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Opposition questions delay in probing 2020 sugar scam

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Public Security Minister Ananda Wijepala told Parliament yesterday that the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) has commenced an investigation into the 2020 sugar scam.

He said the probe had been initially handled by the CID, which sought the Attorney General’s instructions on further proceedings. Acting on those instructions, the CID referred the matter to CIABOC for further investigation. The findings so far have been handed over to CIABOC, and the Commission was now conducting inquiries, the Minister said.

Wijepala was responding to a question raised by Badulla District SJB MP Chaminda Wijesiri, who asked what action the incumbent government had taken to identify those responsible for the sugar scam.

“There were files of documents in the possession of Minister Wasantha Samarasinghe on this scam, and your party pledged to take action against those responsible. What action has been taken so far,” Wijesiri asked.

Deputy Minister of Economic Development, UDN Jayaweera, said the government at the time had reduced the Special Commodity Levy on sugar to 25 cents per kilogram by Gazette Extraordinary No. 2197/12 dated October 13, 2020. The reduction came into effect on October 14, 2020.

He said the decision was taken in line with instructions issued by the then Secretary to the President, conveyed in a letter dated October 13, 2020, to the Secretary to the Ministry of Finance to reduce taxes on four commodities — sugar, lentils, canned fish and big onions — with a view to easing the cost of living.

Asked to name the companies that had imported sugar after the tax reduction, the Deputy Minister said the importers included Pyramid Wilmar Company, Peliyagoda Trading Company, AMRO Sugar, Global Trading Company, Vincent Trading Company, RG Brothers, Woodland and Company, Cargills Food Company, and VD Holdings and Commodities.

Jayaweera said that, according to an Auditor General’s report dated March 23, 2022, a total of 336,949 metric tonnes of sugar had been imported between October 14, 2020 and February 28, 2021 under the reduced tax regime. Of this, 277,715 metric tonnes were white sugar and 59,234 metric tonnes were brown sugar. The revenue loss to the Government due to the tax reduction was estimated at Rs. 16.76 billion.

Following an inquiry, the Committee on Public Finance on June 21, 2022 instructed the Chief Accounting Officer of the Ministry of Finance to conduct a probe into the scam with the assistance of the CID. Accordingly, the Finance Ministry lodged a complaint with the CID through the IGP on July 12, 2022.

The CID on January 2, 2025 sought the assistance of the Auditor General to carry out a forensic audit into the matter. The Auditor General, in a communication dated March 7, 2025, informed the CID that it had no legal provision to record statements from certain stakeholders and advised that such statements should be recorded by the CID. Meanwhile, the Inland Revenue Department has been directed to assess the profits earned by the importers and recover losses from them, the Deputy Minister said.

Minister Wijepala added that the CID had subsequently sought further instructions from the Attorney General, following which the matter was referred to CIABOC, which is now conducting the investigation.

By Saman Indrajith



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CEB engineers raise alarm over power sector stability

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A senior electrical engineers attached to the Ceylon Electricity Board (CEB) have warned that unresolved structural and policy issues within the power sector could threaten the long-term stability of the national grid, urging authorities to act swiftly to address mounting technical and administrative concerns.

Speaking on condition of anonymity, they said the electricity network was operating under increasing strain due to delayed infrastructure upgrades, financial constraints, and growing demand.

“The national grid is not something that can be managed casually. It requires systematic planning, preventive maintenance, and timely investment. If these are compromised, the risk to system stability increases,” the engineers said.

They noted that several transmission and substation modernisation projects were behind schedule, while ageing thermal plants continued to shoulder a significant portion of the country’s base load demand.

“Engineers are committed to ensuring an uninterrupted supply. But professional expertise must be respected in decision-making. Technical matters cannot be subjected to short-term political considerations,” the engineers added.

Meanwhile, the powerful Ceylon Electricity Board Engineers’ Union (CEBEU) echoed similar concerns, warning that failure to address long standing professional and structural issues could have serious consequences for the power sector.

In a statement, the CEBEU has said that engineers have repeatedly called for reforms that safeguard the integrity of the utility and ensure that operational decisions remain grounded in technical evaluation.

