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BYD EV Import Scandal Sparks Tax Evasion Probe, Buyers in Limbo

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Sri Lanka’s electric vehicle market has been jolted by a major controversy involving a large consignment of BYD electric vehicles, amid accusations of underreporting motor capacity to evade import duties. Over 1,000 brand-new BYD electric vehicles, currently held at the Colombo Port, are under investigation after Customs authorities raised red flags over discrepancies in motor power ratings. The issue has now sparked confusion among buyers, with questions emerging over tax liabilities, software tampering, and the legality of the imports.

At the heart of the issue is the allegation that the vehicles were declared as having 100-kilowatt (kW) motors—qualifying them for a lower tax bracket—when in reality, they may be equipped with 150 kW motors. This discrepancy significantly affects the import duty calculation, raising concerns of large-scale tax evasion and consumer deception.

Minister of Labour and Deputy Minister of Economic Development Anil Jayantha, addressing the matter during a televised interview, confirmed that the inconsistency came to light following complaints from used vehicle importers. “They pointed out that used vehicles must declare the true motor capacity—often 150 kW—resulting in higher tax. But these brand-new BYD vehicles were cleared on the basis of 100 kW documentation,” he said.

Jayantha said he was presented with both sets of documents and subsequently engaged in discussions with Sri Lanka Customs. The minister noted that an investigation is underway to determine if the actual motor capacity was masked through software or misrepresented through forged documents.

“Tax is imposed based on motor capacity, not output,” he said. “There are serious concerns about whether the software was used to limit motor performance or if the documentation was falsified. Customs will conduct technical verification.”

The controversy has also sparked anxiety among customers who pre-ordered these vehicles. Jayantha acknowledged this and said that in certain cases, financial institutions may recover payments through bank guarantees—if wrongdoing is proven. However, he cautioned that there is no guarantee the importing company will extend such protections to buyers.

Adding to the complexity, Jayantha stated that Customs can review previously cleared shipments for similar discrepancies. “If any violations are found, the importer—not the customer—will be held liable for penalties and unpaid taxes,” he clarified.

As investigations unfold, the case has raised broader questions about transparency in EV imports and the need for stricter verification processes to protect both state revenue and unsuspecting consumers from potential fraud.

Sri Lanka Government Rolls Out Landmark Prison Vocational Training Program

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Sri Lanka is launching an ambitious vocational training program targeting prison inmates, marking a transformative shift in the country’s correctional strategy from punishment to rehabilitation. With a budget allocation of Rs. 100 million (approximately USD 330,000), the initiative is designed to equip prisoners with practical skills, paving the way for their reintegration into society after completing their sentences.

The program, announced by Jagath Weerasinghe, spokesperson for the Department of Prisons, represents the first nationwide effort of its kind. “This is a major step forward in reforming our correctional system,” Weerasinghe said. “The goal is not just to punish, but to give inmates the tools to rebuild their lives once they’re released.”

Sri Lanka’s 36 prisons currently house around 34,000 inmates, a significant proportion of whom are incarcerated for drug-related offenses. The new training program will offer instruction in carpentry, plumbing, agriculture, tailoring, and information technology—skills that are in high demand in both local and international markets.

Authorities believe the initiative will not only provide inmates with marketable skills but also contribute to better prison discipline and lower repeat offending rates by instilling a sense of purpose and hope. Collaboration with private sector companies and NGOs is also in the pipeline, aimed at facilitating job placements and mentorship opportunities for inmates once they are released.

“This represents a shift from a punitive approach to a rehabilitative one,” Weerasinghe added. “We hope it will act as a model for broader reforms across the criminal justice system.” The program will be piloted in select prisons later this year, with plans for expansion based on its impact and demand.

One such example of successful collaboration already in motion is the partnership between the Prisons Department and P.G. Martin Industries (Pvt) Ltd—a local footwear and leather goods manufacturer. Chairman and Managing Director P.G.D. Nimalasiri, a former President of the Sri Lanka Footwear and Leather Products Manufacturers Association, said that his company has been involved in vocational training for prisoners since 2016.

Currently, around 40 inmates at Welikada Prison in Colombo are participating in a six-month training program provided by senior craftsmen from the company. “We are not just teaching them a skill; we are helping them build a future,” Nimalasiri stated. “They learn the entire manufacturing process and, upon completion, begin earning a monthly remuneration. This isn’t charity—it’s recognition of their effort and commitment.”

Nimalasiri also emphasized the urgent need for skilled and unskilled labor in industries like leather production, where workforce shortages persist despite high national unemployment. He advocates for greater investment in AI, training, and upskilling across the sector.

The prison vocational training program is thus not only a progressive step in criminal justice reform but also a potential solution to the country’s skilled labor shortages. By offering inmates a second chance and addressing workforce gaps, the initiative holds promise for long-term social and economic impact.

WEATHER FORECAST FOR 06 August 2025

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Several spells of showers will occur in Western, Sabaragamuwa, Central and North-Western provinces and in Galle and Matara districts.

Showers or thundershowers will occur at a few places in Uva and Eastern provinces after 1.00 p.m.

