By Rahul Samantha Hettiarachchi
July 04, 2026, Colombo – An official inquiry under the Right to Information (RTI) Act has revealed that the Hambantota International Port Group (HIPG), which operates under a Chinese company, has evaded assessment taxes exceeding Rs. 125 million due to the Hambantota Municipal Council. The Mayor, Mr. D. A. Gamini, had also previously disclosed facts regarding this matter during a session of the Hambantota Municipal Council.
According to official documents obtained from the Information Officer of the Hambantota Municipal Council under the Right to Information Act, the Department of Valuation issued a special valuation report on April 08, 2025, concerning the Hambantota International Port property located at Assessment No. 165, Port Road, Ward No. 13. According to the report, the total outstanding balance due from the port property as of December 31, 2025—including warrant charges and penalty interest—stood at Rs. 125,938,793.50 (amounting to over Rs. 125.9 million).
Red Notices for Rs. 85 Million
To recover these tax arrears, the Municipal Council issued a Red Notice to the port management on May 05, 2026, to confiscate the property in accordance with the Municipal Councils Ordinance. The Red Notice was issued for an outstanding amount of Rs. 85,292,529.00 (over Rs. 85 million), which was overdue by two quarters prior to the date of issuance. Although there were previous discussions at council meetings regarding tax arrears exceeding Rs. 250 million and Red Notices worth Rs. 140 million, the Council has confirmed in writing that there are currently no arrears exceeding Rs. 250 million. Amidst these strict administrative measures by the Municipal Council, the port company took steps to pay a meager sum of just Rs. two million (Rs. 2,000,000) against the tax arrears on June 30, 2026.
Court of Appeal Case and Rs. 1 Million in Legal Fees
As disclosed by the Mayor, the port management has filed a case before the Court of Appeal and obtained an Interim Injunction against assessing the port premises as a “commercial port” and against the Municipal Council’s property confiscation procedures. Based on a notification by the Commissioner of Local Government and advice from the Council’s legal division, the Municipal Council has appointed a private law firm to appear for this case. Consequently, a sum of Rs. one million (Rs. 1,000,000) has also been paid out of the Municipal Council’s funds.
Municipal Council Slaps ‘Confidential’ Label on RTI Questionnaire!
Despite a detailed 10-point RTI application being submitted regarding this tax evasion and the legal process, the Municipal Council has refused to answer the majority of the questions.
Specifically, the Municipal Council refused to provide certified copies of the final official valuation report of the port premises and the issued Red Notices, claiming that such information must be kept ‘confidential’ under Section 5(1)(e) of the Right to Information Act, No. 12 of 2016.
Furthermore, the Municipal Council completely refused to provide copies of the petitions related to the ongoing case in the Court of Appeal, interim injunctions, the procurement process through which the private law firm was selected, vouchers related to the Rs. 1 million payment, and information regarding the total legal fees agreed to be paid in the future (Questions 6 to 10). As the reason for this, the Information Officer stated that since legal proceedings are currently ongoing in court, the details must be kept confidential to enforce the law under Section 5(1)(g) of the Act.
Attempts were made to contact the Hambantota International Port Group (HIPG) via email to inquire about this tax evasion and the legal proceedings, but no response has been received from the port company to date.
