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X-Press Pearl controversy: Prof. Peiris zeroes in on AG

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By Shamindra Ferdinando

Jathika Nidahas Sabhawa Spokesperson Prof. G. L. Peiris, MP, Tuesday (02) questioned the conduct of the Attorney General Sanjay Rajaratnam, PC, pertaining to obtaining compensation for the worst ever marine disaster, caused in Sri Lankan waters, following the sinking of container carrier X-Press Pearl, in the first week of June 2021.

Rajaratnam was sworn in as AG on May 26, 2021, less than a week after the ill-fated vessel, carrying a hazardous cargo, reported a fire onboard, but was allowed to enter Sri Lankan waters.

Addressing the media, at the Nawala Office of the breakaway SLPP faction, the former top law academic emphasized that the AG, on behalf of his department, owed an explanation as regards Sri Lanka’s response to the unprecedented marine disaster, and its aftermath.

The former External Affairs Minister asked whether Sri Lanka’s pathetic response was caused by negligence on the part of the AG’s department or some mysterious intervention made by some interested party/parties.

“Why did the government wait for the last moment to file action?” Prof. Peiris asked.

The other contentious issue at hand is why a Singaporean court had been moved against the owners X-Press Feeders, and the insurers of X-Press Pearl, regardless of specific recommendation made by an expert committee, appointed by the Marine Environment Protection Authority (MEPA), to file action in Colombo.

Attorney-at-Law Dharshani Lahandapura, the then Chairperson of the MEPA, told The Island that, on the basis of the recommendations made by the expert committee, she felt action should be filed here. The expert commit was jointly led by Prof. Ajith de Alwis and Prof. Prasanthi Gunawardane.

Her successor Asela B. Rakewa, also an Attorney-at-Law, said that MEPA was not consulted by the AG regarding filing of the case in Singapore. Rakewa said so in response to The Island query. Rakewa declined to comment on that decision as he couldn’t take a stand, contrary to that of the Cabinet-of-Ministers.

Prof. Peiris said that he couldn’t believe that a Singaporean court had been moved against an incident that took place within Sri Lankan waters. The former minister questioned the culpability on the part of the Cabinet-of-Ministers for the decision on the Singaporean court, as advised by the AG.

At the time of the X-Press Pearl disaster, Prof. Peiris served the then Cabinet of Gotabaya Rajapaksa. The rebel SLPP group quit the government parliamentary group, on July 20, 2022, in the wake of the party throwing its weight behind PM Ranil Wickremesinghe, at the vote to elect a successor to complete the balance period of ousted President Gotabaya Rajapaksa’s term.

The SLPP National List member pointed out that the action would cost bankrupt Sri Lanka an arm and a leg. Declaring that Sri Lanka’s response disclosed continuing pathetic state of affairs, Prof. Peiris asked the government also to explain the involvement of an Australian firm in filing action in Singapore. “We would like to know who picked this particular Australian firm, and the procedure followed,” Prof. Peiris said.

At the onset of the briefing, Prof. Peiris welcomed an opportunity to debate the X-Press Pearl affair in Parliament next week. Parliament meets on May 09. Sittings will continue till May 12.

The former minister compared the USD 2.9 bn bailout package, secured from the IMF, in March this year, and compensation to the tune of USD 6.4 bn which could be ours if Sri Lanka handled the case properly.

Commenting on the continuing controversy over an alleged bribe amounting to USD 250 mn (Rs 80 bn) received by a person in a position to sabotage Sri Lanka’s case, Prof. Peiris called for a thorough inquiry.

The Island

, in its 13 April edition, exclusively reported the disclosure made by Justice Minister Dr. Wijeyadasa Rajapakse, PC, pertaining to USD 250 mn being deposited in a UK bank.

Prof. Peiris questioned the validity and the basis for the Justice Minister’s complaint to the IGP as regards the massive bribe allegedly received by an interested party. The former minister asked for a proper inquiry to identify one Chamara Gunasekera whose name has transpired in this connection.

Referring to domestic and international laws in place to curb money laundering, Prof. Peiris said that such a massive deposit would have immediately alerted the British system and appropriate action taken.

It is a proven fact that virtually all leading British banks have been fined by the American legal system for mainly laundering drug cartel money, but not a single banker responsible for such criminal acts have been punished, let alone imprisoned.