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

China donates emergency relief supplies worth Rs. 400 mn to assist Sri Lanka’s flood recovery

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August 05, Colombo (LNW): In a significant gesture of solidarity, the Chinese government has extended a major humanitarian donation to Sri Lanka to assist in ongoing efforts to support communities affected by recent flooding across the country.

The aid package, valued at approximately Rs. 400 million, was formally handed over at a ceremony held in Colombo.

The contribution, delivered through the China Aid programme, includes an extensive range of emergency relief supplies such as tent kits, portable generators, water pumps, blankets, and other essential items designed to improve the immediate living conditions of those displaced or impacted by the severe weather.

The official handover took place in the presence of Chinese Ambassador Qi Zhenhong and Sri Lanka’s Secretary to the Ministry of Defence, Air Vice Marshal (Retired) Sampath Thuyacontha. The event served as a symbol of the continuing diplomatic partnership and humanitarian cooperation between the two nations.

Ambassador Qi, speaking at the ceremony, highlighted China’s readiness not only to provide material support but also to share technical knowledge in disaster preparedness, early warning systems, and climate monitoring. He expressed hope for future collaboration in these areas, particularly as natural disasters become more frequent and severe due to changing climate patterns.

Defence Secretary Thuyacontha, receiving the consignment on behalf of the Sri Lankan government, conveyed appreciation for the timely assistance. He remarked that the aid, amounting to 10 million yuan in value, arrives at a critical moment when the country is grappling with the aftermath of widespread flooding and landslides triggered by seasonal rains.

The relief materials are set to be distributed by the National Disaster Relief Services Centre in coordination with local district secretariats. Authorities have pledged that the aid will be delivered promptly to communities in need, especially in the most severely affected regions, where homes, infrastructure, and livelihoods have been heavily disrupted.

Fresh charges filed over alleged escape plot involving underworld kingpin Harak Kata and ex-CID officer

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August 05, Colombo (LNW): A new set of criminal charges has been brought before the Colombo High Court against five individuals, including a widely known underworld suspect, over an alleged plan to flee custody while being held by the Criminal Investigation Department (CID).

The indictment, filed by the Attorney General, accuses the group of conspiring to orchestrate the escape while under state detention.

Among the accused is Nandun Chinthaka Wickramaratne, more commonly known by his alias Harak Kata, who has long been linked to organised criminal activity.

Also named in the indictment are Ravindu Sandeepa Gunasekara, a former police constable attached to the CID, along with Dinesh Tharanga, Ruwan Chamara—also known as Midigama Ruwan—and Sanjeewa Abeysinghe.

The case was taken up before High Court Judge Sujeewa Nishshanka, during which the charges were formally read in open court. The judge ordered that all five defendants have their fingerprints officially recorded as part of the ongoing proceedings. The matter has been fixed for further hearing on September 24.

This is not the first time Harak Kata has faced prosecution. He had previously been indicted alongside two other individuals in a separate case. However, State Counsel Sajith Bandara, appearing on behalf of the prosecution, requested that the earlier indictment be withdrawn due to pending appeals lodged by the accused at the Court of Appeal.

Judge Nishshanka noted that any further action on the previous case would be contingent on the withdrawal of those appeals. Legal counsel representing the defendants informed the court that they intend to file a motion to formally discontinue the appeals in question.

Australia reaffirms commitment to Sri Lanka’s development as High Commissioner bids farewell

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August 05, Colombo (LNW): In a recent meeting at the Prime Minister’s Office, Australia renewed its pledge to support Sri Lanka’s ongoing development efforts, with a particular focus on educational reform and institutional renewal.

The discussion marked a formal farewell for outgoing Australian High Commissioner Paul Stephens, whose tenure has seen a period of deepened engagement between the two nations.

High Commissioner Stephens met with Prime Minister Dr Harini Amarasuriya, who conveyed her appreciation for Australia’s consistent partnership and the High Commissioner’s personal role in enhancing diplomatic and development cooperation.

She noted that his efforts had contributed to a more robust and collaborative relationship across multiple sectors.

During the meeting, the Prime Minister outlined the government’s key priorities, including reviving long-dormant development projects, modernising public institutions, and pushing forward a comprehensive education reform agenda aimed at equipping the next generation with the skills and knowledge needed in a rapidly evolving world.

Australia’s support in these areas, particularly in education and capacity building, has been instrumental in driving forward several grassroots and national-level initiatives.

As the High Commissioner prepares to depart, both sides reaffirmed their mutual commitment to maintaining momentum and building upon the progress achieved in recent years.

The farewell meeting was seen not only as a moment of reflection on past collaboration but also as a reaffirmation of the long-standing ties between Australia and Sri Lanka, grounded in shared values, regional cooperation, and a common vision for inclusive growth.

PUCSL launches full-scale inquiry into February blackout that plunged Sri Lanka into darkness

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August 05, Colombo (LNW): An extensive public hearing is set to take place today to investigate the island-wide power failure that occurred on February 09, 2025, leaving millions without electricity and triggering a cascade of disruptions across the country.

