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One of the Biggest Tax Frauds: Only Marrikkar Fights While Harini Insists on Paying Taxes—Surprisingly, All Bigwigs Remain Silent Despite Political Differences.

February 8, 2025
in News, Rajya Rahas
Reading Time: 119 mins read
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Social Media Reacts to Minister Snacking During Independence Day Celebration

 Political Rivals Unite in Corruption

Coconut Oil Importers Escape Tax Evasion Charges

IRD Blamed for Rs 6 Billion Tax Loss

PM Thanks Marikkar for Exposing the Coconut Oil Scam

Harin Blamed for SJB-UNP Talks Collapse

Past Protocol Not Followed

The first Independence Day under President Anurakumara Dissanayake was celebrated on February 4th with simplicity, avoiding unnecessary extravagance and wasteful spending—marking a stark contrast to previous years. Notably, the usual road closures at Galle Face to accommodate MPs and their spouses were absent, making way for a more accessible and dignified event.

On the eve of Independence Day, a civil activist filed a complaint highlighting the exorbitant expenses incurred during the past two years under President Ranil Wickremesinghe. The complaint detailed spending of 4.2 million rupees on national flags, 6 million on entertainment, 3.8 million on accommodation, 1.29 million on water, and over 30 million on toilet facilities.

In a significant departure from tradition, the government abandoned hierarchical protocols. Opposition leaders were invited without any formal precedence, with only the Prime Minister and the President being officially received at the event. This led to internal discussions within the SJB regarding the opposition leader’s participation. Despite some advising against it, Sajith Premadasa believed that, as this was the first Independence Day celebration under President Dissanayake and a matter of national importance, he should attend. Consequently, he participated without any protocol recognition.

The highlights of the event were its cost-effectiveness and the shedding of traditional protocols. However, social media was abuzz for a different reason—Minister Samantha Widyarana’s constant snacking on cashew nuts while seated in the front row. Later, all invited dignitaries received small bags of cashews, but Widyarana’s indulgence became a viral sensation, dominating social media discussions throughout the week.

Politically united in robbing

In politics, it is often said that there are no permanent friends or enemies. Today, this notion has evolved, as both allies and adversaries collaborate in corruption, proving the statement truer than ever.

Some individuals, dressed in white or Western attire, project themselves as honest and law-abiding politicians while secretly aiding and abetting these corrupt activities under the guise of political respectability. These so-called saintly figures selectively focus on scandals such as visa fraud, passport scams, and issues related to garlic and sugar—merely to maintain an illusion of integrity. However, they conveniently remain silent on frauds that have been exposed in their presence.

This behaviour underscores how political rivals have united to deceive the nation, siphoning off millions. InsidePolitics is committed to exposing such fraudulent activities to inform the public.

One such case was revealed by Mawrata news report a month ago, which uncovered a massive Rs. 5 billion tax evasion scandal. This involved the illegal import of unrefined coconut oil, which was refined and distributed within the country—an act that may amount to money laundering in broad daylight. Such blatant violations of laws and regulations highlight the extent of corruption ingrained in the political landscape.

The Coconut Oil swindle

This issue dates back to the tenure of former President Ranil Wickremesinghe. With two elections scheduled for 2024, several prominent businessmen were on high alert, ready to fund key candidates in exchange for fraudulent tax advantages from the beginning of the year. These businessmen have a history of engaging in such practices.

Ranil’s administration was marked by economic turmoil. Essential commodities—including dhal, sprats, and grains—along with businesses, faced heavy taxation. In January, the Ministry of Finance imposed taxes on the import, refining, and marketing of crude coconut oil in Sri Lanka. Importers were subjected to an 18% VAT and a 2% Nation Building Tax.

However, from January to October of the previous year, three large-scale companies imported significant quantities of unrefined coconut oil under six different names. Throughout this period, these companies failed to pay the applicable tax rates, resulting in over Rs. 5 billion in unpaid taxes. Despite this, neither the Ministry of Finance nor the Inland Revenue Department took any action to recover the outstanding amount.

