The failure on the part of the Janatha Vimukthi Peramuna (JVP)-led National People’s Power (NPP) government to fulfil a plethora of promises given in the run up to the last presidential election, in September, 2024, and a series of incidents, including cases of corruption, and embarrassing failure to act on a specific weather alert, ahead of Cyclone Ditwah, had undermined the administration beyond measure.

Ditwah dealt a knockout blow to the arrogant and cocky NPP. If the ruling party consented to the Opposition proposal for a Parliamentary Select Committee (PSC) to probe the events leading to the November 27 cyclone, the disclosure would be catastrophic, even for the all-powerful Executive President Anura Kumara Dissanayake, as responsible government bodies, like the Disaster Management Centre that horribly failed in its duty, and the Met Department that alerted about the developing storm, but the government did not heed its timely warnings, directly come under his purview.

The NPP is on the back foot and struggling to cope up with the rapidly developing situation. In spite of having both executive presidency and an overwhelming 2/3 majority in Parliament, the government seems to be weak and in total disarray.

The regular appearance of President Dissanayake in Parliament, who usually respond deftly to criticism, thereby defending his parliamentary group, obviously failed to make an impression. Overall, the top NPP leadership appeared to have caused irreparable damage to the NPP and taken the shine out of two glorious electoral victories at the last presidential and parliamentary polls held in September and November 2024 respectively.

The NPP has deteriorated, both in and out of Parliament. The performance of the 159-member NPP parliamentary group, led by Prime Minister Dr. Harini Amarasuriya, doesn’t reflect the actual situation on the ground or the developing political environment.

Having repeatedly boasted of its commitment to bring about good governance and accountability, the current dispensation proved in style that it is definitely not different from the previous lots or even worse. (The recent arrest of a policeman who claimed of being assaulted by a gang, led by an NPP MP, emphasised that so-called system change is nothing but a farce) In the run-up to the November, 2024, parliamentary polls, President Dissanayake, who is the leader of both the JVP and NPP, declared that the House should be filled with only NPPers as other political parties were corrupt. Dissanayake cited the Parliament defeating the no-confidence motions filed against Ravi Karunanayake (2016/over Treasury Bond scams) and Keheliya Rambukwella (2023/against health sector corruption) to promote his argument. However, recently the ongoing controversy over patient deaths, allegedly blamed on the administration of Ondansetron injections, exposed the government.

Mounting concerns over drug safety and regulatory oversight triggered strong calls from medical professionals, and trade unions, for the resignation of senior officials at the National Medicines Regulatory Authority (NMRA) and the State Pharmaceutical Corporation (SPC).

Medical and civil rights groups declared that the incident exposed deep systemic failures in Sri Lanka’s drug regulatory framework, with critics warning that the collapse of quality assurance mechanisms is placing patients’ lives at grave risk.

The Medical and Civil Rights Professional Association of Doctors (MCRPA), and allied trade unions, accused health authorities of gross negligence and demanded the immediate resignation of senior NMRA and SPC officials.

MCRPA President Dr. Chamal Sanjeewa is on record as having said that the Health Ministry, NMRA and SPC had collectively failed to ensure patient safety, citing, what he described as, a failed drug regulatory system.

The controversy has taken an unexpected turn with some alleging that the NPP government, on behalf of Sri Lanka and India, in April this year, entered into an agreement whereby the former agreed to lower quality/standards of medicine imports.

Trouble begins with Ranwala’s resignation

The NPP suffered a humiliating setback when its National List MP Asoka Ranwala had to resign from the post of Speaker on 13 December, 2024, following intense controversy over his educational qualification. The petroleum sector trade union leader served as the Speaker for a period of three weeks and his resignation shook the party. Ranwala, first time entrant to Parliament was one of the 18 NPP National List appointees out of a total of 29. The Parliament consists of 196 elected and 29 appointed members. Since the introduction of the National List, in 1989, there had never been an occasion where one party secured 18 slots.

The JVP/NPP made an initial bid to defend Ranwala but quickly gave it up and got him to resign amidst media furor. Ranwala dominated the social media as political rivals exploited the controversy over his claimed doctorate from the Waseda University of Japan, which he has failed to prove to this day. But, the JVP/NPP had to suffer a second time as a result of Ranwala’s antics when he caused injuries to three persons, including a child, on 11 December, in the Sapugaskanda police area.

