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Economic warning signs and judicial storm put AKD and Govt. on the defensive as Opposition unites

Economic warning signs and judicial storm put AKD and Govt. on the defensive as Opposition unites

26 Jul 2026 | Black Box By Capt. Vasabha


Just as President Anura Kumara Dissanayake (AKD) and his Janatha Vimukthi Peramuna (JVP)-led National People’s Power (NPP) Government seek to persuade voters that Sri Lanka has turned the corner on its economic crisis, fresh warning signs are beginning to emerge.

Inflation has resumed its upward march for a second consecutive month, raising uncomfortable questions about whether the hard-won stability of the past two years can withstand a new wave of external shocks. While the Government has pointed to improving macroeconomic indicators, stronger State finances, and a robust performance in exports during the first half of 2026 as evidence that the recovery is taking hold, rising living costs threaten to overshadow those gains in the minds of ordinary citizens.

The challenge extends well beyond domestic policy. The volatile security situation in the Middle East and the resulting increase in global crude oil prices pose a significant risk to Sri Lanka’s fragile recovery. As a net importer of petroleum, the country remains highly exposed to fluctuations in international energy markets. Higher fuel prices would not only increase the import bill and place renewed pressure on foreign exchange reserves but also feed into transport, electricity, and food costs, potentially reigniting inflationary pressures just as they appear to be easing. At the same time, any prolonged disruption to shipping lanes in the region could raise freight and insurance costs, affecting both imports and exports.

These external headwinds come at a time when Sri Lanka’s export sector has provided one of the few consistently positive stories of the economy. Merchandise exports recorded healthy growth during the first six months of 2026, supported by resilient earnings from apparel, tea, rubber products, information technology services, and other key sectors. That momentum has strengthened foreign exchange inflows and offered the Government tangible evidence that the economy is gradually regaining competitiveness. Yet the sustainability of that recovery will depend not only on export performance but also on the country’s ability to shield itself from imported inflation and geopolitical uncertainty.

Against this backdrop, June’s inflation figures have become more than just another set of economic data. They are an early political test for the AKD administration. Data from the Department of Census and Statistics show year-on-year inflation accelerating to 6.5% in June from 5.4% in May, marking the second consecutive monthly increase. Food inflation more than doubled from 1.5% to 3.3%, while non-food inflation remained elevated at 9.3%. Although core inflation, which excludes food, energy, and transport, held relatively steady at 5%, offering some indication that the increase was driven largely by volatile food prices, such distinctions are unlikely to resonate with households struggling to manage rising grocery bills.

With the price index still more than 122% above 2021 levels, the Government’s narrative of economic recovery is likely to be judged less by macroeconomic statistics than by the daily cost of living – a reality that could shape both public confidence and the country’s political landscape in the months ahead.

 

Trump’s tariffs offer narrow advantage

 

Meanwhile, the latest round of trade measures by US President Donald Trump’s administration presents Sri Lanka with both a challenge and an opportunity.

Beginning Friday (24), imports from 60 trading partners, including Sri Lanka, will be subject to new tariffs under Section 301 of the US Trade Act of 1974. Colombo falls into the lower tariff band, facing an additional 10% duty, while several major competitors – including Vietnam, China, and Thailand – will face a 12.5% tariff.

The tariffs are part of Washington’s new strategy of using trade policy to pressure countries to strengthen laws against forced labour and improve enforcement across global supply chains. Rather than focusing purely on trade deficits, the Trump administration is now placing labour standards at the centre of its trade agenda.

For Sri Lanka, the decision could have been considerably worse.

Well before Washington concluded its investigation, President AKD moved to gazette regulations prohibiting the importation of goods wholly or partly produced using forced labour. The new rules require importers to provide certified documentation to Sri Lanka Customs demonstrating compliance. Although it remains to be seen how Washington will assess the effectiveness of those measures, Colombo can argue that it acted proactively rather than waiting for US pressure.

That may partly explain why Sri Lanka escaped with the lower 10% tariff instead of the higher rate imposed on many other exporting economies.

Nevertheless, the Government has little reason for complacency.

The US remains Sri Lanka’s largest export market, with apparel accounting for the bulk of shipments. Even a 10% additional tariff increases costs for exporters already dealing with higher freight charges, rising energy prices, and renewed inflationary pressures. Nor does the competitive picture offer unqualified comfort.

