- IMF notes under-reporting of arrears, affected first three reviews; IMF says inaccuracies ‘inadvertent’
- Sajith critical of IMF EFF, says approval only after burdening masses; Lalkantha says will follow through
- Govt. awaiting new US trade tariff, Opposition notes contradictions; Vietnam gets 46% down to 20%
- RW warns of economic pressure due to global issues, political changes; Mahinda praises RW and AKD
- Starlink in SL, RW takes credit, hopes for future meet with Elon; RW’s post reposted by Elon, millions view
- Mujibur makes damning revelation in House, reads findings of AKD’s committee on controversial containers
- Bimal says Customs under Finance Ministry, not Ports; President to act on committee report and officials
- Nalinda says thousands of containers released in similar manner during former governments; awaiting action
- Questions over confidential report reaching Mujibur; House speech after Mujibur’s talk with Sajith
- AKD, Harini, Sajith expected to meet tomorrow at Cardinal’s event at Archbishop’s House in Colombo
- JVP/NPP gains power in majority of Local Government bodies with 219, followed by SJB’s 28 and ITAK’s 20
- Jagath takes hold of SJB councillors in Matugama until council is formed; Kalutara SJBers criticise Jagath
- ‘Abduction’ of two JVP/NPP councillors in Weligama takes new twist; eyewitness account, CCTV footage
- Appeals Court to hear petition against Commissioner Sarangika; EC says commissioners have the power
- Sajith vows legal actions against commissioners who acted arbitrarily; SJB to expel errant councillors
- Japan grants $ 2.5 m for Govt.’s anti-corruption drive; project to strengthen anti-corruption mechanisms
- Anti-corruption key for Japanese investments, says envoy; Govt. asks Japan to restart yen loan projects
- CIABOC DG Ranga advises public officials on anti-corruption action, says to make notes in log books
- Wimal summoned by CIABOC over selling of shops, says will continue writing, painting if behind bars
- Rajitha fails to appear before CIABOC due to ill health; Sujeewa in trouble over failing to give statement
- Yoshitha and Daisy served indictment in money laundering case; Nishantha further remanded till 15th
- Harsha apologises to SC, verdict on 24 July; Champika accuses AKD, Govt. of protecting others involved
- Namal warns of future probes on corruption; MR’s security likely to lose lodging facilities in Colombo
- MR’s alleged plea to Mahanayake Theras causes a stir, denials from Namal, Malwatte; complaint to CID
The approval of the delayed fourth review of Sri Lanka by the International Monetary Fund (IMF) Executive Board last week granted some reprieve to President Anura Kumara Dissanayake (AKD) and his Janatha Vimukthi Peramuna (JVP)-led National People’s Power (NPP) Government as Sri Lanka awaits the US Government’s revised trade tariffs, to be communicated shortly. The latter will play a decisive role in Sri Lanka’s economic recovery journey.
With the IMF’s programme with Sri Lanka nearing its final stages on the ongoing Extended Fund Facility (EFF) with the disbursement of around $ 1.67 billion to the country so far, the fund is focused on firmly monitoring whether Sri Lanka is following the path set by it to build economic resilience in order to prepare the economy to meet its upcoming debt obligations. This is a fact that the IMF continues to reiterate to the Sri Lankan authorities during engagements with Sri Lanka, while AKD and the Government seem to be struggling to implement some of the difficult policy reforms.
As stated last week by IMF Mission Chief for Sri Lanka Evan Papageorgiou, the upcoming 2026 Budget discussion will be a critical pillar of the fund-supported EFF while the country continues efforts to stabilise its public finances and sustain reform momentum. “This (Budget 2026) is a very important part of the programme. We will ensure that revenue, expenditure, and all the targets are met in accordance with the programme as well as the Government’s own objectives,” he had told journalists last Thursday (3).
Papageorgiou had noted that apart from the Budget, significant work remained on governance reforms, monetary policy, and reserves management. “These elements are well defined now and we will continue discussions on these fronts,” he had added.
He had further noted that reforms in State-Owned Enterprises (SOEs) was another top priority for Sri Lanka.
The IMF Mission Chief’s comments are a clear indication that Sri Lanka still has a lot of work pending to ensure economic stability and growth.
The IMF had also raised concerns over the under-reporting of arrears that had affected the first three reviews conducted by the fund on Sri Lanka.
IMF Deputy Managing Director and Acting Chair Kenji Okamura has stated that under-reporting of arrears, which affected the first three reviews, also led to noncompliant purchases and a breach of obligations under Article VIII, Section 5 of the IMF’s Articles of Agreement.
The IMF had pointed out that the discrepancies stemmed from delayed reporting by line ministries and a misinterpretation of the definition of arrears under the programme’s technical memorandum.
The IMF nevertheless has excused Sri Lanka on the matter. “The inaccuracies in information provided to the IMF were inadvertent and arose because of weaknesses in the timely reporting of arrears by line ministries to the Ministry of Finance, as well as a misunderstanding by the authorities of the definition of ‘arrears’ under the Technical Memorandum of Understanding,” Okamura had said.
