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Govt loses over Rs. 1.3 bn in tax revenue due to flawed electric vehicle import scheme

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By: Isuru Parakrama

December 12, Colombo (LNW): A recent audit by the National Audit Office has revealed that the Sri Lankan government has lost approximately Rs. 1,384 million in tax revenue due to a significant increase in the luxury tax exemption limit for electric vehicle imports.

This exemption, initially set at Rs. 6 million, was doubled to Rs. 12 million, resulting in financial losses for the state.

The controversial scheme, which allowed Sri Lankan migrant workers to import electric vehicles, granted the exemption to 510 vehicles, raising questions about the effectiveness and oversight of the programme.

Launched in 2022 by the Ministry of Labour and Foreign Employment, the initiative was designed to incentivise remittances from Sri Lankan workers abroad by encouraging them to import electric vehicles.

According to the audit report, the scheme issued a total of 1,077 permits between September 2022 and June 2024. However, 77 of these permits were later cancelled, and only 510 of the permit holders proceeded with importing vehicles.

The report further indicates that by June 2024, only 375 of the imported vehicles had been successfully registered with the Department of Motor Traffic.

During this period, the scheme facilitated foreign remittances amounting to approximately US$ 121.5 million, while US$ 24.1 million was spent on the importation of the vehicles.

One of the key findings of the audit was the identification of significant lapses in internal controls and irregularities in the permit issuance process.

Several administrative procedures, including the acceptance and verification of applications, as well as the issuance and cancellation of permits, were handled unethically by some officials within the Ministry.

The audit also highlighted that the Ministry had failed to ensure compliance with the necessary eligibility criteria for the permit holders.

For example, permits were issued to four individuals whose foreign employment status could not be verified.

Despite receiving US$ 445,942 in foreign remittances, the Ministry did not carry out the necessary checks to confirm the legality of these funds.

Additionally, the report pointed out that the criteria for the duration of foreign employment required for eligibility were not clearly defined in the official circulars.

This lack of clarity resulted in permits being granted to individuals with minimal overseas employment or those with sporadic foreign travel.

The audit also noted a lack of coordination between the Ministry and other key authorities, such as the Treasury’s Department of Trade and Investment Policy and the Controller of Imports and Exports, which led to further breaches in governance and accountability.

The audit report calls for greater transparency and stricter oversight to ensure that such schemes are properly managed and do not result in the misuse of government resources or policies.

Police deny claims linking Army Intelligence officer to attack on Police officers during protest

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December 12, Colombo (LNW): The Sri Lankan Police have refuted reports circulating on social media and in print, which falsely claimed that the individual responsible for injuring three police officers with a sharp weapon during a protest outside the Ministry of Education on December 02, was an army intelligence officer.

In an official statement, the Police Media Division clarified that these allegations were unsubstantiated and inaccurate.

According to the police, misinformation had spread, suggesting that the Thalangama Police had provided such details to the Kaduwela Magistrate’s Court.

However, after conducting thorough investigations, the police revealed that there was no evidence to support the claim that an army intelligence officer was involved in the incident.

The police have also stated that the Police Special Investigation Unit has been instructed by the Acting Inspector General of Police to look into the matter further.

The investigation will focus on determining whether the individual who appeared in court on the day of the incident had made such a statement.

The protest, which took place in front of the Ministry of Education, was organised by a group of school development officers who were demanding teacher appointments.

During the demonstration, tensions escalated, leading to the injuries of three police officers.

The authorities have urged the public to refrain from spreading unfounded rumours and assured that they are committed to uncovering the truth behind the incident.

Former Sri Lankan diplomat fined after exploiting domestic worker

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December 12, Colombo (LNW): Himalee Arunatilaka, the former Deputy High Commissioner of Sri Lanka to Australia, has been handed a substantial fine of $117,028.80 by the Federal Court, following her conviction for mistreating her domestic worker, Priyanka Danaratna.

Danaratna, a Sri Lankan national, was employed by Arunatilaka at her residence in Canberra between 2016 and 2018.

During this period, she was required to work grueling hours—often exceeding 14 hours a day, seven days a week—without receiving fair compensation.

Over the two years of her employment, Danaratna was paid a mere $11,212.70, a sum far below the legal minimum wage.

The Federal Court ruled that Arunatilaka had breached several key provisions of the Fair Work Act 2009.

These included failing to provide proper pay slips, underpaying wages, and compelling Danaratna to work excessively long hours without adequate rest.