While several major Asian manufacturing rivals have been hit with steeper tariffs, Bangladesh – Sri Lanka’s principal competitor in apparel – also falls into the 10% tariff category. That means Colombo gains little relative advantage in the sector where it matters most. The playing field between the two South Asian apparel exporters remains largely unchanged, even as both face higher costs in accessing the US market.

The AKD Government therefore faces a dual challenge. Diplomatically, it must continue engaging Washington to demonstrate that Sri Lanka’s forced labour regulations are being effectively implemented. Economically, it must ensure exporters remain competitive despite the additional duty.

The episode also illustrates a broader shift in global trade. Market access is increasingly being determined not only by price and quality, but by labour standards, governance, and supply chain transparency. Countries that adapt quickly will be better positioned to protect their exports.

For Colombo, the immediate outcome is mixed. Sri Lanka has avoided the highest tariff bracket and can point to its recent regulatory reforms as evidence of compliance. But with Bangladesh receiving the same treatment, there is no clear competitive gain for the country’s most important export industry.

 

Judicial controversy and political storm

 

Amidst the fragile economic conditions, the Government’s proposal to raise the retirement age of Supreme Court judges from 65 to 67 and Court of Appeal judges from 63 to 65 continues to spark political and legal backlash, with the Opposition and the Bar Association of Sri Lanka (BASL) warning that the move could undermine judicial independence.

Speaking at a Samagi Lawyers’ Association event last Sunday (19), Opposition Leader Sajith Premadasa accused the JVP/NPP Government of attempting to consolidate power through constitutional changes affecting the Judiciary. He argued that strengthening democracy required an independent Judiciary and questioned why the Government was pursuing this amendment while failing to move ahead with the abolition of the executive presidency.

Premadasa also warned that weakening public confidence in the Judiciary could have wider implications for Sri Lanka’s international standing, including its engagement with the International Monetary Fund (IMF) and access to trade concessions such as the European Union’s (EU) Generalised Scheme of Preferences Plus (GSP+).

The BASL has also urged the Government to halt the proposal until meaningful consultations are held. In a letter to Justice Minister Harshana Nanayakkara, the association noted that there was no demonstrated institutional necessity to extend judges’ retirement ages and cautioned that the move could create the perception that the amendment was intended to benefit sitting judges rather than address judicial needs.

The BASL has called for a committee comprising representatives of the Ministry of Justice, the Judiciary, the legal profession, and other stakeholders to study the proposal before any constitutional amendment is introduced.

Meanwhile, the Joint Opposition convened by G.L. Peiris used a joint press briefing on Flower Road to accuse the Government of prioritising judicial term extensions over disaster relief, railway repairs, and a worsening economy, while quietly benefiting just a handful of judges.

Peiris opened with a warning on judicial independence, saying the proposed two-year extension to judges’ terms had drawn strong opposition from lawyers, academics, and civil society, and was being pushed through without transparency. He linked the move to Sri Lanka’s exposure at the UN Human Rights Council (UNHRC) in Geneva, where nearly 100,000 pieces of evidence have been compiled against the military and political leadership, arguing that leaving Supreme Court and Appeal Court vacancies unfilled was damaging the Judiciary’s international credibility at the worst possible time.

Former Minister Rajitha Senaratne turned to the economy, noting that inflation had climbed to 7% against a Central Bank projection of 5%, with import costs outpacing export growth and the trade deficit ballooning to $ 4 billion. Disaster victims, he said, remained in tents while the Government fixated on judges’ tenure.

With criticism mounting from the Opposition and the legal community, the proposed amendment has become the latest flashpoint in the debate over judicial independence, constitutional reform, and the balance of power under the JVP/NPP Government.

 

Sajith convenes meeting

 

The issue has also resulted in getting the Opposition parties together, with the Government’s refusal to allow a parliamentary debate on matters relating to the Judiciary last Wednesday (22) prompting an urgent meeting of Opposition Members of Parliament (MPs) at the Opposition Leader’s Office in the House, chaired by Sajith Premadasa.

The Opposition had earlier requested a debate grounded in core democratic principles – the tripartite system of government, separation of powers, and checks and balances – but the Government had declined. 

