ to the Auditor General, no response had been received. According to the statement, VFS Global made the offer after hearing of the NAO move to conduct an audit. However, VFS Global remains committed to extend its support to the Auditor General, the company said.
President Ranil Wickremesinghe’s government entered into a controversial outsourcing agreement with GBS Technology Services & IVS Global FZCO (IVS-GBS), V F Worldwide Holdings Ltd (VFS Global) on 21 December, 2023, for provision of e-visa and other related services. On behalf of the government, the Department of Immigration and Emigration entered into the agreement.
The VFS statement claimed as per the terms of this agreement VFS Global had a limited role as technical partner as the IVS-GBS was the prime contractor.
Sources familiar with the issues relating to the agreement, pointed out that the then Controller General of Immigration and Emigration, Harsha Illukpitiya, on 23 September, 2024, was given two years’ imprisonment for contempt of court, following his failure to comply with an interim order related to the issuance of electronic visas.
The Supreme Court bench that gave the order consisted of Justices Yasantha Kodagoda, Janak de Silva, and Arjuna Obeyesekere.
The NAO audit report, dated 03 October, 2025, revealed GBS Technology Services and IVS Global-FZCO, operating under VFS VF Worldwide Holdings Ltd., collected both the 2.5% Social Security Contribution Levy (SSCL) and 18% Value Added Tax (VAT) from visa applicants, between April and August 2024, but conveniently failed to remit these taxes, causing a loss of $ 1,418,360 to the Government ($ 172,970 in SSCL and $ 1,245,390 in VAT).
The audit also revealed the company earned an additional $ 1.8 million from visa-fee-waiver countries, where visitors were exempt from visa fees but were still charged a service fee.
The audit exposed major financial and procedural irregularities, including tax evasion, foreign remittance violations, and breaches of procurement law.
NAO also disclosed that visa fee revenues were routed directly to foreign bank accounts, managed by the private service providers, instead of being deposited into official Sri Lankan government accounts. This practice prevented the govermentt from independently verifying the actual income generated, creating, what the report described as, “a significant accountability gap.”
Top Opposition spokesman Prof. G. L. Peiris repeatedly pointed out that the government entered into a new agreement at the expense of arrangements implemented by Mobitel Private Ltd.
NAO highlighted that the proposals for the new agreement had been submitted on 08 September, 2023, and the Cabinet of Ministers appointed a committee to evaluate it on 11 September, 2023, and approval was granted on 11 December, 2023, and finalised on 21 December, 2023 (SF)
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Landslide early warnings in force in the Districts of Badulla, Kandy, Kegalle, Kurunegala, Matale, Nuwara Eliya and Ratnapura
The Landslide Early Warning Center of the National Building Research Organisation [NBRO] has issued landslide early warnings to the Districts of Badulla, Kandy, Kegalle, Kurunegala, Matale, Nuwara Eliya and Ratnapura valid until 1600hrs on 14th December 2025.
Accordingly,
LEVEL III RED warnings are in force in the Divisional Secretaries Divisions and surrounding areas of Ududumbara, Medadumbara, Ganga Ihala Korale, Pathadumbara, Panvila, Udapalatha, Doluwa, Deltota and Minipe in the Kandy district, and Rideegama in the Kurunegala district.
LEVEL II AMBER warnings are in force in the Divisional Secretaries Divisions and surrounding areas of Uva Paranagama, Passara, Welimada, Haputhale, Lunugala, Soranathota, Ella, Kandeketiya, Bandarawela, Meegahakivula, Badulla, Hali_Ela and Haldummulla in the Badulla district, Harispattuwa, Pathahewaheta, Thumpane, Udunuwara, Poojapitiya, Hatharaliyadda, Gangawata Korale, Yatinuwara, Kundasale, Akurana and Pasbage Korale in the Kandy district, Rambukkana, Yatiyanthota, Aranayaka, Kegalle, Bulathkohupitiya, Mawanella, Warakapola and Galigamuwa in the Kegalle district, Polgahawela, Mallawapitiya, Alawwa and Mawathagama in the Kurunegala district, Ukuwela, Naula, Wilgamuwa, Matale, Laggala Pallegama, Rattota, Ambanganga Korale, Yatawatta and Pallepola in the Matale district, Walapane, Hanguranketha, Nuwara Eliya, Kothmale East, Mathurata, Nildandahinna, Thalawakele, Norwood, Kothmale West and Ambagamuwa Korale in the Nuwara Eliya district, and Kahawaththa, Kolonna and Godakawela in the Ratnapura district.