Despite our revelation of this last month, few media institutions reported and suddenly remained silent. However, Mawrata newspaper and website continue in their revelation. A huge racket is taking place. However, to the dismay of all none of the so-called economic experts in the opposition utter a word about this. Despite their attempt to portray an honest picture, their history remains a mystery. We recall that we revealed to the government about their tainted beer deals in the past. These very people with stained past attempts to become leaders today will be exposed soon to the country.

These economic experts used to come on TV and speak highly of the garlic scam, sugar tax scam, etc. in various parliamentary committees, but they did not say a word about this coconut oil tax scam that we exposed. Even though these economic whizzes did not speak, we thought that since there are other political parties in the opposition, they would also say a word about this. But those parties did not say a word either.

In the end, we thought that the JVP, which raised a loud voice against fraud, corruption and theft while in the opposition, and its leader Anura Kumara Dissanayake, who is in power, would immediately take action against this theft. But the President and the Malaima government have been silent about this scam for the past few months.

The response of IRD

Later, when it was impossible, we spoke directly to the Commissioner General of the Inland Revenue Department regarding this matter. But she did not respond to our phone calls at first. Despite trying to do so on several occasions, since she did not respond to our phone calls, we also called her secretary and when we expressed our need, she said that she could not speak as the Commissioner General was constantly in meetings. She also said that another Commissioner of the Inland Revenue Department, Mr. Napana, would comment on this matter to the media. Accordingly, we called Mr. Napana on several occasions. But on none of those occasions, Mr. Napana responded to the phone calls.

However, on a later occasion, the Commissioner General had taken steps to respond to this matter to another media outlet. She had mentioned that steps had been taken to appoint an independent committee to investigate this matter. A few days after her response, we called the Commissioner General again. She responded to us at the earliest opportunity. Accordingly, when we inquired about the progress of the investigation of this independent committee, she said that she had allowed the committee to work independently and would refrain from interfering in it. She also informed us to call Mr. Napana and obtain further information in this regard if necessary.

Still no advice

We called Mr. Napana again. Mr. Napana, who exchanged views with us very cordially, said that although a letter has been sent to the Ministry of Finance seeking advice regarding the collection of this tax, the Ministry of Finance has not yet to advised the Department of Inland Revenue. Accordingly, Mr. Napana stated in the ‘Mawrata’ ‘Inside politics’ column that he is waiting for the instructions of the Ministry of Finance to take further action. We immediately reported all this on our website, which is regularly updated.

However, despite our disclosures of this kind, it was a special incident that no member of parliament spoke out on this matter either inside or outside Parliament. Although it is possible to think that politicians are turning a blind eye to this fraud, only one opposition MP took the initiative to fearlessly question this coconut oil tax fraud in Parliament without succumbing to the lure of these large-scale coconut oil businessmen.

That MP was S.M. Marikkar of the SJB. The Minister of Trade, Wasantha Samarasinghe, who was agitated by Marikkare’s questioning, immediately said that he would inquire with the relevant authorities in this regard and take steps to provide an answer within two hours. However, even after two hours, Wasantha did not give a reply in Parliament. Later, Wasantha, who returned to the House, said that he would reply to Marikkare’s question the next day. Until today, let alone yesterday, Wasantha has not been seen answering it even outside Parliament.

Direct response from Harini

However, when we investigated further on this matter, we were informed that the Ministry of Finance under former President Ranil Wickremesinghe had not collected this tax. We were also informed that these coconut oil businessmen had imported unrefined coconut oil into the country without paying any tax for the past few months even after Anura Kumara Dissanayake became the President and that through this, the tax evasion, which was five billion, had exceeded six billion. We immediately exposed this news to the country through the ‘Mawrata’ website.

No national importance

Accordingly, Marikkar informed Parliament last week that he would take steps to inquire about this issue once again from Prime Minister Harini Amarasuriya. However, Marikkar received a phone call from Parliament, which said that this issue could not be presented to the Prime Minister due to its lack of national importance. The Parliament had also taken steps to inform Marikkar of this in writing through a letter. However, at a time when the government was bankrupt and had incurred a huge loss of 5 billion rupees due to non-payment of taxes, Marikkar was seen to be very angry at the fact that it was being treated as a matter of no national importance.

