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Sugar tax style scam causes huge losses to Treasury

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A section of govt. connived with milk food importers-FNO

The Federation of National Organizations (FNO) yesterday (12) alleged that an influential section of the government and milk food importers had connived to have import duty on milk powder abolished before they cleared already imported milk food stocks.

A spokesperson for FNO compared the racket to issuance of a special gazette in early Oct 2020 to reduce sugar import duty to 25 cents from Rs 50 that caused massive losses.

Head of the FNO Dr. Gunadasa Amarasekera, in a statement issued yesterday on behalf of the organisation, pointed out that the government had announced removal of import duty on milk food imports after 4,200 metric tonnes or 4.2 million kilos of milk power had arrived at the Colombo Port.

Pointing out that the stocks had been received about a month ago, the FNO alleged that interested parties, including a section of the government, had created an environment conducive for the duty waiver.

The FNO pointed out how the importers would benefit tremendously from that move.

The FNO reminded the incumbent administration that at its onset the country lost as much as Rs 600 bn due to removal and reduction of a range of taxes. (SF)



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Govt. extends ban on LTTE

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The NPP government has issued a new extraordinary gazette renewing and extending Sri Lanka’s long-standing ban on the LTTE and several Tamil diaspora organisations and individuals, continuing to designate them as “terrorists”.

The gazette, published recently, replaces a previous gazette issued in May 2025 and reaffirmed the proscription of a wide range of Tamil political and advocacy bodies operating around the world, alongside dozens of named individuals. The government alleged both the organisations and individuals listed are involved in “terrorism-related activities”.

The organisations blacklisted by the Sri Lankan government include:

• Liberation Tigers of Tamil Eelam (LTTE)

• Tamil Rehabilitation Organisation (TRO)

• Tamil Coordinating Committee (TCC)

• World Tamil Movement (WTM)

• Transnational Government of Tamil Eelam (TGTE)

• World Tamil Relief Fund (WTRF)

• National Council of Canadian Tamils (NCCT)

• Tamil Youth Organisation (TYO)

While the majority of the designations mirror those contained in the May 2025 gazette, the latest document updates identification details and addresses for a number of individuals and introduces at least one additional organisation to the list. All entries have been reissued under new reference numbers for 2026, though the underlying allegations and framing remain unchanged.

Successive governemnts have maintained a sweeping proscription regime against Tamil diaspora groups and individuals. A ban can make it a criminal offence for Sri Lankan citizens to maintain contact with these organisations or their members, severely restricting political engagement and stifling links between the diaspora and the Tamil homeland.

The original mass listings were introduced in 2014 under the administration of Mahinda Rajapaksa. Despite repeated outcry, subsequent governments have continued to uphold and renew the proscription regime, even after the Rajapaksas were voted out of power.

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Police obtain court order banning Wimal’s protest

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National Freedom Front (NFF) leader Wimal Weerawansa addresses a gathering outside the Education Ministry on Monday before launching a protest demanding the immediate resignation of Prime Minister Dr. Harini Amarasuriya as Education Minister over the inclusion of a link to an adult content website in the Grade 06 English module. (Pic by Thushara Atapattu)

Police yesterday (12) obtained an injunction order from the Kaduwela Magistrate’s court against the protest launched by National Freedom Front (NFF) leader and former Minister Wimal Weerawansa opposite the Education Ministry, Isurupaya, at Battaramulla.

Police informed Weerawansa of the court order. In line with the court order, the police informed Weerawansa that the road near the Ministry should not be obstructed and that no sound amplification equipment be used while the GCE Advanced Level (A/L) examination is in progress. The examination, put off due to Cyclone Ditwah, recommenced yesterday.

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Chinese Foreign Minister Wang Yi expresses optimism that Sri Lanka is on the right path to progres

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FM Herath with his Chinese counterpart Wang Yi

Minister of Foreign Affairs, Foreign Employment and Tourism Vijitha Herath held productive discussions with his Chinese counterpart Wang Yi today (12/01), during the latter’s brief visit to Sri Lanka.

The meeting aimed at further strengthening bilateral engagement and advancing the Strategic Cooperative Partnership between the two countries. Both Ministers reaffirmed the longstanding friendship and time-tested cooperation between Sri Lanka and China rooted in centuries of exchanges and consolidated since the establishment of diplomatic relations seven decades ago. The discussion also focused on enhancing partnership in the areas of trade, investment, development cooperation and tourism.

Minister Herath extended deep appreciation to the Government and the people of China for the steadfast support extended to Sri Lanka following cyclone Ditwah and requested further support for the second phase of resettlement, relocation and rebuilding, particularly for the restoration of affected infrastructure including identified roads, railways and bridges that are vital to connectivity, economic recovery and daily lives of people. Minister Wang assured China’s fullest support for this initiative and expressed confidence that Sri Lanka will continue its rapid recovery under the leadership of President Anura Kumara Disanayaka. He also welcomed the people-centric policies of the Government and expressed optimism that Sri Lanka is on the right path toward fulfilling aspirations of its people.

Minister Herath expressed appreciation for China’s constructive role in international fora and reiterated Sri Lanka’s firm commitment to the One China Policy and China’s sovereignty and territorial integrity.

Both Ministers also recalled the successful high level exchanges in the recent past, including visits of the President and the Prime Minister of Sri Lanka to China in 2025.

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