Meanwhile, the Government’s commitment to proceed with the IMF programme has been asserted by Minister K.D. Lalkantha last week. He has noted that the Government will comply with the IMF programme regardless of public protests.
He had told the media after the Kandy District Coordinating Committee meeting that the Government had already implemented the programmes proposed by the IMF and would continue to do so.
“We are with the IMF programme. The Government is not prepared to sabotage it. The Government is achieving the targets as agreed with the IMF. It has been a complete success. The rest of the proposals will also be fulfilled. We have to start debt servicing after 2028,” Lalkantha had said, indicating the awareness on the part of the Government of what lay ahead for Sri Lanka.
“The Government will not change its decisions under pressure from the Leader of the Opposition, public agitations, or strikes. If required, the Government will increase or reduce prices in keeping with the relevant formula. We will not succumb to pressure from the Opposition Leader, public protests, or strikes, nor hesitate to take vital decisions and allow the forward march of the country to stall,” Lalkantha had added.
Lalkantha’s words were in response to recent statements by some sections of the Opposition led by Opposition Leader Sajith Premadasa, where it was stated that the IMF had approved the fourth review on Sri Lanka because the Sri Lankan Government had followed the IMF conditions and burdened the public with increasing prices.
Premadasa, along with members of the Opposition, continues to demand relief for the masses amidst the country’s economic recovery programme, noting that real recovery cannot happen by incapacitating the people.
Launching ‘Prajashakthi’
Meanwhile, President AKD and the JVP/NPP Government last Friday (4) launched one of the key projects that was outlined by the party’s manifesto in the run-up to last year’s election. The ‘Prajashakthi’ national programme was launched as a key initiative of the Government, aiming to empower communities and ensure the fair distribution of economic benefits across society.
“The objective of the ‘Prajashakthi’ programme is to bring together the State mechanism, State officials, and citizens into an integrated framework. Without this, nothing can be accomplished. Our aim is not merely to maintain the existing State; if that were the case, the current situation would suffice. To rebuild a fallen state, the political authority, the state mechanism, and the citizens must be brought together into an integrated operation,” President AKD explained.
He stated at the launch that no matter the extent of economic growth reflected in statistics, if the advantages of this growth did not extend to rural communities, then such growth held no significance.
The President further stated that while it was important to achieve national economic growth, it was equally essential to expand the economy in a way that it created opportunities for rural communities and made them active participants in the economic process, adding that this was a responsibility of the Government.
AKD also acknowledged that around Rs. 230 billion had been allocated for the ‘Aswesuma’ programme alone, with additional spending on other aid efforts, but noted that much of this funding had failed to reach intended beneficiaries, with over half consumed by delivery systems and allowances for officials, as well as excessive training costs.
Waiting for Trump
Meanwhile, Sri Lanka is awaiting the official communication from the US outlining the revised trade tariff applicable to the country when the proposed trade tariffs by US President Donald Trump come into effect this coming week. President Trump has said that the US has started sending out letters to many countries outlining the revised trade tariffs.
While Sri Lanka is exploring new and emerging markets for Sri Lankan exports given the US trade tariff saga, there is no doubt that an increase in trade tariffs to the US will have an adverse impact on the country’s export industry and thereby affect a large component of the nation’s revenue.
However, Trump’s statement on announcing the revised trade tariffs on many countries, including Sri Lanka, has resulted in many – especially Opposition politicians – questioning what had become of the statement made by President AKD during the Local Government Elections campaign that Sri Lanka had managed to reach a deal with the US on the proposed trade tariffs and the joint statement that was to be issued on the matter. Samagi Jana Balawegaya (SJB), Member of Parliament (MP) Harsha de Silva was among the Opposition members to question what had become of the ‘joint statement with the US’ that was to be released on the trade tariffs.
Apart from President AKD’s statement about Sri Lanka’s negotiations with the US about the trade tariffs, another key Government minister seems to have also made another misleading statement about the negotiations with the US on the proposed trade tariffs. Deputy Minister of Economic Development Anil Jayantha Fernando had stated in Parliament last week that Sri Lanka was the only Asian nation engaged in bilateral talks with the US over the trade tariffs.
Speaking during a parliamentary debate on the Government’s fiscal strategy, the Deputy Minister had said that the Government hoped to secure a more favourable agreement with the US regarding a 44% tariff imposed earlier this year.
However, a few days later, President Trump announced that the US had reached a trade deal with Vietnam, indicating a successful conclusion of negotiations between the two countries. Vietnam was among the first few countries to reach out to the US for negotiations on the trade tariffs and has managed to reduce its tariffs from the initially proposed 46% to around 20% through the deal.
The Sri Lankan side also sent two delegations for discussions with officials of the Office of the United States Trade Representative and is now awaiting the outcome of its push with the US on the tariffs.