The NPP made a pathetic, UNP and SLFP style effort to save the parliamentarian by blaming the Sapugaskanda police for not promptly subjecting him for a drunk driving test. The declaration made by the Government Analyst Department that the parliamentarian hadn’t been drunk at the time of the accident, several days after the accident, does not make any difference. Having experienced the wrongdoing of successive previous governments, the public, regardless of what various interested parties propagated on social media, realise that the government is making a disgraceful bid to cover-up.

No less a person than President Dissanayake is on record as having said that their members do not consume liquor. Let us wait for the outcome of the internal investigation into the lapses on the part of the Sapugaskanda police with regard to the accident that happened near Denimulla Junction, in Sapugaskanda.

JVP/NPP bigwigs obviously hadn’t learnt from the Weligama W 15 hotel attack in December, 2023, that ruined President Ranil Wickremeinghe’s administration. That incident exposed the direct nexus between the government and the police in carrying out Mafia-style operations. Although the two incidents cannot be compared as the circumstances differ, there is a similarity. Initially, police headquarters represented the interests of the wrongdoers, while President Wickremesinghe bent over backwards to retain the man who dispatched the CCD (Colombo Crime Division) team to Weligama, as the IGP. The UNP leader went to the extent of speaking to Chief Justice Jayantha Jayasuriya, PC, and Speaker Mahinda Yapa Abeywardena to push his agenda. There is no dispute the then Public Security Minister Tiran Alles wanted Deshabandu Tennakoon as IGP, regardless of a spate of accusations against him, in addition to him being faulted by the Supreme Court in a high-profile fundamental rights application.

The JVP/NPP must have realised that though the Opposition remained disorganised and ineffective, thanks to the media, particularly social media, a case of transgression, if not addressed swiftly and properly, can develop into a crisis. Action taken by the government to protect Ranwala is a case in point. Government leaders must have heaved a sigh of relief as Ranwala is no longer the Speaker when he drove a jeep recklessly and collided with a motorcycle and a car.

Major cases, key developments

Instead of addressing public concerns, the government sought to suppress the truth by manipulating and exploiting developments

* The release of 323 containers from the Colombo Port, in January 2025, is a case in point. The issue at hand is whether the powers that be took advantage of the port congestion to clear ‘red-flagged’ containers.

Although the Customs repeatedly declared that they did nothing wrong and such releases were resorted even during Ranil Wickremesinghe’s presidency (July 2022 to September 2024), the public won’t buy that. Container issue remains a mystery. That controversy eroded public confidence in the NPP that vowed 100 percent transparency in all its dealings. But the way the current dispensation handled the Port congestion proved that transparency must be the last thing in the minds of the JVPers/NPPers holding office.

* The JVP/NPP’s much touted all-out anti-corruption stand suffered a debilitating blow over their failure to finalise the appointment of a new Auditor General. In spite of the Opposition, the civil society, and the media, vigorously taking up this issue, the government continued to hold up the appointment by irresponsibly pushing for an appointment acceptable to President Dissanayake. The JVP/NPP is certainly pursuing a strategy contrary to what it preached while in the Opposition and found fault with successive governments for trying to manipulate the AG. It would be pertinent to mention that President Dissanayake should accept the responsibility for the inordinate delay in proposing a suitable person to that position. The government failed to get the approval of the Constitutional Council more than once to install a favourite of theirs in it, thanks to the forthright position taken by its civil society representatives.

The government should be ashamed of its disgraceful effort to bring the Office of the Auditor General under its thumb:

* The JVP/NPP government’s hotly disputed decision to procure 1,775 brand-new double cab pickup trucks, at a staggering cost exceeding Rs. 12,500 mn, under controversial circumstances, exposed the duplicity of that party that painted all other political parties black. Would the government rethink the double cab deal, especially in the wake of economic ruination caused by Cyclone Ditwah? The top leadership seems to be determined to proceed with their original plans, regardless of immeasurable losses caused by Cyclone Ditwah. Post-cyclone efforts still remain at a nascent stage with the government putting on a brave face. The top leadership has turned a blind eye to the overwhelming challenge in getting the country back on track especially against the backdrop of its agreement with the IMF.

Post-Cyclone Ditwah recovery process is going to be slow and extremely painful. Unfortunately, both the government and the Opposition are hell-bent on exploiting the miserable conditions experienced by its hapless victims. The government is yet to acknowledge that it could have faced the crisis much better if it acted on the warning issued by Met Department Chief Athula Karunanayake on 12 November, two weeks before the cyclone struck.

