News
COPA questions lion’s share of fines going to Customs
Irregularities, lapses, corruption erode public finance
By Shamindra Ferdinando
The Committee on Public Accounts (COPA) has summoned the Inland Revenue Department tomorrow (23) for an inquiry regarding the inordinate delay in collecting taxes amounting to billions of rupees and extraordinary payments made to the officers of the Customs Department out of fines imposed on both public and private sector enterprises.
Besides, a COPA sub-committee is inquiring into revenue losses suffered over the years as a result of releasing vehicles imported for special purposes as dual-purpose vehicles.
SLPP MP Prof. Tissa Vitharana heads the all-party watchdog committee.
Secretary General of Parliament Dhammika Dasanayake in a statement issued on April 19 through the Communication Department of the Parliament said that Committee on Public Enterprises (COPE) and COPA summoned four enterprises. COPE called the Sri Lanka Football Federation and the National Film Corporation on April 22 and 23, respectively. The COPA summoned the Wildlife Conservation Department and the Inland Revenue on April 21 and April 23, respectively, Dasanayake said.
COPA has fixed the meeting in the wake of disclosure of major shortcomings in the overall revenue collection process. Following COPA meeting Inland Revenue Chief H.M.C. Bandara on March 10, the watchdog committee called for accelerated measures to recover dues. The COPA pointed out that out of Rs 107 bn due to the government, only Rs 224 mn had been recovered so far, immediate measures were required to collect taxes and fines.
At the same meeting, the COPA, having questioned the correctness of a list containing tax defaulters furnished by the Inland Revenue Department, emphasized the pivotal importance of rectifying the shortcomings. The COPA also raised the practicability in recovering taxes in terms of the data provided by ‘Legacy’ and ‘RAMIS’ computer systems.
The Inland Revenue Commissioner General lamented before COPA how inordinate delay in legal proceedings thwarted their efforts to recover taxes. The COPA assured that the Justice Ministry and the Finance Ministry would be summoned for a meeting along with the Inland Revenue Department to explore ways and means of overcoming the issue at hand.
At a subsequent COPA meeting held late March, it was revealed that in addition to their failure to recover taxes amounting to Rs 2,670 mn due from casinos, the Inland Revenue received 6,878 dishonored cheques to the tune of Rs 2,451,465,383. COPA members present on this occasion included Dayasiri Jayasekera, Lasantha Alagiyawanna, Dr. Sudarshani Fernandopulle, Tissa Attanayake, Mohamed Muzammil, Niroshan Perera, Dr. Upul Galapatti, Dr. Harini Amarasuriya, Cader Mastan, S. Sritharan and Weerasumana Weerasinha.
That particular meeting was also told that the amount of collectable taxes in terms of the ‘Default Taxes (Special Provisions) Act No 16 of 2010 (certified on Dec 07, 2010) amounted to a staggering Rs 144.5 bn.
COPA and the Consultative Committee on Ports and Shipping had also taken up on March 9 and 24 the highly contentious issue of the Customs officers taking a big share of fines imposed on tax defaulters, both public and private sector. COPA pointed out that the Customs took advantage of the provision that 50 per cent of the fines imposed on defaulters were shared among those involved in a particular detection. COPA has discussed two specific issues in this regard. COPA pointed out that the allocation of 50 per cent of a fine received from the Sri Lanka Ports Authority (SLPA) for defaulting in respect of gantry cranes to Customs officers was a major problem. COPA focused on taking necessary measures in this regard after having discussed the matter with relevant authorities, including the Treasury Secretary S.R. Attygalle.
COPA pointed out how out of Rs 205 mn fine imposed on Lanka Coal Company (Pvt) Limited for defrauding taxes, Rs 102.5 mn (50 per cent of the total amount) had been distributed among Customs officers as rewards and Rs 41 mn for their welfare (20 per cent) thereby leaving the government with only Rs 61.5 mn. COPA has directed Treasury Secretary Attygalle to conduct a fresh inquiry into this and take tangible measures to prevent similar malpractices in the future.
COPA investigations have also revealed massive racket in the registration of ‘dual purpose’ vehicles. It revealed that as a result of corrupt elements since 2013 registering vehicles imported for special purposes as ‘dual purpose’ vehicles the Treasury lost taxes amounting to Rs 220 mn.
