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NPP alleges corruption in Excise Dept over bar permits, security sticker scandal: Some officers solicited Rs. 20 mn?

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By: Isuru Parakrama

September 30, Colombo (LNW): National People’s Power (NPP) stalwart former MP Wasantha Samarasinghe has accused certain officials within the Excise Department of soliciting bribes of up to Rs. 20 million in exchange for bar permits, revealing what he claims is a web of corruption.

During a press briefing yesterday (29), Samarasinghe alleged that permits were issued selectively, favouring those who paid bribes while denying applications from individuals who refused to participate in the illicit dealings.

Samarasinghe, an Executive Council member of the NPP, further claimed that his party has gathered substantial evidence, including details of the establishments involved and audio recordings of the transactions between Excise officers and permit seekers.

He expressed concerns over the significant financial losses the state has incurred as a result of these corrupt practices, and vowed that the NPP is preparing to take legal action against the officials implicated.

This alleged corruption is not the first controversy to engulf the Excise Department. Former parliamentarian Gamini Waleboda, addressing the media over the weekend, raised concerns about Excise officers involved in another scandal.

He referred to a recent case involving counterfeit security stickers on liquor bottles, suggesting that some of the officers linked to the fraudulent scheme are attempting to flee the country to avoid prosecution.

Waleboda emphasised that both the President and the Criminal Investigation Department (CID) of the Police will be informed of the situation, and he called for stringent measures to ensure that those involved are brought to justice.

The fake security sticker scandal has already raised alarm over the integrity of the excise and tax system, and the potential flight of the accused officers adds urgency to the situation.

With the NPP poised to take legal action and government authorities being alerted, further investigations into these corrupt practices are expected in the coming weeks.

The extent of the financial damage caused to the state, as well as the potential for more fraudulent activities to be uncovered, remains a pressing concern.

Former MPs ordered to return pistols issued for personal security

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By: Isuru Parakrama

September 30, Colombo (LNW): Former members of parliament have been instructed to return the pistols issued to them for personal security to the Ministry of Defence immediately, according to informed sources.

Separate letters have been sent by parliamentary authorities to former MPs who had been issued firearms, requesting their prompt return.

It has been reported that more than 100 MPs from the recently dissolved parliament were provided with pistols as part of personal protection measures.

This development comes after the previous government allowed former MPs to retain at least two firearms, citing the need for heightened security due to rising violence across the country.

In a media briefing held in August before the presidential election, then Cabinet Spokesman Bandula Gunawardana confirmed the policy, stating that the government’s decision was aimed at addressing the growing concerns over safety and violence.

The initiative was introduced as a precautionary measure in light of the increasing incidents of unrest, particularly targeting politicians.

However, uncertainty looms over whether the current government will maintain this policy.

While the former administration’s decision was met with some approval, the new leadership has yet to announce if it will continue to allow former parliamentarians to keep their firearms.

Defence officials have emphasised the need for compliance, stressing that the collection of the pistols is an important step in managing the nation’s security landscape under the new government.

The retrieval of these weapons is seen as part of a broader initiative to review and reform security policies introduced by previous administrations.

Price drop for egg-based dishes as hotels slash prices following egg cost reduction

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By: Isuru Parakrama

September 30, Colombo (LNW): The All-Ceylon Hotel and Eatery Owners’ Association (ACHEOA) has announced a significant reduction in the prices of popular egg-based food items, effective from midnight on the 29th.

Harshana Rukshan, President of the association, confirmed that the price cut comes in response to the recent decrease in the cost of eggs, which has created an opportunity for eateries to pass these savings onto customers.

Among the items seeing a reduction in price are rice packets, kottu, and the ever-popular egg rice and curry, all of which have been reduced by Rs. 40.

Additionally, the price of egg rolls has dropped by Rs. 20, and an egg rotti will now be available at a Rs. 30 reduction.

Rukshan emphasised that these cuts aim to ensure that consumers benefit directly from the drop in egg prices, which had previously driven up the cost of these commonly consumed dishes.

He further urged the Consumer Affairs Authority (CAA) to take action by inspecting establishments that have failed to implement the new pricing structure.

Rukshan called on all restaurants and eateries to comply with the reductions, stating that the association was committed to ensuring affordability for the public amidst changing market conditions.

