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Sugar tax scam takes shocking turn: Parliament directive to recover Rs 16 bn disregarded
FM now claims loss of revenue not reported, contradicts AG’s findings
By Shamindra Ferdinando
The ongoing controversy over the failure on the part of the Finance Ministry and the Inland Revenue Department (IRD) to recover taxes from companies implicated in a massive sugar tax scam in 2020 has taken a shocking turn, with the Department of Trade and Investment Policy declaring that loss of revenue hadn’t taken place.
D. M. A. Dassanayake, Information Officer of the department that comes under the purview of the Finance, Economic Stabilisation and National Policies Ministry, said so in response to a query submitted to the Ministry in terms of the Right to Information Act (RTI) No 12 of 2016.
The Finance Ministry emphasised that contrary to claims, the issuance of Gazette 2197/12, dated Oct. 13,2020 whereby Special Commodity Levy (SCL) on sugar imports had been reduced to 25 cents from Rs 50 (per kg) didn’t cause any loss of revenue.
The Island received the Finance Ministry response on February 08, 2024 for a set of questions submitted on Dec 18, 2023. The questions were based on the proceedings of the Public Finance Commission on Dec 16 chaired by Dr. Harsha De Silva, economist and member of the main Opposition Samagi Jana Balawegaya (SJB)
During the Dec 16 proceedings, Dr. De Silva questioned the failure on the part of the Finance Ministry and the IRD to recover the losses as ascertained by the Auditor General by way of a forensic audit conducted into the Oct 2020 sugar scam. The House committee flayed the two institutions for turning a blind eye to several major sugar importers making a killing at the expense of the consumers. The Auditor General has named those who benefited from the SCL reduction.
MPs Chandima Weerakkody, Madura Vithanage, Duminda Dissanayake and Sumith Udukumbura attended the meeting.
Declaring that the government lost tax revenue, amounting to over Rs 16 bn, the AG had recommended criminal investigation into the sugar scam perpetrated during Mahinda Rajapaksa’s tenure as the Finance Minister. At the time of the issuance of the controversial Gazette in Oct 2020, S.R. Attygalle served as the Secretary to the Ministry of Finance. The forensic audit revealed that the government suffered a loss of Rs. 16.763 bn within four months (Oct 14, 2020 to Feb 08, 2021).
The House committee has pointed out that in spite of the SCL on sugar imports being reduced by a staggering 99.5%, the relevant authorities hadn’t done anything to prevent importers from exploiting the consumers. The IRD has been asked on January 16, 2024 to submit a report in respect of recoveries to be made from sugar importers.
Responding to another query, Information Officer Dassanayake said that the Finance Ministry had been summoned before the Public Finance Commission twice.Asked what were the difficulties in recovering revenue losses caused by the sugar tax scam, the RTI officer said that the question didn’t arise as losses hadn’t been estimated.
Asked whether another sugar tax scam perpetrated in November last year in the wake of the change of government consequent to Aragalaya was under investigation, the RTI officer declared that investigations conducted by the CID and the CIABOC (Commission to Investigate Allegations of Bribery or Corruption) so far didn’t reveal fraud. The Island pointed out that Labour and Foreign Employment Minister Manusha Nanayakkara is on record as having alleged a massive tax scam occurred in November last year.
The Island also asked whether President Wickremesinghe, in his capacity as the Finance Minister, instructed the Finance Ministry regarding the recouping losses. The RTI official said that the question is irrelevant as loss of revenue hadn’t been estimated or reported.
The Public Finance Commission has also paid attention to the reversal of the Special Commodity Levy in November in respect of sugar imports. The House committee questioned the rationale in the Finance Ministry seeking to collect as much as Rs 30 bn from consumers by way of tax reversal while allowing those who had been implicated in massive fraud to go unpunished.
The Finance Ministry disregarded questions submitted in terms of the RTI regarding the IMF stand in respect of the need to streamline revenue collection and whether the Ministry consulted the Attorney General as regards ways and means to address such corrupt practices.
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Over 40 persons injured in head on crash at Talalla
Over 40 persons have been injured (some critically) as two buses one travelling from Galle to Ampara and the other from Tangalle to Matara crashed head on at Talalla Matara this morning.
The injured have been admitted to the Matara General Hospital and Bathhegama District Hospital.
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Turkiye beat US 3-2 with stoppage-time goal in dead rubber
Turkiye beat a heavily changed United States 3-2 with a late Kaan Ayhan winner in an action-packed dead-rubber clash that gave the 2026 World Cup cohosts their sternest test so far ahead of the knockout rounds.
Already crowned the Group D winners, the US arrived in Los Angeles seeking to extend a perfect start with a third win, but with more than an eye on next Wednesday’s last 32 meeting against Bosnia and Herzegovina.
For Turkiye, already eliminated and without even a goal after disastrous losses to Paraguay and Australia, the only objective was to restore some pride.
Despite the low stakes and substantially reshuffled lineups for both teams, a packed Los Angeles Stadium was in a deafening mood.

