News
Easter Sunday probe: CB not informed of Rs 4 bn Hizbullah et al received from overseas
By Rathindra Kuruwita
Two current accounts, operated by former Eastern Province Governor M. L. A. M. Hizbullah and others at the Bank of Ceylon (BoC) branch at Kollupitiya, had received foreign funding close to Rs. 4 billion within three years, the Presidential Commission of Inquiry (PCoI) probing the Easter Sunday attacks was informed yesterday.
It was also revealed that the BoC had not informed the Central Bank of Sri Lanka (CBSL) of those transactions although it was required to do so in respect of foreign transactions over one million rupees.
Ms I.C.K. Kannangara, former Manager of the BoC Kollupitiya branch, told the PCoI that foreign funds had been sent the two accounts from 2016 to 2019.
Kannangara said that one account, for Sri Lanka Hira Foundation had received Rs. 313,128,281.59. The funds had been received in 12 separate transactions between March 11, 2016 and April 24, 2019. While a significant portion of the funds came from Ali Abdullah Al Juffali inheritance, Rs. 284.8 million, the rest of the funding came from Siddique and Diana Osmond and Credential Limited from London. Al Juffali family is one of the richest Saudis with an estimated worth of $19.8 billion.
Hizbullah, Abdul Samsudeen and Faleel Mohommad operated this account, opened on August 18, 1993 in the name of a social service organisation. However it was only on September 09, 1993 that Sri Lanka Hira Foundation had been certified by the Department of Social Services. Kannangara responding to a question posed by the Commissioners admitted that allowing the foundation to open a bank account without the proper registration was irregular.
The Batticaloa Campus Private Limited had received Rs. 3.65 billion from Ali Abdullah Al Juffali inheritance between March 04, 2016 and June 07, 2017, the commission was informed.
The funds had been credited on seven separate occasions. The dates and details of these transactions are as follows: Rs. 695.8 million on March 04, 2016, Rs. 546.1 million on May 05, 2016, Rs. 526.9 million on August 03, 2016, Rs. 424.6 million on October 05, 2016, Rs. 541.4 million on an undisclosed date, Rs. 458 million on March 04, 2017 and Rs. 450.2 million on June 07, 2017.
Commissioners then asked Kannangara if she had been aware of the Central Bank of Sri Lanka (CBSL) rule making mandatory for financial institutions to inform the CBSL’s Financial Intelligence Unit of Sri Lanka (FIU) if they received a cash transactions and/or electronic funds transfers of an amount exceeding rupees one million (Rs. 1,000,000), or its equivalent in any foreign currency. Kannangara answered in the affirmative.
“In this case a number of transactions over one million rupees have taken place, but you inform the FIU?” the Senior State Counsel leading the evidence asked
Kannangara said that it was the Chief Compliance Officer of BoC who usually contacted the FIU. The Kollupitiya Branch had already identified the two accounts as high risk accounts, the witness said.
Kannangara said: “There were significant transactions and in 2016 and 2017, we informed the Chief Compliance Officer of BoC that special attention must be paid. The Chief Compliance Officer asked us to submit all documents and we did. However, on both occasions, the Headquarters decided that these accounts are not suspicious.”
Therefore, BoC had not reported the accounts to the FIU of CBSL before the Easter Sunday attacks, she said.
“When you spoke to the Chief Compliance Officer about these accounts, were the name of a particular person mentioned?” a Commissioner asked the witness.
Kannangara said: “Yes, Hizbullah’s name was mentioned. He was a Governor at that time.”
A commissioner asked, “Did that play a role in deciding that the accounts were not suspicious? How did you know that the money was being used to build a campus?”
“We saw media reports,” she said. The witness is to provide information on three more bank accounts operated by Hizbullah at the BoC Colpetty Branch.
News
Fast Attack Craft P 4447 recovered in successful salvage operation
The Sri Lanka Navy successfully recovered its Fast Attack Craft P 4447 following a successful salvage operation, bringing a multi-stage emergency response to a close.
The craft, which ran into distress during a routine patrol on 15th August 2026 off Angulana, was brought to the surface on 11th September, from a depth of approximately 80 feet. It was
subsequently towed to the Colombo Dockyard premises.
The initial phase of the operation immediately following the incident focused on search and rescue. A joint effort involving the Navy, Air Force, Police, and local fishermen from Angulana
resulted in the rescue of 11 crew members. The search and rescue phase drew to a close with the recovery of the remains of the Second in Command of the craft, on 4th September.
Following the search and rescue phase, specialized Navy diving and salvage teams launched a dedicated recovery phase against rough sea conditions and underwater challenges, adhering to
strict safety protocols. The Navy’s marine, hull, electrical, and electronic engineering teams utilized specialized technical know-how and equipment to raise the vessel in stages.
