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President Gotabaya Rajapaksa has appointed an active pro-government politician to lead the Human Rights Commission of Sri Lanka (HRCSL). He has replaced the current Commission with new commissioners. The new chairman, Mr. Jagath Balasuriya, is a close relative of the Rajapaksa family and has long been involved in pro-Rajapaksa politics.

According to SJB MP Mujibur Rahman, Jagath Balasuriya is also the SLPP organiser of the Kegalle district. Chairman appointed Jagath Balasuriya was the Minister of National Heritage in the Sri Lankan government in the previous Rajapaksa Government.

He was the acting Governor of Central Province in 2005 from September to December and was appointed by President Mahinda Rajapaksa. His wife, Neranjala Pushpa Kumari Balasuriya, is the former Governor of the Southern Province of Sri Lanka since October 2006. Now, she is the personal secretary to her son, State Minster Tharaka Balasuriya.

Tharaka Balasuriya was appointed as the State Minister for Regional Cooperation by president Gotabaya Rajapaksa.

The European Union will be extending its support to set up One Stop Business Service Centres in rural areas countrywide, a high official of the EU residential delegation said in Colombo this week.

One such Business Service Centre designed under this project was opened recently in Monaragala and similar centres will be set up in several other rural areas as well, Thorsten Bargfrede Deputy Head, European Union Delegation to Sri Lanka said.

Addressing a webinar on women participation in Sri Lanka’s Micro, Small, Medium Enterprises (MSMEs) on Wednesday, he noted that it is essential to improve the quality standard of local products to face trade competitiveness both locally and internationally.

This online panel discussion was organised by Chrysalis, a Sri Lankan organization working to empower women and youth in collaboration with the European Union delegation office in Colombo.

Small businesses are essential for the country’s development and the EU has already extended assistance to SME sector export competitiveness, he pointed out.

Women are heavily involved in trade and are therefore a target group when it comes to capacity building of SMEs and exporters; he said.

He added that they are focusing on livelihood development and capacity building of rural women in several ongoing EU funded projects.

The Business Service Centre model was conceptualized and implemented by Chrysalis and the Enterprise Project funded by the European Union in Sri Lanka.

The Centre is expected to provide a conducive environment for over 18,000 MSMEs in the district to access regulatory, business growth technical advice and links to state and private sector resources and services.

The Business Centre will ensure service delivery is devoid of much administrative inefficiency that significantly impacts the SME sector in Sri Lanka – including specific challenges faced by women entrepreneurs.

State Minister for Development Banks and Loans, Shehan Semasinghe said that his ministry is ready to discuss with Chrysalis representatives on the modalities of the ongoing EU Funded “One Stop Business Service Centres” as the government will initiate a similar countrywide programme shortly.

25 district level one-stop service centres are to be set up island-wide for the registration of micro, small, and medium-sized enterprises (MSMEs).

The US Department of State, Bureau of Democracy, Human Rights and Labor (DRL) has announced an open competition for organizations interested in submitting applications for projects that advance and protect freedom of association and freedom of assembly in Sri Lanka. DRL seeks proposals for programs that utilize legal mechanisms and the judicial system to ensure these legal protections are enforced and these rights are respected in Sri Lanka.

Proposals should assess the use of policies, laws and programs on democratic political competition, civil society, and media freedom that are being put into place in Sri Lanka under the new government.

Additionally, proposals should provide legal and organizational support to organizations and individuals facing undue government restrictions, pressure, inspections, and censorship to ensure they can continue to operate, as well as foster civil society-led strategic litigation to advance the protection, fulfillment, and respect of human rights.

The proposed program must also address how it will ensure coordination with existing civil society networks, as well as ongoing civil society-led strategic litigation and advocacy efforts.

Proposed programming must be responsive to immediate needs on the ground, must be in line with the U.S. Government’s democracy, governance, and human rights goals in Sri Lanka

It should contribute to and support Sri Lanka’s efforts to strengthen democracy, governance, and human rights in the country.

