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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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Military held land: Govt. trying to maintain balance between security and civilian needs

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Deputy Defence Minister Maj. Gen. Jayasekera receiving a field briefing during a recent visit to the Jaffna peninsula (pic courtesy MoD).

The NPP government is trying to maintain a balance between continuing demands for releasing north-east land held by the military and post-war security requirements, says Deputy Defence Minister Major General Aruna Jayasekera (Retd), who has undertaken a series of visits to the northern and eastern provinces in the recent past to explore ways and means of releasing the land, without compromising national security requirements.

Since the armed forces brought the war to a successful conclusion in May, 2009, releasing of both privately- and state-owned land began cautiously in October, 2009, and by now over 90 percent of both categories have been released. At the height of the war, before the launch of Eelam War IV, in August 2006, Jaffna peninsula had the largest concentration of troops assigned to four Divisions.

In the first week of June, Deputy Minister Jayasekera visited the Trincomalee District to ascertain the situation. The Defence Ministry said that the Deputy Minister had assessed the current status of such lands and received briefings from senior military officers and relevant officials on security and administrative aspects regarding the properties.

Following the field inspection, the Deputy Minister chaired a meeting at the Governor’s Secretariat Office where the discussion focused on what the Defence Ministry called a balanced and practical approach to address land-related issues, protect the livelihoods of the people, and ensure that national security requirements were properly managed.

Jayasekera, with a career spanning well over three decades, retired in November, 2019, after having last served as the Eastern Commander for about a year.

During his June visit, the Deputy Minister visited various security forces establishments, including the 22 Infantry Division.

A senior retired military official said that those who had been demanding that all security forces held land, both state- and privately-owned, be released, have conveniently forgotten that this was made possible due to the eradication of the LTTE.

The Deputy Defence Minister conducted a series of field visits in the Jaffna and Wanni regions to assess the security situation and operational commitments. According to the Defence Ministry, the Deputy Minister addressed senior tri forces personnel at the Security Forces Headquarters – Jaffna (SFHQ-J) and the Security Forces Headquarters – Wanni (SFHQ-Wanni).

The Deputy Minister chaired civil-military coordination meetings in the Mannar and Jaffna districts to the ongoing land ownership issues, fostering socio economic growth, and streamlining local infrastructure layout in close cooperation with the regional administrative mechanism. The Ministry said that the Deputy Minister inspected agricultural zones, private residences and public common areas, presently placed within the operational infrastructure of the Sri Lanka Navy across several locations, in Mullikulam, Silawathura, Talaimannar, Wankalapadu, and Pallimune.

Members of Parliament for the Vanni Electoral District, Selvam Adaikalanathan, Kader Masthan, Thurairasa Ravikaran and the District Secretary for Mannar were also present at the meeting where matters related to socio economic grievances, local infrastructure demands, and land rights of the local residents were central topic in the agenda.

The Deputy Minister of Defence chaired a second meeting at the Governor’s Office in Jaffna where the main focus was existing land issues in the districts of Vavuniya, Mannar, Mullaitivu, Kilinochchi, and Jaffna.

The Jaffna proceedings were co-chaired by the Minister of Fisheries, Aquatic and Ocean Resources and Chairman of the District Coordinating Committee for the Jaffna and Kilinochchi Districts Ramalingam Chandrasekar and Deputy Minister of Co-operative Development Upali Samarasinghe.

The Defence Ministry said that stability depended on striking an optimal balance between prioritising national security obligations and resolving outstanding issues related to both state owned and privately used lands. “We are implementing a transparent mechanism to swiftly transition designated lands back into the hands of local communities for housing, fishing, and agriculture.”

The participation of the Commander of the Army and the Commander of the Navy underscored the importance of the discussions held in the north.

In the Mannar region the focus was on lands, presently used by the Navy, in the areas of Mullikulam, Silawathura, Talaimannar, Wankalapadu, and Pallimunai.

