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Timber Corporation earned Rs 1.4 bn profit and transferred only Rs 100 mn to Treasury

Published

4 years ago

2022/04/29

By Saman Indrajith

The State Timber Corporation earned an operating profit of Rs. 1.4 billion in 2021, but transferred only Rs. 100 million to the Treasury. This came to light when the Committee on Public Enterprises (COPE) questioned a high-ranking state official recently.

COPE Chairman Prof. Charitha Herath said that the annual revenue earned by state institutions should be received by the State Treasury.

The COPE Chairman said state institutions should be prepared to send a significant portion of their earnings to the Treasury.

The Chairman said so when the officials of the State Timber Corporation was summoned before COPE recently to examine the Auditor General’s Reports for 2019 and 2020 and to evaluate their performance.

The COPE noted that the Forest Department had granted approval to the State Timber Corporation on 30 June 2020 for the removal of 28,958 pine trees from the Hein Ford Estate in Weligampola, Kandy but the trees had not yet been removed. Member of the Committee Mahindananda Aluthgamage, Member of Parliament said the State Timber Corporation could have earned a hugh profit if it has carried out that task

It was also revealed that the Committee on Public Enterprises on 10 October 2012 had directed that action be taken to amend the Corporation Act to empower the State Timber Corporation to issue a certificate for imported timber, but that had not been done. Officials of the Timber Corporation said a board paper had been submitted for this purpose. The COPE also drew attention to the delays in the process from 2012 to date.

The COPE inquired into a write off of Rs. 14.4 million worth of debt by the Corporation without the approval of the Treasury. The officials said that the decision had been taken by the then Acting Board of Directors in 2007 with the approval of the Corporate Audit and Management Committee. The COPE Chairman said that since the Secretary to the Treasury was in charge of the Consolidated Fund for Public Debt, if debts are written off, the Chief Accounting Officer should inform the Secretary to the Treasury and obtain permission.

The COPE said that in 2012, it had directed that the loss making Kaldemulla Furniture Factory should be turned into a profitable venture, but there had been no improvement.

The COPE Chairman stated that the furniture outlets owned by the Corporation as a whole had incurred huge losses. The Auditor General stated that the waste of large quantities of timber in the production of furniture had been observed as a reason for these losses and that byproducts of discarded timber could help reduce this loss to some extent. That was due to the lack of employees with proper knowledge of furniture manufacturing and the need to compete with the private sector in the market, the officials of the Timber Corporation said.

The COPE Chairman instructed the Secretary to the Ministry to send a report within one month on the future course of action to be taken in consultation with relevant officials.

The COPE also noted that two advisors and a driver had been recruited for the Chairman of the Corporation in contravention of the circular. The recruits were paid an allowance of Rs. 2,850 per day for 270 days, a sum of Rs. 769,500, from 12 February to 3 September 2019. Although the approval of the General Treasury had been sought for this purpose, it was not received and the COPE Chairman directed the Secretary to the Ministry to take legal action against the relevant Chairperson.

The COPE noted that the corporation had incurred a loss of Rs. 982,473 after reducing the price of items valued at Rs. 1,690,183 by more than 50 percent to Rs. 707,710 and the General Manager of the Corporation stated that this decision had been taken due to the fact that the furniture was in a defective condition after being kept for too long without disposal. The Chairman said that if such concessions could be justified, a Board Memorandum should be submitted and the Auditor General’s Department should be informed.

The COPE meeting was attended by Members of Parliament Mahindananda Aluthgamage, Jagath Pushpakumara, Harsha de Silva, Eran Wickramaratne, Indika Anuruddha, Sagara Kariyawasam, Madhura Withanage as well as the Secretary to the Ministry of Wildlife and Forest Conservation and officials of the State Timber Corporation.

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Navy seizes a consignment of narcotics and apprehends 06 suspects in offshore operation

Published

1 hour ago

2026/03/8

Priyan

Answering to the call of the national mission ‘A Nation United,’ the Navy has tightened its grip on the island’s maritime boundaries.

Striking deep in the southern waters, a successful naval mission
resulted in the seizure of a local fishing trawler and six (06) suspects, foiling a major drug smuggling attempt.

The intercepted trawler, carrying 02 suspicious sacks, and suspects were escorted to the Dikowita Fisheries Harbour today (08 Mar 26).

A specialised inspection conducted by the Police Narcotic
Bureau (PNB) confirmed that the sacks contained more than 102kg of heroin and over 900g of cocaine.