All programs should aim to have impact that leads to reforms and should have the potential for sustainability beyond DRL resources. 

DRL’s preference is to avoid duplicating past efforts by supporting new and creative approaches.

Investigators have unearthed a massive tax evasion of more than Rs.6 billion by W.M. Mendis & Co. Ltd, one of the renowned liquor manufacturers in Sri Lanka, owned by Central Bank bond scam suspect Arjun Aloysius.

It has also defaulted Rs. 1.1 billion in excise duty up to now inflicting a massive loss to the Excise Department, according to a recent investigation by the Inland Revenue Department (IRD). This company has not paid necessary corporate income tax payment amounting to Rs. 2.63 billion and payment of VAT amounting to Rs. 3.55 billion to IRD during the previous regime and the IRD has taken legal action to recover these dues.

It was also revealed that this company has defaulted the repayment of a loan of Rs. 5 billion from the People’s Bank, Rs.4 billion loan from the Bank of Ceylon and Rs. 800 million from the People’s Leasing Company. It is also indebted to various institutions amounting to over Rs. 2 billion for the services provided for the company, the investigation revealed adding that these details are contained in official documents of those banks and financial institutions and are now in the public domain.

Meanwhile the legal alcohol industry tax revenue is shrinking due to an increase in the illegal production of liquor and tax evasion of a few errant companies and some retailers countrywide, industry sources alleged.

However, a new Finance Ministry report has revealed that the drop in tax revenue was the result of the decline in liquor production and liquor sales during the COVID-19 pandemic period.

The Business Times reported that leading liquor company heads have stated that high taxes, weak enforcement of existing rules, and corruption have resulted in the increase in illicit moonshine and ‘artificial toddy’. Another reason was the sale of tax-avoidance alcohol through the legal distribution system, they pointed out.

Alcohol tax is very high and strict regulations have been enforced by the successive governments prompting people to avoid taxes, bend rules and find loopholes in tax rules, they added.

A well planned illicit liquor delivery racket had been carried out by avoiding tax, through the illegal control of alcohol retail licenses by some alcohol producers and persons with high political connections, a top industry official disclosed.

This was one of the reasons for outstanding tax revenue of the Excise Department for the period of five years ending December, 2019 which stood at Rs. 2,376.2 million, the Parliamentary Committee on Public Accounts (COPA) said recently.

The decline in revenue from liquor observed in the months of March to May was reversed in the months of June to July showing the recovery of its growth momentum.

This recovery, however, has failed to prevent the decline in revenue by 4.1% to Rs. 72.5 billion during the first eight months of 2020 from Rs. 75.6 billion in the same period of 2019.

He pointed out that according to the Sri Lanka Electricity Act, the Commission is responsible for approving power generation plans and approving the calling for proposals to build power plants (Request for Proposals) and Power Purchasing Agreements. Accordingly, the Commission has given its fullest cooperation and approval to the Ceylon Electricity Board for implementing the Least Cost Long Term Generation Plans.

He further stated that,

"The Ceylon Electricity Board has sought the approval from the Public Utilities Commission of Sri Lanka for three major power plants with the capacity of 300 MW during the period 2016-2020 under the Least Cost Long Term Generation Plan and the steps taken by the Commission in this regard are as follows;

01. The first liquefied natural gas (LNG) power plant of 300 MW

The Ceylon Electricity Board (CEB) submitted the request for proposal (RFP) of the above plant for the approval of the Commission 15.11.2016 and the approval was granted by the Commission on 17.11.2016 within two days. However, after a delay of four (04) years of the bidding process, the Power Purchasing Agreement (PPA) has been referred to the Commission for approval on 09.10.2020. The Public Utilities Commission of Sri Lanka gave the approval on 25.11.2020 in the first meeting that was convened after submitting the PPA.

