2024-01-18
News Categories : Committee News
The Committee on Public Finance, led by Hon. (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.
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 Hon. Chandima Weerakkody, Hon. Madhura Withanage, Hon. Duminda Dissanayake, Hon. Sumith Udukumbura were present at the Committee meeting held.
2025-03-24
The actions taken by the Department of Motor Traffic regarding the 25 audit observations as per the recommendations of the previous COPA are unacceptable. Conduct a formal investigation again by appointing an independent team – COPA recommends. The government incurs a loss of 6.2 million due to the Department of Motor Traffic fraudulently issuing vehicle registration certificates for unused blank numbers –COPA disclose A loss of Rs. 122 million due to registration of other vehicles with cancelled foreign diplomatic vehicle numbers – Auditor General Due to the failure of charging the prescribed fees for the registration of 296 motorcycles falling under the engine capacity category of 201 to 450, the government has incurred a loss of Rs. 78.15 million. Additionally, it was disclosed at the Committee on Public Accounts (COPA) that 3,088 motorcycles had been registered without Cabinet approval and without the necessary legal documentation required for registration. This matter was discussed during a recent meeting of the Committee on Public Accounts (COPA), chaired by Hon. Member of Parliament Aravinda Senaratne, held on the 21st of March at Parliament. The discussion focused on the Auditor General's reports for the years 2020, 2021, 2022, and 2023 pertaining to the Department of Motor Traffic and its current performance. Although the Department of Motor Traffic had been summoned previously before the Committee on 10.03.2025 to discuss the concerns related to it, it was sent back due to a lack of proper preparation. Furthermore, the Committee on Public Accounts also inquired into the implementation of the recommendations issued during the COPA meetings held in 2019. A detailed discussion took place regarding 25 points presented by the Auditor General concerning illegal vehicle registrations that had occurred before the integration of the Sri Lanka Customs computer system. Investigations conducted on this matter and the disciplinary actions taken against the responsible officials by the Department of Motor Traffic were also reviewed. During this discussion, the committee expressed strong disapproval of the department’s failure to take any disciplinary action against the relevant officials. It was emphasized that the reports submitted in this regard were entirely unsatisfactory. As a result, the Chairman recommended that immediate disciplinary measures be taken and that an independent team of officials be appointed to conduct the necessary investigations. COPA also paid attention to fraudulent vehicle registration certificates issued by incorporating the engine and chassis numbers of illegally imported vehicles into pre-existing registered vehicle numbers. It was revealed that this had resulted in a loss of Rs. 1.2 billion to the government. Additionally, the committee examined the fraudulent issuance of vehicle registration certificates for unused vacant registration numbers by the Department of Motor Traffic, which had caused a loss of Rs. 6.2 million to the government. Moreover, the misuse of diplomatic vehicle registration numbers to register other vehicles had led to a financial loss of Rs. 122 million. The Auditor General emphasized the importance of making the public aware of these matters. Following an inquiry into the corruption, fraud, and irregularities that have occurred within the Department of Motor Traffic, the committee recommended that disciplinary actions be taken against all responsible officials and that the progress of these actions be reviewed monthly. It was also recommended that the relevant legal enforcement authorities take necessary steps to implement the law regarding any criminal activities that had taken place. The meeting was attended by committee members, including Hon. Deputy Ministers Major General (Retd.) Aruna Jayasekera, Sugath Tilakaratne, Sundaralingam Pradeep, Nalin Hewage and Hon. Members of Parliament, J.C. Alawathuwala, Rohitha Abeygunawardena, Hector Appuhami, Kaveendiran Kodiswaran, Manjula Suraveera Arachchi, Attorney-at-Law Sagarika Athawuda, Oshani Umanga, Ruwanthalaka Jayakody, Susanta Kumara Navaratne, Chandana Suriyaarachchi, (Dr.) Janaka Senaratne, Chanaka Madugoda, T.K. Jayasundara, Dinindu Saman, and Lal Premanath, along with several government officials.
2025-03-24
The Committee on High Posts, which met in Parliament recently (Mar. 21), has approved the nominations to appoint two Ambassadors and a High Commissioner. The Committee also approved the nomination to appoint the Permanent Representative of Sri Lanka to the United Nations in New York, United States of AmericaAccordingly, the nominations of Mr. Ratnayake Mudiyanselage Mahinda Dasa Ratnayake, to be appointed as the Ambassador of Sri Lanka to the Republic of Cuba and Professor Pivithuru Janak Kumarasinghe, to be appointed as the Ambassador of Sri Lanka to Japan were approved by the Committee on High Posts.The nomination of Mr. Senadheera Dumunnage Nimal Upali Senadheera, to be appointed as the High Commissioner of Sri Lanka to the United Kingdom of Great Britain and Northern Ireland was also approved by the Committee on High Posts.Furthermore, the Committee on High Posts approved the nomination of former Chief Justice Jayantha Chandrasiri Jayasuriya P.C to be appointed as the Permanent Representative of Sri Lanka to the United Nations in New York, the United States of America.Committee on High Posts which met under the patronage of the Hon. Prime Minister Dr. Harini Amarasuriya, was attended by Hon. Bimal Rathnayake, Hon. Kumara Jayakody, Hon. (Dr.) Anil Jayantha, Hon. (Dr.) Hiniduma Sunil Senevi, Hon. (Dr.) Hansaka Wijemuni, Hon. Dayasiri Jayasekara, Attorney at Law, Hon. (Mrs.) Chamindranee Kiriella, Attorney at Law.
