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Midweek Review

Developing economic crisis:Truth unravelled before COPE

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(From Left): Chief Financial Officer, Finance Ministry B.K.R. Balasooriya, Finance Secretary K.M. Mahinda Siriwardana, CBSL Governor Dr. Nandalal Weerasinghe and Deputy CBSL Governor T.M.J.Y.P. Fernando

By Shamindra Ferdinando

A COPE (Committee on Public Enterprises) meeting on May 25, chaired by Prof. Charitha Herath (SLPP National List), revealed the devastating truth about the utterly irresponsible public finance management that led to the ruination of the national economy.

A two-page press release in Sinhala issued by Janakantha Silva, Director Legislative Services and Acting Director of Communications, on the same day, disclosed how the incumbent dispensation caused the unprecedented meltdown.

But, the releasing of video footage of the entire meeting by the Parliament helped the public to clearly understand how the Finance Ministry, the Central Bank of Sri Lanka (CBSL), the Monetary Board, the then Presidential Secretary Dr. P.B. Jayasundera, the Cabinet of Ministers and the Parliament contributed to the debilitating economic-political and social crisis. The COPE meeting should attract Attorney General Sanjay Rajaratnam’s immediate attention. The Bar Association of Sri Lanka (BASL), too, cannot turn a blind eye to the shocking exposure of a seriously flawed public finance system and nothing but a negligent and incompetent Parliament.

During the proceedings, top Samagi Jana Balavegaya (SJB) member of the parliamentary watchdog committee, Dr. Harsha de Silva declared the appointment of ‘RW’ as the Finance Minister in addition to being the PM. When the former UNPer’s COPE colleagues raised eyebrows, Dr. de Silva quickly said: “Sorry. Mr. Ranil Wickremesinghe.’ A smiling Prof. Herath reminded that PM Wickremesinghe was Dr. de Silva’s former boss. The SJB’s economic guru de Silva functioned as State Minister for National Policies and Economic Affairs.

The then yahapalana premier held the Cabinet portfolios of those subjects. At the time the Treasury bond scams that had been blamed on Wickremesinghe and Company were perpetrated in Feb 2015 and March 2016, the CBSL functioned under the purview of Wickremesinghe’s ministry. So in actual fact Dr. Harsha de Silva, having been part of that yahapalana team that messed things up at the time in style, is in no position to take a ‘holier than thou stand’ now.

Similarly Champika Ranawaka, too, is under many a cloud. When he was the Power and Energy Minister, his bosom pal, then Chairman of the CEB, figured in the notorious Panama papers. So whose money had the then CEB Chairman Anura Wijepala banked in hidden accounts offshore?

Among those who had been at the meeting, summoned by the COPE, were Director General, Internal Audit, Finance Ministry Mrs. Deepika Colombage, Chief Financial Officer, Finance Ministry B.K.R. Balasooriya, Finance Secretary K.M. Mahinda Siriwardana, CBSL Governor Dr. Nandalal Weerasinghe, Deputy CBSL Governor T.M.J.Y.P. Fernando, Director General, Finance Ministry Hemal Kasthuriarachchi, Assistant Governor, CBSL Ananda Jayalath, Director, International Operations Department, CBSL Dr (Ms) D.S.T. Wanaguru, Monetary Board member Sanjiva Jayawardena, PC, Monetary Board member Dr. Ranee Jayamaha, Assistant Governor, K.M. A.N. Daulagala (Secretary to the Monetary Board), Assistant Governor, CBSL K.G.P. Sirikumara, Director, Economic Research, CBSL P.K.G. Harischandra, Director, Human Resources, CBSL A.M. Gunatilake, Director, Payment and Settlement Department, CBSL M.R. Wijewardena, Director, Legal and Compliance Department, CBSL Dr. (Mrs) A.A.I.N. Wickramasinghe , Director, Domestic Operations Department, CBSL Dr. R.A.A. Perera, Additional Director, Facilities Management Department, CBSL S.K.P. Vitharana, Additional Director, International Operations Department, CBSL S. Obeysekara, Chief Accountant, CBSL Mrs D.S.L. Sirimanne, Director, Department of Foreign Exchange Mrs. D.R. Karunaratne and Director, Department of non-bank financial institutions R.M.C.H.K. Jayasinghe.

Of them, only Governor Dr. Weerasinghe, Treasury Secretary Siriwardana and Monetary Board members Jayawardena and Jayamaha responded to the queries raised by the COPE. On behalf of the parliamentary watchdog, its Chairman Prof. Herath, Eran Wickremaratne (SJB), Rear Admiral (retd.) Sarath Weerasekera (SLPP), Rauff Hakeem (SLMC), Madura Vithana (SLPP), Jagath Pushpakumara (SLPP) and Premnath C. Dolawatta (SLPP) raised questions and also commented on the issues at hand. But, the day certainly belonged to SJB lawmakers, Patali Champika Ranawaka, who is also the leader of ’43 Brigade’ and Dr. Harsha de Silva.