02. 300 MW Second Liquefied Natural Gas (LNG) Power Plant

Although the Board of Directors of the Ceylon Electricity Board had decided on 29.06.2017 to call for bids for the construction of the above-mentioned power plant which has been delayed for more than three years and which was approved by the Public Utilities Commission of Sri Lanka under the Long-Term Generation Expansion Plan, the request for proposal (RFP) was submitted to the Commission on 18.09.2020. Accordingly, the Commission has given its approval within one month on 22.10.2020 and yet the Ceylon Electricity Board has not called for bids for the plant.

In both cases mentioned in No 1 and No 2, the approvals were granted after the Ceylon Electricity Board (CEB) agreed to incorporate the necessary amendments proposed by the Commission for the benefit of the country and the public.

03. Norochcholai Coal Power Plant Extension of 300 MW

According to the long-term power generation plan 2018-2037 approved by the Commission, if a 300 MW coal power plant is to be completed by 31/12/22, the approval of the Commission should be obtained by the middle of the year 2018.

However, after a delay of two years, the relevant tender has been submitted on 04.09.2020 to award the construction of this power plant to one party in a non-competitive manner.

In a letter dated 15.10.2020, the Commission requested the Ceylon Electricity Board to comply with the provisions of the Electricity Act  and Procurement rules  and to submit explanations/justifications in purchasing the power plant.

The CEB has submitted a reply letter to the Commission on 27.10.2020. However, as the members of the Commission have not yet been appointed to the PUCSL, it has not been possible to submit it to the Commission to take necessary action regarding the reply letter.

The Commission has also supervised the implementation of generation plans without being limited to approving the generation plans and approving the request for proposals (RFPs) for the same plans.

The Commission has informed the Cabinet, the Ministry of National Policies and Economic Affairs and the Ministry of Power and Renewable Energy in writing that there is a delay in the construction of power plants from 2016.

We look forward to providing information on the amount of money saved for the public by the Commission due to the non-approval of emergency power purchases and about the emergency purchases requests that the Commission received," he added.

The Millennium Challenge Corporation (MCC) board has decided to discontinue the proposed LKR 89 billion MCC Development Compact to Sri Lanka, the US embassy in Colombo announced.

"On December 15, the Millennium Challenge Corporation (MCC) board decided to discontinue the proposed Rs. 89 billion MCC development assistance grant to Sri Lanka due to lack of partner country engagement," the US Embassy said in a statement.

They said that the LKR 89 billion approved for Sri Lanka will be made available to other eligible partner countries in need of grant funding to pursue their economic development priorities, reduce poverty, and grow their economies.   

"Country ownership, transparency, and accountability for grant results are fundamental to MCC’s development model. MCC has successfully partnered with nearly 30 countries worldwide on 38 grant agreements, totaling nearly USD 13.5 billion.  These grants have lifted millions of people from poverty by catalyzing local and domestic investment," the embassy said. adding that the United States remains a friend and partner to Sri Lanka and will continue to assist Sri Lanka in responding to COVID and building its economy.

Meanwhile, a group of lawyers representing the victims of the Mahara prison riot had lodged a complaint with Chief Justice Jayantha Jayasuriya and the Attorney General yesterday (17) calling for an inquiry into the statement made by the Coordinating Officer to the Attorney General and State Counsel, Nishara Jayaratne, where she has reportedly stated that cases can't be heard based on the instructions of NGOs.

Special operations carried out by the Sri Lanka Navy and Coast Guard in several sea areas of the island on Tuesday (15) have led to the apprehension of 36 Indian nationals along with 05 fishing trawlers and fishing accessories, for poaching in Sri Lankan waters. Although operations to prevent poaching by foreign fishermen in Sri Lankan waters have been restricted since March this year due to COVID-19 concerns, the Navy resumed its raids on poaching, considering the impact of this wanton act on the livelihood of local fishing community and to protect the fishing resource of the country, as a result of the surge in the arrival of foreign fishing trawlers in Sri Lankan waters.

Accordingly, Northern Naval Command, during a special operation in the sea area off the Delft Island had intercepted 03 Indian fishing trawlers and held 22 Indian nationals and those vessels for poaching in the island's waters.

