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Vehicle Importers Slam Customs Irregularities amid Rs. 450Bn Revenue Forecast

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By: Staff Writer

June 10, Colombo (LNW): Sri Lanka’s vehicle importers have raised serious concerns over persistent irregularities in Customs procedures, outdated vehicle valuation regulations, and large-scale tax evasion under former government-backed import schemes. These issues come to light just as the Treasury projects vehicle import tax revenue to reach between Rs. 300–450 billion in 2025, with a strong surge in Letters of Credit (LCs) opened for vehicle imports.

According to Central Bank of Sri Lanka (CBSL) data, the government recorded a 19.42% rise in revenue and grants during the first four months of 2025, reaching Rs. 1,454.67 billion—up from Rs. 1,218.07 billion during the same period last year. Tax revenue alone hit Rs. 463.19 billion in April, largely due to the reopening of vehicle imports. Despite a primary account surplus of Rs. 532.73 billion, the overall budget deficit stood at Rs. 261.61 billion.

However, Vehicle Importers’ Association of Lanka (VIAL) President Indika Sampath Merenchige criticized authorities for relying on a 2016 gazette for vehicle valuation, calling it outdated and ill-suited to today’s market. He urged immediate regulatory reforms and stakeholder engagement, pointing out that regulatory gaps continue to be exploited.

“All vehicle importers are still bound by the 2016 valuation framework. These outdated guidelines, coupled with a lack of consultation, make the system prone to misuse,” Merenchige said, also highlighting that only registered parties are legally permitted to import vehicles.

The situation is further compounded by revelations of massive tax evasion in previous EV import schemes. A parliamentary Committee on Public Accounts (COPA) investigation found the former Secretary to the Ministry of Labour and Foreign Employment responsible for losses exceeding Rs. 2 billion. This was tied to misused permits for fully electric vehicles (EVs), originally meant for Sri Lankans working abroad and sending remittances.

The Auditor General reported that tax revenue losses of Rs. 2.42 billion occurred due to an increase in the luxury tax exemption threshold from Rs. 6 million to Rs. 12 million for 921 EVs. Some permits were issued to individuals who had never traveled abroad or had minimal overseas experience, undermining the program’s intent.

COPA recommended disciplinary action and an internal probe into the irregularities, with Customs confirming fraudulent activities and acknowledging significant losses. Only four of the 925 vehicles remain under investigation, while the rest were released.

Separately, another tax evasion scandal involved two vehicle assembling companies that received excise duty concessions by violating Customs Ordinance provisions. These firms assembled 326 vehicles in bonded warehouses and sold them at inflated market prices, causing an estimated loss of Rs. 103.8 million in 2023.

One such company released vehicles valued at Rs. 6.3 million from Customs and sold them at over Rs. 11.5 million, reaping huge profits while depriving the state of rightful revenue. The matter is now under review by the Attorney General’s Department.

As scrutiny intensifies, vehicle importers are calling for urgent reform, transparency, and strict enforcement to protect both fair traders and state revenue.

East Container Terminal Delays amid Allegations and Equipment Setbacks

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By: Staff Writer

June 10, Colombo (LNW): Sri Lanka aims to complete 50% of construction at the East Container Terminal (ECT) in Colombo Port by the end of 2025, though full completion is now expected in 2027 due to repeated delays, according to Transport, Highways, Ports, and Civil Aviation Minister Bimal Rathnayake.

Speaking in Parliament recently , the Minister cited corruption and political interference as primary reasons for the delay. Originally scheduled for completion in 2026, the ECT project began sluggishly, despite being declared a special development initiative under full ownership of the Sri Lanka Ports Authority (SLPA).

However, controversy has emerged around the project’s stagnation. Shyamal Sumanaratna, co-convener of the Port Trade Union Joint Alliance, alleged that a senior Port Regulatory Authority official is deliberately allowing the terminal to deteriorate. At a press briefing in Colombo, Sumanaratna revealed that multiple attempts to inform the Minister about these concerns were ignored.

He claimed that tenders for essential equipment, such as straddle carriers, have been cancelled for over eight months without reissue—potentially benefiting rival terminals. The delay means even if a new tender is called now, it would take more than a year to import the necessary equipment.

Sumanaratna also disputed the President’s announcement that the ECT would be operational by the end of June, asserting it would realistically take at least another 18 months. He warned that whistleblowing union leaders face disciplinary actions and transfers, but vowed to continue speaking out despite the risks.

