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Finance Ministry allows liquor company to operate without paying taxes: Ways and Means Committee

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Ranawaka

By Shamindra Ferdinando

Chairman of the Committee on Ways and Means Patali Champika Ranawaka on Tuesday (12) alleged that the Finance Ministry had allowed the operation of a distillery in spite of that company failing to pay taxes.

The former minister said that the country lost millions for want of political will to recover what that company owed the Treasury.

Addressing the media at the Thalakotuwa office of Eksath Janaraja Peramuna, its leader Ranawaka questioned the failure on the part of the Finance Ministry to cancel the license issued to that company. In spite of specific instructions issued in that regard, the Finance Ministry and the Excise Department were yet to take expected action. Lawmaker Ranawaka estimated the weekly loss of revenue at approximately Rs 100 mn.

Pointing out that President Ranil Wickremesinghe held the finance portfolio, MP Ranawaka said that SLPPers Shehan Semasinghe and Ranjith Siyambalapitiya functioned as State Finance Ministers. They should pay immediate attention to the issue at hand, the former JHU stalwart said.

Responding to The Island queries, MP Ranawaka said that parliamentary committees that had been tasked with streamlining the operations didn’t receive the cooperation of relevant government institutions responsible for revenue collection.

The ex-minister also found fault with two major state banks for withholding data pertaining to non-performing loans. However, the National Savings Bank (NSB) has complied with the instructions issued by Parliament, MP Ranawaka said, drawing the attention of the Finance Ministry to the developing situation.

The bone of contention is whether certain influential persons undermined their efforts to streamline revenue collection at a time the people were up in arms over increasing of the Value-Added Tax (VAT) from 15% to 18% and imposing it on nearly 100 items that had been hitherto exempted from the same.

MP Ranawaka said that the IMF has told the Wickremesinghe-Rajapaksa government to achieve revenue targets that weren’t feasible at all. In comparison with 2022, the IMF wanted the government to increase revenue to 6.5% of the Gross Domestic Product (GDP) by 2025, the MP said, declaring that no country experiencing a severe difficult economic crisis could achieve such targets. According to him, the expected revenue was approximately Rs 2,000 bn whereas the government intended to collect an additional Rs 600 bn by way of VAT.

But certain companies and individuals had been allowed to operate outside the law and their sordid operations were being facilitated, the ex-minister said, pointing out the inordinate delay in amending what he called the tax appeal process. The Parliament as the institution accountable for public finance should be held responsible for this situation, MP Ranawaka said.

For want of a clear system in place, profit-making state enterprises refrained from paying relevant taxes to the Treasury. Referring to the latest available statistics, MP Ranawaka questioned why the CPC that had earned a profit of Rs 88 bn was yet to be taxed. The ex-minister said that though 52 state enterprises obtained a profit of Rs 303 bn they weren’t taxed.

The CEB made quite significant profits in November and this month but the government seemed not interested in taxing that institution, he said. The parliamentarian said that the possibility of some 100 rural hospitals facing closure for want of proper attention at every level should be examined against the backdrop of successive governments failing to streamline revenue collection.

Commenting on the sharp increase in the number of Sri Lankans migrating to Australia and other countries, particularly for education, the MP said that it was a very heavy burden on the economy.

Alleging that the government lacked a proper strategy to meet the daunting challenges, the former minister said that if 18% VAT was slapped on fuel with effect from January 01, 2024 a liter of petrol (92 Octane) would go up by Rs 38 and diesel by Rs 34.



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Gnanasara Thero absconding after SC ruling

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Ven. Galagoda Aththe Gnanasara Thero was not at his temple in Rajagiriya when prison officials visited the premises yesterday to take steps following the Supreme Court ruling that nullified the presidential pardon granted to him, police sources said.

Prison officials who visited the temple on Nawala Road, Rajagiriya, were reportedly informed by those present that the Thero’s whereabouts were unknown. The development comes a day after the Supreme Court declared former President Maithripala Sirisena’s 2019 pardon of Gnanasara Thero null and void.

The three-member Supreme Court bench comprising Justices Janak De Silva, Dr. Sobhitha Rajakaruna and Sampath B. Abayakoon held that the pardon was arbitrary, violated the public trust and principles of natural justice, and was made beyond the proper exercise of the President’s constitutional discretion.

The case arose from Gnanasara Thero’s conduct at the Homagama Magistrate’s Court in January 2016 during proceedings relating to the disappearance of journalist and political cartoonist Prageeth Eknaligoda.

The Court of Appeal convicted him on four counts of contempt of court in 2018 and imposed concurrent prison terms amounting to six years. He had served about nine months when Sirisena granted him a presidential pardon on May 23, 2019.

The Supreme Court found that although Article 34 empowers the President to grant pardons, that power is held in trust for the people and is subject to constitutional limitations and judicial review. The Court concluded that Sirisena had effectively acted on the recommendation of the Additional Secretary (Legal) without demonstrating that he had independently considered the relevant material.

Justice De Silva held that the pardon was “arbitrary”, violated public trust and the rules of natural justice, and was ultra vires the President’s powers. The Court consequently found that the decision violated the fundamental right to equality guaranteed by Article 12(1) of the Constitution.

