News
Rs. 16 bn sugar duty scam: Recovery of losses further delayed
MP says ex-Prez should be questioned over Minister’s disclosure
By Shamindra Ferdinando
State Finance Minister Ranjith Siyambalapitiya yesterday (02) said that the recovery of at least part of revenue losses caused by the alleged sugar tax scam, (2020), couldn’t be done in a hurry.
Siyambalapitiya said so when The Island asked the State Minister how soon the government could recover 30 percent of Rs 16 bn loss in revenue in terms of an assurance he gave Parliament less than a week before the presentation of Budget 2023.
State Minister Siyambalapitiya said the recovery process could take over a year, depending on accounting years of the relevant sugar importers. On Nov. 09, he told Parliament 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, from 13 Oct., 2020. He is on record as having said that the Treasury could recover only 30 percent of Rs 16 bn estimated loss.
Siyambalapitiya assured Parliament that the government would ensure such unilateral decisions couldn’t be taken in the future.
The then Prime Minister Mahinda Rajapaksa served as the Finance Minister whereas Ajith Nivard Cabraal held the State Finance portfolio. S. R. Attygalle served as the Secretary to the Treasury.
The SLPP government increased the duty on a kilo of white sugar to Rs 50 in May 2020, a couple of months before the general election, and it was brought down to 25 cents, a few weeks after the last general election.
Media and Transport Minister Bandula Gunawardena’s Office told The Island that the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) was yet to record a statement from the Minister as regards disclosure he made in Parliament on the sugar duty scam. Sources close to Bandula Gunawardena said that the former Trade Minister wanted to set the record straight. “The Minister couldn’t furnish a statement on Dec. 19, as sought by the CIABOC. However, CIABOC was told subsequently to record his statement,” sources said.
Addressing the Parliament, on Dec. 09, Minister Gunawardena said that in spite of him being the Trade Minister, he was not consulted at all and his strong opposition disregarded by President Rajapaksa when the Finance Ministry drastically reduced duty on imported sugar, without the benefit being passed onto the consumer.
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 from Samagi Jana Balavegaya MPs, Field Marshal Sarath Fonseka and Mayantha Dissanayake and public interest litigation Attorney-at-Law Nagananda Kodituwakku. Those questioned included former Presidential Secretary Dr. P.B, Jayasundera.
The Island
learns that the CIABOC contemplated seeking a 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 Committee on Public Finance, 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 Committee, have criticized the sugar tax scam.
MP Mayantha Dissanayake told The Island that Minister Gunawardena has pointed the finger at former President Gotabaya Rajapaksa. Declaring that the CIABOC couldn’t under any circumstances leave the ex-President out of the investigation, MP Dissanayake emphasized that Bandula Gunawardena, too, should be held accountable for loss in revenue. How the then Trade Minister could distance himself from the sugar scam by blaming it on the President and those near and dear to that President, MP Dissanayake asked.
Since Minister Gunawardena’s revelation, the former President has left the country.
Responding to another query, MP Dissanayake said that the CIABOC, too, owed the public an explanation regarding, what he called, the inordinate delay in probing this case. “On behalf of the SJB youth movement, I lodged a complaint on Feb 01, 2021, and subsequently made inquiries regarding the investigation. Minister Gunawardena’s disclosure has revealed the culprits,” MP Dissanayake said.
Latest News
Our focus is on economic stability through fiscal discipline, sustainable debt management, and reforms that enhance productivity and growth – PM
Prime Minister Dr. Harini Amarasuriya participated in the South Asia Regional Conference of the World Federation of Consuls (FICAC) 2026 held on 2nd of February at the Cinnamon Life, Colombo. The conference is hosted by the Association of Consuls in Sri Lanka and the World Federation of Consuls.
The conference held from 1st to 4th of February, brings together diplomats, business leaders, and policymakers to strengthen regional cooperation and explore new avenues for sustainable development across South Asia.
