February 17, Colombo (LNW): In a significant revelation, Power and Energy Minister Kanchana Wijesekara announced that a forensic audit conducted by KPMG has unveiled several major irregularities in the sales and distribution of petroleum products from Ceylon Petroleum Storage Terminals Ltd (CPSTL).

The forensic audit, initiated following a complaint filed by the minister with the CID in August 2022 regarding irregularities at Ceylon Petroleum Corporation (CPC) and CPSTL, has brought to light numerous concerning findings. The CID, after preliminary investigations, recommended a comprehensive forensic audit to delve deeper into the matter.

The KPMG investigation officials conducting the forensic audit discovered over 1.3 million entries changed or deleted from the main database since 2010. Notably, a significant portion of these alterations occurred in 2022 during the peak of the fuel crisis. However, following the minister’s complaint to the CID in August 2022, the number of changes significantly decreased in 2023.

The irregularities identified have resulted in massive losses amounting to Rs. 28 billion in stock handling procedures in 2022. Minister Wijesekara stated that after filing the complaint, the losses reduced to Rs. 4 billion in 2023.

Furthermore, the audit revealed a lack of adequate data within CPSTL for smooth operations and the identification of irregularities. Outdated circulars and procedures were also identified as being in use. The comprehensive forensic audit report is expected to be submitted to the ministry by KPMG next week, after which it will be handed over to the CID for further investigations and appropriate legal actions. The report will also be shared with the Cabinet of Ministers, Parliament, Auditor General, and the Attorney General’s Department to determine the necessary steps moving forward.

February 17, Colombo (LNW): In a recent development, the National Physical Planning Department has officially recognized and designated 11 temples of profound archaeological, historical, and sacred significance as Sacred Sites. The announcement was made through the Government Gazette, following the submission of relevant documents to the Presidential Secretariat on Thursday (15), with the ceremony presided over by the Secretary to the President, Saman Ekanayake.

The newly designated Sacred Sites include Ambagaswewa Purana Rajamaha Vihara (Anuradhapura District), Pothuvatawana Maha Vihara (Puttalam District), Ampara Muhudu Maha Vihara (Ampara District), Maddegama Raja Maha Vihara (Gampaha District), Uddhakandara Rajamaha Vihara (Hambantota District), Sri Saddharma Yuktika Vana Senasuna (Trincomalee District), Dambadeniya Sri Vijaya Sundararama Raja Maha Vihara (Kurunegala District), Shanthi Viharya (Trincomalee District), Kabalewa Ambawa Sri Sudharmarama Purana Vihara, Gambhara Siddha Kabala Mul Soonyam Devalaya (Kurunegala District), and Yan Oya Rajamaha Vihara (Trincomalee District).

With these additions, the total number of recognized sacred places of worship in Sri Lanka has now reached 142. Secretary to the President, Saman Ekanayake, affirmed President Ranil Wickremesinghe’s steadfast commitment to upholding and protecting Buddhism in accordance with the Constitution. Additionally, the Secretary highlighted various government initiatives aimed at advancing Buddhism, including plans for archaeological excavations at the Maha Vihara, the establishment of Maha Vihara University, and the construction of an international Buddhist museum in Kandy.

The ceremony, chaired by Most Venerable Balangoda Sobhita Nayaka Thera, was attended by eminent figures in the Buddhist clergy, including Most Venerable Ganthune Assaji Maha Nayaka Thera and Most Venerable Medagama Nandawansa Thera. State Minister Shantha Bandara, MP Samanpriya Herath, and officials from related institutions were also present at the event. A charitable donation was made at the Presidential Secretariat in honor of the Maha Sangha as part of the occasion.

February 17, Colombo (LNW): The Maritime Environment Protection Authority (MEPA) has imposed a hefty fine of Rs.15 million on the MT Global Crest for the illicit and negligent discharge of oil in the Sri Lankan maritime zone. The incident occurred on January 26, as the vessel was en route from Kelang Port in Malaysia to the United Arab Emirates.

CLS Institute analysts from France utilized satellite technology to detect the illegal oil discharge on February 4, spanning a length of 11.25 km along the southern coast of Sri Lanka, covering an area of approximately 1 square kilometer. MEPA promptly initiated an investigation into the ship’s route, confirming its trajectory towards the outer Port of Colombo.

