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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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NPP wins Tangalle Urban Council in first LG election results

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The Election Commission has released the first official results from the 2025 Local Government polls, with the National People’s Power (NPP) claiming victory in the Tangalle Urban Council, Hambantota District.  

Tangalle Urban Council Results
National People’s Power (NPP): 2,260 votes (9 seats)  
Samagi Jana Balawegaya (SJB): 1,397 votes (5 seats)  
Sri Lanka Podujana Peramuna (SLPP): 795 votes (3 seats)  
United National Party (UNP):  265 votes (1 seat)  
Sarvajana Balaya (SB): 177 votes (1 seat)  

The JVP-led NPP’s strong showing in this southern urban council marks a significant shift in the region traditionally dominated by the SLPP. 

Political analysts note this could signal changing voter sentiments amid economic pressures.  

Voting concluded at 4:00 p.m. today after a largely peaceful process. 

Counting continues for 338 other local bodies, with results expected through the night.  

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LG polls : voting concludes peacefully

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Voting of the 2025 Local Government elections concluded at 4.00 pm today (May 06).

The Election Commission has stated that the voting process was peaceful overall, with no incidents of violence reported during the polling period.

Voting ended with varying turnout in various districts as most districts have reported turnout of about 50% or less as at 3.00 pm.

Meanwhile, police say that special security arrangements are continued even after voting is concluded.

Police Media Spokesperson, SSP Buddhika Manatunga, has urged the public to remain calm and peaceful during the post-election period as well.

A total of 75,589 candidates are contesting from various political parties and independent groups at this year’s Local Government election.

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World Bank group President to visit SL tomorrow

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World Bank group President – Ajay Banga will visit Sri Lanka tomorrow (May 07).

It is the first visit by the head of the multilateral lender in 20 years, following an invitation extended by President Anura Kumara Disanayake last year.

“The visit comes at a critical moment, as Sri Lanka continues its path toward economic recovery and seeks to build a more resilient, inclusive, and private sector-led future,” the World Bank says.

Banga will meet President Dissanayake, Prime Minister Harini Amarasuriya, and senior government and private sector leaders.

“These discussions will center on how Sri Lanka can overcome current challenges and seize new opportunities as it continues to recover economically and socially,” the World Bank added.

The World Bank Group currently maintains a portfolio of projects in Sri Lanka valued at $2.2 billion, encompassing both public and private sector investments. While recent reports have acknowledged Sri Lanka’s progress, the Bank continues to emphasize the need for poverty reduction and reform continuity to ensure sustained recovery.

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