MPs at the meeting stressed that issues affecting judicial independence must be openly debated in Parliament, warning that shutting down such discussion undermined democratic governance. Premadasa described the refusal as a blow to democratic principles and the meeting turned to discussing the parliamentary and political steps the Opposition would take next.

 

Opposition unites

 

Meanwhile, a further step in uniting the Opposition was seen with the meeting of Opposition parties convened by Premadasa at the Opposition Leader’s Office on Marcus Fernando Mawatha in Colombo 7 on Thursday (23). Former President Ranil Wickremesinghe, Sarvajana Balaya Leader Dilith Jayaweera, Sri Lanka Podujana Peramuna (SLPP) National Organiser Namal Rajapaksa, former Prime Minister Dinesh Gunawardena, and several other representatives of the Opposition sat around a table to discuss the adverse impact of the Government’s move to extend the retirement age of a group of judges.

As decided earlier in the week, members of the Joint Opposition led by Peiris were also present at Thursday’s meeting.

Premadasa stood at the entrance of the Opposition Leader’s Office to welcome all the Opposition leaders to the meeting. Premadasa’s warm welcome of Wickremesinghe was captured by many cameras at the site. No. 30, Marcus Fernando Mawatha is not a new place for Wickremesinghe, who had used the venue as his office when he served as the Opposition Leader.

Once the meeting got underway, former President Wickremesinghe declared that Sri Lanka’s Opposition had united around a common cause in response to what he described as the Government’s politically driven actions, arguing that the time had come for all democratic forces to stand together in defence of the country’s institutions.

Highlighting the mounting crisis in the Judiciary and the prolonged delays in the administration of justice, Wickremesinghe urged Opposition Leader Premadasa to move a proposal for the appointment of a Parliamentary Select Committee to examine the issue and expedite the disposal of nearly 1.1 million pending court cases. He also announced plans to convene a series of forums in the coming weeks, bringing together the Maha Sangha and members of the legal fraternity to discuss the future of judicial independence and the rule of law.

Premadasa, meanwhile, warned that every previous attempt to erode the independence of the Judiciary had ultimately culminated in the downfall of the Government responsible. He maintained that protecting democracy and safeguarding the sovereignty of the people required all political forces to put aside their differences and unite in defence of the Constitution and the country’s independent institutions.

The SLPP’s Namal argued that past efforts to introduce constitutional amendments targeting individuals had been decisively rejected by the public. He further contended that extending the tenure of office-holders alone would do little to address the chronic backlog in the courts or restore public confidence in the justice system.

At the conclusion of the meeting, leaders of all Opposition parties agreed to coordinate a broad-based political campaign, both within Parliament and beyond, to oppose what they described as attempts to interfere with the independence of the Judiciary and to mobilise public support for the protection of democratic institutions.

 

Issue of Patali’s invite

 

However, it is learnt that there had been an issue over the invitation for Thursday’s meeting not reaching another member of the Joint Opposition – former Minister Patali Champika Ranawaka.

The fact that Ranawaka had not received an invitation to the meeting had been discussed during the meeting of the Opposition leaders at Peiris’ residence earlier in the week. After discussing the current situation in the country and the case of former Private Secretary to former President Gotabaya Rajapaksa (GR) Sugeeshwara Bandara, the next item on the agenda was the issue of the judges’ retirement age saga and the meeting being convened by Premadasa in his capacity as the Opposition Leader.

When a participant at the meeting had noted that Ranawaka had not received an invitation for the discussion, a senior member at the meeting had telephoned Samagi Jana Balawegaya (SJB) MP Sujeewa Senasinghe and informed that Ranawaka had not received an invitation for Thursday’s meeting. Senasinghe, it is learnt, had said that it was definitely an oversight on the part of the SJB office and asked for several minutes to check on the matter. Senasinghe had further noted that there was no issue between the SJB and Ranawaka and that the party would definitely invite him for the meeting.

After Ranawaka’s invitation issue was discussed, the Joint Opposition members had concluded the meeting after discussing the planned meeting with the Ambassador of Switzerland to Sri Lanka. Ranawaka, however, attended the meeting at the Opposition Leader’s office on Thursday.

 

BASL special meeting

 

Meanwhile, the BASL is to hold a special general meeting on Wednesday (29) to discuss the course of action on the Government’s move to extend the retirement age of judges of superior courts.

