News
Govt. can prove its sincerity by abolishing MPs’ duty free vehicle permits – Nagananda
Financial crisis
By Shamindra Ferdinando
Colombo District SLPP (Sri Lanka Podujana Peramuna) MP Madura Vithana yesterday (19) said that he wouldn’t take the duty free vehicle permit he was entitled to.
The former Kotte Mayor said that he had informed the relevant ministry of his decision. The newly elected member said so when The Island asked him whether he intended to honour his promise to President Gotabaya Rajapaksa not to utilise the permit. Vithana polled 70,205 preference votes in the Colombo district. The SLPPer admitted that it wouldn’t be fair on their part to receive such privilege as the country was struggling on the economic front.
Attorney-at-law Nagananda Kodituwakku asked whether members of parliament were entitled to such generous grants. Kodituwakku told The Island yesterday (19) that it would be a massive challenge for the new government to scrap the duty-free vehicle permit scheme.
The 9th parliament meets today (20) at 9.30 am.
Acknowledging that the SLPP’s 2019 presidential poll manifesto titled ‘Vistas for Prosperity and Splendour’ dealt with the issue, the public litigation activist pointed out that the economy was in such a perilous state that the government couldn’t under any circumstance provide duty free facility to members of parliament now.
In a section titled ‘An efficient governance mechanism,’ the SLPP assured in Oct 2019 in the run-up to the presidential poll that the procurement of vehicles for the public sector (including Ministers) and purchase of multi-faceted office facilities would be suspended for a period of 3 years. In addition, the renting of such facilities would also be stopped for a period of three years.
Kodituwakku pointed out that the assurance was given months before corona epidemic ruined the national economy. Responding to another query, Koditiwakku asked how the government could provide that having restricted imports due to deepening foreign reserve crisis
Having gradually increased the duty free facility, those who represented the last parliament received tax exemption as much as Rs 33 mn in the import of luxury vehicles and the privilege to sell it.
Kodituwakku said that members of all political parties sold the vehicles on the same day they were registered under their names.
The former Customs officer alleged that lawmakers deprived the country revenue to the tune of billions of rupees by selling their duty free vehicles to those who could afford to import expensive vehicles through proper channels. In terms of the relevant laws, duty free imports couldn’t be sold to another party unless the importer settled government dues, Kodituwakku said.
According to Kodituwakku, the Right to Information (RTI) Law enacted by the previous government gave him an opportunity to expose the massive scam perpetrated by members of parliament.
When the then Customs Chief declined to furnish the required information pertaining to the importation and the transferring of vehicles, Kodituwakkku moved the Supreme Court, successfully. “The Customs provided me everything I asked for after the Attorney General assured the Supreme Court information would be provided in terms of the RTI Law.”
Kodituwakku acknowledged that he hadn’t been successful in moving the Supreme Court against those who had sold their duty free vehicles contrary to the laws.
Top SLPP leadership would definitely come under pressure to issue duty free permits regardless of the much advertised promise to do away with duty free facility, Kodituwakku said.
The SLPP won 145 seats out of 225 in parliament whereas the breakaway UNP faction obtained 54 seats.
Kodituwakku said that the parliament was responsible for financial discipline and enactment of laws. Instead, the parliament as an institution allowed deterioration of financial discipline to such an extent the system was abused to reimburse expenses incurred by candidates regardless of the party they represented, the attorney-at-law said.
Part of the campaigning costs was covered by raising funds by selling the duty free vehicle, Kodituwakku said.
He said that the people would stop exercising their franchise if they really knew what was going on both in and out of parliament.
Kodituwakku questioned whether the top political leadership had the courage to abolish the duty free scheme or at least suspend it until the country recovered from the worst ever financial crisis faced in post-independence period. The interim government obtained USD 400 mn from India, then requested New Delhi to re-schedule Sri Lanka’s debt and sought an additional USD 1.1 bn loan facility, Kodituwakku pointed out. The parliament should set an example now as the country faced daunting challenge in reviving the economy.
Kodituwakku alleged that during the previous administration some of those National List members who had been appointed originally resigned to pave the way for newcomers to obtain the duty free facility. There were at least three such cases between 2015 and 2020, the outspoken lawyer pointed out, challenging the new parliament/govt to do away with such bad old practices.
News
Plans for 2026 on the journey towards a digital economy Under President’s review
A discussion to review the progress of projects implemented under the Ministry of Digital Economy in 2025 and to examine new projects planned to be implemented under the 2026 budgetary allocations was held on Monday (19) morning at the Presidential Secretariat under the patronage of the Minister of Digital Economy, President Anura Kumara Dissanayake.
Special attention was paid to the plans and progress of programmes to promote a cashless economy.
Accordingly, an extensive discussion was held on the progress of projects planned by the Government to promote a cashless economy in Sri Lanka, including the digitalisation of government institutions, promotion of QR transactions, establishment of a Cloud infrastructure centre, a national programme to provide high-speed broadband facilities, provision of single-window facilities, the digital identity card project and the project to digitalise payment of traffic spot fines.
Noting that much of the economic activity of rural communities remains in the informal sector, the President emphasised the need to formally document these activities and stressed that this is essential when formulating future economic and development plans.
The performance, progress and future plans of institutions under the Ministry of Digital Economy, including Sri Lanka CERT, the Data Protection Authority and the Telecommunications Regulatory Commission (TRC), were also reviewed.
