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Massive revenue loss: Eyebrows raised over delay in responding to House query

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SLPP members say sugar deal black mark on govt.

By Shamindra Ferdinando

Many an eyebrow has been raised over the delay on the part of the Finance Ministry to respond to a Finance Committee (FC) request for a comprehensive report on an alleged fraud in the controversial sugar tax revision.

Chairman of the Finance Commission Anura Priyadarshana Yapa on January 5 issued instructions to the Finance Ministry in this regard when the FC considered several special gazette notifications pertaining to the Ministry of Finance issued since October 2020.

According to the Communication Department of Parliament, MP Yapa on Feb 25 told the FC that the report called by him hadn’t been received yet. Yapa said so when State Minister Vidura Wickramanayaka and SLPP MP Nalin Fernando alleged the revision of taxes pertaining to the import of sugar hadn’t benefitted the consumers at all and only caused loss of revenue to the State. Severe criticism of the revision of sugar taxes was nothing but a black mark on the government.

Asked whether the report had been received since the issue at hand was taken up on Feb 25, the former Minister said that the FC answered in the negative.

Yapa told the last FC meeting that the Department of Import Control should be able to submit analytical comments with data on the relevant gazette amendments. Having approved the regulations issued on that day in respect of the issuance of licenses for the import of brown sugar, the FC recommended that a full explanation be given on March 09 with the participation of all relevant Ministries and Institutions.

Parliament is scheduled to meet on March 9.

Yapa is on record as having told the FC on January 5 though the tax on imported sugar was revised downwards to 25 cents from Rs. 50.00 per kilogram through the Gazette Notification No. 2197/12 issued by the Ministry of Finance on 13th October 2020, the move did not benefit the consumers at all.

JVP leader Anura Kumara Dissanayake lambasted the government over what he called a massive sugar scam that caused losses amounting to Rs 10 bn. In addition to the JVP, the SJB and UNP flayed the government over the corrupt deal. Dissanayake questioned the rationale in increasing the tax on sugar from Rs 33 to Rs 50 on May 23, 2020 and then bringing it down steeply to 25 cents on Oct 13, 2020. Dissanayake said that at that time the tax was brought down to 25 cents, there had been 90,000 metric tonnes of imported sugar in the country. Having reduced the sugar tax to 25 cents, the government directed that a kilo of sugar be sold at Rs 85, MP Dissanayake said.

The JVPer alleged that subsequently, when the government wanted to increase the sugar tax by Rs 40, Commerce Minister Bandula Gunawardena said that once imposed tax couldn’t be altered for a month, hence the decision to continue with 25 cents tax till Nov 13, 2020.

MP Dissanayake on Dec 12, 2020 named all those involved in the sugar scam.

Lawmaker Dissanayake said that the country suffered massive losses due to corrupt sugar deals. Those who suspended imports claiming the country faced severe foreign exchange crisis allowed massive corruption at the expense of the national economy.

Dissanayake said that last year alone at least 73,000 metric tonnes were imported at 25 cents tax.

He pointed out that the Treasury was responsible for facilitating sweet deals at the expense of the national economy. The revenue which should have been received by the government ended up with racketeers, Dissanayake lambasted the government for allowing its cronies to flourish.



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Heat Index at Caution Level in the Western, Sabaragamuwa, Southern, Eastern, North-western, Northern and North-central provinces and in Monaragala district

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Warm Weather Advisory
Issued by the Natural Hazards Early Warning Centre
Issued at 3.30 p.m. on 31 March 2026, valid for 01 April 2026.

The Heat index, the temperature felt on human body is likely to increase up to ‘Caution level’ at some places in the Western, Sabaragamuwa, Southern, Eastern, North-western, Northern and North-central provinces and in Monaragala district.

The Heat Index Forecast is calculated by using relative humidity and maximum temperature and this is the condition that is felt on your body. This is not the forecast of maximum temperature. It is generated by the Department of Meteorology for the next day period and prepared by using global numerical weather prediction model data.

Effect of the heat index on human body is mentioned in the above table and it is prepared on the advice of the Ministry of Health and Indigenous Medical Services.

ACTION REQUIRED
Job sites: Stay hydrated and takes breaks in the shade as often as possible.
Indoors: Check up on the elderly and the sick.
Vehicles: Never leave children unattended.
Outdoors: Limit strenuous outdoor activities, find shade and stay hydrated.
Dress: Wear lightweight and white or light-colored clothing.

Note:
In addition, please refer to advisories issued by the Disaster Preparedness & Response Division, Ministry of Health in this regard as well. For further clarifications please contact 011-7446491.

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Urea shortage threatens Yala harvest: Experts

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Prof. Marambe

Govt. rations stocks as imports falter

By Ifham Nizam

The government faces a looming fertiliser crisis ahead of the 2026 Yala season, with a sharp shortfall in urea threatening paddy yields and food security.

Experts have warned that the fertiliser shortage will take its toll on the yala harvest.

With just over 100,000 tonnes of fertiliser in stock by early March—barely enough for paddy cultivation alone—and more than half of expected imports either cancelled or delayed, the government has moved to ration supplies through Agrarian Service Centres, based on last year’s consumption.

Leading crop scientist Professor Buddhi Marambe has warned that while rationing is unavoidable, it will reduce productivity. “Even last season we applied below recommended levels. This year, the gap will be worse,” he said.

Authorities are prioritising paddy, followed by maize and tea, as limited stocks are stretched across crops.

However, experts estimate yields could fall by 15–20% if nutrient shortages persist—raising the risk of higher food prices in the months ahead.

The crisis has been worsened by global disruptions, including Gulf conflict affecting fertiliser shipments and precautionary export restrictions by key suppliers, such as China.

Although the Government is pursuing deals with countries like Russia, supplies remain uncertain.

With global urea prices surging and production costs rising, smallholder farmers are expected to be the hardest hit.

“This is a wake-up call,” Prof. Marambe said, urging urgent steps to build buffer stocks and strengthen Sri Lanka’s long-term food security strategy.

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2025 property grab: Court orders JVP to hand back Yakkala office to FSP

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FSP's Nuwan Bopage addressing the media

By Shamindra Ferdinando

Frontline Socialist Party (FSP) spokesman Pubudu Jayagoda says the Gampaha Magistrate’s Court order that the ruling JVP hand back the FSP’s Kirindiwela office, grabbed by a group of JVP politicians on 02 September, 2025, has shown that the government cannot undermine the law.

Jayagoda said that the FSP had been compelled to move the court against the JVP as the Gampaha police refused to intervene due to political pressure. “They probably thought we were going to give up that office. Perhaps, the ruling party felt they could forcibly occupy other FSP offices,” Jayagoda said.

FSP’s Administrative Secretary Chamira Koswatta and trade unions, which operated from the Salmal Garden office, sought the court intervention to confirm the ownership of that building in the FSP. The court initially transferred the building to the police and issued a directive to law enforcement authorities to remove the JVP/NPP from that building.

Among the 20 respondents was Tilvin Silva, General Secretary of the JVP. Those now identified themselves as FSP quit the JVP in 2011 and later formed their own party.

Gampaha Additional Magistrate Shilani Perera on Monday ruled that the legitimate owner was the FSP. The Magistrate ruled that the FSPers had been forced out of that office, illegally.

Jayagoda said that the FSP considered the court ruling a victory for democracy and a devastating blow to the increasingly authoritarian JVP/NPP rule.

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