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Sugar scams continue: COPA reveals govt. yet to introduce licensing system

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Customs caused over Rs 114 mn in losses

The Committee on Public Accounts (COPA) has recently discussed how the Finance Ministry directive, issued in Oct 2020, resulted in a massive loss of revenue and the failure on the part of those in authority to take remedial measures in the wake of the media exposure of the scam.

The Parliament, in a media statement issued yesterday, said that the COPA examined a special audit of the reduction in the excise duty on a kilo of sugar from Rs. 50 to Rs. 25 cents. The watchdog admitted that the relief had not been passed on to the consumer and that the inordinate delay in introducing a licence system for sugar imports caused heavy osses to the state coffers.

The COPA would take up the failure to issue licences on 21 June.

The statement dealt with several other issues. The text of the statement: “The Committee on Public Accounts held recently drew special attention to the quantity of ethanol imported for use in Sri Lanka and the lack of proper regulation with importing institutions.

The Import and Export Control Department officials were instructed to submit a report to the Committee within two weeks containing the procedure for issuing licenses for the importation of ethanol into the country by various companies, information on each of these companies and the quantity of ethanol imported by those companies. It was also emphasised that the quantity of ethanol imported for other products, including pharmaceuticals, other than alcohol, and the proper use of ethanol for those products, should be taken into consideration.

Furthermore, the Committee inquired into the issuance of licenses for the importation of vehicles and spare parts to Sri Lanka. Although it had previously instructed to take the necessary steps to formulate a proper procedure in coordination with the Department of Motor Traffic, the Committee expressed its displeasure that no action had been taken in this regard. In addition, it was further requested that a suitable methodology be prepared to maintain the relevant activities in a more efficient and transparent manner and submit a report to the Committee within a period of four months.

The Committee also noted the lack of a standardised computer system to carry out the activities of the Department of Import and Export Control.

The Committee pointed out that the lack of proper coordination with the Direct Liaison Institutions, such as the Excise Department, the Department of Motor Traffic and the Sri Lanka Customs, is very problematic in conducting the activities of the Department and was instructed to take the necessary steps to do computer networking immediately.

To this end, the importance of liaising with institutions such as the Information and Communication Technology Agency of Sri Lanka (ICTA) and the Telecommunications Regulatory Commission was also emphasised.

Although the officials of the Department of Import and Export Control were informed about this matter in the year 2016, the Committee expressed its displeasure that this work has not been done so far and considering the importance of this, the Chairman of the Committee decided to appoint a Sub-Committee to inquire into its progress. Also, attention was drawn to the subsequent transfer of vehicles imported under the prize scheme to various parties. Accordingly, after the vehicles were imported under the gift scheme, the officers present were asked about the transfer of the vehicles to other parties.

The officials informed the Committee that the vehicles so imported on a tax concession basis could not be transferred to another party until five years have elapsed. They stated that even after five years of such transfers, the necessary procedures have been put in place to recover the normal tax value of the relevant vehicles.

The Committee also emphasised the importance of proper follow-up and regulation of licenses for vehicles imported under the gift scheme.

The Committee inquired about the loss of customs duty of 114.6 million rupees due to incorrect customs associated classification numbering of 33 used cars in the year 2017 contrary to the provisions of Gazette Notification No. 1933/13 dated 21st September 2015, Gazette Notifications for Vehicles subject to Licensing Control and Instructions given by the Minister of Development Strategies and the Minister of International Trade and the Minister of State to the Controller of Imports and Exports. It was also informed that the full investigation has been handed over to the CID. The Chairman of the Committee instructed to submit a report on its progress to the Committee within two weeks.

Members of Parliament Lasantha Alagiyawanna, Tissa Attanayake, Duminda Dissanayake, Udaya Gammanpila, Dr. Sudarshini Fernandopulle, Mohomad Muzammil, Niroshan Perera, Ashok Abeysinghe, Hesha Withanage, Sivagnanam Shritharan, Weerasumana Weerasinghe, (Prof.) Ranjith Bandara, B.Y.G Rathnasekara, and Dr. Upul Galappaththi, were present at the Committee meeting.



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Sun directly overhead Chilaw, Bingiriya, Halmillawewa, Panduwasnuwara, Gokarella, Kawudupelella, Koppaveli and Kirankulam about 12:12 noon. today (09)

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On the apparent northward relative motion of the sun, it is going to be directly over the latitudes of Sri Lanka from the 05th to 15th of April  this year.

The nearest areas of Sri Lanka over which the sun is overhead today (09th) are Chilaw, Bingiriya, Halmillawewa, Panduwasnuwara, Gokarella, Kawudupelella, Koppaveli and Kirankulam about 12:12 noon.

