News

COPA baffled by massive rewards for Customs at the expense of Treasury

Published

5 years ago

2021/07/31

Sahan Weerasooriya

Question mark over Tax Appeals Commission

70% of fine on Lanka Coal ends up with officers

By Shamindra Ferdinando

The cash-strapped government hasn’t been able to recover tax revenue running into billions of rupees, in spite of sporadic interventions made by the Parliamentary Watchdog, the Committee on Public Accounts (COPA).

According to a report submitted to Parliament on July 20 by COPA, the situation has been further complicated by the Customs receiving substantial amounts, as rewards, from fines imposed on tax defaulters, at the expense of the Treasury.

Prof. Tissa Vitarana, in his capacity as the Chairperson of the 22-member COPA, has submitted the report.

The COPA has questioned the Customs why prominent palm oil importers Pyramid Wilma Pvt Ltd and Naratha Agro Industries (Pvt) Ltd. were allowed to appeal in 2019 against the Attorney General’s decision that loss of revenue suffered by the Treasury to the tune of Rs 6.130 bn during 2013-2016 period should be charged from 2013 instead of 2016 as recommended by a committee that inquired into the irregularities.

Pointing out that the Tax Appeals Commission couldn’t accept appeals made after the stipulated 3 month period following a particular decision, COPA has instructed Director General of Customs, Maj. Gen (retd) Vijitha Ravipriya to inform the Tax Appeal Commission. DG, Customs has done so on Feb 2, 2021, COPA according a copy of the report made available to The Island.

Tax Appeals Commission has been established in terms of Tax Appeals Commission Act No 23 of 2011 (subsequently amended).

COPA has also dealt with an unprecedented case of Sri Lanka Ports Authority (SLPA) and Customs being involved in a costly case wherein the latter was seeking 50 percent of a fine imposed on SLPA as a reward for those involved in the inquiry. According to COPA proceedings, the SLPA had been blamed for defaulting on the payment of Rs 916,526 over the import of gantry cranes and other equipment worth Rs 11,498,829,084 way back in 2011.

In spite of talks involving stakeholders, including the Treasury as well as the House watchdog over the years, the issue hadn’t been resolved as both parties spent quiet a lot on lawyers.

Customs have sought a staggering 50 percent as a reward for officers from the fine imposed on the SLPA. The Consultative Committee on ports and shipping has inquired into the possibility of the Treasury taking the entire sum.

COPA has questioned the rationale in one government institution receiving cash reward at the expense of another as it caused quite a problem. According to the COPA report made available to The Island, the watchdog has requested Chief Accounting Officer/Accounting Officer to send all relevant reports and documents to parliament before the Customs appeared before Prof. Vitharana’s outfit in two months.

Prof. Tissa Vitharana told The Island that remedial measures should be taken to improve the revenue collection process. Appreciating the services rendered by members of his committee, the political veteran said that the need to enhance state revenue couldn’t be ignored. The LSSPer noted that the government income had now fallen very much less than 10 percent of the GDP, a situation all should be seriously concerned about.

COPA has examined the legal wrangle involving the Customs and the SLPA against the backdrop of Customs officers receiving half of Rs 205 mn imposed on Lanka Coal Company (Pvt) Ltd as rewards due to the payment being categorized as a fine instead of an additional tax. The company in question has been formed by CEB (60%), Treasury (20%), Ceylon Shipping Corporation (10%) and SLPA (10%). COPA pointed out that in addition to taking 50 % of the so called fine, Customs had secured a further 20% (Rs 41 mn) for their welfare and management fund leaving Rs 61.5 for the Treasury.

COPA has underscored the need to amend relevant laws to prevent recurrence of such irregularities.

COPA has revealed a spate of instances wherein due to range of factors, including raging Covid-19 epidemic had been blamed on the inordinate delay in settling a substantial number of tax appeals. The tax and penalties pertaining to 1,108 appeals amounted to a staggering Rs 18,684,603,316 whereas only 49 were finalized.

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Maldivian President plants a sapling to mark 60 years of Sri Lanka–Maldives Diplomatic Relations

Published

1 hour ago

2026/05/4

Priyan

President of the Maldives, Dr Mohamed Muizzu, who is on a State Visit to Sri Lanka at the invitation of President Anura Kumara Dissanayake, planted a sapling this afternoon (04) at Viharamahadevi Park in Colombo to commemorate 60 years of diplomatic relations between Sri Lanka and the Maldives.

Upon arrival at the Viharamahadevi Park in Colombo, President Dr Mohamed Muizzu was warmly received by President Anura Kumara Dissanayake. Children lined both sides of the pathway holding the national flags of the two countries and paid tribute to the visiting Maldivian President.

Among those present at the occasion were Deputy Speaker Rizvi Salih, Minister of Foreign Affairs, Foreign Employment and Tourism, Vijitha Herath and the Mayor of Colombo, Vraie Cally Balthazaar, along with several other dignitaries.

[President’s Media Division (PMD)]

News

Sri Lanka and Maldives strengthen ties with productive bilateral talks

Published

1 hour ago

2026/05/4

Priyan

Following the bilateral meeting between President Anura Kumara Dissanayake and President Dr. Mohamed Muizzu of the Maldives, who is currently on a State visit to Sri Lanka, official-level bilateral discussions between the delegations of the two countries were held this morning (04) at the Presidential Secretariat.

The discussions commenced after the formal welcome ceremony accorded to President Dr. Mohamed Muizzu earlier this morning within the Presidential Secretariat premises.

Extending a warm welcome to the Maldivian President, President Anura Kumara Dissanayake expressed his appreciation for accepting the invitation to visit Sri Lanka.

