For President Anura Kumara Dissanayake (AKD) and the Janatha Vimukthi Peramuna (JVP)-led National People’s Power (NPP) Government, the country’s economic recovery is rapidly becoming more than a story of stabilisation. It is turning into a political test of whether the JVP/NPP can convince voters that the gains made since the 2022 crisis are sustainable, and that the country can eventually stand on its own without depending on another International Monetary Fund (IMF) programme or emergency foreign exchange support.
The Government is increasingly taking its economic message to the political ground, with foreign exchange reserves, migrant remittances, exports, and foreign investment becoming central themes in its islandwide campaign. Deputy Minister of Finance and Planning Anil Jayantha Fernando’s recent assertion that Sri Lanka remains on course to build reserves to $ 9 billion by the end of 2026 provides the administration with a powerful statistic to showcase its economic management.
Remittances have already exceeded $ 5 billion during the first seven months of the year, once again highlighting the crucial role played by Sri Lankan workers overseas in rebuilding the country’s foreign exchange position.
The political challenge for the JVP/NPP, however, is no longer simply to demonstrate that the economy has stabilised. It must now persuade the public that the recovery can be converted into a sustainable economic transformation.
This is where the numbers become politically more complicated.
Sri Lanka faces around $ 3.9 billion in foreign debt repayments in April 2028, while the country remains vulnerable to external shocks and dependent on continued foreign exchange inflows. The Government’s push to attract foreign direct investment, expand exports, and secure higher-paying employment opportunities overseas is therefore becoming part of a larger political argument about how Sri Lanka can build stronger external buffers.
The challenge, however, is not only about accumulating dollars. It is also about whether the recovery is improving the purchasing power and living standards of ordinary Sri Lankans.
Recent reports noted that Sri Lanka has also ranked 120th among 130 countries in a global minimum wage comparison, with its Purchasing Power Parity (PPP)-adjusted monthly minimum wage estimated at $ 200. According to Visual Capitalist, the ranking, based on 2024 International Labour Organization (ILO) data, adjusts wages for differences in living costs and purchasing power rather than simply converting local wages into US Dollars.
Sri Lanka’s position is particularly striking when compared with its regional peers. All four South Asian countries included in the comparison rank higher, with Pakistan at 68th with a PPP-adjusted monthly minimum wage of $ 570, Nepal at 78th with $ 490, Bangladesh at 89th with $ 379, and India at 111th with $ 233.
Only 10 countries rank below Sri Lanka, including Niger, Bhutan, Haiti, Guinea, Sierra Leone, and The Gambia. At the other end of the scale, Switzerland records the highest PPP-adjusted monthly minimum wage at $ 3,804, followed by Germany at $ 2,928, the UK at $ 2,902, and the Netherlands at $ 2,876.
The figures, however, do not represent actual US Dollar wages and do not account for taxes, benefits, or differences in living costs within individual countries. Nevertheless, Sri Lanka’s ranking highlights a significant weakness in the recovery narrative, which is that macroeconomic stabilisation does not automatically translate into stronger household purchasing power.
This distinction could become increasingly important for the Government as it seeks to defend its economic record. Rising reserves and stronger remittances may demonstrate that the immediate foreign exchange crisis has been brought under control, but voters are likely to judge the recovery increasingly through wages, employment, prices, and their ability to maintain living standards.
The Opposition, meanwhile, is unlikely to allow the Government to claim the recovery narrative without a contest. With Opposition parties also conducting islandwide campaigns, economic performance is emerging as an increasingly important battlefield ahead of the next phase of Sri Lanka’s political cycle.
Moody’s latest assessment complicates the Government’s message further. Although the ratings agency has maintained Sri Lanka’s ‘Caa1’ rating with a stable outlook and acknowledged improvements in revenue collection and primary budget management under the IMF programme, it has also highlighted the vulnerabilities that remain beneath the recovery.
Government interest payments continue to consume more than 40% of revenue, while public debt is projected to reach around 95% of Gross Domestic Product (GDP) in 2026. External financing risks remain elevated, with import cover below three months.
