• Harshana says Sri Lanka has negotiated highest tariff reduction from US; Anil says talks to reduce more
• Impact of US tariff expected by economist to affect 3% export GDP; 30% to be added to current rates
• Exporters say Vietnam, Bangladesh still a challenge to Sri Lanka; India’s tariff could also be a problem
• AKD Govt. foreign policy, geopolitical sense put to test by Trump’s stance on BRICS and Chinese trade
• UK Govt.’s announcement on revised trade policy a relief to Sri Lanka, but will start only in early 2026
• 5% economic growth rate needed to meet 2028 debt payments, so far only 3.5% projected for this year
• Central Bank records a drop of $ 206 m in foreign reserves to $ 6,080 m, 3.3%, in June 
• Imposing 18% VAT on a list of digital services sparks debate; Govt. mulls introducing property tax in ’27
• AKD notes challenges in confronting issues within Govt. when ensuring justice for Easter Sunday victims
• Ananda makes revelations on Easter attacks probe in House, says Pillayan was aware while in prison
• CID misled in probe into murder of 2 Police personnel in Vavunathivu in 2018; intel officer arrested
• Doubts over Sarah Jasmin’s DNA tests; Mujibur claims Sarah is alive, claims evidence of Zahran’s wife
• Questions related to probe posed to Deputy Minister of Defence who was Eastern Commander at the time
• Bimal claims ‘objective situation’ behind executing Easter Sunday attacks to pave the way to grab power
• Probe into Pillayan’s associate Iniya Bharathi, who is in custody, reveals details about more incidents
• Refusal of Prez’s Office to provide details under RTI criticised; Govt. to prepare to hold delayed PC Polls
• Corruption probes on over 400 files, Police re-opens 1,000 files; CID probes politicos linked to bond scam
• Opposition parties look at forming coalition against ‘suppression’; probe commences targeting Sajith
• Wimal launches song amidst probes by CIABOC, CID; ‘Yahapalana’ report resurfaces on Basil’s allegations
• SM faces food problem in prison as family fails to make request; Mahindananda no longer in ‘jumper’
• Court says Rajitha could be arrested without warrant; Rajitha to appear before CIABOC on Tuesday
• Complaint to CIABOC against Speaker over residence, vehicles; House denies allegations, explains
• Jagath publicises MPs’ monthly salary slip; questions arise over income tax paid by MPs, RTI filed
• HRCSL gets tough with State institutions on recommendations; more staff cuts for MR, updates diary

Last week, last Wednesday (9) to be precise, marked three years since the ouster of an Executive President with the backing of a two-thirds majority in Parliament by a people’s uprising. 

The date 9 July 2022 remains a turning point in Sri Lanka’s socio-political and economic history as the ‘Aragalaya’ people’s protest movement stood against one of the most powerful regimes, bringing about a regime change in response to the economic bankruptcy faced by the country. 

The issue of economic mismanagement resulted in high costs, shortages of essential commodities, and power cuts that went on sometimes for 13 hours, resulting in people from across the country taking to the streets shouting ‘enough is enough’ and ‘go home’. 

As such, 9 July 2022 will forever be a reminder of the power of the people as well as a key lesson for all politicians to realise that, regardless of the level of power wielded, failing the nation will definitely result in a public outcry.

The changes propelled by the 9 July 2022 people’s uprising in fact paved the way for the victory of the Janatha Vimukthi Peramuna (JVP)-led National People’s Power (NPP) at last year’s Presidential and Parliamentary Elections. President Anura Kumara Dissanayake (AKD) and his JVP/NPP Government therefore are well aware of the flip side of popular mandates and landslide victories. 

It is therefore essential for the Government to ensure policy certainty, provide clarity on key areas, especially the economy, and steer the country from a fragile economy to that of economic prosperity.

It is in such a backdrop that Sri Lanka has been hit with a 30% tariff by the United States (US), pushed by US President Donald Trump, and interestingly on 9 July 2025.

Facing tariffs

Under the new measures, imports from Sri Lanka to the US will see duties rise to 30%, effective from 1 August.

As soon as Trump’s letter was made public, Deputy Minister of Foreign Affairs Arun Hemachandra said:  “This is a positive moment for Sri Lanka.” He noted that the US had reduced import tariffs on Sri Lankan goods from 44% in April to 30% in July – the largest cut among all listed countries.

Hemachandra went on to attribute the breakthrough to “quiet, determined diplomacy” and the strengthening of bilateral ties. He also thanked the US administration for its constructive engagement.

