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‘Runaway cost of living: Govt. rendered itself impotent by doing away with price controls’

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Ex-CAA official: “Trade, Consumer Protection ministries reduced to nameboards’

By Shamindra Ferdinando

Co-operative Services, Marketing Development and Consumer Protection State Minister Lasantha Alagiyawanna said that the government could not interfere with the Milk Food Importers’ Association decision to increase the prices of imported powdered milk.

The SLFPer pointed out that price control on imported milk food had been done away with in early November. Therefore, the Consumer Protection Ministry couldn’t interfere with their decision, the Gampaha District lawmaker said, adding he was informed of the price increase.

MP Alagiyawanna said so when The Island sought his response to the Milk Food Importers’ Association announcement on Thursday (30) as regards the price increase with effect from Dec 30 midnight. According to their spokesperson Asoka Bandara, the price of a kilo of packeted milk powder would cost Rs 1,345 and 400 grammes pack Rs 540.

State Minister Alagiyawanna said that a kilo of imported milk powder and 400 grammes pack had cost Rs. 1,195 and Rs 480 before.

State Minister Jayantha Samaraweera on behalf of the National Freedom Front (NFF) recently urged the government to re-impose price controls or face the consequences. Lawmaker Samaraweera alleged that duty concessions that had been granted to various importers, including the Milk Food Importers’ Association didn’t benefit the consumers. The Kalutara District MP cited the reduction of duty on imported sugar in Oct 2020 as a case in point.

Having imposed emergency regulations that had been imposed on Aug. 30, 2021 to prevent hoarding and the termination of the Office of Commissioner General of Essential Services, the government on Nov 04, 2021 removed the retail price cap on several essential commodities through a gazette notification. The retail prices of dhal, sugar, sprats, green gram, potatoes, big onions, canned fish, chickpeas, wheat flour, full cream milk powder, dried fish, coconut, chicken and maize were removed.

The new gazette notification has also removed the maximum price limit of Rs. 1,500 for a 400g packet of sausages and Rs. 1,500 for a kg of mackerel. In addition to that the Special Commodity Levy of Rs.65 per kg of imported rice has been reduced to 25 cents for the next six months.

As per the powers vested in terms of the section 2 of the Public Security Ordinance, President Rajapaksa declared emergency regulations formulated as per the section 5 on essential food supply, with effect from midnight August 30, 2021.

Authority (CAA) Thushan Gunawardena questioned the justification of maintaining the Consumer Protection Ministry as well as the CAA at the taxpayers’ expense in the absence of what he called price control mechanism. “Consumers are fleeced. The government brazenly provides tacit support to unscrupulous business enterprises. On one hand, duty concessions are granted. And on the other hand price controls are done away with. The hapless public has no protection at all,” Gunawardena said.

The cabinet minister in charge of trade Bandula Gunawardena and State Minister of Consumer Protection Alagiyawanna should quit because they were jobless, Gunawardena said adding that there had never been a previous instance of any particular government altogether abolishing price controls.

Outspoken ex-official Gunawardena said that the appointment of a senior serving army officer Maj. Gen. M. D. S. P Niwunhella as Commissioner General of Essential Services for a short period was nothing but a joke. Gunawardena pointed out that having targeted some of those who hoarded sugar and rice and promised an uninterrupted supply of essential items at a reasonable price, the government had done away with price controls, abolished the Office of Essential Services and reduced the trade and consumer protection ministries to just name boards.

Responding to another query, Gunawardena pointed out that the recent media statements that had been attributed to State Minister Samaraweera revealed that the government had done away with price controls without consultations with constituents of the ruling coalition. “In fact, the current dispensation does not seem to believe in proper consultations as regards any matter. There cannot be a better example than the Yugadanavi Power plant share sale agreement,” Gunawardena said.

Asked what the government would do in case the Milk Food Importers’ Association exploited the consumers, State Minister Alagiyawanna said that the government could always resort to price controls. Asked to explain, the lawmaker said that in the case of milk food prices, before the association decided on Rs 150 per kilo increase, it was sold at Rs 1,195. “We are in a position to ascertain how the world market prices as well as shipping charges are impacting on imports,” MP Alagiyawanna said.



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Elders’ home devastated by fire was a ‘house of horror’: Witnesses

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Death toll rises to 12: Director remanded

Some residents were allegedly chained

Police have come under public pressure to investigate allegations of inhumane treatmenf the residents at an elders’ home in Batagoda, which was also reportedly used as a care centre for persons with special needs, following a devastating fire that has so far claimed 12 lives.