LEVEL I YELLOW warnings are in force in the Divisional Secretaries Divisions and surrounding areas of Dehiowita, Deraniyagala and Ruwanwella in the Kegalle district, and Kalawana, Kuruwita, Elapatha, Ayagama, Kiriella, Balangoda, Openayake, Imbulpe, Ratnapura, Kaltota, Eheliyagoda, Pelmadulla and Nivithigala in the Ratnapura district.
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The rights of the fishing community will never be compromised – President
President Anura Kumara Dissanayake affirmed that the Government will never allow the violation of the rights of the fishing community, emphasizing the State’s firm commitment to protecting both land resources and the coastline.
The President also stated that the Government will address the challenges faced by fishing communities across the country through discussion and constructive engagement, ensuring sustainable solutions while safeguarding livelihoods.
President Anura Kumara Dissanayake made these remarks while attending a Special District Coordination Committee Meeting held on Saturday (13) afternoon at the Mannar District Secretariat, convened to review on-going efforts to restore normalcy to public life and rehabilitate infrastructure in the Mannar District following the recent disaster.
Highlighting the urgent need for a permanent solution to flooding in the Mannar District, the President instructed officials to proceed with the proposed flood control project after conducting comprehensive studies to ensure its long-term effectiveness.
Special attention was drawn to the severe impact of the disaster on the fishing sector. It was revealed that approximately 12,000 fishermen are currently unable to engage in fishing activities due to flooding and adverse weather conditions.
The President directed that dry ration packs be provided for one week to fishing families who, although not directly affected by floods, have lost their livelihoods due to unfavourable weather conditions.
Additionally, discussions were held on engaging with the Chinese Embassy to distribute a stock of fishing gear donated by the Government of China to fishermen affected by the disaster.
Attention was also focused on illegal land encroachments within the water catchment area of the Yodha Wewa Sanctuary. The President instructed that strict legal action be taken against individuals obstructing the placement of boundary markers around the reservoir.
It was reported that 70 families in the Mannar District have lost their homes due to the disaster. Discussions were held on rebuilding these houses and identifying suitable land for resettlement. A committee will be appointed to identify the required land within the next two weeks.
The meeting also addressed the expansion of facilities at Mannar Base Hospital and other hospitals, along with restoring health services and normalizing educational activities in the district.
The President further instructed that the Rs. 15,000 assistance provided by the Treasury for schoolchildren be disbursed promptly through Divisional Secretaries, based on recommendations from Grama Niladhari officers.
Extensive discussions were also held on reconstruction of damaged roads and bridges, restoration of water and electricity supply, rehabilitation of irrigation systems, compensation for losses in agriculture and livestock sectors and supporting affected communities to restart their livelihoods without delay
The meeting was attended by Deputy Minister of Cooperative Development and Chairman of the Vanni District Coordination Committee Upali Samarasinghe, Northern Province Governor N. Vethanayahan, Members of Parliament S. Thilaganathan, M. Jegatheeswaran, T. Ravikaran, Sathiyalingam, Selvam Adaikkalanathan, Kader Mastan and Rishad Bathiudeen, along with other government and opposition parliamentarians.
Also present were the Secretary to the Ministry of Finance, Secretary to the Ministry of Defence, Northern Province Chief Secretary D. Murugesan, Mannar District Secretary K. Kanageswaran, senior government officials, and representatives of the security forces.