President AKD meanwhile convened a discussion on Thursday (10) at the Presidential Secretariat with key officials involved in ongoing trade negotiations with the US. The meeting focused on Sri Lanka’s position regarding the proposed US import tariffs.

Next steps

A press conference was convened on Thursday where Finance Ministry Secretary Harshana Suriyapperuma outlined next steps, stating that Sri Lanka will continue discussions with the US on the 30% trade tariff until the 1 August deadline.

Suriyapperuma has also added that the reduction of the 44% tariff imposed by the US to 30% was possible due to the negotiations of the Sri Lankan Government with various parties. Sri Lanka has been identified as one of the countries to receive the highest tariff reductions from the US among the nations involved in recent trade negotiations.

Meanwhile, Deputy Minister of Economic Development Anil Jayantha Fernando informed Parliament on Friday (11) that Sri Lanka intended to continue discussions with the US authorities until the 1 August deadline to further reduce the revised trade tariffs. He explained that in its letter, the US Government had stated that a 30% tax would be levied on Sri Lankan exports if Sri Lanka failed to enter into a bilateral trade agreement before 1 August.

“Sri Lanka is one country that has received this letter. Among the letters sent to 25 countries, Sri Lanka is the nation that has received the highest concession. We intend to continue talks until the 1 August deadline and attempt to further reduce the tariffs,” Fernando told Parliament.

Senior Economic Adviser to the President Duminda Hulangamuwa meanwhile told the media last week that the Government had no plans to retaliate by increasing tariffs on US goods in response to the 30% tariff currently imposed on Sri Lankan exports.

Tariff impact

However, at the press conference held on Thursday, the Government also noted that the new 30% tariff would be in addition to the existing tariffs imposed by the US on Sri Lankan exports.

An apparel industry expert told ‘The Black Box’ that the latest move by the US would result in a tariff being imposed above the existing tariffs. “For example, an existing tariff of 16.65% on an export commodity to the US will be increased by 30% and the new tariff will stand at 46.65%,” the official explained, adding that countries like Vietnam could have an edge over Sri Lanka given the lower tariff imposed by the US on Vietnamese exports. 

“Another factor that should be kept in mind is that despite Bangladesh being imposed a 35% tariff, which is 5% higher than Sri Lanka, production costs in Bangladesh are still lower than in Sri Lanka. Therefore, countries like Vietnam, Bangladesh, and even India could pose a formidable challenge for Sri Lankan exporters,” they further noted. 

Additionally, given that Sri Lanka is still on an economic recovery path, unable to provide attractive financial incentive packages to businesses and investors, despite the lowering of the US tariff from 44% to 30%, it could still be challenging for exports from Sri Lanka to meet set targets.

According to Economist Dhananath Fernando, following the new US trade tariff, the challenge to the country’s exports sector will stand at around 3% of the GDP. 

Be that as it may, the US trade tariff issue, while playing a decisive role in Sri Lanka’s exports industry and thereby on the country’s overall economic recovery path, has also put to test the AKD Government’s foreign policy as well as its strength in balancing and managing geopolitical sensitivities.

BRICS threat

US President Trump has already noted that an additional 10% tariff will be imposed on countries that are supportive of BRICS. Sri Lanka has meanwhile expressed interest in joining BRICS and maintains close ties with BRICS member nations. Sri Lanka had in fact sent a letter last October articulating its interest in closer alignment with BRICS.

Foreign Affairs Minister Vijitha Herath meanwhile had engaged in discussions with Russian Minister of Foreign Affairs Sergey Lavrov on the sidelines of the 58th ASEAN Foreign Ministers’ Meeting in Malaysia. A statement by Sri Lanka’s Foreign Ministry has stated that the two State officials had discussed pressing issues on Lankan-Russian relations and collaboration on international platforms.

Given Sri Lanka’s dynamics with BRICS and its member nations, it is evident that the AKD Government will have to think out of the box and be proactive in its efforts to address the impact of the US trade tariffs while working to sustain and expand the country’s exports industry.

Chinese connection

Another issue of contention concerns Sri Lanka’s trade ties with China, which also includes the sourcing of raw materials for Sri Lanka’s export manufacturing industry from China. It is learnt that despite the restrictive approach adopted by the US regarding countries that are exporting goods to the US and trading with China, Sri Lanka has decided not to restrict its trading with China. 

It indeed is a sovereign decision of Sri Lanka to decide its foreign relations and trade ties. Neither the US nor any other nation should be allowed to bully or dictate terms to any other country including Sri Lanka.

