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

Published

5 years ago

2021/03/4

Sahan Weerasooriya

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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Landslide Early Warnings issued to the districts of Kalutara, Nuwara Eliya and Ratnapura

Published

8 hours ago

2026/06/13

Priyan

The Landslide Early Warning Centre of the National Building Research Organisation (NBRO) has issued early warnings to the Districts of Kalutara, Nuwara Eliya and Ratnapura from 1600hrs on 13th June 2026 till 1600hrs on 14th June 2026.

Accordingly,

LEVEL I (YELLOW) landslide early warnings have been issued to the Divisional Secretaries Divisions and surounding areas of Palindanuwara and Agalawatta in the Kalutara district, Ambagamuwa in the Nuwara Eliya and Ayagama, Pelmadulla,
Godakawela, Elapatha, Kalawana, Ratnapura and Nivithigala in the Ratnapura district.

News

INS Sharda departs Colombo concluding replenishment visit

Published

8 hours ago

2026/06/13

Priyan

The Indian Naval Ship (INS) ‘Sharda’ departed the island today (13 Jun 26), concluding her replenishment purposes.

On departure the vessel was accorded a traditional naval farewell by the Sri Lanka Navy at the Port of Colombo.

The visit also paved the way for vibrant personnel interactions, fostering camaraderie and goodwill. The crew of INS Sharda and personnel from the Sri Lanka Navy participated in a
friendly volleyball match and a joint yoga session. A

dditionally, Sri Lanka Navy personnel had the opportunity to visit the Indian naval vessel, while the visiting crew took time to explore several culturally significant landmarks across the island.

Latest News

Special Dengue Prevention Week declared in Colombo District from June 15 to 21

Published

20 hours ago

2026/06/13

Priyan

A decision has been taken to declare a Special Dengue Prevention Week from 15 to 21 of June by the Colombo District Dengue Control Committee to curb the spread of the disease in the Colombo District.

This decision was taken at the meeting of the Colombo District Dengue Control Committee held on Friday (12) at the Colombo District Secretariat under the patronage of Prime Minister Dr. Harini Amarasuriya.

Compared to last year, the number of dengue cases reported this year has increased significantly. According to the National Dengue Control Unit, approximately 39,100 dengue cases have been reported island wide to date, of which 25.8% have been recorded in the Colombo District. Following this situation, the Colombo District has been identified as a high-risk district.

Health authorities informed that the increasing spread of the disease has been influenced not only by the nature of circulating virus but also to the lack of sufficient immunity among the population. They further noted that the recent period of heavy rainfall has aggravated the spread of Dengue.

It was also identified that the current outbreak is being reported more frequently from public places such as government institutions, private establishments, schools, and religious venues rather than from residential premises. Observations have identified improperly managed solid waste and drainage systems in offices and other public locations as major breeding grounds for mosquitoes.

Accordingly, during the Dengue Prevention Week from 15 to 21 June, a series of measures will be implemented, including, organising community clean-up campaigns in government and private institutions, schools, residential areas, and other public spaces; Conducting inspections of high-risk premises by Divisional Secretariats and taking legal action, where necessary, followed by awareness programmes; Distributing informational leaflets, displaying banners, and carrying out public awareness campaigns through the media. Health authorities also requested school administrations not to involve students below Grade 10 in school cleaning programmes and to immediately notify the relevant Medical Officer of Health (MOH) office if a student is diagnosed with dengue.

The programme is expected to receive the active support and participation of the district’s political leadership, religious leaders of all faiths, public officials, local government institutions, the tri-forces, the police, and the general public.

The event was attended by the Chairperson of the District Coordination Committee, Members of Parliament, representatives of local government authorities, government secretaries, police officers, and officials representing the education and health sectors, among others.

[Prime Minister’s Media Division]