RW’s prediction
Former President Ranil Wickremesinghe meanwhile has warned that Sri Lanka could face severe economic pressure in the near future due to global instability and that such shocks may even lead to a shift in political power within the country. Wickremesinghe’s statement has been seen as a prediction by some of his loyalists.
Wickremesinghe had made this observation during a private event held at his Flower Road office in Colombo, where civil society activist Gayantha Dehiwatte had presented him with a copy of his latest book, ‘The Alternative Way: The Way Out of the Imperialist Debt Trap.’
Addressing the gathering, the former President had said that the world was entering a period of intensified geopolitical power struggles and had warned that Sri Lanka’s weak economy was highly exposed to external volatility.
It is in such a backdrop that Fitch Ratings has predicted that the global economy is facing a sharp slowdown induced by the most severe trade war since the 1930s.
“The recent de-escalation in US-China trade tensions has led Fitch Ratings to make broad-based upward revisions to its global growth forecasts compared to the previous Global Economic Outlook (GEO) published in mid-April,” Fitch had stated.
“But the world economy still faces a sharp slowdown induced by the most severe trade war since the 1930s,” Fitch had stated in its June 2025 GEO.
Praising RW and AKD
Meanwhile, former Treasury Secretary Mahinda Siriwardana had recently spoken of two of the three Presidents he had served under. While crediting former President Wickremesinghe for making tough decisions to stabilise the country’s economy, he had praised President AKD for continuing those policies with consistency.
Siriwardana had made these observations during a television interview last week. He had noted that he had learnt extensively under Wickremesinghe’s leadership during his tenure at the Treasury. “I worked the longest with Ranil Wickremesinghe. He managed the economy during its most difficult period. I learnt how to make decisions during crises and how to see through their implementation,” Siriwardana had noted, adding that while some of the decisions had been politically challenging, they had been taken for the betterment of the country.
“Especially during international transactions and debt restructuring, Wickremesinghe provided exceptional leadership. I still remember how he guided me through key negotiations with other nations,” the former Treasury Secretary had noted.
Siriwardana had further pointed out that without Wickremesinghe’s intervention, Sri Lanka’s economic crisis could have deepened further.
The former Treasury Secretary had further commended President AKD for maintaining economic continuity. “President Anura is handling the economy intelligently,” Siriwardana had observed, adding that AKD’s decision to continue with the economic policy had become a turning point for the country.
Taking credit
Meanwhile, Wickremesinghe was last week seen taking credit over the provision of Starlink satellite access for Sri Lanka by thanking Elon Musk for enabling satellite internet access for all Sri Lankans.
In a post on X, the former President had said: “This marks a significant step forward in the digital transformation of our nation.”
Wickremesinghe has further stated that he was looking forward to meeting Musk soon to explore further advancements for Sri Lanka’s digital future.
It was during Wickremesinghe’s presidency that a meeting was held with SpaceX Chief Executive Officer Musk in 2024 where the launching of the Starlink satellite internet service in Sri Lanka was discussed.
Musk last week announced that Starlink, the satellite internet service owned by him, was now available in Sri Lanka. “Starlink now available in Sri Lanka!” Musk stated in a post on X.
Interestingly, Wickremesinghe’s X post on Starlink and Musk was reposted by the latter, resulting in the post being read by over 1.5 million viewers.
Container chaos
Meanwhile, the special parliamentary session last Monday (30 June), which was convened for the Government to present its report under the Public Financial Management Act and the Government’s economic strategy, was dominated by a revelation made by SJB MP Mujibur Rahman.
Rahman revealed in Parliament the findings in the report of the committee that had been appointed by the President to probe the 323 controversial containers that had allegedly been released by Sri Lanka Customs without proper inspections. The SJB MP tabled a copy of the report that was handed over to President AKD in Parliament.
Rahman alleged that several irregularities had been identified in the report, including the move to clear certain containers without proper checks in order to ease the container congestion at the time and that it represented a clear departure from established Customs policy.
“The actual number of containers released on 18 January 2025 was 309 according to this report, although it was said that 323 containers were released,” Rahman said in the House.
The MP claimed that the report also included a statement from Customs Additional Director General Seevali Arukgoda, who was assigned to monitor a three-member committee appointed to look into the incident. Rahman said that only one committee member was present during the inspection, with Arukgoda acting in both roles – as a committee member and as the monitoring officer.
“The Director General of Customs has appointed this committee to release red containers following their inspections,” he said, adding that the Customs risk management policy required red label containers to be scanned and physically inspected, yellow label containers to be scanned and sample tested, and green label containers to undergo only document checks.
“This committee had only been authorised to release red label containers, not yellow ones,” the MP said. “But what has happened? The committee has released 158 yellow containers which had to be scanned, with samples obtained. Meanwhile, 37 red label containers out of 151 containers have been released without scanning. This is where the doubt springs. Can you say that this doubt is unjustified?” Rahman questioned.