Foreign policy dilemma

Sri Lanka moved further closer to India and the US this year as President Dissanayake entered into several new agreements with them. In spite of criticism, seven Memorandums of Understanding (MoUs), including one on defence, remains confidential. What are they hiding?

Within weeks after signing of the seven MoUs, India bought the controlling interests in the Colombo Dockyard Limited for USD 52 mn.

Although some Opposition members, representing the SJB, raised the issue, their leader Sajith Premadasa, during a subsequent visit to New Delhi, indicated he wouldn’t, under any circumstances, raise such a contentious issue.

Premadasa went a step further. The SJB leader assured his unwavering commitment to the full implementation of the 13th Amendment to the Constitution that was forced on Sri Lanka during President JRJ’s administration, under the highly questionable Indo-Lanka Accord of July, 1987, after the infamous parippu drop by Indian military aircraft over Jaffna, their version of the old gunboat diplomacy practiced by the West.

Both India and the US consolidated their position here further in the post-Aragalaya period. Those who felt that the JVP would be in a collision course with them must have been quite surprised by the turn of events and the way post-Aragalaya Sri Lanka leaned towards the US-India combine with not a hum from our carboard revolutionaries now installed in power. They certainly know which side of the bread is buttered. Sri Lanka’s economic deterioration, and the 2023 agreement with the IMF, had tied up the country with the US-led bloc.

In spite of India still procuring large quantities of Russian crude oil and its refusal to condemn Russia over the conflict in Ukraine, New Delhi has obviously reached consensus with the US on a long-term partnership to meet the formidable Chinese challenge. Both countries feel each other’s support is incalculably vital and indispensable.

Sri Lanka, India, and Japan, in May 2019, signed a Memorandum of Cooperation (MoC) to jointly develop the East Container Terminal (ECT) at the Colombo Port. That was during the tail end of the Yahapalana administration. The Gotabaya Rajapaksa administration wanted to take that project forward. But trade unions, spearheaded by the JVP/NPP combine, thwarted a tripartite agreement on the basis that they opposed privatisation of the Colombo Port at any level.

But, the Colombo West International Terminal (CWIT) project, that was launched in November, 2022, during Ranil Wickremesinghe’s presidency, became fully operational in April this year. The JVP revolutionary tiger has completely changed its stripes regarding foreign investments and privatisation. If the JVP remained committed to its previous strategies, India taking over CDL or CWIT would have been unrealistic.

The failure on the part of the government to reveal its stand on visits by foreign research vessels to ports here underscored the intensity of US and Indian pressure. Hope our readers remember how US and India compelled the then President Wickremesinghe to announce a one-year moratorium on such visits. In line with that decision Sri Lanka declared research vessels wouldn’t be allowed here during 2024. The NPP that succeeded Wickremesinghe’s administration in September, 2024, is yet to take a decision on foreign research vessels. What a pity?

The NPP ends the year on the back foot, struggling to cope up with daunting challenges, both domestic and external. The recent revelation of direct Indian intervention in the 2022 regime change project here along with the US underscored the gravity of the situation and developing challenges. Post-cyclone period will facilitate further Indian and US interventions for obvious reasons.

****

Perhaps one of the most debated events in 2025 was the opening of ‘City of Dreams Sri Lanka’ that included, what the investors called, a world-class casino. In spite of mega Bollywood star Shah Rukh Khan’s unexpected decision to pull out of the grand opening on 02 August, the investors went ahead with the restricted event. The Chief Guest was President Anura Kumara Dissanayake, who is also the Finance Minister, in addition to being the Defence Minister. Among the other notable invitees were Dissanayake’s predecessor Ranil Wickremesinghe, whose administration gave critical support to the high-profile project, worth over USD 1.2 bn. John Keells Holdings PLC (JKH) and Melco Resorts & Entertainment (Melco) invested in the project that also consist of the luxurious Nüwa hotel and a premium shopping mall. Who would have thought President Dissanayake’s participation, even remotely, possible, against the backdrop of his strong past public opposition to gambling of any kind?

