August 28, Colombo (LNW): Former Director of the National Lotteries Board Thusitha Halloluwa has been ordered to remain in remand custody until September 04, as investigations continue into an incident involving an alleged assault and gunfire directed at his vehicle.
Halloluwa was brought before Colombo Additional Magistrate Lahiru Silva earlier today (28), where prison authorities presented him in connection with the ongoing inquiry. Officers from the Colombo Crimes Division (CCD), who are handling the case, informed the court that initial findings suggest the event may not have been as it first appeared.
According to CCD investigators, early evidence points to the possibility that the former official may have orchestrated the attack on himself with the assistance of individuals linked to organised crime networks.
It is believed the intent behind the staged incident was to create a false narrative, potentially for personal or political leverage, though authorities have yet to publicly confirm a motive.
In court, the CCD provided further details of their investigation, outlining the evidence gathered so far and the direction of their inquiries. The presiding magistrate, after reviewing the submissions, ruled that Halloluwa should remain in remand to allow for further investigative work.
Ex-Lotteries Board Chief Thusitha Halloluwa Further Remanded Amid Claims of Staged Attack
New Legislation on Civil and Commercial Mediation Gains Parliamentary Support
August 28, Colombo (LNW): A significant legislative step towards modernising dispute resolution in Sri Lanka has been taken with the approval of a new Mediation Bill, aimed at enhancing the handling of civil and commercial disagreements through structured mediation processes.
The proposal received the green light from the Sectoral Oversight Committee on Governance, Justice and Civil Protection during a recent session held in Parliament under the chairmanship of MP Najith Indika.
The draft legislation seeks to address long-standing gaps in the country’s legal framework related to mediation, following the failure to effectively implement the Commercial Mediation Centres Act No. 44 of 2000.
Officials from the Ministry of Justice and National Integration explained that the original Act, though well-intentioned, proved impractical due to various procedural shortcomings and lacked the necessary legal mechanisms to enforce outcomes.
The new Bill has therefore been introduced to repeal the outdated law and replace it with a more robust legal structure. Amongst its key aims is the establishment of minimum standards for mediation practice and the formal recognition of mediated settlements within the judicial system.
These provisions are intended to strengthen public trust in mediation as a credible and enforceable alternative to litigation.
Although the current legal environment acknowledges mandatory mediation in certain contexts, voluntary mediation has yet to gain significant traction. Ministry representatives told the Committee that one of the primary challenges lies in the absence of a clearly defined legal framework for voluntary mediation—especially in cases where disputes are referred without prior agreement between parties, or where courts recommend mediation as a solution.
To address this, the proposed legislation outlines procedures for engaging in mediation both by mutual consent and upon judicial suggestion, ensuring that mediated outcomes are not only recognised by law but also protected by statutory regulation.
The Bill further seeks to normalise mediation as a first line of resolution in business and civil matters, ultimately reducing the burden on courts and encouraging more collaborative dispute settlement.
With the groundwork now laid in Parliament, the proposed Mediation (Civil and Commercial Disputes) Bill is expected to move forward for further legislative consideration.
Justice Must Not Be Selective, No One Is Above the Law: Public Security Minister
August 28, Colombo (LNW): Two of Sri Lanka’s most notorious criminal figures are expected to be extradited from Indonesia within the next few days, in what authorities have described as a significant step in the country’s ongoing crackdown on organised crime.
The announcement was made by Public Security Minister Ananda Wijepala during a media briefing held today (28).
The individuals in question, known by their underworld aliases ‘Kehelbaddara Padme’ and ‘Commando Salinda,’ were apprehended during a week-long international operation carried out jointly by Sri Lanka’s Criminal Investigation Department (CID) and Indonesian law enforcement agencies.
Intelligence assistance was also reportedly provided by Indian security services.
Minister Wijepala highlighted the arrests as a demonstration of renewed independence and professionalism within Sri Lanka’s security institutions—a shift he claims has been actively cultivated by the current administration.
He criticised past political interference in law enforcement, noting that criminal networks had long flourished under the protection of certain political actors.
