News
Massive revenue losses blamed on Parliament
Customs, Motor Traffic faulted, Rs 3 bn scam revealed
By Shamindra Ferdinando
The first report of the Committee on Public Accounts (COPA) for the first session of the 9th Parliament has revealed that the Treasury lost billions of rupees annually due to the failure on the part of Parliament to update laws against corruption and irregularities involving state institutions and the private sector.
The COPA has named the Sri Lanka Customs and the Department of Motor Traffic as two key institutions responsible for the pathetic situation.
The Customs and Motor Traffic Departments come under the purview of the Finance and Transport Ministries. Parliament is in charge of overall finances.
COPA Chairman Prof. Tissa Vitharana, National List member of the ruling Sri Lanka Podujana Peramuna (SLPP) on Tuesday (20) presented the report to the parliament.
COPA consists of Udaya Gammanpila, Duminda Dissanayake, Dayasiri Jayasekara, Lasantha Alagiyawanna, (Dr) (Mrs) Sudarshini Fernandopulle, Shehan Semasinghe, Prasanna Ranaweera, Tissa Attanayake, (Prof) Tissa Vitharana, Harin Fernando, Niroshan Perera, Faizal Cassim, Ashok Abeysinghe, Buddhika Pathirana, K. Kader Masthan, Sivagnanam Shritharan, (Dr.) Upul Galappaththi, B. Y. G. Rathnasekara, Weerasumana Weerasinghe, (Prof.) Ranjith Bandara, Mohomad Muzammil, and Dr. (Mrs.) Harini Amarasuriya.
The COPA has dealt with how successive governments conveniently had turned a blind eye to organized scams that deprived the Treasury much needed revenue especially at a time the cash-strapped government was struggling to cope up with deteriorating economic situation.
The LSSP veteran told parliament that those who could pay taxes took advantage of loopholes in the law and existing systems to deprive the Treasury of huge amounts of money.
The one-time minister pointed out how those enterprises which could pay taxes without difficulty exploited an opportunity to appeal thrice and then move court against the Inland Revenue to delay payment of taxes, further.
Recommending that the number of appeals should be reduced to one, Prof. Vitharana questioned the rationale in allowing various enterprises to evade paying taxes by exploiting the existing procedures.
Interestingly, COPA presented its report ahead of the vote of no-confidence motion against Energy Minister Udaya Gammanpila over the increase in fuel prices– a development the lawmaker blamed on extremely difficult economic situation.
Prof. Vitharana said that COPA made recommendations meant to recover taxes due to the Treasury and streamline the process. The report revealed massive scams over a period of time in the absence of scrutiny at any level. It reiterated that the Customs and the Department of Motor Traffic caused colossal losses and were the worst culprits.
COPA revealed that the Treasury had been denied a staggering Rs 3 bn in taxes in the import of Toyota Hilux Smart Cabs as a result of the Customs fraudulently releasing 3,000 vehicles under a different category. Each vehicle had been taxed Rs 1 mn less than it should have been, COPA pointed out adding that in another instance 44 vehicles imported under the category of special purpose vehicles had been subsequently registered as dual purpose vehicles resulting in a further loss of Rs 1.3 bn. According to the report the import of 44 vehicles had taken place during 2010-2019 period.
Department of Communications, Parliament yesterday (21) briefed the media of the salient points in the COPA report.
COPA also dealt with how the Customs caused a loss of Rs. 6.1 bn to the Treasury during 2013-2016 in imports made by two leading palm oil companies.
Former Minister and one-time Chairman of COPE (Committee on Public Enterprises) Dew Gunasekera told The Island that the government should make a genuine effort to streamline the revenue collection process by taking tangible measures to curb corruption and irregularities in the overall process.
The veteran Communist said that the country’s economy was in such a mess and turmoil the government couldn’t afford to turn a blind eye to waste, corruption, irregularities as well as negligence that caused debilitating losses to the national economy. If those lawmakers realized the gravity of the situation they wouldn’t have caused an uproar when Energy Minister Udaya Gammanpila announced the fuel price hike on June 12, Gunasekera said.
