News

Cabraal sets record straight on the debt burden left behind by Yahapalana regime and JVP claims

Published

5 years ago

2020/09/10

By Saman Indrajith

Sri Lanka’s success story of countering the COVID-19 crisis could have been a more effective and advantageous if not for the debilitation of the economy under the yahapalana regime, Parliament was told on Wednesday.

Winding up the debate at the time of the adjournment of the House, State Minister of Money and Capital Markets and State Enterprise Reforms Ajith Nivard Cabraal said that the performance of the previous government had weakened the economy as never before.

“There is a shortage of reserves and that has resulted in limiting our import options. We would have been able to do much better after overcoming the COVID-19 crisis if there had been enough reserves. The previous government also increased the debt burden. Debts stood at 71 percent of total GDP at the time they came to power. They increased it to 91 percent.

“We managed somehow. But we could have given more relief to the people. We could have made use of some opportunities on the economic front to boost the small and medium scale enterprises if there had been enough reserves.

“During our time we recorded a 6.5 per cent growth and an increase of GDP from 24 billion US dollars to 79 billion US dollars. Inflation shot up causing suffering to the people due to the collapse of the economy under the previous government.

“Now, we are planning to get the national economy back on the track by 2021. You can get an idea of the current situation from the Central Bank 2019 annual report before you understand the challenge before us. We have to rebuild the economy and help the public. It is a big challenge but we are not afraid because we are sure that we can turn the tide; we have the expertise to do. We’ll fast-track the development process. We are introducing some tools to attract foreign direct investments”, Cabraal said.

The State Minister said that he would not take the predictions of the Opposition Leader seriously as the latter had a record of making wrong predictions. “I remember that he was shouting in 2007 and 2008 that the economy would collapse any time. That did not happen.”

Responding to JVP leader Anura Kumara Dissanayake’s allegations that the economy had suffered a loss by investing in Greek bonds while he was the Governor of the Central Bank, the Minister said: “That is a topic they keep harping on while the rest of the world has moved ahead. I have explained this in my book ‘The Great Bond Scam’ in detail. There on Page 313 this matter has been dealt with in detail. Then there is a judgment by a three-judge bench of the Supreme Court presided by Chief Justice K Sripavan. It has put all these allegation to rest. The MPs who come here to talk should do their homework. I do not know whether they deliberately hide facts to mislead the public. There is one such example, it was stated in this House today that our decision to invest EPF monies was wrong because we suffered a 3,071- million-rupee loss. The Opposition however did not say that while the loss was standing at that amount for some loss making shares, we had earned a Rs 17,577 million profit. In 2011, the capital profit from EPF investment was at Rs. 2,678 million. In 2012 it increased to Rs. 3,016 million in 2013 and Rs. 3,339 million. In 2014, the profit rose to Rs. 5,544 million. I table a copy of my book because it has answers to some questions the MPs raised though they have passed their shelf life. The matter of a forensic audit has been raised. I have explained that on page 149 of this book.”

Referring to the contribution made by the JVP to the national economy, the state minister read out a list of damages and destruction attributed to the Marxist party during its second insurrection in the period of terror from 1989-90. “They destroyed 684 post offices, 13 telecommunications centers, 550 buses, 75 tea factories, 40 estate bungalows, 130 CEB transformers, 12 trains and six railway stations. The total loss by those actions has been estimated at Rs. 55 billion rupees.”

Cabraal said that while he was the Governor of the Central Bank he had heard of the same allegations being made in the House but he could not respond as an official. “Today, I am a member of this House and I can respond to these wild allegations and inform the House the truth. I thank colleague member Prof Ranjith Bandara for moving this motion for debate,” the minister said.

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Rs 1. 3 bn yahapalana building deal under investigation

Published

20 hours ago

2025/12/12

Thilina Walpola

Jayasinghe building

Several ex-Cabinet ministers questioned; Ranil, Sajith, too likely to be summoned

The Commission to Investigate Allegations of Bribery or Corruption (CIABOC) has initiated an inquiry into the shifting of the Agriculture Ministry situated at Rajamalwatte, to a building belonging to the D. P. Jayasinghe Group of Companies, at Rajagiriya, during the Yahapalana government.

