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Country suffers huge loss due to corrupt revenue collection system – JVP

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Govt. urged to act on COPA report or face the consequences

By Shamindra Ferdinando

JVP leader Anura Kumara Dissanayake says the country is paying a huge price for the failure of successive governments to streamline tax collection process. The JVPer insists the tax collection process has been somewhat debilitated by rampant corruption and irregularities.

Dissanayake was responding to The Island query regarding massive losses in tax revenue highlighted by the current Committee on Public Accounts (COPA) in its first report to the parliament tabled on July 20th.

Such large scale fraudulent activities couldn’t have been carried out without the complicity of those in authority whoever was in power, the Colombo District lawmaker.  The JVP contested the 2020 general election on the National People’s Power (NPP) ticket. The JVP parliamentary group consists of three, including one National List MP, Dr. Harini Amarasuriya.

MP Dissanayake alleged that in addition to the failure on the part of the government to collect due taxes and mismanagement of finances, absolutely unjustifiable decision to sharply reduce taxes soon after 2019 presidential election dealt a deadly blow to national economy.

The government owed an explanation why the Treasury was denied as much as Rs 650 bn in taxes at the onset of incumbent administration, MP Dissanayake said. The country could have coped up with the continuing crisis caused by raging Covid-19 epidemic much better if the tax structure in place at the time of the 2019 presidential election was retained, he said.

Responding to another query, the JVP leader emphasized that a serious examination of losses caused by the ruling SLPP’s reduction of taxes amounting to Rs 650 bn should be made.  Parliamentary watchdog committees, namely the Committee on Public Enterprises (COPE), Committee on Public Accounts (COPA) and Committee on Public Finance (COPF) should take up the matter. The latest COPA reported exposed an extremely embarrassing state of affairs in key institutions responsible for the tax collection process, the MP said.

Pointing out that the Customs and the Motor Traffic Departments coming under the purview of the Finance and Transport ministries, respectively, had been particularly named by COPA, MP Dissanayake said that massive scam in sugar imports soon after the last parliamentary poll proved how decisions were made at the expense of the national economy.

Referring to COPF proceedings that dealt with the sugar tax scam, MP Dissanayake said that COPF Chairperson Anura Priyadarshana Yapa (SLPP/Kurunegala District)  is on record as having said on January 5, 2021 consumers hadn’t benefited at all by Finance Ministry decision to reduce Rs 50 tax on imported kilo of sugar  to paltry 25 cents. MP Yapa was referring to a gazette No 2197/12 issued by the Finance Ministry on Oct 13, 2020, the JVPer said. MP Dissanayake said that the sugar tax scam was as bad as the Treasury bond scams perpetrated by the previous administration. Although some government members expressed concerns over the sugar tax scam at the COPF, the government conveniently turned a blind eye to what the JVPer called a brazen fraud perpetrated on the hapless population.

Have you ever heard of such a drastic reduction of taxes in respect of sugar on any other occasion, MP Dissanayake asked, alleging the incumbent administration as a result of sheer crookedness caused unbearable loss of revenue. The JVP leader said that sugar tax scam couldn’t be suppressed though the government acted as if nothing had happened.

Successive governments obviously facilitated fraudulent practices in the tax collection system. The incumbent government was no exception, the MP said, underscoring how government revenue gradually dropped over the years as robber barons took over the national economy. “We are now in such a desperate situation those in authority seem to be clueless where the national economy is heading,” MP Dissanayake said.

Urging the government to go flat out to recover long overdue taxes, the JVP leader said that in spite of big talk the government was in a bind, struggling to face the daunting financial challenge. Asked to explain the situation, lawmaker Dissanayake said that the raging Covid-19 epidemic deprived Sri Lanka of two major sources of income, namely funds remitted by those who had been employed overseas and the disruption of tourism. The JVPer pointed out that tourism suffered in the wake of 2019 Easter Sunday carnage followed by Covid-19 as both ruined the sector.  Acknowledging that the country had managed to sustain the garment trade and other exports, lawmaker Dissanayake said that the economy was in a critical phase. The government seemed to be either incapable of comprehending the rapid deterioration or it could sustain the economy until the ongoing vaccination drive achieved desired objective.

MP Dissanayake said that Sri Lanka could no longer afford to delay taking action to restructure revenue collection mechanism. The SLPP should be prepared to face the consequences unless continuing corrupt practices were brought to an end. The deterioration of national economy caused by Covid-19 against the backdrop of waste, corruption, irregularities and negligence could overwhelm the country soon unless remedial measures were taken.

The JVPer said that the parliamentary system of governance should take command of the situation regardless of the political power being with the SLPP. The deepening national economic crisis couldn’t be addressed by playing politics with the issue at hand as commanding overwhelming majority in parliament wouldn’t be relevant.

The JVP leader said that there was no need to comment on proposed tax amnesty to crooks as former minister Dew Gunasekera, one-time General Secretary of the Community party, in an interview with The Island explained futility of such an exercise.



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Sun directly overhead Kokkuvil, Nallur, Kodikamam and Nagar Kovil at about 12.11 noon today (28)

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The sun is going to be directly over the latitudes of Sri Lanka during 28th of August to 07th of September due to its apparent southward relative motion.

The nearest places of Sri Lanka over which the sun is overhead today (28) are Kokkuvil, Nallur, Kodikamam and Nagar Kovil about 12.11 noon.

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Eight politicians in drug kingpin probe

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Police to arrest and question four former ministers, others over links to Basik

By Norman Palihawadane

Police are investigating alleged links between suspected major drug trafficker Shiran Basik and a number of prominent politicians, with eight of them due to be arrested and questioned as investigators widen their probe into his financial dealings and network of associates, police headquarters, according to a senior police officer.

