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.”
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Sun directly overhead Dehiwala, Maharagama, Pannipitiya, Padukka, Eheliyagoda, Maskeliya, Siyambalanduwa and Pottuvil at about 12:13 noon. today (07th)
On the apparent northward relative motion of the sun, it is going to be directly over the latitudes of Sri Lanka during 05th to 15th of April in this year.
The nearest areas of Sri Lanka over which the sun is overhead today (07th) are Dehiwala, Maharagama, Pannipitiya, Padukka, Eheliyagoda, Maskeliya, Siyambalanduwa and Pottuvil at about 12:13 noon.
Latest News
Heat Index at Caution Level in the Northern, North-central, North-western and Eastern provinces and Monaragala and Hambantota districts.
Warm Weather Advisory Issued by the Natural Hazards Early Warning Centre Issued at 3.30 p.m. on 06 April 2026, valid for 07 April 2026.
The Heat index, the temperature felt on human body is likely to increase up to ‘Caution level’ at some places in the Northern, North-central, North-western and Eastern provinces and Monaragala and Hambantota 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.
News
SJB: Litro, Laugfs making a killing by selling old stocks at inflated prices
… as Lakvijaya falters, power plants need over 2 mn litres of fuel daily
By Shamindra Ferdinando
The SJB yesterday (06) said that the NPP government owed an explanation as to why Litro Gas Lanka Limited and Laugfs Gas PLC were allowed to increase the prices of old stocks of domestic gas. Litro and Laugfs have increased the prices of 12.5 kg cylinder by Rs. 775 to Rs. 4,765 and by Rs. 1,070, to Rs. 5,700, respectively.
Convener of the Samagi United Trade Union Force (SUTUF) and the Samagi Joint Trade Union Alliance Ananda Palitha said they were aware of the state-owned gas supplier Litro and the private sector enterprise making a killing at the expense of consumers.
Acknowledging that gas and fuel prices had to be increased in view of the disruptions to the regular supply route through Hormuz Strait, the former petroleum sector worker emphasised it wouldn’t be fair, under any circumstances, to apply a new pricing formula to old stocks.
Taking advantage of the new West Asia war, the government (CPC) and three foreign private suppliers, namely Lanka IOC, Sinopec and R.M. Parks, increased prices of old fuel stocks, Palitha alleged, adding that his accusations, previously reported in the front-page of The Island, haven’t been disputed.
Responding to our queries, Palitha pointed out that Sri Lanka experienced gas supply disruption even just before the eruption of the Iran war.
Warning that further electricity tariff increases were around the corner due to failure on the part of the country’s only coal-fired power plant Lakvijaya to produce the required electricity, Palitha blamed the developing crisis on the use of low-quality coal for power generation.
Referring to recent media reports of fuel powered power plants needing 800,000 litres, daily, to meet the shortfall due to the crisis at Lakvijaya, Palitha said that the actual requirement was much more. Kelanitissa Combined cycle power plant alone required 1.3 mn litres of diesel daily, Palitha said, alleging the country was paying a very heavy price for corruption and mismanagement by the current dispensation.
According to Palitha Kerawalapitiya (Yugadanavi) Combined Cycle Power Plant required 750,000 litres of black oil/furnace oil. Together, those two power plants, namely Kelanitissa and Yugadanavi, required over 2 mn litres per day, the trade unionist activist said, warning the government of frightening economic consequences.
Having explained the requirements of other power stations in operation, Palitha said that the situation was so bad that the CEB, about three days back, began buying fuel worth Rs 1.7 bn from the Ceylon Petroleum Corporation on credit. Responding to another query, Palitha said that though the Iran war was having a major impact here, the NPP should accept responsibility for the corrupt coal deal and horrendous mismanagement of the power sector.
The government sought to downplay the crisis, claiming that Sri Lanka received Indian and Chinese support to meet its energy requirements, Palitha said. However, foreign powers were exploiting the situation here to advance their agendas, Palitha added, urging the government to come out clean.
India was increasing its hold on Sri Lanka, the trade union activist said, noting that Sri Lanka had recently declared its intention to develop a section of the Trincomalee oil tank farm together with India. According to Palitha, Indian Prime Minister Narendra Modi himself had asked President Anura Kumara Dissanayake to fast-track the project.
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