The decision to convene a special general meeting was made during a meeting convened by the BASL President with President’s Counsels on 17 July.

 

Defeating no-faith motion

 

The JVP/NPP Government meanwhile comfortably defeated the Opposition’s no-confidence motion against Justice Minister Harshana Nanayakkara in Parliament on Friday (24), with its parliamentary majority ensuring the outcome was never seriously in doubt.

The motion was presented in direct response to the Negombo Prison unrest on 5 and 6 July, where clashes left a number of Prisons officers and inmates dead and several others seriously injured. The Opposition argued that Minister Nanayakkara had failed to fulfil his responsibility and accountability for ensuring the safety of those in custody.

While the vote reaffirmed the Government’s numerical strength, the debate provided the Opposition with another opportunity to question the administration’s handling of the economy, governance, and recent policy decisions.

For the AKD administration, the motion posed no immediate political threat. However, it came amid growing criticism over issues ranging from judicial and prison reforms to governance-related issues.

Although the Government secured an easy victory inside Parliament, the debate highlighted the Opposition’s determination to keep political pressure on the administration both inside and outside the House. As the Government moves deeper into its term, its biggest challenge will be maintaining public confidence rather than parliamentary numbers.

 

JVP/NPP’s nationwide campaign

 

Meanwhile, one of the most significant political discussion attended by President AKD in recent days was the meeting held with the seniors of the JVP/NPP, which was unlike a routine party consultation; it reportedly focused extensively on the evolving political environment, emerging challenges, and the need for the Government to strengthen its position among the people.

The outcome of that meeting has now triggered considerable political speculation.

Although no national election is currently on the immediate horizon, the Government has decided to launch a major nationwide political mobilisation campaign. The plan includes a series of large-scale district-level rallies featuring the President and senior JVP/NPP figures, alongside a countrywide door-to-door programme aimed at directly engaging voters.

The campaign, expected to continue for approximately three months, appears to represent a deliberate political strategy rather than a conventional Government outreach programme. A coordinated schedule is reportedly being prepared to determine the participation of the President and other party leaders at these events.

The timing of this decision has become the subject of political discussion.

Why has the Government chosen to embark on a major election-style campaign when there is no immediate national election? What political calculations lie behind the decision to take the President and the party leadership directly to the grassroots level?

One explanation, it is learnt, that is being discussed within political circles is the growing pressure surrounding the long-delayed Provincial Council (PC) Elections.

For months, the Government has faced criticism over the absence of a clear roadmap for conducting the long-delayed PC Polls. While various mechanisms, including proposals for parliamentary committees, have been considered as possible ways of addressing the issue, political observers believe the administration is aware that indefinite postponement cannot continue without consequences.

Against this backdrop, the nationwide political campaign appears to serve multiple purposes. On one level, it provides the Government with an opportunity to explain its policies and achievements directly to the public. On the other, it allows the ruling party to measure public sentiment and reinforce its political base before confronting future electoral challenges.

The administration may also be seeking to avoid entering any future election cycle from a defensive position. By strengthening its grassroots organisation now, the Government appears to be preparing itself for possible political battles ahead, whether they arise from Opposition mobilisation, regional political pressure, or demands for elections.

 

Chemmani and EU visit

 

Meanwhile, President AKD and his Government might also need to further strengthen their international relations, with the EU delegation that visited Sri Lanka’s largest mass grave in Chemmani, Jaffna being met not with ceremony but with protest, which stands as a pointed reminder that diplomatic visits to sites of atrocity carry political weight whether or not they intend to.

Forensic archaeologist Prof. Raj Somadeva had briefed the delegation on excavation progress at the site, where the recovered death toll now stands at 467. However, the substance of the visit was overtaken by the demonstration surrounding it, held under heavy Police presence.

North-East Association of Relatives of Enforced Disappearances Chairperson Yogarasa Kanagaranjani had used the moment to put the families’ demands directly before the visiting diplomats. The message was unambiguous: decades of domestic justice mechanisms have failed to deliver truth or accountability and there is little faith left that they will start now.