More politically significant is Moody’s warning about the period after the IMF programme ends in 2027. External debt service obligations are expected to increase from 2028, which means the Government will have to maintain fiscal discipline and reforms without the IMF serving as a key policy anchor and source of concessional financing.
The ratings agency has also pointed to skilled worker migration, weak private sector investment, and climate-related risks as constraints on Sri Lanka’s longer-term growth potential.
This leaves the JVP/NPP with a difficult political equation. The Government must demonstrate not only that it can manage reserves and meet external obligations, but also that economic growth can translate into better-paid and more productive employment at home.
In other words, the ultimate measure of recovery cannot simply be how many dollars sit in the Central Bank of Sri Lanka’s (CBSL) reserves. It must also be whether Sri Lanka can generate stronger exports, attract sustained investment, create productive employment, and raise real incomes while accumulating sufficient foreign exchange to meet future debt obligations.
For the JVP/NPP, that may ultimately become the defining economic question of its tenure: whether it can build an economy that remains stable after the IMF programme ends and delivers meaningful improvements in living standards, or whether the country will once again need a crisis to force the reforms that politics could not deliver.
Evolving battle over 22A
Meanwhile, the battle over the proposed 22nd Amendment to the Constitution is rapidly moving beyond a dispute over the retirement age of judges and into a wider political contest over the independence of the Judiciary.
The latest development has seen JVP/NPP Member of Parliament (MP) Lakshman Nipuna Arachchi enter the Supreme Court proceedings, seeking the dismissal of a constitutional challenge filed by two office-bearers of the Bar Association of Sri Lanka (BASL).
BASL Treasurer T.M.S. Pasindu Silva and Assistant Secretary Lakitha Isiwara Wakishta Arachchi have argued that the proposed amendment could undermine judicial independence and therefore requires approval at a referendum. Nipuna Arachchi, however, has rejected their arguments as legally untenable and asked the Supreme Court to dismiss the petition.
The Government’s position is that the proposed legislation falls squarely within Parliament’s constitutional powers. The bill has sought to increase the retirement age of Supreme Court and Court of Appeal judges, provide for the retirement date of the Chief Justice, and increase the number of judges in the Court of Appeal. However, the political controversy is hardly about technical constitutional provisions alone.
The BASL has already taken a strong position against the amendment, warning that it raises serious concerns over judicial independence and the rights and interests of the public. The association has also challenged the bill’s constitutionality before the Supreme Court.
Adding to the political sensitivity is the timing, which the BASL has pointed out that, if enacted, the Chief Justice would be the first Supreme Court judge to benefit from the proposed change. There is also a widespread perception that the legislation is being expedited specifically to extend the tenure of the incumbent Chief Justice, whose term is due to end on 1 December 2026. That perception, whether ultimately proved or disproved, has given the constitutional dispute a distinctly political character.
The BASL’s latest statement has attempted to widen the discussion by drawing a line between legitimate scrutiny of the Judiciary and personal attacks against judges. The association has acknowledged that judges and the Judiciary, like any institution exercising public power, must remain subject to lawful scrutiny and accountability.
However, it has also warned that allegations involving judges should be examined through established constitutional and parliamentary procedures and that unverified personal attacks could erode public confidence in the justice system.
That warning is significant at a time when allegations concerning the Judiciary are increasingly finding their way into Parliament, political discourse, and social media.
The Government and its supporters, meanwhile, appear determined to portray the proposed amendment as a legitimate exercise of legislative authority rather than an assault on judicial independence. Nipuna Arachchi’s intervention before the Supreme Court represents the clearest legal expression so far of that position.
He has asked the court to declare that the bill is not inconsistent with Article 3 of the Constitution and does not require approval at a referendum under Article 83. He has also sought the dismissal of the BASL petition and the relief requested by its petitioners.
What makes the dispute politically consequential is that both sides are now appealing to constitutional principles to justify fundamentally different positions.
For the BASL, the central issue is whether changes affecting the tenure and institutional structure of the superior Judiciary could weaken judicial independence. For the Government, the question is whether Parliament’s constitutional authority to legislate is being unnecessarily restricted by an expansive interpretation of judicial independence.
The Supreme Court will ultimately have to settle the legal question, but the political consequences will extend well beyond the courtroom.
