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Customs spokesman rejects COPA concerns

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Seevali Arukgoda

By Shamindra Ferdinando

Senior Director of Customs Seevali Arukgoda strongly defended Customs Officers’ Management and Compensation Fund (COMCF) taking 70% of total penalty imposed on public or private sector wrongdoers. The fund is believed to be the largest of its kind in the country.

Arukgoda, who also functions as the Customs spokesperson, insisted that 20% of their share was spent on foreign training for Customs officers, rewards for officers as well as informants and police and security forces personnel responsible for successful detections. The Customs spokesperson said so when The Island sought his response to parliamentary watchdog Committee on Public Accounts (COPA) expressing concern over the government receiving only 30% of the penalty. COPA has been pushing for speedy collection of taxes as the country struggles to meet IMF conditions pertaining to revenue targets.

The COPA pointed out that the 70:30 ratio applied to all penalties imposed on offenders. The all-party committee has asserted that the ratio that had been decided by stakeholders wasn’t fair. Arukgoda pointed out that COMCF provided funds for various needs that should have been otherwise met by the government, and that, too, should have been taken into consideration. Therefore, it wouldn’t be fair to assert that the entire sum was utilised by the Customs rewards’ scheme, Arukgoda said, adding that even the Supreme Court endorsed the operation of that scheme.

Referring to just one incident out of about two, over so many years, the killing of Assistant Superintendent Customs Sujith Prasanna Perera on March 24, 2001 in the Kelaniya police area, Arukgoda said that the fund was meant to assist families of officers in such instances. The fund managed by Customs is subjected to scrutiny by the Treasury and the Auditor General’s Department.

COPA recently questioned the rationale behind Customs taking 70 percent of the Rs 205 mn fine imposed on the government managed venture Lanka Coal Private Limited for furnishing false data when an additional Rs 187 mn VAT (Value Added Tax) could have been imposed instead. Had that been done, the entire sum would have been credited to the Treasury, COPA said. The House asserted that instead of imposing additional VAT after the detection of the offense, Customs imposed a penalty to secure 70% of the penalty.

Arukgoda stressed that the operation of the fund was in line with the law and accepted by all stakeholders. The Customs spokesperson asserted that there was no need to alter the operation of the fund or the method of its funding.

When the top management of the Customs was questioned by the parliamentary watchdog on this matter during a recent meeting in Parliament, officers claimed that they were engaged in discussions with the Treasury to prevent the recurrence of such incidents, according to the statement issued by Parliament.

Responding to further queries, the Customs spokesperson maintained that they couldn’t treat the public and private sector differently. “Some have suggested that state sector enterprises be exempted from penalties. But that cannot be done unless the government amended the relevant laws and regulations,” the outspoken official said, while disclosing that there were other cases involving the Sri Lanka Telecom, Sri Lanka Ports Authority, Ceylon Electricity Board as well as Lanka Coal Pvt. Ltd.

When The Island raised this matter recently at the Presidential Media Centre, State Finance Minister Ranjith Siyambalapitiya said that the Treasury was engaged in a dialogue with Customs in this regard. The Minister said that the issue at hand should be discussed taking into consideration the overall picture.

The minister added that the government was taking appropriate measures to streamline revenue collection. The Minister explained the continuing difficulties experienced by the government in collecting taxes, penalties and interests with over Rs 700 bn tied up in legal cases. The Kegalle district lawmaker said that Rs 943 bn categorized as uncollected taxes according to latest available reports pertained to cases pending the past 20 years.



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Coal scandal: Govt. urged to release lab report

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Pubudu Jagoda

The government is under mounting pressure to release a foreign laboratory report on the controversial coal consignment imported for the Lakvijaya Power Plant, with the Frontline Socialist Party (FSP) accusing the authorities of political interference and tender manipulation.

Speaking to the media after a party meeting in Homagama yesterday, FSP Education Secretary Pubudu Jagoda demanded an immediate explanation for the delay in disclosing the report from a Dutch laboratory, Cotecna, which was commissioned to test samples of the coal stocks in question after doubts were raised about an earlier local laboratory assessment. Jagoda said Cabinet media spokesperson Dr. Nalinda Jayatissa had announced that the report would be submitted by 16 January, but it had yet to be made public.

“The Sri Lankan lab confirmed the coal was substandard and could damage both the environment and power plant machinery. The foreign lab has independently verified the same results, we are told. Yet, political pressure appears to be delaying the release of the report.” He warned that any attempt to issue a false report would eventually be exposed and urged the government and the laboratory to maintain transparency.

SLPP MP D.V. Chanaka told Parliament last week that while 107 metric tonnes of coal were normally required per hour to generate 300 megawatts, but as many as 120 tonnes of newly imported coal were needed to produce the same amount of power due to its lower calorific value. Tests showed the first two shipments had calorific values of 5,600–5,800 kcal/kg, below the required minimum of 5,900 kcal/kg, said.

Jagoda accused the government of tailoring procurement rules to benefit an Indian supplier, citing a drastic reduction in reserve requirements—from one million metric tonnes in 2021 to just 100,000 tonnes in 2025—and alleged previous irregularities by the company, including a 2016 Auditor General finding regarding a rice supply contract and the 2019 suspension of a key agent of the company by the International Cricket Council over match-fixing.

