<ul><li>Contractor submits Rs. 4.23 b claim</li><li>No final decision: SLPA</li></ul> Negotiations are now underway between the Sri Lanka Ports Authority (SLPA) and China Harbour Engineering Company (CHEC) over a multi-billion-rupee compensation claim related to delays in the East Container Terminal (ECT) project, even as the long-delayed terminal moves closer to full operational readiness, according to SLPA Managing Director Ganaka Hemachandra.Hemachandra confirmed to The Sunday Morning that the contractor had submitted a claim amounting to Rs. 4.227 billion but emphasised that no decision had been made in relation to paying it.“There is a formal negotiation process ongoing. Both parties have appointed an independent body for the negotiation. We will have to wait for their decision,” he said, noting that the matter was also under scrutiny by oversight bodies. He added that the claim was now part of a wider investigation.“This was also taken up during the Committee on Public Enterprises (COPE) investigations and investigations are now ongoing with the support of the Commission to Investigate Allegations of Bribery or Corruption (CIABOC),” he stated, acknowledging public concern over the financial and procedural implications of the dispute.Hemachandra said that the project, originally scheduled for completion in January 2025, was now expected to be fully operational by January 2026, following a previously disclosed 1.5-year delay.According to him, the project has since been fast-tracked, with key sections already functional. “The second berth of the ECT is now functioning,” he said.“We expect to start the third berth by the end of December, so we are likely to occupy all three berths by the end of December or the first week of January.”He explained that the ECT had now entered its commissioning phase, where advanced systems and equipment were being calibrated and integrated. This includes the terminal operating system, yard equipment control systems, gantry cranes, and semi-automated workstreams.“We are commissioning the systems. The berthing facility and yard operations will be ready by January 2026 and we will be able to commence partial operations by then,” he added.The SLPA Managing Director stated that the major cause of the delay was an unexpected geotechnical obstacle discovered during construction, where a silt layer beneath the seabed, identified only in 2023, had forced a redesign and slowed progress by more than a year.Hemachandra noted that CHEC had partly based its compensation claim on the disruption caused by this discovery.Responding to questions about the financial impact of settling the claim, Hemachandra acknowledged the magnitude of the amount. When asked whether paying Rs. 4.2 billion would be “a huge loss for the country,” he replied: “Yes.”&nbsp;However, he stressed that the decision had to be guided by proper evaluation through the formal negotiation mechanism and the ongoing investigative processes. “We have not decided on whether to pay for it yet,” he reiterated.

ETC: Negotiations between SLPA, CHEC underway

Police defends overseas investigation The three-member Criminal Investigation Department (CID) team that travelled to London last week has stepped up its probe into the alleged misuse of Rs. 16.6 million in public funds during a two-day visit by former President Ranil Wickremesinghe to the UK for an event at the University of Wolverhampton, The Sunday Morning reliably learns.According to sources, the Police Department considers the mission productive, as the officers have uncovered several significant findings related to the incident.The CID’s London visit came under the spotlight last Friday (21) after the matter gained traction during the common Opposition rally in Nugegoda, where MP Chamara Sampath Dasanayake accused the investigators of spending twice the amount that Wickremesinghe had spent during the original trip.Questions also arose during the week over the CID’s failure to notify the Attorney General’s (AG) Department about the overseas investigation.Responding to these concerns, a senior Police source told The Sunday Morning that the CID was under no legal obligation to inform the AG’s Department or obtain its approval when carrying out independent investigations into allegations involving the former President.“We have informed the higher authorities within the Police Department and obtained the required internal approvals. The department has adequate funds for investigations deemed necessary by the CID,” the official emphasised.However, The Sunday Morning learns that while no legal requirement exists to notify the AG’s Department about the London visit, it is generally advisable for investigating teams travelling to foreign jurisdictions to obtain legal guidance beforehand – particularly given that the AG’s Department handles legal proceedings and manages the relevant court matters.“The team is still in London and the investigation is ongoing. They are updating us regularly on their progress,” the senior source said.Citing past cases such as the inquiry into the controversial death of rugby player Wasim Thajudeen and a separate investigative visit to Canada to verify certain evidence, the official added: “This is not the first occasion where a team has travelled overseas for an investigation. We have the authority to visit any location necessary for investigative purposes.”It is also reported that the CID officers have recorded statements from three former members of the Sri Lankan High Commission in London: Saroja Sirisena, Aruna Fernando, and Krishantha Subasinghe. All three have remained in the UK even after the completion of their diplomatic tenures. Additionally, the CID obtained a statement from Manorie Mallikaratchy, who served as Deputy High Commissioner during former President Maithripala Sirisena’s tenure and continues to hold the same position.A reliable source at the AG’s Department reiterated that although the Police Department was not legally bound to inform them, the AG’s Office remained involved in the broader legal aspects of the case.Meanwhile, when contacted, Police Spokesman ASP F.U. Wootler stated that he was awaiting a detailed report from the CID on the investigation team’s travel expenses, adding that the report had not been submitted yet.Former President Wickremesinghe is accused of misappropriating Rs. 16.6 million in public funds during what the CID has classified as a private two-day visit to London. He was arrested in August this year in connection with the case and was remanded briefly before being released on bail.However, all attempts made to contact Public Security Minister Ananda Wijepala and Secretary Ravi Seneviratne were futile.&nbsp;