Gammanpila’s statement as well as President Gotabaya Rajapaksa’s address to the nation in which he acknowledged the daunting task in meeting annual loan repayments amounting to USD 4 bn, reflected the ground situation.
News
CIABOC probe: CC under pressure to ask Speaker to step down as Chairman
Dayasiri questions legitimacy of appointments made by Council
The Constitutional Council (CC) should ask its head, Speaker Dr. Jagath Wickramaratne, to step down temporarily pending an investigation by the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) into a complaint lodged by sacked Deputy Secretary General of Parliament Chaminda Kularatne, SJB MP Dayasiri Jayasekera has said.
Former Minister Jayasekera said so in response to The Island queries pertaining to Kularatne’s recent complaint to the CIABOC.
Jayasekera pointed out that the CC, which is responsible for key appointments, couldn’t afford to have a person under CIABOC investigation as its head. “We have never experienced a similar situation since the establishment of the CC in 2000,” the Kurunegala District lawmaker said.
Parliament introduced CC under the 17th Amendment to the Constitution. It was abolished in 2010, reinstated in 2015 through the 19th Amendment, then replaced by a Parliamentary Council in 2020, and reintroduced via the 21st Amendment in October 2022.
MP Jayasekera said that the NPP government had turned a blind eye to his recent request made in Parliament for the Speaker to step down. He said that subsequently he had discussed the issue with other MPs and they were of the view that Dr. Wickramaratne’s continuation as the Chairman of the CC undermined the integrity of the council.
A parliamentary committee headed by Dr. Wickramaratne sacked Kularatne on January 23 over alleged irregularities pertaining to his appointment as Deputy Secretary General of Parliament and Chief of Staff. Kularatne lodged the complaint with the CIABOC on 2 February.
Austin Fernando, Professor Wasantha Seneviratne and Ranjith Ariyaratne were appointed as non-Members of Parliament to the CC on 23 January, the day Parliament sacked Kularatne.
MP Jayasekera said that the CC should discuss the issue with the Speaker. Political parties represented in parliament should intervene to ensure that the controversy over the Speaker’s conduct didn’t undermine the apex body.
The CC consists of Prime Minister Dr. Harini Amarasuriya (Ex-officio), Speaker Dr. Jagath Wickramaratne (Ex-officio), Leader of the Opposition Sajith Premadasa (Ex-officio), one MP appointed by the President (Bimal Rathnayake), five persons appointed by the President, upon being nominated as follows: one MP nominated by agreement of the majority of the Members of Parliament representing the Government (Aboobucker Athambawa, M.P), one MP nominated by agreement of the majority of the MPs of the political party or independent group to which the Leader of the Opposition belongs—Ajith P. Perera—and three persons nominated by the Speaker by agreement of the Prime Minister and the Leader of the Opposition—Austin Fernando, Professor Wasantha Seneviratne and Ranjith Ariyaratne—and one MP nominated by agreement of the MPs other than those representing the Government and those belonging to the political party or independent group to which the Leader of the Opposition belongs, and appointed by the President (Sivagnanam Shritharan, M.P).
The CC recommend nominations to the President for the appointment of Chairpersons and Members of Election Commission, Public Service Commission, National Police Commission, Audit Service Commission, Human Rights Commission of Sri Lanka, Commission to Investigate Allegations of Bribery or Corruption, Finance Commission, Delimitation Commission and National Procurement Commission.
Jayasekera asked how Dr. Wickramaratne could continue as CC head as appointments to CIABOC, too, are made by the 10-member body.
The CC also approve/disapprove recommendations by the President for the appointment Chief Justice and the Judges of the Supreme Court, President and the Judges of the Court of Appeal, Members of the Judicial Service Commission, other than the Chairman, Attorney-General, Governor of the Central Bank of Sri Lanka, Auditor-General, Inspector-General of Police, Parliamentary Commissioner for Administration (Ombudsman) and Secretary General of Parliament.