The former minister also speculated about the possibility of the government propagating a lie to divert public attention.

Prof. Peiris asked whether the AG’s Department was aware of an attempt made by the ship owners and insurers to move British court against Sri Lanka’s efforts to secure sufficient damages. If they succeeded, a limit would be imposed on the damages Sri Lanka was entitled to as a result of the worst ever marine disaster in this part of the world.



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Sri Lanka, India caught in US-Iran ship crisis

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By Shamindra Ferdinando

Iran has sought the Indian intervention, at the highest level, to provide lifesaving support to the crews of empty Iranian vessels stranded just outside Sri Lanka’s 12-nautical mile territorial waters off Galle.

Sources familiar with the issue said that Iran had brought the developing situation to the attention of New Delhi as the crews of almost 20 vessels, included Indian nationals. Sources stressed that the group of vessels that unloaded crude oil a couple of months back were now stranded within Sri Lanka’s Exclusive Economic Zone (EEZ).

The US Navy torpedoed an unarmed Iran frigate, returning from India, on 04 March, 2026, about 19 nautical miles off the Galle coast. The unprovoked attack killed nearly 100 Iranians.

The Iranian Embassy in Colombo has inquired from the Indian High Commission of their response to the situation, sources said. The US has issued a global warning against providing food, water, medicine and other services to the Iranian vessels. The outcome of Iran-India talks on the issue at hand was not known, though sources asserted India may not throw its weight behind Iranian efforts to address the issue.

Responding to The Island queries, sources said both Sri Lanka and India were in a dilemma due to the US warning. India couldn’t ignore the plight of the Indian crew members and the Iranian vessels in its backyard.

The Sri Lankan government remains tight-lipped about the vessels stranded in its EEZ. Our efforts to elicit a response from relevant authorities were in vain. In addition to Indians, there are Bangladeshis among the crew members. Iran has explicitly stated the responsibilities of the countries concerned to provide assistance in terms of international law.

The Iranian position was articulated by its Ambassador to Sri Lanka, Dr.Alireza Delkhosh, recently. In a special statement, Ambassador Delkhosh emphasised that in terms of the Convention on the Law of the Sea (Article 98) as well as SOLAS and SAR

Conventions, Sri Lanka couldn’t refrain from providing the needs of the Iranian vessels stranded in its EEZ.

SLMC leader Rauff Hakeem lambasted the NPP government in Parliament for failing to provide assistance to the Iranian ships. The former Minister alleged that the government was simply carrying out dictates of the US. He strongly criticised the way Foreign Minister Vijitha Herath was handling the issue.

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Namal further remanded

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MP Namal Rajapaksa being brought to the Colombo Magistrate’s Court yesterday. Pic by Nishan S Priyantha

MP Namal Rajapaksa, who is in remand custody over the controversial Airbus deal, was further remanded until October 27 by the Colombo Magistrate’s Court yesterday (13).

Colombo Chief Magistrate Asanga S. Bodaragama made the order after considering submissions by officers of the Commission to Investigate Allegations of Bribery or Corruption and lawyers representing Rajapaksa.

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IMF projects Lankan economic growth to moderate amidst mounting global uncertainties

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Sri Lanka’s economy is expected to sustain its recovery over the next two years, although growth is projected to moderate amid mounting global uncertainties, according to the International Monetary Fund’s (IMF) latest World Economic Outlook.

In its World Economic Outlook 2026: Resilience Under Strain, Urgent Choices, the IMF projects Sri Lanka’s economy to expand by 4% in 2026, slowing to 3.7% in 2027, following estimated growth of 5% in 2025.

Inflation, meanwhile, is forecast to rise to 5.3% in 2026 and 5.4% in 2027, reversing the average deflation rate of 0.5% recorded in 2025.

Unemployment is expected to remain steady at 3.9% throughout the forecast period.

The projections come amid growing pressure on the global economy from the ongoing conflict in the Middle East, elevated energy prices, geopolitical tensions and trade disruptions.

Sri Lanka’s external position is also expected to weaken, with the current account balance projected to shift from a surplus of 1.6% of gross domestic product (GDP) in 2025 to deficits of 0.5% in 2026 and 0.3% in 2027.

The IMF’s outlook points to continued economic expansion in Sri Lanka, but with slower growth, rising inflation and a narrowing external surplus giving way to current account deficits over the forecast period.

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