RW’s Wolverhampton visit: CID team in London unearths key details

<ul><li>Phased approach considered to match low demand</li><li>LNG deal tendered in Feb. 2021, finalised in July 2025</li></ul>The Government is reconsidering the awarding of a multi-billion-rupee Liquefied Natural Gas (LNG) terminal and pipeline off Kerawalapitiya to the already finalised Chinese contractor due to the contract’s ‘take-or-pay’ clause, which could expose the country to substantial losses given its current limited LNG demand, The Sunday Morning learns.The deal – initially tendered in February 2021 and closed in June that year – is structured under a Build-Own-Operate-Transfer (BOOT) model and has reignited debate over the take-or-pay component. The Government finalised the tender in July.When contacted, Ceylon Petroleum Corporation (CPC) Managing Director Dr. Mayura Neththikumarage said that Sri Lanka had technically finalised its Floating Storage Regasification Unit (FSRU) and associated pipeline infrastructure, but the projects had not been officially awarded yet.He clarified that while the infrastructure plans were ready, agreements for LNG supply were still under review. The delay, he explained, was due to phased energy requirements at the initial stage, which did not demand full-scale infrastructure immediately. Some pipelines may not be needed initially and authorities are exploring whether construction can be carried out in phases.A key concern is the take-or-pay clause in LNG supply contracts. With several of Sri Lanka’s power plants operating in standby mode, committing to full take-or-pay contracts could lead to unnecessary expenditures, Dr. Neththikumarage opined.When asked if smaller-scale options, such as a prior proposal from India, were being considered, he noted that these alternatives could be costly. However, he added that no final decision had been made on pursuing short-term or interim solutions.In this context, a senior official close to the matter told The Sunday Morning that while take-or-pay clauses were common in global LNG contracts, including them in a smaller market like Sri Lanka could result in major financial losses. “Even if the system has cheaper sources like hydro or coal, we would still be obligated to pay for LNG we do not need,” he warned.Nevertheless, the official claimed that LNG remained essential for the country’s energy requirements.Renewable energy suppliers have also raised concerns, warning that the agreement could limit the integration of clean energy into the national grid, potentially undermining Sri Lanka’s transition to renewables.According to a 2014 feasibility study, the Colombo North Port was initially identified as the best site for an LNG terminal. However, Kerawalapitiya was later selected due to its suitability for natural gas-fired power generation. The proposed FSRU, with a regasification capacity of 375 million standard cubic feet per day and minimum LNG storage of 156,000 cubic metres, is set to operate under a 10-year Build-Own-Operate (BOO) model, while the pipeline infrastructure will be developed by the CPC under BOOT terms.Global LNG prices, averaging between $ 8.2 and $ 9.6 per MMBtu from 2020 to 2023, remain a key factor. For long-term planning under the CEB’s Long-Term Generation Expansion Plan 2025–2044, a projected price of $ 11.2 per MMBtu is being used, excluding infrastructure costs, with a sensitivity analysis included.&nbsp;Attempts made by The Sunday Morning to contact CEB Chairman and Ministry of Power and Energy Secretary Prof. Udayanga Hemapala regarding the proposed LNG supply for power generation were futile.&nbsp;