This move has been met with a positive response from customers, especially as inflation has significantly affected the cost of food in recent months.

The reduction in the prices of staple items like kottu and rice packets is expected to bring much-needed relief to everyday consumers.

However, Rukshan also highlighted the need for continuous monitoring of egg prices and a concerted effort by restaurant owners to adapt swiftly to changes in ingredient costs.

Defence Secretary assures enhanced national security measures amid disinformation concerns

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By: Isuru Parakrama

September 30, Colombo (LNW): Defence Secretary Sampath Thuyakontha has reassured the public that despite the absence of an active state of emergency, the President retains full authority to deploy the Tri-Forces to ensure public safety, should circumstances demand it.

This clarification comes in response to disinformation circulating on social media concerning recent gazette notifications, which, according to the Secretary, have been part of a regular process.

Speaking at a media briefing in Kandy on Saturday (28) after paying respects at the Sacred Tooth Relic, Thuyakontha stressed the importance of accurate information.

He clarified that his recent appointment carries significant responsibilities, which he is approaching with a clear understanding of the tasks ahead.

The Defence Secretary outlined the government’s comprehensive plans to strengthen national security, stating that all potential threats to the country have been identified.

He confirmed that strategies are in place, developed under the President’s guidance, to counter unconventional threats that may disrupt public life.

These measures include modernising the Tri-Forces by providing advanced technology and training to improve their operational efficiency.

Additionally, Thuyakontha addressed the ongoing discussions about potentially removing Army camps in the North, as well as the need to further equip the Air Force with modern technology, keeping in mind the country’s economic challenges.

He also highlighted the commitment to addressing the concerns of disabled war veterans within the armed forces, vowing transparency in resolving these issues.

During his visit to the Malwatte Maha Vihara, Thuyakontha also received blessings from the Chief Prelate, Most Venerable Thibbotuwawe Sri Siddhartha Sumangala Mahanayake Thera.

In his remarks, the Chief Prelate acknowledged the peaceful transition following the Presidential Election, despite fears of unrest.

He noted that the current stable situation is something to be recognised by all, while also pointing out the potential rise in crime as poverty increases in the country.

SL Navy apprehends 17 Indian fishermen for illegal fishing in Mannar waters

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By: Isuru Parakrama

September 30, Colombo (LNW): The Sri Lanka Navy has seized two Indian fishing vessels and arrested 17 Indian fishermen caught illegally fishing in Sri Lankan waters during a special operation conducted off the coast of Mannar.

The North Central Naval Command, during a routine patrol yesterday (29), spotted a cluster of Indian fishing boats engaging in illegal activities within Sri Lankan maritime boundaries.

Responding swiftly, the Northern Naval Command deployed Fast Attack Craft, while the North Central Naval Command dispatched Inshore Patrol Craft to intercept and drive away the fishing boats.

Despite efforts to disperse the intruding vessels, two Indian boats remained within Sri Lankan waters, leading to their seizure and the subsequent apprehension of 17 Indian fishermen.

The detained individuals and their boats were taken to Talaimannar Pier and are expected to be handed over to the Mannar Fisheries Inspector for further legal proceedings.

This incident marks a continuation of Sri Lanka’s efforts to protect its maritime resources from illegal fishing activities. As of this operation, the Sri Lanka Navy has detained 55 Indian fishing boats and apprehended 413 Indian fishermen for poaching in 2024 alone.

All those caught have been handed over to the relevant authorities for legal action, underscoring the country’s commitment to safeguarding its fisheries and maritime laws.

The frequent occurrence of such incidents has long been a source of tension between Sri Lanka and India, particularly concerning the livelihoods of fishermen.

However, Sri Lanka maintains strict enforcement of its laws to preserve marine biodiversity and the fishing industry that is vital to coastal communities.

Sri Lanka rises to third in WTC standings after crushing series win over New Zealand

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September 30, Colombo (LNW): Sri Lanka has secured a dominant 2-0 series victory over New Zealand, capped off by a commanding win by an innings and 154 runs in the second Test at Galle.

This triumph has propelled the island nation to third place in the ICC World Test Championship (WTC) 2023-25 standings.

Following this series, Sri Lanka’s record stands at five wins and four losses across nine matches, giving them a points percentage (PCT) of 55.56.

This places them just behind Australia, which holds second place with a PCT of 62.50, having recorded eight wins, three losses, and a draw in 12 Tests.