Addressing the event, the Prime Minister noted that selection of Sri Lanka as the venue for this conference holds particular significance at a time when the Government is working closely with international partners to position Sri Lanka as a credible and reliable region.
The Prime Minister also drew attention to Sri Lanka’s vulnerability against climate change, citing the recent impact of Cyclone Ditwah, and commended the support extended to Sri Lanka by the international partners. The Prime Minister emphasized that climate change requires global cooperation, shared responsibility, and innovative solutions.
She further highlighted ongoing efforts to improve public sector efficiency, transparency, and accountability, promote national unity and respect for diversity, and advance digital governance to enhance service delivery and public trust.
The Prime Minister stated,
“The Government of Sri Lanka is committed to addressing economic, social, and environmental challenges through a clear policy framework. Our focus is on economic stability through fiscal discipline, sustainable debt management, and reforms that enhance productivity and growth. At the same time, we are strengthening social welfare programs to support the most vulnerable”.
Addressing at the event, Minister of Foreign Affairs, Foreign Employment and Tourism MP Vijitha Herath also stated that, the government is committed to recognizing Sri Lanka as a sustainable tourism hotspot in the global platform while positioning Sri Lanka as a stable and reliable international partner.
The event was attended by the Deputy Minister of Foreign Affairs and Foreign Employment Arun Hemachandra, FICAC President Nikolaos K. Margaropoulos, President of the Association of Consuls in Sri Lanka Mahen Kariyawasam and Diplomatic corps.

(Prime minister’s media)
News
Development Officers threaten to intensify their protest
Protesting Development Officers continued their hunger strike near the Presidential Secretariat, Colombo yesterday (01), for the seventh consecutive day.The protesters, who are members of the Lanka School Development Officers’ Association, are demanding that they be absorbed into the teacher service as they have served as teachers in state-run schools for nearly seven years.
Secretary of the Association, Viraj Manaranga, said the protesters were seeking an urgent meeting with the President. He added that a presidential aide had visited the protest site and offered to arrange for a meeting with the President on 03 Feb., but the union insisted on an earlier date. Manaranga warned that failure to grant a meeting could trigger a massive protest in Colombo today (02).
Four officers participating in the hunger strike have been hospitalised due to deteriorating health, while two more joined the fast on Saturday (31).
In a bid to raise awareness of their grievances, on 30 January a delegation of the All Island Development Officers’ Association visited Most Venerable
Warakagoda Sri Gnanarathana Thera, Mahanayake of the Asgiriya Chapter, and subsequently with the Chapter’s Registrar, Ven. Dr. Medagama Dhammananda Thera. The prelates said promises that had been made to them should be fulfilled.
The protest began on 26 January as a satyagraha, after authorities failed to respond to repeated requests to integrate the officers into the teaching service. The escalation into a fast-unto-death underscores the protesters’ frustration over the prolonged delay
by Pradeep Prasanna Samarakoon
News
Auditor General to be appointed tomorrow
The long-vacant post of Auditor General would be filled on 03 Feb., after months of controversy and delays, Minister of Transport, Highways and Urban Development Bimal Rathnayake said on Friday (31) in Kandy.
The Constitutional Council met at the Parliamentary complex on Friday to discuss the appointment but failed to reach a decision on a suitable candidate. The President had previously proposed four names on four separate occasions, all of which were rejected. The Council is now set to consider the fifth nominee.
The post has remained vacant since April 2025, following the retirement of Chulanta Wickramaratne, who served as the 41st Auditor General. More than 10 months have passed without a permanent appointment.
Sources said a female officer in the Auditor General’s Department has been nominated again, though her previous recommendation was rejected due to some allegations against her.
Meanwhile, senior audit officer Dharmapala Gammanpila, with 31 years of service and the department’s most senior official, has received backing from the Mahanayake Theras of the three Nikayas, the Maha Sangha, and several civil society groups for appointment as the 42nd Auditor General.
Sources noted that the three civil society representatives on the Constitutional Council will play a crucial role in the final decision.
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