In addition to that the Treasury had been also deprived of taxes amounting to Rs 1.300 mn by not imposing Rs 3 mn each on 443 special vans brought to the country during 2010-2019 period.
COPA also stated that the Customs perpetrated another massive fraud by allowing the import of 10 vans and 414 lorries as special purpose vehicles during 2010-2014.
COPA reported the Customs imposing Rs 1.5 mn tax on a super luxury car instead of legitimate Rs 56 mn.
It revealed the loss of revenue to the tune of Rs 6.1 bn during 2013-2016 period due to the Customs adopting wrong procedure in respect of large quantities of palm oil imports by two enterprises. The watchdog committee has instructed the Customs to expedite measures to recover the dues from those companies.
News
Bambalapitiya Railway Station renovated under the “Dream Destination” project opened to the public
Prime Minister Dr. Harini Amarasuriya stated that Sri Lanka is now creating a common dream as a nation and that the Government’s objective is to make public transport the convenient choice for the people. The Prime Minister made these remarks while participating in the ceremony held to open the renovated Bambalapitiya Railway Station under the “Dream Destination” project.
The renovated Bambalapitiya Railway Station was opened to the public on 10 September under the “Dream Destination” project, jointly implemented by the Ministry of Transport, Highways and Urban Development and the Sri Lanka Railways Department in line with the Clean Sri Lanka national programme. Prime Minister Dr. Harini Amarasuriya participated in the occasion.
The Prime Minister also inspected the renovated railway station, as well as the new pedestrian overpass providing access to the railway station, constructed by the Road Development Authority for which the Dawoodi Bohra community in Sri Lanka contributed Rs. 60 million.
Addressing the gathering, the Prime Minister expressed her special appreciation to the Bohra community for taking the initiative to renovate and provide the people with improved facilities at the Bambalapitiya Railway Station, a busy and well-known location in the Colombo District.
She stated that the renovation of public spaces and the provision of improved facilities have contributed to generating greater interest and a more positive perception of public transport among the people.
The Prime Minister also expressed her appreciation to the Minister of Transport, Highways and Urban Development, the Deputy Ministers and the staff for their contribution towards improving public transport services and attracting greater public interest towards these services.
The development of a country is not determined by the number of private vehicles it has. It is determined by the manner in which people use public transport. The Government’s objective is to improve the public transport service, which has disappointed the people for many years, and create a situation where people feel that public transport is more convenient and safer than using a private vehicle. The Government’s commitment to public transport is clearly demonstrated by the increased allocation of funds for the sector. The ’Dream Destination’ programme is another significant initiative under this effort, bringing together State institutions and the private sector to contribute to national development,” the Prime Minister stated.
“A country does not belong only to the Government. A country is the home for everyone who lives in it. It is the responsibility of all of us to contribute to that home through our knowledge, labour or resources. For a long time, we did not have a common dream as a country. Today, we feel that such a dream is beginning to emerge.
“We have a collective dream. The journey towards that dream is the collective journey we have begun together to build our country, which is our common home.
“What we witness here today is the active participation of our people, our diverse communities and the private sector in this journey. Such collective participation is essential to moving a country forward. Therefore, we deeply appreciate this contribution.
“The Bohra community reminds us today of the importance of this collective spirit. We have now embarked on a collective journey. We share a common dream of what our country should be, what the future of our country should look like and what kind of experience life in our country should offer. The Clean Sri Lanka national programme further strengthens these objectives,” the Prime Minister further stated.
Addressing the gathering, Deputy Minister of Urban Development Eranga Gunasekara stated that increased funding would be allocated to the Sri Lanka Railways Department for development activities next year. He noted that public transport and railway services had not previously received sufficient attention from the Government, but that this would change moving forward.
“Our transport services are progressing step by step, and the railway system is a key component of this development. Accordingly, on the instructions of the President, we will commence the electric railway system, which has long been a dream for our country, next year. We expect to introduce electric railway services from Maradana to Makumbura, from Maradana to Panadura and from Maradana to Ragama. We will also commence work to extend the Kelani Valley railway line from Avissawella to Ratnapura.
He also appreciated the contribution made by private institutions towards the “Dream Destination” project without seeking any promotional benefits in return.
Speaking on behalf of the Dawoodi Bohra community, Khuzaimah Jefferjee stated that the Dawoodi Bohra community, which has been part of Sri Lanka’s social, cultural and economic landscape for more than 150 years, believes that being a citizen of the country means more than simply living in the country. It means contributing to the country, caring for it and leaving behind a better country for future generations.
