Sri Lanka’s Supreme Court has ordered that a summons be issued to former President Mahinda Rajapaksa in connection with a 2020 sugar import tax concession that allegedly caused the government losses exceeding Rs. 15.8 billion (approximately USD 53 million).
Legal sources noted that Rajapaksa — a dominant figure in post-war Sri Lankan politics — has previously avoided direct legal accountability in several corruption inquiries despite substantial evidence of irregularities. However, they suggested that this time, the veteran politician may find himself firmly entangled in a serious legal battle.
The directive was issued during the hearing of a Fundamental Rights petition filed by Sunil Handunnetti, a former opposition MP and the current Cabinet Minister in the National People’s Power (NPP) government. President’s Counsel and ITAK Acting General Secretary M.A. Sumanthiran appeared for the petitioner.
The petition seeks to recover public funds lost due to the abrupt reduction of the sugar import duty from Rs. 50 per kilogram to just Rs. 0.25 per kilogram.
Mahinda Rajapaksa, who served as Prime Minister and Finance Minister under his brother, then-President Gotabaya Rajapaksa, signed the gazette notification slashing the tax overnight on October 13, 2020. The decision was presented as a measure to lower consumer prices amid economic hardship.
However, retail sugar prices remained unchanged, allowing a select group of importers to pocket the tax savings while selling at pre-concession rates. Subsequent investigations estimated the Treasury’s revenue loss at over Rs 15.8 billion.
Court Questions Absence of Key Respondent
A three-judge bench—comprising Chief Justice Preethi Padman Surasena, Justice Kumudini Wickramasinghe, and Justice Mahinda Samayawardena—expressed surprise that Rajapaksa had not been served notice despite being the minister directly responsible for the decision.
Chief Justice Surasena questioned why a summons had not been issued to Rajapaksa, who was serving as Finance Minister at the time. “Regardless of other circumstances, Mahinda Rajapaksa was the minister directly responsible for the Finance Ministry when the sudden tax exemption was granted,” the Chief Justice noted.
He ordered a summons to be sent to Rajapaksa’s personal address without delay. The court postponed further hearings to January 19, 2026.