Bimal’s explanation
Rahman’s revelations in Parliament resulted in much discussion in political and public domains about the controversial container release.
Despite attempts by several Government ministers to downplay the committee findings revealed by Rahman saying that the Opposition has so far made various claims about the containers, ranging from allegations that the containers belonged to the Western Province Governor to the released containers carrying illegal weapons, there were questions being posed seeking the Government’s official response on the latest revelations made by a committee appointed by the President.
Leader of the House, Minister Bimal Rathnayake was quoted as saying that although he was the Minister in charge of Ports, Sri Lanka Customs was under the purview of the Finance Ministry. However, he said that disciplinary and legal action would be taken against officials found to be linked to the controversial release of the 300-odd containers by Sri Lanka Customs earlier this year.
Rathnayake had told reporters: “Legal action will be taken against officials found to have committed serious offences.”
He had also said that the committee appointed by the President to look into the matter had found that some mistakes related to inspection had occurred on the side of the Customs officials and had assured that the President would take the necessary decisions based on the findings of the committee report.
“Some key factors were found through this committee. One is a shortcoming or mistake on the Sri Lanka Customs side. Based on the findings of the committee report, the subject Minister and Ministry Secretary will take the necessary actions,” Rathnayake had said, adding that a decimated Opposition was trying to find topics to maintain relevance.
Nalinda’s response
Meanwhile, Cabinet Spokesperson, Minister Nalinda Jayatissa, when questioned by the media about the committee findings on the containers released without inspection, has said that given that the committee had been appointed by the President, action against any wrongdoing would be initiated by the President as well.
Jayatissa had also gone on to say that it had now been revealed that around 1,000 containers had been released in a similar manner during previous governments as well. However, it is yet to be seen how or whether the President and the Government will act on the findings of the committee.
Finding the source
However, apart from the damning revelations in the report tabled by Rahman, the next question many members of the Government and MPs had was how the SJB MP had gained access to the report that the Government had kept silent about for weeks.
When a president appoints a committee to probe a matter, the final report is handed over to the president directly or to the President’s Office. Other Government institutions do not gain access to the report unless it is released by the President’s Office on a presidential directive. Therefore, it is believed that the report on the controversial containers had been given to Rahman by an individual at the President’s Office or holding a high office in Government.
However, it is learnt that Rahman had received a copy of the report the previous Saturday (28 June) and, seeing the revelation in the report, the SJB MP had immediately informed Opposition Leader Premadasa about the matter. Rahman had said that he wished to reveal the committee’s findings in Parliament. Premadasa had cautioned Rahman first to ensure that the copy of the committee report in hand was in fact a true one and not a false document.
Rahman, it is learnt, had explained to Premadasa in detail how the report had come to his hand. After following the process with Rahman, Premadasa had determined that the report was the real one and had proposed that a legal opinion should also be sought prior to revealing the contents in Parliament last Monday.
AKD, Harini, Sajith at event
Meanwhile, it is learnt that President AKD, Prime Minister Harini Amarasuriya, and Opposition Leader Premadasa are expected to attend an event in Colombo tomorrow (7), for which invitations have already been sent.
Other key Government ministers, officials, and political figures in the country have also been invited to the event that is said to be one organised to mark the 50th anniversary of Cardinal Malcolm Ranjith entering the order. This event is to be held at the Archbishop’s House in Colombo.
Forming LGs
On the formation of Local Government bodies, by mid last week, the JVP/NPP had established control in over 219 Local Government institutions including in 63 councils where no single party had secured a clear majority.
Meanwhile, the SJB and allied Opposition parties have managed to gain power in 87 local councils. Among the 30 local council administrations formed by the SJB, 28 Local Government bodies do not have an outright majority but were formed through coalitions.
However, the Ilankai Tamil Arasu Katchi (ITAK) has secured authority in 20 Local Government bodies, marking the third-highest number of local bodies under the control of a single party.
Independent groups or other political parties have managed to gain control in 19 Local Government bodies.
Jagath’s game in Matugama
However, the formation of the Matugama Local Government body’s administration made it to the news last week, following the role played by SJB MP Jagath Withana to gain control of the Matugama Pradeshiya Sabha.
It was reported that around eight elected councillors were apparently housed in Withana’s ancestral home in the Neboda area on the Horana-Matugama Road from a day prior to the inaugural meeting of the Local Government body. It was stated that the councillors were not given access to their mobile phones and were not given access outside until the inaugural meeting of the council had concluded.
The move to isolate a group of SJB councillors of the Matugama Local Government body is believed to have taken place after Withana had found out that some SJBers were planning on voting in favour of the JVP/NPP candidate during the vote for the council chair.
On the day of the inaugural meeting, Withana and the SJB councillors had reportedly walked across the town in a show of strength to attend the session.
