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Dues from companies involved in sugar scam, still not collected!

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The Committee on Public Finance, led by Dr. Harsha de Silva expressed its’ deep dissatisfaction with the Ministry of Finance and Inland Revenue Department’s failure to collect foregone taxes from major corporations implicated in the Sugar scam, as outlined in the forensic report by the Auditor General.

During the session, the Committee underscored its disappointment with the lack of action taken by relevant authorities despite a 99.5% reduction in the Special Commodity Levy on sugar imports, as stipulated in Gazette 2197/12 dated October 13, 2020. The Committee emphasized that no accountability measures have been implemented, allowing certain large corporations to unfairly benefit from the reduced tax rate at the expense of consumers.

Report within a week

Specifically, the Committee inquired about the extent of tax collection from the implicated companies and directed the Inland Revenue Department to submit a comprehensive report within one week. The Committee aims to gain clarity on the current status of tax collection related to the Sugar scam.

Further addressing the issue, the Committee highlighted its concern over the proposed reversal of the tax policy, which aims to increase the Special Commodity Levy on sugar from LKR 0.25/Kg back to LKR 50/Kg. The Ministry of Finance’s intention to collect LKR 30 billion from the average Sri Lankan while allowing implicated corporations to evade responsibility was strongly criticized. The Committee emphasized the need to hold wrongdoers accountable before imposing additional financial burdens on the general public.

Additionally, the Committee engaged with officials from the Consumer Affairs Authority (CAA) to address concerns about the maximum retail price (MRP) not being adhered to by distributors. CAA officials revealed that despite conducting 342 raids and imposing fines on micro, small, and medium businesses exceeding the MRP, challenges persist in penalizing wholesale distributors due to the absence of a maximum wholesale price in the gazette.

The Committee directed the CAA to conduct a comprehensive study on the imposition of MRP, considering factors such as the Special Commodity Levy and importer prices. Furthermore, the Committee requested the CAA to propose a mechanism to address the ongoing issue of wholesale distributors selling above the MRP and engaging in fraudulent activities.

Additionally, the Committee delved into the implications of the Order under Section 22 of the Foreign Exchange Act No. 12 of 2017. This order outlines provisions designed to regulate the movement of funds and foreign exchange transactions for individuals and companies in Sri Lanka, with the overarching objective of sustaining economic stability and effectively managing foreign exchange reserves.

The migration allowance, as stipulated in the order, remains at 50,000 USD, with a reduced allowance of 20,000 USD for temporary visa holders. Officials from the Central Bank apprised the Committee of amendments to the previous gazette, including provisions allowing Sri Lankan individuals to purchase share options in their own overseas companies. Additionally, individuals are now permitted to withdraw 200,000 USD for investment in listed companies and 100,000 USD for unlisted companies.

While acknowledging these changes, the Chairman of the Committee on Public Finance (COPF) raised concerns about the feasibility of maintaining such a low migration allowance. He questioned the officials on the prevalence of individuals resorting to unofficial channels, such as Hawala and cryptocurrencies, due to these restrictions. Furthermore, the Chairman inquired whether the officials were aware of instances where Sri Lankans were converting their rupees to USDT (cryptocurrency) through various platforms such as Binance, and subsequently transferring funds abroad or investing in cryptocurrencies. Notably, cryptocurrencies were recently recognized as an asset class by the US Securities and Exchange Commission, with the approval of Exchange-traded funds just last week.

In response to the Chairman’s queries, officials present were unaware of such occurrences and committed to conducting a thorough study into the matter. They emphasized that exchanging rupees into dollars outside formal channels is not permitted, and they will investigate the potential misuse of unofficial avenues for currency exchange and investment.

Members of Parliament – Chandima Weerakkody, Madhura Withanage, Duminda Dissanayake, Sumith Udukumbura were present at the committee meeting held.

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AG seeks CID probe into social media smear campaign against his staff

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The Criminal Investigation Department (CID) has opened a probe following a complaint by Attorney General Parinda Ranasinghe that his staff have been unduly targeted by false allegations on social media.

The AG’s instruction to the CID came after several of his staff complained to him over the allegation on social media.

Particularly targeted are senior AG’s Department officials awaiting promotions, sources said.

In one of the posts, a senior officer was accused of being supportive of granting bail to Thamil Makkal Viduthal Puligal (TMVP) leader Sivanesathurai Chandrakanthan, alias Pillaiyan, when his fundamental rights application over his arrest was taken up. During the hearing of the FR case, the matter of bail was not even considered, the sources said.

Another allegation was that in a case related to the suspended Police Chief Deshabandu Tennakoon, the AG prevented a senior officer from representing the department and instead sent a junior officer. However, on the particular day, the senior officer was indisposed, the sources said.

These allegations surface as the AG’s Department has filed more than 600 new indictments in High Courts so far this year, while the Bribery Commission has also referred several bribery and corruption cases to the AG for prosecution.

(sundaytimes.lk)
(This story, originally published by sundaytimes.lk has not been edited by SLM staff)

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19-yr. old dies after falling from elevator

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A 19-year-old youth has died after falling from a service elevator at a hotel in the Pannai area, in the Jaffna Police Division.

According to the police, the incident had occurred last night (June 21) and the deceased has been identified as a resident of Nirveli, Jaffna.

According to investigations, the youth was employed at the hotel and had been using the service elevator -intended for transporting goods.

Further investigations are underway.

This incident follows a similar case recently reported from a hotel in Moratuwa last week.

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19-yr.-old dies after hotel elevator collapses

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Deputy Foreign Minister addresses 6th CSACF in Kunming

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Deputy Minister of Foreign Affairs and Foreign Employment Arun Hemachandra participated at the 9th China-South Asia Exposition and the 6th China-South Asia Cooperation Forum (CSACF), held from 18 to 21 June 2025 in Kunming, Yunnan Province, China. This year’s Exposition held particular significance for Sri Lanka as it was featured as the Theme Country of the exposition.

Addressing the opening ceremony of the 6th China-South Asia Cooperation Forum, Deputy Minister Hemachandra emphasized the importance of regional unity and shared progress, a crucial factor for South Asia, with its demographic strength and strategic location, increasing share of global trade, and cultural and intellectual assets. He invited investors and partners from China and South Asia to explore opportunities in key sectors, including infrastructure, technology, green energy, agriculture, tourism and manufacturing.  

On 20 June 2025, the Deputy Minister held bilateral discussions with the Vice Governor of Yunnan Province, where future collaboration in areas such as processed food, apparel, agriculture, and tourism were explored. He expressed Sri Lanka’s interest in technical assistance and knowledge exchange, including opportunities for Sri Lankan entrepreneurs to gain exposure to Yunnan’s expertise in the cut flower industry, a sector in which the province is globally recognized as the ‘Kingdom of Flora and Fauna’.

The Sri Lanka Theme Pavilion was officially inaugurated on 19 June 2025 at the Kunming Dianchi International Convention and Exhibition Center by Minister of Trade, Commerce, Food Security and Cooperative Development Wasantha Samarasinghe. Minister Samarasinghe also delivered the keynote address at the opening ceremony.  

Sri Lanka’s presence at the Exposition showcased a vibrant display of its economic strengths and cultural heritage. A wide range of high-value exports and services were exhibited including gems and jewellery, Ceylon Tea, coconut-based products and fiber, spices, organic and wellness products, handicrafts, batiks, confectionery, and processed foods. Sri Lanka’s participation aimed to strengthen trade ties, enhance export potential, and increase market access for Sri Lankan businesses in China and South Asia.

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