Accordingly, Marikkar informed the parliamentary officials that if there were any problems with the question he had submitted, he would change the question and ask the Prime Minister again. Since he did not receive a good response, Marikkar re-submitted the question to the Prime Minister using different words on the coconut oil issue. Accordingly, Harini received this question in advance, and Harini, after inquiring about the facts from the Ministry of Finance, was to give the relevant answer to Marikkar in Parliament.

Harini’s reply

Harini took the initiative to answer the question raised by Marikkar on Wednesday regarding coconut oil. She clearly stated that from January 1, 2024, when unrefined coconut oil is imported into the country, refined and distributed, it was to be subject to VAT and other taxes. Harini also thanked Marikkar twice for raising this issue in Parliament and requested Marikkar to provide her with the documents in his possession.

However, after the Prime Minister clarified this issue on Wednesday, on Thursday, we inquired again from the Commissioner of the Inland Revenue Department, Mr. Napana, on this issue. At that time, Mr. Napana also explained that the Inland Revenue Department had not yet received any specific instructions in writing from the Ministry of Finance regarding the collection of the relevant taxes.

The problem is not there

There is no need for the Inland Revenue Department to inquire about it or seek clarification from the Ministry of Finance. It is clear that the Ministry of Finance has issued a circular stating that from January 1, 2024, unrefined coconut oil imported into Sri Lanka, refined and distributed will be subject to 18% VAT and 2% Nation Building Tax, but the tax is not being levied. The Prime Minister also clearly announced it in Parliament and said that according to the legal provisions, VAT and other taxes will be applicable from January 1, 2024. If so, the Inland Revenue Department should have collected more than 6 billion in taxes from these coconut oil businessmen from January 2024 to the end of the year. But that has not happened.

Accordingly, no one can prevent the suspicion that this unpaid tax money was used for other purposes because 2024 is a national election year. No one can prevent the suspicion that no one is talking about this because they have benefited from it. However, just as it is said that in politics, there are no permanent enemies and no permanent friends, this fraud of not paying coconut oil tax can be pointed out as a good example of the fact that political enemies and friends are joining forces to cover up this theft.

But no matter, we are ready to take this fight that which ‘Mawrata’ newspaper started till the end. ‘Mawrata’ will continue the fight until the Inland Revenue Department assesses the amount of the relevant tax arrears and recovers that money. It should be noted here that the Prime Minister’s statement in Parliament will also be a lie if the Inland Revenue Department does not do so.

Peace talks tumbled

After the defeats in the presidential and general elections, as soon as the peace talks between the United National Party and the Samagi Jana Balawegaya began, we pointed out every week through the ‘inside politics’ column that UNP leader Ranil Wickremesinghe was not honest of uniting the two parties, but play a game of destroying the SJB and Sajith. Accordingly, from the day the talks between the two parties began, so that the country and the world could see, we reported weekly through the column about the plans made by Ranil’s side to destroy the SJB and SJB leader Sajith Premadasa through these talks, and in whose houses those talks were held.

We once said that the first discussion to destroy the SJB through peace talks began in a super house belonging to Ruwan Wijewardene at Hyde Park Corner. We then mentioned that there was a secret meeting held at a famous political house in Kandy under the chairmanship of UNP General Secretary Thalatha Athukorala, where a list of names of MPs who were said to be ready to join the UNP from the SJB was discussed.

In addition, when we looked at the groups named for these discussions from the SJB side, it was seen that several people who had been in various deals with Ranil throughout the past were named. Some of the members there were people who had been in political deals with Ranil throughout the past two years. After Ranil became President, some of these representatives spent more time in Ranil’s official office in Parliament than in the office of the Opposition Leader in Parliament. Or in the Presidential Secretariat. Others were MPs who had requested lands from Ranil in Hanthana.