While it is commendable that the AKD Government has decided not to increase taxes on US exports or limit engagements with BRICS nations and limit trade with China, Sri Lanka needs to transform from reactionary actions to proactive actions in seeking out new and emerging markets for its exports.

It is only through proactive actions that Sri Lanka can minimise the impact of the US trade tariffs on the exports industry and the overall economy.

Correcting ‘Aruna’

Meanwhile, an interesting incident was also witnessed in the letter sent by US President Trump announcing a 30% tariff on Sri Lankan exports. In the letter, President AKD had been accidentally referred to as ‘Aruna’ Kumara Dissanayake. The letter, dated 9 July and sent on an official White House letterhead, had included the incorrect spelling of the Sri Lankan President’s name.

The letter was widely shared on social media with many pointing out and commenting on the mistake. However, Trump had later reposted his formal letter to Sri Lankan President Anura Kumara Dissanayake, correcting the earlier version in which the President’s first name was misspelled as ‘Aruna’.

UK support 

However, there was some relief for President AKD and his Government with an announcement by the UK Government last Friday (11). The UK Government announced the unveiling of a package of reforms to simplify imports from developing countries like Sri Lanka after upgrades to the Developing Countries Trading Scheme (DCTS).

A statement by the British High Commission outlined that the upgrades to the DCTS scheme would make it easier for businesses to trade with the UK and help lower prices on the UK high street. The changes, announced as part of the UK’s wider Trade for Development offer, aim to support economic growth in partner countries, including Sri Lanka, while helping UK businesses and consumers access high-quality, affordable goods. 

New measures include simplifying rules of origin, enabling more goods from countries such as Sri Lanka, Nigeria, and the Philippines to enter the UK tariff free, even when using components from across Asia and Africa.

While the proposed changes will ensure that DCTS countries can now source their materials from a wider range of nations and will give manufacturers from countries such as Sri Lanka the opportunity to take advantage of 0% tariffs on garments, these changes are expected to be in place by early 2026.

British High Commissioner to Sri Lanka Andrew Patrick said: “This is a win for the Sri Lankan garment sector and for UK consumers. With the UK being the second largest export market and garments making up over 60% of that trade, we know manufacturers here will welcome this announcement.”

While the UK announcement is welcome news, the fact that the proposed upgrades to the trade structure will only come into effect from early 2026 means that Sri Lanka cannot count on this development alone to face the immediate challenges posed to the country’s exports sector. Waiting till early 2026 could mean some exporters in Sri Lanka may have by then opted to set up bases in other countries in the region.

Economic realities

Looking at Sri Lanka’s economic realities, the country is required to repay its foreign debt by 2028 and a 5% economic growth rate is necessary to meet these payments. However, the projected growth for this year is only 3.5% and 3.1% for the next. As pointed out by an economist who had held key positions in previous governments, without reaching the 5% target and without proper recognition of the export sector, debt repayment will remain highly uncertain.

Also, Sri Lanka’s foreign exchange reserves had recorded a drop of $ 206 million to $ 6,080 million in June, amid warnings that the last rate cut was risky to the country’s ability to collect reserves and repay debt.

The Weekly Economic Indicators report of the Central Bank had reportedly shown that this figure stood at $ 6,286 million in May, indicating a decline of $ 206 million, which has been calculated at 3.3%, in official reserve assets held by the Central Bank during June.

Tax revenue

The ongoing economic complexities have also resulted in the increase of taxes. One of the latest talking topics has been the 18% Value-Added Tax (VAT) imposed on a list of digital services.

A gazette notification has been issued announcing the list of digital services on which the 18% VAT will be imposed with effect from 1 October.

Meanwhile, another tax that will witness more discussion will be the Government’s plan to introduce a nationwide property tax by the first half of 2027. This is expected as part of a broader fiscal reform agenda agreed under Sri Lanka’s ongoing programme with the International Monetary Fund (IMF).

According to the IMF’s Fourth Review under the Extended Fund Facility (EFF), the proposed property tax aims to strengthen Sri Lanka’s revenue base and support fiscal consolidation efforts. The Government is expected to complete the necessary groundwork – including a database of market property values – by mid-2026.

The Government’s intention to proceed with developing the data infrastructure for this tax programme was detailed in a letter of intent addressed to IMF Managing Director Kristalina Georgieva. 

