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“Move to hand over Sevanagala Sugar Co. to Daya G alleged”: PMD responds

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Dhanushka Ramanayake, Director General (Media) of the President’s Media Division (PMD) has sent us the following clarification:

“The attention of President’s Media Division has beenbrought to the news item on pages 01 and 02 of The Island newspaper dated 30.10.2023, titled “Move to hand over Sevanagala Sugar Co. to Daya G alleged.”

Mr. Daya Gamage, a Sri Lankan entrepreneur and an active member of the United National Party under the leadership of President Ranil Wickremesinghe, is closely associated with politics. This connection highlights that any insinuation of a “conflict among allies” in the news, whether intentional or inadvertent, is misleading and based on incorrect information.

In the spirit of our mutual commitment to delivering accurate information to the public, we wish to present the correct details regarding the news piece in The Island newspaper from 30.10.2023, titled ‘Move to hand over Sevanagala Sugar Co. to Daya G alleged.’

No decision or proposal has been made to transfer Sevanagala Sugar Company to Daya Group.

As per the report in The Island newspaper, the Sevanagala Sugar Factory was brought under government ownership through the Revival of Underperforming Enterprises or Underutilized Assets Act No. 43 of 2011. This act also facilitated the government’s acquisition of several financially struggling institutions, including the Pelwatta Sugar Factory, Hilton Hotel and Grand Hyatt Hotel.

At the time of this acquisition, the investment in the Sevanagala Sugar Factory was attributed to the Daya Group Company, which is owned by Mr. Daya Gamage, a notable Sri Lankan entrepreneur. In cases where financial losses were incurred by investors due to the government takeover of these struggling businesses a designated assessment committee was appointed. The provisions of the same act were invoked to determine and provide compensation where warranted.

Consequently, compensation was disbursed to the companies taken over by the government. However, in the case of the Sevanagala Sugar Company, no compensation was forthcoming due to specific technical issues.

In response to this situation, Mr. Daya Gamage, as the investor in the Sevanagala Sugar Company, initiated three legal proceedings to seek compensation or the return of the property. He expressed his willingness to regain ownership and resume business operations without requiring compensation as an alternative resolution.

The government’s decision in this matter was to provide compensation rather than returning the property. In response, employees at the Sevanagala Sugar Company filed two fundamental rights cases in the Supreme Court, both of which are currently awaiting resolution.

To calculate the compensation owed to the investor for the handover of the Sevanagala Sugar Company to the government a Compensation Commission was re-established. This commission’s task is to assess the losses suffered by the investor encompassing property not only the immovable property of the Sevanagala Sugar Company but also considering the business losses incurred due to the acquisition of specific motor vehicles, machinery and equipment meant for its further development.

The Compensation Commission is chaired by the Chief Valuator of the Government and includes two retired Chief Appraisers from the Government Valuation Department as members. They are responsible for conducting the compensation calculations. To maintain transparency throughout this process, the investor has been granted approval by the cabinet to appoint a monitor.

As it stands, the government’s decision is to compensate the investor for property acquisition losses and business losses determined by the Compensation Commission. No proposal or decision has been made regarding the reversion of the property, and such a proposal has not been approved by the Cabinet.

In an effort to ensure transparency in government property disposal, a new Public Enterprises Reform Unit has been established, with criteria approved by the Cabinet. If the property is to be re-disposed, it will be done through a transparent tender process following these established guidelines.

It’s important to note that the government has not chosen to return the property to the previous investor through any other procedure and an additional related case is still pending in court.

In the spirit of providing a fair platform for all information, I kindly request that you give the same level of publicity to this accurate account as you did to the initial news in the newspaper.



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Three arrested with narcotics valued at Rs123 million at BIA

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Three Sri Lankan male passengers who arrived from Muscat by flight no. OV 437 on Saturday (24) have been arrested by officers attached to the  NCU at BIA as they were found  to be carrying 12,306 grams of Cannabis class narcotics (suspected as Hashish & Kush) valued at 123 million rupees.

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Navy intercepts 02 narcotics-laden trawlers with 11 suspects in southern seas

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Building on its success in seizing major narcotic stocks in 2025, the Navy continued to support the “A Nation United” National Mission in 2026. In continuation of these efforts, during an
operation conducted on the high seas south of Sri Lanka, the Navy apprehended eleven (11) suspects aboard two local multi-day fishing trawlers suspected of drug smuggling.

Based on shared information, by the Sri Lanka Navy and Police, this special operation was conducted off the southern coast, deploying the Navy‟s Offshore Patrol Vessels. The operation
resulted in the interception of a multi-day fishing trawler  suspected of smuggling narcotics, and the apprehension of five (05) suspects on board.

During further operations in the same area, naval units seized another multi-day fishing trawler (01), along with communication equipment and six (06) additional suspects, also believed to be involved in drug smuggling.

This morning (25 Jan 26), the two intercepted fishing trawlers, along with fourteen (14) sacks laden with suspected narcotics and the suspects, were brought to the Dikovita Fisheries Harbour.