“The electricity sector is a critical national asset. Any attempt to weaken institutional safeguards or bypass professional consultation will directly impact service reliability and long-term sustainability,” the union said.

The CEBEU has stressed the importance of transparent engagement between policymakers and technical personnel, noting that morale among engineers could be affected if their concerns continue to go unheard.

Industry analysts point out that the power sector plays a central role in Sri Lanka’s economic recovery efforts, particularly as the country seeks to expand industrial activity and attract investment. Stability in electricity supply remains a key determinant of business confidence.

The senior engineer stressed d that the objective of raising concerns is not confrontation but preservation of the grid’s integrity.

“Our responsibility is to the public. Electricity powers hospitals, industries, and homes. Safeguarding the system is a national duty,” he said.

With tensions simmering within the sector, stakeholders say meaningful dialogue between authorities, engineers, and trade unions will be crucial in ensuring that Sri Lanka’s power infrastructure remains resilient in the face of growing challenges.

By Ifham Nizam

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CB identifies 24 pyramid scams in Sri Lanka

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The Central Bank (CBSL) yesterday announced that investigations had identified 24 companies and applications operating prohibited pyramid schemes.

In a public notice issued under Section 83C of the Banking Act, No. 30 of 1988 (as amended), the CBSL said the following entities had been “ascertained and determined as prohibited schemes”: Tiens Lanka Health Care (Pvt) Ltd, Best Life International (Pvt) Ltd, Mark–Wo International (Pvt) Ltd, V M L International (Pvt) Ltd, Global Lifestyle Lanka (Pvt) Ltd, Fast3Cycle International (Pvt) Ltd, Sport Chain App / Sport Chain ZS Society Sri Lanka, OnmaxDT, MTFE App / MTFE SL Group / MTFE Success Lanka / MTFE DSCC Group, Fastwin (Pvt) Ltd, Fruugo Online App / Fruugo Online (Pvt) Ltd, Ride to Three Freedom (Pvt) Ltd, Qnet / Questnet, Era Miracle (Pvt) Ltd and Genesis Business School, Ledger Block, Isimaga International (Pvt) Ltd, Beecoin App and Sunbird Foundation, Windex Trading, The Enrich Life (Pvt) Ltd, Smart Win Entrepreneur (Pvt) Ltd, Net Fore International (Pvt) Ltd / Netrrix, Pro Care (Pvt) Ltd and Shade of Procare (Pvt) Ltd, SGO / sgomine.com and I.C.A.N Advertising (Pvt) Ltd and its affiliates icanonlineadvertising.com, bannercuts.com, bannercuts.lk, bannercuts.net and bannercuts.org

The CBSL said pyramid schemes, also referred to as multi-level marketing or direct selling schemes in certain instances, operate as recruitment-based programmes in which members enlist others into an expanding “downline” structure resembling a chain letter.

Under such arrangements, a portion of the fees paid by new recruits is channelled upwards to earlier participants, known as the “upline”, who are fewer in number.

The Central Bank warned that such schemes are inherently unsustainable, with the vast majority of participants at the lower tiers eventually losing their investments, while only a small number of early entrants are able to recover or profit from the funds contributed by subsequent recruits. It noted that when a pyramid scheme collapses, up to 99 per cent of those in the lower levels risk losing their money.

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Church urges patience, warns against interference with Easter attacks probe

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Director of Communications for the Archdiocese of Colombo, Rev. Fr. Cyril Gamini Fernando, yesterday expressed confidence that ongoing investigations into the 2019 Easter Sunday terror attacks would yield meaningful results and urged the public and all stakeholders to exercise patience and allow the probe to proceed independently.

Addressing a media briefing in Colombo yesterday, Fr. Fernando called on all parties to refrain from interfering with the investigations, warning that any attempt to obstruct the process would amount to a grave injustice to the victims.

He said he believed there was credible evidence to warrant the arrest of military intelligence veteran Maj. Gen. (Retd.) Suresh Sallay.

Referring to the coordinated bombings on April 21, 2019, which targeted churches and hotels and claimed nearly 300 lives, Fr. Fernando described the attacks as a “barbaric” act and a “massacre” that killed worshippers attending Easter services as well as individuals from different religious and ethnic communities.

By Norman Palihawadane

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