India remains at the top, with seven victories, two losses, and a draw, boasting a PCT of 71.67.

New Zealand, on the other hand, has tumbled down to seventh place, with three wins and five losses in eight Tests, holding a PCT of 37.50.

Sri Lanka’s path to the top two remains challenging but not impossible. The team has four more Tests remaining in this WTC cycle—two away against South Africa later this year, and two home matches against Australia early next year.

To secure a place in the WTC final, Sri Lanka must surpass the points percentage of either India or Australia.

Winning the home series against Australia could significantly impact their chances, as victories would directly affect Australia’s standing.

In the second Test, Sri Lanka elected to bat first, posting an imposing total of 602/5 declared after nearly two days at the crease.

Centuries came from Dinesh Chandimal (116), Kamindu Mendis (182), and Kusal Mendis (106), with Kamindu’s knock being particularly impressive. New Zealand’s Glenn Phillips was the pick of the bowlers, claiming 3/141.

New Zealand’s response with the bat faltered dramatically. On a pitch favouring spinners, the Kiwis managed a meagre 88 in their first innings, with Mitchell Santner’s 29 being the highest contribution.

Sri Lankan spinner Prabath Jayasuriya was exceptional once again, claiming 6/42, while debutant Nishan Peiris also impressed with 3/33.

Sri Lanka’s mammoth lead of 514 runs placed them in a commanding position, with the first-innings lead ranking as the fifth-largest in Test history.

New Zealand showed some resilience in their second innings, with Devon Conway (61), Kane Williamson (46), and Tom Blundell (47*) among the runs. The Kiwis ended the third day at 199/5, still trailing by 315 runs.

The fourth day saw fighting half-centuries from Blundell (60), Glenn Phillips (78), and Santner (67), but these efforts merely delayed the inevitable. Sri Lanka bowled New Zealand out for 360, sealing victory by an innings and 154 runs.

Peiris took a second-innings six-wicket haul, ending with figures of 6/170, while Jayasuriya added three more wickets to his tally. Kamindu Mendis was named Player of the Match for his outstanding innings, while Jayasuriya earned the Player of the Series award, having taken 18 wickets across both Tests.

This resounding win has bolstered Sri Lanka’s WTC campaign, and with key series ahead, the team will be hopeful of securing a place in the final.

Stakeholders disgusted over red tape at DRC

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By Duruthu Edirimuni Chandrasekera

Questions are being raised by stakeholders on the bureaucratic red tape and general lethargy by the employees of the Department of Registrar of Companies (DRC) who in turn, blame issues on the new IT systems at the department.

A myriad of issues are plaguing this institution, where the delays in incorporating companies stand foremost and the organisation is currently headless.

Six years ago, the DRC deployed KPMG to digitalise its functions with a Rs. 35 million project. KPMG managed to digitalise and computerise the functions in phase one of the eRoC system project in 2018. By 2021 the DRC was completely automated, becoming the first 100 per cent paperless government organisation in the country, eliminating bribery and corruption.

Unravelling some of the issues, Ganesh Wijenayake, Consulting Project Manager KPMG e Registrar of Companies Project (eRoC) told The Sunday Times Business that there are no major issues with the system now. “This was awarded two prestigious gold awards at the National Project Management Excellence Awards in 2023. The real problem in delays in servicing the public is the lethargic approach of one or two officers who manage incorporations as well as huge delays in Public Contract Registrations. As of the end of the day (September 19) over 630 incorporations are pending. The system is capable of completing the entire incorporation process within a day but the lethargic attitude of a couple of officers creates panic at the DRC.”

Since July 7, the current Registrar General of Companies (RGC) from the Industries Ministry has been absent, complicating the Department’s operations and Companies Act No 7 of 2007 regulations, Mr. Wijenayake noted adding that from 1938 until the system was introduced in 2018 the companies incorporated in Sri Lanka were less than 96,000. Sri Lanka’s paperless system, introduced in 2018, has incorporated over 110,200 companies, registered over 223,000 annual returns, and generated over Rs. 4.7 billion in revenue for the Department of Revenue.

“At the beginning of this year, the former RGC transferred over 22 senior staff members without replacements nor succession training programmes for newcomers. Apart from the non-trained staff, the required vacancies were not filled,” Mr. Wijenayake said.