“We plan to continue building the data infrastructure for a possible property tax. We are planning to introduce property taxes by 2027 H1. In the meantime, building adequate information on property valuation is key. The first step in the process requires a database on historical valuation records.

“To this end, we are working to digitise the valuation records held by the Government Valuation Department, starting with municipal councils. We plan to complete this process by end-2025. Next, a database on market value estimates is required. We have thus put in place a provisional digital nationwide Sales Price and Rents Register (SPRR). We have resolved outstanding data sharing constraints and will establish the final SPRR by end-September 2025 (SB, end-June 2025).

“We will also ensure that this database will be accessible to the Inland Revenue Department (IRD) (including the HWI unit), the Valuation Department, the Land Registry, and the public by September 2026,” the document signed by President AKD has stated.

AKD’s challenge

Meanwhile, the ongoing probe on the 2019 Easter Sunday attacks resurfaced last week, with President AKD and senior members of the Government speaking about the matter. 

While delivering a speech at the felicitation ceremony organised by the Archdiocese of Colombo to mark the 50th ordination anniversary of Cardinal Malcolm Ranjith’s sacred priesthood held at the Archbishop’s House in Colombo, President AKD has assured that every possible step will be taken to ensure justice for the victims of the Easter Sunday attacks. 

The President has noted that it is a challenge the Government must confront, even within its own institutions, and that no matter how difficult the situation may be, justice must be served. He has further stated that the Government will have to subject itself to a probe (“Rajayata rajayama parikshanayakata bhajanaya karanna wenawa”) to uncover the truth behind the Easter Sunday attacks.

AKD has however assured that the truth behind the attacks will be unveiled and that justice will be meted out to the affected. “The Government will have to subject itself to a probe to find the truth behind the Easter Sunday attacks. It is a Herculean task. However, we will assure that justice will be meted out to Easter Sunday victims,” he has said.

Revelation on Pillayan

Meanwhile, Public Security Minister Ananda Wijepala revealed in Parliament last week that Sivanesathurai Chandrakanthan, also known as Pillayan, had prior knowledge of the 2019 Easter Sunday attacks while he was in custody at the Batticaloa Prison. 

“We have strong evidence to say that he knew about the attacks before they happened,” the Minister has stated, citing ongoing investigations.

Wijepala has also referred to an incident that had taken place prior to the Easter Sunday attacks where two Police officers in Vavunathivu were killed following a shooting and an attack using sharp weapons. The incident was reported on 30 November 2018.

According to the Minister, former Liberation Tigers of Tamil Eelam (LTTE) member Ajanthan was arrested during the probe into the incident claiming that he was responsible for the killings. Wijepala has noted that the Criminal Investigation Department (CID) has now revealed that the bike jacket belonging to Ajanthan was used as a tool to frame him for the attack. The CID officers were misled to believe that the attack was carried out by a former LTTE member.

Wijepala has claimed that it is clear that the Vavunathivu investigations were not properly conducted due to these factors and that an officer from the Intelligence Unit has been arrested in this regard, while steps have also been taken to arrest others.

More revelations

Minister Wijepala has also told Parliament that the State Intelligence Service (SIS) had failed to act on a crucial alert received from the Taj Samudra on 20 April 2019, regarding Abdul Latheef Mohamed Jameel – one of the suicide bombers involved in the Easter Sunday attacks.

The Minister has revealed that the hotel had emailed the SIS at 4.52 p.m. on 20 April, informing them that Jameel had checked into the hotel. However, despite Jameel being on a terrorist watchlist, no action had been taken, he has added.

While Jameel did not carry out an explosion at the Taj Samudra, he later detonated a bomb at the Tropical Inn in Dehiwala.

Minister Wijepala has noted that the CID is now probing why the warning was ignored and who within the SIS had failed to act. He has further noted that Jameel had been under surveillance by intelligence agencies since 2015, as previously revealed before the Presidential Commission of Inquiry into the Easter Sunday attacks.

Focus on Sarah

Furthermore, Minister Wijepala has shared details about the multiple DNA tests to verify the reported death of Pulasthini Mahendran, alias Sarah Jasmin.

“A DNA report was requested on two occasions to confirm the death of Pulasthini Mahendran, also known as Sarah Jasmin, following reports that she died in a suicide bombing on 24 April 2019. On both occasions, the DNA did not match samples from her close relatives. A third DNA test, this time involving a sample from her mother, was called during the tenure of Sarath Weerasekera as Minister of Public Security.”

The Minister has added that the way the samples were obtained has raised serious doubts, which the authorities are currently investigating.