“Justice must not be selective,” the Minister stated, reiterating the government’s commitment to dismantling the political-criminal nexus that, for years, allowed illicit networks to operate with impunity.
He revealed that inquiries are underway into the financial dealings of the suspects, and preliminary findings point to deep-rooted links between organised crime and elements of the political establishment.
The Minister further disclosed that nearly 75 international red notices have been issued against Sri Lankan nationals involved in serious criminal activities abroad, with over 20 already repatriated and now facing legal proceedings on home soil.
The process of returning the suspects currently in Indonesian custody is in its final stages, with arrangements being made for their transfer to Sri Lankan authorities.
Underscoring the broader political message, Minister Wijepala declared that the government’s vision is to create a nation where the rule of law prevails—regardless of social standing, political connections, or institutional affiliation.
“No one is beyond the reach of the law,” he asserted. “We are building a society where justice is not an abstract concept but a lived reality. Our commitment is not only to public safety but also to ensuring that the principles of fairness and accountability shape the way this country is governed.”
He concluded by reaffirming that tackling organised crime is essential to creating a safer, more equitable Sri Lanka—one where the law applies equally to every citizen, from the most powerful to the most vulnerable.
Committee Appointed to Verify BYD Motor Capacity Amid Tax Evasion Allegations Unravels Billions of Losses to SL?
By: A Special Correspondent
August 28, Colombo (LNW): A contentious issue has recently emerged surrounding the importation of BYD electric vehicles into Sri Lanka, with allegations surfacing that these vehicles were cleared through Customs by paying significantly reduced taxes.
The central allegation concerns the misrepresentation of motor capacity for the purpose of tax calculation. Specifically, it has been claimed that certain vehicles, originally manufactured with a motor capacity of 150 kilowatts, were declared as having only 100 kilowatts when presented to Sri Lanka Customs. This alleged understatement has reportedly led to a tax shortfall of approximately Rs. 3.6 million per vehicle.
John Keells CG Auto (Pvt) Ltd., the official importer of BYD vehicles into Sri Lanka, responded by asserting that, although the vehicles are indeed manufactured with 150 kW motors, the output is electronically limited to 100 kW via firmware adjustments made by the manufacturer. Therefore, they argue, no misrepresentation has occurred.
The issue initially came to light with the BYD ATTO 3 model, but it was later alleged that the same discrepancy applies to several other BYD models as well.
Sri Lanka Customs, however, has taken a firm stance on the matter. Officials have stated that, under the existing legal framework, they are only concerned with the actual motor capacity installed in the vehicle, regardless of whether the power output is artificially limited through software or firmware.
Based on this interpretation, Customs detained 991 BYD vehicles at the port and formed a technical committee, with assistance from the University of Moratuwa, to independently verify the motor capacities of the vehicles in question.
In response to the impasse, John Keells CG Auto (Pvt) Ltd. filed legal action seeking the release of the detained vehicles. The case is currently ongoing. Meanwhile, an agreement was reached before the court to allow the temporary release of the vehicles upon the provision of a bank guarantee equivalent to the disputed tax amount — approximately Rs. 3.6 billion.
The incident sparked significant discussion across traditional media and social media platforms, particularly among stakeholders with an interest in electric vehicles. The importer’s representatives argued that the Customs Department should have accepted the motor output value provided by the vehicle manufacturer, and calculated taxes based on the reduced, firmware-limited output. They contend that the appointment of a technical committee to inspect motor capacity was unnecessary.
Conversely, critics of the importer’s position emphasised that Sri Lankan regulations clearly stipulate that taxes are to be calculated based on motor capacity as physically installed in the vehicle. According to them, relying solely on manufacturer-provided figures, particularly when subject to modification via software, could open the door to widespread tax evasion.
The broader context of this dispute is significant. Vehicle imports were banned in Sri Lanka for several years due to economic constraints, but the ban was lifted on 31 January 2025. The legal framework governing this change was established by Gazette Notification No. 2421/43, issued on the same date.