Company secretaries in the DRC are experiencing delays in registering companies due to internal administrative issues and bureaucracy. Some staff is unable to register online due to system issues in the new system.  Jayasanka Perera, a Company Secretary, said that more than six years ago, everything was done manually. Now their ‘work arrangements’ have changed. “This delay is a big issue for us due to this,” he said.

Before the earlier mention of transfers, the incorporation time of a company was one day or a maximum of two days if all the details were correct, Mr. Wijenaike noted. Form 15 backlogs were less than 300 which is almost the daily submission rate.

Both Mr. Wijenayake and Mr. Perera said that public visits have been limited to one day, per week. “We can only go to DRC on Wednesday,” Mr. Wijenayake noted, adding that the issues related to data migration from old physical files do cause some issues which are corrected within a day or two. He also noted that for the first time in the country, the instant issuance for certified copies and file searches for documentation are provided through this system.

ROC has issued about 220,000 online certified copies with real-time validation. Before this system, it took weeks or months to obtain a certified copy against the instant issuance.

“This eROC project failed a few times before KPMG took over and the Government has lost more than Rs.13 million due to ignorance in project management. These forces are still active and trying to sabotage this valuable project by causing problems, delaying work, and introducing unwarranted procedures to create public hate against this system,” Mr. Wijenayake alleged.

Several attempts at contacting the DRC management by The Sunday Times business failed on both Thursday and Friday.

Source: Sunday Times

Heavy rain, strong winds, rough seas expected: Advisory issued for southwestern deep sea & island regions amid active cloud mass formation

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By: Isuru Parakrama

September 30, Colombo (LNW): Showers or thundershowers will occur at several places over most parts of the Island during the afternoon or night, with heavy showers about 100 mm being expected to occur at some places in Western, Sabaragamuwa, Central, Southern and North-western provinces, the Department of Meteorology said in its daily weather forecast today (30).

Showers may occur in Southern province and in Batticaloa and Ampara districts during the morning too.

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

Marine Weather:

Condition of Rain:
Showers or thundershowers may occur at several places in the sea areas around the island during the afternoon or night. Showers may occur at several places in the sea areas off the coast extending from Galle to Batticaloa via Hambantota and Pottuvil.
Winds:
Winds will be South-easterly or variable in direction in the sea areas around the island and wind speed will be (25-35) kmph.
State of Sea:
The sea areas around the island can be slight to moderate. Temporarily strong gusty winds and very rough seas can be expected during thundershowers.

Sri Lanka Original Narrative Summary: 30/09

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  1. Commissioner General of Elections Saman Sri Ratnayake announces the President has approved Rs. 11 billion for the 2024 General Election: This was disclosed after discussions on election preparations with District Secretaries, Deputy District Secretaries, Returning Officers, and Election Commissioners: Two meetings were held at the Election Commission Office to coordinate preliminary arrangements for the upcoming parliamentary elections.
  2. Former Opposition Leader Sajith Premadasa congratulates the Sri Lankan Cricket team on what he described as ‘a fantastic win’ in the second Test, sealing the series against New Zealand: praises the team for its brilliant performances across the board, and expresses confidence that this is just the beginning of many more victories ahead.
  3. SLPP National Organiser Namal Rajapaksa announces plans to prioritise young candidates, including provincial and local government representatives, in the upcoming general election: highlights a focus on promoting leaders under 50 and filling vacant district and electoral organiser positions within the party to encourage young leadership: These efforts aim to provide greater opportunities for youth in politics.
  4. Minister Vijitha Herath has been appointed as President Anura Kumara Dissanayake’s representative to the Constitutional Council, replacing Nimal Siripala de Silva: Prime Minister Dr. Harini Amarasuriya also joins the Council, which will continue functioning despite Parliament’s dissolution: The Council, including members such as Sajith Premadasa and Kabir Hashim, will meet on 9th October under the new President’s leadership.
  5. Sri Lanka Police warn bank customers not to share their One Time Passwords (OTP) with anyone, following a rise in serious financial scams: emphasise that OTPs provided by banks should remain confidential to protect against fraud.
  6. National Development Bank (NDB) becomes the first Sri Lankan bank to surpass 100,000 YouTube subscribers, reflecting its commitment to digital innovation: This achievement complements NDB’s 58% pre-tax profit growth for 1H’24, driven by strong net interest income: NDB’s YouTube channel offers financial insights and educational content, positioning the bank as a leader in digital customer engagement.
  7. A committee of experts recommends awarding full marks to all students for the three leaked questions in the 2024 Grade 5 Scholarship Examination: The Examinations Department adopted this solution, avoiding a repeat exam to prevent stress for the young students: The questions had circulated via social media before the exam, prompting an investigation by the Criminal Investigation Department.
  8. The Ministry of Defence clarifies the motivation incentive allowance for tri forces personnel has been discontinued only for those previously assigned to former VIPs, as their duties ended on 22 September 2024: The allowance remains in place for personnel protecting the Chief of Defence Staff, tri forces commanders, and former Presidents: There is no change to these ongoing payments.
  9. The All-Ceylon Hotel and Eatery Owners’ Association announces prices for egg-based products, including rice packets, kottu, and egg rice and curry, will be reduced by Rs 40 from 29th September midnight, following a recent drop in egg prices: Additionally, egg rolls will decrease by Rs 20, and egg rotti will see a Rs 30 reduction.
  10. Sri Lanka Cricket (SLC) extends Sanath Jayasuriya’s tenure as interim head coach for another year: Initially appointed in July 2024 after Chris Silverwood’s departure, Jayasuriya led the team through key series and now continues while SLC searches for a permanent coach: His role follows a disappointing T20 World Cup campaign, prompting a reassessment of the team’s strategy.

