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)
News
Power sector overhaul targets losses, debt and tariffs
Independent trade unions cry foul
The government has launched a far-reaching overhaul of the electricity industry, breaking up the Ceylon Electricity Board (CEB) into six fully state-owned companies, claiming to rein in chronic losses and mounting debt.
Under the Preliminary Transfer Plan, the newly incorporated entities, namely, Electricity Generation Lanka (Pvt) Ltd (EGL), National Transmission Network Service Provider (Pvt) Ltd (NTNSP), National System Operator (Pvt) Ltd (NSO), Electricity Distribution Lanka (Pvt) Ltd (EDL), CEB Employees Funds (Pvt) Ltd (CEBEF) and Energy Ventures Lanka (Pvt) Ltd (EVL), will take over the assets, liabilities and operations of the CEB from the appointed date.
Independent trade unions have opposed the restructuring programme.
At the core of the new model is the creation of an independent National System Operator, which will handle power system planning and competitively procure electricity from Electricity Generation Lanka, Independent Power Producers and non-conventional renewable energy developers. Power will be wheeled through the national grid operated by the NTNSP and sold to distribution companies.
Explaining the economic rationale, Eng. Pubudu Niroshan Hedigallage said the separation of functions was critical to restoring cost discipline in the sector.
“Electricity planning and procurement will now be carried out independently, based on least-cost principles. That is essential if we are to control generation costs and ease the upward pressure on tariffs,” he said.
Electricity Generation Lanka, though a successor to the CEB, will compete with private and renewable energy producers for projects, a move expected to curb inefficiencies and end guaranteed returns enjoyed under earlier arrangements.
“There will be no automatic allocation of projects. EGL must compete in the market like any other generator,” Eng. Hedigallage said.
According to officials, the Preliminary Transfer Plan provides for one generation and one distribution company initially, with further unbundling planned under the Final Transfer Plan to introduce sharper financial accountability at operational level.
Economists note that the restructuring is closely watched by multilateral lenders and investors, who have repeatedly flagged the power sector as a major fiscal risk.
The government has insisted that the reforms do not amount to privatisation, stressing that all six entities remain 100 percent state-owned. However, independent trade unions are of the view that what the government has undertaken is divestiture in all but name.
By Ifham Nizam
News
India, Sri Lanka speakers discuss technology-driven parliamentary innovation, including AI-enabled systems
Speaker of Lok Sabha Om Birla and Sri Lankan Speaker (Dr.) Jagath Wickramaratne recently discussed the possibility of expanding parliamentary cooperation through regular exchanges, formation of friendship groups, collaboration in policy and programme design and deeper engagement in technology-driven parliamentary innovation, including AI-enabled systems, real-time multilingual translation, and capacity building through Parliamentary Research and Training Institute for Democracies (PRIDE).
The discussion took place on the sidelines of the 28th Conference of Speakers and Presiding Officers of the Commonwealth (CSPOC) held in New Delhi recently.
The following is the text of the statement issued by the Indian High Commission in Colombo: ” Speaker of the Parliament of Sri Lanka (Dr.) Jagath Wickramaratne concluded his visit to India from 14-18 January 2026, for participation in the 28th Conference of Speakers and Presiding Officers of the Commonwealth (CSPOC) held in New Delhi. This was his first visit to India after assuming office. He was accompanied by Secretary-General of Parliament Kushani Rohanadeera and Assistant Director, (Administration) of the Parliament of Sri Lanka Kanchana Ruchitha Herath. Following the 28th CSPOC from 14-16 January 2026, Speaker and his delegation visited Jaipur, Rajasthan as a part of a two-day tour for CSPOC delegates from 17-18 January 2026.
The 28th CSPOC was inaugurated by Prime Minister of India Narendra Modi on 15 January 2026 at the Central Hall of Samvidhan Sadan, Parliament House Complex, New Delhi. Welcoming parliamentary leaders from across the Commonwealth, Prime Minister Modi highlighted the success of Indian democracy in providing stability, speed, and scale. He shared India’s efforts at giving voice to the Global South and forging new paths of cooperation to co-develop innovation ecosystems. He underlined the use of Artificial Intelligence by the Parliament of India to attract youth to understand Parliament. Prime Minister expressed his confidence in the CSPOC platform for exploring ways to promote knowledge and understanding of parliamentary democracy.
The conference, chaired by Lok Sabha Speaker Om Birla, convened 44 Speakers and 15 Deputy Speakers from 41 Commonwealth countries, along with representatives of four semi-autonomous Parliaments. The theme of the conference was “Effective Delivery of Parliamentary Democracy.” During the conference, participants addressed the role of Speakers in reinforcing democratic institutions, the integration of artificial intelligence in Parliamentary functions, the influence of social media on Members, approaches to enhance public engagement with Parliament, and measures to ensure the security, health, and wellbeing of Members and Parliamentary staff.
The visit marked a significant milestone in the evolving parliamentary partnership between India and Sri Lanka. Last year, two Parliamentary Delegations visited India for Orientation Programmes in May 2025 and August 2025 respectively. These visits, in line with the intent of the India – Sri Lanka Joint Statement on ‘Fostering Partnerships for a Shared Future’, further reinforce the strong democratic ethos and enduring friendship shared between the two nations.”
News
Pakistan HC celebrates academic achievements of Lankan graduates
The High Commissioner of Pakistan in Sri Lanka hosted a special reception on Friday (16) for Sri Lankan alumni who have recently returned from their studies in Pakistan. The event, held at the Pakistan High Commission, celebrated the academic achievements of the graduates and reinforced the deep-rooted educational ties between the two nations.
The Allama Iqbal Scholarship Programme, a flagship initiative launched in 2019, has become a vital pillar of bilateral cooperation. The High Commissioner highlighted that Pakistan offers 1,000 fully funded scholarships at graduate, postgraduate, and PhD levels, with over 500 Sri Lankan students currently pursuing their education in Pakistan’s premier universities.
“Sri Lanka and Pakistan share an enduring friendship rooted in a shared history of mutual respect and culture,” the High Commissioner remarked during the address. “Education is the key to unlocking the success of your brilliant futures and creating bonds that extend well beyond the classroom”.
Addressing the alumni as “custodians” of a noble cause, the High Commissioner urged the alumni to act as brand ambassadors by sharing their knowledge to guide deserving students toward academic opportunities in Pakistan.
He emphasised their responsibility to mentor young minds, ensuring no capable student misses the chance for a promising future. Furthermore, the alumni were encouraged to take an active role in organising frequent educational and cultural engagements to inspire and enlighten others while strengthening the ties between the two nations.
The High Commissioner emphasized that each graduate serves as a “bridge” between the two countries, playing a meaningful role in uplifting Sri Lanka while further strengthening Pakistan–Sri Lanka relations. The alumni were invited to remain closely connected with the High Commission to facilitate future initiatives that strengthen people-to-people ties.
The evening concluded with a traditional Pakistani dinner, where the alumni shared stories of their academic growth and cultural experiences in Pakistan in a spirit of friendship and togetherness.
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