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Govt. MP slams Finance Ministry over gaping holes in tax collection system

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‘New taxes won’t help as long as system remains the same’

By Shamindra Ferdinando

SLPP MP Mahindananda Aluthgamage yesterday (30) said that in spite of him repeatedly raising the urgent need to regulate chartered accountants, as part of the overall measures to increase state revenue, nothing was being done.The former minister alleged that the Finance Ministry was turning a blind eye to a well-organized racket that deprived the cash-strapped government much needed revenue.

Lawmaker Aluthgamage said so in response to The Island queries. Demanding an explanation from the Finance Ministry, regarding its failure to regulate chartered accountants, regardless of evidence of unscrupulous activities by some of them, like certifying doctored accounts, the Kandy District MP said that the government wanted to streamline the revenue collection process.

The government wouldn’t be able to benefit from new and increased taxes as long as the revenue collection system remained in the hands of corrupt elements, the Minister said. The former minister asked whether the continuing failure to recover well over Rs 700 bn, in unpaid taxes, accumulated interest et al, could be justified under any circumstances.

The former minister said the Finance Ministry was yet to respond to accusations he made in Parliament, on Sept. 20, about large-scale tax evasion and the role played by some chartered accountants/tax consultants in the racket.It was common knowledge that when a tax return was submitted, through a firm of chartered accountants, the Inland Revenue officers hardly asked any questions, MP Aluthgamage said.

Aluthgamage added that he expected the Finance Ministry and other relevant institutions to get in touch with him. “However, they hadn’t contacted me, though the Finance Ministry, on Sept. 26, assured that the Parliament would be briefed on the developments and action taken, as regards the accusations, within a month,” the MP said.

The MP said that he wouldn’t withdraw the accusations he made in Parliament, on Sept. 20, under any circumstances. The Finance Ministry should either prove me wrong or take remedial measures as soon as possible, the MP said, urging the powers that be to address the issues at hand, or face the consequences.

Referring to what he called two glaring cases of tax evasion, involving prominent businessmen, MP Aluthgamage said that the Finance Ministry should go the whole hog. The situation was so bad the government couldn’t ignore the urgent need for overall reforming of the tax collecting structure, the ex-minister said. Reiterating the pivotal importance in regulating chartered accountants, lawmaker Aluthgamage revealed an instance of Rs 35 bn was shown as Rs 5 bn.

President Ranil Wickremesinghe holds the finance portfolios whereas Ranjith Siyambalapitiya and Shehan Semasinghe serve as State Finance Ministers. SLFPer Siyambalapitiya is responsible for revenue collection.

State Minister Siyambalapitiya, on Sept. 26, requested a comprehensive report from the Customs, Inland Revenue Department and Excise Department as regards the issues raised by MP Aluthgamage, in terms of Standing Orders (27) 2. Requesting them to submit their report, within two weeks, MP Siyambalapitiya assured that the Parliament would be briefed, within a month. Instructions were issued at a meeting chaired by State Minister Siyambalapitiya, at the Finance Ministry. Among those present were Inland Revenue chief D.R.S. Hapuaarachchi, Director General, Customs, P.B.S.C. Nonis and Commissioner General, Excise, M.J. Gunasiri.

Referring to the staff-level agreement Sri Lanka reached with the International Monetary Fund (IMF), MP Aluthgamage said that the government was taking measures to enhance revenue. The Parliament endorsed ‘Social Security Contribution Levy’, on Sept. 08, with 91 members voting for and 10 against, the former minister said, adding that it was meant to annually collect Rs 140 bn. “Taxes are necessary. All of us understand the difficulties experienced by vast majority of people, struggling to make ends meet. Indirect taxes are imposed on them, whereas those who should pay taxes, continue to evade the taxman,” MP Aluthgamage said.

MP Aluthgamage said that the current tax appeal system should be examined as interested parties continued to exploit the loopholes for their advantage. The former minister said that the reports released by parliamentary watchdog committees, COPE (Committee on Public Enterprises), COPA (Committee on Public Accounts) and COPF (Committee on Public Finance), since the last general election, revealed how the government deprived itself of the revenue by allowing interested parties to exploit the tax collection system.



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Sri Lanka Customs exceeds revenue targets to enters 2026 with a surplus of Rs. 300 billion – Director General

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The year 2025 has been recorded as the highest revenue-earning year in the history of Sri Lanka Customs, stated Director General of Sri Lanka Customs, Mr. S.P. Arukgoda, noting that the Department had surpassed its expected revenue target of Rs. 2,115 billion, enabling it to enter 2026 with an additional surplus of approximately Rs. 300 billion.

The Director General made these remarks at a discussion held on Tuesday  (30)  morning at the Sri Lanka Customs Auditorium, chaired by President Anura Kumara Dissanayake.

The President visited the Sri Lanka Customs Department this to review the performance achieved in 2025 and to scrutinize the new plans proposed for 2026. During the visit, the President engaged in extensive discussions with the Director General, Directors and senior officials of the Department.