Protesters had gone further, tying their demands to leverage the EU actually holds – calling for the repeal of the Prevention of Terrorism Act (PTA) as a precondition for Sri Lanka’s continued access to GSP+ trade concessions. It is a calculated ask, converting a humanitarian grievance into an economic one.

For the EU delegation, the visit was meant to signal attention. For the protesters, it was an opportunity to demand something more binding than sympathy and to insist that the international community’s leverage be spent, not just expressed.

 

PC Polls conundrum

 

While the EU delegation faced some hard asks in Chemmani, the issue of the continuing delay in holding the long-delayed PC Elections could add further pressure on the Government before the international community. Despite repeated assurances that PC Elections remain on the Government’s agenda, the political reality appears to tell a different story. Judging by the prevailing mood within the administration, this is hardly the moment for the ruling JVP/NPP Government to test its electoral strength at the provincial level.

It is learnt that internal opinion surveys commissioned from the ruling Party Headquarters in Pelawatte over recent months have consistently painted an uncomfortable picture. The feedback had reportedly suggested that PC Elections could carry significant political risks for the Government, with concerns that the JVP/NPP may struggle to replicate the electoral momentum that swept it into office. Those assessments have repeatedly reinforced the argument within sections of the Government that the elections should be postponed for as long as politically possible.

It was against this backdrop that JVP General Secretary Tilvin Silva, during a visit to Jaffna, publicly declared that PC Elections could not be held this year because the funds earmarked for the polls had been diverted to meet the costs of relief and reconstruction following Cyclone Ditwah. His remarks immediately fuelled speculation that the Government had found a convenient justification for delaying an election it was politically reluctant to face. However, the explanation quickly unravelled.

Within days, Cabinet Spokesman, Minister Nalinda Jayatissa publicly contradicted Silva, telling journalists after the weekly Cabinet meeting that the claim was incorrect. The contradiction became even more pronounced when Prime Minister Harini Amarasuriya addressed Parliament recently, categorically stating that the allocation made for the PC Elections had not been utilised for Cyclone Ditwah relief and that the necessary funds remained available to conduct the polls.

The Government’s senior leadership had effectively disowned the explanation offered by one of the coalition’s most influential figures. The contradictory statements have inevitably raised questions about whether the issue is financial at all, or fundamentally political.

However, the JVP/NPP’s recent move to focus on a nationwide political campaign this year, with the 2027 Budget making more promises on grassroots-level development, might indicate that the Government is inching towards holding the long-delayed polls without allowing the issue to become another factor that would unite the Opposition.

 

Backstory of new political platform

 

Meanwhile, the newly-formed political platform bringing together six Tamil-speaking political parties, which has also demanded the holding of PC Elections, was not the result of a sudden political realignment, but the outcome of several weeks of discussions driven by a shared concern over the future political influence of Tamil and Muslim communities and the Government’s approach to long-standing issues affecting minority communities.

The initiative had begun taking shape nearly six weeks before the recent formal announcement, with the first round of discussions held on 3 June at the Colombo residence of Ilankai Tamil Arasu Katchi (ITAK) General Secretary, former MP M.A. Sumanthiran. The meeting was convened with the participation of leaders and representatives of several Tamil and Muslim political parties, with ITAK taking the lead in bringing the parties together.

However, the discussions seem to have been carefully structured from the beginning, with certain political figures excluded from the process. Four MPs – Ramanathan Archchuna, Kader Masthan, Gajendrakumar Ponnambalam, and Imran Maharoof – were not invited to participate, with the parties involved maintaining that there were political reasons for limiting participation.

The discussions among the participating parties had centred on three key issues that eventually became the foundation of the new political understanding – the introduction of a new constitution, the holding of long-delayed PC Elections, and the resolution of land-related issues affecting Tamil communities in the northern, eastern, and plantation regions.

These issues were selected because they represented areas where the Tamil and Muslim parties believed the Government had failed to make sufficient progress despite earlier commitments.

During the 2024 Presidential Election campaign, the JVP/NPP leadership had made several public commitments regarding these matters. President AKD and senior Government figures had visited the north and assured voters that a new constitution would be introduced, PC Elections would be conducted without further delay, and steps would be taken to release civilian lands still held by the security forces.

However, nearly two years after the change of government, Tamil-speaking political parties argue that there has been little movement on constitutional reform or PC Elections. Although some progress has been made in releasing lands held by the military, they maintain that significant areas in the north and east remain under security force control.

