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Govt. admits seized hoard of sugar part of stocks imported at nominal duty rate

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Hoarding drives prices above Rs. 210 a kilo

By Shamindra Ferdinando

State Minister of Co-operative Services, Marketing Development and Consumer Protection Lasantha Alagiyawanne yesterday (29) said that 5,400 metric tons of sugar imported at 25 cents duty a kilo had been detected in three separate warehouses.

The detections were made amidst a shortage of sugar in the market with the price of a kilo of sugar rising above Rs 200.

The Finance Ministry reduced the duty on a kilo of sugar from Rs 50 to 25 cents by issuing a gazette bearing 2197/12 on Oct 13, 2020.

MP Alagiyawanne said that identities of the importers were known.

In spite of strong criticism both in and outside parliament, the government declined to reverse its decision.

Chairman of the Committee on Public Finance (COPA) Anura Priyadarshana Yapa (SLPP Kurunegala District) on January 5, 2021 told the parliamentary watchdog committee that the consumers had not benefited from the sharp reduction of duty at all.

State Minister Alagiyawanne told The Island that the detection of hoarded sugar was made close on the heels of raids on 52 warehouses where the Consumer Affairs Authority detected about 100 metric tonnes of rice. Referring to large scale hoarding of sugar and rice, the SLFPer admitted that the country lacked laws to deal with such exploitation of the public.

Acknowledging that successive governments couldn’t absolve themselves of the responsibility for their failure to enhance required laws in that regard, Gampaha District MP Alagiyawanne said that the issue at hand would be discussed with the Attorney General’s Department. Dismissing the fines that could be prescribed for hoarding et al as nothing but a joke, the State Minister said that the maximum prison term too was six months imprisonment.

JVP leader Anura Kumara Dissanayake yesterday said that the sugar racket had been bared in parliament in December last year. The government did nothing as the reduction of duty was effected to help government cronies, MP Dissanayake charged.

Soon after the issuance of the gazette in Oct last year, 26,000 metric tonnes of sugar was brought in. That shipload had been followed by another 12,500 mt and 13,000 mt, the JVPer said, pointing out that the public were deceived by those who propagated the lie a kilo of sugar would be made available at Rs 85.

Dissanayake said that the government, particularly the Finance Ministry, owed an explanation regarding the issuance of the particular gazette. “Hoarding sugar is a serious matter. But, the real issue at hand is the massive loss suffered by the Treasury as a result of the Oct 2020 gazette. This loss is in addition to depriving the Treasury of over Rs 500 bn by doing away with a range of taxes immediately after the 2019 presidential election,” MP Dissanayake said.

The JVP Leader pointed out that several weeks ago three major importers were found to be hoarding fertiliser. The public would like to know whether any action was taken against them, he asked alleging that bigger the crime the perpetrators found it much easier to side step the law.



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Landslide Early Warnings issued to the Districts of Badulla, Kandy, Matale, Monaragala and Nuwara Eliya

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The Landslide Early Warning Center of the the National Building Research Organaisation [NBRO] has issued landslide early warnings to the districts of Badulla, Kandy, Matale, Monaragala and Nuwara Eliya for a period of 24 hours effective from 1200 noon today [07th January].

Accordingly,
LEVEL III RED landslide early warnings have been issued to the divisional secretaries divisions and surrounding areas of Udadumbara in the Kandy district, and Nildandahinna and Walapane in the Nuwara Eliya district.

LEVEL II AMBER landslide early warnings have been issued to the divisional secretaries divisions and surrounding areas of Kandaketiya in the Badulla district, Wilgamuwa in the Matale district, and Mathurata and Hanguranketha in the Nuwara Eliya district.

LEVEL I YELLOW landslide early warnings have been issued to the divisional secretaries divisions and surrounding areas of Meegahakiwula, Lunugala, Welimada, Passara, Badulla and Hali_Ela in the Badulla district, Doluwa in the Kandy district,Ambanganga Korale in the Matale district, and Bibile in the Monaragala district

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Prez seeks Harsha’s help to address CC’s concerns over appointment of AG

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Chairman of the Committee on Public Finance (CoPF), MP Dr. Harsha de Silva, told Parliament yesterday that President Anura Kumara Dissanayake had personally telephoned him in response to a letter highlighting the prolonged delay in appointing an Auditor General, a vacancy that has remained unfilled since 07 December.

