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SPC incurs Rs.190 mn. loss due to defective medicines

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The State Pharmaceuticals Corporation (SPC) of Sri Lanka has suffered a loss of over Rs.190 million in 2020 and 2021 due to quality failure, expiration and damage of some of the medicinal drugs purchased, a report issued by the National Audit Office said.

According to the report, a stock of medicinal drugs worth more than Rs.210 million from the medicinal drugs purchased as of January 1, 2021 was either expired or damaged.

The Audit Office said that out of the medicinal drugs purchased by the SPC in 2021, a stock worth nearly Rs.130 million has been identified as defective, expired and damaged.

It said that more than Rs.20 million is yet to be collected from the suppliers for a stock of medicines worth over Rs.40 million which were identified as defective in 2020 and 2021.

In the meantime, the SPC had kept 28 containers related to 28 indents imported in 2021 and 2022 in a private warehouse for six months from August 20, 2021 to February 21, 2022. The SPC has paid more than Rs.48.2 million for the warehouse, but this additional cost incurred by the corporation had not been reimbursed from the Medical Supplies Division.

The audit report showed that the SPC had to store these stocks of medicines in a private warehouse due to the lack of storage facilities in the Medical Supplies Division’s warehouse complex.

This audit report was attached in the 2021 Annual Report of the SPC which was recently submitted to Parliament.

(Newsradio)

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Court orders Randeniya Distilleries to pay Rs. 1.35B in Evaded Taxes 

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In a landmark ruling, Colombo Additional Magistrate Pavithra Sanjeewani today ordered Randeniya Distilleries Company to pay Rs. 1.35 billion in evaded taxes, including income tax, VAT, and Nation Building Tax, for the period between 2012 and 2015.  

The case, filed by the Commissioner General of Inland Revenue, alleges the Kadawatha-based company deliberately avoided tax payments during these years. Directors Piumi Wijewikrama, Sarath Kumara Wijewikrama, Buddhika Wijewikrama, and another female director were also named as respondents in the lawsuit.  

After hearings before Additional Magistrate Bandara Eelanga Singha, the court ruled the distillery must settle the outstanding amount with the government. The judgment marks a significant enforcement action in Sri Lanka’s ongoing efforts to combat corporate tax evasion.  

The case, initiated last year, highlights the Inland Revenue Department’s strengthened measures to recover unpaid taxes from businesses. Legal experts suggest this ruling may set a precedent for similar tax evasion cases pending before Sri Lankan courts.  

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Police freeze Rs. 100M assets of alleged drug kingpin in Embilipitiya  

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The Illegal Assets Investigation Division of Sri Lanka Police today suspended properties worth approximately Rs. 100 million belonging to J.A. Jayasinghe, alias ‘Bathala Heenmahattaya’, who authorities believe is the country’s largest cannabis trafficker.  

The seized assets include a commercial building housing a pharmacy opposite Embilipitiya General Hospital and a hotel facing Chandrika Lake. Investigators revealed that these properties were registered under the suspect’s wife’s name, with the couple unable to provide legitimate sources for the purchase funds.  

The court has ordered a seven-day freeze on the properties pending further investigations. Jayasinghe, arrested in connection with the asset seizure, will be produced before the Wellawaya Magistrate tomorrow (29).  

Security forces describe the suspect as a key figure in Sri Lanka’s illicit drug trade, with this seizure marking a significant blow to organized narcotics operations in the region.  

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SpaceX’s Starship spins out of control after flying past points of previous failures

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SpaceX’s Starship rocket roared into space from Texas on Tuesday but spun out of control about halfway through its flight without achieving some of its most important testing goals, bringing fresh engineering hurdles to CEO Elon Musk’s increasingly turbulent Mars rocket program.

The 400-foot tall (122 meter) Starship rocket system, the core of Musk’s goal of sending humans to Mars, lifted off from SpaceX’s Starbase, Texas, launch site, flying beyond the point of two previous explosive attempts earlier this year that sent debris streaking over Caribbean islands and forced dozens of airliners to divert course.

For the latest launch, the ninth full test mission of Starship since the first attempt in April 2023, the upper-stage cruise vessel was lofted to space atop a previously flown booster – a first such demonstration of the booster’s reusability.

But SpaceX lost contact with the 232-foot lower-stage booster during its descent before it plunged into the sea, rather than making the controlled splashdown the company had planned.

Starship, meanwhile, continued into suborbital space but began to spin uncontrollably roughly 30 minutes into the mission. The errant spiraling came after SpaceX canceled a plan to deploy eight mock Starlink satellites into space – the rocket’s “Pez” candy dispenser-like mechanism failed to work as designed.

“Not looking great with a lot of our on-orbit objectives for today,” SpaceX broadcaster Dan Huot said on a company livestream.

Musk was scheduled to deliver an update on his space exploration ambitions in a speech from Starbase following the test flight, billed as a livestream presentation about “The Road to Making Life Multiplanetary.” Hours later, he had yet to give the speech and there was no sign that he intended to do so.

In a post on X, Musk touted Starship’s scheduled shutdown of an engine in space, a step previous test flights achieved last year. He said a leak on Starship’s primary fuel tank led to its loss of control.

“Lot of good data to review,” he said. “Launch cadence for next 3 flights will be faster, at approximately 1 every 3 to 4 weeks.”

SpaceX has said the Starship models that have flown this year bear significant design upgrades from previous prototypes, as thousands of company employees work to build a multi-purpose rocket capable of putting massive batches of satellites in space, carrying humans back to the moon and ultimately ferrying astronauts to Mars.

Risk-Tolerant

The recent setbacks indicate SpaceX is struggling to overcome a complicated chapter of Starship’s multibillion-dollar development. But the company’s engineering culture, widely considered more risk-tolerant than many of the aerospace industry’s more established players, is built on a flight-testing strategy that pushes spacecraft to the point of failure, then fine-tunes improvements through frequent repetition.

Starship’s planned trajectory for Tuesday included a nearly full orbit around Earth for a controlled splashdown in the Indian Ocean to test new designs of its heat shield tiles and revised flaps for steering its blazing re-entry and descent through Earth’s atmosphere.

But its early demise, appearing as a fireball streaking eastward through the night sky over southern Africa, puts another pause in Musk’s speedy development goals for a rocket bound to play a central role in the U.S. space program.

NASA plans to use the rocket to land humans on the moon in 2027, though that moon program faces turmoil amid Musk’s Mars-focused influence over U.S. President Donald Trump’s administration.
Mishap Probe

Federal regulators had granted SpaceX a license for Starship’s latest flight attempt four days ago, capping a mishap investigation that had grounded Starship for nearly two months.

The last two test flights – in January and March – were cut short moments after liftoff as the vehicles blew to pieces on ascent, raining debris over parts of the Caribbean and disrupting scores of commercial airline flights in the region.

The Federal Aviation Administration expanded debris hazard zones around the ascent path for Tuesday’s launch.

The previous back-to-back failures occurred in early test-flight phases that SpaceX had easily achieved before, in a striking setback to a program that Musk, the billionaire entrepreneur who founded the rocket company in 2002, had sought to accelerate this year.

Musk, the world’s wealthiest individual and a key supporter of U.S. President Donald Trump, was especially eager for a success after vowing in recent days to refocus his attention on his various business ventures, including SpaceX, following a tumultuous foray into national politics and his attempts at cutting government bureaucracy.

Closer to home, Musk also sees Starship as eventually replacing the SpaceX Falcon 9 rocket as the workhorse in the company’s commercial launch business, which already lofts most of the world’s satellites and other payloads to low-Earth orbit.

Source: Reuters

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