Gearing up for referendum battle
Be that as it may, the political battle over the proposed 22nd Amendment is also moving towards its next and potentially decisive stage, with the Supreme Court expected to consider an unprecedented number of petitions challenging the legislation.
A common thread running through most of the petitions is the argument that the amendment cannot be passed by Parliament alone and should also be submitted to a referendum. The BASL and several other parties have gone a step further, calling for the matter to be heard by a full bench of all 13 Supreme Court judges on the grounds that the proposed changes concern the entire superior Judiciary.
That has opened a potentially difficult political question for the Government. If the Supreme Court determines that a referendum is required, can the JVP/NPP Government win it?
The Opposition and several political observers seem convinced that the answer is no. Their argument is that the Government’s popularity has declined sufficiently for a referendum to become a serious political risk, with some even predicting an outright defeat. There has also been speculation that the Government will therefore prefer to avoid a referendum if possible.
If the Supreme Court decides that a referendum is necessary, the Government, nevertheless, has indicated that it is ready to face it, and is confident it can win. That confidence becomes particularly interesting when viewed alongside another political development.
A few weeks ago, ‘The Black Box’ reported that the ruling JVP/NPP was preparing a major islandwide political mobilisation for September and October, with President AKD expected to travel across the country and address people at district level.
The JVP/NPP have also been preparing a house-to-house campaign and this mobilisation appears to have a purpose beyond simply promoting the Government’s political programme.
At a recent meeting held at the JVP Headquarters in Pelawatte, attended by the President and electoral and district organisers, it is learnt that concerns were raised about the weakening of the party’s grassroots connection with the public.
Organisers are said to have pointed to a growing distance between the party and communities that had previously formed a strong support base for the JVP.
The meeting had therefore focused not only on reconnecting with voters but also on rebuilding the party’s organisational machinery at grassroots level. It is also learnt that the decision to send the President around the country is one of the key outcomes of that process and now there is a significant date attached to that plan.
The first district-level rally under the new mobilisation programme is scheduled to begin on 6 September and a massive rally has been planned in Anuradhapura on 13 September.
With the Supreme Court considering the constitutional challenge to the 22nd Amendment, the Government is simultaneously preparing to take its political message directly to the people. If a referendum eventually becomes necessary, the September-October mobilisation could effectively become the opening phase of the Government’s referendum campaign.
Political fight to the streets
The JVP/NPP’s preparation to take its political campaign back to the streets, with a series of major public rallies scheduled under the leadership of President AKD, was made public by Minister Nalinda Jayatissa, who announced the planned mobilisation in Kalutara. Jayatissa’s statement appeared to throw down a direct challenge to the Opposition: if public sentiment has really shifted against the Government, prove it on the streets.
Jayatissa has said that rallies will be held across districts as part of the JVP/NPP’s continuing political programme, while the party is also reorganising its divisional councils at the grama niladhari division level.
However, it was his remarks on the Opposition that provided the sharper political message.
Rather than relying on claims of growing public anger, Jayatissa has challenged Opposition parties to organise their own rallies and demonstrate whether they could actually mobilise people.
“Instead of conspiring at G.L. Peiris’ house at night, tell them to come out onto the streets,” he has said, urging the Opposition to hold public meetings and mobilise supporters.
The remarks reflect an increasingly familiar line of attack from the JVP/NPP, which is that Opposition parties have been louder in Parliament and political circles than on the ground.
Jayatissa has argued that if the Opposition is convinced that public opinion has turned against the Government, there should be little difficulty in demonstrating that support through public mobilisation.
“If there is such public opinion against the Government, prove it,” he has said, pointing to the JVP/NPP’s own experience of building its political movement while in Opposition.
The September rallies could therefore become more than routine party events. With the JVP/NPP seeking to strengthen its grassroots structure while facing increasing political scrutiny, the mobilisation will also offer an early test of the Government’s ability to maintain its political momentum outside Parliament.
Opposition also prepares
Interestingly, the Government, it seems, will not have the political stage to itself in the weeks ahead since the Opposition is also gearing up for a major political mobilisation, signalling that the parties are preparing for the possibility of facing an election sooner rather than later.
