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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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Utilisation of Consolidated Fund for estate workers’ incentives challenged

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Rohini

SJB MP warns Budget Chief may end up behind bars

Matale District lawmaker Rohini Kaviratne (SJB) has questioned President Anura Kumara Dissanayake’s proposal to utilise the Consolidated Fund to pay a section of the estate workers’ salary increase, beginning January next year.

President Dissanayake, who also holds the Finance portfolio, on 07 November announced that the daily wage of estate workers would be increased to Rs. 1,750 from Rs. 1,350 under the proposed new scheme. President Dissanayake proposed that estate owners contribute Rs. 200 while the Treasury granted an additional Rs. 200 as a daily attendance incentive.

Declaring that the SJB believed that the daily wage of estate workers should be Rs 2,000, the former UNPer emphasised that the government couldn’t, under any circum stances, grant privileged status to those working for big estates.

According to her, the President’s proposal was contrary to the Public Financial Management Act, No. 44 of 2024 (PFMA) that became operational on 09 August, 2024. Introduced in the wake of Aragalaya and declaration of bankruptcy, PFMA replaced the previous Fiscal Management (Responsibility) Act, No. 3 of 2003.

Kaviratne said that Finance Secretary, Harshana Sooriyapperuma, who previously served as a National List MP of the NPP, may not have been conversant with that Act, and other related laws, hence the unprecedented proposal.

The SJB MP said that she had raised the issue with the Auditor General, the National Procurement Commission, as well as the Commission to Investigate Allegations of Bribery or Corruption.

The Opposition MP warned that in case the government acted, regardless of the laws of the land, the Director Budget, too ,could end up in prisons like former Immigration and Emigration Chief Harsha Illukpitiya.

By Shamindra Ferdinando

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Oxford Walk raises $13,000 for rural communities in Sri Lanka

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Some of the participants

After a week of typical British rain, on Sunday 2 November 2025 the clouds parted, and a glorious Autumnal sun rose splicing together the blue skies over the historical and beautiful city of Oxford, England. University of Oxford Sri Lanka Society students Leo, Ethan, Pradeep, Niorla, Taya, and others clad in distinctive neon yellow vests bearing the Solar Village SDG emblem on their backs, gathered outside the prestigious Saïd Business School of the Oxford University, to greet an avid group of fundraising walkers.

Solar Village SDG, a community interest company, based in Oxfordshire UK, had organised a sponsored walk taking sizeable groups of fundraisers on an 8 km walkabout through this gorgeous city’s most famous touch points, taking in the Radcliffe Square, the Bridge of Sighs, Bodleian Libraries, Museums and numerous other historic landmarks. Oxford University’s student marshals guided the walkers through their colleges and provided fascinating facts about this international city, its world-renowned history and alumni as well as the unique aspects of Oxford University life.

The organiser, Solar Village SDG, is dedicated to promoting sustainable development, poverty reduction, and climate action in Sri Lanka. The total funds raised in the region of £10,000 including the funds raised on the day, will go towards funding two solar villages and IT classrooms in rural sites in Anuradhapura and Batticaloa, Sri Lanka, to provide solar power solutions and sustainable development. The funding page will remain open through to the end of November: https://solarvillagesdg.enthuse.com/cf/oxford-city-walkabout-2025 . Solar Village SDG anticipates the full fundraising targets to be met over the course of the coming year.

In Anuradhapura, they will support a primary school. By installing a solar panel roof at the school, a Village Development Committee will ensure much needed work is carried out. They also hope to install a smart room to support education through IT once further funds are realised.

In Batticaloa, they hope to support a community in Navat Kulam struggling without clean running drinking water, or sanitation. Solar Village SDG aims to provide solar water pumping, desalination and drip irrigation systems to support cultivation. In time, they hope to support the community with water filtration mechanisms with support from the local authorities.

Solar Village SDG’s goals align with 14 of the UN’s 17 Sustainable Development Goals (SDGs), demonstrating the company’s innovative approach to integrating poverty reduction in rural populations with climate action and education. In supporting rural communities and remote schools in Sri Lanka, they will support education, cottage gardens, a clean environment, and the empowerment of the entire community notably female-led households where the need is greatest.

The fundraiser proved to be an immense success. This success is also dependent on the outstanding team of individuals who planned, attended, and supported these efforts.