2025-03-24
Priority given to detecting unimplemented Committee recommendations of 4 Committees including COPE, COPA The Committee Appointed to Review Non-implementation of the Recommendations of the Parliamentary Committees, met for the first time on the 21st of March under the chairmanship of Hon. Minister Harshana Nanayakkara, Attorney at Law, at the Parliament. Accordingly, discussions were held regarding which unimplemented Committee recommendations should be prioritized for review. The Committee focused on examining the non-implementation of Committee recommendations issued by the Ninth Parliament. Among these, priority was given to reviewing the unimplemented recommendations of the Committee on Public Enterprises (CoPE), the Committee on Public Accounts (CoPA), the Committee on Public Finance (CoPF), and the Committee on Public Petitions. The Committee Chair stated that the Committee expects to take necessary steps to expedite the implementation of the unimplemented Committee recommendations by connecting with the respective officials responsible of carrying out the tasks. Hon. Deputy Minister Sunil Watagala, Attorney at Law, Hon. Members of Parliament Ravi Karunanayake, Ajith P. Perera, Oshani Umanga, and parliamentary officials were present at this Committee meeting held.
2025-03-24
Although the former chairman stated that the series of programs, including the Smart Youth Exhibition, were carried out following a survey report, the council does not have such a report – officials of the National Youth Service Council states Provide a full report on the 3 committees that provided compensation to officials who faced complications due to political reasons, disregarding a cabinet decision – COPE Subcommittee The COPE Sub-Committee disclosed that Sri Lanka Youth Services (Pvt) Ltd, a subsidiary of the National Youth Services Council, had registered as a supplier and submitted price quotations to the council at higher rates. The matter emerged at the COPE Sub-Committee meeting chaired by Hon. Member of Parliament Chandima Hettiarachchi, which met recently (Mar. 19) in Parliament to review the Auditor General’s reports for the years 2022 and 2023, the current performance, and the progress of implementing recommendations made during the Committee on Public Enterprises (COPE) meetings held on February 18th and 20th, 2025. During the meeting held, the Sub-Committee inquired officials regarding the recommendation given to former Chairman of the Council Mr. Pasindu Gunaratne to provide all video footage related to the Smart Youth program, including the musical concert held. Officials informed the Committee that the relevant video footage had been handed over. The Committee extensively inquired regarding the payment of Rs. 120 million paid to the respective production entities for this purpose. It was disclosed that Sri Lanka Youth Services (Pvt) Ltd., a subsidiary of the National Youth Services Council, had obtained the contract at a higher cost and then outsourced the work to other institutions. Furthermore, although the former chairman stated that the Smart Youth program and exhibition had been conducted following a survey report, officials of the National Youth Services Council informed the Committee that no such report was available with them. The Chair of the Sub-Committee stated that a massive financial fraud had occurred in the conduct of the Smart Youth program. He instructed officials to conduct an independent investigation at the Ministerial level and submit a comprehensive report to the Sub-Committee within three months. He also directed the National Youth Services Council to conduct its own investigation and take legal action accordingly. Furthermore, the Committee discussed the issue of compensation payments to 40 officials who had faced complications due to political reasons. A Cabinet decision had been issued to appoint a committee of retired officials to handle these payments, but instead, three separate committees had been appointed by the council to grant compensation. The Sub-Committee instructed officials to submit a full report within two weeks, detailing the names of the officials who received compensation, the amounts paid, the dates of promotions, the dates of payments, the dates of approvals, and the names of officials who made the decisions. Moreover, the Committee extensively discussed a complaint regarding a diploma awarded by the National Youth Services Co-Operative Society Ltd (NYSCO). It was revealed that the Sri Lanka National Youth Services Council had no involvement in this diploma program operated by NYSCO. The Chairman of the National Youth Services Council further stated that NYSCO was no longer under the council’s control. Additionally, it was disclosed that the age limit for selecting the General Manager of NYSCO, which was previously set at 35 years, had now been raised to 50 years. The Chair of the Sub-Committee emphasized that the National Youth Services Council's name should not be misused and directed the council’s board of directors to investigate and take necessary actions. Furthermore, he instructed the Secretary to the Ministry to summon NYSCO’s top officials for an inquiry and stated that the Sub-Committee’s recommendations on this matter would be forwarded to the Cooperative Commissioner for necessary action. The Sub-Committee also held extensive discussions on the submission of annual reports and financial statements of the National Youth Services Council and Sri Lanka Youth Services (Pvt) Ltd to Parliament within the stipulated timeframes, as well as the proper functioning of audit and management committees. The meeting was attended by Hon. Members of Parliament Samanmali Gunasinghe, Jagath Manuwarna, Asitha Niroshana Egoda Vithana, Lakmali Hemachandra, Attorney at Law, Auditor General Mr. W.P.C. Wickramaratne, and several other officials.
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