President Dissanayake noted that President Muizzu’s visit, taking place as the two nations mark 61 years of diplomatic relations, reflects the strong partnership, mutual trust and longstanding friendship between Sri Lanka and the Maldives. The President further expressed confidence that the visit would mark a new phase in bilateral relations.

The two leaders engaged in extensive discussions on ways to further expand and diversify multifaceted cooperation, including economic, cultural and social ties, in a manner that delivers mutual benefits to the people of both countries.

Key areas of focus included tourism promotion, educational cooperation, youth and sports development, challenges faced by both nations in the fisheries sector within the Indian Ocean region, education and vocational training, as well as defence training and broader security cooperation.

Representing the Government of Sri Lanka were Minister of Foreign Affairs, Foreign Employment and Tourism, Vijitha Herath, Minister of Labour and Deputy Minister of Finance and Planning, Anil Jayantha Fernando, Minister of Science and Technology, Krishantha Abeysena; Deputy Speaker Rizvie Salih, Secretary to the President, Dr. Nandika Sanath Kumanayake, Secretary to the Ministry of Defence, Air Vice Marshal Sampath Thuyacontha (Retired), Additional Secretary to the Ministry of Foreign Affairs (covering Europe, North America, East Asia and Oceania, Southeast Asia and Central Asia, South Asia, the Middle East and Legal Affairs) M. R. K. Lenagala, Sri Lanka’s High Commissioner to the Maldives, Mohamed Rizvi Hassan and Director (South Asia and SAARC) of the Ministry of Foreign Affairs, Foreign Employment and Tourism, Mahesha Jayawardena.

The Maldivian delegation included Minister of Foreign Affairs Iruthisham Adam, Minister of Economic Development and Trade, Mohamed Saeed, Minister of Fisheries, Agriculture and Marine Resources, Ahmed Shiyam, Minister of Homeland Security and Technology, Ali Ihusaan, Chief of Staff to the President, Abdulla Fayaz, Principal Secretary to the President on Foreign Relations, Mohamed Naseer; Chief Government Spokesperson, Mohamed Hussain Shareef, High Commissioner of the Maldives to Sri Lanka,Masood Imad; Minister of State for Foreign Affairs and Chief of Protocol , Mohamed Shahudy, Deputy Minister at the President’s Office, Mr Mohamed Hassaan and Minister Counsellor at the Maldives High Commission in Sri Lanka, Mr. Ismail Mamdhooh.

[President’s Media Division (PMD)]

News

Maldives and Sri Lanka exchange seven MOUs

Published

2 hours ago

2026/05/4

Priyan

Seven Memoranda of Understanding (MoUs), signed across several sectors between the Maldives and Sri Lanka, were formally exchanged this morning (04) at the Presidential Secretariat in the presence of President Anura Kumara Dissanayake and President Dr. Mohamed Muizzu of the Maldives.

Marking a new chapter in Maldives–Sri Lanka relations, the MoUs cover cooperation in the fields of health, sports, tourism, education and defence.

Accordingly:

1. MoU on Tourism Cooperation between the Democratic Socialist Republic of Sri Lanka and the Republic of Maldives was exchanged by Maldives Minister of Foreign Affairs, Ms Iruthisham Adam and Sri Lanka’s Minister of Foreign Affairs, Foreign Employment and Tourism, Vijitha Herath.

2. MoU on Archiving Cooperation between the Department of National Archives of Sri Lanka and the National Archives of the Maldives was exchanged by Maldives Minister of Foreign Affairs, Ms Iruthisham Adam and Sri Lanka’s Minister of Foreign Affairs, Foreign Employment and Tourism, Vijitha Herath.

3. MoU on Training and Professional Development of Teachers and School Leaders between the Ministry of Education, Higher Education and Skills Development of the Maldives and the Ministry of Education, Higher Education and Vocational Education of Sri Lanka was exchanged by Maldives Minister of Foreign Affairs, Ms Iruthisham Adam and Sri Lanka’s Minister of Foreign Affairs, Foreign Employment and Tourism, Vijitha Herath.

4. MoU on Sports and Youth Development Cooperation between the Republic of Maldives and the Democratic Socialist Republic of Sri Lanka was exchanged by Maldives Minister of Foreign Affairs, Ms Iruthisham Adam and Sri Lanka’s Minister of Youth Affairs and Sports, Sunil Kumara Gamage.

5. MoU on Defence Cooperation between the National Counter Terrorism Centre of the Maldives and the Ministry of Defence of Sri Lanka was exchanged by the Maldives High Commissioner to Sri Lanka, Masood Imad, and the Secretary to the Ministry of Defence, Air Vice Marshal Sampath Thuyacontha (Retired).

6. MoU between the Ministry of Defence and National Service of the Maldives and General Sir John Kotelawala Defence University of Sri Lanka was exchanged by the Maldives High Commissioner to Sri Lanka, Masood Imad and the Vice Chancellor of General Sir John Kotelawala Defence University, Rear Admiral Dammika Kumara.

7. MoU on Academic Cooperation between the University of Colombo of Sri Lanka and the Ministry of Health, Family and Welfare of the Maldives was exchanged by Maldives High Commissioner to Sri Lanka, Masood Imad and the Vice Chancellor of the University of Colombo, Professor Indika Mahesh Karunathilake.

The state visit of President Dr Mohamed Muizzu, undertaken at the invitation of President Anura Kumara Dissanayake, aims to further strengthen economic, cultural and social ties between the two countries, while enhancing their multifaceted partnership.

Cabinet Ministers, government officials and members of the Maldivian delegation, representing both Sri Lanka and the Maldives, were present at the occasion.

[President’s Media Division]