News
Treasury loses USD 18 mn as minister blocks CCD probe into generator fraud
by Ifham Nizam and Prabhath Withana
An investigation by the Colombo Crimes Division (CCD) into a complaint of fraud, which caused a loss of over USD 18 million to the government coffers, has been stalled by a minister, according to police sources.
The CCD commenced the investigation, several weeks ago, following a complaint against a Singaporean, of Sri Lankan origin, and a Sri Lankan, for using forged documents to cheat a Sri Lankan company out of Rs 35 million.
Investigators uncovered a customs fraud, amounting to USD 18 million using a Power Purchasing Agreement (PPA) between the Ceylon Electricity Board (CEB) and a Hongkong-based company. The Customs Department’s Compliance and Facilitation Division commenced a separate investigation.
The Customs investigation found that the suspects had deprived Sri Lanka of USD 18 million by using the PPA, which had been cancelled by the CEB. “As per the PPA, the V Power Holdings could import to Sri Lanka power generators, duty free, to supply 34 MW to the national gri, for a six-month period. As per the PPA, after six months the company is required to re-ship those generators and is also requested pay a 10 percent tax on revenue from the generators. That tax could have been around one million USD. They brought down 350 generators. The duty for the generators would have been around 14 million USD. The company obtained a duty waiver to the tune of around three million USD. However, the PPA had been cancelled by that time by the CEB because V Power Holdings failed to deliver 34 MW, within the stipulated one-month period,” a senior CCD officer said.
The company has to pay over 18 million USD to Sri Lanka. It did not re-export the generators. In addition, the suspects have also been charged with defrauding Rs 35 million from the Green Win Holdings Lanka Ltd., the local agent company of the Hong Kong-based Listed Company, V Power Holdings.
The CCD investigation has been halted due to political interference, sources said, adding that the suspects had approached a Cabinet minister.
Asked for comment, senior CEB officials said that there had been a PPA with V Power Holdings but it had been cancelled by the CEB. With the cancellation of the agreement, the company loses their rights for duty concessions, a top management level officer of the CEB told The Island.
Customs Media Spokesman and Deputy Director (Legal) Sudattha Silva said that the Compliance and Facilitation Division of the Department was conducting an investigation. He said he was not in a position to comment more as the investigation was in progress.
The V Power Holdings was accused of violating the Section 50 (A) (1) (a) (b) of the Customs Ordinance.
When contacted for comment, Chairman of Green Win Holdings Lanka Ltd, Vajira Wickramasinghe said. That there were two investigations into the aforementioned incidents.
“We signed the PPA with CEB as the Sri Lankan representative of the V Power Holdings of Hong Kong. The V Power Holdings’ Chief Commercial Officer sent a Singaporean of Lankan origin to work with us. Later, it was found that Singaporean with the help of a former director of our company, carried out the fraud. They have misused the canceled PPA to clear the consignment from the harbour. Now, the CCD says that they cannot find the Singaporean and the Lankan who have gone into hiding. I hope that the investigations will resume and the culprits will be caught so that justice will be done.”
News
Socialist Alliance expresses concern over GoSL’s growing military ties with US
The Socialist Alliance, comprising the Lanka Sama Samaja Party, the Communist Party of Sri Lanka, the Democratic Left Front and the Sri Lanka Mahajana Party, in a statement issued yesterday (02) strongly and unequivocally condemned the US and Israel for killing the Supreme Leader of Iran, Ayatollah Ali Khamenei, and the latest acts of military aggression carried out by those two countries against Teheran.
“These attacks represent a grave violation of international law, an assault on the sovereignty of a United Nations member state, and a threat for uncontrollable conflict, which may escalate into a third World War,” the Socialist Alliance said.
Text of the statement: ‘The Socialist Alliance is alarmed with the growing military contacts between Sri Lanka and United States in evolving geo-political developments in the context of middle – east war and beyond.
“The Socialist Alliance condemns strongly the National People’s Power (NPP) government’s deepening military cooperation with the United States. The recent transfers of US naval and aviation assets and operational integration into US-led commands represent a dangerous abandonment of the country’s longstanding non-aligned foreign policy. It may lead to Sri Lanka being involved in US President Trump’s illegal aggression against Iran.
“According to the Ministry of Defence the United States has now provided a total of four former US Coast Guard cutters and 10 TH-57 Sea Ranger (Bell 206) helicopters to the Sri Lanka Navy (SLN) and Sri Lanka Air Force (SLAF). These acquisitions have transformed Sri Lanka into one of the largest operators of former US Coast Guard vessels in the Indo-Pacific. While the government frames the transfers as enhancing humanitarian assistance and disaster relief capabilities, the vessels’ operational history and specifications are evidence of a darker purposes.
