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Rs. 16 bn sugar duty scam: Recovery of losses further delayed

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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.



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Sri Lanka Customs exceeds revenue targets to enters 2026 with a surplus of Rs. 300 billion – Director General

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The year 2025 has been recorded as the highest revenue-earning year in the history of Sri Lanka Customs, stated Director General of Sri Lanka Customs, Mr. S.P. Arukgoda, noting that the Department had surpassed its expected revenue target of Rs. 2,115 billion, enabling it to enter 2026 with an additional surplus of approximately Rs. 300 billion.

The Director General made these remarks at a discussion held on Tuesday  (30)  morning at the Sri Lanka Customs Auditorium, chaired by President Anura Kumara Dissanayake.

The President visited the Sri Lanka Customs Department this to review the performance achieved in 2025 and to scrutinize the new plans proposed for 2026. During the visit, the President engaged in extensive discussions with the Director General, Directors and senior officials of the Department.

Commending the vital role played by Sri Lanka Customs in generating much-needed state revenue and contributing to economic and social stability, the President expressed his appreciation to the entire Customs employees for their commitment and service.

Emphasizing that Sri Lanka Customs is one of the country’s key revenue-generating institutions, the President highlighted the importance of maintaining operations in an efficient, transparent and accountable manner. The President also called upon all officers to work collectively, with renewed plans and strategies, to lead the country towards economic success in 2026.

The President further stressed that the economic collapse in 2022 was largely due to the government’s inability at the time to generate sufficient rupee revenue and secure adequate foreign exchange. He pointed out that the government has successfully restored economic stability by achieving revenue targets, a capability that has also been vital in addressing recent disaster situations.

A comprehensive discussion was also held on the overall performance and progress of Sri Lanka Customs in 2025, as well as the new strategic plans for 2026, with several new ideas and proposals being presented.

Sri Lanka Customs currently operates under four main pillars, revenue collection, trade facilitation, social protection and institutional development. The President inquired into the progress achieved under each of these areas.

It was revealed that the Internal Affairs Unit, established to prevent corruption and promote an ethical institutional culture, is functioning effectively.

The President also sought updates on measures taken to address long-standing allegations related to congestion, delays and corruption in Customs operations, as well as on plans to modernize cargo inspection systems.

The discussion further covered Sri Lanka Customs’ digitalization programme planned for 2026, along with issues related to recruitment, promotions, training and salaries and allowances of the staff.

Highlighting the strategic importance of airports in preventing attempts to create instability within the country, the President underscored the necessity for Sri Lanka Customs to operate with a comprehensive awareness of its duty to uphold the stability of the State, while also being ready to face upcoming challenges.

The discussion was attended by Minister of Labour and Deputy Minister of Finance and Planning, Dr. Anil Jayanta Fernando, Deputy Minister of Economic Development, Nishantha Jayaweera, Secretary to the President, Dr. Nandika Sanath Kumanayake, Deputy Secretary to the Treasury, A.N.Hapugala, Director General of Sri Lanka Customs,  S.P.Arukgoda, members of the Board of Directors and senior officials of the Department.

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Educators slam govt. for ‘unprepared’ education reforms

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Teachers, principals and education professionals have said the government is unprepared to roll out proposed education reforms scheduled to take effect from next week, and warned of nationwide trade union action if the plans are implemented without adequate consultation and preparation.

Addressing a press conference in Colombo, President of the Association of Education Professionals, Ven. Ulapane Sumangala Thera, said Ministry officials had indicated that the reforms would be implemented from Monday, 05 January, but claimed that the vast majority of educators were opposed to the move.

“More than 90 percent of teachers say they have not received proper training on the new syllabus or the proposed reforms,” Ven. Sumangala Thera said. He alleged that the government was attempting to suppress opposition from teachers and principals by declaring school holidays, instead of addressing their concerns.

“If the government continues with these tactics, we will have no option but to resort to trade union action at a national level,” he warned.

Meanwhile, representatives of 16 teachers’ and principals’ unions who visited the Ministry of Education at Isurupaya on Monday to seek clarification on the reforms were turned away by security officials, reportedly on the grounds that prior appointments were required.

Speaking to the media outside the Ministry, Amila Sandaruwan of the Teacher Principals’ Collective said the delegation had attempted to raise their concerns during the Public Day allocated for visitors. “We wanted to know how these reforms are to be implemented and sought to meet the Secretary to the Ministry of Education, but we were barred,” he said.

Sandaruwan accused the Government of proceeding in an “adamant” manner and claimed the reforms were being driven by a handful of non-governmental organisations closely associated with senior ministry officials. “We will not allow this to happen,” he said.

Graded Principals’ Association representative Nimal Mudunkotuwa said widespread confusion prevailed among teachers and school administrators regarding the practical aspects of implementing the reforms. “There is no clarity on school hours—whether schools are to close at 1.30 p.m. as before, or continue until 2.00 p.m. as proposed,” he said.

He added that uncertainty also remained over the number of daily teaching periods, with conflicting statements suggesting either seven or eight periods. “Schools have yet to receive syllabus modules from the Ministry, and many schools lack smart boards and internet connectivity required to implement these reforms,” Mudunkotuwa said.

Ven. Ulapane Sumangala Thera strongly criticised the proposed reforms, describing them as “bastard reforms,” and accused the NPP Government of undermining the education system. He also raised objections to a unit in the proposed Grade Six English syllabus dealing with gay and lesbian relationships, claiming that senior Buddhist prelates, the Catholic Cardinal and other religious leaders had opposed its inclusion.