Among those set to face questioning include a sitting MP, four former ministers, and at least one of them is a female. Police are also investigating allegations that Basik provided large sums of money to politicians during election campaigns and extended other financial and material benefits to political figures.

Investigators are also looking into claims that two politicians were provided with facilities to construct houses and hotels, while efforts are under way to establish the extent of political support and assistance allegedly provided to Basik.

The Colombo Central Crime Investigation Bureau (CCIB) is expected to question the politicians based on information reportedly disclosed by Basik during interrogation. Two electoral organisers are also expected to be taken into custody as part of the ongoing investigation, according to police sources.

Meanwhile, statements are being recorded from managers and employees of several businesses allegedly linked to Basik, while investigators continue to examine information and records recovered from his mobile phone.

Basik, 48, was brought back to Sri Lanka on August 14 after being arrested in Dubai and deported. He was taken into custody by officers of the Criminal Investigation Department’s Airport Unit at Bandaranaike International Airport and subsequently handed over to the CCIB for further investigation.

Police initially obtained a 72-hour detention order to question Basik before securing approval to detain him for 90 days.

Basik, a resident of Dehiwala, is facing investigations over alleged large-scale drug trafficking as well as firearms, and unlawful assembly of weapons-related offences. Police are also examining whether he had any involvement in recent prison-related incidents and have said information has emerged linking him to the 2012 Welikada Prison riot.

The investigation has also expanded to Basik’s alleged assets and business interests in Sri Lanka and overseas.

Police have said information uncovered during questioning indicates that Basik had claimed ownership of five hotels along Colombo’s Marine Drive. Investigators have also identified two houses and two mobile phone shops in Boralesgamuwa allegedly linked to him.

A court has ordered a comprehensive examination of bank accounts linked to Basik, with the Financial Intelligence Unit of the Central Bank of Sri Lanka to conduct a review of his financial accounts. A separate investigation into his wealth and properties is being conducted by the Illegal Assets Investigation Division.

Investigators are also examining claims that Basik owns properties, including hotels and vehicles, in several European countries, as well as a high-value vehicle in Dubai. These claims remain subject to further investigation.

Basik had left Sri Lanka for Dubai in 2018, where police said he lived a lavish lifestyle while operating businesses. He was arrested by UAE authorities before being deported to Sri Lanka.

During initial questioning, Basik told investigators that Dubai police had stopped and searched him at a shopping mall and examined his mobile phone. He claimed that footage relating to Iranian missile and drone attacks was found on the device and that he was subsequently questioned over alleged links to Iran.

Police are continuing to examine the circumstances surrounding his arrest and deportation, as well as the information contained in his mobile phone and other evidence gathered during the investigation.

The ongoing probe is being conducted under the supervision of Senior DIG Ranmal Kodituwakku and SSP Kamal Ariyawansa.The allegations against Basik and the politicians named in connection with the investigation have not been established in court, and the investigations remain ongoing.

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CJ first SC judge to benefit from 22A, if enacted: BASL

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The Bar Association of Sri Lanka (BASL) has opposed the proposed “Twenty-Second Amendment to the Constitution”, saying it raises serious concerns over judicial independence and the rights and interests of the public.

In a statement signed by BASL President Rajeev Amarasuriya and Secretary Nalin De Silva, the association said it had challenged the constitutionality of the proposed amendment before the Supreme Court.

The BASL noted that the Chief Justice would be the first Supreme Court judge to benefit from the proposed amendment if it becomes law. It also referred to widespread speculation that the amendment was being expedited to facilitate an extension of the incumbent Chief Justice’s tenure, which is due to end on December 1, 2026.

Full text of the statement:

“The Bar Association of Sri Lanka (BASL) has taken a principled position opposing the Bill titled the “Twenty-Second Amendment to the Constitution” on the basis that it raises serious concerns regarding the independence of the Judiciary and the rights and interests of the people. Accordingly, the BASL has challenged the constitutionality of the proposed amendment before the Supreme Court.

“It is observed that it will be the Honourable Chief Justice who will be the first Judge of the Supreme Court who will benefit from the 22nd Amendment, if this Bill is enacted into Law.

There is widespread belief that this amendment is being rushed to facilitate the extension of the tenure of the Honourable Chief Justice which would otherwise complete on 1st December 2026. In this backdrop, in the recent past, we have witnessed allegations being made in Parliamentary Proceedings as well as on Social Media concerning the Judiciary including the incumbent Chief Justice.

“During this period, the BASL has also been subjected to unfounded attacks on social media and other platforms.

“The Judiciary, like every other institution exercising public power, must remain subject to legitimate scrutiny and accountability. Judgments, judicial conduct and the administration of justice may properly be subjected to fair, informed and responsible criticism. Where credible concerns or allegations arise regarding any member of the Judiciary, including the Chief Justice, they should be examined objectively and addressed through the appropriate constitutional and parliamentary processes which are in place, with due regard to fairness and due process.

“At the same time, everyone must exercise responsibility when making allegations concerning individual judges, lawyers and others. Personal attacks based upon unsubstantiated allegations can undermine public confidence in the administration of justice and affect the independence and integrity of the judicial process and the system of justice

“Judicial independence is not intended to shield any individual from legitimate scrutiny or accountability. It is a safeguard for the people, ensuring that disputes are determined impartially and that individual rights, the Rule of Law and the constitutional order are protected.

“The BASL therefore calls upon all organs of the State, all parties concerned and the media to respect the role of the Judiciary and the system of administration of justice, while ensuring that any genuine concerns are addressed fairly, responsibly and through the procedures established by the Constitution and the law.”

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