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Lycamobile faces winding-up petition over £51m VAT dispute amid financial struggles and scrutiny

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The Guardian: Lycamobile, a telecoms company that has given more than £2m to the Conservative party, has been issued with a winding-up petition by HM Revenue and Customs, amid a long-running VAT dispute.

The company, founded by businessman Allirajah Subaskaran in 2006, sells pay-as-you-go sim cards that are popular with low-paid workers wanting to make cheap phone calls to family overseas, as well as in the UK.

While the company generated revenues of more than £145m in 2022, it is now loss-making. Its accounts have repeatedly been filed late and have at times confounded its own auditors.

Successive accounting firms have raised concerns about the opacity of Lycamobile’s books, while the company has also been locked in an eight-year tussle with HMRC over its treatment of VAT on phone “bundles” sold to customers over seven years.

The amount in dispute is £51m, according to a tax tribunal that ruled in favour of HMRC last month. In accounts filed earlier this year, Lycamobile estimated the potential cost to the company at £99m.

A winding-up petition is a formal legal process that creditors can use against a company that owes them money and is unable to pay its debts. HMRC regularly issues such petitions, which can result in assets being forcibly sold, against companies that have not paid their tax bill.

HMRC issued the winding-up petition against Lycamobile UK Ltd on Monday, according to a court filing seen by the Guardian and first reported by City AM. Identical petitions were served against sister companies Lycatel Services Ltd and, a week earlier, against Lycamoney Financial Services Ltd. All are ultimately owned by Subaskaran, a British-Sri Lankan entrepreneur who is Lycamobile’s founder and chair.

Lycamobile was one of the Tory party’s most generous donors between 2011 and 2016, giving more than £2.1m. It also supported Boris Johnson’s successful attempt to become London mayor.

It came under scrutiny in 2015 when an investigation by BuzzFeed revealed that Lycamobile employees were depositing rucksacks full of cash, some containing up to £250,000, at the Post Office.

There is no suggestion of any connection to the VAT dispute and Lycamobile said at the time that its cash deposits were part of “day-to-day” banking sanctioned by the Post Office.

Lycamobile has repeatedly filed its accounts late, putting it at risk of being struck off the corporate register. In 2016, the auditor KPMG said it was unable to account for £134m of assets, citing an arcane corporate structure including offshore entities.

The company’s latest auditor, PKF Littlejohn, said in June that it could not sign off Lycamobile’s accounts because it had “not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion”.

Those results, for the year to the end of December 2022, showed a £24m loss, compared with an £8m profit the previous year.

In the subsequent financial year, for which accounts are not yet available, the company suffered a malware attack that reportedly prevented customers making calls or topping up their accounts.

The Guardian has approached Lycamobile for comment.

HM Revenue and Customs said it could not comment due to rules regarding taxpayer confidentiality.

Dozens Arrested Amid Days of Unrest in Los Angeles Following Immigration Raids

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Tensions remain high in Los Angeles after several days of violent protests sparked by aggressive immigration raids conducted by U.S. Immigration and Customs Enforcement (ICE) in predominantly Latino neighborhoods. The unrest has resulted in dozens of arrests, widespread disruption, and a controversial military deployment ordered by President Donald Trump.

Protests Sparked by Federal Raids

Demonstrations began on Friday after reports emerged that ICE had arrested over 100 undocumented immigrants in coordinated operations across the city. A major operation in the Westlake district and another in the heavily Hispanic suburb of Paramount drew particular outrage. ICE confirmed that 44 people were arrested at a job site and an additional 77 in wider LA operations. Rumors of a raid at a Home Depot in Paramount were later denied by officials, though the store became a protest flashpoint.

Violence Erupts Across the City

While initial demonstrations were peaceful, the situation escalated dramatically over the weekend. Protesters shut down the 101 Freeway, set self-driving cars ablaze, and clashed with police outside key federal buildings. Downtown LA was declared an “unlawful assembly” zone after police accused protesters of throwing incendiary devices. Officers in riot gear responded with flash-bang grenades and pepper spray.

The federal building in downtown LA, reportedly holding ICE detainees, became a central protest site. On Saturday, ICE claimed more than 1,000 demonstrators surrounded and attacked the building.

In Paramount, National Guard troops were deployed to protect businesses, and tear gas was used to disperse crowds. Police reported 29 arrests on Saturday and 27 more on Sunday.