The detection was inspected on-site by the Deputy Minister of Defence, Major General Aruna Jayasekara (Retd), alongside the Commander of the Navy, Vice Admiral Kanchana Banagoda.

Speaking on this occasion, the Deputy Minister emphasized that under the guidance of the President and the supervision of the Ministry of Defence, the Tri-Forces, Police, and intelligence
agencies have intensified the “A Nation United” national mission, leaving no stone unturned.

He noted that during 2025, the tri-forces and police, in coordination with domestic and international agencies, conducted numerous successful operations. Notably, the Navy seized over 75 billion rupees worth of narcotics.

Despite national disasters and the escalating global conflicts
and growing reports of vessel distress in Sri Lankan waters, the Sri Lanka Navy stands vigilant around the clock, tirelessly fulfilling its critical mission in alignment with international maritime conventions.

Accordingly, the Deputy Minister commended, on behalf of the President, the Navy’s vital role in ensuring public safety and protecting the youth from drugs.

Adding further, he declared drug trafficking has become a major menace, stressing that all of society, not just authorities, must help eradicate it. He urged traffickers and dealers to quit the trade, noting that drugs cannot enter the country by sea or air. Addicts were also urged to do away with the habit, as a huge amount of money is spent on their rehabilitation.

The Deputy Minister further stated that the toxic drugs seized will remain in highly secure custody until the conclusion of legal proceedings, and arrangements have been made to destroy a large quantity of toxic drugs and case exhibits for which legal proceedings have been completed.

He also emphasized that law enforcement agencies have been granted the opportunity to operate independently. Accordingly, the public was urged to provide information regarding drug
traffickers via the hotline numbers 1818 and 1997.

Additionally, the event acknowledged the responsible journalism carried out by media institutions and journalists in raising public awareness about the drug menace.

The multi-day fishing trawler, along with the haul of narcotics and 06 suspects was handed over to the Police Narcotic Bureau for further investigation and legal proceedings.

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Our goal is to build a “Thriving Nation” where a woman can walk without fear or doubt, where her talents are duly recognized, and where she can lead a life of dignity – PM

Published

13 hours ago

2026/03/8

Priyan

Prime Minister Dr Harini Amarsooriya in her message on International Women’s Day 2026 says that the governments goal is to build a Thriving Nation where a woman can walk without fear or doubt, where her talents are duly recognized, and where she can lead a life of dignity.

The PM’s message:

“I extend my greetings to all sisters and daughters in Sri Lanka and around the globe on the occasion of International Women’s Day.This year, the United Nations has declared the global theme for International Women’s Day as “Rights. Justice. Action. For ALL Women and Girls,” emphasizing the realization of rights, the delivery of justice, and meaningful action for all women and girls.

Women are the true pillar of Sri Lankan society and economy. The role they play within the family and in society has today become a decisive factor in shaping the future of our nation. Through the Government’s policy statement, “A Thriving Nation – A Beautiful Life,” we envision going beyond treating women as mere beneficiaries and recognizing them as active partners in national development, ensuring that they receive the dignity and opportunities they rightfully deserve.

Within our policy framework, special focus has been placed on women. We are committed to recognizing the economic contribution extended by women as housewives, promoting women’s entrepreneurship, and expanding access to the technical and financial support necessary for self-employment alongside strengthening the legal framework required to ensure women’s safety in public transport, workplaces, and within the family environment. Further, we are taking steps to create the environment to increase women’s representation in decision-making bodies at national and regional levels. Special attention is also being given to implementing targeted programmes aimed at improving women’s nutrition, reproductive health, and mental well-being.

Women are not a group seeking sympathy; they are vital social partners endowed with intelligence, resilience, and creativity. Our goal is to build a “Thriving Nation” where a woman can walk without fear or doubt, where her talents are duly recognized, and where she can lead a life of dignity

On this International Women’s Day, I sincerely hope that it marks the beginning of a new era in which the aspirations of all women in our country are realized as they shine before the world.

Latest News

Heat Index at Caution Level in the Sabaragamuwa, North-western and North-central provinces and in Colombo, Gampaha, Vavuniya, Mannar, Hambantota and Monaragala districts

Published

13 hours ago

2026/03/8

Priyan

Warm Weather Advisory issued by the Natural Hazards Early Warning Centre of the Department of Meteorology at 3.30 p.m. on 07 March 2026, valid for 08 March 2026.

Heat index, the temperature felt on human body is likely to increase up to ‘Caution level’ at some places in the Sabaragamuwa, North-western and North-central provinces and in Colombo, Gampaha, Vavuniya, Mannar, Hambantota and Monaragala districts

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.