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Rs 16 bn revenue loss: CIABOC summons Bandula over sugar duty scam

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Dec.09 disclosure has implicated Prez, his advisors

By Shamindra Ferdinando

The Commission to Investigate Allegations of Bribery or Corruption (CIABOC) inquiring into massive revenue losses suffered in 2020/2021 owing to an alleged sugar tax scam has summoned the then Trade Minister Bandula Gunawardena for questioning.

The CIABOC intends to question incumbent Media and transport minister Gunawardena on Monday (19).

State Finance Minister Ranjith Siyambalapitiya on 09 Nov., informed Parliament that the Treasury had suffered losses amounting to Rs 16 bn due to the unprecedented reduction of duty on a kilo of white sugar from Rs 50 to 25 cents with effect from Oct 13, 2020. The SLFPer said that the Treasury could recover only 30 percent of Rs 16 bn loss.

Lawmaker Siyambalapitiya assured parliament that the government would ensure such unilateral decisions couldn’t be taken in the future.Authoritative sources told The Island that the then Presidential Secretary Dr. P.B. Jayasundera had been questioned in this regard. The one-time Secretary to the Treasury has told investigators the President cleared the reduction of duty on sugar.

Then Prime Minister Mahinda Rajapaksa served as the finance minister atthetime whereas Ajith Nivard Cabraal heldthestate finance portfolio. S. R. Attygalle served as the Secretary to the Treasury.The SLPP government increased theduty to Rs 50 in May 2020, a couple of months before the general election.

CIABOC would seek clarification from Minister Gunawardena as regards his disclosure in parliament on Dec 09 that those who spoke on behalf of sugar racketeers had the ear of the then President Gotabaya Rajapaksa.

Minister Gunawardena said that in spite of him being the trade minister, he was not consulted at all and his strong oppositionwasdisregarded by President Rajapaksa. Responding to SLFP General Secretary Dayasiri Jayasekera, MP, lawmaker Gunawardena claimed that inimical decisions were taken by ‘advisors’ at the expense of ministers who lacked authority.

CIABOC has so far recorded statements from over 30 persons in respect of the high profile investigation launched following complaints received fromSamagi Jana BalavegayaMPs, Field Marshal Sarath Fonseka and Mayantha Dissanayake and Attorney-at-Law Nagananda Kodituwakku.

The Islandlearns that the CIABOC isalsocontemplating toobtaina statement from former President Gotabaya Rajapaksa in this regard. Sources said that a clarification was required as some of those who had been questioned over the issuance of the relevant gazette by the Finance Ministry claimed they received instructions from the President.

Former Chairman of the Public Finance Commission Anura Priyadarshana Yapa is on record as having said that the reduction of duty on sugar didn’t benefit the consumers at all. Incumbent cabinet ministers Vidura Wickremanayake and Nalin Fernando before they received ministerial portfolios this year in their capacity as members of the Public Finance Commission have criticized the sugar tax scam.

Former Director (Administration) Parliament and civil society activist Lacille de Silva said that the CIABOC should go the whole hog. A proper inquiry could help identify those who had ruined the national economy and forced millions of families to experience untold hardships.

Referring to Section 2 of the Special Commodity Levy Act, No. 48 of 2007 imports could be exempted from duty/tax,De Silva explained that ministerial actions had to be justified regardless of the economic crisis the country was experiencing now,he said.



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Interpol crackdown: Sri Lankan man among seven arrested in UK for human smuggling

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Suspect also wanted for child abuse: Extradition process underway

Among seven persons arrested in the United Kingdom for people smuggling is a Sri Lankan wanted by French authorities for the rape of a child.

UK’s National Crime Agency said that it collaborated with police and international partners in INTERPOL’s largest-ever operation targeting people smuggling and human trafficking.

Operation Liberterra III was led by the NCA’s Joint International Crime Centre (JICC) and targeted offenders wanted for a range of crimes who had entered the UK illegally.

Officers from the National Extradition Unit at the JICC made five arrests across London, Bedfordshire, Merseyside and Greater Manchester.

Those arrested included:

A 30-year-old Sri Lankan man arrested in Liverpool and wanted in France for the rape of a child

A 38-year-old Iraqi man wanted for rape in Germany arrested in Greater Manchester

A 29-year-old Egyptian man wanted for murder in France arrested in Bedfordshire

A 41-year-old Syrian man arrested in Greater Manchester and wanted in Germany for organising illegal small boat crossings

A 30-year-old Bulgarian man arrested in London for human trafficking and wanted in France

Greater Manchester Police teams also made two arrests across the county during the operation which was held between 10 and 21 November last year.

