News
Cabraal vows to act on SJB MP Pathirana’s revelation of Rs 80 bn revenue loss
By Saman Indrajith
State Minister of Money and Capital Market and State Enterprise Reforms Ajith Nivard Cabraal, on Friday (4) assured Samagi Jana Balavegaya MP Buddhika Pathirana that immediate remedial action would be taken in respect of shocking revelation that some unscrupulous businessmen produced a toxic brew in the name of manufacturing artificial toddy, and corrupt Excise Officers exploited the Technical Crime Report to deprive the government Rs. 80 billion in revenue due.
MP Pathirana:
“The police and the STF commandos raid illicit toddy distilleries amidst hardships, in spite of threats to their lives. Thereafter they hand over their findings to the Excise Officers to take legal action. The Excise Officers do not take the culprits to court, and instead release them filing a Technical Crime Report (TCR). Under the TCR the racketeers only have to pay a skimpy sum by way of a composition fee.”
Pathirana said that as per Sections 49, 50 and 52 of the antiquated Excise Ordinance, the police and the STF had been barred from producing artificial racketeers and their toxic brew in courts. “After the raid, the police and STF have to hand them over to the Excise Department. Not all Excise officers are corrupt; some of them, in fact, produce the lawbreakers in court. Even in such instances the reward money for the detection and raid are not given to the police and the STF; it goes to the Excise officers who handle only the legal part of the raid.”
MP Pathirana called on State Minister of Money and Capital Market and State Enterprise Reforms Ajith Nivard Cabraal to amend Sections 49, 50 and 52 of the Excise Ordinance to enable the police to prosecute those engaged in producing artificial toddy.
The Minister promised that he would get his ministry officials to work on it.
MP Pathirana said that it was the third time he was raising a question on the large-scale racket. “I asked two recent questions from you in this House in the last couple of weeks related to other aspects of this scam. I gathered a lot of facts and details after studying this issue for a considerable time. I also tabled some documents and sent to you copies of them. I also know that your ministry officials are tied up with the budget process, but could you at least appoint a committee to investigate the matters I raised on those two occasions.”
Minister Cabraal:
“I really appreciate the hard work of the MP and I am thankful to him for raising this matter. I have instructed Excise Department officials and the Secretary to the Ministry to commence a thorough study on the matter and report to me. I assure you that I will personally attend to this matter.”
MP Pathirana:
“Since I raised this some of the racketeers have got hold of some Finance Ministry and Excise officials and are working surreptitiously to do away with the mechanisms in place to ascertain information about the toddy industry. Only around one and a half litres of toddy could be extracted from a single coconut palm and it could vary slightly owing to factors such as climate, humidity and season. The amount being sold by the licence holders varies from the actual amount extracted from palms. A difference is in the region of as 60,000-70,000 litres. So, it is obvious that toddy comes from other sources.”
Reading out a document, Minister Cabraal said that it had been mentioned in it that the approved production capacity for each bottled toddy manufacturer would be the total expected toddy yield from the number of trees licensed for tapping.
MP Pathirana:
It is that stipulation that they are trying to do away with. Once it is removed, we may never be able to guess the amount they had illicitly produced. Will you promise to prevent these businessmen and corrupt officials from removing that stipulation?
Minister Cabraal: I apologize for not having a detailed and complete answer today. But I will study this and inform this House of all details in the future date.
Responding to MP Pathirana, the Minister said the toddy industry was found in the districts of Kalutara, Gampaha, Puttalam, Badulla, Moneragala, Hambantota, Anuradhapura and all districts of the Northern and Eastern Provinces. As at Dec 31, last year there had been 3,094 licensed toddy tappers in the country but there was no information about the number of employees engaged in the supportive services of the industry. There were 32 licensed toddy producers in the country as at Dec 31, 2019.
News
US-assisted ‘Ice’ detection: NPC to examine IGP’s move to transfer drug-busting team
Senior DIG among those slated for transfer
By Shamindra Ferdinando
The National Police Commission (NPC) is expected to take up Police Headquarters recommendation to transfer a group of police officers responsible for a major ‘Ice’ bust at the Colombo port recently.
NPC sources told The Island that recommendation in respect of transfers was received last week. Sources said that though the NPC was scheduled to meet today (01), whether IGP Priyantha Weerasooriya’s recommendation would be discussed and decided today was not known.
Members of the NPC are retired High Court Judge Lalith Ekanayake (Chairman), K. Karunaharan, Dilshan Kapila Jayasuriya, A.A.M. Illiyas and Jayantha Jayasinghe
The IGP directed the Special Investigation Unit (SIU) to probe those who carried out the 31 August, 2026 raid that resulted in the detection of 463 kgs of ‘Ice’ concealed in a container that arrived from Pakistan.
The US Embassy declined to comment on the probe though it declared that the largest ever narcotics detection was made on intelligence made available by the US Drug Enforcement Administration (DEA).
The officers investigated for what an authoritative Headquarters source called shortcomings and lapses on the part of the raiding party, belonged to the Central Crime Investigation Bureau (CCIB). Senior DIG Ranmal Kodituwakku who, on behalf of the CCIB, received information directly from the DEA, is among those Police Headquarters wanted to transfer.