Meanwhile, Opposition Member of Parliament (MP) Mujibur Rahman has questioned in Parliament the inconsistencies surrounding the fate of Sarah, who is a key suspect linked to the 2019 Easter Sunday attacks. Rahman has said 14 individuals from Zahran’s family died in a suicide blast in Sainthamaruthu on 26 April 2019. However, he has claimed Zahran’s brother, Zaini, was not killed in the explosion but was shot outside the house afterward.

“Zahran’s wife Haadiyah, who survived the bombing, has given testimony that Zaini called her from outside of the house after the bomb detonated. She said that she heard gunshots a few moments later. Zaini was killed by gunfire, he didn’t die in the bomb, so who killed him?” Rahman has questioned.

Rahman has also alleged that Sarah, believed to have died in the same incident, was alive and had been taken away. Citing Haadiyah’s testimony, he has said a person with a familiar voice had spoken to her in Tamil after the blast, and that she had later identified the voice as Sarah’s. “Meanwhile Sarah is alive. Sarah was taken away. Haadiyah in her testimony says someone with a familiar voice spoke to her in Tamil. Then the judges ask Haadiyah who it was, to which she responds that she believes it was Sarah. She says she saw Sarah being taken away.”

Rahman has called for answers from military officials, naming Maj. Gen. (Retd) Aruna Jayasekara, who was the Eastern Commander at the time and is now the Deputy Minister of Defence. “On 26 April, Sarah was taken away. Ask Major Subasinghe who took her away. Who was the Eastern Commander at this time? Commander Security Forces of the East was Maj. Gen. Aruna Jayasekara, who is your Deputy Minister of Defence. Ask him where Sarah was taken to. It’s your Government, you have Sherlock Holmes now,” the MP has said.

Rahman has further alleged that a mobile connection registered in Sarah’s name was recently activated and that he would table the relevant document in Parliament.

The ‘objective situation’

Meanwhile, Leader of the House, Minister Bimal Rathnayake has alleged in Parliament that a climate of extremism was deliberately cultivated to facilitate the return of the Rajapaksa regime, which lost power in 2015.

“The Easter Sunday attacks cannot be taken as an isolated incident. There was a need to create a situation for the Rajapaksas to return. On one hand, they attempted this by creating a political rift between President Maithripala Sirisena and Prime Minister Ranil Wickremesinghe. They weakened the Government, but it was not sufficient as the 2015 mandate was very strong,” he has said during the adjournment debate in Parliament over the Easter Sunday attacks.

Rathnayake has alleged what he termed as an “objective situation” was engineered starting in 2013, with the involvement of intelligence agencies. “The Rajapaksas created an objective situation. They started this in 2013 by creating and maintaining Sinhalese and Muslim extremist groups through intelligence agencies. The culmination of this was like the Cambridge Analytica incident,” Rathnayake has added.

Iniya Bharathi arrested

Meanwhile, the recent arrest of K. Pushpakumar, also known as Iniya Bharathi and a close associate of Pillayan, by the CID has resulted in uncovering details of many incidents that had taken place in the Eastern Province, it is learnt.

Iniya Bharathi, who defected from the LTTE in 2004 along with Vinayagamoorthy Muralitharan alias Col. Karuna Amman, had served as the leader of an armed camp in Thirukkovil. He was the Presidential Coordinating Secretary of the Ampara District of the United People’s Freedom Alliance (UPFA) when Karuna had supported then President Mahinda Rajapaksa (MR). Iniya Bharathi had also served as an Eastern Provincial Councillor representing the UPFA between 2012 and 2015.

Informed sources claim that according to information that is being uncovered, Iniya Bharathi and his group were alleged to have been involved in the assassination of former Tamil National Alliance (TNA) MP Ariyanayagam Chandranehru and several others on 8 February 2005 in the Pillaiyaarady area in Welikanda in Polonnaruwa. A group including Iniya Bharathi had also been allegedly involved in the assassination of Thirukkovil Pradeshiya Sabha Chairman Pillainayagam Udayakumar and several others on 28 June 2006.

Both Pillayan and Iniya Bharathi are currently in remand custody.

Criticising RTI stance

Meanwhile, the Government’s stance on the Right to Information (RTI) was subjected to criticism last week after the Presidential Secretariat declined to disclose the names of officials attached to the President’s Media Division (PMD), citing provisions under the RTI Act No.12 of 2016. Senior Assistant Secretary to the President G.P.H.M. Kumarasinghe had conveyed the decision in a written response to an appeal filed by activist Anuruddha Bandara. 