The ECT, once completed, will include a 1,400-metre jetty capable of handling three large vessels simultaneously, supported by 12 gantry cranes and 40 transfer cranes. The terminal will span 75 hectares and handle up to three million containers annually, with semi-automated and digital operations. Contractors China Engineering and Access Engineering are tasked with completing the $585 million project.

Meanwhile, the Central Expressway Project (CEP)—another key national infrastructure effort—has also suffered from years of stalled construction. Originally launched in 2020 as a four-year initiative, the CEP has cost Sri Lanka over Rs. 55 billion in penalties due to delays.

In Parliament, Minister Rathnayake condemned the CEP’s mismanagement, calling it “a theft, a fraud, and a tragedy.” The expressway, which stretches 136.9 km from Kadawatha to Dambulla in four sections, has seen only Section 2 (Mirigama to Kurunegala) fully completed.

The Road Development Authority (RDA) stated that work on Section 3 (Pothuhera to Galagedara) is progressing steadily and is expected to be completed by 2026. Preliminary work on Section 1 is ongoing, while Section 4 remains in early planning.

The CEP includes 14 interchanges, three of which are system interchanges, and 12 service interchanges to improve regional connectivity. Despite setbacks, officials assert that both the ECT and CEP remain high-priority projects in the government’s infrastructure agenda.

Future of Provincial Council Elections uncertain amid legal and structural hurdles

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June 10, Colombo (LNW): The scheduling of Provincial Council elections remains in limbo as Sri Lanka’s Deputy Minister for Provincial Councils and Local Government, Prabha Ruwan Senarath, confirmed that a final decision is anticipated in the opening months of next year.

He cited lingering legal complexities and administrative setbacks—chief amongst them the unresolved delimitation process—as primary reasons for the ongoing delay.

Minister Senarath clarified that no elections will take place until these fundamental challenges are thoroughly resolved and a cohesive, legally sound framework for local governance is firmly in place.

This stance follows controversy surrounding a previously submitted delimitation report, which was introduced under the tenure of former Minister Faizer Musthapha but was ultimately discarded after considerable political backlash.

Given the stalemate, the current administration is actively reviewing the possibility of reinstating the previous electoral model whilst reconfiguring the geographical boundaries of provincial councils to reflect more equitable representation.

Yet, the Deputy Minister underscored that the holding of any election must come after a comprehensive reform of the local government system, designed to enhance its capacity to deliver essential services at the community level.

Looking ahead, the government is tentatively eyeing January 2026 to revisit the question of elections. By then, authorities aim to have resolved the myriad legal and procedural issues that currently hinder the democratic process at the provincial level.

Preliminary consultations are reportedly already underway, though Senarath warned that multiple obstacles remain and must be addressed systematically before the nation can return to the polls.

President admits inmates were illegally pardoned amid stark warning on state corruption

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By: Isuru Parakrama

June 10, Colombo (LNW): President Anura Kumara Dissanayake has openly acknowledged that certain inmates were released from custody through unlawful means, implicating officials within the Department of Prisons in a growing scandal that underscores the deepening rot within key arms of the Sri Lankan state.

Addressing the nation during a Poson Poya ceremony held in Mihintale this evening (10), the President delivered a searing critique of institutional corruption, painting a grim picture of state agencies compromised by criminal influence and political negligence.

In his remarks, he expressed grave concern that some public servants—entrusted with upholding the law—have instead become enablers of criminality.

We must confront the truth: some inmates have been released illegally by officers who were supposed to safeguard the integrity of our correctional system,” he stated, referring to an ongoing controversy linked to recent Presidential pardons.

President Dissanayake did not stop at the prisons. He went on to accuse certain police officers of protecting criminals rather than pursuing justice, whilst officials at the Department of Immigration and Emigration stand accused of issuing passports to figures involved in organised crime.

Allegations also extended to the Department of Motor Traffic, where irregularities in documentation and vehicle registration have reportedly become commonplace.

The very institutions that should inspire trust have become sources of anxiety and suspicion for the public,” the President lamented. “There is a breakdown in civic discipline and institutional integrity. People no longer look to state bodies with confidence or peace of mind.