Don’t forget ‘City of Dreams’ received a license to operate for a period of 20 years. Definitely an unprecedented situation. Although that license had been issued by the Wickremesinghe administration, the NPP, or any other political party represented in Parliament, didn’t speak publicly about that matter. Interesting, isn’t it, coming from people, still referred by influential sections of the Western media, as avowed Marxists?

By Shamindra Ferdinando

Power comes like a demonic spell,

To restless humans constantly in chains,

And unless kept under a tight leash,

It drives them from one ill deed to another,

And among the legacies they thus deride,

Are those timeless truths lucidly proclaimed,

By prophets, sages and scribes down the ages,

Hailing from Bethlehem, Athens, Isipathana,

And other such places of hallowed renown,

Thus plunging themselves into darker despair.

By Lynn Ockersz

The Navy ceremonially occupied its new Headquarters (Block No. 3) at the Defence Headquarters Complex (DHQC) at Akuregoda, Battaramulla, on 09 December, 2025. On the invitation of the Commander of the Navy, Vice Admiral Kanchana Banagoda, the Deputy Minister of Defence, Major General Aruna Jayasekara (Retd) attended the event as the Chief Guest.

Among those present were Admiral of the Fleet Wasantha Karannagoda, the Defence Secretary, Air Vice Marshal Sampath Thuyacontha (Retd), Commander of the Army, Lieutenant General Lasantha Rodrigo, Commander of the Air Force, Air Marshal Bandu Edirisinghe, Inspector General of Police, Attorney-at-Law Priyantha Weerasooriya and former Navy Commanders.

With the relocation of the Navy at DHQC, the much-valued project to shift the Ministry of Defence (MoD) and Headquarters of the war-winning armed forces has been brought to a successful conclusion. The Army was the first to move in (November 2019), the MoD (May 2021), the Air Force (January 2024) and finally the Navy (in December 2025).

It would be pertinent to mention that the shifting of MoD to DHQC coincided with the 12th anniversary of bringing back the entire Northern and Eastern Provinces under the government, on 18 May, 2009. LTTE leader Velupillai Prabhakaran was killed on the following day.

The project that was launched in March 2011, two years after the eradication of the Liberation Tigers of Tamil Eelam (LTTE), suffered a severe setback, following the change of government in 2015. The utterly irresponsible and treacherous Yahapalana government halted the project. That administration transferred funds, allocated for it, to the Treasury, in the wake of massive Treasury bond scams perpetrated in February and March 2015, within weeks after the presidential election.

Maithripala Sirisena, in his capacity as the President, as well as the Minister of Defence, declared open the new Army Headquarters, at DHQC, a week before the 2019 presidential election. Built at a cost of Rs 53.3 bn, DHQC is widely believed to be the largest single construction project in the country. At the time of the relocation of the Army, the then Lt. Gen. Shavendra Silva, the former Commanding Officer of the celebrated Task Force I/58 Division, served as the Commander.

Who made the DHQC a reality? Although most government departments, ministries and armed forces headquarters, were located in Colombo, under the Colombo Master Plan of 1979, all were required to be moved to Sri Jayewardenepura, Kotte. However successive administrations couldn’t go ahead with the massive task primarily due to the conflict. DHQC would never have been a reality if not for wartime Defence Secretary Gotabaya Rajapaksa who determinedly pursued the high-profile project.

The absence of any reference to the origins of the project, as well as the significant role played by Gotabaya Rajapaksa at the just relocated Navy headquarters, prompted the writer to examine the developments related to the DHQC. The shifting of MoD, along with the Armed Forces Headquarters, was a monumental decision taken by Mahinda Rajapaksas’s government. But, all along it had been Gotabaya Rajapaksa’s determination to achieve that monumental task that displeased some within the administration, but the then Defence Secretary, a former frontline combat officer of the battle proved Gajaba Regiment, was not the type to back down or alter his strategy.

GR’s maiden official visit to DHQC

Gotabaya Rajapaksa, who made DHQC a reality, visited the sprawling building in his capacity as the President, Defence Minister and the Commander-in-Chief of the Armed Forces on the morning of 03 August, 2021. It was Gotabaya Rajapaksa’s maiden official visit to the Army Headquarters, located within the then partially completed DHQC, eight months before the eruption of the externally backed ‘Aragalaya.’ The US-Indian joint project has been exposed and post-Aragalaya developments cannot be examined without taking into consideration the role played by political parties, the Bar Association of Sri Lanka, media, as well as the weak response of the political leadership and the armed forces. Let me stress that a comprehensive probe should cover the period beginning with the Swiss project to humiliate President Gotabaya Rajapaka in November, 2019, by staging a fake abduction, and the storming of the President’s House in July 2022. How could Sri Lanka forget the despicable Swiss allegation of sexual harassment of a female local employee by government personnel, a claim proved to be a blatant lie meant to cause embarrassment to the newly elected administration..