He further criticised systemic manipulation of the coal tender process, including delays in issuing the tender from the usual February-March window to July, and progressively shortening the submission period from six weeks to three, giving an advantage to suppliers with stock on hand.

The Ministry of Energy recently issued an amended tender for 4.5 million metric tonnes of coal for the 2025/26 and 2026/27 periods, following the cancellation of an earlier tender. Jagoda warned that procurement delays and irregularities could trigger coal shortages, higher spot-market purchases, increased electricity costs, and potential power cuts if hydropower falls short.

Jagoda called for urgent investigations into the procurement process, insisting that any mismanagement or corruption should not be passed on to the public.Denying any wrongdoing, the government has said it is waiting for the lab report.

by Saman Indrajith ✍️

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Greenland dispute has compelled Europe to acknowledge US terrorising world with tariffs – CPSL

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Dr Weerasinghe

The Communist Party of Sri Lanka yesterday (18) alleged that the US was terrorising countries with unfair tariffs to compel them to align with its bigot policies.

CPSL General Secretary Dr. G. Weerasinghe said so responding to The Island query regarding European countries being threatened with fresh tariffs over their opposition to proposed US take-over of autonomous Danish territory Greenland.

US President Donald Trump has declared a 10% tariff on goods from Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands and Finland with effect from 1 February but could later rise to 25% – and would last until a deal was reached. Targeted countries have condemned the US move.

Dr. Weerasinghe pointed out that none of the above-mentioned countries found fault with the US imposing taxes on countries doing trade with Russia and Iran. Now that they, too, had been targeted with similar US tactics, the CP official said, underscoring the pivotal importance of the world taking a stand against Trump’s behaviour.

Referring to the coverage of the Greenland developments, Dr. Weerasinghe said that news agencies quoted UK Prime Minister Keir Starmer as having said that the move was “completely wrong”, while French President Emmanuel Macron called it “unacceptable.

Dr. Weerasinghe said that Sri Lanka, still struggling to cope up with the post-Aragalaya economic crisis was also the target of discriminating US tariff policy. The top CPSL spokesman said that the recent US declaration of an immediate 25% increase in tariff on imports from countries doing business with Iran revealed the prejudiced nature of the US strategy. “Iran is one of our trading partners as well as the US. Threat of US tariffs on smaller countries is nothing but terrorism,” Dr. Weerasinghe said, stressing the urgent need for the issue at hand to be taken up at the UN.

Responding to another query, Dr. Weerasinghe cited the US targeting India over the latter’s trade with Russia as a case in point. He was commenting on the recent reports on India’s Reliance Industries and state-owned refiners sharply cutting crude oil imports from Russia. The CPSL official said that the EU wouldn’t have even bothered to examine the legitimacy of US tariff action if they hadn’t been targeted by the same action.

Perhaps, those who now complain of US threats over the dispute regarding Greenland’s future owed the world an explanation, Dr. Weerasinghe said. The reportage of the abduction of Venezuela’s President and the first lady underscored that the US intervened because it couldn’t bear the Maduro administration doing trade with China and other countries considered hostile to them, Dr. Weerasinghe said.

The CPSL official said that the NPP couldn’t turn a blind eye to what was happening. Just praising the US wouldn’t do Sri Lanka any good, he said, adding that the Greenland development underscored that the US under Trump was not concerned about the well-being of any other country but pursued an utterly one-sided strategy.

The US dealings with the NPP government, particularly the defence MoU should be examined taking into consideration US tariffs imposed on Sri Lanka at the onset of the second Trump administration and ongoing talks with the US, Dr. Weerasinghe.

By Shamindra Ferdinando ✍️

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MPs’ Pension Repeal Bill challenged in Supreme Court

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 Two petitions have been filed before the Supreme Court challenging the constitutionality of the proposed Parliamentary Pensions (Repeal) Bill, which seeks to scrap pensions for legislators.

The Bill, presented to Parliament on 7 January by the Minister of Justice and National Integration, has drawn strong opposition from retired parliamentarians who argue that it undermines the rights of former lawmakers and their dependents.

One petition has been filed by former MPs M. M. Premasiri, Nawarathne Banda, Nishantha Deepal Gunasekara, and Saman Siri Herath, who served in Parliament from 2004 to 2010. The other petition is by former MPs Piyasoma Upali (1988–2004) and Upali Sarath Danstan Amarasiri (1988–2000).

The petitioners argue that former MPs, many of whom dedicated decades of service to the nation, often sacrificed careers and business prospects for public duty. They contend that retired MPs and some widows rely solely on their pensions, which range between Rs. 60,000 and Rs. 80,000, amounts they say are insufficient to cover basic living and medical expenses.

The petitions seek a declaration that the Bill requires approval by the people through a referendum and a two-thirds majority in Parliament, citing constitutional safeguards.

The petitions were filed through Attorney-at-Law Sanath Wijewardane and are to be supported by Dr. Wijeyadasa Rajapakshe PC.

 By AJA Abeynayake ✍️

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