In light of these revelations, Dissanayake proposed the introduction of a nationwide civic responsibility programme aimed at restoring ethical standards and social discipline. He suggested that guidance drawn from Buddhist teachings could offer a moral framework for such a transformation.

The President’s remarks come amid a string of arrests involving public officials linked to various corrupt practices. Investigations into the unauthorised release of prisoners and other alleged misconduct are ongoing, with pressure mounting on authorities to ensure accountability and implement reforms.

Electricity tariff decision for remainder of 2025 expected within days

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June 10, Colombo (LNW): Sri Lankan households and businesses are set to receive clarity on electricity charges for the latter half of the year, as the country’s energy regulator prepares to unveil revised tariffs before the week concludes.

The Public Utilities Commission of Sri Lanka (PUCSL) confirmed that it is now in the final stages of reviewing a proposed adjustment submitted by the Ceylon Electricity Board (CEB).

The evaluation process is nearing completion following an extensive round of public consultations, according to a statement issued by the PUCSL’s Communications Division.

The review includes both written and oral submissions from citizens, industry stakeholders, and consumer advocacy groups in response to the CEB’s proposal, which includes an increase of 18.3 per cent in electricity tariffs.

The Commission noted that beyond gathering public sentiment, technical assessments have been underway to determine whether the proposal aligns with the established tariff-setting framework.

This methodology includes scrutiny of operational costs, investment needs, energy procurement plans, and consumer affordability.

The Commission’s final verdict will establish the pricing structure for electricity consumption from July to December 2025.

Suspended Commissioner General of Prisons remanded over alleged misuse of Presidential Pardon

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June 10, Colombo (LNW): Thushara Upuldeniya, the now-suspended head of Sri Lanka’s prison system, has been remanded in custody until June 11 following his arrest by the Criminal Investigation Department (CID).

The arrest took place yesterday (09) and is part of a broader inquiry into the questionable release of an inmate from Anuradhapura Prison.

Colombo Additional Magistrate Manjula Rathnayake issued the remand order after reviewing the evidence presented by investigators. The court declined to consider a bail application, citing the ongoing nature of the inquiry as a key reason for the refusal. The case has been scheduled to be revisited tomorrow by the regular magistrate.

Upuldeniya’s arrest marks a significant development in a controversy surrounding the release of a prisoner during the Vesak Poya holiday under a Presidential Pardon. Authorities allege that the release may not have followed proper legal protocols, and that Upuldeniya may have played a role in facilitating it.

In a move seen as an attempt to ensure an unbiased investigation, the Cabinet of Ministers, during its weekly meeting presided over by President Anura Kumara Dissanayake, resolved to suspend Upuldeniya from his duties with immediate effect.

Simultaneously, the Superintendent of Anuradhapura Prison, also implicated in the same incident, has been taken into custody by the CID and similarly remanded until June 11.

Sri Lankan Embassy Brings Mobile Consular Services to Tochigi During Vibrant Vesak Celebrations

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The Embassy of Sri Lanka in Japan conducted a mobile consular service in Ashikaga, Tochigi Prefecture, to serve the Sri Lankan community residing in the region. During the program, officials from the Embassy accepted passport applications, driver’s license , provides services such as affidavit issuance , passport endorsements, and other essential consular services. A large number of Sri Lankans availed themselves of the services. 

The consular service coincided with the “Vesak Kalapaya” organized by the Ohana Association in Tochigi to mark the Vesak and Poson Poya celebrations. Over 600 beautifully decorated Vesak lanterns were lit, creating a vibrant and spiritual atmosphere that welcomed both Japanese and Sri Lankans to experience the festivities.

An art competition was also held as part of the celebration. Winning children—both Japanese and Sri Lankan—were presented with school bags in recognition of their creativity and participation.

The Most Venerable Mawathare Chandima Thero, the Chief Incumbent of the Tochigi Paramita Meditation Center, and the Most Venerable Narawila Wijayawansa Thero, the Chief Incumbent of the Saithama Kumagaya Anandameth Viharaya, and the Maha Sangha participated in the religious ceremonies on that occasion.

President embarks on diplomatic mission to Germany

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June 10, Colombo (LNW): President Anura Kumara Dissanayake is set to begin a three-day official visit to Germany today (10), embarking on a key diplomatic engagement at the invitation his German counterpart, President Frank-Walter Steinmeier.

The visit marks an important step in Sri Lanka’s ongoing efforts to strengthen international partnerships and attract investment in a post-crisis recovery landscape.

