10th Parliament· 154 sittings on record · 30,475 speeches · latest 10 June 2026

The Hon. S.M. Marikkar

Samagi Jana Balawegaya· Colombo· 5 February 2025 ·Oral question: Oral Question: Coconut Oil Import Policy (Q.291/2024)

Public FinanceCorruption & Governance Reform
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S.M. Marikkar raised concerns over alleged non-payment of VAT on large volumes of unrefined coconut oil imported in 2024, citing correspondence between a company, the Department of State Finance Policy, and the Inland Revenue Department. He stated that more than Rs. 5.8 billion may be recoverable from four companies and asked whether the Ministry of Finance would instruct the Inland Revenue Department to collect the outstanding taxes.

Verbatim record (translated)

Machine-translated from Sinhala / Tamil / English

¶ 01 Hon. Prime Minister, thank you for the clear answer. From 01 January to 30 October last year, 38,814,918 kilograms of coconut oil were imported into Sri Lanka. As you stated, the import levy has been charged. I am speaking about unrefined coconut oil. These have been put on the market without refining, or refined and sold, but taxes have not been paid so far. In addition, 1.7 million kilograms of unrefined coconut oil were imported in November and 1.48 million kilograms in December. Hon. Prime Minister, this non-payment of taxes began during the tenure of former President Ranil Wickremesinghe.

¶ 02 Accordingly, one company that imported coconut oil had written to former President Ranil Wickremesinghe, as Minister of Finance, asking whether tax was payable. Thereafter, on 2024.07.31, the Department of State Finance Policy wrote to the Department of Inland Revenue on this matter. I can provide that letter. Subsequently, on 2024.08.29, the Inland Revenue Department wrote back to the Department of State Finance Policy stating that VAT is payable. However, it has been said to seek the opinion of the company that requested from former President Ranil Wickremesinghe. I do not understand that. Please give a clear answer that VAT is applicable; there is no need to seek such an opinion. Then, in aggregate, more than Rs. 5.8 billion would be payable. You know that Rs. 5 billion has been allocated to purchase paddy this season. Here, four companies have to pay more than Rs. 5.8 billion. Therefore, will the Ministry of Finance instruct the Inland Revenue Department to recover these taxes?

Provenance

Source
Hansard, Wednesday, 5 February 2025 ·No. 1739175806099814 ·English daily/uncorrected Hansard
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Cite as: The Hon. S.M. Marikkar. 10th Parliament, Parliament of Sri Lanka. Hansard, 5 February 2025. No. 1739175806099814. Politick, https://staging.politick.io/lk/speeches/26747