Military Deployment Raises Legal and Political Questions

President Trump initially deployed 2,000 National Guard troops to Los Angeles on Saturday, bypassing California’s state leadership. On Monday, he ordered an additional 2,000 troops and 700 marines to the city, citing “rebellion” under a rarely invoked federal statute.

This marks the first time since 1965 that the National Guard has been deployed to California without the governor’s consent. Governor Gavin Newsom and LA Mayor Karen Bass condemned the move, calling it unconstitutional and inflammatory. The state has filed a lawsuit against the Trump administration, arguing the deployment violates the 10th Amendment, which protects states’ rights.

California Attorney General Rob Bonta called the military presence an “inflammatory escalation unsupported by conditions on the ground.”

Federal Forces Supporting ICE, DHS Operations

The National Guard has been tasked with securing federal agents from ICE and the Department of Homeland Security (DHS), but not with conducting immigration enforcement or routine policing. The LAPD remains responsible for law enforcement in the city.

Despite threats, Trump has not invoked the Insurrection Act, which would allow federal troops to engage in civilian law enforcement — a move he considered during the 2020 racial justice protests.

Controversial Deportation Drive Expands

The recent raids are part of Trump’s broader push to launch what he has called the largest deportation operation in U.S. history. Los Angeles, home to millions of immigrants, has been a major focus. In May, ICE reported the arrest of 239 undocumented migrants during a week-long operation in the city.

Critics say the campaign has gone too far, citing cases of legal residents being detained and deported. The White House has since raised its target to 3,000 ICE arrests per day nationwide.

Public Divided on Trump’s Immigration Policy

Despite the unrest, a CBS News/YouGov poll conducted in early June showed 54% of Americans approve of Trump’s immigration policy, while only 39% support his approach to inflation and 42% approve of his economic plan.

Life Continues in Parts of the City

While protests have roiled parts of downtown, other neighborhoods have remained largely calm. The annual LA Pride parade went ahead as scheduled in closed-off areas, offering a stark contrast to the unrest just miles away.

Mayor Bass reassured the public, saying: “We stand with all Angelenos, no matter where you were born.”

Oceans cannot become ‘wild west’, warns UN chief

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Unregulated mining in the deep sea should not be allowed to go ahead, the head of the United Nations has warned.

“The deep sea cannot become the Wild West,” UN Secretary General António Guterres said at the opening of the UN Oceans Conference in Nice, France.

His words were echoed by French President Emmanuel Macron, who declared the “oceans are not for sale”.

The remarks appear to refer to the decision by President Trump in April to begin issuing permits for the extraction of critical minerals in international waters.

There is increasing interest in extracting precious minerals from what are called metallic “nodules” that naturally occur on the seabed.

But marine scientists are concerned about the harm that could be caused.

“The ocean is not for sale. We’re talking about a common shared good,” President Macron said. “I think it’s madness to launch predatory economic action that will disrupt the deep seabed, disrupt biodiversity, destroy it.”

This issue is one of a number on the agenda in France, including over-fishing, plastic pollution and climate change.

Over 2,000 of the world’s scientists met last week to review the latest data on ocean health – they recommended to governments meeting this week that deep sea exploration be halted whilst further research be carried out on the impacts.

More than 30 countries support this position and are calling for a moratorium – but President Trump has not rowed back on his executive order.

A treaty for our oceans

A key aim of the UN oceans conference, which runs until Friday, is to get 60 countries to ratify a High Seas Treaty and thus bring it into force.

This agreement was made two years ago to put 30% of international waters into marine protected areas (MPAs) by 2030, in the hope it would preserve and help ecosystems recover.

President Macron declared in his opening speech that an additional 15 had ratified but that only brings the total number to 47.

The UK government has not yet ratified the agreement, though on Monday it said a ban on a bottom “destructive” type of fishing that drags large nets along the seafloor could be extended across MPAs in England.

Even if enough countries sign there are concerns from environmentalists, including Sir David Attenborough, that there is nothing explicit in the Treaty to ban bottom trawling in these MPAs.

Bottom trawling is one of the more destructive fishing practices that can lead to accidentally killing larger marine species.

BBC

Males Slightly Outnumber Females in Public and Semi-Government Sector Employment Despite Female Majority in Population – 2024 Census

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Males account for 50.5% of the workforce in Sri Lanka’s Public and Semi-Government sectors, slightly outnumbering females, who make up 49.5%, according to the Preliminary Report of the 2024 Census of Public and Semi-Government Sector Employment released by the Department of Census and Statistics (DCS). This is despite females comprising 51.61% of the national population, with males at 48.39%.