Let me get back to the DHQC project. The war-winning Mahinda Rajapaksa government laid the foundation for the building project on 11 May, 2011, two years after Sri Lanka’s triumph over the separatist Tamil terrorist movement. The high-profile project, on a 77-acre land, at Akuregoda, Pelawatta, was meant to bring the Army, Navy, and the Air Force headquarters, and the Defence Ministry, to one location.

President Gotabaya Rajapaksa’s visit to Akuregoda would have definitely taken place much earlier, under a very different environment, if not for the eruption of the Covid-19 pandemic, just a few months after his victory at the November 2019 election. The worst post-World War II crisis that had caused devastating losses to national economies, the world over, and delivered a staggering blow to Sri Lanka, heavily dependent on tourism, garment exports and remittances by its expatriate workers.

On his arrival at the new Army headquarters, President Gotabaya Rajapaksa was welcomed by General Shavendra Silva, who also served as the Chief of Defence Staff. Thanks to the President’s predecessor, Maithripala Sirisena, the then Maj. Gen Shavendra Silva was promoted to the rank of Lt. Gen and appointed the Commander of the Army on 18 August, 2019, just three months before the presidential poll. The appointment was made in spite of strong opposition from the UNP leadership and US criticism.

President Gotabaya Rajapaksa hadn’t minced his words when he publicly acknowledged the catastrophe caused by the plunging of the national income and the daunting challenge in debt repayment, amounting to as much as USD 4 bn annually.

The decision to shift the tri-forces headquarters and the Defence Ministry (The Defence Ministry situated within the Army Headquarters premises) caused a media furor with the then Opposition UNP alleging a massive rip-off. Defence Secretary Gotabaya Rajapaksa reiterated his commitment to the project. If not for the change of government in 2015, the DHQC would have been completed during Mahinda Rajapaksa’s third term if he was allowed to contest for a third term successfully. Had that happened, Gotabaya Rajapaksa wouldn’t have emerged as the then Opposition presidential candidate at the 2019 poll. The disastrous Yahapalana administration and the overall deterioration of all political parties, represented in Parliament, and the 19th A that barred Mahinda Rajapaksa from contesting the presidential election, beyond his two terms, created an environment conducive for Gotabaya Rajapaksa’s emergence as the newly registered SLPP’s candidate.

Shangri-La move

During the 2019 presidential election campaign, SLPP candidate Gotabaya Rajapaksa strongly defended his decision to vacate the Army Headquarters, during Mahinda Rajapaksa presidency, to pave the way for the Shangri-La Hotel in Colombo. Shangri-La was among the hotels targeted by the Easter Sunday bombers – the only location targeted by two of them, including mastermind Zahran Hashim.

President Gotabaya Rajapaksa is on record as having said that vacation of the site had been in accordance with first executive President J.R. Jayewardene’s decision to move key government buildings away from Colombo to the new Capital of the country at Sri Jaywardenepura. Gotabaya Rajapaksa said so in response to the writer’s queries years ago.

Gotabaya Rajapaksa said that a despicable attempt was being made to blame him for the Army Headquarters land transaction. “I have been accused of selling the Army Headquarters land to the Chinese.”

Rajapaksa explained that Taj Samudra, too, had been built on a section of the former Army Headquarters land, previously used to accommodate officers’ quarters and the Army rugger grounds. Although President Jayewardene had wanted the Army Headquarters shifted, successive governments couldn’t do that due to the war and lack of funds, he said.

President Maithripala Sirisena and Prime Minister Ranil Wickremesinghe declared open Shangri-La Colombo on 16 November, 2017. The Hong Kong-based Shangri-La Asia invited Gotabaya Rajapaksa for dinner, the following day, after the opening of its Colombo hotel. Shangri-La Chairperson, Kuok Hui Kwong, the daughter of Robert Kuok Khoon Ean, was there to welcome Gotabaya Rajapaksa, who had cleared the way for the post-war mega tourism investment project. Among those who had been invited were former President Mahinda Rajapaksa, former External Affairs Minister Prof. G.L. Peiris, former Presidential Secretary Lalith Weeratunga, and President’s Counsel Gamini Marapana, PC.

