Former State Minister Shasheendra Rajapaksa has been arrested by officers of the Bribery Commission.

He appeared before the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) yesterday(05) to provide a statement regarding fertiliser importation during his time in office.

Rajapaksa was summoned as part of an ongoing investigation into allegations linked to fertiliser imports handled under his tenure as a government official.

Janatha Vimukthi Peramuna (JVP) General Secretary Tilvin Silva revealed that a senior member of the Chinese Communist Party’s powerful seven-member Politburo Standing Committee advised him that merely winning state power is not enough — and that to bring about the changes they aspire to, the party must retain power for at least 15 to 20 years.

Speaking during a YouTube interview about his recent extended visit to China, Silva said the Chinese official emphasized that lasting reforms require political stability and continuity, pointing out that even in China, major changes had taken 30 to 40 years to implement.

“In China, there is one party in power, which has its advantages. It allows them to work towards one plan and one policy. If we in Sri Lanka start making changes now but lose power in five years, everything we began could be undone by the next government. To achieve real change, we need at least 15 to 20 years — maybe even four consecutive election victories — to follow through on a single vision,” Silva explained.

He said the Chinese side expressed readiness to support Sri Lanka in various ways — including investments, technology, and party training — and stressed the importance of developing the mindset and skills of party members to transition from an opposition mentality to effective governance.

“We were a party building towards power; now we are a party in power. That means our members must learn new ways of thinking, managing the economy, and governing effectively. The Chinese offered to share their experiences in these areas,” Silva noted.

Silva added that the Chinese officials were pleased that the NPP had come to power despite difficulties and without abandoning its mission, but repeated their warning that significant change cannot be achieved in just a few years and requires long-term political control.

Outgoing Australian High Commissioner to Sri Lanka, Paul Stephens, paid a farewell call on Prime Minister Dr. Harini Amarasuriya at the Prime Minister’s Office on Monday (August 4).

Prime Minister Amarasuriya extended her appreciation for the High Commissioner’s efforts in strengthening bilateral relations during his tenure, noting the positive momentum in Australia–Sri Lanka cooperation over the past few years.

High Commissioner Stephens commended the Government’s recent initiatives, particularly in governance and economic revival, and reaffirmed Australia’s continued support for Sri Lanka’s development priorities.

The Prime Minister briefed the delegation on key areas of focus for the Government, including:

• Strengthening institutional frameworks
• Reviving previously stalled projects
• The transformative potential of ongoing education reforms

High Commissioner Stephens welcomed these efforts and emphasised Australia’s readiness to partner with Sri Lanka in these areas of reform and progress.

The Australian delegation included:

• Deputy High Commissioner Lalita Kapur
• First Secretary (Development) Sophie Gordon
• Second Secretary (Political) Matthew Lord

The Sri Lankan side was represented by:

• Prime Minister’s Secretary Pradeep Saputhanthri
• Deputy Director of the East Asia Division at the Ministry of Foreign Affairs, Foreign Employment and Tourism, Thiloma Abayajeewa.

Foreign Minister Vijitha Herath reaffirmed the Government’s unwavering commitment to upholding children’s rightsand ensuring a safer and more equitable future for all children in Sri Lanka.

He made these remarks during a meeting with Emma Brigham, the newly appointed UNICEF Representative to Sri Lanka, who presented her credentials at the Foreign Ministry on Monday (August 4).

During their discussion, Minister Herath and Ms. Brigham explored ways to strengthen collaboration between the Sri Lankan Government and UNICEF to protect and promote the rights of children and support their holistic development.

Taking to X (formerly Twitter), Minister Herath said,

“I briefed her on Sri Lanka’s recent economic and political progress, and reaffirmed the Government’s unwavering commitment to upholding children’s rights and building a safer, more equitable future for them.”

Ms. Brigham commended Sri Lanka’s progress on multiple fronts and expressed her intent to work closely with the Government to enhance the well-being of children across the country.

“We look forward to advancing our partnership with UNICEF,” Minister Herath added.

Minister Anura Karunathilake informed Parliament yesterday (August 5) that the President’s Fund had been misused by former Ministers and Members of Parliament to provide financial support for the overseas education of their children, relatives, and associates.

According to the Minister, between 2005 and 2014, substantial amounts of public funds were allocated to finance PhDs and other higher education programmes abroad, under the condition that recipients would return to Sri Lanka and serve the nation. However, no records exist at the Presidential Secretariat to confirm that any of these beneficiaries returned to fulfil that obligation.

“Information is lacking regarding the specific conditions under which these funds were disbursed,” Minister Karunathilake told the House, responding to a question raised by NPP MP Ravindra Bandara.

The Minister went on to name several individuals who allegedly benefitted from these allocations:

• Harshana Supun Rajakaruna, son of former Gampaha District MP Sarath Chandra Rajakaruna
• I.N. Kodituwakku, a relative of former Colombo District MP Karunasena Kodituwakku (2006)
• K. Radhakrishnan, a relative of former National List MP V. Radhakrishnan (2006)
• Dinesh Dodangoda, reportedly through political affiliation (2006)
• K.K. Paranavithana (2006)

The Minister revealed that the total amount disbursed for foreign scholarships from the President’s Fund between 2005 and 2014 was over Rs. 192.7 million.