For the third game running, the US got off to a dream start. One of nine changes, backup centre-back Auston Trusty, was unmarked at the far post from a US corner, given time to cushion the ball with his left foot, then blast it home.
It was the Celtic defender’s first international goal, and – at just under three minutes – the second-fastest by the US at a World Cup.
But Turkiye did not surrender. Having not scored in 62 efforts across their first two games, it was the 63rd time lucky for the Turks, and their star man, Arda Guler.
The Real Madrid forward duped Mark McKenzie with a clever dummy, allowing the ball to run down the right flank to Baris Alper Yilmaz.
Yilmaz crossed it back to Guler, who smashed it past Matt Turner to equalise in the 10th minute.

With Brad Pitt and Edward Norton among the Hollywood crowd, the game threatened to become a fight club, as Turkiye’s bench rushed the field to protest a foul by the combative Sebastian Berhalter, who earned a yellow.
The Americans thought they had restored the lead, with McKenzie the second US centre-back to put the ball in the net. But his sharp response to Ricardo Pepi’s saved shot was ruled offside.
In the 31st minute, the US found themselves behind for the first time this World Cup.
Guler spotted Eren Elmali’s overlapping run, feeding it to the wing-back, who cut the ball back from the left byline to Yilmaz, who steered it beyond the keeper.
‘Captain America’ returns

The half-time break proved the perfect tonic for the US. In the 49th minute, they were back level from a long throw by McKenzie.
The ball was cleared by Turkiye only as far as Berhalter, who did well to smash his shot low into the bottom corner.
The crowd erupted again just before the hour mark as Mauricio Pochettino sent on Christian Pulisic, undoubtedly the US’s biggest star, who will shoulder much of the cohosts’ hopes of a deep run into the knockouts.
Nicknamed “Captain America”, Pulisic earned his own round of “USA” chants, having not appeared since aggravating an injury in the first half of the opening win against Paraguay two weeks ago.
Pulisic immediately looked lively, twice having his effort blocked from close range after darting runs from the left. He knew less about a ball that looped off his shin onto the post.
Turkiye began to knock on the door again. A Yildiz effort curled inches wide in the 72nd minute.
And deep into stoppage time, Ayhan spoiled the US party, slamming the ball home from close range.
Turkiye were jubilant, while the American players clustered in a circle after the final whistle, seemingly determined not to let the gut punch spoil a campaign that had been off to a flying start.

[Aljazeera]
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UNICEF Delegation Meets Prime Minister
A delegation from UNICEF, accompanied by the United Nations Special Representative of the Secretary-General on Violence Against Children (VAC), Dr. Najat Maalla M’jid, met with Prime Minister Dr. Harini Amarasuriya on Thursday [25 June] at the Parliament premises.
The discussion was focused on further strengthening cooperation and engagement with the Government of Sri Lanka on ensuring the protection and well-being of children, and efforts to prevent and respond to all forms of violence against children.
During the meeting, the Prime Minister acknowledged UNICEF’s continued support to Sri Lanka, particularly during the response to Cyclone Ditwah, as well as its longstanding contributions to reforms in education and early childhood education and initiatives aimed at preventing and addressing violence against children.
The Prime Minister noted that while Sri Lanka has made significant progress in developing policies, the challenge lies in ensuring their effective implementation. She emphasized the need to address gaps in institutional capacity and human resources, while strengthening coordination among the various parts responsible for child protection while highlighting the critical role of frontline workers in the delivery of child protection services.
During the discussion, representatives of UNICEF emphasized the importance of bringing together all relevant stakeholders to address gaps in child protection procedures and referral pathways. Particular attention was given to ensuring that children have clear and accessible mechanisms through which they can report abuse and seek assistance.
Dr. Najat Maalla M’jid highlighted the importance of strengthening the competencies of frontline professionals on psycho social support, early detection, defining direct signs, techniques of effective listening, and safeguarding privacy. The discussions also underscored the growing importance of protecting children from online violence and abuse, and the need to strengthen measures to ensure children’s safety in digital environments.
The meeting was attended by Dr. Najat Maalla M’jid, United Nations Special Representative of the Secretary-General on Violence Against Children; Ms. Emma Brigham, UNICEF Representative; Mr. Marc-André Franche, United Nations Resident Coordinator; officials from the Ministry of Foreign Affairs; and additional secretaries and officials from the Ministry of Education.
[Prime Minister’s Media Division]
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