Around Sri Lanka's territorial waters in the area north of Mannar and west of Kudiramalei Point, 14 more Indian nationals and 02 fishing trawlers were held by the North Central Naval Command and Northwestern Naval Command respectively.

"All these search operations were conducted adhering to the COVID-19 preventive guidelines and further investigations are currently underway with regard to the 36 accused and 05 fishing trawlers held by the Navy," a statement by the NAvy said.

Meanwhile, arrangements are being made to direct the apprehended Indian nationals for 14 days of quarantine. Sri Lanka Navy will continue to undertake similar operations in view of preventing illegal fishing practices and other nefarious activities to protect the country's marine resources, the Navy affirmed.

The World Health Organization (WHO) country office for Sri Lanka, with financial support worth EUR 2 million from the European Union (EU), will help improve emergency response capacities in Sri Lanka to mitigate the impact of COVID-19.

The support will focus on several key areas, including enhancing the effectiveness of COVID-19 case management as well as preventing infection.

Developing the system’s case management processes will enable better planning, coordination, and decision-making; additionally, a key component of the grant, the advancement of a learning management system, will sustainably increase the health system’s capacity to respond to public health emergencies in the future.

The funding will also advance existing communication and community engagement efforts, ensuring the generation of relevant and accessible communication materials and supporting the mobilization of vulnerable individuals, young people, and community-based organizations to lead community-level prevention and control measures.

In recognition of the importance of continuing essential services, EU support will also empower communities to access mental health and psychosocial services, addressing inequities exacerbated by the pandemic.

“The funding for Sri Lanka is part of the EU’s global response to the coronavirus pandemic,” said Ambassador of the Delegation of the European Union to Sri Lanka and the Maldives H.E. Denis Chaibi.

"The EU partnership with the WHO will not just address the impact on the health sector but also pay special attention to vulnerable populations, working hand-in-hand with local communities. Strengthening response capacities of countries in the South Asian region is an important part of ensuring that we all recover from this crisis together and ‘build back better," he said.

Dr. Razia Pendse, WHO Representative to Sri Lanka, stated that as cases continue to increase globally and locally, the world is reminded that the pandemic is far from over.

She said that the EU’s timely and strategic support will boost implementation of the Sri Lanka Preparedness and Response Plan to COVID-19, focusing on the pillars of case management, risk communication and community engagement, infection prevention and control, and maintaining essential services.

Dr. Razia Pendse said the expansion of digital technology for capacity strengthening and continuous learning, through the development of the learning management system will go a long way in responding not only to the current COVID-19 pandemic but also to a better prepared and resilient health system for the future

At least 49 vehicles among 300 luxury vehicles worth LKR 2 billion seized by the Customs Department which were imported before and during the import ban, are likely to be auctioned, official sources said. These include vehicles that have been imported without proper documentation and in some cases forged papers, the sources said.

Vehicle importers and traders have been urging the authorities to release the vehicles even after a confiscation fine is imposed.

These vehicles seized by Customs consisting of BMWs and Mercedes Benz had been shipped after April and May 2020 with duty-free permits by several public officials and individuals through local dealers, the sources revealed.

A top level official investigation revealed that at least 49 vehicles had been imported without opening LCs and the balance had been ordered on credit terms from the manufacturers by permit holders without causing an immediate impact to foreign reserves.

Accordingly, the vehicles which were brought down to the country without LCs and using forged or altered documents will be confiscated and sold in a public auction while the balance number of vehicles will be released to importers on a case by case basis, official sources said.

"The offenders will be penalised under the Custom Ordinance in accordance with the top level official committee recommendations," one source said.

The first investment within the Port City Colombo has been realised with the launching of  one billion dollar Colombo International Finance Centre (CIFC) Mixed Development Project in a land mark ceremony   on Thursday 17 December .