In addition to the fine, Arunatilaka had previously been ordered to pay Danaratna a compensation sum of $374,151.90 for unpaid wages and other entitlements.

The court’s ruling underscored the gravity of the exploitation Danaratna had endured and sought to provide some measure of justice for her.

Arunatilaka, who now holds the position of Sri Lanka’s Permanent Representative to the United Nations in Geneva, was given 60 days to pay the fine.

The case has drawn attention to the issue of mistreatment and exploitation of domestic workers, sparking discussions about worker rights and the need for stronger protections.

Mysterious illness causing fatalities in North identified as Leptospirosis

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December 12, Colombo (LNW): Health authorities have confirmed that the mysterious fever, which has recently spread across the northern part of Sri Lanka and led to the deaths of seven individuals, is caused by Leptospirosis, commonly referred to as ‘rat fever’.

The confirmation follows extensive testing on several samples by the Epidemiology Unit of the Ministry of Health.

The outbreak had initially raised concerns due to its rapid spread and the severity of symptoms, which included high fever and respiratory issues. Authorities were unable to pinpoint the exact cause of the illness for several days, leading to widespread alarm amongst the public.

However, after rigorous laboratory tests, it has now been definitively identified as Leptospirosis, a bacterial infection typically transmitted through contact with water contaminated by the urine of infected animals, particularly rats.

The illness, which is prevalent in tropical regions, has been known to cause severe complications if not treated promptly, including kidney damage, liver failure, and even death.

The Ministry of Health has urged the public, particularly those living in flood-prone areas or working in occupations with high exposure to water, to take preventive measures to avoid infection.

This includes wearing protective clothing, avoiding direct contact with potentially contaminated water, and seeking medical attention if symptoms develop.

Opposition considers bringing no-confidence motion against Speaker over doctorate controversy

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December 12, Colombo (LNW): The Samagi Jana Balawegaya (SJB), is contemplating a no-confidence motion against Speaker Asoka Sapumal Ranwala, citing concerns over the authenticity of his academic qualifications.

This move follows growing scrutiny regarding the legitimacy of his claimed doctorate, which has yet to be substantiated.

SJB lawmaker Ajith P. Perera stated that the Speaker must publicly clarify whether he indeed holds a valid doctorate.

It is crucial for the Speaker to present clear evidence of his qualifications. If he fails to do so and refuses to step down, we will have no choice but to proceed with a no-confidence motion,” Perera declared on Wednesday.

The SJB has also expressed confidence that MPs from the National People’s Power (NPP), who they believe will act with integrity, will join them in supporting the motion should a vote take place.

This suggests that the opposition is hoping to gather enough support across party lines to ensure the Speaker’s removal.

The controversy surrounding Ranwala’s academic credentials gained significant attention after the Parliament’s official website removed the title “Dr.” from his profile.

The SJB MP emphasised that a clarification from the Speaker’s end being delayed and the swaying away of the Cabinet Spokesman (who is responsible for providing clarification from the government’s end) from the question when asked would be problematic, further exacerbating the need to take action.

Prime Minister calls for transformation in Sri Lanka’s education system

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December 12, Colombo (LNW): Prime Minister Harini Amarasuriya has strongly emphasised that education should not be treated as a commodity but rather as a fundamental right that contributes to individual and societal development.

During her address at a workshop held under the theme “Preparing Relevant Strategies to Transform the Existing Education System” at the Colombo Foundation Institute, the Prime Minister stressed the need to shift the prevailing mindset that views education merely as a transactional process.

Education is not something that can be bought or sold,” she said, urging a cultural shift away from the transactional view that education is simply a product to be consumed.

It has become a transaction, and this culture must be changed. We need to understand that education is not just about acquiring knowledge; it is about personal transformation, social change, and a collective development of society as a whole.

In her speech, Prime Minister Amarasuriya highlighted the importance of crafting policies and making decisions based on data that serves the best interests of schoolchildren.

We must approach education as a long-term investment, not something that will yield immediate results,” she explained. “The government is committed to investing in education, but we need to do so with careful consideration, making data-driven decisions that can genuinely improve the system over time.

The workshop, attended by key stakeholders including Deputy Minister of Education Dr. Madura Seneviratne, Secretary to the Ministry of Education Nalaka Kaluwewa, and other educational professionals, was part of the broader efforts to discuss reforms across various educational stages, from early childhood development to higher education and vocational training.

Amarasuriya underscored that the need for reform was critical in order to develop a system that equips students not just with knowledge, but with the skills and sense of social responsibility required to contribute to a greater society.