The letter that was widely shared on social media shows that the President’s Office had invoked Section 5(1)(a) of the RTI Act to not furnish the details. Section 5(1)(a) of the RTI Act No.12 of 2016 relates to the exemptions under which a public authority may refuse to disclose information.

Section 5(1)(a) states in essence: “Disclosure of personal information relating to an individual may be refused if the disclosure would result in an unwarranted invasion of the privacy of the individual, unless the larger public interest justifies the disclosure or the person concerned has given written consent.”

The move drew criticism from transparency advocates and civil society groups, who argued that the names of public officials – particularly those involved in State media operations – should not be classified as confidential. They have claimed that the refusal undermines the spirit of the RTI Act, which is intended to foster openness and accountability in public institutions.

Turning to PC Polls

Meanwhile, following the establishment of Local Government bodies, the Government seems to be looking at holding the long-delayed Provincial Council (PC) Elections with Provincial Council and Local Government Minister Chandana Abayarathna stating that the delimitation for Provincial Councils will be taken up for discussion with the ministry’s Consultative Committee.

The Minister had noted that there was no point in maintaining Provincial Councils without public representatives and that attention would be paid to the holding of PC Elections after concluding the formation of Local Government bodies.

Terms of Provincial Councils have expired between 2017 and 2019 and elections to the councils have been on hold since then. All provinces are now being governed by the governors appointed by the President.

Opposition to unite

Meanwhile, Opposition political parties have decided to meet to form a joint Opposition to face what has been claimed as suppression by the Government.

While there have been discussions carried out on an unofficial level among Opposition party leaders on various occasions, several senior Opposition members have proposed to hold an official discussion to form a formidable coalition in the future.

The main Opposition Samagi Jana Balawegaya (SJB) and the United National Party (UNP), it is learnt, are engaged in unofficial discussions to broaden the dialogue to include more parties from the Opposition join the coalition effort.

However, the ongoing investigations into members of former governments, it is learnt, have deterred some Opposition members from joining discussions to form coalitions as they have stated they wished to maintain a low profile.

Corruption probes

The Commission to Investigate Allegations of Bribery or Corruption (CIABOC), which is on an accelerated drive to probe corruption committed in the past, has already initiated inquiries into around 488 files of former ministers, secretaries, and senior Government officials.

Most of these complaints, it is learnt, have been received by the President’s Office and various ministries. The commission has sought assistance from the Attorney General’s Department regarding several probes.

The Police Department has meanwhile also recommenced probes into around 1,000 files related to complaints made during the past years on various irregularities committed by former ministers and Government officials. Accordingly, the CID, Financial Crimes Investigation Division (FCID), Colombo Crime Division (CCD), and several other key investigative units under the Police have reopened complaint files received in the past few years that had been kept aside without being probed. 

10 bond scam MPs probed

Meanwhile, former and current MPs who had allegedly received monies and perks from a liquor company as part of a cover-up of the controversial Central Bank bond scam are being probed by the CID.

It was widely believed that during the ‘Yahapalana’ Government and afterwards, several MPs had defended the bond scam at the time due to the receipt of financial incentives from a liquor company. However, the CID is currently engaged in a probe into 10 politicians with alleged links to the cover-up of the bond scam.

Getting Mujibur’s address

Meanwhile, SJB MP Mujibur Rahman says that he is likely to be summoned by the CID to record a statement on the alleged scam over releasing red-labelled containers. 

The MP had told the media that the CID had asked for his address from Parliament, and that it had been given by parliamentary officials. “The CID wants me for questioning on the container issue after I tabled the report of the committee which carried out a probe,” he had said.

During the parliamentary session on 30 June, Rahman made a speech exposing the findings of a committee appointed by the President to probe the controversy over the release of 323 containers allegedly without subjecting them to checks and tabled the committee report in Parliament. 

Targeting Sajith

Meanwhile, a Cabinet decision last week has resulted in a probe being conducted on the Central Cultural Fund (CCF) during the ‘Yahapalana’ Government when Opposition Leader Sajith Premadasa was the Minister in charge.

Cabinet had approved the appointment of a three-member committee to examine irregularities reported at the CCF from 2017 to 2020. The proposal presented by the Prime Minister has proposed the appointment of a three-member committee under the chairmanship of retired Supreme Court Justice G.M.W. Pradeep Jayathilaka.