“The two high endurance cutters of the Hamilton class are offshore patrol vessels (OPVs) most suited for deep-sea surveillance and high-seas operations. They are not merely for coastal defense, the type being commonly deployed with US Navy carrier battle groups. They are designed for power projection and are being used to integrate Sri Lanka into U.S. Central Command (CENTCOM) operations in the Middle East.
The operational deployment of these assets has already begun. The Sri Lanka Navy has committed an OPV to the US-led “Operation Prosperity Guardian” in the Red Sea and Gulf of Aden, operating under Combined Task Force 153 (CTF 153). This task force falls under the Combined Maritime Forces (CMF), which is commanded by a US Navy Vice Admiral who simultaneously serves as Commander of U.S. Naval Forces Central Command (NAVCENT) and the US Fifth Fleet, headquartered in Manama, Bahrain.
“This means Sri Lankan naval officers and ships now operate directly under US-led command structures. It provides the US with a Navy that can operate within its command framework, freeing US assets for higher-end missions, effectively making our forces a subordinate component of the American war machine.
“In a significant escalation of this integration, Sri Lanka assumed command of Combined Task Force 154 (CTF 154) in January 2025. This multinational maritime training task force, operating under the US Fifth Fleet, is responsible for training personnel across the Middle East. This is not as a sign of national prestige, but a mechanism that gives the US-led coalition greater legitimacy and deepens Sri Lanka’s entanglement in American strategic objectives.
“This must also be seen in context of the recent signing of a Defence Memorandum of Understanding (MoU) under the State Partnership Programme (SPP) between the Sri Lankan Armed Forces and the Montana National Guard in November 2025, which is a pretext for embedding US military structures within Sri Lanka.
“This is not non-alignment. This is alignment. It is a complete subservience to the US Indo-Pacific strategy, making a mockery of the principles of sovereignty and peaceful coexistence that once defined our foreign policy.
“This alignment with the US poses an immediate danger, Sri Lanka risks being dragged into the illegal US–Israeli aggression against Iran, our long-standing friend.
“The Socialist Alliance calls for,
1. The immediate disassociation of the Government of Sri Lanka and the Armed Forces from the illegal US-Israeli aggression against Iran.
2. The immediate cessation of all joint military operations with US forces, including the withdrawal of Sri Lankan personnel from US-led commands in Bahrain and the Red Sea.
3. A full public disclosure of all agreements, including the India-Sri Lanka defence MoU and the recent US State Partnership Programme agreement, whose contents remain secret.
4. A parliamentary inquiry into whether these military pacts will lead to a full Status of Forces Agreement (SOFA), potentially granting US forces access to Sri Lankan ports, airports, and military infrastructure.
5. A return to a genuine non-aligned foreign policy that serves the interests of the Sri Lankan people, not the geopolitical ambitions of foreign powers.
“The NPP government was elected on a platform of change, yet it is presiding over the most significant erosion of our sovereignty in decades. We call upon all anti-imperialist, patriotic, and democratic forces to unite in opposition to this drift toward war and the surrender of our national independence.”
News
FSP proposes self-governing regions, bicameral legislature to address national issue
Frontline Socialist Party (FSP) Propaganda Secretary Duminda Nagamuwa has said that establishment of self- governing regions, bicameral legislature consisting of two Houses and recognition of upcountry Tamils as Sri Lankans would be necessary to solve the national issue. Nagamuwa declared that the FSP was ready to spearhead the fight to achieve those objectives.
Nagamuwa, a senior member of the breakaway faction of the JVP, said so at the fourth annual convention of the party held at the Sugathadasa Indoor stadium on Sunday (01). Nagamuwa stressed that a bicameral legislature was necessary to prevent the passage of laws targeting a particular community.
Alleging that the JVP had disregarded the FSP’s advice not to pursue UNP leader Ranil Wickremesinghe’s strategy, Nagamuwa emphasised that the national problem couldn’t be resolved under the present system.
Declaring that daunting challenges couldn’t be addressed by pursuing neo-liberal policies, the FSPer reiterated their commitment to, what he called, a people-centric economic agenda.
At the onset of his speech, Nagamuwa said that the FSP launched political activities, under extremely difficult circumstances, more than one and half decades ago. Referring to the abduction and the disappearance of Lalith Kumar Weeraraja and Kugan Muruganandan, in Jaffna, on Dec, 9, 2011, Nagamuwa said that they wouldn’t give up their struggle, regardless of the continuing threats.
Commenting on its role in the Aragalaya protest that forced President Gotabaya Rajapaksa out of office, in July 2022, Nagamuwa said that the FSP joined the people at a time some declared their inability to participate in a leaderless campaign. Nagamuwa was referring to the JVP’s initial reaction to the protest campaign. According to Nagamuwa, Ranil Wickremesinghe, having received the presidency through illegal means, sought to proscribe the FSP as he resented their role in Aragalaya.