The current status and new recruitments of the GovTech institution, established to implement the Government’s digitalisation programme, were also discussed.
Deputy Minister of Digital Economy, Eranga Weeraratne, Secretary to the President, Dr. Nandika Sanath Kumanayake, Senior Presidential Adviser on Digital Economy, Dr. Hans Wijayasuriya, Senior Additional Secretary to the President, Roshan Gamage, Secretary to the Ministry of Digital Economy, Varuna Sri Dhanapala, senior officials of the Ministry and heads of institutions under the Ministry also participated in the discussion.
News
Power sector reforms: CEB trade unions threaten strike
A simmering confrontation between the government and the powerful Ceylon Electricity Board (CEB) trade unions intensified yesterday, with the latter signalling continued industrial action, even as authorities moved decisively to prevent any disruption to electricity supply.
The dispute centres on the government’s determination to restructure and unbundle the CEB under amendments to the Electricity Act, a reform drive officials describe as unavoidable to curb losses, strengthen governance and stabilise the national power sector. This has also been a long-standing demand of international donors, particularly the International Monetary Fund and the World Bank.
Some 24 CEB unions, including powerful engineers’ and workers’ organisations, have rejected the move, warning that the proposed restructuring could weaken institutional coordination, undermine job security and eventually place additional pressure on consumers.
Union representatives said work-to-rule campaigns and other limited forms of industrial action would continue, despite electricity services being declared an essential service — a legal measure that effectively curtails full-scale strike action.
“These reforms are being imposed without proper consultation. Decisions taken in haste could have serious consequences for grid stability and public confidence,” a senior union official told The Island.
The government, however, has adopted a firm posture, cancelling all categories of leave for CEB staff and directing management to ensure uninterrupted operations across generation, transmission and distribution.
A senior official at the Power and Energy Ministry said the administration would not allow labour unrest to jeopardise electricity supply, stressing that energy security was central to economic recovery.
“Electricity is a critical public service. Any attempt to disrupt supply will be dealt with firmly,” the official said.
Engineers’ unions have separately cautioned that restructuring without a clearly articulated technical and regulatory framework could compromise long-term planning and system reliability, though they have stopped short of calling for an outright shutdown.
Despite ongoing discussions between union leaders, CEB management and government representatives, there is no indication of an early resolution, raising the prospect of a prolonged standoff at one of the country’s most strategically important state institutions.
The dispute unfolds amid Sri Lanka’s IMF-backed reform programme, under which state-owned enterprises — particularly in the energy sector — are under increasing pressure to reduce losses and ease the burden on public finances.
Analysts warn that sustained unrest at the CEB could complicate reform timelines and dent investor confidence, even as the government seeks to signal policy resolve.
A retired CEB top official said: “For now, while major strike action remains legally constrained, the confrontation has once again placed the power sector at the centre of national debate, with consumers and businesses watching closely for any fallout.”
By Ifham Nizam ✍️
News
Dumbara Prison being expanded to accommodate nearly 30,000
Of over 37,000 held in country’s prisons, nearly 27,000 are suspects
Dumbara Prison built to accommodate 699 persons is now being expanded to hold 2,900 persons. At the moment, Dumbara Prison holds 2,246 men and women – a staggering 1,547 individuals more than its maximum capacity. Of the 2,246 persons held there, 107 are females.
This was revealed when Justice and National Integration Minister Harshana Nanayakkara responded to a query posed by Samagi Jana Balawegaya (SJB) lawmaker Chamindrani Kiriella, in Parliament yesterday (20).
The Kandy district SJB MP raised a spate of questions regarding the current status of prisons with the focus on how the NPP government intended to address the growing congestion within prisons.
The Minister explained that a major building project was now underway to expand Dumbara Prison, situated at Pallekelle, to accommodate 2,500 men and 400 women.
According to Attorney-at-Law Nanayakkara, the proposed Dumbara Prison complex would include 102 housing units for prison personnel.
The Parliament was told that the entire project would cost the taxpayer a staggering Rs 4.3 bn and that Engineering Consultants (Pvt.) Limited (ECL) was responsible for planning and supervision.
The project was progressing and by January 4, 2026, a substantial part of the complex had been built and 2146 inmates already accommodated.
The Minister said that the facility was to accommodate those who were previously held at Nuwara and Bogambara Prisons.
Of some 37,761 held at various prisons, about 27,000 were suspects, the Parliament was told.
MP Kiriella urged Minister Nanayakkara to consider an arrangement, similar to that of South Africa where those languishing in prisons, due to the inability to pay fines, received the required financial assistance from a special fund created for that purpose.
While appreciating the SJB’ers proposal, Minister Nanayakkara said that during 2025, 17,000 persons hadn’t been remanded as part of the government response to overcome overcrowding in prisons. They were being held under supervision, the Minister said.
Minister Nanayakkara said that the primary reason for the congestion was the significant number of those remanded on narcotics-related charges. Of the over 37,000 held in prisons about 30,000 were those who had been arrested on narcotics-related offences, the Minister said. According to the Minister, delay on the part of the Government Analyst’s Department in furnishing relevant reports had created a crisis and action was being taken to recruit 82 persons to that Department. The idea was to establish a system to secure GA reports within three months, the Minister said.
By Shamindra Ferdinando ✍️
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