The Sri Lanka Podujana Peramuna (SLPP) is scheduled to hold a major rally at the Salgado Grounds in Anuradhapura on 12 September under the leadership of SLPP National Organiser, MP Namal Rajapaksa.
The timing is particularly significant, coming just one day before the JVP/NPP’s planned rally in its district-level mobilisation programme in Anuradhapura the following day, 13 September. The two-day sequence could turn the ancient city into an early test of competing claims about the political mood in the country.
The SLPP is not the only Opposition party preparing for a major push.
The main Opposition, the Samagi Jana Balawegaya (SJB) has planned a two-day reorganisation campaign in Anuradhapura on 22 and 23 September, with the party already allocating its MPs to different electorates to ensure that all constituencies in the district are covered.
The message from the Opposition is becoming increasingly clear. The Opposition does not want to wait for an election to begin its campaign.
Instead, the parties appear intent on rebuilding their grassroots networks, testing their ability to mobilise supporters, and preparing their organisational machinery for whatever electoral contest may come next.
If the debate over the 22nd Amendment eventually leads to a referendum, or if another election comes into view, these September manoeuvres may prove to have been much more than routine party reorganising.
Namal challenges AKD
Meanwhile, the SLPP’s Namal Rajapaksa has put the spotlight back on the Government’s anti-corruption credentials, challenging President AKD to take action over allegations concerning Secretary to the President Nandika Sanath Kumanayake.
Addressing a public meeting in Kuliyapitiya recently, Namal has said the allegations, raised by SLPP MP D.V. Chanaka and linked to Kumanayake’s previous tenure at Sri Lanka Customs, presented the Government with an opportunity to demonstrate whether its repeated promises on transparency and accountability extended to those close to the President.
“The President speaks about catching thieves and ensuring honesty. This is an opportunity to demonstrate that commitment,” Namal has said, adding that the Opposition was watching to see what action would follow.
The remarks put the President in a politically uncomfortable position since the Government has made the fight against corruption one of its central political messages, while the Opposition is increasingly seeking to test that pledge against allegations involving senior officials.
Namal has also broadened his attack, accusing the Government of falling short on several election promises made to farmers, graduates, and young people.
He has pointed to the contrasting pressures faced by the agriculture and consumer sectors, saying farmers are struggling with low paddy prices while consumers continue to face high rice prices.
The SLPP MP has also criticised the Government over taxation, electricity, and fuel costs, claiming that the rising cost of doing business was particularly affecting young entrepreneurs.
His criticism extended to the Government’s handling of alleged security and cyber incidents involving State institutions. Namal has called for proper investigations to establish responsibility, rather than allowing such incidents to become another source of political confrontation.
Namal’s broader message was that the Government should move away from political confrontation and concentrate on delivering solutions to the problems facing the public.
Battle within Joint Opposition
Meanwhile, the Joint Opposition convened by former Minister G.L. Peiris was put in a difficult spot this past week when former Sri Lanka Freedom Party (SLFP) MP Suren Raghavan appeared to have drawn a line over the idea of sitting together with the Joint Opposition, despite having previously shared political space with figures such as Peiris, Patali Champika Ranawaka, and Rajitha Senaratne.
Raghavan, it is learnt, had decided not to take a seat with the Joint Opposition, citing the presence of politicians who had supported the removal of former Chief Justice Shirani Bandaranayake.
He has explained that while he would extend his support for common causes with the Joint Opposition, he could not stand with many members of the Joint Opposition at present over the ongoing controversy surrounding the Judiciary given their actions during Bandaranayake’s ouster.
The decision adds an interesting twist to the Opposition’s efforts to maintain a united front. While politicians who once stood on opposite sides of the political divide have found common ground in opposing the Government, Raghavan appears unwilling to overlook what he considers a serious issue of principle.
Briefly bridging the JVP divide
Meanwhile, for a few hours on Thursday (27), one of the deepest political divisions in the country’s Left appeared to disappear.
The funeral of Somawathie Milina Peiris, better known as ‘Beeta’ or, among the old JVP cadre, as ‘Udagedara Akka,’ brought together senior activists and sympathisers of both the JVP and its splinter group, the Frontline Socialist Party (FSP), which could be identified as two currents that emerged from the bitter political fractures within the JVP.