Nagamuwa also found fault with the JVP for backing Maithripala Sirisena’s candidature at the 2015 presidential election. The ex-JVPer said that his former party simply joined the group that declared that Sirisena’s victory would pave the way for the abolition of the executive presidency. The FSP Propaganda Secretary accused Anura Kumara Dissanayake of following Wickremesinghe’s harmful IMF policy that may cause significant damage to the EPF and ETF funds.
The FSP also attacked the JVP-led NPP government over the ongoing moves to introduce a new anti-terrorism law, in place of the Prevention of Terrorism Act (PTA). That move was meant to suppress democratic rights of the people and right to dissent, Nagamuwa said, while questioning, what he called, the incumbent government’s undisclosed agreements with the US and India. Nagamuwa also pointed out that those who campaigned on an anti-corruption platform were now struggling to cope up with such accusations regarding the coal procurement deal.
Nagamuwa said that either the government should take tangible measures against corruption or the crooks will take hold of the current dispensation. Anti-corruption actions wouldn’t be on political platform at any future election, Nagamuwa predicted.
Nagamuwa said that the NPP had been fragmented and it was only a question of time the current dispensation faced public protests over its policies, particularly giving in to IMF demands and India. The SJB’s Sajith Premadasa and SLPP’s Namal Rajapaksa couldn’t fill the political vacuum caused by the disintegration of the NPP, Nagamuwa said that their move was to empower the people.
Nagamuwa said that those who propagated racism to grab power couldn’t succeed again. According to him such projects couldn’t achieve political objectives, Nagamuwa said while referring to several incidents, including the burning of the Jaffna library and violence in Darga town.
By Shamindra Ferdinando
News
GMOA decides to intensify its trade union struggle
The Government Medical Officers’ Association (GMOA) has called for the immediate establishment of a dedicated service category, titled the “Sri Lanka Medical Service,” to resolve the long-standing crisis within the country’s health sector.
In a media release, following a crucial General Committee meeting, the Association emphasised that while strengthening the free health service is a primary responsibility of any government, the current administration is deliberately evading this duty.
The GMOA alleged that the government has violated written agreements previously reached to address the grievances of medical professionals and the hospital system, leaving them with no choice but to resort to trade union action.
The primary demand of the Association is the granting of Cabinet approval for the proposed “Sri Lanka Medical Service,” a draft of which has already been prepared with the consensus of all relevant stakeholders. In addition to this structural change, the GMOA is pushing for several financial and administrative updates, including the revision of the Disturbance, Availability, and Transport (DAT) allowance and the stabilisation of the extra duty allowance. They also demand solutions for transport issues, in accordance with Circular 22/99, the resolution of research and postgraduate study-related problems, and an urgent update of the approved medical cadre, within the health system. The Association has called for immediate discussions with the Ministry of Finance to resolve these matters within a specific timeframe.
The Association pointed out that despite providing ample time for the Minister of Health, and other responsible parties, to seek solutions through dialogue, the lack of sincere intervention has led to seven ongoing island-wide professional actions. These measures include refusing to issue prescriptions for medicines, equipment, or laboratory tests that are unavailable within the hospital, and withdrawing from voluntary health camps organised by political groups. Furthermore, doctors have ceased being deployed to new wards or units opened without an approved cadre and are refraining from examining patients where adequate facilities and support staff are unavailable to ensure safety and privacy. Specialist doctors have also withdrawn from “covering-up” duties, while official community health data, under the supervision of Medical Officers of Health, is being withheld from the Ministry.
The Association expressed its strong disapproval of the government’s “arrogant” conduct, accusing officials of using mainstream and social media to level false allegations and insults against doctors, instead of engaging in productive discussions. This behaviour was a central topic of discussion during the General Committee meeting held on 25 February, 2026.
Consequently, the GMOA has unanimously decided to intensify its professional struggle, which includes the official withdrawal from the “Arogya” project, starting Monday, March 2, 2026. They characterised “Arogya” as a political showpiece, disguised as a primary healthcare reform, claiming it misuses public tax money and Ministry resources without clear objectives or transparency.
To address the underlying issues in primary healthcare, the GMOA has appointed a special working committee to study existing facility shortages and recommend appropriate service standards. This Committee is expected to submit its report to the Executive Committee within two weeks to determine future steps regarding patient care. While reaffirming its readiness to resolve these grievances through direct discussions with the President and the Health Minister, the GMOA warned that it is prepared to launch a broader, integrated campaign with all health sector stakeholders if the government continues to neglect its responsibility toward the free health service.
By S.K. Samaranayake
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