Breakdown by year:

• 2005 – over Rs. 73 million
• 2006 – over Rs. 65 million
• 2007 – over Rs. 33 million for 42 individuals
• 2008 – over Rs. 11 million for 18 individuals
• 2009 – over Rs. 3 million for 4 individuals
• 2010 – over Rs. 3 million for 3 individuals
• 2011 – over Rs. 1 million for 2 individuals
• 2012 – over Rs. 3 million for 2 individuals
• 2014 – over Rs. 700,000 for 1 individual

Minister Karunathilake stressed that there is no evidence that these funds have been recovered or that recipients met the conditions tied to the scholarships. “After reviewing the financial records, it is clear that these disbursements were made without adequate oversight or accountability,” he stated.

The Government has decided to reduce the insurance coverage for Members of Parliament from Rs. 1 million to Rs. 250,000, effective from the insurance year commencing October 9, 2025, Cabinet Spokesman and Mass Media Minister Dr. Nalinda Jayatissa announced.

Speaking at the weekly Cabinet media briefing held yesterday (August 5), Dr. Jayatissa said the proposal follows a recommendation made by President Anura Kumara Dissanayake during the 2025 Budget speech, which called for a reduction in MPs’ insurance benefits.

He noted that a group insurance policy with a maximum annual coverage of Rs. 1 million per MP had been implemented following Cabinet approval on May 15, 2023. However, in line with the President’s directive to rationalise public expenditure, the benefit will now be limited to Rs. 250,000 per MP per insurance year.

The Cabinet of Ministers has approved the proposal presented by the Minister of Public Security and Parliamentary Affairs to enforce this change.

Dr. Jayatissa also revealed that the existing insurance service provider will be discontinued, and a new insurance provider will be selected through an open process among interested institutions to implement the revised policy.

In a move aimed at enhancing taxpayer compliance and easing the digital filing process, Sri Lanka’s Inland Revenue Department (IRD) has extended the validity period of Personal Identification Numbers (PINs) issued to taxpayers until 30 November 2025. This extension is part of ongoing efforts to digitize tax administration and improve revenue collection amid growing fiscal challenges.

The decision, announced by the IRD in a statement issued on 31 July, applies to individuals, partnerships, and corporate entities required to file tax returns for the 2024/2025 year of assessment. The PIN acts as a critical access key to the Revenue Administration Management Information System (RAMIS)—the IRD’s digital platform for filing returns, making payments, and communicating with tax authorities.

Apart from individual taxpayers, the same PIN grants access to the Authorisation of Staff/Tax Agent portal, allowing companies and partnerships, both resident and non-resident, to authorise employees or agents through Staff Identification Numbers (SSID) to file returns on their behalf.

The IRD reiterated that filing tax returns online is compulsory for all taxpayers under Section 113 of the Inland Revenue Act No. 24 of 2017. This includes those required to submit Simplified Individual Income Tax Returns, standard Individual Returns, Partnership Income Tax Returns, and returns for Resident and Non-Resident Companies and Corporations.

 Taxpayers who have lost their PINs are advised to request a new one using the e-Services feature on the IRD’s official website.

Despite progress in digitalization, the IRD faces considerable challenges in broadening the country’s tax base. Although around 10 million Taxpayer Identification Numbers (TINs) have been issued, IRD officials estimate that only 1.7 to 1.8 million of those belong to adults over 18 who are active in the tax system—highlighting a significant gap in compliance. Since January 2024, it has been mandatory for all adults above 18 to register for TINs in an effort to bring more individuals into the formal tax net.

In its 2024 performance report, the IRD said it had collected 95% of its Rs. 1.07 trillion income tax target, contributing to 39% of total government revenue, while VAT accounted for 50%. However, concerns remain about the department’s ability to meet the 2025 revenue target of Rs. 2,195 billion.

The International Monetary Fund (IMF), in its July 2025 review, stressed that sustained revenue mobilisation is essential to ensure fiscal stability. It called for improvements in tax compliance, tightening tax exemptions, and public financial management, along with better targeting of social support measures to safeguard vulnerable communities.

Sri Lanka is now charging all taxes on foreign parcels coming from online platforms and backlogs have also been cleared, without any de minimis exemptions being given Customs officials said.

“We have cleared all the backlogs,” Additional Customs Director General, Seevali Arukgoda told the parliament’s Committee on Public Finance.

“At the moment individual items are charged on the HS Code. We gave technical advice to the companies that are importing. Now they are being cleared daily.

Before the crisis about 1 to 2 billion rupees of revenues was earned and about 4 to 5 tonnes arrived daily, another customs official said.

Daily shipments have stopped and now shipments are coming weekly about three times, he said.“They have minimized costs and changed their strategies,” the person said.He said there the backlog was partly due to a delay in the relevant companies getting approval from their platforms to pay the higher taxes.

Platforms like AliExpress which stopped low cost shipping to Sri Lanka after the change in customs procedure and the cost of shipping a key cap to Sri Lanka was listed at over 17,000 rupees as of August 05.

COPF Chair Harsha de Silva questioned what happened to the de minimis exemption given by then Finance Minister Mangala Samaraweera.The gazette indicated only an exemption for trade samples, Arukgoda said.

Under de minimis exemption most well governed countries in Europe and East Asia where people have high levels of economic freedoms and innovation de minimis exemptions of 100 to 150 dollars (or Euro) are given.

Under de minimis exemption, all taxes border taxes are exempted. Value added tax is charged in most contries.The US had the highest de minimis exemption of 800 dollars, which President Donald Trump removed amid growing economic nationalism in the country and also hiked import duties in the hope of ending trade deficits, which is an outcome of heavy inward investments into the US.

Since de minimis is an established practice internationally Sri Lanka should also consider an exemption, de Silva said.That is a government policy decision, Arukgoda said.

A committee appointed by President Anura Kumara Dissanayake is looking into the matter and a decision will be taken in the future, Deputy Industries Minister Chathuranga Abeysinghe said.