Commending the vital role played by Sri Lanka Customs in generating much-needed state revenue and contributing to economic and social stability, the President expressed his appreciation to the entire Customs employees for their commitment and service.

Emphasizing that Sri Lanka Customs is one of the country’s key revenue-generating institutions, the President highlighted the importance of maintaining operations in an efficient, transparent and accountable manner. The President also called upon all officers to work collectively, with renewed plans and strategies, to lead the country towards economic success in 2026.

The President further stressed that the economic collapse in 2022 was largely due to the government’s inability at the time to generate sufficient rupee revenue and secure adequate foreign exchange. He pointed out that the government has successfully restored economic stability by achieving revenue targets, a capability that has also been vital in addressing recent disaster situations.

A comprehensive discussion was also held on the overall performance and progress of Sri Lanka Customs in 2025, as well as the new strategic plans for 2026, with several new ideas and proposals being presented.

Sri Lanka Customs currently operates under four main pillars, revenue collection, trade facilitation, social protection and institutional development. The President inquired into the progress achieved under each of these areas.

It was revealed that the Internal Affairs Unit, established to prevent corruption and promote an ethical institutional culture, is functioning effectively.

The President also sought updates on measures taken to address long-standing allegations related to congestion, delays and corruption in Customs operations, as well as on plans to modernize cargo inspection systems.

The discussion further covered Sri Lanka Customs’ digitalization programme planned for 2026, along with issues related to recruitment, promotions, training and salaries and allowances of the staff.

Highlighting the strategic importance of airports in preventing attempts to create instability within the country, the President underscored the necessity for Sri Lanka Customs to operate with a comprehensive awareness of its duty to uphold the stability of the State, while also being ready to face upcoming challenges.

The discussion was attended by Minister of Labour and Deputy Minister of Finance and Planning, Dr. Anil Jayanta Fernando, Deputy Minister of Economic Development, Nishantha Jayaweera, Secretary to the President, Dr. Nandika Sanath Kumanayake, Deputy Secretary to the Treasury, A.N.Hapugala, Director General of Sri Lanka Customs,  S.P.Arukgoda, members of the Board of Directors and senior officials of the Department.

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Educators slam govt. for ‘unprepared’ education reforms

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Teachers, principals and education professionals have said the government is unprepared to roll out proposed education reforms scheduled to take effect from next week, and warned of nationwide trade union action if the plans are implemented without adequate consultation and preparation.

Addressing a press conference in Colombo, President of the Association of Education Professionals, Ven. Ulapane Sumangala Thera, said Ministry officials had indicated that the reforms would be implemented from Monday, 05 January, but claimed that the vast majority of educators were opposed to the move.

“More than 90 percent of teachers say they have not received proper training on the new syllabus or the proposed reforms,” Ven. Sumangala Thera said. He alleged that the government was attempting to suppress opposition from teachers and principals by declaring school holidays, instead of addressing their concerns.

“If the government continues with these tactics, we will have no option but to resort to trade union action at a national level,” he warned.

Meanwhile, representatives of 16 teachers’ and principals’ unions who visited the Ministry of Education at Isurupaya on Monday to seek clarification on the reforms were turned away by security officials, reportedly on the grounds that prior appointments were required.

Speaking to the media outside the Ministry, Amila Sandaruwan of the Teacher Principals’ Collective said the delegation had attempted to raise their concerns during the Public Day allocated for visitors. “We wanted to know how these reforms are to be implemented and sought to meet the Secretary to the Ministry of Education, but we were barred,” he said.

Sandaruwan accused the Government of proceeding in an “adamant” manner and claimed the reforms were being driven by a handful of non-governmental organisations closely associated with senior ministry officials. “We will not allow this to happen,” he said.

Graded Principals’ Association representative Nimal Mudunkotuwa said widespread confusion prevailed among teachers and school administrators regarding the practical aspects of implementing the reforms. “There is no clarity on school hours—whether schools are to close at 1.30 p.m. as before, or continue until 2.00 p.m. as proposed,” he said.

He added that uncertainty also remained over the number of daily teaching periods, with conflicting statements suggesting either seven or eight periods. “Schools have yet to receive syllabus modules from the Ministry, and many schools lack smart boards and internet connectivity required to implement these reforms,” Mudunkotuwa said.

Ven. Ulapane Sumangala Thera strongly criticised the proposed reforms, describing them as “bastard reforms,” and accused the NPP Government of undermining the education system. He also raised objections to a unit in the proposed Grade Six English syllabus dealing with gay and lesbian relationships, claiming that senior Buddhist prelates, the Catholic Cardinal and other religious leaders had opposed its inclusion.

“The Government refuses to listen even to religious leaders,” he said.

Concerns were also raised at a National Sangha Council meeting held in Colombo on Monday evening at the Colombo Foundation Institute, organised to discuss the objectives of the proposed reforms. Addressing the gathering, Professor Venerable Induragare Dhammaratana Thera said the reforms required extensive discussion, consultation with subject experts and consideration of the experience of senior administrators.