Ironwood Capitals Partially Exits from Colombo Coffee Company amidst Coffee growth

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By: Staff Writer

September 29, Colombo (LNW): Sri Lanka’s coffee industry is experiencing a resurgence, driven by favorable geography, climate, and growing investments. The global specialty coffee market’s expansion is boosting the country’s potential as a key player.

By 2029, the Sri Lankan coffee market is projected to grow by 10.05%, reaching a market value of US $106.50 million. Revenue in 2024 is expected to be $6.64 million, with an annual growth rate of 8.79%, increasing to $10.12 million by 2029.

The Market Development Facility (MDF), an Australian initiative, is partnering with the private sector to support this growth by enhancing coffee production and improving sourcing and processing.

Coffee consumption in Sri Lanka is anticipated to rise slightly, from 7,000 metric tons in 2023 to 7,100 metric tons by 2028. However, production is expected to decrease from 36,000 to 35,000 bags during this period.

Despite these modest figures, the number of coffee consumers in Sri Lanka is projected to reach 630,100 by 2029, with smallholder farmers driving 80% of production.

Private equity specialists Ironwood Capital Partners, announced a partial exit from its investment in the Colombo Coffee Company group which also includes Barista Coffee Lanka.

A consortium of investors brought together by Capital Alliance Holdings Ltd. (CAL) has acquired a 20% stake in the group.

Colombo Coffee Company, Sri Lanka’s leading Coffee solutions provider, serves 4 out of every 5large hotels in the country. It represents renowned international coffee brands such as Lavazza,

LaCimbali, Gaggia, and also markets its locally-developed and sourced coffee brand, Toscana

Ceylon. Barista Coffee Lanka, part of the same group, is the largest coffee chain in the country with over 40 retail outlets.

Ironwood originally invested in Colombo Coffee Company in 2016, partnering with the management team to accelerate growth, drive innovation, and expand into new markets.

Ironwood Capital Partners Managing Partner Hiran Embuldeniya said: “Through the collective efforts of the group, we have achieved a market-leading position in both the B2B and retail coffee sectors.

Bringing along the CAL Consortium will help us cement our market position and help us expand into new areas. This investment reflects our commitment to driving long-term value creation. We look forward to the next chapter of growth for the group, and we remain confident in the company’s continued success.”

CAL Group CEO Kanishke Mannakkara said: “We are excited to be joining hands with ColomboCoffee Company and its shareholders. This company has emerged as a category leader within the coffee sector in Sri Lanka and has the potential to do exciting things in the future. We look forward to being a part of this story.”

Colombo Coffee Company Founder and Director Ajith Dias said: “This has been a long journey of over 20 years for us. I am proud to see Colombo Coffee Company today in a leadership position and bringing in the right partnerships has been key to that success. I look forward to the next chapter in our journey with our new partners.”