Thus, the salvage operation marked an outstanding achievement attained through the professionalism, technical expertise of Navy divers, and coordinated contribution of all
engineering and technical branches of the Sri Lanka Navy. Technical support and specialized expertise were also extended by the Sri Lanka Ports Authority and Colombo Dockyard PLC.
News
CIABOC member’s appointment: Controversy over Speaker under probe heading selection process
By Shamindra Ferdinando
The Opposition should intensity its focus on the forthcoming selection of a member of the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) and remain vigilant as Speaker Dr. Jagath Wickremaratne, MP, the head of the Constitutional Council (CC) tasked with making the relevant recommendation, is under investigation by the CIABOC, sources familiar with the ongoing inquiry told The Island.
Chethiya Goonasekara, PC, is expected to complete his three-year term on Dec 31, 2026. Sources pointed out that CIABOC Commissioners are appointed by the President on the recommendation made by the 10-member Constitutional Council.
The CIABOC initiated the investigation following a complaint lodged by suspended Chief of Staff and Deputy Secretary General of Parliament Chaminda Kularatne in early February this year. Sources said that as Goonasekera is scheduled to complete his term toward the end of 2026, the CC would have to call applications soon to choose the successor.
Goonasekara received his appointment from President Ranil Wickremesinghe in January 2024. A Justice W. M. N. P. Iddawala was appointed Chairman of the CIABOC. The other commissioner is K. Bernard Rajapakse.
Asked whether Iddawala and Rajapakse, too, would complete their terms soon, sources said that in terms of the Anti-Corruption Act No 09 of 2023, the Chairman of CIABOC would hold office for a period of five years, second commissioner (K. Bernard Rajapakse) for four years and the third commissioner (Chethiya Goonasekara) for a period of three years.
Sources said that the Opposition as well as civil society representatives in the CC should take up the issue of Speaker facing an investigation by the CIABOC taking part in the forthcoming selection process. Responding to queries, sources emphasized that the issue was whether in terms of Section 107 of the Anti-Corruption Act the participation of the Speaker in the selection process amounted to a violation of the Act itself.
The current members of the CC are Dr Jagath Wickramaratne, Speaker and Chairman of the Constitutional Council, Dr. Harini Amarasuriya, Prime Minister, Sajith Premadasa, Leader of the Opposition, Bimal Rathnayake, MP, Aboobucker Athambawa, MP, Ajith P. Perera, MP, Sivagnanam Shritharan, MP, Austin Fernando, Civil society representative, Prof. Wasantha Seneviratne, Civil society representative and Ranjith Ariyaratne, Civil society representative.
Sources pointed out that in spite of the sensitivity of the case, the CIABOC recorded Kularatne’s statement in the second week of August, six months after he lodged the complaint.
The CIABOC on 3, 8 and 10 Sept recorded the statements from the Transport Officer, Deputy Director, Administration and Assistant Director, Finance regarding the use of facilities by the Speaker, those assigned to his staff and other relevant matters.
The NPP named Dr. Wickramaratne as the Speaker after Asoka Ranwala resigned over controversy regarding his higher education qualifications.
SJB lawmaker Dayasiri Jayaskera has repeatedly raised the issues concerning the Speaker with the focus also on the Speaker using two government-managed residences, relevant staff in addition to expenditure on food, transport and fuel provided to the Speaker’s private secretary.
Political sources said that trouble erupted after the Parliamentary Staff Advisory Council in late January sacked Kularatne accusing him of providing false information to secure his appointment. Before being appointed as the Deputy Secretary-General of Parliament in 2023, Kularatne held several high-ranking positions, including Secretary to the Chief Government Whip, Additional Secretary to the President, Additional Secretary to the Prime Minister, and Additional Secretary to the Leader of the Opposition.
The SJB declared in Parliament that Ranwala should be brought back as the Speaker as they have no faith in Wickramaratne. MP Mujibur Rahuman jokingly told parliament that the Opposition wouldn’t raise Ranwala’s educational qualifications.
News
GMOA: Countrywide cadre revision not done since 2015
The Government Medical Officers’ Association (GMOA) has stressed the need to conduct a comprehensive countrywide cadre revision urgently.
GMOA spokesman Dr. Lasitha Dhammika told The Island that the failure on the part of successive governments to conduct cadre revision caused the deterioration of the public sector health services. Due to the absence of required statistics, they hadn’t been able to fully comprehend the situation on the ground and to ascertain the requirements of the public.
Dr. Dhammika pointed out the expansion of the services without supporting statistics and the need to initiate an immediate cadre revision. According to him, the GMOA had raised this issue with successive governments without success. The GMOA spokesman said that they also sought relevant information from the Health Ministry in terms of the Right to Information (RTI) Act two weeks ago but was yet to receive response.
(SF)
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