At the centre of that unusual gathering was a woman whose political life had belonged to an earlier generation of the JVP, when party loyalty was forged under underground conditions, political repression, and personal sacrifice.
Peiris, who died at the age of 90, had apparently anticipated that the divisions among former comrades might overshadow her final farewell. In a last will written about a month before her death, she had made a specific request that no member of either the JVP or the FSP should be prevented from attending her funeral. More significantly, she had called on both sides to set aside their present-day political differences and join her funeral as comrades.
That wish was honoured. JVP and FSP activists, friends, and relatives gathered together to pay their final respects. Among them was Lionel Bopage, a former JVP General Secretary and one of the party’s early leaders.
The symbolism was difficult to miss. The JVP and the FSP remain politically separate, with differences shaped by the ideological and organisational conflicts that fractured the movement. Yet at Peiris’s funeral, those differences were temporarily put aside for a figure respected across the old political divide.
For a generation of activists who had experienced the JVP’s underground years, personal bonds forged through political struggle often ran deeper than subsequent organisational divisions. Udagedara Akka appears to have understood that better than most.
Her final request therefore became more than a family wish. It turned her funeral into a rare moment in which former comrades from opposing sides could stand together, not to debate ideology or settle old scores, but simply to acknowledge a shared political past.
In death, Udagedara Akka achieved something that politics had failed to do for years.
Govt. ready for PC Polls
The Government, meanwhile, appears keen to distance itself from suggestions that it has no intention of holding long-delayed Provincial Council (PC) Elections, with Cabinet Spokesperson, Minister Nalinda Jayatissa insisting that the polls remain on the Government’s agenda.
Responding to remarks by NPP MP Nilanthi Kottahachchi that were interpreted as ruling out the elections, Jayatissa has said the Government expects to hold them “quickly” and has already allocated funds for the purpose.
But there is a catch; the Government still needs Parliament to enact the necessary legislation and complete the long-running delimitation process before the Election Commission can proceed.
Jayatissa has said that if these hurdles are cleared within this year, the elections can be held.
A parliamentary committee has already been appointed to deal with the issue, leaving the Government with little room to shift responsibility elsewhere.
For a Government that came to power promising stronger democratic institutions and electoral accountability, the Provincial Council question is becoming increasingly significant.
Electoral reform discussion
Meanwhile, the latest electoral reform exercise appears to be aiming for more than another round of amendments to election laws.
A special meeting held at Parliament recently has formally set the direction for the expert panel tasked with reviewing the electoral system, excluding Provincial Council Elections. The panel, chaired by Minister A.H.M.H. Abayarathna, has been given two months to examine 31 proposals submitted by citizens and organisations, alongside relevant research by universities and other institutions.
The stated objective is to identify weaknesses in the existing system and, where necessary, consider an entirely new electoral framework and culture.
That distinction is important given that Sri Lanka has frequently responded to electoral problems through piecemeal amendments, often without addressing the structural issues underlying them. The latest exercise suggests an attempt to take a broader view of how elections should function in a modern democracy.
The real test, however, will come when the panel’s recommendations reach Parliament.
Whether the Government is prepared to pursue meaningful structural reform, including changes that may challenge established political interests, will determine whether this exercise becomes another report gathering dust or the starting point for genuine electoral change.
China in the middle
On the subject of Sri Lanka’s handling of geopolitical sensitivities, China, which had maintained a low profile and remained largely on the sidelines concerning Sri Lanka over the past several months, has once again begun taking a more active interest in the country.
Newly appointed Ambassador of China to Sri Lanka Wei Huaxiang, the successor of China’s former Ambassador Qi Zhenhong, who had maintained particularly close ties with the Rajapaksa family, appeared to be seeking to rebuild closer relations with the JVP/NPP Government.
It was noted that the new Chinese Ambassador had visited Sri Lanka accompanied by a group of Chinese investors who had met with President AKD recently.
It is learnt that the group of Chinese investors who met the President had responded positively to the prospect of investing in Sri Lanka.