It was this perceived gap between political promises and implementation that had encouraged the parties to develop a common platform.

During the initial discussions, the parties had agreed that they should coordinate their positions on these three issues while allowing individual parties to maintain their own identities and independent positions on other political matters. The understanding was therefore not to create a formal political alliance but to establish a united mechanism to advocate on issues considered common to Tamil and Muslim communities.

The need for coordination had also led to discussions on appointing a person to facilitate communication between the parties. Former Leader of the Ceylon Workers’ Congress (CWC) Jeevan Thondaman had proposed appointing a coordinator, following which Sri Lanka Muslim Congress (SLMC) Leader Rauff Hakeem had suggested Batticaloa District MP Shanakiyan Rasamanickam for the role.

Hakeem had reportedly pointed out that Rasamanickam’s ability to communicate in all three national languages and his working relationships with leaders across different political parties made him suitable for the responsibility. The proposal had received the agreement of the participating parties.

Beyond immediate policy concerns, the formation of the platform was also shaped by broader electoral calculations. Tamil and Muslim political parties have closely examined the results of the 2019 and 2024 Presidential Elections, both of which were won primarily through strong support from the Sinhala Buddhist electorate in the south. While GR secured victory in 2019, AKD won the 2024 Presidential Election with a similar concentration of support from the Sinhala Buddhist voter base without any political alliances with minority parties.

The outcome has raised concerns among minority political leaders that future Presidential Elections could increasingly be decided without significant dependence on Tamil and Muslim votes. According to their assessment, this could weaken the bargaining power of minority communities in national politics and reduce their ability to influence major policy decisions.

 

Indian connection

 

Be that as it may, the formation of this new Tamil-speaking political platform cannot be viewed purely through the lens of domestic politics. Those who closely follow the country’s ethnic and regional political dynamics have long observed that Tamil and Muslim political parties in the north, east, and plantation regions have maintained a close relationship with India, particularly Tamil Nadu, when shaping major political strategies.

Historically, decisions taken by these parties on issues affecting minority communities have often involved consultations beyond Sri Lanka’s borders. Political developments in Tamil Nadu, as well as India’s broader policy approach towards Sri Lanka’s Tamil question, have frequently influenced the positions adopted by Tamil political actors.

Against this backdrop, the emergence of a united platform representing Tamil-speaking political parties around three key issues has naturally drawn attention to the regional dimension of Sri Lanka’s minority politics.

While India has remained silent on the issue of the holding of PC Elections or the full implementation of the 13th Amendment to the Constitution, maintaining that both issues were up for Sri Lanka to decide, leaders representing Tamil political parties in the country have constantly engaged with the Indian Government and its officials in Colombo to pressure the Government on several long-standing issues, especially on the PC Elections and the 13th Amendment.

It is, however, learnt that one of the key messages given to these political leaders is regarding the divisions among the Tamil parties in the country that had reduced their bargaining powers.

Given the historical political connections between Tamil parties in Sri Lanka and stakeholders in Tamil Nadu and India, there is an opening to believe it is unlikely that the formation of such a platform would have taken place without wider awareness of developments in those circles.

The emergence of this collective political front also has the potential to create a new pressure point for the Government as well as other Opposition parties.

According to political analysts, the Government may increasingly face demands from Tamil-speaking political representatives in the north, east, and plantation regions to hold PC Elections within the coming year.

The parties involved have already decided that their first major political engagement will be to seek a meeting with President AKD to discuss the three core issues that form the basis of their cooperation: constitutional reform, PC Elections, and land issues.

 

Surprise for RW

 

Meanwhile, United National Party (UNP) Leader, former President Wickremesinghe, it is learnt, had been somewhat surprised by a recent revelation about a member of his team during his presidency. The news was that one of his (Wickremesinghe’s) directors general during his tenure in the office of the President is now engaged in managing the political campaign of an Opposition politician vying to become a common candidate of the Opposition at the next Presidential Election.

‘The Black Box’ last week reported that former Minister Patali Champika Ranawaka seems to have soft-launched his campaign for the Presidential Election with his former Media Secretary Dhanushka Ramanayake, who joined Wickremesinghe’s team and assumed the role of Director General of the President’s Media Division (PMD) at the time, returning to head Ranawaka’s media campaign by organising an event for media personnel recently.