He said that, as part of this responsibility, the community had taken steps to renovate, modernise and beautify the Bambalapitiya Railway Station. He added that the community hopes these efforts will make the daily journeys of passengers a cleaner, safer, more convenient and dignified experience.
The occasion was attended by the Deputy Speaker of the Parliament of Sri Lanka Dr. Rizvie Sally, Deputy Minister of Religious and Cultural Affairs Muneer Mulaffer, Mayor of the Colombo Municipal Council Vraie Cally Balthazar, Secretary to the President Dr. Nandika Sanath Kumanayake, Secretary to the Prime Minister Pradeep Saputhanthri, General Manager of Sri Lanka Railways Padmapriya, Janab Amil Saheb Ibrahim and representatives of the Dawoodi Bohra community, officials of the Clean Sri Lanka programme and several others.


[Prime Minister’s Media Division]
News
Steps being taken to reduce paper usage in parliament and the public sector through digitalisation – PM
Prime Minister Dr. Harini Amarasuriya stated that steps are being taken to reduce the use of paper in Parliament and the public sector through digitalisation.
The Prime Minister made these remarks in Parliament on Thursday (10 September) in response to a question raised regarding digitalisation and the use of paper.
The Prime Minister further stated:
“The total expenditure incurred in 2023, 2024 and 2025 for the provision of Hansard reports, Order Books, Agendas and other parliamentary printed materials provided to Members of Parliament and Ministers for use within the Chamber is Rs. 45.3 million in 2023, Rs. 58.7 million in 2024 and Rs. 73.1 million in 2025.
All these printed materials have been produced based on requests made by Parliament. At the same time, a programme is currently being developed to reduce the use of paper.
In accordance with a request made by the Secretary to the Treasury to the Secretary-General of Parliament, the Committee on Parliamentary Business considered the possibility of submitting reports to Parliament solely in digital format in the future. It was decided to conduct a survey to ascertain the preference of each Member of Parliament. Based on the results of the survey, arrangements will be made to provide relevant documents digitally to Members who prefer digital copies, while printed copies will be provided to those who prefer printed versions.
Following the completion of this survey, arrangements will be made to implement the programme on a date to be determined by the Committee on Parliamentary Business.
Similarly, all ministries and government institutions are currently taking steps towards digitalisation while reducing their use of paper. However, this process will take some time. In this manner, particularly the exchange of files and many other such processes can be facilitated through digital systems in the future.
For example, in the Ministry of Education, applications for leave submitted by university lecturers for overseas travel were previously submitted to the Ministry in printed form. The entire process has now been digitalised. The Ministry, through the University Grants Commission, provides approval for such leave applications through a digital process. Ministries across the government are taking similar measures. We believe that once digital systems are fully established, we will be able to significantly reduce the use of paper.
Responding to a question regarding measures to reduce the weight of schoolchildren’s bags, the Prime Minister stated:
The weight of students’ books will be reduced through the activity-based learning process introduced under the new education reforms. Since the books will be kept in the classroom, students will no longer need to carry them back and forth. They will only need to take the books home at the end of the term after completing their work.
From 2027, a module-based learning process will be introduced for Grade 6. Modules will not consist of large textbooks; instead, students will be provided with modules relevant to each subject for the particular term. Therefore, this system will significantly reduce the weight of schoolchildren’s bags.
[Prime Minister’s Media Division]
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INS Udaygiri departs Colombo concluding formal visit
The Indian Naval Ship (INS) Udaygiri departed the Port of Colombo today, 11 September 2026, following the successful completion of a four day official visit.
On her departure, the Sri Lanka Navy bade farewell to the ship in accordance with time-honoured naval traditions.
During the visit, naval personnel from both navies engaged in joint initiatives to strengthen bilateral ties. These included a friendly volleyball match, a beach cleanup along the Galle Face
promenade, and a training exercise on Visit, Board, Search, and Seizure (VBSS) conducted by the Sri Lanka Navy Special Boat Squadron (SBS).
As part of the visit, the Indian Navy handed over a consignment of spares and supplies to the Sri Lanka Navy. Visiting crew members also toured key tourist attractions in and around Colombo.
Official interactions of this nature aim to enhance cooperation and knowledge-sharing between the two maritime forces, supporting joint responses to evolving regional maritime challenges.
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