by A. J. A. Abeynayake

The Bar Association of Sri Lanka (BASL), at a special meeting on Saturday unanimously decided that its President, Kaushalya Navaratne, PC, resign immediately, as recommended by a five-member committee that investigated allegations of senior BASL members breaching trust. The allegations involve the alleged misappropriation of approximately 19 million rupees out of 20 million rupees received for an anti-corruption initiative funded by the Japan International Cooperation Agency (JICA).

The meeting, which took place in the BASL headquarters auditorium, lasted more than two hours and the BASL members perused the recommendations in the report submitted by the committee appointed to inquire into matters related to the JICA-BASL programme (‘Data Collection Survey to Promote Transparent and Competitive Business Climate in Sri Lanka – Anti-Corruption Component’), chaired by Dr. Faisz Musthapha, PC.

The committee, comprising Dr. K. Kanag-Isvaran, PC, Ikram Mohamed, PC, Rienzie Arseculeratne, PC, and Geoffrey Alagaratnam, PC, submitted a 48-page report to the Bar Council. The report concluded that, given the circumstances of the contract, the obligations imposed on the BASL, and the substantial payments made to resource persons selected by Navaratne, it was his duty—as a representative in a position of trust—to ensure transparency, if not during the contract negotiations, then at least immediately afterward.

Additionally, the committee found that BASL Deputy President Nalinda Indatissa, PC, had failed to exercise meaningful oversight during the process. However, the Special Committee found no wrongdoing by Shavindra Fernando, PC, and two others, including Indatissa’s niece, who were paid as resource persons under the project.

The committee unanimously recommended the establishment of a financial manual to define clear procedures for documentation, financial management, and payments within the BASL. They identified procedural and reporting deficiencies that allowed the highlighted transactions to occur.

This recommendation made by the BASL office-bearers, who hold honorary positions of trust, is expected to help maintain the highest standards of transparency and integrity, particularly in financial matters.

Furthermore, the committee agreed that BASL members should not receive financial or other pecuniary benefits from BASL-related matters unless such benefits are specifically disclosed to and approved by the Executive Committee and the Bar Council. This requirement also applies to family members and individuals closely associated with BASL members.

The controversy began in May when a group of legal professionals, including 10 President’s Counsel and over 80 Attorneys-at-law, demanded a thorough investigation into the JICA project scandal. The group accused five BASL members, including President Kaushalya Navaratne, PC, of misappropriating funds allocated for the anti-corruption initiative funded by JICA. Reportedly, JICA had allocated Rs. 21 million for the project, with allegations suggesting that at least Rs. 19 million was misappropriated by the five accused.