MEPA officials, in collaboration with relevant authorities, swiftly inspected the vessel on the night of February 6, confirming the unauthorized oil discharge. Subsequently, MEPA issued a Detention Order against MT Global Crest and informed various Sri Lankan authorities, including the Sri Lanka Navy and the Port Authority.

Under Section 26 of the Prevention of Marine Pollution Act No. 35 of 2008, MEPA wielded its authority to impose a fine of up to Rs.15 million on the responsible parties involved in such oil discharge incidents. MT Global Crest was directed to pay the imposed fine and cover the inspection expenses incurred by MEPA.

Following the settlement of the fine and associated costs on February 9, MEPA lifted the detention order on the MT Global Crest. The successful resolution of this case highlights the effectiveness of international cooperation through satellite analysis, as facilitated by the agreement between MEPA and the CLS Institute. MEPA Chairman Attorney Asela Rekawa emphasized the significance of long-term projects with international collaboration in addressing environmental challenges.

February 17, Colombo (LNW): In a momentous diplomatic encounter, Israel’s Transport and Road Safety Minister, Brig. Gen. Miri Regev, engaged in discussions with President Ranil Wickremesinghe, addressing critical issues related to the safe repatriation of Israeli hostages. President Wickremesinghe reassured Israel of Sri Lanka’s steadfast commitment to advocating for the hostages’ well-being.

Amidst the ongoing hostilities in Gaza, President Wickremesinghe took a strong stance, urging an immediate cessation of violence. He underscored the pivotal importance of fostering peace and stability in the region. The meeting served as a platform for both nations to collaborate on strategies to bring about a resolution to the current conflict.

President Wickremesinghe also reaffirmed Sri Lanka’s position on the Israeli-Palestinian conflict, expressing support for the establishment of a Palestinian State. He emphasized the need for a balanced approach to regional peace that considers both Israel’s security and the aspirations of the Palestinian people.

The diplomatic engagement was attended by Chief-of-Staff Sagala Ratnayaka, Secretary to the President Saman Ekanayake, and International Affairs Director Dinouk Colombage.

February 17, Colombo (LNW): Former Minister Gamini Jayawickrama Perera, aged 83, passed away this morning (17) after battling illness for some time.

Perera, a prominent figure in Sri Lankan politics, entered the political arena as a representative of the United National Party from the Kurunegala District. Throughout his political career, he held key positions, serving as the Minister of Irrigation and Water Management, Food Security, Sustainable Development, and Wildlife, as well as the Minister of Buddha Sasana. Additionally, he took on the role of Chairman of the United National Party.

The final rites for Gamini Jayawickrama Perera will be held at his residence in Katugampala, Kurunegala. The family will provide details about the funeral arrangements in the near future.

February 17, Colombo (LNW): Mizukoshi Hideaki, the Ambassador of Japan to Sri Lanka, has emphasized the critical importance of debt restructuring in steering Sri Lanka’s path toward economic recovery. The ambassador highlighted the multifaceted nature of Sri Lanka’s economic crisis, deemed the most severe since its independence, and underscored the complexity of the challenges faced by the country.

The economic downturn in Sri Lanka necessitated a comprehensive approach to address debt sustainability issues, especially with major creditors like China and India, which are not part of the Paris Club, making traditional avenues for debt restructuring insufficient. Recognizing the gravity of the situation, Japan, in collaboration with France and India, proactively initiated the official Creditors Committee.

Japan’s active involvement in facilitating negotiations resulted in an agreement in principle reached last November. Ambassador Hideaki reiterated Japan’s commitment to supporting Sri Lanka’s debt restructuring initiatives. He emphasized the potential ramifications of failure on Sri Lanka’s development trajectory and its pivotal role as a hub in the Indian Ocean region, highlighting the broader implications for the international community.

February 17, Colombo (LNW): The U.S. Under Secretary of State for Public Diplomacy, Elizabeth M. Allen, is set to visit Sri Lanka, India, and Jordan this month, reinforcing the United States’ commitment to expanding global partnerships and alliances.

The State Department’s press release outlines Allen’s trip from February 12 to 22, emphasizing the core principles of U.S. foreign policy and public diplomacy initiatives, including the promotion of freedom of expression, economic empowerment, and global collaboration.