“The Government refuses to listen even to religious leaders,” he said.

Concerns were also raised at a National Sangha Council meeting held in Colombo on Monday evening at the Colombo Foundation Institute, organised to discuss the objectives of the proposed reforms. Addressing the gathering, Professor Venerable Induragare Dhammaratana Thera said the reforms required extensive discussion, consultation with subject experts and consideration of the experience of senior administrators.

He warned that the proposed changes could trigger the biggest crisis currently facing the country. “Implementing these reforms in this manner will harm future generations and could even destroy the present Government,” he said, likening the process to “forcing a round peg into a square hole.”

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Leading the Nation’s Connectivity Recovery Amid Unprecedented Challenges

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SLT Mobitel teams at work after Cyclone Ditwah

SLT-MOBITEL’s post-Cyclone Ditwah response reinforces its role as the National ICT Solutions Provider

In the aftermath of Cyclone Ditwah, SLT-MOBITEL led one of the most extraordinary national connectivity restoration efforts in recent years, mobilising the full breadth of its operational network, technical expertise, and emergency response systems to safeguard Sri Lanka’s digital lifeline.

The cyclone caused extensive flooding, landslides, and infrastructure damage throughout several districts, disrupting multiple layers of the national network. Yet within days, SLT-MOBITEL mounted one of the fastest and most comprehensive recovery operations in the company’s history, reaffirming the organisation’s role as the country’s telecommunications backbone.

From the earliest hours of the disaster, SLT-MOBITEL activated a coordinated national response, drawing on its regional operational structure, specialised engineering teams, and emergency governance mechanisms. The Sri Lanka Backbone Network (SLBN), the country’s most critical digital artery, signalled excellent resilience, with only a handful of nodes affected and restored within 24 hours. As the National ICT Solutions Provider, SLT-MOBITEL prioritised restoring connectivity for other network operators and users, while simultaneously extending comprehensive support to its own customers, ensuring that mobile services were swiftly re-established across the country.

The rapid restoration of SLT-MOBITEL’s islandwide core network served as a critical catalyst in accelerating the recovery of both fixed and mobile services across nearly all disaster-affected areas. This swift action also enabled other operators affiliated with SLT-MOBITEL to speedily restore their services, reinforcing the continuity of nationwide connectivity. To drive this effort, SLT-MOBITEL established a centralised ‘War Room’, operating under close management oversight, to coordinate telecommunication network restoration and rehabilitation across the country. Initial assessments indicate recovery and network upgrade costs of approximately LKR 5 to 6 billion.

SLT-MOBITEL teams worked around the clock to repair damaged fibre routes, recover flooded cabinets, and restore thousands of access nodes affected by the cyclone. In areas where fibre infrastructure was severely damaged, the company deployed temporary Fixed Wireless Access (FWA) facilities, helping communities, emergency responders, and essential services stay connected. Priority restoration was extended to hospitals, government agencies, and enterprise customers, helping with the continuity of critical national operations during the emergency.

SLT-MOBITEL also launched the 247 National Medical Helpline, a dedicated, round-the-clock support service introduced in collaboration with the University of Colombo. Within the first week of the launch, the medical helpline received a large volume of calls as the initiative provided immediate initial medical guidance to individuals facing injuries, infections, waterborne diseases, and other health complications. The service was powered by SLT-MOBITEL’s national connectivity backbone and a team of medical professionals arranged by the University of Colombo. The helpline became a vital public service, demonstrating the company’s commitment to supporting Sri Lankans in crisis and recovery through resilient infrastructure and accessible, people-centred communication. More importantly, the service was made available to all network providers, guaranteeing no one was excluded from receiving medical assistance islandwide.

SLT-MOBITEL worked closely with the Ministry of Defence, serving as the connectivity solutions provider for national disaster response efforts. With the support of the Sri Lanka Army, field teams were able to swiftly access affected sites, enabling faster repairs, safer operations, and the restoration of services in some of the most challenging terrains. The partnership highlighted the critical role of telecommunications in national security, emergency coordination, and public safety, with the Army’s contributions acknowledged with gratitude.

In addition to network restoration, SLT-MOBITEL extended critical national-level support to various government institutes, sustaining essential public services during the disaster period. As a result of the services provided, SLT-MOBITEL secured uninterrupted operations and dependable connectivity for these vital national institutes.

Within one week of the cyclone, SLT-MOBITEL had successfully restored over 98 percent of the sites impacted by the cyclone, with only a small number of locations in the most severely affected districts, pending access clearance. The company continues to address individual customer connections and any remaining access nodes, despite significant human resource and environmental challenges. Throughout the recovery period, customers demonstrated commendable patience and understanding, which greatly supported the restoration efforts.

The disaster has also highlighted the urgent need for long-term national network resilience. SLT-MOBITEL is advocating for the accelerated undergrounding of high-risk fibre routes, prioritised access to bridge ducts, and fast-tracked power restoration protocols during emergencies. The company is also advancing the migration of copper-based access networks to fibre.

As Sri Lanka’s National ICT Solutions Provider, SLT-MOBITEL is committed to keeping the nation connected in every crisis. The rapid restoration efforts, cross-government support, and dedication to public service reiterates the company’s mission to rise above commercial operations, upholding the role as the country’s trusted digital lifeline.

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