The Government has stated that there have been reports that various irregularities had occurred in providing financial assistance to religious places for various activities by the CCF during this period. Accordingly, a decision had been taken at the 223rd Governing Council meeting of the CCF held in May to appoint a committee to examine the irregularities reported.

Wimal’s song

Amidst facing CIABOC and CID probes, National Freedom Front (NFF) Leader Wimal Weerawansa on Tuesday (8) released a protest song titled ‘Whose Bullets Are These?’ (original Sinhala: ‘Kageda Me Moonissam?), which expresses solidarity with the Palestinian people and Iran.

The song, written and performed by Weerawansa himself, is reportedly a response to recent airstrikes on Iran and ongoing violence against Palestinians, which he has attributed to what he has termed the “Yankee-Zionist alliance”.

However, the day after releasing his song, Weerawansa was summoned by the Special Investigations Unit 4 of the CID to record a statement on Wednesday (9). The summons had been issued to record a statement from Weerawansa related to comments made by him during a recent press briefing about the release of 323 containers earlier this year without subjecting them to checks.

Meanwhile, Weerawansa has also been summoned by the CIABOC to record a statement regarding the distribution of shop spaces during his tenure as Housing Minister.

Spotlight on Basil

Meanwhile, details of corruption allegedly committed by former Minister Basil Rajapaksa prior to 2015 have been publicised recently through pro-Government media outlets. 

These incidents have reportedly been identified in a report prepared by a committee that was headed by Preethi Padman Surasena during the ‘Yahapalana’ Government. The committee had been appointed by then President Maithripala Sirisena to probe the alleged large-scale corruption of the pre-2015 Rajapaksa Government.

According to reports, the Surasena Committee report had revealed that the ‘Maga Neguma’ project had spent around Rs. 155,451,612 as payment for domestic air travel facilitated by the Sri Lanka Air Force between 2 June 2010 till 7 November 2014. It has also been stated that Basil had used a total of 14 vehicles including three luxury vehicles and 11 normal vehicles at an expense of around Rs. 612,000,000.

Basil had also allegedly had a security contingent consisting of 64 Navy personnel and 84 Army personnel after the conclusion of the war between 10 January 2010 and 10 January 2015. This security contingent had reportedly been paid allowances and salaries of VIP security amounting to around Rs. 264,370,800.

The committee has reportedly revealed in its report that Basil had allegedly misused his powers to obtain facilities above those offered to a cabinet minister at public expense.

SM’s food conundrum

Meanwhile, former Minister S.M. Chandrasena, who was remanded recently, had faced an issue over getting his meals from home. Chandrasena is currently held in the ‘M’ Ward in the Welikada Prison after being remanded for allegedly causing a loss of around Rs. 25 million to the Government over the distribution of maize.

However, the issue of receiving meals from home had arisen when one of his coordinating secretaries had requested permission from the Prisons Department to send meals from home for Chandrasena. The Prisons officials had refused the request stating that such a request had to be made by a family member.

It is learnt that the secretary had then organised a letter from Chandrasena’s son requesting permission to send meals from home to his father in remand prison. Chandrasena’s wife is currently serving a jail term following a court verdict in a case related to the misuse of public funds. 

No more ‘jumpers’ 

Meanwhile, it is learnt that former Minister Mahindananda Aluthgamage, who is currently serving a jail term, is no longer wearing the attire worn by convicted prisoners most popularly known as the ‘jumper.’

The reason for Aluthgamage to stop being attired in a ‘jumper’ is due to the appeal filed by him against the court verdict convicting him.

It is also learnt that while Aluthgamage is currently permitted to wear civil clothing, he is also not required to engage in the work routine set out by prison for convicted prisoners. The former Minister’s sentencing included rigorous imprisonment.

However, Aluthgamage is reportedly awaiting the outcome of his appeal.

Rajitha to CIABOC

Former Minister Rajitha Senaratne meanwhile is expected to appear before the CIABOC on Tuesday (15) morning. 

Colombo Additional Magistrate Harshana Kekunawela had on Friday (11) informed the CIABOC that there was no need to obtain a court-issued arrest warrant to apprehend Senaratne since he was already named as a suspect in the ongoing investigation. The Magistrate had reportedly stated that there was no legal barrier preventing the CIABOC from arresting and producing Senaratne before court.

The Magistrate had made this statement when CIABOC officials had sought a warrant to arrest Senaratne.

Complaint against Speaker

Meanwhile, a complaint was recently filed with the CIABOC against Speaker Jagath Wickramaratne over the alleged misuse of public property.

