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TISL demands accountability in proposed mineral sands mining project in Puttalam

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Transparency International Sri Lanka (TISL) filed a complaint with the Human Rights Commission of Sri Lanka (HRCSL) on July 19th, requesting an investigation into the alleged corruption, malfeasance and abuse of power by the Sri Lanka Cement Corporation (SLCC) in a proposed mineral sands mining project in Puttalam. The HRCSL has requested a detailed report on the project from the SLCC, in response to the formal complaint filed by TISL.

The SLCC has entered into a 30-year agreement with a private limited company last year, for the extraction of mineral sands in the Aruwakkalu area. In its complaint, TISL refers to the allegations that the said agreement has been entered into without following standard procurement guidelines, competitive bidding, or obtaining necessary approvals from relevant authorities.

It is revealed that the said company, which is fully owned by a single individual, and which has a nominal share capital of Rs. 1,000, lacks technical qualifications and experience in the minerals sector. The lack of transparency regarding this project raises concerns of unequal treatment and corruption risks, and thereby, amounts to a violation of the fundamental rights of the people of Sri Lanka, TISL has mentioned in its complaint.

TISL is reliably informed that a company named Puttalam Ilmenite Ltd. (PIL) had conducted systematic exploration in this location for almost a decade, under a license issued by the Geological Survey and Mines Bureau (GSMB). TISL is also informed that in line with the 1992 Mines and Minerals Act, PIL had legitimate expectations of securing the exclusive right to proceed to commercialization.

Therefore, it appears that SLCC may have undermined the role of the GSMB as the regulatory authority in relation to minerals, given that there is a distinction between land rights and mineral rights. In addition, the controversial project site has already been leased out to Siam City Cement Lanka (Pvt.) Ltd. for 50 years in 1993.

PIL also claims that it was planning to bring in the largest Foreign Direct Investment (FDI) ever into the minerals processing sector in Sri Lanka, with the approval by the Board of Investments (BOI). PIL’s value-added processing would generate foreign currency earnings of $100 Million USD annually via sales to a Fortune 500 group customer, who is also an investor in the project. In addition, PIL claims that this investment would introduce new industrial technologies to Sri Lanka to enable the processing of low-grade inland minerals, whilst adopting international best practice in safety and sustainability. PIL forecasts the creation of up to 400+ jobs, and the development of technical skills in rural Eluwankulam and Puttalam.

Therefore, due to the agreement between the SLCC and the said company, the country has lost an estimated $300 Million USD of desperately needed foreign currency earnings over the past years, in addition to royalties and taxes. There is also the loss opportunity of export diversification. In addition, this context will erode investor confidence in apex project approving entities such as the BOI and GSMB.

TISL stresses that the alleged disregard of procurement guidelines and violation of due process by administrative bodies have far-reaching negative consequences on the country’s natural resources, economy and the people.

Therefore, TISL urges the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) to use its powers and initiate a comprehensive investigation on the matter in the public interest. TISL also calls upon the Government to take steps to uphold transparency and accountability in this critical, mineral sands mining project and act in the best interest of the Sri Lankan people.



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Sangha reform drives stymied from within: CBK

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Chandrika

Former President Chandrika Bandaranaike Kumaratunga has called for a comprehensive reform programme within Sri Lanka’s Buddhist clergy, warning that repeated efforts to strengthen the Sasana have in the past been derailed by opposition from within sections of the Sangha itself.

In a statement addressed to the Mahanayake Theras of the three Buddhist chapters, Kumaratunga stressed that the long-term preservation of Buddhism depends on safeguarding both the Dhamma and Vinaya, or disciplinary code, and urged urgent internal reform to address what she described as deep-rooted structural weaknesses.

She noted that Buddhist history has consistently demonstrated that periods of institutional crisis were addressed through reform processes, citing precedents from the First Buddhist Council to reforms during the Kandyan era under Welivita Sri Saranankara Thera.

Referring to post-independence efforts, Kumaratunga said initiatives taken during the 1956 Bandaranaike administration to strengthen Buddhism were left incomplete following the assassination of former Prime Minister S.W.R.D. Bandaranaike.

She further stated that during her own presidency, plans to convene a Buddhist Council under the guidance of the late Madihe Pannasiha Mahanayake Thera had received government backing but were ultimately abandoned due to resistance from certain sections within the clergy.

The former President alleged that, on both occasions, vested interests benefiting from existing weaknesses within the Buddhist establishment had worked to obstruct meaningful reform efforts.