She continued, “Our education system must open opportunities for students to engage with the world. It should foster a sense of social responsibility. It is not just about personal development, but about contributing to the betterment of society as a whole. We must equip our children with knowledge and skills, but also with the values of empathy, responsibility, and community.

The Prime Minister also noted the importance of fostering a more humane and empathetic approach from public service officers, urging that officials in the education sector treat the public with respect and dignity.

She highlighted concerns raised by the public regarding officers who were perceived as unresponsive, impolite, or disengaged.

We must address these concerns and ensure that our public service officials are not only efficient but also compassionate,” she said.

Prime Minister Amarasuriya concluded by stressing that a reformed education system should be built on clear, well-researched data, and that steps should be taken to eliminate inefficiencies and improve the quality of service in the education sector.

The culture of inefficiency and neglect must end,” she said firmly.

Lanka Milk Foods sets new milestone with record daily milk production at Ambewela Farms

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December 12, Colombo (LNW): Lanka Milk Foods (CWE) PLC (LMF) has achieved a remarkable milestone at its Ambewela Farms, setting a new record by producing an impressive 62,000 litres of milk daily from a single source.

This achievement marks a dramatic rise from the 3,000 litres it initially produced, with the company now consistently delivering a massive 60,000 litres a day.

When LMF took over the Ambewela facility from the state sector in 2001, it began with a modest daily output of fewer than 3,000 litres. Fast forward to today, and the farm now contributes an extraordinary 20 million litres of milk annually to Sri Lanka’s national supply, underscoring the company’s role as a key player in the country’s dairy sector.

The company attributes this success to years of strategic planning, significant investments, and the implementation of cutting-edge farming techniques.

A pivotal development occurred in 2019 when LMF invested Rs. 5 billion to modernise the farm, introducing two automated dairy housing and milking systems.

These systems doubled production capacity within two years, bringing the farm up to world-class standards. Every aspect of the operation, from the comfort of the dairy cows to the sophisticated computerised management systems, reflects the company’s commitment to excellence.

A core component of the farm’s success is its innovative approach to breeding. By employing a state-of-the-art breeding programme using sexed semen from world-renowned bulls, LMF has developed a herd of genetically superior cows capable of producing yields on par with the best commercial herds globally.

These cows, which are capable of producing up to 12,000 litres per 305-day lactation cycle, form the backbone of the farm’s output. To maintain high productivity, LMF has also implemented rigorous health surveillance systems to keep the herd disease-free and healthy.

Nutrition is another key factor in the farm’s success. LMF collaborates with international nutritionists to create precision feeding systems that cater specifically to the needs of high-yielding cows.

Additionally, the farm has cultivated purpose-bred grass varieties on its pastures, optimising the cows’ nutritional intake.

Calf care is also a priority, with advanced feeding and care systems in place to ensure that the young stock grows quickly and reaches maturity at an early age, which contributes to the overall productivity of the herd.

As a result of these comprehensive efforts, the dairy cows at Ambewela Farms now produce an average of up to 40 litres of milk per cow each day.

General Manager of Farms, Sarath Bandara, reflected on the achievement, stating, “This milestone is the culmination of years of dedication, strategic planning, and innovation. By combining international expertise with the passion and commitment of our local teams, we’ve set a new standard for dairy production in Sri Lanka. We are committed to advancing the dairy industry and ensuring national self-sufficiency through improved productivity and quality.

In addition to its own success, LMF is sharing the benefits of its advancements with local farmers. By providing them with high-quality offspring from its superior herd, the company is empowering local dairy producers to improve their productivity and adopt best practices.

Imported rice stocks released to market to alleviate shortage

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December 12, Colombo (LNW): Sri Lanka has begun receiving stocks of rice from private importers, marking the first step towards addressing the ongoing rice shortage that has affected local markets.

The initial shipment, which arrived in the country on yesterday (11), has been cleared by Customs and released into circulation.

Earlier this month (03), the Cabinet of Ministers approved a proposal to allow rice imports without the usual import control permits, in a bid to alleviate the shortage of various rice varieties across the country.

This decision will remain in effect until December 20, 2024.

As a result, importers have started bringing in rice, with the first batch of 75,000 kilograms officially released from Customs on Wednesday.

The shipment includes Samba and White Raw rice, which have been sourced from India.

Representatives from the Essential Food Commodities Importers & Traders Association have confirmed that further rice shipments are expected to arrive in Sri Lanka over the next few days, with additional consignments anticipated today (12) and tomorrow (13).