Energy supply: Take-or-pay clause delays LNG terminal award

A section of the Colombo-Kandy main road remains closed after a rockfall and earthslip crashed into a shop and a nearby house in Ganethenna, Pahala Kadugannawa, trapping 10 people and prompting a major emergency response.Rescue teams, supported by local residents, managed to pull four people from the debris and transport them to the Mawanella Hospital, two of whom succumbed to their injuries.&nbsp;By 8 p.m. yesterday (22), Police stated that the number of those who had lost their lives had climbed to six.According to the Disaster Management Centre’s (DMC) national situation report issued on Saturday morning, over 800 people across multiple districts have been affected by heavy rains, strong winds, floods, and lightning over the past week, with incidents reported in Jaffna, Kalutara, Gampaha, Galle, Kegalle, Ratnapura, Hambantota, and Badulla.&nbsp;The report also recorded one person previously missing, multiple injuries from fallen trees and lightning strikes, and recurring incidents of localised flooding. Several houses have also suffered varying degrees of damage across several districts.The Kadugannawa disaster comes amid a broader escalation of weather-related hazards. The National Building Research Organisation (NBRO) issued an updated Landslide Early Warning (Level 1-3) covering several high-risk districts, including Kandy and Kegalle, which border the affected area.&nbsp;Several Divisional Secretariat divisions – such as Yatinuwara, Mawanella, Aranayake, Ruwanwella, Deraniyagala, Rambukkana, and Pasbage Korale – have been placed under Amber or Red alerts, signalling elevated to critical landslide risk due to accumulated rainfall.Authorities warn that ongoing rainfall continues to destabilise slopes along the central highlands, increasing the likelihood of additional earth slips, rockfalls, and road failures. The DMC noted that roads near cut slopes, mountain passes, and previously identified landslide-prone areas required heightened attention as the soil remained saturated and susceptible to failure.With several individuals still believed to be inside the damaged shop in Ganethenna, search and rescue operations remain active, though teams are moving cautiously due to the risk of further collapse. Emergency personnel are attempting to clear debris using mechanical equipment while monitoring the surrounding slopes for movement.Meanwhile, the Police has advised motorists travelling between Colombo and Kandy to take alternative routes until geological assessments confirm the area is safe for reopening. The DMC has urged residents living near steep slopes or unstable embankments to remain alert and to relocate temporarily if signs of ground movement – such as cracks, unusual sounds, or tilting trees – become noticeable.The authorities emphasise that the current weather pattern, combined with days of continuous rainfall, may continue to trigger sudden collapses. The DMC has activated district-level emergency teams and reminded the public to heed warnings and hotline alerts as conditions evolve.&nbsp;

Six dead, four injured in Kadugannawa landslide

<ul><li>Dept. meets IMF revenue targets</li></ul>The Inland Revenue Department (IRD) will shift its focus away from introducing new tax measures and towards strengthening administrative efficiency and tax compliance, according to Commissioner General R.P.H. Fernando, who says the department is entering a new phase after meeting its International Monetary Fund (IMF)-mandated revenue goals for 2025.“We will be concentrating more on streamlining our tax administration and to improve our tax compliance, especially return and payment compliance,” Fernando said, emphasising that the IRD’s immediate priority was “to register the people who have not yet been registered and who will actually be in the tax payment category”.She noted that no new tax increases were planned at this stage, aside from recent measures such as lowering the Value-Added Tax (VAT) registration threshold. Several reforms, such as the removal of the tax exemption for service exports and the increase in the personal income tax-free threshold from Rs. 1.2 million to Rs. 1.8 million, are already in effect.Fernando’s comments come as Sri Lanka records one of its strongest revenue performances in recent years. For the first nine months of 2025, tax revenue reached approximately Rs. 1,642 billion, or 102% of the IMF target of Rs. 1,610 billion. Revenue growth was driven by revived vehicle imports, which generated over Rs. 429 billion in the first half of the year, higher VAT receipts from elevated prices, and stronger corporate tax compliance.However, the country’s improved revenue position has reignited debate over how Government funds are being used. Public frustration continues to rise as debt repayments and recurrent expenditures consume most of the State’s income, while visible development progress remains limited.Ministry of Finance Department of National Budget Director General Jude Nilukshan explained that the Government’s fiscal constraints were deeply structural. “Only about 13% of GDP is available for public expenditure,” he said. “The majority of Government earnings are allocated to debt repayments and servicing, with a significant portion also covering recurrent expenditures, including welfare and subsidies.”Despite these limitations, Nilukshan insisted that public finances were being managed with greater discipline than in the past. “This year, for the first time, we have successfully achieved our revenue targets,” he noted, highlighting a major turnaround in cash flow management.&nbsp;One of the most significant improvements, he said, was the timely settlement of Government bills. “We now ensure that no bill remains unpaid for more than three months. All prior and forwarded bills have been settled,” he said. This shift aims to support contractors, suppliers, and local authorities who previously faced severe payment delays.According to Nilukshan, capital expenditure allocation has reached Rs. 1.3 billion, or roughly 4% of GDP, and “no projects are on hold due to a lack of funds”. This represents a significant improvement compared to past years when budget shortfalls routinely delayed development work.He acknowledged that a persistent imbalance remained between recurrent and capital spending. “The public rightly expects capital expenses that boost the economy, such as new infrastructure,” he said. “A greater allocation for capital expenditure is essential to catalyse a significant boom in our economic development.”&nbsp;