Warning that Buddhism in Sri Lanka is currently facing serious challenges, she called for a broad internal dialogue within the Sangha to identify root causes and implement both short- and long-term corrective measures.

Kumaratunga urged the Mahanayake Theras to take the lead in convening a Dharma Sanghayana, or Buddhist Council, and said she was prepared to work with senior lay Buddhist leaders to support such an initiative.

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Court orders arrest of Basil

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The Colombo Fort Magistrate’s Court on Friday ordered the arrest of former Minister Basil Rajapaksa, Tourism Promotion Bureau Chairman Bhashwara Gunaratne, Managing Director Rumi Jauffer and several others over the alleged misuse of Rs. 7.8 million belonging to the Tourism Promotion Authority during the 2014 Uva Provincial Council election campaign.

Magistrate Pasan Amarasena directed the Criminal Investigation Department (CID) to arrest and produce the suspects before court, after it was informed that they would be named under the Public Property Act on the advice of the Attorney General.

The CID told court that attempts to take the suspects into custody from their residences had been unsuccessful as they were not present.

The Magistrate also imposed an overseas travel ban on the suspects and ordered that the Controller of Immigration and Emigration be notified.

Investigations have reportedly revealed that the funds were used to print 12,000 T-shirts bearing an image of former President Mahinda Rajapaksa on one side and the name of a political party on the other.

According to the CID, the T-shirts were later distributed at a political event held in the Monaragala District.

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Dayasiri raises alarm over ‘coal cartel’, flags national security risks

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Dayasiri

Kurunegala District SJB MP Dayasiri Jayasekera last week lodged a detailed submission before the Special Presidential Commission probing coal imports, alleging that Sri Lanka’s power sector is being exposed to serious national security risks due to irregularities, collusion and sanctions-related vulnerabilities in the coal procurement process for the Norochcholai Lakvijaya Power Plant.

In a dossier submitted last week, the MP called for a comprehensive investigation into the ongoing 2026/2027 tender for 2.28 million metric tonnes of coal, warning that the awarding of contracts to certain bidders could jeopardise the stability of the country’s electricity supply and trigger risks reminiscent of the 2022 power crisis.

The Lakvijaya Power Plant, Sri Lanka’s largest coal-fired power station, contributes nearly 40 percent of the national electricity generation.

Jayasekera alleged that the procurement process has been compromised by what he described as a “network of disreputable international commodity traders” and urged the Commission to examine patterns of alleged corruption, collusion and sanctions circumvention linked to coal supply chains.

Among the companies flagged in his submission was Potencia LLC-FZ, which he claimed is involved in ongoing legal proceedings against the Lanka Coal Company (LCC) while simultaneously participating in the current tender process. The MP questioned the propriety of such participation and further warned that the company’s alleged links to Russian supply networks could expose Sri Lanka to secondary sanctions risks, potentially affecting letters of credit, shipping arrangements and marine insurance coverage.

Jayasekera also called for the immediate exclusion of Taranjot Resources from the tender, citing its reported suspension by India’s state-owned NTPC Limited since March 2024. He further alleged that the company has a track record of supplying coal with sub-standard calorific value in previous shipments, which he said had contributed to operational disruptions in power generation.

Raising further concerns over possible bid rigging, the MP pointed to what he described as corporate interlinkages between Mohit Minerals and Taranjot Resources through a common associated entity, Trona Minerals. According to his submission, shared directorships and corporate overlaps suggested coordinated participation in the tender process, which he claimed could amount to a breach of national procurement guidelines.

The dossier also referred to several other international suppliers, raising concerns over their past records. These included allegations relating to shipping practices, arbitration disputes, quality certification issues and exposure to sanctioned supply chains. The MP cited instances involving alleged “dark shipping” practices, quality disputes in past deliveries, and contractual disputes that had led to arbitration proceedings in international forums.

Jayasekera also urged the Commission to revisit the Trident Chemphar coal procurement controversy of 2025/2026, alleging that a contract had been signed prior to obtaining Attorney General clearance. He claimed the episode had resulted in significant shortfalls in power generation, estimating a loss of around 250 gigawatt-hours.

Describing the matter as one of “national security rather than a commercial dispute”, the MP warned that any compromise in coal procurement could destabilise the country’s power supply, particularly at a time when Sri Lanka remains under an IMF-supported economic reform programme.

He urged the Commission to take a firm stance on procurement integrity and ensure that only credible and compliant suppliers are considered in future tenders.

The Commission is expected to examine the submissions as part of its wider inquiry into coal procurement practices dating back to 2009.

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