He warned that the proposed changes could trigger the biggest crisis currently facing the country. “Implementing these reforms in this manner will harm future generations and could even destroy the present Government,” he said, likening the process to “forcing a round peg into a square hole.”

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Leading the Nation’s Connectivity Recovery Amid Unprecedented Challenges

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SLT Mobitel teams at work after Cyclone Ditwah

SLT-MOBITEL’s post-Cyclone Ditwah response reinforces its role as the National ICT Solutions Provider

In the aftermath of Cyclone Ditwah, SLT-MOBITEL led one of the most extraordinary national connectivity restoration efforts in recent years, mobilising the full breadth of its operational network, technical expertise, and emergency response systems to safeguard Sri Lanka’s digital lifeline.

The cyclone caused extensive flooding, landslides, and infrastructure damage throughout several districts, disrupting multiple layers of the national network. Yet within days, SLT-MOBITEL mounted one of the fastest and most comprehensive recovery operations in the company’s history, reaffirming the organisation’s role as the country’s telecommunications backbone.

From the earliest hours of the disaster, SLT-MOBITEL activated a coordinated national response, drawing on its regional operational structure, specialised engineering teams, and emergency governance mechanisms. The Sri Lanka Backbone Network (SLBN), the country’s most critical digital artery, signalled excellent resilience, with only a handful of nodes affected and restored within 24 hours. As the National ICT Solutions Provider, SLT-MOBITEL prioritised restoring connectivity for other network operators and users, while simultaneously extending comprehensive support to its own customers, ensuring that mobile services were swiftly re-established across the country.

The rapid restoration of SLT-MOBITEL’s islandwide core network served as a critical catalyst in accelerating the recovery of both fixed and mobile services across nearly all disaster-affected areas. This swift action also enabled other operators affiliated with SLT-MOBITEL to speedily restore their services, reinforcing the continuity of nationwide connectivity. To drive this effort, SLT-MOBITEL established a centralised ‘War Room’, operating under close management oversight, to coordinate telecommunication network restoration and rehabilitation across the country. Initial assessments indicate recovery and network upgrade costs of approximately LKR 5 to 6 billion.

SLT-MOBITEL teams worked around the clock to repair damaged fibre routes, recover flooded cabinets, and restore thousands of access nodes affected by the cyclone. In areas where fibre infrastructure was severely damaged, the company deployed temporary Fixed Wireless Access (FWA) facilities, helping communities, emergency responders, and essential services stay connected. Priority restoration was extended to hospitals, government agencies, and enterprise customers, helping with the continuity of critical national operations during the emergency.

SLT-MOBITEL also launched the 247 National Medical Helpline, a dedicated, round-the-clock support service introduced in collaboration with the University of Colombo. Within the first week of the launch, the medical helpline received a large volume of calls as the initiative provided immediate initial medical guidance to individuals facing injuries, infections, waterborne diseases, and other health complications. The service was powered by SLT-MOBITEL’s national connectivity backbone and a team of medical professionals arranged by the University of Colombo. The helpline became a vital public service, demonstrating the company’s commitment to supporting Sri Lankans in crisis and recovery through resilient infrastructure and accessible, people-centred communication. More importantly, the service was made available to all network providers, guaranteeing no one was excluded from receiving medical assistance islandwide.

SLT-MOBITEL worked closely with the Ministry of Defence, serving as the connectivity solutions provider for national disaster response efforts. With the support of the Sri Lanka Army, field teams were able to swiftly access affected sites, enabling faster repairs, safer operations, and the restoration of services in some of the most challenging terrains. The partnership highlighted the critical role of telecommunications in national security, emergency coordination, and public safety, with the Army’s contributions acknowledged with gratitude.

In addition to network restoration, SLT-MOBITEL extended critical national-level support to various government institutes, sustaining essential public services during the disaster period. As a result of the services provided, SLT-MOBITEL secured uninterrupted operations and dependable connectivity for these vital national institutes.

Within one week of the cyclone, SLT-MOBITEL had successfully restored over 98 percent of the sites impacted by the cyclone, with only a small number of locations in the most severely affected districts, pending access clearance. The company continues to address individual customer connections and any remaining access nodes, despite significant human resource and environmental challenges. Throughout the recovery period, customers demonstrated commendable patience and understanding, which greatly supported the restoration efforts.

The disaster has also highlighted the urgent need for long-term national network resilience. SLT-MOBITEL is advocating for the accelerated undergrounding of high-risk fibre routes, prioritised access to bridge ducts, and fast-tracked power restoration protocols during emergencies. The company is also advancing the migration of copper-based access networks to fibre.

As Sri Lanka’s National ICT Solutions Provider, SLT-MOBITEL is committed to keeping the nation connected in every crisis. The rapid restoration efforts, cross-government support, and dedication to public service reiterates the company’s mission to rise above commercial operations, upholding the role as the country’s trusted digital lifeline.

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