Several performers illuminated the post-walkathon celebration, including Mrs. Athis Vadivale with a Bharatanatyam performance, Ms. Eresha Jayatilake singing covers of Yohani and the Beatles, Miss Ushara Dilrukshan with covers of Sade, Mr. Kris Dilrukshan performing covers of Bruce Springsteen, and the mother-daughter duo, Mrs. Chamari and Miss Sonali Samarasinghe, with a beautiful fusion of Sinhala and Bollywood dance. Alongside these performances were exhibiting Sri Lankan artists, including Lilani Dilrukshan, Nadee Ranasinghe, and Leilani Jeevaratnam. Ms. Dilrukshan also managed the performances and art sale.

The event was also fortunate to be graced by the presence of Mr. Sameera Dayasekara, Counsel who represented the Sri Lanka High Commission.

Moreover, The Coconut Tree, one of the top Sri Lankan Cuisine Restaurateurs based in Oxford (and other major UK cities) very generously donated a delicious Sri Lankan lunch for all walkathon attendees, allowing an international audience to enjoy a popular Sri Lankan meal.

While speaking and learning about the important issues facing rural Sri Lanka the participants enjoyed a tremendously enjoyable day out.

Solar Village SDG’s own members contributed extensively to this wonderful event. Cheryl and Katsuyori Yamamoto, Kamani and Ravi Hewagama, Marisa Rawlins, Emma Kokuhennedege and Priyanga Nugegodage to name but a few. Kshamara Fernando an Aberdeen University student in Scotland contributed to the preparation of a magnificent post-event souvenir alongside Solar Village SDG’s CEO Nilmini Roelens and this is available here. Further, Nilmini and Cambridge University student/American national Rashmi Raveendran worked hard collaboratively together to create a fabulous “A year in review” video to summarise the work and accomplishments from Solar Village SDG’s first year which is available here.

Of special note is the contribution of Canada based engineer and Master’s student Devni Jayasekara who set up and managed the fundraising platform Enthuse and without whose highly valuable IT skills the fundraising could not have been facilitated. University student leadership support in the UK from Evelyn and Neo was helpful in securing engagement.

One planet Abingdon and Abingdon Carbon Cutters, two Oxfordshire based climate action groups, provided extremely valuable fundraising support to this international mix of fundraisers. The top individual fundraiser spots for Oxford City Walkabout, went to Saliya and Sandya Samaranayake, Ravi and Kamani Hewagama, the pioneer of the Solar Village concept and Chair of Solar Village SDG cic, Emeritus Professor I M Dharmadasa as well as Lilani Dilrukshan, Eleanor Dangerfield and Fatima Aftab.

The truly international flavour of this worthy endeavour was sealed in when St Paul’s Milagiriya “Evergreens” Catheeja Ismail in Maryland, USA and Tung Chi Ching (“Tunchi”) based in Sydney, Australia took the excellent initiative to organise their very own sponsored “relay walk” locally in their own adoptive countries, contributing valuably to the Solar Village SDG’s Oxford City Walkabout fundraising.

Solar Village SDG CIC’s directors Professor IM Dharmadasa, Ms Nilmini Roelens and Mr Saroj Pathirana are extremely grateful for this outstanding support, and a Sri Lanka based team of experienced volunteers will now seek to implement the projects progressively in the coming months.

By Nilmini Roelens and Rashmi Raveendran

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Sri Lanka and Latvia sign agreement on transfer of sentenced persons

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Latvian Ambassador Juris Bone shaking hands with Sri Lankan HC Mahishini Colonne

Deepening bilateral cooperation between Sri Lanka and Latvia in the field of consular and legal affairs, the Agreement on the Transfer of Sentenced Persons between the two countries has been signed on 11 November, 2025, at the High Commission of Sri Lanka in New Delhi.

The text of the statement issued by Sri Lanka HC in New Delhi: “The Agreement was signed on behalf of the Government of Latvia by Ambassador of Latvia to India, Juris Bone, who is also concurrently accredited to Sri Lanka, and on behalf of the Government of Sri Lanka by High Commissioner of Sri Lanka to India, Mahishini Colonne.

The Agreement facilitates the transfer of sentenced persons between Sri Lanka and Latvia in accordance with each other’s national laws and regulations enabling individuals to serve their imposed sentences in their home countries. Guided by the principles of humanity and respect for human rights, the Agreement represents an important bilateral instrument promoting mutual legal collaboration and the social rehabilitation of sentenced persons while upholding humanitarian considerations.

The Ministry of Justice and National Integration of Sri Lanka will serve as the central authority for implementing the Agreement in Sri Lanka, while the Ministry of Justice of Latvia will act as the corresponding authority in Latvia.”

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