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Harsha to move Privilege Committee against Finance Ministry officials’ attempt to cover up sugar tax scam
By Saman Indrajith
Chairman of Parliamentary Committee on Public Finance, Dr. Harsha de Silva, yesterday told Parliament that he plans to move the Privilege Committee against Finance Ministry officials’ attempt to cover up the sugar tax scam.
Dr. de Silva, referring to Monday’s The Island page one lead story, titled ‘Sugar tax scam takes shocking turn: Parliament directive to recover Rs 16 bn disregarded’, said that when Associate Editor of The Island Shamindra Ferdinando made inquiries under the Right to Information Act from the Finance Ministry of the losses incurred by the sugar tax scam, Finance Ministry’s Department of Trade and Investment Policy had stated that there was no such loss.
Holding the Monday’s edition of The Island in his hands, the MP said: “Entire nation knows that there was a sugar tax scam resulting in over Rs 16 billion losses to the government because of changing the taxes to benefit the scammers. The Auditor General had reported this scam to Parliament. It was investigated by the CID and the Bribery Commission. The matter was debated in Parliament committees, including the COPF. It was debated in this House. State Finance Minister Ranjith Siyambalapitiya, too, has spoken in this House for the need of finding a mechanism to recover the losses. Despite all these, the information officer of the Finance Ministry’s Department of Trade and Investment Policy, by the name of D.M.A. Dassnayake says that there were no losses resulting from change of taxes. Who is this information officer? On what grounds he could state that there were no losses. Does it mean that the Treasury need not recover these monies from those responsible for this scam?”
Dr De Silva said that the sugar tax scam had been a reverting topic in the COPF chaired by him and the COPF has strived relentlessly to recover the loss owing to this scam. “This official stance by the Finance Ministry’s Department of Trade and Investment Policy amounts to breach of privileges of many in this House including the COPF. As such I refer this matter to the COPF today, and with the approval of its members I take this to the Parliament’s privilege committee,” Dr. de Silva said.
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Chemmani mass graves: Govt to seek international forensic help
ECONOMYNEXT –International assistance for forensic analysis of the remains unearthed at the Chemmani mass grave will be sought when the need arises, Sri Lanka’s Minister of has Justice said after opposition legislators urged the government to seek help.
“We have spoken to embassies, we have made all the local finances necessary for excavation. But when it comes to DNA analysis, depending on the type and nature we will definitely have to go for internationally recognised places,” Harshana Nanayakkara said in response to a query in Parliament.
Nanayakkara said that request for international expertise is dependant on the direction the courts give on what needs to be done, after which they will decide which agency best suits the proceedings.
The minister also recognised that local expertise is lacking in the forensic department, and the need to train local staff with the help of international experts.
Opposition MPs argued that the present need is direct help in forensics from international entities, rather than the longer term need to train the staff on analysis.
Currently, the investigation is in the excavation and exhumation stage, conducted by archaeologist Raj Somadeva and his team.
The existence of the Chemmani mass grave was first brought to light in 1998, during the trial of the rape and murder of schoolgirl Krishanti Kumaraswamy.
In February 2025, construction workers found remains near the Sinthupathy Cemetery, and following investigations ordered by the Learned Magistrate, the mass grave was discovered.
412 bodies have been discovered, with 409 bodies recovered as of 23 June 2026. According to the Office on Missing Persons, this is the 17th recorded mass grave in Sri Lanka.
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ADB approves $57.4 million package to boost Lanka’s rooftop solar drive
The Asian Development Bank (ADB) has approved a $57.4 million financing package to help Sri Lanka expand access to affordable clean energy and reduce greenhouse gas emissions through a large-scale rooftop solar aggregation and virtual net metering programme.
The financing comprises a $35 million concessional loan, $16.9 million in grants from the European Union and $5.5 million from the Japan Fund for the Joint Crediting Mechanism. With additional contributions from implementing agencies, the total estimated cost of the project is $80.5 million.
Under the Rooftop Solar Aggregation and Virtual Net Metering Project, two state-owned utilities — Electricity Distribution Lanka (Private) Limited and Lanka Electricity Company (Private) Limited — will introduce a scalable model to collect electricity generated from large rooftop solar installations and allocate the benefits virtually among eligible consumers.
The initiative will allow consumers to access solar power benefits without having to install individual rooftop solar systems.
ADB Country Director for Sri Lanka Shannon Cowlin said the project would broaden access to affordable renewable energy while strengthening the resilience and inclusiveness of the country’s power sector.
She said the initiative would also support grid modernisation and digital transformation, while creating employment opportunities and encouraging greater participation of women and youth in the clean energy sector.
The project is expected to benefit micro, small and medium enterprises and community organisations that face financial or space constraints in installing their own rooftop solar systems. Through a social compensation mechanism, eligible groups will receive reductions in electricity costs under the virtual net metering system.
The programme will support around 25 megawatt-peak of rooftop solar capacity while strengthening distribution networks, improving digital capabilities and preparing the national grid to accommodate higher levels of distributed renewable energy.
A dedicated training facility will also be established under the project to develop green skills, enhance women’s participation in the sector and build technical expertise in advanced low-carbon technologies.
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Bond scam case against Mahendran, Ravi K fixed for July 22
The Colombo High Court on Friday ordered that proceedings in the case filed against 11 defendants, including former Central Bank Governor Arjuna Mahendran and former Finance Minister Ravi Karunanayake, over alleged irregularities in the Central Bank bond auction be taken up again on July 22.
The case was called before Colombo High Court Judge Manjula Thilakaratne, who informed court that the Trial-at-Bar bench appointed to hear the matter had not been properly constituted.
Accordingly, the judge directed that the case be recalled on July 22 for further proceedings.
The Attorney General has filed indictments under the Public Property Act against 11 accused, including Mahendran, Karunanayake, Perpetual Treasuries Limited and its directors Arjun Aloysius and Geoffrey Aloysius.
The accused have been charged over alleged irregularities connected to a Treasury bond auction conducted by the Central Bank in March 2016.
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