During his stay, President Dissanayake is expected to engage in a series of high-level discussions with President Steinmeier, senior cabinet members of the German federal government, and influential figures across political and economic circles.

These talks are anticipated to centre on enhancing cooperation in areas such as trade, development, renewable energy, and governance reform.

A particular focus of the visit will be on revitalising bilateral trade relations and identifying avenues for fresh economic collaboration. Germany, as one of Europe’s largest economies and a long-standing development partner, is seen as a crucial ally in Sri Lanka’s bid to boost exports, modernise infrastructure, and foster sustainable economic growth.

Dissanayake is also scheduled to hold meetings with representatives from Germany’s vibrant tourism industry, including travel associations and hospitality stakeholders. The discussions aim to explore opportunities for increasing tourist flows to Sri Lanka, developing joint marketing strategies, and building resilience in the island’s tourism sector, which is gradually recovering from years of disruption.

The delegation accompanying the President includes Minister of Foreign Affairs Vijitha Herath and a group of senior government officials, underscoring the importance Colombo places on this diplomatic mission.

IMF’s Gita Gopinath to visit Sri Lanka amid ongoing economic reforms

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By: Isuru Parakrama

June 10, Colombo (LNW): Dr Gita Gopinath, the First Deputy Managing Director of the International Monetary Fund (IMF), is set to arrive in Sri Lanka for a high-level visit spanning June 15 to 16, 2025, marking a notable occasion in the island’s ongoing economic recovery journey.

Her visit will be the first by an IMF official in this role in two decades, signalling renewed engagement between Sri Lanka and the global financial institution.

Dr Gopinath, a prominent economist and one of the IMF’s top-ranking officials, will serve as the guest of honour at a key policy forum titled Sri Lanka’s Road to Recovery: Debt and Governance, scheduled for June 16. The conference is a collaborative initiative organised by the Ministry of Finance, the Central Bank of Sri Lanka, and the IMF itself.

Taking place at a crucial juncture—halfway through Sri Lanka’s reform programme supported by the IMF—the event aims to reflect on the country’s journey so far. Topics on the agenda include progress in stabilising the macroeconomic environment, navigating complex debt restructuring processes, and instituting much-needed governance reforms.

The forum is expected to bring together senior policymakers, economists, and international observers to assess the strides made and the roadblocks still ahead.

It will provide a platform for open dialogue on sustaining fiscal discipline, strengthening institutions, and promoting transparency—areas seen as vital for long-term recovery and investor confidence.

Dr Gopinath is also scheduled to engage in a series of bilateral meetings during her visit. These discussions will involve senior Sri Lankan government officials and key economic stakeholders, offering an opportunity to review the status of IMF-backed reforms and explore avenues for deeper cooperation.

Thousands of Dansals registered across Sri Lanka marking Poson Poya Day

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June 10, Colombo (LNW): In a nationwide expression of compassion and religious devotion, over 19,000 dansals have been registered to take place across Sri Lanka in celebration of Poson Poya, a sacred day commemorating the introduction of Buddhism to the island.

The announcement was made by Dr Lakshmi Somatunga, Additional Secretary for Public Health Services at the Ministry of Health and Mass Media, who confirmed that 19,185 dansals have officially been registered for this year’s observances.

These traditional food stalls, which offer meals and refreshments free of charge, have long been a hallmark of Poson festivities, reflecting the values of selflessness and community spirit deeply rooted in Sri Lankan culture.

This year’s numbers indicate a widespread and enthusiastic public response, with the highest concentrations reported from Anuradhapura (2,301), Kurunegala (2,114), and Gampaha (1,792). Even in regions where such events have historically been less common, such as Jaffna, Kilinochchi, and Mannar, local organisers have taken steps to participate in the national celebration.

Dr Somatunga highlighted the Ministry’s commitment to ensuring that the spirit of giving is upheld responsibly. Health officers have been deployed across districts to oversee hygiene standards, food safety practices, and environmental cleanliness at the dansal sites. “Whilst the act of giving is noble, it must be done with care to protect public health and ensure the experience is positive for everyone involved,” she noted.

Authorities are particularly focused on the safe preparation, storage and distribution of food, as well as the proper disposal of waste. Awareness campaigns have also been launched to educate dansal organisers on maintaining cleanliness and minimising environmental impact.