Under this Gazette, imported vehicles are classified under HS code 8704.60, described as “Other vehicles, powered only by an electric motor.” The tax structure is tiered based on motor capacity, with specific categories such as:
“Motor vehicles with a capacity exceeding 50 kilowatts but not exceeding 100 kilowatts” and
“Motor vehicles with a capacity exceeding 100 kilowatts but not exceeding 200 kilowatts,” among others.
It is evident that the law refers explicitly to “motor vehicles” and defines taxation based on motor capacity — not on modifiable power output or software-limited performance. The term “electric vehicles” is not used within the relevant regulatory text, and no provision exists to consider reductions in motor output achieved through firmware alterations. Accordingly, Customs’ decision to appoint a technical committee to ascertain actual motor capacity appears consistent with the law.
Arguments about how these vehicles are treated in other jurisdictions, such as Singapore or Nepal, are immaterial to the Sri Lankan regulatory context. The only relevant consideration remains the actual motor capacity of the vehicles as physically installed.
Given the nation’s current economic goals, the rationale behind lifting the import ban was to generate much-needed tax revenue in rupees. This revenue is vital to achieving long-term financial stability and supporting public welfare initiatives. If vehicles are allowed to bypass the intended tax structure by citing software limitations, the primary objective of reopening vehicle imports — that is, substantial revenue collection — would be undermined.
Ultimately, this situation involves billions of rupees in potential tax revenue — revenue that is essential not just for fiscal planning, but for the broader economic wellbeing of the Sri Lankan people.
Accelerated Landmine Clearance Paves Way for Final Resettlements
August 28, Colombo (LNW): The government has intensified efforts to complete the clearance of landmines scattered across several regions of Sri Lanka—a legacy of the decades-long civil conflict.
The initiative is overseen by the Ministry of Urban Development, Construction and Housing and marks a significant push toward finalising one of the country’s most protracted post-war recovery tasks.
According to M. M. Naimudeen, Additional Secretary to the Ministry, mine clearance activities have been ongoing for over 20 years, with critical support from both domestic institutions and international humanitarian partners.
The campaign has led to the restoration of vast swathes of land previously deemed unsafe due to the threat of unexploded ordnance.
To date, more than 1,300 square kilometres of land—primarily in the Northern, Eastern, and North Central provinces—have been successfully demined, transforming once-inaccessible terrain into habitable and cultivable ground. These efforts have enabled the resettlement of nearly one million individuals, many of whom were displaced for years.
Despite the considerable progress, a remaining 22.7 square kilometres still await clearance. Authorities have vowed to accelerate work in these final areas, prioritising zones with high potential for resettlement and agriculture.
Officials stress that the safe return of residents to their ancestral lands, along with the restoration of livelihoods, remains a central objective of the ongoing programme.
Islandwide SLTB Trade Union Action Sparks Tensions Over New Timetable Scheme
August 28, Colombo (LNW): Multiple trade unions representing employees of the Sri Lanka Transport Board (SLTB) have launched a coordinated islandwide industrial action, commencing at midnight yesterday (27), in protest against the government’s introduction of a new integrated timetable that combines private and state-run bus services.
The protest, led by seven of the eight SLTB-affiliated trade unions, is being spearheaded by the Samagi United Trade Union Force. Its convenor, Ananda Palitha, alleged that the integrated scheduling initiative is a covert attempt by the government to systematically weaken and dismantle the state-run transport service, placing the SLTB’s future at risk.
According to Palitha, the new timetable system disproportionately favours private operators and undermines the operational autonomy and sustainability of the SLTB.
He further warned that the move could pave the way for the privatisation of key transport services, at the expense of public sector workers and affordable passenger mobility.
In response, Deputy Transport Minister Dr. Prasanna Gunasena dismissed the union action as unwarranted, claiming it lacks a legitimate foundation and is primarily aimed at creating political friction. He affirmed that all SLTB drivers had been instructed to report for duty as usual and warned that disciplinary action, including suspension, would be taken against those participating in the strike without authorisation.
Petroleum Sector Begins Workforce Restructuring to Streamline Operations
August 28, Colombo (LNW): The Ceylon Petroleum Corporation (CEYPETCO) and the Ceylon Petroleum Storage Terminals Ltd. (CPSTL) have initiated a restructuring programme aimed at gradually reducing their workforce, with the goal of improving operational efficiency and long-term sustainability.