It is also learnt that the Chinese investors have expressed interest in eight major projects centred around Port City Colombo and there are also indications that China is planning to undertake these projects as direct investments.
India unsettled
However, with the arrival of the group of Chinese investors in Sri Lanka alongside the new Chinese Ambassador, there are also signs that India is continuing to keep a close watch on Sri Lanka.
This was first evident in a statement made by India’s Rajya Sabha Deputy Chairman Harivansh Narayan Singh in the Indian Parliament.
He has said that China was engaged in a systematic and carefully planned effort to strategically encircle India. Referring specifically to Sri Lanka, he has reportedly said that Beijing was taking steps to develop between eight and 10 deep-sea ports of international significance across regional countries, including Sri Lanka, Bangladesh, and Nepal.
Singh has also warned that such developments could alter the balance of power in the Indian Ocean Region and create geopolitical and security challenges for India.
It is important to note that Singh had entered Indian politics representing the National Democratic Alliance (NDA) led by the ruling Bharatiya Janata Party (BJP) and later became the 13th Deputy Chairman of the Rajya Sabha.
Therefore, a statement made by a senior politician holding such a high position and maintaining close links with India’s ruling party cannot simply be dismissed as an off-the-cuff remark.
What makes the development particularly interesting is that, within 48 hours of Narayan Singh issuing those remarks, reports had emerged that Indian Defence Minister Rajnath Singh was planning to visit Sri Lanka in September.
It was reported this past week that the Indian Defence Minister would visit Sri Lanka from 9 September to 10 September.
Rajnath Singh is regarded as one of the most powerful ministers in Prime Minister Narendra Modi’s BJP Government. He is often described as the second-most powerful figure in the party after Modi. Therefore, Rajnath Singh is not someone who undertakes foreign visits casually.
During his visit to Sri Lanka, Singh is scheduled to discuss the full and expeditious implementation of the Memorandum of Understanding on defence cooperation between India and Sri Lanka, and meet President AKD, Prime Minister Harini Amarasuriya, and Ministry of Defence Secretary Air Vice Marshal (Retd) Sampath Thuyacontha.
Chinese involvement
Meanwhile, ‘The Black Box’ has also learnt that India is also paying particular attention to several developments taking place in Sri Lanka, particularly in the Northern and Eastern Provinces.
One reason is the increasing number of Chinese and Pakistani tourists who have been visiting these areas over the past several months.
India is also understood to be closely monitoring two special exploration zones currently operating in Mannar and Trincomalee.
The reason for this interest is that Sri Lankan authorities have reportedly taken steps to enter into agreements with a Chinese university relating to these two exploration zones.
Accordingly, India is believed to be closely monitoring who is involved in these exploration activities on the Chinese side and what exactly they are doing.
Parliament’s accountability issues
Meanwhile, on the front of accountability and anti-corruption initiatives pushed by the JVP/NPP, the Auditor General’s latest special audit has exposed an uncomfortable irony, which is that Parliament, the institution entrusted with scrutinising public expenditure, has itself operated for years with weak financial controls and privileges that appear to have escaped proper oversight.
The audit, covering the period from 2015 to 2024, has revealed unlimited fuel allocations for senior parliamentary officials, questionable vehicle use, excessive private mileage, and millions spent on overseas trips without any requirement to demonstrate what public benefit was gained.
Perhaps most striking is the revelation that the secretary general’s salary has increased by around 800% from the amount approved by Parliament in 2004, despite no fresh parliamentary approval being obtained, raising questions under Article 65(2) of the Constitution.
Parliament had also spent Rs. 335.66 million since 2016 on an employee bus service without a written agreement with the Sri Lanka Transport Board (SLTB), while Rs. 208.9 million had been spent sending 451 MPs overseas between 2016 and 2024.
The Auditor General has pointed to an outdated parliamentary staff law dating back to 1953 as one reason for these weaknesses. But outdated legislation alone cannot explain a culture in which privileges continue without adequate review.
With the Treasury providing nearly Rs. 3.5 billion annually to Parliament, the issue is bigger than fuel bills and administrative irregularities. The Legislature cannot demand accountability from the Executive while allowing its own financial practices to remain beyond rigorous scrutiny.
