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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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Prison mayhem leaves at least 26 dead; five officers killed in revenge violence

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Police and STF personnel rushing an injured prison officer to an ambulance after yesterday’s clash at the Negombo Prison.

At least 26 people, including five prison officers and 20 inmates, have been confirmed dead following violent unrest at Negombo Prison, hospital sources said yesterday, as authorities struggled to restore full control over the facility.

According to unconfirmed reports the prison officers were killed by rioters yesterday morning,  in retaliation, and weapons carried by those officers were grabbed by them.

Negombo General Hospital Director Consultant Dr. Pushpa Gamlath said nearly 100 injured persons had been admitted, following the clashes, and eight of the critically wounded had been transferred to the National Hospital, in Colombo, for further treatment.

The violence, which initially broke out on Sunday (5) between remand prisoners and convicted inmates, left two inmates dead and 38 others injured before being temporarily brought under control.

However, tensions flared again on Monday (6), with prison officials reporting renewed unrest inside the facility despite earlier assurances that the situation had stabilised.

Police said the initial confrontation was triggered by a dispute linked to the exposure of an alleged drug trafficking network, operating within the prison, and was reportedly orchestrated by a drug trafficker, identified as Suresh, who is said to have links to an underworld figure known as ‘Booru Moona’.

The violence rapidly escalated, with female inmates staging a protest on the Prison roof in support of those involved in the clashes, while relatives gathered outside demanding information on detainees. Police later facilitated visits for selected family members to hospitalised inmates.

The Negombo Prison, which houses around 1,800 remand and convicted inmates, descended into widespread disorder as rival groups clashed, with reports indicating that the violence later spread beyond the initial confrontation.

Authorities said rioting inmates had allegedly seized firearms during the renewed unrest on Monday, prompting heightened security measures.

The Sri Lanka Air Force deployed drones for aerial surveillance and a Bell 412 helicopter to monitor the situation, while additional military personnel were sent to reinforce security around the prison.

Prisons Department spokesperson A.C. Gajanayake said a special investigation team had been appointed, under the direction of the Commissioner General of Prisons, to probe the incident, while a separate police investigation is also underway.

Justice Minister Harshana Nanayakkara told The Island that he had called for a detailed report on the disturbances.

By Norman Palihawadane

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Cleaner, cheaper electricity gathers momentum with rapid progress in 50 MW Mannar wind power project

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Sri Lanka’s drive towards cleaner and cheaper electricity gathered fresh momentum with the reported rapid progress in the 50 MW Mannar Wind Power Project, which is expected to produce the lowest-cost wind-generated electricity in the country’s history while saving billions of rupees in annual fuel imports.

The Ministry of Energy announced that the first wind turbine for the project had already arrived in the country, while the remaining turbine components have reached the Port of Trincomalee and are currently being unloaded, signalling a major milestone in the construction of one of the country’s key renewable energy ventures.

The project, inaugurated by President Anura Kumara Dissanayake, in January this year, is expected to become a cornerstone of the government’s strategy to transform Sri Lanka’s electricity sector by expanding renewable energy generation and reducing dependence on imported fossil fuels.

According to the Ministry, electricity generated by the Mannar wind farm will be purchased at USD 0.0465 (approximately Rs. 14.37) per unit, making it the lowest tariff ever secured for wind-generated electricity in Sri Lanka.

Energy experts say the competitive tariff demonstrates the growing economic viability of renewable energy and could help stabilise future electricity prices.

The Ministry also estimates that once the wind farm is connected to the national grid, Sri Lanka will save approximately Rs. 4.7 billion annually by reducing the import of fossil fuels required for thermal power generation, easing pressure on the country’s foreign exchange reserves.

The Mannar project is expected to support the government’s ambition of substantially increasing the contribution of renewable energy to the national electricity mix, by 2030, while helping Sri Lanka move towards its long-term goal of achieving net-zero carbon emissions by 2050.

Hayleys Fentons PLC, selected through an international competitive bidding process, is responsible for the installation and maintenance of the wind turbines.

The National System Operator (NSO), operating under the Ministry of Energy, will oversee the integration and management of electricity generated by the project within the national grid.

By Ifham Nizam

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Tech-enabled trafficking, fake foreign jobs pose growing threat, MPs told

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Opposition Leader Sajith Premadasa speaks to Public Security and Parliamentary Affairs Minister Ananda Wijepala during a special awareness programme on human trafficking held in the House recently

Human trafficking has become increasingly sophisticated, with deceptive overseas employment offers, fraudulent recruitment practices and technology-enabled recruitment emerging as major threats that require a coordinated national response, Members of Parliament were told at a special awareness programme held in the House recently.

Addressing the programme, Secretary to the Ministry of Defence and Chairman of the National Anti-Human Trafficking Task Force, retired Air Vice Marshal Sampath Thuyacontha, said trafficking in persons had evolved significantly over the years and was now closely linked to organised transnational criminal networks.

He warned that fake foreign employment opportunities, fraudulent recruitment agencies, online recruitment platforms, forced labour, sexual exploitation and, in some instances, the use of victims for forced criminal activities had become key challenges confronting authorities.

The awareness programme organised jointly by the National Anti-Human Trafficking Task Force of the Ministry of Defence and Parliament, was aimed at strengthening legislators’ understanding of emerging trafficking trends, the legal and policy framework governing the issue, and the role of Parliament in strengthening anti-trafficking legislation.

MPs were also briefed on the National Strategic Action Plan on Combating Human Trafficking (2026-2030), which focuses on preventing trafficking, identifying and protecting victims, strengthening the criminal justice response and improving coordination among State institutions.

Special emphasis was placed on the growing use of digital platforms for recruitment, deceptive migration practices, labour exploitation and the coercion of victims into criminal activities.

The programme featured presentations by Additional Solicitor General Haripriya Jayasundara, PC, and State Counsel Sajith Bandara of the Attorney General’s Department.

The event, held under the patronage of Deputy Chairperson of Committees Hemali Weerasekara, was attended by Opposition Leader Sajith Premadasa, Public Security and Parliamentary Affairs Minister Ananda Wijepala, Deputy Defence Minister retired Major General Aruna Jayasekara, Members of Parliament and senior officials of the Ministry of Defence, the National Anti-Human Trafficking Task Force and Parliament.

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