The rest were those who had received funds worth crores from Ranil. Others were those who, without even informing the party leader, joined Ranil on the stage and distributed land deeds. Among those present at this discussion table were not only political figures but also people of the country. It should also be noted that several politically clean figures had not been accused of any wrongdoing.

Ranil’s ghost

From the beginning, this group was more interested in somehow tying up the elephant and taking the SJB to Ranil’s feet than in building the SJB as a single party from the village level. Therefore, as soon as they saw journalists and a microphone, they also made statements to the media like hostages, saying, ‘The negotiations are successful, the two parties are coming together, it is useless to say who the leaders are.’ But even though many clean characters inside the SJB did not make a deal with Ranil, did not take money from Ranil, and did not dance to Ranil’s agenda, the one who was appointed from the SJB for these peace talks, was a character who was accustomed to deal politics.

The final discussion of these peace talks was held last week at the house of SJB MP Harshana Rajakaruna. Although the group nominated by the UNP and the group nominated by the SJB attended these discussions, a UNP member who had not been nominated for the discussion also arrived uninvited. That was none other than Harin Fernando. Although it could be thought that if Harin had come to Harshana’s house in his vehicle, it would have happened by chance since Harin had come to Harshana’s house in Thalatha’s vehicle with her, it was seen that Harin had deliberately joined these discussions.

Who is Harin

Harin left the UNP after holding Sajith’s hand when the SJB was formed. Accordingly, after the SJB was formed, it was seen how Harin attacked Ranil and the UNP. Due to the anti-government programs that Harin carried out in the SJB, Sajith took steps to bring Harin to Parliament from the SJB national list. But later, Harin made a deal with Ranil again and left Sajith and joined Ranil. Not only that, after switching parties, Harin also took steps to take a ministerial position from Gota, who he had been attacking day and night.

Not stopping there, Harin launched a massive mudslinging attack against Sajith, who had given him a national list MP position. He attacked Sajith’s character and made comments in and outside Parliament. Harin launched a severe attack not only on Sajith’s family members but also on the name of Premadasa. According to Ranil’s wishes, Harin did all that to destroy Sajith and the SJB. But in the end, the Supreme Court removed Harin from the parliament for the crime of switching parties. By now, the MPs of the Compass have publicly revealed that Harin had misused crores of rupees to hold music concerts across the country while holding ministerial positions in Ranil’s government and that legal action will be taken against him.

Suppose someone like Harin, who has been accused of such things, had come to Harshana’s house with Thalatha and sat at the negotiating table. In that case, the SJB representatives should have informed Harin to withdraw from this discussion. But it is a special incident that there was a strong backbone to do such a thing. Since he was not a representative of the negotiating team and Harin had not been invited, Harshana could have informed him not to come to his house if he wanted. But Harshana did not have the backbone to say such a thing. Accordingly, it is also reported to the column that Harin, who has been forced to sit at the negotiating table, has taken steps to take control of the discussion in the first round.

Ranil sent

However, with the information being reported in this regard, the ‘inside politics column also took steps to investigate the story behind Harin’s journey. Accordingly, this column learned that Mr Ranil Wickremesinghe had taken steps to send Harin. Reports indicate that Ranil, who has understood that the group named by the SJB for the discussion is weak and that they are a group that can be manipulated, has directed Harin to the negotiation table to put an end to Sajith. It is also learned that the appointment of Ranil as the leader of the UNP-SJB alliance instead of Sajith is also part of that operation. Reports say that this column’s steps were taken to convince the SJB group to side with him, implementing this operation to the letter.

In addition, Ranil planned to remove Sajith in the first round and also remove the telephone symbol from the second round of the local government elections. After submitting this proposal to the SJB through Harin, Ranil had the idea that the MPs within the SJB would be divided into two and taken over. Through that, bringing a part of the SJB to the UNP in the final stage was also part of the same plan. By sending Harin to the peace negotiation table, Ranil had such a political dream.

