As calls for justice grow louder, hopes now rest on the Criminal Investigation Department (CID) and the Commission to Investigate Allegations of Bribery or Corruption to dig deep into what is widely known as the sugar scam a scandal that became a key talking point for the National People’s Power (NPP) during its election campaigns.
According to reports, the CID has cited the Attorney General’s (AG’s) Department in concluding that the 2020 reduction of the Special Commodity Levy (SCL) on imported sugar from Rs. 50 to just 25 cents per kilo during the SLPP government did not constitute a criminal offense. However, the AG has directed the CID to further investigate whether undue profits were made by specific individuals or companies as a result of the duty cut.
That the investigation dragged on for years raises questions of intent and accountability. Critics argue this delay has given ample time for those involved to cover their tracks.
Technically, reducing the SCL is not illegal the Cabinet has the authority to do so. But the real issue lies in who benefited, and whether the reduction was deliberately timed to enrich a handful of politically connected sugar importers tied to the SLPP.
There’s a growing concern that political pressure may be influencing the course of justice. Many fear that today’s leaders, some of whom face similar allegations of manipulating import duties to benefit allies especially among major rice millers might be reluctant to set a precedent that could turn against them.
Critics of the SCL reduction say the SLPP government orchestrated the cut after ensuring that most sugar importers had already replenished their stocks, making them ineligible for new orders. Meanwhile, cronies of the ruling party had placed fresh orders or had shipments en route, positioning themselves perfectly to cash in on the sudden drop in tax. The scheme, some allege, directly benefited financiers who had sponsored SLPP propaganda in the run-up to the 2019 presidential election.
Uncovering the truth won’t be difficult, experts say. The CID simply needs to identify which importers placed orders immediately before the tax cut and track the arrivals at Colombo Port during that window.
The SLPP framed the SCL reduction as a move to lower sugar prices for the public. But Basil Rajapaksa himself admitted in a TV interview that prices never dropped. In fact, newspaper reports confirm that sugar prices remained unchanged, as importers refused to cut retail prices having purchased sugar at higher rates before the levy reduction.
In the end, the government’s move served the interests of select sugar importers and political financiers, keeping consumer prices stable while profits soared behind the scenes. The public and the economy bore the brunt of this calculated manipulation.
This sugar-fueled scandal, politically engineered and economically devastating, played a significant role in deepening Sri Lanka’s financial crisis. The full truth must be uncovered and those responsible held to account.
