News

CoPF urges tax on companies earning super gains due to ‘Midnight Gazette’

Published

2 years ago

November 8, 2023

editor

The Committee on Public Finance (CoPF) issued a directive to Ministry of Finance officials, instructing them to impose income tax on companies that exploited the ‘midnight gazette’ to make significant profits, which CoPF refers to as ‘super gains,’ in order to compensate for lost revenue.

The Committee also tasked officials with developing and implementing mechanisms to collect these taxes or providing detailed explanations if they are unable to do so, along with proposing remedial actions to prevent such incidents in the future.

The seriousness of the situation became evident when CoPF obtained essential data related to sugar imports for the past three months from the Department of Customs. CoPF questioned Ministry of Finance officials about the suspicious timing of this tax increase and the surge in sugar imports by certain companies just before the tax hike.

In response, Ministry of Finance officials stated that the tax increase was part of the fiscal-based revenue consolidation program linked to an IMF initiative. Furthermore, they highlighted that the sudden increase in sugar imports was a seasonal occurrence. In light of these claims, the Committee insisted on a comprehensive comparative analysis of previous years to verify these assertions.

The Committee sounded the alarm about specific companies importing unusually large quantities of sugar without concrete evidence supporting the necessity for such massive imports. For example, a company that typically imported 2,000 metric tons of sugar monthly inexplicably imported 10,000 metric tons in October, just before the tax increase, reaping substantial gains as the tax jumped 200-fold from 25 cents to 50 rupees.

Chairman Dr. Harsha de Silva stressed the importance of ending the use of ‘midnight gazettes’ related to special commodity levies. These practices provide the Minister of Finance with unchecked authority to change tax rates or grant tax exemptions to specific companies. This concern aligns with the recommendations made by the IMF in their Governance Diagnostic Report, urging Sri Lanka to eliminate ‘midnight gazettes’ due to their potential for fostering corruption.

State Minister Dr.Suren Raghavan as well as Members of Parliament M. A. Sumanthiran, Patali Champika Ranawaka, Nimal Lanza and Isuru Dodangoda, were present at the Committee meeting held.

News

Japan grants US$ 2.5 mn. to SL to strengthen anti-corruption mechanisms

Published

2 hours ago

July 1, 2025

editor

The Government of Japan has granted USD 2.5 million to Sri Lanka to strengthen anti-corruption mechanisms under a 3-year project for Promoting Prosecution of Corrupt Practices through the Establishment of Anti-corruption Mechanism.

Japanese ambassador in Sri Lanka – Mr. Akio Isomata and UNDP resident representative in Sri Lanka – Ms. Azusa Kubota, in the presence of Justice Minister – Harshana Nanayakkara, launched ‘The Project for Promoting Prosecution of Corrupt Practices through the Establishment of Anti-Corruption Mechanism’

The three year initiative is supported by the Government of Japan and implemented by the UNDP Sri Lanka, working in close collaboration with the (CIABOC) and the Ministry of Justice.

The project aims to promote transparency, accountability and integrity in governance and business practices through effective and institutionalised preventive mechanisms in the public and investment promotion sectors, strengthen institutions to enhance corruption related investigative processes, improve coordination with stakeholders and ensure quality of prosecutions, empower citizens to effectively mobilise against corruption and enhance social accountability.

The project also seeks to engage and empower youth, children and journalists to actively contribute to the fight against corruption and promote a culture of integrity.

News

3 ex-DMT officials including ex-commissioner, remanded

Published

2 hours ago

July 1, 2025

editor

Former Commissioner General Nishantha Weerasingha and two other former officials of the Department of Motor Traffic (DMT) have been arrested by the Commission to Investigate Allegations of Bribery or Corruption (CIABOC).

The arrests were made as part of an investigation into vehicles that were illegally registered with the Department of Motor Traffic without receiving proper clearance from Sri Lanka Customs, CIABOC said in a statement.

According to CIABOC, former Commissioner General Nishantha Weerasinghe has been arrested for granting approval to issue a number plate for a jeep.

Additionally, a former Assistant Director of Information Technology at the department and a clerk have also been taken into custody for facilitating the illegal data entry and executing it.

The suspects were produced before the Colombo Magistrate’s Court and were ordered to be remanded until July 08.

News

Ex-Immigration Controller pleads guilty

Published

5 hours ago

July 1, 2025

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Controller of Immigration and Emigration – Harsha Illukpitiya, today (July 01) unconditionally pleaded guilty before the Supreme Court in a case related to contempt of court.

The charge stemmed from his failure to comply with a court order related to the e-visa issuance process.

The Supreme Court announced that sentencing will take place on July 24.