But in the end, with the arrival of Harin, Ranil’s political mission was shattered and it was seen that it became a disaster for the UNP itself. This was because with Harin sitting at the peace negotiation table, there was a strong reaction against it from the vast majority of the party’s MPs constituency organizers and grassroots party members. At the same time, many MPs had met Sajith and pointed out that since the SJB has now established itself as a party free from thieves, fraudsters and corrupt individuals, it should not have any kind of political alliance with anyone or any party with such corruption allegations.

These MPs also pointed out to Sajith that since there is currently no corrupt person in the party, the SJB cannot unite with a party that has corrupt individuals and protect them. Specifically mentioning them by name, they told Sajith that defeated individuals like Harin Fernando, Manusha Nanayakkara and Vajira Abeywardena, who have been accused of serious corruption, should not be included in the SJB at all.

Furthermore, MPs had pointed out to Sajith that there should be no discussion with any party that they are in. These MPs had also informed Sajith that if the SJB somehow decided to join a party with such corrupt individuals and thieves, without listening to the party’s grassroots opinion, they would make an independent decision in the future.

Sajith makes a decision

However, Sajith, who listened attentively to the views expressed by the MPs during the discussion, finally told them only one thing. That is, the SJB will never join hands with thieves and will contest the upcoming elections only under the phone symbol.

‘You guys don’t have to worry about anything. There are only clean people in the SJB. We don’t have anyone who has been accused of corruption. Therefore, if we join hands, we will only join hands with clean people. Also, we will contest any election in the future only under the phone symbol…’ Sajith explained there.

Here, the MPs again pointed out to Sajith that if some seniors in the party who claim to be seniors are trying to imprison Sajith through these peace talks, then he should take fearless action against those seniors as well. These MPs also pointed out to Sajith that in such a case, they will stand by Sajith unconditionally. There, Sajith clearly told them that the SJB would not join forces with corrupt groups that have no popular base.

However, with Harin’s intervention in the UNP-SJB peace talks, it has been confirmed that all the facts we have revealed through this column since the peace talks began have now become true. Also, with Harin’s arrival, serious criticism has been levelled from within the SJB itself against the SJB team that participated in the peace talks. Against such a backdrop, the SJB management committee had taken steps to meet in the evening after the parliamentary meeting last Wednesday afternoon.

Sajith clearly stated that when the talks with the UNP began, the SJB working committee approved not to compete with the UNP or the SJB as provinces, but to have both parties compete together under the phone number and the SJB alliance. However, Sajith pointed out that the discussions are currently taking place outside the approval given by the Working Committee. At that time, a member of the Management Committee said that Thalatha had stated that the two parties would merge and contest under the UNP. It was also said that the SJB had not made any such statement. However, taking a firm decision, Sajith said that he would discuss the matter further with SJB General Secretary Ranjith Madduma Bandara and inform him of the party’s position in the future and that until then, discussions with the UNP should be stopped.

SJB resist

There were also many comments about Harin’s arrival for the peace talks and the SJB group’s lack of opposition to it. Some raised doubts that the SJB representatives did not oppose it because the SJB members knew in advance that Harin would be brought to the negotiating table that day by Thalatha.

However, after Harin’s arrival, a strong attack was also seen on the peace talks from the SJB side. Accordingly, SJB General Secretary Ranjith Maddumabandara, who had come to Anuradhapura to select candidates for the local government election, later stated at a media conference that even if they join forces with the UNP, Sajith should be the leader and that there would be no change in the leadership.

‘Sajith is the leader of our party. Whatever alliance is formed, that alliance will be formed under the leadership of Sajith. Sajith received 4.3 million votes in the presidential election. Sajith received 1.9 million votes in the general election. 40 MPs from the SJB entered parliament. We are the main party in the opposition. Therefore, under Sajith’s leadership, we will ally with the telephone symbol….’ Madduma Bandara said.

In addition, people like Hesha Withanage of Ratnapura, Thushara Indunil of Kurunegala, and Charith Abeysinghe of Colombo also expressed their views on this matter last week. Hesha said that the SJB, which has 40 MPs, should not go after anyone, and that anyone can enter into an alliance with the SJB after discussing it with them if necessary. Hesha also said that no one who has been accused of anything will be included in the SJB. In addition, Thushara Indunil said that the tail should not be allowed to dance with the elephant and that the elephant should dance with the tail as it wishes. Through this, Thushara Indunil implicitly said that the SJB should not act as the UNP, which has no MPs, and that the UNP should act as the SJB wants.