MP Jayasekera said that it would be really interesting to see the response of the newly appointed civil society members to the developing situation. The SJBer pointed out that the recent appointment of Samudika Jayaratne, a Senior Deputy Auditor General as the Auditor General was made after Kularatne moved the CIABOC against the Speaker.
The JVP and NPP, having preached other political parties of transparency, couldn’t pretend the Speaker’s issue was not serious. Dr. Wickramaratne was appointed Speaker in Dec 2024 after Asoka Ranwala had to step down after being exposed for making false higher education qualifications.
by Shamindra Ferdinando
News
Auditor General urged to probe coal scam
The Electricity Consumers’ Association (ECA) Friday (6) called on newly appointed Auditor General Samudika Jayarathne to begin her tenure by launching an investigation into the controversial coal procurement deal, which has drawn widespread public criticism.
Addressing a media briefing in Marandagahamula, Gampaha, ECA Secretary, Sanjeewa Dhammika, said the probe should be conducted independently. The appointment of a new Auditor General, following a vacancy of nearly six to seven months, was a crucial step in restoring the effectiveness of the state audit system, he said, extending congratulations to Jayarathne.
Dhammika urged the Auditor General to carry out a swift, independent investigation into the questionable coal procurement deals, alleging that they had caused significant economic and environmental harm to the country.
He called for the findings of such an investigation to be disclosed to the public as a priority.
He also called for an immediate audit of Lanka Transformer Ltd, which has faced severe criticism from the Committee on Public Enterprises (COPE). Dhammika said the audit should reveal details of alleged irregularities, identify those responsible, and disclose any misuse of public funds.
Noting that the government held a substantial share in Lanka Transformer Ltd, he stressed that the matter constituted a direct responsibility of the State.
“The audit system should not function to provide political protection, but to safeguard public funds,” Dhammika said, adding that the Association expected the new Auditor General to uphold this principle.
By Anuradha Hiripitiyage
News
First-ever monkey holding centre to be set up in Matale
A 150-hectare site near the Kalu Ganga Reservoir in Matale District has been earmarked for Sri Lanka’s first-ever holding centre for Toque Macaques, the Department of Wildlife Conservation (DWC) announced.
The centre will feature water, food, and security facilities, providing a safe environment to manage macaques that cause damage in nearby communities. The Matale District Development Committee has approved the project, following a recommendation from the DWC.
Wildlife Range Officer Chamath Lakshman Perera told the Committee that similar holding centres operate in several countries, including Malaysia. A total of Rs. 283.87 million has been allocated for the project.
Under the plan, macaques causing destruction will be captured and relocated to the centre. Population control measures will include fitting loops on female monkeys to prevent breeding. The facility will be secured to ensure the animals cannot escape back into the wild.
Officials said the site has sufficient natural food sources, but additional supplies will be provided if necessary. Each macaque is expected to require around 70 grams of food per day.
The project aims to balance wildlife conservation with community protection, offering a model for managing human-macaque conflicts in the country, Perera said.
by Nimal Gunathilake
-
Features2 days agoMy experience in turning around the Merchant Bank of Sri Lanka (MBSL) – Episode 3
-
Business3 days agoZone24x7 enters 2026 with strong momentum, reinforcing its role as an enterprise AI and automation partner
-
Business7 days agoSLIM-Kantar People’s Awards 2026 to recognise Sri Lanka’s most trusted brands and personalities
-
Business2 days agoRemotely conducted Business Forum in Paris attracts reputed French companies
-
Business2 days agoFour runs, a thousand dreams: How a small-town school bowled its way into the record books
-
Business2 days agoComBank and Hayleys Mobility redefine sustainable mobility with flexible leasing solutions
-
Business7 days agoAPI-first card issuing and processing platform for Pan Asia Bank
-
Business3 days agoHNB recognized among Top 10 Best Employers of 2025 at the EFC National Best Employer Awards