While the exact date of her arrival in Sri Lanka is not specified, the statement highlights Allen’s plans to engage in dialogue on freedom of expression and democratic values. Meetings with diverse stakeholders, including journalists, civil society members, government officials, and the Embassy’s Youth Forum, are on the agenda. Engagements with the Sri Lanka Press Institute, U.S. public diplomacy program alumni, and local content creators will underscore the significance of preserving diverse voices for a stable and inclusive Sri Lanka.

Allen’s visit will also include meetings with representatives from Sri Lanka’s multifaith community to emphasize the importance of societal inclusivity. Following her time in Sri Lanka, she will proceed to India as part of her diplomatic tour.

John Keells Holdings PLC and Teejay Lanka PLC who ranked first in previous Transparency in Corporate Reporting assessments are joined this year by Ceylon Tobacco Company PLC, Dialog Axiata PLC, and Dilmah Ceylon Tea Company PLC who have all achieved the full score for transparency in corporate reporting, while 27 companies are considered ‘Significantly Transparent’ in corporate reporting as per the latest TRAC assessment by Transparency International Sri Lanka (TISL).

TISL has been conducting the Transparency in Corporate Reporting (TRAC) Assessment since 2020 and has continued to do so annually. For the first time this year, there is a five-way tie for first place in corporate reporting among the top 125 public limited companies in Sri Lanka (based on market capitalisation on the Colombo Stock Exchange as of July 5^th, 2023).

The TRAC 2023 Report, unveiled today (February 15, 2024), reveals that companies evaluated this year have achieved an average score of 5.85 out of 10. This marks a slight overall improvement compared to the previous year’s assessment, reflecting advancements in corporate transparency and reporting practices.

The TRAC Report 2023 assessed companies on their corporate disclosure practices in several important areas crucial to fighting and preventing corruption: reporting on anti-corruption programmes, organisational transparency, domestic financial reporting, reporting on gender and non-discrimination policies, country-by-country reporting, and reporting on procurement related to government contracts/tenders. Companies were then scored on a scale of 0-10, (10 being the highest and 0 being the lowest) based on publicly available information and were categorized into six groups as “Fully Transparent, Significantly Transparent, Moderately Transparent, Partially Transparent, Slightly Transparent, and Least Transparent” according to the level of transparency in their corporate disclosures. Companies were also given with the opportunity to provide feedback on their initial scores.

While congratulating the high scorers of the assessment, it is important to note that the TRAC report assesses transparency in corporate disclosures, and does not assess the actual implementation of companies’ anti-corruption policies or programmes. Therefore, a low score does not necessarily mean that a company does not have strong anti-corruption programmes, nor does it indicate any wrongdoing on the part of the company. Conversely, a high score may not always reflect operational and implementational success of anti-corruption programmes, but merely reflects strong disclosure mechanisms pertaining to anti-corruption, organisational transparency, domestic financial reporting, and policies on gender and non-discrimination.

TISL’s expectation is that periodic TRAC assessments will encourage companies to improve standards of integrity and transparency in business. The most important objective of this assessment is to encourage companies to incorporate and strengthen anti-corruption practices and to make this information publicly available.

As much as public sector corruption is a serious problem, so too is private sector corruption, wherein private sector actors can often be silent colluders or enablers of much larger public sector corruption. The newly enacted Anti-Corruption Act of 2023, for the first time in Sri Lanka recognizes bribery in the private sector as a punishable offence. This is further strengthened by the revised Listing Rules of the Colombo Stock Exchange, under which listed companies are required to adopt and maintain whistle-blower policies and anti-bribery and corruption policies and to make disclosures on said policies.

“Assessing corporate transparency through TRAC assessments will not address all grand corruption cases in Sri Lanka, as TISL also conducts research, engages in litigation and conducts other programmes and initiatives such as trainings on Anti-Bribery and Corruption for the private sector, to raise further awareness to address the issue of corruption. Nevertheless, corporate transparency is one step that companies can take to reduce the risk of corruption within their organisations” said Nadishani Perera, Executive Director, TISL. She continued to state that “Companies must commit to abide by the new regulatory standards, whilst also self-regulating to maintain higher standards than the minimum requirements. As such, periodic reviewing of corporate disclosures serves as a strong motivator for companies to regularly review their policies and improve their disclosures.”

Press Conference

Speakers

Nadishani Perera, Executive Director, TISL

Nicole Elias, Programme Manager (Private Sector), TISL

Fredrick Winslaw, Programme Officer (Private Sector), TISL