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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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New Chairperson and Members appointed to the Finance Commission

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President Anura Kumara Dissanayake has appointed Ms N. R. Anees as the new Chairperson and a member of the Finance Commission.

J. M. C. J. Wijetunga and K. Karunaharan have been appointed as the other members of the Commission.

The letters of appointment were presented to the appointees by the Secretary to the President, Dr Nandika Sanath Kumanayake, at the Presidential Secretariat ton Monday (20)  afternoon

The appointments were made to fill the vacancies createdy  following the expiry of the terms of office of the previous members of the Finance Commission.

(PMD)

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True leadership is not about titles or power, but about acting responsibly for the well-being of others – Prime Minister

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Prime Minister Dr. Harini Amarasuriya stated that true leadership is not about titles or power, but about acting responsibly, with compassion, and working for the well being of the others.

The Prime Minister made these remarks while attending the President’s Guide Award and Prime Minister’s Award Ceremony, organized by the Sri Lanka Girl Guides Association, one of the country’s leading voluntary organizations dedicated to empowering girls and young women. The ceremony was held on Sunday (19th July )at Temple Trees in Colombo.

During the event, the Prime Minister presented medals and certificates to the award recipients.

A total of 350 awards were presented at this year’s ceremony, comprising 338 President’s Guide Awards and 12 Prime Minister’s Awards, in recognition of the recipients’ discipline, resilience, integrity, and commitment to serving others.

Addressing the occasion, Prime Minister Dr. Harini Amarasuriya stated that one of the greatest strengths of the Girl Guides association is its commitment to providing equal opportunities to every child, regardless of their background or abilities. The Prime Minister also emphasized that true leadership is not defined by titles or power, but by acting responsibly, listening with compassion, and working for the well-being of others.

The Prime Minister further noted that while women had limited opportunities in the past, today increasing opportunities are being created for girls and women across all sectors, and young women are making remarkable progress in every field. The Prime Minister further stressed that every girl and young woman deserves equal opportunities to improve themselves, noting that the country needs young women leaders who are ready to step forward to build a better future for Sri Lanka.

The Prime Minister  also highlighted that, particularly at a time when Sri Lanka is undertaking significant economic and democratic reforms, achieving sustainable national progress requires not only economic growth but also the development of citizens who uphold strong ethical values and social responsibility. In this regard, she commended the invaluable contribution made by the Sri Lanka Girl Guides Association.

Guided by its motto, ​“Be Prepared,” the Girl Guiding Movement in Sri Lanka was first established on 21 March 1917 at Kandy High School by Miss Jenny Calverley Green. Today, the movement operates through seven branches; Butterflies, the Little Friends, the Guides, the Rangers, the Youth, the Differently Abled Guides, and the Community Guiding Units, catering to different age groups and abilities. The President’s Guide Award is the highest honour that can be achieved by a Girl Guide and is awarded only to those who successfully complete the required challenges, written and oral examinations, and the BP Challenge. The Prime Minister’s Award is presented as the highest recognition within the Ranger Guide section.

The event was attended by at the President of the Sri Lanka Girl Guides Association Swarnika Pitigala, Chief Commissioner Dr. Kushantha Herath, President’s Guide Commissioner Pushpa Perera, Prime Minister’s Guide Commissioner Aruni Karunaratne, other senior officials of the Sri Lanka Girl Guides Association, President’s Guides and Prime Minister’s Guides, as well as a large number of their parents.


(Prime Minister’s Media Division)

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Customs asked to resume probe or face legal action

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Rs. 16 bn BMW revenue fraud:

Public interest litigation activist Nagananda Kodituwakku has said he will initiate appropriate proceedings against Director General of Customs, Wimal S.K. Liyanagama, in terms of the Anti-Corruption Act No 9 of 2023, unless the Customs carries out a revenue fraud inquiry to recover approximately Rs 16 bn in lost government revenue.

General Secretary of Vinivida Foundation, and former Customs officer, Kodituwakku said that though the Department, in response to his request for a meeting to discuss the issue, in writing, assured them that the investigation was underway, they found that the actual situation was not so.

Kodituwakku alleged that the Customs Chief had neglected what he called statutory duties under the Customs Ordinance, by disregarding his request for a meeting.

Kodituwakku said the investigation into the importation of 1,728 brand new BMW vehicles, under the concessionary duty permits issued by the government for the public servants, between 2011 and 2014, had been stalled.

The civil society activist said that investigations had revealed the vehicles hadn’t been imported by the permit holders themselves but others. It also transpired that the value of the imported vehicles, mentioned in the commercial invoices, proforma invoices and the CusDecs, tendered to Customs in the names of the permit holders, were not the actual values for the vehicles in question.

The high-profile case has been handled by the Central Investigation Directorate, at that time headed by Murugesu Thayabaran, a batchmate of Kodituwakku.

The ex-Customs officer said that he had appeared as counsel for Thayabaran in Court of Appeal and was determined to bring the case to a successful conclusion. According to him, the importer, over the years, had been represented by nine President’s Counsel as the case dragged on from the time of P.S.M. Charles, Director General, Customs.

Kodituwakku made available letters he wrote to the Customs and other parties on this issue, to The Island. Pointing out that the Court of Appeal on 7 May, 2024, dismissed the importer’s final appeal regarding the case pertaining to the revenue loss of Rs. 16 bn, Kodituwakku said that although the court had cleared the way for the Customs probe, no action had been taken.

However, the Court of Appeal ruling was given before Liyanagama succeeded Seevali Arukgoda as DG Customs on 6 May, 2026. Liyanagama served as Director General of the Department of Management Services at the Treasury before the new appointment.

Kodituwakku said that he had also brought the Customs case to the attention of the Commission to Investigate Bribery or Corruption (CIABOC).

Emphasising the failure on the part of the Opposition to raise this issue, both in and outside Parliament, Kodituwakku said that since the exposure of the BMW scam, during Mahinda Rajapaksa’s presidency, there had been four presidents, namely Maithripala Sirisena, Gotabaya Rajapaksa, Ranil Wickremesinghe and incumbent Anura Kumara Dissanayake. Unfortunately, successive administrations had allowed the interested parties to drag the case. The lack of interest shown by political parties revealed that they not only protected those responsible but encouraged corrupt practices of allowing third parties to import vehicles in terms of permits issued to legitimate recipients of such permits.

Having campaigned on an anti-corruption platform, during the presidential and parliamentary polls in 2024, the NPP couldn’t, under any circumstances, turn a blind eye to this situation, Kodituwakku said, adding that even the IMF should be concerned of the failure on the part of successive governments to recover the money.

By Shamindra Ferdinando

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