The ruling effectively restores the legal position under the original conviction, leaving Gnanasara Thero without the benefit of the 2019 pardon. The Supreme Court also clarified that a pardon does not erase a conviction or sentence, but merely relieves an offender from serving the sentence to the extent specified in the pardon.

Gnanasara Thero, the General Secretary of the Bodu Bala Sena, had been convicted over his conduct during proceedings concerning the disappearance of Eknaligoda, who went missing in January 2010 and has not been located.

Sandhya Eknaligoda, Prageeth Eknaligoda’s wife, was among those who challenged the presidential pardon before the Supreme Court, alongside the Centre for Policy Alternatives and its Executive Director Dr. Paikiasothy Saravanamuttu.

The detailed account of the judgment indicates that the Court’s ruling primarily nullified the pardon and restored the legal effect of the original sentence, with the implementation of the sentence falling to the relevant authorities.

Police sources said that the Supreme Court, however, did not permanently close the door on executive clemency. It held that a future President could grant Gnanasara Thero another pardon, provided the power is exercised lawfully and after proper consideration of all relevant material.

The Supreme Court has so far overturned three presidential pardons granted to two former Presidents. In January 2024, the Court declared former President Gotabaya Rajapaksa’s pardon of former MP Duminda Silva unlawful and invalid. In June 2024, it invalidated two pardons granted by former President Maithripala Sirisena to Royal Park murder convict Jude Shramantha Anthony Jayamaha — the first in May 2016, which commuted his death sentence to life imprisonment, and the second in October 2019, which released him from prison. Jayamaha, who was convicted of the murder of 19-year-old Yvonne Johnson, remains at large. Most recently, on September 10, 2026, the Supreme Court declared Sirisena’s 2019 pardon of Ven. Galagoda Aththe Gnanasara Thero null and void, ruling that it was arbitrary and inconsistent with the Constitution.

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House to debate 22A, Judicature Bill next week

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Parliament is scheduled to debate the Twenty-Second Amendment to the Constitution Bill and the Judicature (Amendment) Bill on September 24 and 25, subject to the Speaker’s announcement following the delivery of the Supreme Court determination on petitions filed against the Bills.

The programme for the Parliamentary Week from September 22 to 25 was decided at a meeting of the Committee on Parliamentary Business held on Thursday (10) under the chairmanship of Speaker Dr. Jagath Wickramaratne.

On each sitting day, Parliamentary Business under Standing Orders 22(1) to 22(6) will be taken up from 9.30 am to 10 am, followed by Questions for Oral Answers from 10 am to 11 am Questions under Standing Order 27(2) will be taken up from 11 am to 11.30 am.

On Tuesday (22), the Orders published in Extraordinary Gazette No. 2497/37 under the Petroleum Resources Act and the Promotion of Export Agriculture (Amendment) Bill will be debated from 11.30 am to 5 pm.

The Tredso Development Foundation (Incorporation) Bill, a Private Member’s Bill, will then be taken up for Second Reading before being referred to the Legislative Standing Committee.

An Opposition motion at the Adjournment Time will follow.

On Wednesday (23), the Chartered Institute of Media Professionals of Sri Lanka Bill will be debated from 11.30 am to 5 pm, followed by Questions at the Adjournment Time.

The Second Reading debate on the 22nd Amendment Bill and the Judicature (Amendment) Bill is scheduled for 11.30 am to 7 pm on Thursday (24) and Friday (25).

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Wrong house targeted in underworld grenade attack: Two children killed

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Two children aged 11 and 17 were mistakenly killed and their 55-year-old father injured in an early morning hand grenade attack on Sirisangabo Mawatha on Friday. Police investigations later revealed that the attackers targeted the wrong house during an ongoing underworld clash.

Three police teams have been deployed to investigate the attack, which occurred at around 3 am.

According to police, a man who arrived near the house in a three-wheeler knocked on the front door before throwing a grenade into the premises and fleeing.

The victims were identified as 17-year-old Kasun Rashmika and 11-year-old Duminda Gihan. Their 56-year-old father, Nalin Thusantha Perera, was seriously injured and admitted to the Kalubowila Teaching Hospital.

Police said the injured man’s brother was allegedly a close associate of a drug trafficker known as ‘Sando’ and had also been accused of involvement in drug trafficking.

The brother lives in a house adjoining the one targeted in the attack, and police suspect the grenade may have been thrown at the wrong house.

Police are also investigating information that the attack was allegedly carried out at the direction of several overseas-based drug traffickers, identified as Pandithage Shantha Kumara alias ‘Kos Malli’, Samantha Perera alias ‘Chuwa Samantha’, ‘Kudu Avishka’ and ‘I.D.’

Police said the attack was believed to be linked to an ongoing conflict between two underworld factions, which have targeted each other’s associates in shootings and grenade attacks. More than 20 people have reportedly been killed in such attacks.

Security agencies are also investigating alleged links between one faction and overseas-based criminals including Kanjipani Imran, Unakuruwe Shantha, Dubai Gagana and Handaya.

Security agencies have also received information that overseas-based criminals identified as Kanjipani Imran, Unakuruwe Shantha, Dubai Gagana and Handaya are allegedly behind the supply of firearms and drugs to the faction associated with Kos Malli and Chuwa Samantha.

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