According to Mayura Nettikumara, Managing Director of CEYPETCO, the staff reduction will be carried out through natural attrition, primarily by not replacing employees who retire.
He emphasised that no compulsory layoffs are planned as part of this transition.
Currently, the combined workforce of the two state-owned entities exceeds 3,200 employees. The restructuring plan seeks to bring this number down to approximately 2,035, aligning with industry benchmarks and the organisations’ evolving operational needs.
The process is expected to take place gradually over the coming years, allowing for a smoother transition without disrupting ongoing services.
Sri Lankan Underworld Suspects Captured in Joint Jakarta Operation
August 28, Colombo (LNW): In a coordinated effort between Indonesian and Sri Lankan authorities, six individuals linked to organised crime networks were apprehended in Jakarta.
The suspects, believed to be key players in the Sri Lankan underworld, were identified as Backhoe Saman, Thembili Lahiru, Kehelbaddara Padme, Commando Salinda, Panadura Nilanga, and a female accomplice.
Several amongst them have long been considered high-value targets due to their alleged involvement in a range of serious criminal activities.
The arrests were the result of a joint operation between Jakarta police and a specialised team from Sri Lanka’s Criminal Investigation Department (CID), carried out discreetly in the Indonesian capital.
President Engages Ceramic Industry Stakeholders Ahead of 2026 Budget Planning
August 28, Colombo (LNW): In preparation for the forthcoming 2026 national budget, President Anura Kumara Dissanayake held a consultative session yesterday (27), at the Presidential Secretariat with key figures from Sri Lanka’s ceramic manufacturing sector.
The meeting brought together government officials and private entrepreneurs to exchange views on the state of the industry, its pressing challenges, and potential strategies for growth and resilience.
The session served as a platform for ceramic manufacturers to raise concerns regarding regulatory constraints, quality control, production costs, and difficulties in sourcing raw materials. Industry representatives stressed the urgent need for policy reforms and targeted support, particularly in light of increasing global competition and shifting market dynamics.
During the dialogue, President Dissanayake reaffirmed the government’s commitment to revitalising domestic manufacturing, with a particular focus on boosting the export capacity of local industries whilst ensuring the protection of small and medium-scale enterprises. The President underscored the importance of maintaining high standards and product quality, especially for commonly used items such as tiles, bathroom fixtures, and sanitary ware, which are widely consumed both locally and abroad.
He further emphasised the state’s intention to make quality ceramic products accessible to the public at reasonable prices, pledging practical support to manufacturers to help reduce overheads and improve efficiency without compromising standards.
Participants also explored long-term strategies for overcoming material shortages, improving infrastructure, and expanding access to international markets. Collaborative efforts between the public and private sectors were highlighted as essential to building a robust and competitive ceramic industry capable of contributing meaningfully to the country’s economic recovery.
Amongst those in attendance were Dr. Harshana Suriyapperuma, Secretary to the Ministry of Finance, Mangala Wijesinghe, Chairman of the Export Development Board, and several senior representatives from the private sector engaged in both manufacturing and export.
Former Local Councillor Apprehended Over Officer Injury During Protest Near Fort Magistrate Court
August 28, Colombo (LNW): Authorities have taken into custody a 52-year-old man believed to be responsible for injuring a police officer during a recent demonstration in the heart of Colombo.
The incident occurred near the premises of the Colombo Fort Magistrate Court on August 26, amid a tense protest that drew significant public attention.
The suspect, reportedly a former member of the Municipal Council representing the Nagoda area in Kalutara, was detained the following day in Kalutara by personnel from the Colombo Crime Division (CCD).
His arrest follows allegations that he hurled a bottle during the protest, striking an officer who was deployed for crowd control duties. The injured officer was performing his official responsibilities at the time.
The accused now faces charges relating to both the infliction of physical harm and interference with police operations. Following his arrest, he was transferred to the custody of the Kompannavidiya Police, who are currently spearheading a broader investigation into the events of that day.
The individual is expected to appear before the Colombo Fort Magistrate’s Court today (28).