However, it is learnt that many SJB Local Government councillors in the Kalutara District have expressed their displeasure over certain actions and statements made by MP Withana, and they have claimed that these issues have been communicated to the party seniors. These disgruntled SJB councillors have noted that it was Withana’s actions that had resulted in the SJB losing control of the Palindanuwara Local Government body, where the SJB had held a majority.
SJB takes action
The SJB meanwhile has commenced the process to expel its Local Government members who have acted in contravention of the party line when electing heads of local bodies where no party had gained a majority.
SJB National Organiser Tissa Attanayake has said the party has commenced the process by calling for explanations from the errant councillors. Attanayake has claimed that all councillors who had worked against the party would be expelled in the coming days.
Petition against Sarangika
Meanwhile, a writ petition was last week filed before the Court of Appeal seeking an interim order to prevent the respondents, including Western Province Local Government Commissioner Sarangika Jayasundara, from conducting a secret vote for the election of the chairman and deputy chairman of the Seethawaka Pradeshiya Sabha.
The petition was filed by Pradeshiya Sabha members representing Opposition parties, who had claimed to hold the majority in the council. They have challenged Commissioner Jayasundara’s decision to conduct secret ballots during the inaugural meeting held on 17 June.
The petitioners have stated that, in protest against this decision, 24 members had walked out of the council chamber, resulting in the absence of a quorum.
However, Commissioner General of Elections Saman Sri Ratnayake says that the authority of Local Government commissioners in appointing chairpersons and deputy chairpersons to local bodies cannot be challenged under the existing legal framework. “As per the Elections Act, it is the Local Government commissioner who is legally vested with the power to appoint mayors, deputy mayors, chairpersons, and deputy chairpersons of Local Government institutions. This authority cannot be challenged,” Ratnayake has said.
Nevertheless, the Court of Appeal is set to take up the petition for hearing this week.
Sajith vows action
Opposition and SJB Leader Premadasa has also vowed that legal action will be initiated against commissioners who had failed to follow the guidelines on forming administrations of Local Government bodies. He has noted that the SJB has already discussed the matter.
Premadasa has stated that the commissioners who had worked according to the whims and fancies of the ruling party would have to face legal action. He has further noted that even the public was now aware of the commissioners who had acted with bias and those who had carried out their duties without any biases.
Weligama drama unfolds
Meanwhile, the incident where two Weligama Pradeshiya Sabha councillors from the JVP/NPP, Ajith Priyantha and Kamani Alwis, who were allegedly ‘abducted’ when they were on their way to attend the inaugural meeting of the Pradeshiya Sabha to elect the chair and deputy chair, has taken a new twist, with a group of SJBers holding a press conference last Friday (4) claiming that the whole ‘abduction’ was a drama allegedly staged by the ruling party.
The SJBers claimed that the JVP/NPP wanted the election of the chair and the rest of the council administration to be postponed, and the tense situation that erupted due to the news of the ‘abduction’ of two JVP/NPP councillors had prevented the holding of the inaugural meeting of the Weligama Pradeshiya Sabha. The ruling party had accused the SJB over its ‘missing’ councillors. The two ‘missing’ councillors later appeared that evening and had reported to the Police.
However, the SJB councillors of the Weligama Pradeshiya Sabha released CCTV footage to the media last Friday that showed the two councillors who had allegedly gone ‘missing’ travelling in a jeep. Releasing details about the vehicle to the media and the route taken by the jeep, former Chairman of the Weligama Pradeshiya Sabha Pushpakumara Battage had claimed they could help the Government analyse the CCTV footage by sending it to the Moratuwa University for analysis.
An eyewitness had also addressed the press conference and said that a black jeep had parked outside her residence when the two ‘missing’ councillors had arrived in a red three-wheeler, which had been driven by Councillor Alwis’ husband. The eyewitness had further stated that there had been no force involved when the two councillors had got into the black jeep.
Support for anti-corruption move
Meanwhile, the Government’s ongoing anti-corruption drive has received a boost from the Japanese Government recently through a grant of $ 2.5 million to strengthen anti-corruption mechanisms under a three-year project, ‘Promoting Prosecution of Corrupt Practices through the Establishment of Anti-corruption Mechanism.’
The project, funded by Japan and implemented by the United Nations Development Programme (UNDP) in Sri Lanka, is reportedly aimed at promoting transparency, accountability, and integrity in governance and business practices through effective and institutionalised preventive mechanisms in the public and investment promotion sectors, strengthening institutions to enhance corruption-related investigative processes, improving coordination with stakeholders and ensuring quality of prosecutions, empowering citizens to effectively mobilise against corruption, and enhancing social accountability.
It is interesting that Ambassador of Japan to Sri Lanka Akio Isomata had on a previous occasion commented on corruption in Sri Lanka and its adverse impact on development programmes.
A news release by the Japanese Embassy has quoted Isomata noting that the eradication of corruption and good governance was a prerequisite for restoring the confidence of both public and private entities, including those of Japan, in making investments in Sri Lanka.
