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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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Fast Attack Craft P 4447 recovered in successful salvage operation

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The Sri Lanka Navy successfully recovered its Fast Attack Craft P 4447 following a successful salvage operation, bringing a multi-stage emergency response to a close.

The craft, which ran into distress during a routine patrol on 15th August 2026 off Angulana, was brought to the surface on 11th September, from a depth of approximately 80 feet. It was
subsequently towed to the Colombo Dockyard premises.
The initial phase of the operation immediately following the incident focused on search and rescue. A joint effort involving the Navy, Air Force, Police, and local fishermen from Angulana
resulted in the rescue of 11 crew members. The search and rescue phase drew to a close with the recovery of the remains of the Second in Command of the craft, on 4th September.

Following the search and rescue phase, specialized Navy diving and salvage teams launched a dedicated recovery phase against rough sea conditions and underwater challenges, adhering to
strict safety protocols. The Navy’s marine, hull, electrical, and electronic engineering teams utilized specialized technical know-how and equipment to raise the vessel in stages.

Thus, the salvage operation marked an outstanding achievement attained through the professionalism, technical expertise of Navy divers, and coordinated contribution of all
engineering and technical branches of the Sri Lanka Navy. Technical support and specialized expertise were also extended by the Sri Lanka Ports Authority and Colombo Dockyard PLC.

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CIABOC member’s appointment: Controversy over Speaker under probe heading selection process

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By Shamindra Ferdinando

The Opposition should intensity its focus on the forthcoming selection of a member of the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) and remain vigilant as Speaker Dr. Jagath Wickremaratne, MP, the head of the Constitutional Council (CC) tasked with making the relevant recommendation, is under investigation by the CIABOC, sources familiar with the ongoing inquiry told The Island.

Chethiya Goonasekara, PC, is expected to complete his three-year term on Dec 31, 2026. Sources pointed out that CIABOC Commissioners are appointed by the President on the recommendation made by the 10-member Constitutional Council.

The CIABOC initiated the investigation following a complaint lodged by suspended Chief of Staff and Deputy Secretary General of Parliament Chaminda Kularatne in early February this year. Sources said that as Goonasekera is scheduled to complete his term toward the end of 2026, the CC would have to call applications soon to choose the successor.

Goonasekara received his appointment from President Ranil Wickremesinghe in January 2024. A Justice W. M. N. P. Iddawala was appointed Chairman of the CIABOC. The other commissioner is K. Bernard Rajapakse.

Asked whether Iddawala and Rajapakse, too, would complete their terms soon, sources said that in terms of the Anti-Corruption Act No 09 of 2023, the Chairman of CIABOC would hold office for a period of five years, second commissioner (K. Bernard Rajapakse) for four years and the third commissioner (Chethiya Goonasekara) for a period of three years.

Sources said that the Opposition as well as civil society representatives in the CC should take up the issue of Speaker facing an investigation by the CIABOC taking part in the forthcoming selection process. Responding to queries, sources emphasized that the issue was whether in terms of Section 107 of the Anti-Corruption Act the participation of the Speaker in the selection process amounted to a violation of the Act itself.

The current members of the CC are Dr Jagath Wickramaratne, Speaker and Chairman of the Constitutional Council, Dr. Harini Amarasuriya, Prime Minister, Sajith Premadasa, Leader of the Opposition, Bimal Rathnayake, MP, Aboobucker Athambawa, MP, Ajith P. Perera, MP, Sivagnanam Shritharan, MP, Austin Fernando, Civil society representative, Prof. Wasantha Seneviratne, Civil society representative and Ranjith Ariyaratne, Civil society representative.

Sources pointed out that in spite of the sensitivity of the case, the CIABOC recorded Kularatne’s statement in the second week of August, six months after he lodged the complaint.

The CIABOC on 3, 8 and 10 Sept recorded the statements from the Transport Officer, Deputy Director, Administration and Assistant Director, Finance regarding the use of facilities by the Speaker, those assigned to his staff and other relevant matters.

The NPP named Dr. Wickramaratne as the Speaker after Asoka Ranwala resigned over controversy regarding his higher education qualifications.

SJB lawmaker Dayasiri Jayaskera has repeatedly raised the issues concerning the Speaker with the focus also on the Speaker using two government-managed residences, relevant staff in addition to expenditure on food, transport and fuel provided to the Speaker’s private secretary.

Political sources said that trouble erupted after the Parliamentary Staff Advisory Council in late January sacked Kularatne accusing him of providing false information to secure his appointment. Before being appointed as the Deputy Secretary-General of Parliament in 2023, Kularatne held several high-ranking positions, including Secretary to the Chief Government Whip, Additional Secretary to the President, Additional Secretary to the Prime Minister, and Additional Secretary to the Leader of the Opposition.

The SJB declared in Parliament that Ranwala should be brought back as the Speaker as they have no faith in Wickramaratne. MP Mujibur Rahuman jokingly told parliament that the Opposition wouldn’t raise Ranwala’s educational qualifications.

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GMOA: Countrywide cadre revision not done since 2015

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Dhammika

The Government Medical Officers’ Association (GMOA) has stressed the need to conduct a comprehensive countrywide cadre revision urgently.

GMOA spokesman Dr. Lasitha Dhammika told The Island that the failure on the part of successive governments to conduct cadre revision caused the deterioration of the public sector health services. Due to the absence of required statistics, they hadn’t been able to fully comprehend the situation on the ground and to ascertain the requirements of the public.

Dr. Dhammika pointed out the expansion of the services without supporting statistics and the need to initiate an immediate cadre revision. According to him, the GMOA had raised this issue with successive governments without success. The GMOA spokesman said that they also sought relevant information from the Health Ministry in terms of the Right to Information (RTI) Act two weeks ago but was yet to receive response.

(SF)

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