The census estimates that 1,156,018 individuals are employed across Public and Semi-Government institutions. Of this, the Central Government accounts for the majority, employing 59.5% of the total workforce.

Gender Disparities by Sector

The report highlights a nuanced gender distribution across sectors:

  • Provincial Government Sector: Female representation is significantly higher. 310,573 female employees are engaged in this sector—more than double the number of male employees (152,707).
  • Central Government and Semi-Government Sectors: Male employees dominate, with 148,439 malescompared to 64,747 females, reflecting a two-to-one ratio.

In terms of employment distribution:

  • Central Government: 475,483 in the public sector and 213,186 in the semi-government sector.
  • Provincial Government: 463,280 in the public sector and 4,069 in the semi-government sector.

Overall, nearly 80% of the workforce is employed in the public sector.

Job Security and Employment Status

Job security remains high within the public sector, where over 97% of employees hold permanent positions. In contrast, the semi-government sector has a lower proportion of permanent employees, indicating relatively less employment stability.

Historical Context and Delay

The 2024 Census is the ninth in a series of censuses dating back to 1980, when the first scientific effort was made to map the public and semi-government workforce. Subsequent censuses were conducted in 1985, 1990, 1994, 1998, 2002, 2006, and 2016. Although the ninth census was initially scheduled for 2020, it was postponed due to the COVID-19 pandemic and the country’s economic crisis.

The report provides crucial data for government planning and policy development, particularly in assessing gender dynamics and workforce composition across national and provincial administrations.

Sri Lanka Embassy in Japan Conducts Mobile Consular Service in Tochigi

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The Embassy of Sri Lanka in Japan recently conducted a mobile Consular service in Ashikaga, located in Tochigi Prefecture, to provide essential services to the Sri Lankan community residing in the region.

Embassy officials addressed a wide range of community needs, offering assistance with passports, visas, driving licenses, education, health, and more. Key services included affidavit issuancepassport endorsements, and other vital consular functions. The initiative saw a large turnout from Sri Lankans, underscoring the importance and relevance of such outreach programmes.

The mobile service was held in conjunction with the “Poson Kalapaya” celebration organised by the Ohana Association in Tochigi. The event, held to mark Vesak and Poson Poya, featured over 600 artistically illuminated lanterns, creating a serene and spiritually uplifting atmosphere that brought together both Sri Lankans and Japanese in a shared cultural experience.

An art competition was also organised as part of the festivities, and participating children—both Sri Lankan and Japanese—were recognised for their creativity with school bag prizes.

The religious observances were graced by Ven. Mawathare Chandima Thera, Chief Incumbent of the Tochigi Paramita Meditation Centre, and Ven. Varawila Wijayawansa Thera, Chief Incumbent of the Saithama Kumagaya Anandameth Viharaya, along with members of the Maha Sangha.

The Embassy’s initiative highlighted its ongoing commitment to ensuring inclusive service delivery while strengthening cultural and spiritual bonds among the overseas Sri Lankan community.

Sri Lanka Embassy in Brussels Showcases Ceylon Tea with Belgian Chocolate in Innovative Pairing Workshop

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In a novel effort to promote Ceylon Tea in the Belgian market, the Sri Lanka Embassy in Brussels hosted a ‘Ceylon Tea and Belgian Chocolate Pairing Workshop’ on Tuesday, June 3, at the official Sri Lanka Residence in Brussels. The event aimed to creatively elevate the profile of Ceylon Tea by pairing it with premium Belgian artisanal chocolates, offering a curated sensory experience for industry professionals and connoisseurs alike.

Organised in collaboration with Stijn Van Schoonlandt, a certified Tea Master, international speaker, and Regional Director for Europe of the International Tea Masters Association, the workshop attracted Tea importers, distributors, sommeliers, chocolatiers, and other stakeholders from across Belgium’s specialty food sector.

Welcoming attendees, Ambassador Chandana Weerasena encouraged participants to explore business and tourism opportunities in Sri Lanka, with a special focus on engaging with local Tea producers and discovering the country’s scenic Tea Trails across the central highlands.

Minister Commercial of the Embassy, Thavishya Mullegamgoda, delivered a presentation on the diversity and quality of Ceylon Tea. She emphasized its unique journey “from plantation to palate” and underscored its global reputation for flavour, purity, and provenance.