State revenue: IRD to shift focus to compliance  

<ul><li>16 properties saw a value rise of over 50%</li></ul>The National Audit Office (NAO), in its latest audit report on the Government Valuation Department, has revealed critical findings concerning the issuance of valuation reports for damage caused to properties owned by Members of Parliament (MPs) during the violent incidents that occurred in the country on 9 May 2022.According to a special investigation conducted by the NAO, it was revealed that after submitting the initial valuation reports, the Chief Valuer had increased the valuation amounts within a range of 22–158%.&nbsp;These adjustments had been made taking into consideration Cabinet decisions, presidential directives, and requests made by district and divisional secretaries, as well as requests from the property owners themselves.In particular, in respect of 16 property valuations, it was observed that the total valuation amount had increased by 51%, rising from Rs. 384,081,900 to Rs. 580,153,100 in the subsequent valuation reports compared to the original reports.According to comments provided by the Accounting Officer, the valuations had initially been reported using 9 May 2022 as the base date, based on requests from district secretaries, courts, and the Police to assess and report property damage related to violent incidents.Furthermore, in accordance with Cabinet Memorandum No. PS/NC/ACD/98/2023 and the presidential directive dated 24 February 2023, the Chief Valuer had been instructed to carry out a revaluation in line with the current market value and to submit the revised reports within one month.&nbsp;Accordingly, the initial valuations had been revised by considering the matters stated in the appeals submitted by the respective parties, as well as fluctuations in the cost of building materials as of February 2024.The revised valuations reported percentage increases that varied depending on the nature of the respective properties, the materials used for construction, and the cost incurred for replacing installed fittings and equipment.The NAO has recommended that action should be taken to identify unusual variations in valuations and that appropriate institutional measures should be established to prevent recurrence of such irregularities.The audit also highlighted severe concerns regarding the arrears of revenue. Out of the arrears of Rs. 896,496,121 existing at the beginning of the year under review, only Rs. 149,765,247, or merely 16.7%, had been recovered during the year under review.&nbsp;Further, according to information submitted to the audit, 90.47% of the total arrears of Rs. 748,730,874 at the end of the year under review, amounting to Rs. 677,342,621, is attributable to just 10 institutions.&nbsp;Of this, 66.48% is owed by the Urban Development Authority (UDA), S.W.R.D Bandaranaike National Memorial Foundation, and Ministry of Urban Development and Housing.Despite this, the department had failed to introduce and implement an appropriate and efficient mechanism to recover the arrears of revenue by reaching formal agreements with the relevant institutions up to 31 May 2025.The audit revealed that this situation had arisen due to several factors, including excessively high fees charged for valuation activities, the disposal of properties during the period between the valuation request and the completion of the valuation, and changes in the requirements of the relevant institutions. It was also observed that the absence of formal agreements had prevented legal action from being taken.In response, the Ministry of Finance had introduced a revised valuation procedure with formal mechanisms and a lower fee structure, effective from 1 June 2023. However, since most of the valuation files had been very old, the relevant institutions had not taken action to obtain these valuation reports by making the necessary payments. Consequently, action is now being taken to write off these old balances in accordance with instructions issued by the Ministry of Finance.When The Sunday Morning contacted former Government Chief Valuer P.D.D.S. Muthukumarana, who held the post during the related period, she said that she was no longer with the department and was unaware of the audit findings. Attempts made to contact incumbent Government Chief Valuer A.S.W.K. Nanayakkara were futile.&nbsp;

MPs’ property valuations: Audit reveals numbers soared post initial reports

<ul><li>Deputy Minister confirms safe, localised elephant drive</li></ul> The Ministry of Environment has stated that the recent elephant relocation effort carried out in Hambantota was successful, noting that it was a short-distance operation designed to protect both communities and wildlife.Speaking to The Sunday Morning, Deputy Minister of Environment Anton Jayakody said that the initiative had been approved at the Hambantota District Coordination Committee after weeks of discussion about rising tensions between villagers and elephants in the area.“The elephants that had moved into villages were guided back into the reserve. This is not the long-distance, 100 km type of drive that people are talking about. It’s a short-range effort covering about 8-10 km. The objective was to ensure the safety of the elephants and the people.”Jayakody, on an earlier occasion, said that the decision had been taken after reviewing past incidents where both humans and elephants had been killed and homes and crops damaged.&nbsp;He added that even earlier reports endorsed by Parliament had recommended moving elephants only to nearby areas rather than pushing them across vast stretches of land.Commenced on 2 November, the project involved relocating herds of elephants living outside protected zones in the Hambantota District. Around 2,000 personnel from the Department of Wildlife Conservation, Air Force, Police, and Civil Defence Force had been deployed.Environmental groups had, however, urged the authorities to reconsider the strategy, pointing out that scientific studies had shown elephant drives to be largely ineffective and, in some cases, harmful.&nbsp;