The complaint, filed by the Nava Janatha Peramuna, has accused the Speaker of being allocated an apartment at an apartment complex under the purview of the Public Administration Ministry on Lauries Lane, Colombo 4, in addition to the official residence assigned to the Speaker of Parliament. The complainants have stated that members of the Government or State officials cannot use two State-owned residences.

The complainants have further claimed that despite being assigned two official vehicles and a fuel allowance by Parliament, the Speaker was allegedly using three vehicles – a van (NC 4923), a car (CAN 8753), and another car (CBI 5198).

It has further been alleged that the Speaker’s private secretary has also been provided with lodging facilities at the Lauries Lane apartment complex.

The complaint has sought probes under the Public Property Act and the Anti-Corruption Act. 

However, responding to the allegations, Speaker Wickramaratne’s office has stated that he was paying for the apartment at Lauries Lane from his salary. It was further stated that the Speaker did not use his official residence for any purpose since all his official meetings including meetings with foreign dignitaries were held at his office in Parliament. 

It has been further clarified that the Speaker used two official vehicles – CAN 8753 and CBI 5198 – and that the Speaker’s media unit used the vehicle bearing number NC 4923.

Reducing fuel allowance

The Secretary General of Parliament had last week also stated that it has been decided to reduce the fuel allowance granted to Speaker Wickramaratne to 900 litres and to make it in line with the fuel allowance given to a Cabinet minister.

A statement from the Secretary General’s office had stated that the decision had been made by the Housekeeping Department following a request made by the Speaker himself.

MP salary publicised

Meanwhile, SJB MP Jagath Withana had recently publicised the monthly salary of MPs including allowances when he had published his pay sheet on Facebook. The salary slip publicised was the MP’s April salary.

Accordingly, the MP’s monthly allowance is Rs. 54,285, entertainment allowance is Rs. 1,000, telephone allowance is Rs. 50,000, sitting allowance is Rs. 17,500, office allowance is Rs. 100,000, fuel allowance is Rs. 101,695.88, and transport allowance is Rs. 15,000. Withana has shown that his net salary amounts to Rs. 330,113.34. The pay sheet has further shown that the monthly deductions include Rs. 4,800 for catering, and Rs. 4,542.54 as personal income tax and a further Rs. 25 deducted as stamp fees.

Withana had noted that he did not need the MP’s salary since he was a businessman and had taken measures to use his salary from Parliament for social services work. 

RTI on tax deduction

However, MP Withana’s move to post his salary slip on Facebook has now resulted in questions being posed on how legislators’ income tax is being calculated. The Government Medical Officers’ Association (GMOA) has filed an RTI request seeking clarity on how income taxes are calculated for MPs.

Withana’s disclosure has drawn criticism on social media, with many noting that private sector employees earning similar salaries had to pay significantly higher monthly taxes. Under tax reforms introduced in April, an employee earning Rs. 300,000 is liable to pay at least Rs. 20,000 in monthly income tax.

The GMOA in a letter dated 9 July under the RTI Act has asked Parliament to disclose how allowances and pensions for MPs are determined and whether they receive tax exemptions not available to other professionals. Questions have also been raised about the legal basis for any such exemptions and how pensions are calculated.

HRCSL gets tough

Meanwhile, the Human Rights Commission of Sri Lanka (HRCSL) has taken a firm stand regarding appeals. The commission has informed heads of State institutions that recommendations issued in line with the HRCSL Act cannot be appealed and that the law does not permit appealing to refrain from implementing the recommendations.

The HRCSL has reportedly notified ministry and provincial council chief secretaries and heads of departments, corporations, and statutory boards to issue internal circulars to create awareness among their relevant institutions in this regard.

Commission Chairman L.T.B. Dehideniya has stated that all respondents are bound by Act No.21 of 1996 to implement the recommendations.

It has also been stated that the HRCSL requires written submissions of how the recommendations are implemented.

MR updates diary

Meanwhile, former President MR, it is learnt, is mostly homebound these days and is updating his diary, which is expected to play a key role in the former President’s memoirs.

It is also learnt that one of the reasons for MR to stay at home is the further reduction in his staff, with another seven members of his official staff being withdrawn. From a contingent of around 100 official staff members, MR’s staff was reduced to around 60 this year and seven more staff members have been withdrawn recently.

Among the recently withdrawn staff members have been drivers, leaving only two drivers on the official staff. The reduction in MR’s drivers to two has made things difficult for the former President’s travel schedule, given that they would have to work 24/7 without being rostered.