The highlight of the event was the pairing session conducted by Mr. Schoonlandt, who introduced six distinctive varieties of Ceylon Tea—including Mellow Black TeaCeylon BloomCinnamon CigarOP1FBOPF SP, and Spice Chai. These were thoughtfully matched with Belgian chocolates such as praline, milk chocolate, white chocolate, dark chocolate, and lime-infused chocolate, creating a nuanced tasting experience.

The Tea used in the workshop was sourced from acclaimed Sri Lankan exporters including Amba EstateBogawantalawa Ceylon Tea (Pvt) LtdKaley Tea Estate, and Rosyth Artisan Teas. Displayed prominently at the venue, these teas showcased Sri Lanka’s capacity to produce diverse and high-quality offerings tailored for global markets.

The evening concluded with discussions on strategies to expand Ceylon Tea’s footprint in Belgium, while guests enjoyed Sri Lankan finger foods paired with signature Tea and chocolate combinations—blending culture, commerce, and cuisine in a unique diplomatic initiative.

President Calls for Civic Renewal and Restoration of Buddhist Values at National Poson Festival

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President Anura Kumara Dissanayake, speaking at the National Poson Festival held on June 10 at the sacred Mihintale temple grounds, issued a powerful call for restoring the country’s ethical and civic foundation, citing the collapse of the disciplined social structure historically rooted in Buddhist values.

The President highlighted that although Buddhism, introduced over 2,000 years ago, laid the groundwork for a disciplined, educated, and cultured society, that structure has eroded over time. He pointed to alarming institutional decay, stating:
Some members of the police have reached a point where they protect criminals. Certain officers at the Immigration and Emigration Department are issuing travel documents illegally. Underworld figures have been granted passports. Some Prisons Department officials have unlawfully released inmates. Even within the Motor Traffic Department, some officers are engaged in illegal activities.

He stressed that citizens no longer view state institutions with trust or peace of mind, urging the need for a national civic renewal guided by Buddhist philosophy. “A well-disciplined civic programme must be established to foster a sense of civic responsibility among the people,” he said, adding that the teachings of the Buddha could provide the ethical foundation for such a transformation.

Reflecting on the spiritual and cultural impact of Arahant Mahinda Thera’s arrival in Mihintale, President Dissanayake described it as a civilisational turning point that shaped Sri Lankan identity. He questioned how the Poson Festival could be meaningfully celebrated without honouring Mihintale’s historical significance and called for its preservation for future generations.

The President also outlined the government’s initiative to restore and redevelop the ancient city of Anuradhapura, the cradle of Sri Lankan civilisation, citing support pledged by the Prime Minister of India. The reconstruction plan includes revitalising the country’s first city, reservoir, surgical facility, and irrigation canals such as Yodha Ela, while restoring the nation’s cultural heritage.

Underscoring the broader civilisational contributions of Buddhism, he said:
More than two thousand years ago, Buddhism introduced a transformative change in education by transforming temples into centres of learning—Pirivenas—which imparted spiritual and secular knowledge. For this, our monastic leaders deserve the nation’s utmost gratitude.

He concluded by stating that a disciplined and ethical society is essential for the country’s progress, and reaffirmed his government’s unwavering commitment to reform and rebuild public institutions, appealing to citizens to unite in this national mission.

This year’s National Poson Festival was the first to be held under state patronage in two years. The Chief Incumbent of Mihintale Rajamaha ViharayaMost Venerable Dr. Walawahengunawawe Dhammarathana Thera, expressed heartfelt gratitude to the President for reviving the tradition. The welcome address was delivered by Viharadikari Venerable Surukkulame Indrarathana Thera.

The event was attended by numerous dignitaries, including Minister of Buddhasasana, Religious and Cultural Affairs Hiniduma Sunil SeneviMinister Wasantha SamarasingheDeputy Ministers Gamagedara Dissanayakeand Susil RanasingheMPs Sena Nanayakkara, Thilina Tharuka Samarakoon, and Bhagya Sri Herath, and Anuradhapura District Secretary Ranjith Wimalasuriya, along with a large gathering of devotees.

Sri Lanka Commences Digital Terrestrial Television Broadcasting (DTTB) Project

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Sri Lanka officially initiated engineering consultancy services for the technical implementation of the Digital Terrestrial Television Broadcasting (DTTB) project on Monday (9), marking the beginning of the country’s long-anticipated transition from its 46-year-old analog terrestrial broadcasting system to a unified digital platform.