The Cabinet granted approval for the high-profile Shangri-La project in October 2010 and the ground-breaking ceremony was held in late February 2012.

Rajapaksa said that the Shangri-La proprietor, a Chinese, ran a big operation, based in Hong Kong, Malaysia and Singapore. Another parcel of land was given to the mega ITC hotel project, also during the previous Rajapaksa administration. ITC Ratnadipa, a super-luxury hotel by India’s ITC Hotels, officially opened in Colombo on April 25, 2024

Following the change of government in January 2015, the remaining section of the Army headquarters land, too, was handed over to Shangri-La.

Gotabaya Rajapaksa emphasised that the relocation of the headquarters of the Army, Navy, and Air Force, as well as the Defence Ministry, had been part of JRJ’s overall plan. The change of government, in January 2015, had caused a serious delay in completing the project and it was proceeding at a snail’s pace, Rajapaksa said. Even Parliament was shifted to Kotte in accordance with JRJ’s overall plan, Gotabaya Rajapaksa said, explaining his move to relocate all security forces’ headquarters and Defence Ministry into one complex at Akuregoda.

Acknowledging that the Army Headquarters had been there at Galle Face for six decades, Rajapaksa asserted that the Colombo headquarters wasn’t tactically positioned.

Rajapaksa blamed the inordinate delay in the completion of the Akuregoda complex on the Treasury taking hold of specific funds allocated for the project.

Over 5,000 military workforce

Gotabaya Rajapaksa’s maiden visit to DHQC on 3 August, 2021. General
Shavendra Silva is beside him

Major General Udaya Nanayakkara had been the first Director, Project Management Unit, with overall command of approximately 5,000 tri-forces personnel assigned to carry it out. The Shangri-La transaction provided the wherewithal to implement the DHQC project though the change of government caused a major setback. Nanayakkara, who had served as the Military Spokesman, during Eelam War IV, oversaw the military deployment, whereas private contractors handled specialised work such as piling, AC, fire protection and fire detection et al. The then MLO (Military Liaison Officer) at the Defence Ministry, Maj. Gen Palitha Fernando, had laid the foundation for the project and the work was going on smoothly when the Yahapalana administration withheld funds. Political intervention delayed the project and by September 2015, Nanayakkara was replaced by Maj Gen Mahinda Ambanpola, of the Engineer Service.

In spite of President Sirisena holding the Defence portfolio, he couldn’t prevent the top UNP leadership from interfering in the DHQC project. However, the Shangri-La project had the backing of A.J.M. Muzammil, the then UNP Mayor and one of the close confidants of UNP leader Ranil Wickremesinghe. Muzammil was among those present at the ground breaking ceremony for Shangri-La held on 24th February, 2012 ,with the participation of Minister Basil Rajapaksa.

Having identified the invaluable land, where the Army Headquarters and Defence Ministry were situated, for its project, Shangri-La made its move. Those who had been aware of Shangri-La’s plans were hesitant and certainly not confident of their success. They felt fearful of Defence Secretary Rajapaksa’s reaction.

But, following swift negotiations, they finalised the agreement on 28 December, 2010. Lt. Gen. Jagath Jayasuriya was the then Commander of the Army, with his predecessor General Fonseka in government custody after having been arrested within two weeks after the conclusion of the 2010 26 January Presidential poll.

Addressing the annual Viyathmaga Convention at Golden Rose Hotel, Boralesgamuwa, on 04 March, 2017, Gotabaya Rajapaksa, perhaps for the first time publicly discussed his role in the Shangri-La project. Declaring that Sri Lanka suffered for want of, what he called, a workable formula to achieve post-war development objectives, the war veteran stressed the pivotal importance of swift and bold decision-making.

Gotabaya Rajapaksa explained how the government had acted swiftly, and decisively, to attract foreign investments though some such efforts were not successful. There couldn’t be a better example than the government finalising an agreement with Shangri-La Hotels, he declared.