This news, it is learnt, had surprised several senior UNPers including Wickremesinghe since, as pointed out by a senior UNPer, Ramanayake continues to work closely with the former President and engage in his media work.

 

Archchuna’s possible exit

 

Meanwhile, Jaffna District MP Ramanathan Archchuna used his time in Parliament this past week not to legislate, but to warn colleagues he may not be around much longer by telling the House he expects to leave within two to three weeks.

“I won’t be in this Parliament much longer,” he said. “I won’t trouble you for long.”

Behind the dramatic exit line lies a sharper political grievance. Archchuna alleged he had faced intimidation after raising concerns at a District Coordinating Committee meeting and said that complaints and evidence on alleged corruption in the north – submitted to the Commission to Investigate Allegations of Bribery or Corruption (CIABOC), President AKD, and Health Minister Nalinda Jayatissa – had gone nowhere.

He also pointed to the unresolved fire at the Jaffna Teaching Hospital’s medicine store, claiming he had faced threats and legal action for pursuing the matter.

The MP framed legal proceedings seeking his removal from Parliament as part of a wider pattern, arguing they had fed a perception among Tamil communities that independent northern representatives were being singled out.

 

Udaya takes on Speaker

 

On the matter of parliamentary proceedings, former Minister Udaya Gammanpila has gone on the offensive against Speaker of Parliament Jagath Wickramaratne, claiming a Parliament-commissioned internal investigation had reportedly confirmed 10 corruption and misuse-of-office allegations against him – a report Gammanpila has claimed he had obtained only after Parliament had blocked his Right to Information (RTI) request.

The allegations, laid out at a press briefing, span from the mundane to the eyebrow-raising – an unauthorised second official residence on Lauries Road, a privately hired eight-person staff costing Rs. 760,000 a month despite the Speaker not living at his official residence, and two elderly appointees (aged 73 and 68) given physically demanding jobs as apparent political favours dating back to 1971.

More serious allegations claimed by Gammanpila were: a unilateral, Cabinet-bypassing decision to convert an official residence into a research centre; an official residence meant for a ministry secretary handed instead to the Speaker’s Personal Secretary; and Government linen allegedly shuttled between residences for personal use. Gammanpila had also alleged procurement of expensive camera equipment for a media unit that does not formally exist and the drawing of duplicate fuel allowances as both Speaker and an MP from the Polonnaruwa District.

Gammanpila had said the evidence was sufficient to justify arrest under the Public Property Act, and that the report would be formally handed to the CIABOC within the week.

 

Namal in robes

 

Meanwhile, SLPP’s Namal Rajapaksa was last Thursday (23) seen in the Court of Appeal wearing his legal robe, which is not a common sight where Namal is concerned.

Namal, it is learnt, had attended sessions of the Court of Appeal on Thursday for the case being heard on the petition filed by his uncle, former President GR.

GR had filed a writ petition to prevent his arrest and detention under the PTA in connection with investigations into the Easter Sunday terrorist attacks.

The petition was taken up on Thursday, with President’s Counsel Romesh de Silva appearing on behalf of GR and presenting reply submissions.

Following the submissions, the bench had directed that the matter be deferred to 3 August for further arguments.

 

Yoshitha’s indictment amended

 

While Namal attended court sessions last week in support of his uncle, the Attorney General’s Department has moved to proceed with the high-profile money laundering case against former Lieutenant of the Sri Lanka Navy Yoshitha Kanishka Rajapaksa, the second son of former President Mahinda Rajapaksa (MR), after amending the indictment before the Colombo High Court.

The case, which also names 98-year-old Daisy Forrest, Yoshitha’s grandmother, was taken up before High Court Judge Rashmi Singappuli recently. It concerns allegations relating to assets and financial transactions valued at Rs. 59.68 million, which the prosecution alleges could not be lawfully accounted for.

The latest development follows a legal challenge over the conspiracy charge contained in the indictment. After Forrest was discharged from a separate case on medical grounds, the prosecution sought to continue proceedings against Yoshitha alone. The defence challenged that move before the Court of Appeal, arguing that a conspiracy charge could not be sustained against a single accused.