Seeking Japanese funding
The Finance Ministry meanwhile has announced that Sri Lanka has urged Japan to back its existing yen loan projects to attract further investment and secure gap financing.
The Japan-Sri Lanka Economic Cooperation Policy Dialogue was held on Friday (4) in Colombo and the Japanese delegation was led by Japan’s Ministry of Foreign Affairs International Cooperation Bureau Assistant Minister/Director General Ishizuki Hideo, while newly-appointed Treasury Secretary Harshana Suriyapperuma had led the Sri Lankan side.
The Japanese have reportedly outlined at the meeting three key pillars through which Japan intends to support Sri Lanka’s economic recovery and long-term stabilisation, which include fiscal and structural reforms and enhancement of the economic foundation for sustainable economic growth, thereby enhancing social resilience and ensuring peace and stability.
Advice to public officials
Meanwhile, Commission to Investigate Allegations of Bribery or Corruption (CIABOC) Director General Ranga Dissanayake has pointed out the need to build a State sector that is not politicised. The Director General also stated that public officials did not have to be apprehensive if they had not been party to corruption.
Dissanayake has noted during a public event on Friday (4) that action against corruption always extended to many people and that legal action alone could not eradicate corruption.
“There are people who have committed corruption among those who call for corrupt people to be apprehended. Although many speak of the need to act against corruption, they find it difficult when action is being initiated against them,” he said, noting that there needed to be an attitudinal change for corruption to be eradicated.
Referring to some claims that public sector officials feared carrying out their duties due to ongoing action against corruption, Dissanayake has claimed that action will not be taken against any public official who has worked with commitment and conviction.
“We also need to look at establishing a State sector that does not carry out the dictates of politicians. If someone says ‘I did it because the minister wanted me to,’ they will not be held responsible for it. I know some public sector workers who have made notes in log books because they believed what they have been asked to do was wrong. We have not arrested such individuals,” Dissanayake has explained.
Dissanayake also advised public sector officials to start making notes in log books if they are forced by their respective ministers to carry out irregular work in any form, since most of these orders are given verbally and not in writing. “Some people now deny making any requests from secretaries, so make an entry in a log book to ensure that you have done the right thing.”
According to the CIABOC Director General, in many instances some have cited Cabinet decisions saying all actions were in line with such decisions, but action will be initiated if Cabinet decisions are made with corrupt intentions. “There are Cabinet papers related to medicine and fertiliser issues,” he added.
Meanwhile, the CIABOC has stated that the commission has acted against 31 State officials of various levels during the first five months of this year. Eight of these officials are said to be Police personnel.
The CIABOC has vowed that action will be taken against many of the complaints, which have formed a massive backlog at the commission.
Wimal to CIABOC
Meanwhile, former Minister Wimal Weerawansa says he has been summoned by the Bribery Commission to record a statement in connection with an ongoing investigation related to the sale of several shops during his tenure as the Minister of Housing and Construction.
“I was given a date to appear before the Bribery Commission, but I notified them through a letter that I couldn’t attend due to a court case scheduled for the same day,” he explained, adding: “Before my letter reached them, they sent me another letter stating that a new date would be announced.”
The former Minister also remarked that if he were to ever be imprisoned again, as in the past, he intended to make productive use of the time.
Books and paintings
Weerawansa also noted that being behind bars was nothing new to him since he had been remanded for three months during the ‘Yahapalana’ period.
In a lighter vein, he stated that he had written two books and completed three paintings during his previous time behind bars. Showing the paintings on the walls of his office, Weerawansa went on to say: “I started on five paintings, but managed to complete only three. If I had about two months, I could have completed the other two paintings as well.”
Shani’s appointment
Be that as it may, the appointment of SSP Shani Abeysekara as the Director of the Criminal Investigation Department (CID) seems to have irked some Opposition politicians currently under probe by the CID.
During his tenure in the CID, Shani, as he is popularly known, led investigations into several key cases, including emblematic cases. He was suspended in 2019 and transferred by the National Police Commission under the Gotabaya Rajapaksa administration and was jailed afterwards over allegations of falsifying evidence. He was in remand custody for over 10 months.
Upon his return to service, Shani is once again leading the probes on key cases that were stalled during the past few years.
The Sri Lanka Podujana Peramuna (SLPP) was among the first to criticise Shani’s appointment, with Party General Secretary Sagara Kariyawasam claiming that the appointment was not legal.
The Government, however, hit back at criticisms against Shani, with Cabinet Spokesperson, Minister Nalinda Jayatissa stating that those who had committed various wrongdoings were now afraid since an officer known for his commitment to meting out justice was heading key investigations.
Indictment on Yoshitha
Meanwhile, the Colombo High Court on Wednesday (2) served indictments on Yoshitha Rajapaksa, son of former President Mahinda Rajapaksa (MR), and his grandmother Daisy Forrest in connection with a money laundering case.