Declaring that the bureaucratic red tape shouldn’t in any way be allowed to undermine investments, Rajapaksa recalled the Chairman/CEO of Shangri-La Hotels and Resorts, Robert Kuok Khoon Ean, wanting the Army Headquarters land for his Colombo project. In fact, the hotels chain, at the time, had proposed to build hotels in Colombo, Hambantota and Batticaloa, and was one of the key investors wanting to exploit Sri Lanka’s success in defeating terrorism.

“Khoon-Ean’s request for the Army Headquarters land caused a serious problem for me. It was a serious challenge. How could I shift the headquarters of the war-winning Army? The Army had been there for six decades. It had been the nerve centre of the war effort for 30 years,” said Rajapaksa, who once commanded the First Battalion of the Gajaba Regiment (1GR)

Rajapaksa went on to explain how he exploited a decision taken by the first executive president J.R. Jayewardene to shift the Army Headquarters to Battaramulla, many years back. “Within two weeks, in consultation with the Secretary to the Finance Ministry, Dr. P.B. Jayasundera, and the Board of Investment, measures were taken to finalise the transaction. The project was launched to shift the Army, Navy and Air Force headquarters to Akuregoda, Pelawatte, in accordance with JRJ’s plan.”

The Hong Kong-based group announced the purchase of 10 acres of state land, in January 2011. Shangri-La Asia Limited announced plans to invest over USD 400 mn on the 30-storeyed star class hotel with 661 rooms.

The hotel is the second property in Sri Lanka for the leading Asian hospitality group, joining Shangri-La’s Hambantota Resort & Spa, which opened in June 2016.

Rajapaksa said that the top Shangri-La executive had referred to the finalisation of their Colombo agreement to highlight the friendly way the then administration handled the investment. Shangri-La had no qualms about recommending Sri Lanka as a place for investment, Rajapaksa said.

The writer explained the move to shift the Army Headquarters and the Defence Ministry from Colombo in a lead story headlined ‘Shangri-La to push MoD, Army Hq. out of Colombo city: Army Hospital expected to be converted into a museum’ (The Island, 04 January, 2011).

Yahapalana chaos

In the wake of the January 2015 change of government, the new leadership caused chaos with the suspension of the China-funded Port City Project, a little distance away from the Shangri-La venture. Many an eyebrow was raised when the then Finance Minister Ravi Karunanayake declared, in March, 2015, that funds wouldn’t be made available to the DHQC project until the exact cost estimation of the project could be clarified.

Media quoted Karunanayake as having said “Presently, this project seems like a bottomless pit and we need to know the depth of what we are getting into. From the current state of finances, allocated for this project, it seems as if they are building a complex that’s even bigger than the Pentagon!”

The insinuating declaration was made despite them having committed the blatant first Treasury bond scam in February 2015 that shook the Sirisena-Wickremesinghe administration to its core.

In June 2016, Cabinet spokesperson, Dr. Rajitha Senaratne, announced the suspension of the Akuregoda project. Citing financial irregularities and mismanagement of funds, Dr. Senaratne alleged that all Cabinet papers on the project had been prepared according to the whims and fancies of Gotabaya Rajapaksa.

The then Minister Karunanayake spearheaded the campaign against the DHQC project alleging, in the third week of January, 2015, that Rs 13.2 billion, in an account maintained at the Taprobane branch of the Bank of Ceylon had been transferred to the Consolidated Fund of the Treasury. The matter was being investigated as the account belonged to the Ministry of Defence, he added. The Finance Minister stressed that the MoD had no right to maintain such an account in violation of regulations and, therefore, the opening of the account was being investigated. The Minister alleged that several illegal transactions, including one involving Samurdhi, had come to light. He estimated the Samurdhi transaction (now under investigation) at Rs. 4 billion.

Having undermined Shangri-La and the DHQC projects, the UNP facilitated the expansion of the hotel project by releasing additional three and half acres on a 99-year lease. During the Yahapalana administration, Dayasiri Jayasekera disclosed at a post-Cabinet press briefing how the government leased three and a half acres of land at a rate of Rs. 13.1 mn per perch whereas the previous administration agreed to Rs 6.5 mn per perch. According to Jayasekera the previous government had leased 10 acres at a rate of Rs 9.5 mn (with taxes) per perch.

The bottom line is that DHQC was built with Shangri-La funds and the initiative was Gotabaya Rajapaksa’s whose role as rock solid wartime Secretary of Defence to keep security forces supplied with whatever their requirements could never be compared with any other official during the conflict.

By Shamindra Ferdinando