The audit should therefore trigger more than corrective action as it should prompt Parliament to examine whether the rules governing its own privileges, expenditure, and administration meet the standards of accountability it expects from everyone else.
Probes and arrests
Amid all these political developments, there appears to be no let-up in the ongoing operation to arrest former powerful politicians as well as influential politicians currently serving in Parliament. According to information received by ‘The Black Box,’ preparations are underway to arrest several prominent politicians in the coming weeks.
At the forefront of these reports is the name of the leader of a major political party. It is also learnt that a former powerful Cabinet minister is due to be arrested over several allegations. In addition, a former politician known for his outspoken and often controversial statements is also expected to be taken into custody.
Meanwhile, investigative authorities have, over the past several months, been conducting special investigations into the bank accounts of the wives of several former powerful ministers. As a result of these investigations, authorities have reportedly discovered a substantial sum of money in the bank account of the wife of a politician from the Central Province who had made a major political switch during the Ranil Wickremesinghe administration, crossing over from the Opposition to join the Government and securing a ministerial portfolio.
Similarly, investigators have reportedly uncovered millions of rupees in the bank account of the wife of a popular and outspoken Opposition politician. Investigators are now said to suspect that the money was deposited into her account in connection with a transaction involving an institution that came under the politician’s ministry when he had served as a minister under a previous Government.
Fertiliser files return to court
The controversial organic fertiliser saga of the Gotabaya Rajapaksa administration has resurfaced in court, putting another former Cabinet minister under the spotlight as the Government’s anti-corruption drive continues to revisit allegations surrounding the previous regime.
Former Minister of Agriculture Mahindananda Aluthgamage was brought before the Colombo Magistrate’s Court in connection with the alleged importation of 20,000 MT of substandard organic fertiliser from a Chinese company.
The case carries a hefty price tag and investigators allege that the shipment resulted in a loss of more than $ 6.7 million to the State.
However, for now, there is no fresh dramatic development in the case. The Commission to Investigate Allegations of Bribery or Corruption (CIABOC) had informed the court that its investigations were still continuing and requested further time to complete them. The case will return to court on 4 December, when the CIABOC is expected to report on the progress of the investigation.
Politically, however, the case is significant beyond the courtroom given that the fertiliser controversy was one of the defining episodes of the previous administration’s disastrous agricultural policy shift. It also became symbolic of the questions surrounding procurement, decision-making, and accountability during the economic crisis years.
Aluthgamage’s appearance is particularly notable because he is already serving a prison sentence in connection with another case.
Spotlight back on Mahendran
Meanwhile, the Government’s latest admission on former Governor of the Central Bank Arjuna Mahendran is a reminder that bringing high-profile suspects back to Sri Lanka is considerably more complicated than issuing warrants or securing an Interpol notice.
Public Security Minister Ananda Wijepala has acknowledged that Sri Lanka faces a legal hurdle in its efforts to extradite Mahendran from Singapore, where the former Governor is now a citizen and is understood to have changed his name.
The Government says it is nevertheless exploring available legal avenues to bring him back, while proceedings connected to the Central Bank bond case continue in Sri Lanka.
Mahendran was indicted in 2019 over allegations that he caused losses of more than $ 11 million to the State. Singapore had previously rejected Sri Lanka’s extradition request, citing requirements under its Extradition Act.
The case has therefore become another test of the Government’s much-publicised promise to pursue individuals accused of major financial wrongdoing.
The JVP/NPP administration has repeatedly sought to project itself as a Government willing to go after those responsible for corruption and economic crimes. But Mahendran’s case demonstrates that political determination alone cannot overcome the legal requirements of another sovereign state.
The Minister’s disclosure on Interpol Red Notices, however, gives the Government another figure to highlight in its law-and-order narrative.
According to Wijepala, Sri Lanka has secured 236 Interpol Red Notices for individuals wanted in connection with various criminal cases, including 110 since the present Government assumed office.
Of those wanted, 66 individuals have reportedly been brought back to Sri Lanka, while authorities are continuing investigations into another 97. A further 39 wanted individuals have been located.
The Government also expects another wanted suspect to be returned to Sri Lanka next week.