The case, filed under the Prevention of Money Laundering Act, was taken up before High Court Judge Pradeep Abeyratne.
Following the serving of indictments, both Yoshitha and Forrest were granted bail, each released on two surety bails of Rs. 1 million.
Yoshitha is the second Rajapaksa to be served an indictment with his elder brother, Namal, being indicted over the Krrish case.
Lalkantha’s probe
Meanwhile, Minister K.D. Lalkantha claims that a probe has been initiated by his ministry to gather details and act on ministers and other members of former governments who have constructed houses and hotels on illegally acquired land in tank reserves.
Lalkantha, while stating that there were many former ministers who had built illegally on reserve lands in tanks, noted: “I have seen many such constructions and have even thought, while bathing in tanks, that action should be taken against such individuals. At that time, we did not have the power to do so and used to think that someday we should clear the tank reserves if we gain power. I can give one name: S.M. Chandrasena (former Minister). His brother, the former Chief Minister, has now been jailed for 20 years.”
“I have finally received the opportunity to act on this issue. The irony is that I have also been vested with the Irrigation portfolio and the Irrigation Department under my portfolio to take the necessary action to clear the tank reserves,” he added.
SM remanded
A day after Minister Lalkantha’s statement about action being initiated against several former ministers and members of former governments, in which he named former Minister Chandrasena, the latter was arrested by the CIABOC.
Chandrasena was arrested over a case where he had allegedly caused a loss of around Rs. 25 million to the State by distributing a stock of maize among some of his friends and supporters in the run-up to the 2015 Presidential Election.
After he was presented before the Colombo Chief Magistrate, Chandrasena was remanded till 18 July.
MR’s alleged plea
Meanwhile, a story that created quite a controversy last week was about former President MR allegedly making a plea with certain sections of the Maha Sangha to implore President AKD not to act against his wife, former First Lady Shiranthi Rajapaksa. News and social media posts were seen on various digital platforms recently about the matter.
Shiranthi’s Siriliya Saviya is currently being probed, with even Deputy Minister of Public Security Sunil Watagala recently claiming that investigations into the account were currently underway as there were many irregularities related to it.
Namal responds
However, SLPP MP Namal Rajapaksa responded to the stories circulating on social media about MR’s alleged plea to the Mahanayake Theras, by accusing the Government of fabricating claims involving former President MR in a bid to distract from what he described as a failure to deliver on promises made during its first year in office.
Issuing a statement, Namal had denied recent reports alleging that MR was seeking the intervention of the Mahanayake Theras to prevent the arrest of his family members, especially his wife. Namal had described the claims as “entirely false” and a “disgraceful attempt” to drag respected religious leaders into political controversies.
“These claims are entirely false and clearly expose how the Government is trying to politicise the Police and even the Judiciary to falsely implicate members of my family,” Namal had further claimed.
Malwatte denies
Meanwhile, the Malwathu Maha Viharaya in Kandy also issued a statement by Malwathu Maha Viharaya Deputy Registrar Ven. Mahawela Rathanapala Thera, on a directive of the Chief Prelate of the Malwathu Chapter, denying claims that former President MR had made a request seeking its intervention to prevent Shiranthi from being arrested.
The clarification comes over social media reports stating that former President MR had made such a request from the Malwathu Maha Viharaya.
The Malwathu Maha Viharaya has stated that the news report was misleading as well as baseless and that no such meeting or telephone conversation had taken place, as claimed by the news report.
The statement has also warned that legal action will be initiated against persons or institutions that spread such false information with the aim of causing public unrest.
Complaint to CID
Meanwhile, a group of SLPPers last Tuesday (1) lodged a complaint with the CID over recent social media claims involving MR and the Malwathu Maha Viharaya in Kandy.
The SLPPers told the media that certain posts circulating online alleging that former President MR had appealed to the Malwathu Maha Viharaya to intervene and prevent the possible arrest of the former First Lady were baseless and fabricated.
The group had further accused a presidential media director of having spread false information.
“He has released some information on the matter to the media, which has resulted in it being widely circulated. We have also found that this information has been exchanged on social media by several NPP members in the Government, spreading it further. Journalists and social media accounts supporting the NPP have shared these further,” they have claimed.
Nishantha remanded again
Meanwhile, Shiranthi’s brother, former Chairman of SriLankan Airlines Nishantha Wickramasinghe, who was arrested by the CIABOC recently, was remanded again till 15 July by Chief Magistrate Thanuja Lakmali Jayatunga when the case against him was taken up on Tuesday (1).
Wickramasinghe was arrested over an ongoing investigation into aircraft procurement during his tenure.
MR’s security’s predicament
Meanwhile, MR’s security personnel are also facing uncertainties over their lodging facilities. It is learnt that MR’s security is housed in a State-owned residence behind MR’s official residence on Wijerama Mawatha in Colombo 7. This residence belongs to the National Water Supply and Drainage Board (NWSDB), it is also learnt.