Lanka Sathosa Chairman, Dr. Samitha Perera, has assured the public that the rice shortage will be addressed as more imported stocks enter the market. He expressed confidence that the arrival of these imported supplies would help stabilise the local rice market.

However, local entrepreneurs are still facing challenges in securing rice supplies. Business owner Chandralal Gunasekera, who also appeared on the programme, highlighted the difficulties his shops have been experiencing in obtaining sufficient rice for sale.

This continues to be a pressing issue for retailers, who are grappling with the tight supply in the face of soaring demand.

Meta services resume after widespread outage affects Instagram and WhatsApp

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December 12, World (LNW): Meta’s popular services, Instagram and WhatsApp, have resumed normal operation after a significant global outage on Wednesday (11) disrupted several of its apps.

Whilst Instagram and WhatsApp have now been restored, Facebook has yet to confirm whether all issues have been fully resolved.

Meta took to X, formerly Twitter, to express its gratitude towards users: “Thanks for bearing with us! We’re 99% of the way there—just doing some last checks. We apologise to those who’ve been affected by the outage,” the company stated.

According to outage-tracking platform Downdetector, more than 22,000 users reported problems with Facebook, while over 18,000 faced difficulties using WhatsApp.

The issues were widespread, with users from the UK, parts of Europe, Asia, Australia, South America, and the United States affected.

Both WhatsApp and Instagram confirmed the resolution of their issues on X. “And we’re back, happy chatting!” WhatsApp tweeted, while Instagram added, “Andddd we’re back—sorry for the wait, and thanks for bearing with us.”

The outages began around 18:00 GMT on Wednesday, as reported by Downdetector, which tracks service disruptions.

Meta quickly acknowledged the issue, revealing that a “technical problem” was hindering some users’ access to its services and promising a swift resolution.

Users experienced a range of issues, from being unable to access the apps entirely to problems with feeds not refreshing for certain individuals. WhatsApp updated users with the message, “We’re aware of some issues accessing WhatsApp. We’re actively working on a solution and starting to see a return to normal for most people. We expect things to be back to normal shortly.”

Meta’s platforms, including Facebook, which boasts over three billion active monthly users, are some of the most widely used in the world. This incident is not the first major outage for Meta. The company’s largest disruption occurred in October 2021 when all four platforms—Facebook, Messenger, WhatsApp, and Instagram—went offline for nearly six hours. During that time, Mark Zuckerberg issued an apology for the inconvenience caused.

Despite the issues, Meta has assured users that services are gradually returning to normal and has thanked them for their patience.

Low-pressure area near Tamil Nadu Coast to further bring showers and strong winds to SL (Dec 12)

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By: Isuru Parakrama

December 12, Colombo (LNW): The low-pressure area over the southwest Bay of Bengal is very likely to continue to move west-northwestwards slowly, towards the Tamil Nadu coast close to Northern Sri Lanka during the next 24 hours, the Department of Meteorology said in its daily weather forecast today (12).

Showers or thundershowers will occur at times in Northern, North-central, Eastern, North-western and Western provinces. Fairly heavy showers about 75mm are likely at some places in Northern province.

Showers or thundershowers may occur at several places elsewhere during the evening or night.

Misty conditions can be expected in Central, Sabaragamuwa, Southern, and Uva provinces during the morning.

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

Marine Weather:

Naval and fishing communities are warned not to venture to the deep and shallow sea areas off the coast extending from Puttalam to Mullaitivu via Kankasanthurai and Mannar today (December 12).
Condition of Rain:
Showers will occur at times in the sea areas extending from Trincomalee to Puttalam via Kankasanthurai and Mannar.Showers or thundershowers will occur at a few places in the other sea areas around the island.
Winds:
Winds will be North-easterly to North-westerly in the sea areas extending from Trincomalee to Galle via Kankasanthurai and Colombo. Wind speed will be (30-40)kmph. Wind speed can increase up to (50-60) kmph at times in the sea areas extending from Trincomalee to Puttalam via Kankasanthurai and up to 50kmph in the sea areas extending from Puttalam to Galle via Colombo. Winds will be variable in direction in the other sea areas around the island and wind speed will be (25-35) kmph.
State of Sea:
The deep and shallow sea areas off the coast extending from Puttalam to Mullaittivu via Mannar and Kankasanthurai will be rough to very rough at times and the sea areas extending from Puttalam to Galle via Colombo can be fairly rough at times. The other sea areas around the island will be moderate. Temporarily strong gusty winds and very rough seas can be expected during thundershowers.