The building was rented for a five-year period at a cost of over Rs 1 bn by the yahapalana government within months after the then President Maithripala Sirisena declared opened the 10-storey building complex.

The CIABOC yesterday morning recorded former yahapalana minister Gayantha Karunatilleke’s statement in connection with the investigation. Later in the day, CIABOC recorded the statement of SJB General Secretary Ranjith Maddumabanadara. Earlier CIABOC summoned former ministers Thalatha Atukorale, Wajira Abeywardena and Lakshman Kiriella. At the time of the finalisation of the deal, KIriella was in the UNP.

Sources said that former PM and President Ranil Wickremesinghe, too, was likely to be questioned in this regard. Responding to The Island queries, sources pointed out even SJB leader Sajith Premadasa was expected to be questioned.

The then Speaker Karu Jayasuriya is on record as having said that the building was rented in keeping with a decision taken by the government and not Parliament.

The UNP-SLFP coalition shifted the Agriculture Ministry to accommodate 16 Sectoral Oversight Committees therein.

Although the government paid as much as Rs. 21.5 mn monthly rent to D.P.A. Jayasinghe Company, the Agriculture Ministry failed to move in for over a year. The then Agriculture Minister Duminda Dissanayake sought Cabinet approval on Dec 1, 2015 to rent the building.

According to inquiries conducted earlier by the Presidential Commission appointed to probe state sector corruption, the Agriculture Ministry sought Cabinet approval for a new building after the then Prime Minister Wickremesinghe submitted a cabinet proposal on 21 September, 2015, to use the Agriculture Ministry building for Parliament’s sectoral oversight committees.

PM Wickremesinghe’s Secretary Saman Ekanayake has told the Commission that public funds could have been saved if the several vacant floors of Suhurupaya belonging to the Defence Ministry had been made available to the Agriculture Ministry.

By Shamindra Ferdinando ✍️

News

SL Railways suffers staggering losses; more than 2/3 of rail tracks out of service

Published

20 hours ago

2025/12/12

Thilina Walpola

Army personnel engaged in repairing damaged railway tracks in the Boo Oya area. Cyclone Ditwah caused extensive damage to railway tracks in several parts of the country (pic courtesy Army)

Railway sources said that the damages caused to railway tracks could be more than USD 300 mn.

According to UNDP Rapid Crisis Assessment Sri Lanka’s railroad system, over 278 km of railways were exposed to cyclone-related flooding, including 35 railroad bridges nationwide. This figure reflects flooding only, but other hazards (such as localised debris, landslides, or damage to a single bridge) can also disrupt operations, meaning that even relatively small obstructions can render long stretches of railway non-operational. Like road exposure, railway exposure limits mobility and the capacity of affected populations to access key services and infrastructure.

At the level of divisional secretariats, Colombo and Thimbirigasyaya in Colombo District, Ja Ela in Gampaha District, as well as Mannar Town and Nanaddan in Mannar District all registered over 10 km of exposed railways each.

Commissioner-General of Essential Services B.K. Prabath Chandrakeerthi is on record as having said that only 478 kilometers of Sri Lanka’s 1,593-km railway network were currently usable following extensive damage caused by the recent cyclone.

News

US, SL advancing free, open, and resilient Indo-Pacific region: Embassy

Published

20 hours ago

2025/12/12

Thilina Walpola

Allison Hooker

Under Secretary of State for Political Affairs Allison Hooker arrived in Colombo yesterday (11) to underscore US interest in defence, trade and maritime security in line with their Indo-Pacific strategy.

The US embassy here issued the following statement: “Under Secretary Hooker will meet with Sri Lankan counterparts to discuss a wide range of bilateral issues, focused on deepening economic and commercial ties, strengthening defence cooperation, and supporting Sri Lanka’s economic and maritime sovereignty.

The United States and Sri Lanka share a strong and enduring partnership rooted in our mutual commitment to regional security, economic growth, and prosperity for our peoples. Through close cooperation on defence, trade, and maritime security, we are working together to advance a free, open, and resilient Indo-Pacific region.

As we continue to build on our strategic partnership, the United States also stands with the people of Sri Lanka as they respond to the devastating impacts of Cyclone Ditwah. We remain committed to working together to address both immediate challenges and long-term opportunities for our two nations, reflecting our ongoing commitment to the U.S.-Sri Lanka partnership.”