Several officials from the NWSDB have recently visited this residence to look into its condition as well as to inquire about its current occupants.
However, during the inspection tour, the officials had indicated that they might request for the house to be returned to the board, resulting in the security personnel wondering about their future lodging facilities.
A similar situation recently befell former President Wickremesinghe’s security personnel when they were asked to vacate the State-owned residence on Paget Road in Colombo.
Namal’s warning
However, Namal last week warned of future actions against bribery that would be taken under a new government.
Citing one issue that could be probed in the future, the SLPP National Organiser claimed that inquiries could be held against people responsible for wasting fuel to fly a 16-year-old aircraft around Colombo for show. “In the same manner in which there are probes over incidents that had taken place 10-15 years ago, there can be probes into these actions in 10-15 years’ time.”
He further questioned who was collecting commissions over the increases in fuel prices at a time when global fuel prices were on the decline.
Rajitha unwell
Meanwhile, former Fisheries Minister Rajitha Senaratne, who is accused of causing financial losses to the Government by allegedly awarding a sand mining project at the Kirinda Fishery Harbour to a Korean company without following proper procurement procedures, had not appeared before the CIABOC last week due to ill health.
The CIABOC’s Special Investigation Unit had summoned Senaratne to appear before the commission at 9 a.m. on Wednesday (2) to provide a statement regarding the alleged irregularities. However, Senaratne’s lawyer had appeared on his behalf and submitted a letter citing that his client was unable to attend due to a medical condition.
Sujeewa in trouble
Meanwhile, the SJB’s Sujeewa Senasinghe is facing a risk of being listed as a suspect in a case related to a luxury V8 vehicle that has allegedly been assembled illegally due to his failure to provide a statement on the matter on six occasions.
State Counsel Shakthi Jagodaarachchi had told Colombo Fort Magistrate Nilupuli Lankapura that Senasinghe’s residence in Kollupitiya had been locked up when CID officers had visited it to meet him. The counsel had told court that if Senasinghe continued to avoid giving a statement, he could be named as a suspect and taken into custody.
However, Senasinghe’s lawyer, President’s Counsel Nalin Ladduwahetty had told court that his client was receiving medical treatment overseas and requested that the case be called again in two weeks.
The case is to be taken up on 16 July.
No drama, says Judge
Amidst the ongoing crackdown on allegations of irregularities during previous governments, a statement made by High Court Judge R.S.S. Sapuvida caught the attention of many recently. The Judge has stated in court that his court did not expect to call cases merely “for creating drama”.
Sapuvida had made this observation when hearing a case filed against former Governor of the Central Bank Ajith Nivard Cabraal and four other defendants.
The case was based on the allegations that Cabraal had invested Sri Lankan Government funds in Greek bonds in 2012, despite being aware of the Greek Government’s economic crisis. The CIABOC has claimed that the transaction had caused the Sri Lankan Government a loss of over Rs. 1.8 billion.
The pre-trial conference for the case was scheduled for 26 June. However, the prosecution had submitted a motion requesting a postponement, with Senior Counsel Chaminda Athukorala, appearing for Cabraal along with other defence lawyers, arguing that the defendants had filed appeals to the Court of Appeal against the preliminary objections order previously given by the High Court.
The defence had further noted that since these appeals were scheduled to be heard by the Court of Appeal on 19 September, they had requested a later date for the High Court case.
Responding to these requests, Judge Sapuvida had stated that his court consistently respected higher courts and that if an appeal against a prior order had been filed, it would be inappropriate to proceed with the case until a decision from the higher court was received.
The High Court case is to be taken up on 10 October.
Ilukpitiya’s apology
Meanwhile, Immigration and Emigration Controller General Harsha Ilukpitiya, who has been in remand custody for over 10 months, unconditionally apologised to the Supreme Court on Tuesday (1) after being charged with contempt for failing to execute a court order tied to the controversial VFS e-visa deal.
The Supreme Court has scheduled his sentencing for 24 July.
Ilukpitiya had admitted to disregarding the court’s directive, a central issue in ongoing legal proceedings concerning the e-visa contract that has drawn widespread criticism over alleged corruption and irregularities.
The petition was filed by former Ministers Rauff Hakeem and Patali Champika Ranawaka, along with former MP M.A. Sumanthiran, who have collectively condemned the failure to uphold judicial authority. Hakeem had emphasised that State officials must comply with court orders, stating that objections should be pursued only after execution.
Accusing Government
However, Ranawaka has expressed deeper concerns about the e-visa agreement, claiming it had been in effect since 2023 and had caused a financial loss of approximately Rs. 3.71 billion to the State. He argued that contempt of court was only a symptom of a larger fraudulent scheme.
Ranawaka has also questioned why a forensic audit into the visa deal, which Parliament called for on 12 July 2024, was yet to be made public. He has further suggested the delay signals an attempt by the current administration, led by President Dissanayake, to protect those allegedly involved.