Authoritative sources said that since the end of the war, the military had given up held areas and what remained occupied were essential for security purposes. The depletion of the area under direct control should be examined taking into consideration gradual overall reduction of combined security forces strength over the years. At the end of the war, the Army had approximately 205,000 officers and men, both regular and volunteer. That figure has been reduced to 150,000 to 160,000. In line with the government thinking the Army strength would be brought down to 100,000 by 2030, a plan first announced by President Ranil Wickremesinghe.

By Shamindra Ferdinando

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Yoshitha granted bail, travel ban imposed

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Ex-Navy officer Yoshitha Rajapaksa, second son of former President Mahinda Rajapaksa, being taken to the Colombo Chief Magistrate's court yesterday.

Colombo Chief Magistrate Lahiru de Silva yesterday granted bail to Yoshitha Rajapaksa, second son of former President Mahinda Rajapaksa, on three sureties of Rs. 5 million each, and imposed an overseas travel ban.

The Commission to Investigate Allegations of Bribery or Corruption (CIABOC) arrested Yoshitha yesterday morning when he called over to make a statement regarding an ongoing investigation into his recruitment to the Sri Lanka Navy and training at the UK Royal Naval Academy.

CIABOC said that the arrest had been made in connection with an investigation into the 2006 recruitment of cadet officers to the executive branch of the Sri Lanka Navy.

It has been alleged that individuals were recruited without meeting the required qualifications and state funds were used outside established procedures for their training at the Royal Naval Academy in the UK.

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EV Adoption critical for renewable energy growth and economic stability, says Minister Karunathilaka

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Expanding the use of electric vehicles (EVs) in Sri Lanka is not only vital for reducing the country’s dependence on costly fossil fuel imports but also essential for unlocking the full potential of renewable energy and strengthening the national economy, Power and Energy Minister Anura Karunathilaka said yesterday.

Addressing a stakeholder consultation workshop on the formulation of the National EV Charging Infrastructure Policy, Minister Karunathilaka stressed that Sri Lanka’s transition towards cleaner transport could yield substantial economic and environmental benefits.

“At present, electric vehicles account for only about one per cent of the country’s vehicle fleet. If we can significantly increase that share and ensure that these vehicles are charged using renewable energy, Sri Lanka can save billions of rupees currently spent on importing fossil fuels,” the Minister said.

He noted that such a shift would also enable the country to maximize its renewable energy potential while making a meaningful contribution to economic growth.

The workshop, held in Colombo, brought together policymakers, regulators, energy experts and industry stakeholders to discuss strategies for developing a comprehensive EV charging infrastructure network across the country.

Minister Karunathilaka acknowledged that several barriers continue to limit the growth of EV adoption in Sri Lanka. He said the government was identifying these challenges and exploring practical solutions to overcome them.

Among the measures under consideration are the introduction of lower electricity tariffs for vehicle charging during off-peak daytime hours, the establishment of charging stations outside major urban centres, and the strengthening of the national power grid to accommodate future demand from electric mobility.

“The objective is to create an enabling environment that encourages more Sri Lankans to switch to electric vehicles while ensuring that the necessary infrastructure is available throughout the country,” he said.

The consultation forms part of a broader initiative jointly organized by the Ministry of Energy, the United Nations Development Programme and the Climate and Clean Air Coalition.

Representatives from the Public Utilities Commission of Sri Lanka, Sri Lanka Sustainable Energy Authority, the National System Operator, electricity distribution companies and other key institutions participated in the discussions.

Deputy Minister of Energy Arkam Ilyas, Energy Ministry Secretary Russel Aponsu, Director General (Engineering) K.I.D. Jayasundara, and UNDP Resident Representative Azusa Kubota were among the senior officials and experts attending the event.

Energy sector observers say the development of a robust charging infrastructure and supportive policy framework will be crucial if Sri Lanka is to accelerate the adoption of electric mobility, reduce greenhouse gas emissions and lessen its vulnerability to volatile global fuel prices.

The proposed National EV Charging Infrastructure Policy is expected to provide the roadmap needed to drive that transformation and position Sri Lanka for a cleaner and more sustainable transport future.

By Ifham Nizam

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