Addressing the House, Dr. de Silva said the President had contacted him following the letter he sent, in his capacity as CoPF Chairman, regarding the urgent need to appoint the constitutionally mandated head of the National Audit Office. During the conversation, the President had sought his intervention to inform the Constitutional Council (CC) about approving the names already forwarded by the President for consideration.

Dr. de Silva said the President had inquired whether he could convey the matter to the Constitutional Council after their discussion. He stressed that both the President and the CC must act in cooperation and in strict accordance with the Constitution, warning that institutional deadlock should not undermine constitutional governance.

He also raised concerns over the Speaker’s decision to prevent the letter he sent to the President from being shared with members of the Constitutional Council, stating that this had been done without any valid basis. Dr. de Silva subsequently tabled the letter in Parliament.

Last week, Dr. de Silva formally urged President Dissanayake to immediately fill the Auditor General’s post, warning that the continued vacancy was disrupting key constitutional functions. In his letter, dated 22 December, he pointed out that the absence of an Auditor General undermines Articles 148 and 154 of the Constitution, which vest Parliament with control over public finance.

He said that the vacancy has severely hampered the work of oversight bodies such as the Committee on Public Accounts (COPA) and the Committee on Public Enterprises (COPE), particularly at a time when the country is grappling with a major flood disaster.

As Chair of the Committee responsible for overseeing the National Audit Office, Dr. de Silva stressed that a swift appointment was essential to safeguard transparency, accountability and financial oversight.

In a separate public statement, he warned that Sri Lanka was operating without its constitutionally mandated Chief Auditor at a critical juncture. In a six-point appeal to the President, Dr. de Silva emphasised that an Auditor General must be appointed urgently in the context of ongoing disaster response and reconstruction efforts.

“Given the large number of transactions taking place now with Cyclone Ditwah reconstruction and the yet-to-be-legally-established Rebuilding Sri Lanka Fund, an Auditor General must be appointed urgently,” he said in a post on X.

By Saman Indrajith

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Govt. exploring possibility of converting EPF benefits into private sector pensions

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The NPP government was exploring the feasibility of introducing a regular pension, or annuity scheme, for Employees’ Provident Fund (EPF) contributors, Deputy Minister of Labour Mahinda Jayasinghe told Parliament yesterday.

Responding to a question raised by NPP Kalutara District MP Oshani Umanga in the House, Jayasinghe said the government was examining whether EPF benefits, which are currently paid as a lump sum at retirement, could instead be converted into a system that provides regular payments throughout a retiree’s lifetime.

“We are looking at whether it is possible to provide a pension,” Jayasinghe said, stressing that there was no immediate plan to abolish the existing lump-sum payment. “But we are paying greater attention to whether a regular payment can be provided throughout their retired life.”

Jayasinghe noted that the EPF was established as a social security mechanism for private sector employees after retirement and warned that receiving the entire fund in a single installment could place retirees at financial risk, particularly as life expectancy increases.

He also cautioned that interim withdrawals from the EPF undermined its long-term sustainability. “Even the interim payments that are given from time to time undermine the ability to give security at the time of retirement,” he said, distinguishing the EPF from the Employees’ Trust Fund, which provides more frequent interim benefits.

Addressing concerns over early withdrawals, the Deputy Minister explained that contributors have been allowed to withdraw up to 30 percent of their EPF balance since 2015, with a further 20 percent permitted after 10 years, subject to specific conditions and documentary proof.

Of 744 applications received for such withdrawals, 702 had been approved, he said.

The proposed shift towards an annuity-based system comes amid broader concerns over Sri Lanka’s ageing population and pressures on retirement financing. While state sector employees receive pensions funded by taxpayers, including EPF contributors, the EPF itself has been facing growing strain as it is also used to finance budget deficits.

Jayasinghe said the government’s focus was to formulate a mechanism that would ensure long-term income security for private sector employees, placing them on a footing closer to a pension scheme rather than a one-time retirement payout.

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