However, State Counsel Oswald Perera had informed the High Court that the Court of Appeal had rejected the defence’s objections, clearing the way for the prosecution to continue with the amended indictment.

The case has been filed under the Penal Code and the Prevention of Money Laundering Act, with prosecutors alleging that between March 2009 and December 2013, funds suspected to have been generated through unlawful means were invested in bank accounts, fixed deposits, listed companies, and real estate in Colombo and Tangalle.

The Attorney General’s Department had received the investigation file in 2018, with indictments being filed in April this year following an extended review of the evidence.

The prosecution has listed 103 witnesses, including several senior State officials and military officers. Among them are former Navy Commander Vice Admiral Travis Sinniah, former Director General of the Securities and Exchange Commission Vajira Wijegunawardena, and former Commissioner General of the Inland Revenue Department W.A.S. Chandrasekara.

Court records have shown that the prosecution also intends to rely on 25 documentary exhibits, including bank records, asset declarations submitted by Yoshitha during his naval service, details of stock market investments, and documents relating to the purchase of residential and plantation properties.

During earlier proceedings, prosecutors have argued that although Yoshitha earned a monthly salary of approximately Rs. 73,000 while serving in the Sri Lanka Navy, those earnings were allegedly not reflected in the bank account under scrutiny. The prosecution had also pointed to Forrest’s reported monthly income of around Rs. 300 during her employment as a boarding house matron, contending that the defendants’ declared sources of income were inconsistent with the assets under investigation.

After hearing submissions, the Colombo High Court had ordered that the matter proceed to a pre-trial conference, marking the next stage in one of the most closely watched financial crime cases involving a member of the Rajapaksa family.

The prosecution was led by State Counsel Oswald Perera, while President’s Counsel Sampath Mendis appeared for Yoshitha and President’s Counsel Anil Silva represented Forrest.

 

Aussie-bound for Airbus probe

 

Meanwhile, the long-running investigation into the alleged Airbus bribery scandal is set to enter a new phase, with a joint team from the CIABOC and the Criminal Investigation Department (CID) preparing to travel to Australia in a bid to trace key suspects, witnesses, and financial evidence.

According to reports, the overseas mission will focus on recording statements and gathering evidence from individuals believed to have handled or received funds linked to the alleged $ 2 million bribe paid during SriLankan Airlines’ controversial aircraft procurement in 2013.

Investigators are expected to examine bank accounts in Australia that are suspected to have been used to transfer the money. The CIABOC had previously informed the court that one of the account holders, W.D. Nimal Perera, was residing in Australia at present.

The investigation centres on allegations that a shell company was established in Brunei to facilitate the payment of € 1,454,645.54 (approximately $ 2 million) by the European Aeronautic Defence and Space (EADS) company, now Airbus, in connection with SriLankan Airlines’ purchase of 10 aircraft.

Among those named as principal suspects are Priyanka Nayomali Wijenayake, the wife of late former Chief Executive Officer of SriLankan Airlines Kapila Chandrasena, and Shamindra Rajapaksa, son of former Minister Chamal Rajapaksa. Both are reported to be overseas, with arrest warrants issued by the Colombo and Fort Magistrates’ Courts.

The legal proceedings are being pursued on two fronts. The CIABOC has instituted proceedings before the Colombo Chief Magistrate’s Court, while the CID is conducting a parallel case before the Fort Magistrate’s Court.

 

Basil’s warrant extended

 

Matara Chief Magistrate Chathura Disanayake, meanwhile, extended the arrest warrant against former Minister Basil Rajapaksa on Tuesday (21), after he had failed to appear before court for a second consecutive time in a case linked to a disputed land purchase.

The case centres on the acquisition of a one-and-a-half acre coconut property in the Browns Hill area along Eliyakanda Road, Matara, valued at Rs. 60 million. With Basil absent from proceedings once again, the Chief Magistrate had ordered the warrant for his arrest to remain in force.

The court had also turned its attention to the four individuals who had stood as guarantors for the former Minister, issuing a stern warning directing them to ensure his appearance before court going forward. Should they fail to produce him, the Magistrate had ordered that they would be required to show cause as to why the bail money they had posted should not be forfeited.

The case now hinges on whether Basil appears at the next scheduled hearing, or whether the standoff between the court and his guarantors escalates further.

 


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