Eyewitnesses who were among the first responders told the media that several residents had been chained inside rooms at the Senehase Kedella Elders’ Home when the fire broke out on Wednesday. They claimed that rescue efforts were hindered as iron chains could not be removed, and that some residents died while being restrained.

Authorities have not yet verified these claims, and Police said investigations are continuing.

Police spokesman ASP F.U. Wootler, contacted for comment, said there were rumours to that effect, but the Police were not in a position to verify the claims until a report from the Government Analyst was received. He said eight survivors with burn injuries were being treated in hospital.

Meanwhile, the Director of the facility had been arrested and was due to be produced before the Horana Magistrate’s Court, Police said adding that he was remanded till June 11.

The death toll from the fire has risen to 12 as of Thursday morning following the recovery of additional charred remains during ongoing forensic examinations at the site. Six others sustained serious injuries and are being treated at the Horana Base Hospital.

Police said 72 residents were inside the facility at the time of the blaze. Of them, 10 died inside the building, seven were injured and hospitalised, while 51 were rescued and relocated.

Survivors were initially housed at Batagoda Junior School before being transferred with Army assistance to another branch of the same care network in Galpatha.

A magisterial inquiry was conducted on Thursday morning. Horana Magistrate Lakmini Vidanagamage visited the scene. The burnt remains were examined and removed under judicial supervision.

Separately, allegations have emerged that residents were required to pay an admission fee of Rs. 75,000, along with a monthly charge of Rs. 35,000 to the centre. Police have not commented on these claims.

The director was taken to the scene as part of ongoing investigations, while forensic experts continue examinations to determine the cause of the fire, which remains undetermined.Anguruwatota Police are conducting investigations.

 By Norman Palihawadane and Nishan S Priyantha

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CERT : AI-generated videos depicting Prez, PM lure public into financial scams

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Sri Lanka CERT has issued a public warning over the circulation of artificial intelligence (AI)-generated videos falsely depicting President Anura Kumara Dissanayake, Prime Minister Harini Amarasuriya and several other prominent personalities to promote fraudulent investment schemes online.

According to complaints received by the national cyber security agency, the videos have been created using deepfake technology and are being used as part of attempts to defraud members of the public through financial scams.

The images of famous sports personalities and other public figures have also been misused in the deceptive content.

The agency has warned that similar AI-generated material has been used to spread false information relating to investment opportunities, employment offers, as well as matters concerning the country’s economy and tax policies.

According to Sri Lanka CERT, the videos are being widely shared across online platforms and frequently contain links urging viewers to make investments in return for purported profits.The agency has cautioned that these links may redirect users to fraudulent websites designed to steal personal information, financial data and money from unsuspecting victims.

Sri Lanka CERT has urged the public to exercise extreme caution when encountering such content online and advised against clicking on suspicious links or sharing personal information through unverified websites.

“The public should remain vigilant and avoid becoming victims of false information and online fraud schemes,” the agency said.

Sri Lanka CERT has also encouraged internet users to verify information through official sources before acting on any investment, employment or financial offers circulated via social media or other online platforms.

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New tax law comes into force

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Speaker Dr Jagath Wickramaratne endorsing the certificate on a Bill (File)

Speaker Dr Jagath Wickramaratne on Wednesday endorsed the certificate on the Inland Revenue (Amendment) Bill, bringing the legislation into force as the Inland Revenue (Amendment) Act, No. 11 of 2026, Parliament sources said.

The Bill, which amends the Inland Revenue Act, No. 24 of 2017, was passed by Parliament on May 19.

The new law introduces a series of reforms aimed at modernising tax administration procedures, improving compliance and enforcement mechanisms, enhancing the accuracy of tax calculations and deductions, and strengthening transparency within the tax system.

The amendments also support broader economic policy objectives and include measures designed to reinforce anti-money laundering safeguards.Among the key provisions of the Act is the mandatory use of Taxpayer Identification Number (TIN) certificates for specified high-value financial transactions.

The legislation also introduces revisions to the calculation of taxable income, clarifies tax exemptions applicable to certain projects and business entities, and expands the scope for information disclosure to relevant authorities.

The amendments are expected to improve the efficiency of tax administration while facilitating greater accountability and regulatory oversight.With the Speaker’s endorsement of the certificate, the Inland Revenue (Amendment) Bill has now become law as the Inland Revenue (Amendment) Act, No. 11 of 2026.

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