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Heat Index at Caution Level in the  Western, Sabaragamuwa, Southern, Eastern, North-western, Northern and North-central provinces and in Monaragala district

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Warm Weather Advisory
Issued by the Natural Hazards Early Warning Centre
Issued at 4.30 p.m. on 08 April 2026, valid for 09 April 2026.

The Heat index, the temperature felt on human body is likely to increase up to ‘Caution level’ at some places in the  Western, Sabaragamuwa, Southern, Eastern, North-western, Northern and North-central provinces and in Monaragala district.

The Heat Index Forecast is calculated by using relative humidity and maximum temperature and this is the condition that is felt on your body. This is not the forecast of maximum temperature. It is generated by the Department of Meteorology for the next day period and prepared by using global numerical weather prediction model data.


Effect of the heat index on human body is mentioned in the above table and it is prepared on the advice of the Ministry of Health and Indigenous Medical Services.

ACTION REQUIRED
Job sites: Stay hydrated and takes breaks in the shade as often as possible.
Indoors: Check up on the elderly and the sick.
Vehicles: Never leave children unattended.
Outdoors: Limit strenuous outdoor activities, find shade and stay hydrated.
Dress: Wear lightweight and white or light-colored clothing.

Note:
In addition, please refer to advisories issued by the Disaster Preparedness & Response Division, Ministry
of Health in this regard as well. For further clarifications please contact 011-7446491.

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AG: Coal procurement full of irregularities

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AG S. Jayarathne

The Auditor General has warned that delays in coal procurement and continued reliance on suppliers of questionable standards could disrupt the supply of electricity.

The special audit report on coal imports was presented to Parliament on Tuesday (07) by Bimal Ratnayake, Leader of the House, at the commencement of proceedings.

However, Opposition MPs complained to Speaker Dr Jagath Wickramaratne that copies of the report had not been distributed to Members of Parliament. Responding to the complaint, the Speaker said it was the responsibility of the Parliamentary Secretariat to ensure the report was provided to MPs.

The special audit, requested by the Committee on Public Enterprises (COPE), examined the coal procurement process of the Lanka Coal Company for the Lakvijaya Power Plant and purchases planned for the 2025/2026 season.

The audit revealed several irregularities in the tender process. It found that the laboratory issuing quality reports at the loading port for the controversial supplier Trident Company had its licence cancelled. The report also disclosed that at the time advertisements were published calling for tenders,the company had not completed its registration but was awarded the tender. In addition, three other suppliers who had not confirmed their registration were allowed to submit bids.

Coal shipments for the Lakvijaya Power Plant are tested at both loading and unloading ports. According to the audit, Mitra SK South Africa had been appointed to conduct testing at the loading port, but due to the absence of accreditation the task was assigned to PT Mitra SK Analisa Testama Samarinda, an Indonesian firm whose licence had been cancelled on December 29, 2025. Auditor General S. Jayarathne has noted that the audit could not confirm whether the licence had been renewed by March 31, 2026, and that all 12 shipment reports issued at the loading port lacked accreditation.

The report has further pointed to discrepancies between loading port laboratory reports and data recorded at the plant’s main control unit. Despite the availability of alternative verification methods, the Lanka Coal Company failed to use them to confirm the accuracy of the reports.

The audit also highlighted that no coal shipments were brought to Sri Lanka between November 13 and December 30, 2025, despite the need to secure maximum stocks during that period.

As a result of the shortage, an emergency procurement was carried out on March 18 this year, selecting Taranjot Resource Pvt Ltd. as the supplier. However, the Auditor General revealed that this company had failed within the previous 36 months to supply coal with the required calorific value of 5,900 or above to the Lakvijaya Power Plant.

The report warns that delays in coal imports and dependence on suppliers with questionable standards could adversely affect the continuous supply of electricity from the plant.

The National Audit Office of Sri Lanka has further estimated that the use of substandard coal has caused losses amounting to nearly Rs. 2.24 billion.

According to the report, losses incurred from individual shipments included more than Rs. 160 million from the first vessel (consignment No. 456), over Rs. 90 million from the second vessel (No. 457), more than Rs. 310 million from the third vessel (No. 458), and over Rs. 150 million from the fourth vessel (No. 459). Additional losses included nearly Rs. 180 million from the fifth vessel (No. 460), about Rs. 30 million from the sixth vessel (No. 461), over Rs. 240 million from the seventh vessel (No. 462), more than Rs. 390 million from the eighth vessel (No. 463) and over Rs. 390 million from the tenth vessel (No. 464).

The report has also noted that because the available coal stocks cannot generate electricity at the plant’s full capacity of 300 megawatts, additional power may have to be obtained from alternative sources. The estimated additional energy requirement for this purpose is 76,354,087 kilowatt-hours, the report has pointed out.

By Saman Indrajith

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