A 23-year-old Ukrainian man wanted in Germany for sexual exploitation

A 31-year-old Romanian man wanted in Romania for sexual exploitation

Extradition proceedings are underway for all seven suspects.

The NCA website quoted its Deputy Director of International Rick Jones as having said: “This global operation is a prime example of our commitment to working closely and effectively with international partners to tackle people smuggling and human trafficking.

“We were proud to host the European Co-ordination Unit and used a range of our specialist capabilities to gather and disseminate intelligence to law enforcement agencies across the world, and to enable our officers to identify, locate and detain offenders wanted overseas.

“As a result, seven suspects wanted in connection to serious offences have been removed from our communities and extradition proceedings are ongoing to ensure they face justice.”

Globally, 3,744 suspects were arrested including 1,800 for human trafficking and migrant smuggling offences.

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Sri Lanka calls on global consular corps to protect nationals amid fishermen incident

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Foreign Minister Vijitha Herath accepts a token of appreciation

Addressing a gathering of the world’s consular community, Foreign Minister Vijitha Herath issued a pointed, diplomatic request yesterday for the enhanced protection of Sri Lankan citizens abroad, a message delivered against the backdrop of a recent alleged assault on Sri Lankan fishermen by the Indian Coast Guard.

The occasion was the inauguration of the FICAC 2026 South Asia Regional Conference, hosted by The Association of Consuls in Sri Lanka together with the World Federation of Consuls (FICAC) at Cinnamon Life.

Minister Herath, while outlining Sri Lanka’s foreign policy of “non-alignment, strategic autonomy, and constructive engagement,” directly tasked the honorary consul community with a critical role. “I request the honorary consul community to maintain a continued and enhanced focus on safeguarding the rights and welfare of Sri Lankan nationals in respective jurisdictions,” he stated.

The appeal carries significant weight following recent media reports which detailed claims by a group of fishermen from Wennappuwa that they were assaulted by uniformed Indian Coastal Guards. The incident, alleged to have occurred partly in Sri Lankan territorial waters, resulted in hospitalisations and has been referred to the Foreign Affairs Ministry and Navy for investigation. Minister Herath’s carefully calibrated statement before the international audience underscored the government’s proactive but diplomatic approach to citizen welfare overseas.

Prime Minister Harini Amarasuriya, who also addressed the inaugural session, framed Sri Lanka as a nation on a resurgent path. She thanked FICAC for selecting Sri Lanka, noting the choice reinforces the country’s returning credibility under President AKD’s administration.

“Fiscal management is in good control with contained inflation and increased reserve levels and global confidence is returning as the country is moving towards stability, expanded economic activity and inclusive growth,” the Prime Minister stated. She also acknowledged the severe challenge posed by climate change, citing Cyclone Ditwah, and thanked the international community for its support during the disaster, which helped quickly revive the tourism sector.

Both leaders positioned the consular network as indispensable partners in Sri Lanka’s recovery and global re-engagement. Minister Herath emphasised their role in bridging “governments, businesses and communities,” while the Prime Minister stated such forums help reconsolidate the support of global actors.”

The three-day FICAC conference brings together consular officials from across South Asia, focusing on their unique role in facilitating diplomacy, trade, and legal cooperation outside traditional embassy channels.

By Sanath Nanayakkare

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Korean boost for Thriposha programme: Partnership worth USD 10 mn

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The Korea International Cooperation Agency (KOICA) has reached agreement with Sri Lanka to strengthen the country’s Thriposha nutrition programme through climate-resilient, locally sourced food systems.

According to the Korean Embassy here the agreement formalised a USD 10 million partnership that would enhance domestic production of high-quality maize, reduce reliance on imports, and reinforce the sustainability of Sri Lanka’s flagship nutrition intervention for children and mothers. The agreement in this regard reflected the shared commitment of the Republic of Korea and Sri Lanka to advancing inclusive, resilient, and sustainable development outcomes, the Embassy stated.

The agreement was signed in the presence of the Ambassador of the Republic of Korea to Sri Lanka Ms. Miyon Lee, the Minister of Rural Development, Social Security and Community Empowerment Dr. Upali Pannilage, Country Representative, World Food Programme (WFP) Philip Ward, and senior representatives from the Ministry of Agriculture, Ministry of Health, Ministry of Trade, Sri Lanka Thriposha Limited, demonstrating the commitment by all relevant stakeholders of this unique project.

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