Human-Elephant Conflict: Jumbo relocation in H’tota successful

<ul><li>Plans for completion by 2028</li></ul>Progress on several long-delayed expressway projects is now moving ahead, with key sections scheduled for completion over the next few years, according to the Road Development Authority (RDA).Construction of several expressway projects had been disrupted due to various issues such as funding issues, contract disputes, and changes in government.RDA Director General (DG) K.W. Kandambi said that work on Phase 1 of the Central Expressway – from Kadawatha to Mirigama – had resumed and was currently underway. According to him, the section is on track to be completed by September 2028.The DG noted that the Ruwanpura Expressway had stalled halfway, particularly the stretch from Kahathuduwa to Ingiriya. Efforts are now being made to restart construction next year. He added that they were working towards recommencing it in 2026.As for the Port Access Elevated Highway, he said that the project was nearing completion. “It is almost finished. We expect to open it to the public in about six months.”Providing updates on other components of the Central Expressway, Kandambi said that Phase 4 – Kurunegala to Dambulla – was currently in the land acquisition and planning stage. “We hope to begin construction in 2027.”Phase 3 of the Central Expressway, from Rambukkana to Pothuhera, is also progressing. The RDA expects this section to be open by April 2027.The Pothuhera-Galagedara stretch is expected to move forward next year. “We will call for tenders next year and our aim is to start work by the end of 2026.”When asked about allegations that interest rates on certain loans obtained for these expressway projects had been increased by the respective funders, Kandambi said that such financial matters were handled by the Treasury and the Finance Ministry.&nbsp;“The RDA only uses the funds allocated to it and focuses on construction. Issues related to financing or loan conditions are dealt with by the relevant ministries,” he explained.Despite past disruptions, the DG said that the RDA expected steady progress in the coming years as it pushed to complete the remaining sections.Deputy Minister of Transport and Highways Dr. Prasanna Gunasena and Ministry of Transport and Highways Secretary Prof. Kapila Perera were not available for comment.&nbsp;

Expressways projects put back on track

<ul><li>To strengthen Sri Lanka’s media landscape</li></ul>In an effort to bring coherence and direction to Sri Lanka’s fragmented media development efforts, the United Nations Development Programme (UNDP) Sri Lanka, together with a consortium of national media institutions, will launch ‘Media Forward 2025,’ a three-day capacity development and dialogue platform from 24–26 November in Colombo.The programme brings into one space a cross-section of the country’s media ecosystem: journalists, broadcasters, digital creators, fact-checkers, researchers, and policy actors. It aims to create an environment where practitioners can examine the challenges shaping the industry and discuss how Sri Lanka’s media can evolve with credibility, responsibility, and resilience.Partnering institutions include the Sri Lanka Broadcasters’ Guild, Hashtag Generation, Factum, Verité Media and Politics, the Media Law Forum, the Free Media Movement, and the Digital Journalists’ Association of Sri Lanka.At the centre of the three days are conversations that have long been overdue in Sri Lanka’s media sector. Sessions will unpack the role of Artificial Intelligence (AI) in newsrooms, the ethical boundaries of new technologies, and the growing pressures posed by misinformation and online hate.A significant portion of the programme is dedicated to Technology-Facilitated Gender-Based Violence (TFGBV), an issue that continues to disproportionately impact women journalists and women in public life. The training sessions will address responsible reporting, digital safety, and privacy, with a strong emphasis on information integrity, a global priority for the UNDP.In a timely addition, representatives from Meta and TikTok are expected to join online for selected sessions. They will brief participants on community guidelines, platform safeguards, and tools aimed at strengthening user safety. Their engagement comes at a moment when the boundaries of online content, responsibility, and accountability are being tested in Sri Lanka and around the world.The UNDP notes that ‘Media Forward 2025’ will bring together the broadest group of media actors convened in recent years for a single initiative. The format is built around dialogue, shared learning, and the recognition that the media’s future cannot be shaped by isolated efforts. Strengthening Sri Lanka’s information ecosystem will require a sector-led approach based on collaboration, continuous learning, and shared responsibility.

ETC: Negotiations between SLPA, CHEC underway

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