The Public Utilities Commission of Sri Lanka (PUCSL), the national regulator, has announced that the inquiry will run from 8:30 a.m. to 6:00 p.m. at the Bandaranaike Memorial International Conference Hall (BMICH) in Colombo.

This inquiry comes in response to mounting public concern following the major blackout earlier this year, which halted day-to-day activities, disrupted vital services, and inflicted serious economic costs. Businesses, households, hospitals, and critical infrastructure all felt the impact of the sudden and prolonged outage.

PUCSL has stated that the hearing will delve into both the immediate technical failures and the chain of events that exacerbated the situation. According to preliminary findings, transmission operators were unable to supply approximately 5.5 gigawatt-hours of electricity on the day in question, forcing emergency load shedding measures that resulted in an additional shortfall of 4.6 gigawatt-hours. The blackout caused notable financial losses to electricity distribution entities, and raised questions about the overall preparedness of the national grid.

Beyond the technical scope, the Commission is expected to consider the wider social and economic implications of the blackout, including the impact on public trust, commercial activity, and essential services.

The hearing is open to public scrutiny, and citizens who wish to learn more have been invited to contact the PUCSL for further details.

No current threat to national security, says Defence Secretary amid crackdown on organised crime

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August 05, Colombo (LNW): Sri Lanka’s top defence official has confirmed that the country is not facing any active threat to its national security at present, despite a noticeable increase in underworld-related violence in recent months.

Speaking at an event marking China’s contribution of disaster response equipment to Sri Lanka’s Disaster Management Centre, Secretary of Defence Air Vice Marshal (Retd) Sampath Thuyacontha sought to reassure the public, stating that the overall security situation remains stable and under control.

“There is no disruption to national security,” he remarked during the ceremony. “If there were, you wouldn’t have been able to come here today so easily.”

He emphasised that criminal elements operating within the underworld do not fall under the umbrella of national security threats, and that such matters are being dealt with by the Ministry of Public Security.

The Defence Secretary explained that whilst his ministry supports operations related to maintaining law and order, it does so strictly within its designated responsibilities and legal limitations.

“We work closely with the police and other enforcement agencies, but our involvement is bound by the roles assigned to us,” he said.

Addressing the recent rise in gang-related shootings, Thuyacontha acknowledged that the ongoing violence appears to stem from internal turmoil within criminal networks, largely due to the removal of previous political patronage that may have once shielded these groups from prosecution.

“The criminal underworld is in a state of disarray because it no longer enjoys the political protection it once did. That disruption has left them vulnerable, and what you’re seeing now is the fallout from that shift,” he explained. “The Ministry of Public Security has implemented a strategy to deal with these groups, and arrests are being made. The system is responding.”

Thousands of Sri Lankan Military personnel detained after failing to report back to duty

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August 05, Colombo (LNW): A large-scale security operation carried out across Sri Lanka has resulted in the detention of over 3,500 military personnel who had been absent from their posts without official leave, according to an announcement by the Ministry of Defence.

Between February 22 and August 03 this year, a total of 3,504 individuals from the Army, Navy, and Air Force were apprehended as part of a concerted effort to address prolonged unauthorised absences within the armed services.

The majority of those taken into custody—2,937 in total—were members of the Army. In addition, 289 Navy personnel and 278 from the Air Force were also detained during the coordinated operations.

The Ministry revealed that a formal amnesty period had been granted in the previous year, providing an opportunity for those who had gone awol to return to their respective units without facing disciplinary action.

However, many failed to make use of this clemency offer, prompting authorities to launch a systematic campaign to locate and detain defaulters starting in late February.

Defence authorities have reiterated the importance of upholding service obligations and have warned that those who neglect their duties without valid cause will face strict consequences.

Children under 18 to receive free entry to key heritage sites in push to promote cultural awareness

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August 05, Colombo (LNW): In a move aimed at cultivating a deeper appreciation for Sri Lanka’s rich cultural legacy among younger generations, the government has approved a policy granting free access to minors at a range of nationally significant historical sites.

Children below the age of 18 will now be able to visit heritage locations maintained by the Central Cultural Fund (CCF) without any entry charge.

The initiative has received the green light from the CCF’s Board of Governors, signalling a commitment to improving cultural education through direct exposure to the island’s archaeological treasures.

Under this new scheme, 26 major sites overseen by the CCF will be accessible to Sri Lankan children at no cost. These include iconic destinations such as the ancient rock fortress of Sigiriya, the historic citadel of Yapahuwa, and the cave temples of Dambulla—each a cornerstone of the island’s civilisational narrative.

Authorities view this policy not only as a way to encourage educational outings and family visits to cultural landmarks but also as a long-term investment in the preservation of heritage through public engagement.

By sparking interest in the nation’s past at a young age, officials hope to nurture a generation that is more inclined to value and protect these irreplaceable assets.

In addition to domestic children, Deputy Minister of Buddhasasana, Religious and Cultural Affairs, Gamagedara Dissanayake, has indicated that provisions are being explored to extend similar concessions to foreign children, subject to specific guidelines.