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Prioritize rebuilding the livelihoods of disaster-affected communities – President
President Anura Kumara Dissanayake has instructed officials to give top priority to restoring the livelihoods of communities affected by the disaster. He emphasized the need to expedite compensation payments for damages and to take immediate measures to revive the agriculture, fisheries and industrial sectors.
The President further directed that all compensation payments for crop damage be completed before December 25.
These instructions were issued during a special District Coordinating Committee meeting held on Saturday (13) morning at the Puttalam District Secretariat.
President Anura Kumara Dissanayake described the recent cyclone as one of the largest disasters the entire country has faced in recent times. He commended the dedicated efforts of the tri-forces, Police and public officials in restoring the lives of affected communities. The President noted that, thanks to their commitment, a significant portion of essential infrastructure including electricity, water supply and roads has already been rehabilitated.
He further emphasized that the Government’s ability to provide such substantial compensation to disaster-affected communities is the result of the strong fiscal discipline of the Government.
Taking into account the challenges that have arisen in the distribution of allowances and aid so far, the President instructed Divisional Secretaries to ensure that compensation is provided strictly to eligible recipients and to fully intervene to prevent any deviation from this policy under any circumstances.
During the meeting, the rehabilitation of damaged highways and bridges in the district was discussed in detail. The President inquired into issues arising during these reconstruction efforts and provided on-the-spot solutions in consultation with the relevant officials.
The construction of the Lower Kala Oya Bridge was also discussed. The President instructed that a temporary bridge be built to meet the needs of the tourism sector. He emphasized that all construction activities should be carried out with a thorough understanding of necessity and proper structural assessments.
The President further highlighted that previous large-scale projects were abandoned without delivering tangible benefits or the intended outcomes. He stressed that future infrastructure development should focus not only on regional needs but also on the broader economic benefits for the country as a whole.
The President inquired about the ongoing efforts to restore electricity supply in the district and emphasized the need to complete these works without delay.
He also reviewed measures being taken to re-establish water supply and instructed provincial authorities to intervene promptly, noting that current well cleaning efforts in the district are insufficient.
Regarding agriculture, the President inquired about preparations by local farmers for the upcoming Maha paddy cultivation. He directed officials to swiftly create a conducive environment for farming, minimize the amount of abandoned land and explore alternative methods to ensure productive use of farmland.
He instructed that all compensation due to farmers be disbursed before December 25, that payments be made regardless of whether the land is in reserves or legally protected areas, and that systematic measures be implemented to prevent cultivation on reserved lands.
The President also highlighted the need for comprehensive soil conservation programmes in areas such as Kalpitiya.
The President emphasized the need to provide fair compensation to those engaged in the livestock sector in order to restore their livelihoods. He also highlighted the importance of obtaining accurate ground-level data and stressed the necessity of introducing legislation to ensure the registration of all livestock farms.
Due to the disaster, 627 houses in the district were completely destroyed, and 20,813 houses sustained partial damage. The President instructed that compensation for the affected families be expedited, emphasizing priority resettlement on government land. Where government land is unavailable, he directed that Rs. 5 million be provided to each family for the purchase of alternative land.
For those whose houses were completely destroyed, the President directed that new housing projects be implemented in a manner that ensures ownership of a house valued at Rs. 5 million for each beneficiary.
Attention was also given to the fisheries sector. Discussions were held on providing assistance for the repair of damaged fishing boats, as well as implementing fair compensation and concessional bank loan schemes for prawn farmers.
President Dissanayake also inquired into the operations at Chilaw Hospital. Authorities informed him that patient admissions and the functioning of several units could resume by next week.
Minister of Public Administration, Provincial Councils, and Local Government and Chairman of the Puttalam District Coordination Committee Chandana Abeyratne, Deputy Minister of Environment Anton Jayakody, North Western Province Governor Tissa Warnasuriya, Government and Opposition Members of Parliament from Puttalam District, Local Government Representatives including the North Western Provincial Secretary, Secretary to the Ministry of Finance Dr. Harshana Suriyapperuma, Puttalam District Secretary, Divisional Secretaries, Government Officials, and Security Forces Representatives were present at the event.
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