Opposition to Kabir

Some in the SJB who are in this discussion group are keen to drag the SJB to Ranil’s side, instead of winning Sajith, worked to drag him by the legs and defeat him during the last presidential election. The best example of this is the protest against the inclusion of G.L. Peiris, Dallas Alahapperuma, Channa Jayasumana, and Nalaka Godahewa, who were considered pure characters and belonged to the 13 groups that were independent from the Pohottuwa to support Sajith before the presidential election. That protest was made by none other than a group including Kabir, Harsha, Iran.

They not only attacked Nalaka Godahewa, saying that there were allegations against him but also attacked Professor G.L. Peiris, who had never been accused of corruption. It was not for anything else but to satisfy Ranil’s desires. There, they said that G.L. was in the government with Mahinda.

However, last week, when several SJB MPs met Kabir in the opposition lobby, they questioned Kabir on this matter. They said that how can Kabir and the group that opposed G.L., claiming to have been in Mahinda’s government then, join the UNP, which is ruled by thieves today?

‘Back then, when you were going to take the Dallas, G.L. and Nalakas into the SJB alliance, they shouted against it. They said no. But today, you are talking about merging the SJB with a party that has these central bank thieves, those who say that people were sent abroad and stole money, those who say that government lands were stolen, and those people in Galle who say that if they open their mouths, they will be thieves. Are you telling us to wash away those thefts for ourselves? We are not coming to join those thieves. We will do whatever you want. When those thieves finally come to our side, we will also have to take on a false name…’ Kabir was reportedly silent when these MPs asked him.

Sajith is firm

While Ranil was playing a game to destroy Sajith and SJB by putting Harin in front of him, Sajith had taken steps to play a game that would throw stars at anyone last week. That was by bringing the entire opposition together at the Opposition Leader’s office in Parliament. Sajith first took up the task of bringing the opposition together in this way two weeks ago. All the opposition party leaders had been invited to it, but not many of their faces were visible that day. However, the presence of members of all the parties representing the opposition in this second discussion held in Parliament last Wednesday was a special event.

For example, it was seen that members representing not only the Tamil National Alliance in the North but also all the provinces of the South, West, East and Plantation participated in the discussion called by Sajith. It was a special event to see the faces of all the opposition party representatives such as Adaikkilanathan, Gajendran Ponnambalam, Namal Rajapaksa, Dilith Jayaweera, Anuradha Jayaratne, Jeevan Thondaman, D.V. Chanaka, Ravi Karunanayake, Rauff Hakeem, Rishad Bathiudeen, Mano Ganeshan of the Tamil Alliance.

Accordingly, all the MPs pointed out to Sajith that the government is currently planning to unleash repression. In particular, they pointed out to Sajith that the government is planning to move towards dictatorship by suppressing democracy, and that they are preparing to implement that repression both outside and inside Parliament. Therefore, it was explained that all the opposition parties should fight together to protect parliamentary democracy.

In addition, the MPs pointed out that steps should be taken to obtain greater participation from opposition MPs in parliamentary committees. Accordingly, it was ultimately decided to jointly fight against the government’s repressive program and to prepare a common agenda for that. They also felt that this discussion should continue.

Another resignation

These days, the resignations of chairmen are being heard from all four sides of the government. Already, six chairmen who were appointed to 6 institutions after the Malima government was formed have submitted their resignations.

However, by now, the ‘inside politics’ column has learned that a person who held a powerful secretary position in the previous government as well as in this government is preparing to retire within the next few weeks. News about this was published on social media with names and photos, and since it is unofficial news, we cannot mention the names of that secretary. However, the column has also heard that this secretary has told several of his friends that he is currently under great pressure. The column has also heard that this secretary has had cordial discussions with several politicians close to him in this regard.

By Special Correspondent

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