An expert examination by the Police Narcotic Bureau confirmed that the fourteen (14) sacks contained more than 184 kilograms of heroin and over 112 kilograms of ‘Ice’ (crystal methamphetamine).

The Deputy Minister of Defence, Major General (Retd) Aruna Jayasekara,  the Commander of the Navy, Vice Admiral Kanchana Banagoda, and the Inspector General of Police,  Priyantha Weerasuriya, inspected the narcotics at the Dikovita harbour.

The Deputy Minister of Defence said  that the current administration has initiated several projects for national development. As a flagship initiative, under the directives and guidance of the President, and under the supervision of the
Ministry of Defence, well-coordinated anti-narcotic raids have been launched.

This effort, part of “A Nation United” National Mission, involves the tri-forces, police, and all intelligence agencies working together under a coordinated plan to ensure that drug smugglers have no opportunity to bring narcotics into the country, he opined. He further stated that despite the national disaster situation, the state machinery, including the tri-forces, the police, and the public at large, remains united in rebuilding the nation, no room will be left for drug trafficking, which poses a severe threat to national security and public safety. Those
who engage in or support drug trafficking, under the cover of fishing activities, will find no escape, he added.

The Deputy Minister also reaffirmed that the tri-forces, police, and all law enforcement agencies are fully committed to their duty of suppressing this menace.

The Deputy Minister of Defence reported that, throughout 2025, a series of highly successful operations were conducted leading to numerous arrests. This was achieved through close coordination and mutual cooperation among the tri-services, the police, the Special Task Force, Police Narcotics Bureau, local law enforcement and international agencies. He noted that this
same spirit of cooperation and commitment has continued into 2026, resulting in the seizure of a large stockpile of drugs.

On behalf of the Honourable President, he extended gratitude to all who contributed to these efforts, specifically acknowledging the Commander of the Navy, the Inspector General of Police, the Police Narcotic Bureau, and the crews of the Navy’s Offshore
Patrol Vessels.

Moreover, the Deputy Minister declared that drug smuggling has become a national crisis, fueled by youth involvement and social crime. With borders secured under the “Nation United” National Mission, he warned traffickers to cease operations and urged users to abandon the destructive habit.

The Deputy Minister urged the public to report suspected drug smugglers to law enforcement via the hotlines 1818 or 1997 and also commended the role of media institutions and journalists in raising public awareness about the dangers of narcotics through responsible reporting.

Meanwhile, the two (02) multi-day fishing trawlers, along with a haul of narcotics, eleven (11) suspects, and communication equipment, were handed over to the Police Narcotic Bureau for
further investigation and legal proceedings.

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Engineers draw red line as CEBEU warns of union action over appointed date

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Engineers at the Ceylon Electricity Board have drawn a clear red line over the government’s plan to gazette the appointed date for restructuring the utility, warning that trade union action will follow if the move is pushed through without addressing their core demands, the Sunday Island learns.

The powerful Ceylon Electricity Board Engineers’ Union (CEBEU) says preparations are already under way for industrial action, most likely after the appointed date gazette is published, should the Minister proceed without resolving outstanding issues raised repeatedly by engineers.

“If the appointed date is gazetted without addressing our demands, we will have no option but to take trade union action,” a senior electrical engineer told The Island, stressing that the warning should be taken seriously.

CEBEU sources say the engineers’ demands are aimed at preventing a structural and financial crisis in the electricity sector, rather than blocking reform. They insist that unbundling the CEB without first putting in place firm safeguards would expose the sector to instability and consumers to higher costs.

The engineers’ key demands include: legally binding financial safeguards to ensure the proposed Electricity Generation Company is viable from inception; protection against the transfer of legacy liabilities, extraordinary costs, or inefficiencies to new entities or electricity consumers; enforceable accountability for management and policy decisions that inflate system costs; genuine, structured consultation with technical professionals before irreversible decisions are taken; and a halt to gazetting the appointed date until these safeguards are formally incorporated.

Engineers warn that rushing the appointed date would lock existing weaknesses into the new structure, making them harder—and more expensive—to fix later. “Once the appointed date is gazetted, there is no rewind button,” a senior engineer said. “If the foundation is flawed, the entire structure will suffer.”

Meanwhile, according to energy analyst, Dr. Vidhura Ralapanwe, electricity sector reforms must be grounded in technical and financial reality, not driven by administrative timelines.

He has cautioned that implementing structural changes without correcting underlying governance and cost issues risks destabilising the sector and undermining public confidence.

CEBEU officials reject claims that the union is resisting reform. They say engineers are being sidelined in decision-making while being held responsible for system performance. “We are accountable for keeping the system running, but our professional warnings are being ignored,” one engineer said. “That is not reform; it is reckless governance.”

With the Minister yet to gazette the appointed date, tensions within the power sector are rising sharply.

Engineers say the government now faces a stark choice: engage with professionals and fix the problems first—or brace for confrontation in a sector where disruption will have coutrywide consequences.

By Ifham Nizam ✍️

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