The launch event took place at the Health and Mass Media Ministry auditorium under the patronage of Minister Dr. Nalinda Jayatissa. Addressing the gathering, the Minister highlighted that the commencement of DTTB technology operations is not only a transformative step for Sri Lanka’s broadcasting landscape but also a significant stride in advancing the nation’s broader digital economy. He noted that the project, delayed for over a decade due to various reasons, has now been expedited as part of a renewed commitment to modernising telecommunications infrastructure.

The Minister emphasized that the DTTB initiative underscores the longstanding friendship and technical cooperation between Japan and Sri Lanka, as Japanese engineering consultants have joined hands with local experts to carry out the project. A key feature of the project is the establishment of a state-of-the-art 4K digital studio complex for the Sri Lanka Television Corporation, representing a major upgrade in national broadcasting capabilities.

With this digital migration, Sri Lankan viewers will benefit from high-definition (HD) picture quality, and broadcasters will enjoy more efficient operations thanks to the enhanced spectral efficiency of digital systems. The upgrade will also allow for more television channels to be transmitted within the same frequency spectrum.

Moreover, the shift to digital broadcasting frees up valuable spectrum—particularly in the 700MHz band—which can now be redirected to support the rollout of 5G technology and improve broadband internet access, especially in rural areas.

DTTB Project Director, Eng. Prasanga Rajapaksa, delivered a comprehensive overview of the project, outlining its strategic importance to the future of broadcasting in Sri Lanka and reaffirming the government’s commitment to driving digital transformation across the media and communications sectors.

IMF First Deputy Managing Director Dr. Gita Gopinath to Visit Sri Lanka from June 15

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Dr. Gita Gopinath, the First Deputy Managing Director (FDMD) of the International Monetary Fund (IMF), will undertake an official visit to Sri Lanka beginning June 15, marking the first visit by a sitting FDMD to the country since 2005.

A key highlight of her visit will be her participation as Guest of Honour at the high-level conference titled “Sri Lanka’s Road to Recovery: Debt and Governance”, to be held on June 16. The event is jointly organised by the Ministry of Finance, the Central Bank of Sri Lanka, and the IMF, and comes at the mid-point of Sri Lanka’s IMF-supported reform programme.

The conference will serve as a platform to:

  • Reflect on lessons learned from Sri Lanka’s efforts in achieving macroeconomic stability
  • Assess progress in debt restructuring and governance reforms
  • Discuss the challenges ahead for sustained recovery

Dr. Gopinath is also expected to engage in bilateral discussions with Sri Lankan authorities and key stakeholdersregarding the IMF’s continued engagement and support for the country’s economic recovery efforts.

President Anura Kumara Dissanayake Embarks on Official Visit to Germany to Strengthen Bilateral Ties

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President Anura Kumara Dissanayake departed for Germany on a three-day official visit from June 11 to 13, 2025, at the invitation of German President Frank-Walter Steinmeier, the Ministry of Foreign Affairs, Foreign Employment and Tourism confirmed.

During the visit, President Dissanayake is scheduled to:

  • Hold bilateral talks with President Steinmeier and senior German federal ministers
  • Discuss enhanced cooperation in trade, the digital economy, investment, and vocational training
  • Chair a Business Forum hosted by the German Chamber of Commerce and Industry (DIHK) to promote Sri Lanka’s economic reformsinvestment potential, and trade partnerships
  • Engage with German tourism and travel industry stakeholders to boost Sri Lanka’s appeal as a secure and attractive destination

The President is accompanied by Foreign Affairs, Foreign Employment and Tourism Minister Vijitha Herath and a delegation of senior government officials. The visit aims to deepen economic and diplomatic ties between Sri Lanka and Germany, in line with Sri Lanka’s development and international engagement strategies.

Showers or thundershowers will occur at times in several provinces

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Showers or thundershowers will occur at times in Western, Sabaragamuwa, Central, Southern and North-western provinces.

Heavy falls above 100 mm are likely at some places in the Western and Sabaragamuwa provinces and in Nuwara-Eliya, Kandy, Galle and Matara districts.

Several spells of showers may occur in the Northern province and in Anuradhapura district.

Strong winds of about (50-60) kmph can be expected at times over Western slopes of the central hills and in Northern, North-central, Western, Sabaragamuwa, North-western and Southern provinces and in Trincomalee district.

The general public is kindly requested to take adequate precautions to minimize damages caused by temporary localized strong winds and lightning during thundershowers.