The Hon. Asitha Niroshana Egoda Vithana

¶ 01 Hon. Deputy Chairperson, at this first Session of the Tenth Parliament, we present the Second Report of COPE. Of 457 institutions to be examined, COPE summoned eight over the past seven months, sometimes requiring repeated sessions lasting five to six hours. We examined: National Youth Services Council, Sri Lanka Bureau of Foreign Employment, Sri Jayewardenepura General Hospital, National Gem and Jewellery Authority, SriLankan Airlines, Sabaragamuwa University, National Medicines Regulatory Authority, and the Land Reforms Commission.

¶ 02 Our key realization: for decades, the political leadership—now in Opposition as well—used public enterprises for narrow, corrupt, personal ends. Hence some institutions require month-long probes. Audit discussions revealed the highest political authority directed the corrupt acts; yet often officials are the ones prosecuted. We caution officials: do not approve actions outside your legal mandate; the era has changed.

¶ 03 When probing the National Gem and Jewellery Authority (NGJA), the former Secretary to the Ministry of Industries said if the Authority had not been established as it was, this industry could have contributed more to the country—implying mismanagement. We found institutions being run contrary to their founding purposes. The Land Reforms Commission (LRC), meant to free and manage land for public purposes, vaporized Rs. 300 million out of an allocated Rs. 700 million for the organic fertilizer fiasco, under then Minister S. M. Chandrasena, following President Gotabaya Rajapaksa’s ill-advised decisions. At Sabaragamuwa University, 500 cubic units of soil were removed without the knowledge of the Vice-Chancellor or administrators.

¶ 04 The National Youth Services Council lost Rs. 650 million on campaign events linked to Ranil Wickremesinghe’s presidential campaign—Treasury funds meant for youth uplift used for partisan politics. The SLBFE likewise spent millions on festivities. The pattern: institutions operating against their mandates.

¶ 05 At NGJA, a former Board Member acknowledged that while “Gem and Jewellery” includes gold, there was no real discussion on gold imports, usage, or due revenue to the Treasury—only gems were addressed. On questioning, we learned around 12,500 kg of gold enters Sri Lanka illegally each year. Former NGJA official Ajith Siriwardena’s 2022 study indicated this volume. With approximately 42,000 retail outlets and over 50,000 manufacturing entities, the tax loss is enormous. Currently, gold imports face about 30.5 percent total levies (VAT 18 percent, PAL 10 percent, and Port/cess 2.5 percent). Since 1996, when Bank of Ceylon’s exclusive import right was lifted, the trade became a racket. We saw even a former MP, Ali Sabry Raheem, caught with 3.5 kg of gold worth around Rs. 780 million, exploiting the VIP lounge. Customs HS data and Department of Import and Export Control reports do not reflect gold biscuits, only “imitation” entries, e.g., 2,210 kg from Singapore in 2016 and 3,430 kg from Switzerland—implausible as “imitation.” Annual Treasury loss is around Rs. 1,250 crore.

¶ 06 We propose restoring import authority to a state entity like BOC to curb the racket. Further, during September 2023, just before the presidential election, NGJA released gems worth Rs. 250 million without a Board decision—State Minister then was Chamara Sampath Dassanayake, Cabinet Minister Ramesh Pathirana. Those gems included consignments seized for undervaluation intended for export; the Colombo High Court directed action under the NGJA Act, with fines between Rs. 10,000 and Rs. 3,330,000. The minimum fine was imposed and the goods released the day before the election. Whatever officials decide, subject Ministers are accountable under the Constitution.

¶ 07 We reject recent false allegations made by Hon. Chamara Sampath Dassanayake against Mr. Anton Perera of the National Lotteries Board; such claims, if made outside privilege, would attract defamation. He has attended only two draws in seven months and took no fees.

¶ 08 Thank you, Hon. Deputy Chairperson.