CCIB carried out the raid after having obtained a search order from the Aluthgama Magistrate court. Among the suspects taken in this connection are three Pakistani nationals.
News
2027 Budget to be held from 12 Nov. to 14 Dec.
* First Reading of the Budget on 7 October
The Committee on Parliamentary Business has decided that the Second Reading of the Appropriation Bill for the year 2027 (Budget Speech/presentation of Budget proposals) will take place on 12 November, followed by the Second Reading debate from 13 November to 14 December.
Secretary General of Parliament Kushani Rohanadeera said this had been decided at a meeting of the Committee on Parliamentary Business held recently under the chairmanship of Speaker Dr. Jagath Wickramaratne.
Accordingly, the Appropriation Bill was scheduled to be presented to Parliament for its First Reading on 7 October, the Secretary General said.
It was also decided that the Second Reading of the Appropriation Bill (Budget Speech) would be delivered by President Anura Kumara Dissanayake, in his capacity as the Minister in charge of Finance, on Thursday, 12 November, 2026.
Thereafter, the Second Reading debate will be held for seven days, from 13 November to 20 November. Accordingly, the vote on the Second Reading will be held at 6.00 pm on 20 November.
Thereafter, the Committee Stage debate will be held for 19 days, from 21 November to 14 December , with the vote on the Third Reading of the Budget scheduled for 6.00 pm on 14 December.
During this period, the Budget debate will be held every day, including Saturdays, except on public holidays and Sundays. Parliament is scheduled to meet at 9.30 am on each of these days.
From 9.30 am to 10.00 am each day, time will be allocated for the Parliamentary business specified under Standing Order 22(1) to (6). Thereafter, five Questions for Oral Answers will be taken up from 10.00 am to 10.30 am, followed by one question under Standing Order 27(2) from 10.30 am to 11.00 am.
Accordingly, the debate is scheduled to be held from 11.00 am to 6.00 pm on all days, except the two days on which votes are scheduled to be taken, Motions at the Adjournment Time will be taken up for debate from 6.00 pm to 6.30 pm, based on a 50:50 time allocation between the Government and the Opposition, the Secretary General stated.
It was also approved that during the Second Reading debate, 60% of the debate time will be allocated to the Government and 40% to the Opposition, while during the Committee Stage debate, 40% will be allocated to the Government and 60% to the Opposition.
Furthermore, if a division is called for on an Expenditure Head, relating to a Ministry, the relevant vote will be held at 6.00 pm at the conclusion of the proceedings on the respective day.
News
CB Governor confident over timely disbursement of next IMF tranche; hands post-2027 programme decisions to govt.
By Sanath Nanayakkare
Central Bank Governor Dr. Nandalal Weerasinghe addressed queries on the nation’s IMF bailout programme yesterday and indicated that Sri Lanka expects to reach a Staff-Level Agreement with the Fund shortly, clearing the path for the next tranche of funding under the $3 billion EFF arrangement before the end of the year.
Answering questions on Sri Lanka’s economic path, after the current programme expires in March 2027, Dr. Weerasinghe clarified that seeking a follow-up IMF arrangement was entirely a policy decision for the government rather than the Central Bank, maintaining the institutional boundary between Central Bank operations and political decision-making.
The Governor remained firm in his projection that the national economy would expand by around 4 percent throughout 2026, demonstrating economic resilience, even amid external volatilities, such as high oil prices.
Dr. Weerasinghe expressed confidence in the domestic economy’s underlying momentum. While international financial institutions and multilateral agencies had pegged Sri Lanka’s growth prospects at more conservative levels, typically around 3.0 to 3.5 percent, he emphasised that CBSL’s projections are grounded in continuous analysis of real-time indicators.
“When you compare with several other agencies, their growth projections hover around 3 to 3.5 percent. However, the economy is already growing at around 4 percent. In our projections, the economy will maintain this growth rate of around 4 percent throughout the year,” Governor Weerasinghe said.
He noted that despite mid-year quarter adjustments due to volatile oil prices, real economic indicators, including steady credit expansion across the commercial banking sector and sustained industrial and service activity, indicate that the growth trajectory remains firmly on track above the 4 percent benchmark.
Reiterating the Central Bank’s primary mandate, Dr. Weerasinghe noted that monetary policy actions remained focused on anchoring inflation and curtailing excess demand to prevent runaway price spikes.
On inflation targeting, the Governor mentioned that CBSL had submitted a technical recommendation to the Ministry of Finance to maintain an inflation target of 5 percent (+ or – 2 percent band) over the next three-year horizon.
Responding to inquiries on differing target forecasts announced by external agencies such as the IMF, Dr. Weerasinghe underscored that the Central Bank’s recommendations stem strictly from domestic technical and empirical evaluations.
“Our recommendation is based on pure technical and empirical analysis considering the country’s specific situation. We have recommended maintaining a 5 percent target for the next three years, and the government has accepted this recommendation,” he added.
Regarding foreign exchange management, the Governor noted that the Central Bank continues its active market intervention strategy aimed at smoothing out undue exchange rate volatility rather than resisting natural market trends.
Dr. Weerasinghe concluded that while the short-to-medium-term outlook remained assured, the combination of a steady 4 percent growth target and proactive fiscal measures would firmly anchor macroeconomic stability through 2026 and beyond.
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