The momentous agreement between Browns Investments, the strategic investment arm of the LOLC Group, and China Harbour Engineering Company Limited (CHEC) was signed this morning in the presence of Prime Minister Mahinda Rajapaksa and Ambassador of China to Sri Lanka Qi Zhenhong.

“Attracting foreign direct investment is a key priority for the Government, and this landmark project is a strong indicator that Sri Lanka is now back in business,” Prime Minister Rajapaksa said.

He invited investors from around the world to explore the multitude of investment opportunities that Sri Lanka presents with its strategic location and human resource capabilities.”

The Port City Colombo was the brainchild of Prime Minister Rajapaksa, launched during his presidency together with Chinese President Xi Jinping during his state visit to Sri Lanka in 2014.

With an initial investment of US$ 1.4 billion and an expected overall investment of US$ 15 billion when completed, the Port City is set to be the leading business, retail, residential and tourist destination in South Asia.

The project comprises a total land area of 6.8 hectares, implemented under two phases. The first phase of the CIFC Mixed Development Project, with an investment of USD 450 million and comprising a land area of 3.06 hectares, will consist of the incorporation of a Special Purpose Vehicle (SPV) company, will be jointly managed by Browns Investments and CHEC.

The overall project, which will be implemented in a sustainable and socially-responsible manner, expects to create significant quality employment opportunities across a variety of sectors.

The reclamation of 269 hectares of land from the Indian Ocean was completed in January 2019 and was declared part of Sri Lanka in July 2019 after complying with all necessary formalities including a Parliament resolution.

Infrastructure development covering internal road network, water channel, utility connectivity, 2 km long public beach front and a 14-hectare large Central Park is currently in full-swing and on schedule for completion in 2021 where the PCC is well set to be the leading retail, residential and business destination in South Asia.

Built as an extension of the existing Colombo Central Business District, the PCC had an initial investment of USD 1.4 billion and an expected overall investment of USD 15 billion when completed.

There will be five different precincts in the completed Mixed Development scheme, namely the Financial District, Central Park Living, Island Living, The Marina and the International Island.

 Using the latest sustainable city designs and smart city concepts, PCC will be at the cutting-edge of global standards and is anticipated to be a focal point of South Asia.

The Attorney General informed the Court of Appeal on Tuesday (15) that arrangements can be made for lawyers representing Hejaaz Hizbullah, who is currently being held in connection with the Easter Sunday terror attacks, to meet their client. Accordingly, Hizbullah will be meeting up with his legal counsels at 2.30 pm today (16).

The petition filed by attorney-at-law Chalana Perera, seeking a court order on the Director of CID to grant permission for Hizbullah to access his lawyers, was taken up before Appeals Court Justices Priyantha Fernando and Sobitha Rajakaruna yesterday morning.

Following the announcement of the Attorney General’s decision, the legal matter was concluded by the Appeals Court bench.

The petition in question alleged that the Criminal Investigations Department (CID) has not granted access for Hizbullah’s lawyers to meet him since September, however, when the petition was heard yesterday, the Attorney General denied the accusations.

Meanwhile, Appeals Court President Arjuna Obeysekara recused himself from considering the petition on December 10, citing personal reasons.

The human rights lawyer has been held at the CID headquarters in Colombo since his arrest on 14 April 2020, with restricted access to his lawyers, family and wife.

Hizbullah was arrested on charges of allegedly “aiding and abetting” one of the bombers involved in the 2019 Easter Sunday terror attacks.

Many, including the Euroipean Union , Amenesty International and nearly 150 Sri Lankan lawyers have raised concerns over Hejaaz Hizbullah’s detention under the Prevention of Terrorism Act (PTA) without sufficient evidence.

In October, the case filed against Hizbullah at the Fort Magistrate’s Court was rescheduled to February 21 next year due to the pandemic situation in the country.

Related News: On Hejaaz Hizbullah: The latest victim of Sri Lanka’s draconian Prevention of Terrorism Act

On Hejaaz Hizbullah: The latest victim of Sri Lanka’s draconian Prevention of Terrorism Act