At the onset of the proceedings, Prof. Herath, while underscoring the sensitive nature of the impending discussions, declared the 2018 and 2019 Auditor General’s reports on the CBSL were to be examined with the focus on the current status of the apex operation.

SJB MPs on the offensive

After Dr. Weerasinghe and Mahinda Siriwardana made their initial statements and responded to queries raised by Prof. Herath, lawmaker Ranawaka questioned the accountability on the part of the CBSL as well as the Monetary Board for the current crisis. The former minister Ranawaka emphasized that senior officials of both institutions couldn’t, under any circumstances, absolve themselves of the responsibility for bankrupting the country. The Colombo District MP didn’t mince his words when he declared that the top management officers of the CBSL were a handsomely remunerated lot whose culpability in the whole sorry state of affairs couldn’t be ignored.

Pointing out that the government has officially accepted Sri Lanka’s bankrupt status, MP Ranawaka compared how the financial meltdown finally led to street violence, including death of a lawmaker whereas senior CBSL and Monetary Board members who oversaw the ruination of the national economy seemed not to have attracted public attention.

The former JHU heavyweight Ranawaka posed several pertinent questions to those who had been summoned before the COPE regarding the role and conduct of the Secretary to the Treasury, CBSL and the Finance Ministry. Dr. de Silva, too, raised contentious issues at hand relating to the crisis, particularly how the SLPP handled the economy during the March/April 2020 to March 2022 period when CBSL Governor Ajith Nivard Cabraal suddenly resigned after having floated the Rupee. The much delayed decision to float the Rupee caused a catastrophe as it then immediately nosedived against the dollar and other major currencies.

Their relentless probing questions exposed an ugly truth. The shocking exposure of the then Prime Minister Mahinda Rajapaksa who handled the finance portfolio, the then Presidential Secretary Dr. P.B. Jayasundera, himself a former top Central Banker and ex-Treasury Secretary, Governors of the Central Bank Prof. W.D. Lakshman and Ajith Nivard Cabraal, Monetary Board member and Treasury Secretary S.R. Attygalle, the entire Cabinet-of-Ministers chaired by President Gotabaya Rajapaksa and the Parliament to varying degrees has sent shock waves through the political establishment.

COPE proceedings revealed how those who had been responsible for public wellbeing, both at ministerial and official level, simply allowed the situation to deteriorate to such an extent today the government lacked the wherewithal to meet basic requirements. They were most probably waiting for India and China, in rivalry, come to their rescue. The Indian help came but it was too late as the situation had snowballed in next to no time. As to why China dragged its feet might be due more to Rajapaksa sibling and duel citizen Basil increasingly sailing the Lankan ship towards the West, forgetting the fact that we achieved so much in the past thanks to China, including its unquestioning support to us in our fight to defeat LTTE terrorists.

Lawmakers Ranawaka and Dr. Silva pressed the Finance Secretary Siriwardana, Governor Weerasinghe and Monetary Board members on (1) massive tax cut implemented soon after the last presidential election in Nov 2019, contrary to the advice given by the IMF (2) the IMF’s refusal to grant RFI (Rapid Financing instrument) to Sri Lanka in March/April 2020 and (3) printing money (4) colossal losses suffered by the CBSL due to its refusal to float the Rupee.

Officials’ answers flabbergasted COPE. The Finance Ministry, CBSL and the Monetary Board had been mercilessly dominated by the SLPP and did nothing to change the extremely dangerous path the country was taking. The SLPP was hell-bent on continuing with its reckless strategy at whatever consequences.

Conduct of Monetary Board

The Monetary Board consists of five persons – two ex-officio members, Governor, Secretary to the Finance Ministry, and three nominated members. At the time of the issue at hand Prof. W.D. Lakshman and S.R. Attygalle had served on the Monetary Board and the latter as the Secretary to the Finance Ministry as well. The Monetary Board’s appointed members were President’s Counsel Sanjiva Jayawardena, Dr. Ranee Jayamaha (retired Central Bank Deputy Governor) and successful businessman Samantha Kumarasinghe, who put Sri Lanka on the world cosmetic manufacturing map through his Nature’s Secret line of products, which earned the ire of some multinational leaders in the field because of its resounding overnight success.

Dr. de Silva flayed the government over the appointment of Samantha Kumarasinghe, claiming he didn’t know the basics in economics. But SJB economic pundit was apparently not aware that Kumarasinghe has a MBA from the prestigious Harvard Business School like the late A.S. Jayawardena, who, with his Harvard MBA, went on to serve successfully as the country’s Central Bank Governor and Treasury Secretary during some of the most testing times for this country, especially during the Asian financial crisis of 1996 and the terrorist bombing of the Central Bank in 2001.

According to a statement, dated July 15, 2020, issued by the CBSL, Sanjeeva Jayawardena has been appointed with effect from Feb 26, 2020 and Dr Ranee Jayamaha and Samantha Kumarasinghe with effect from June 29,.2020. President Gotabaya Rajapaksa appointed them under section 8(2)(c) of the Monetary Law Act with the approval of the Constitutional Council.

MP de Silva questioned the suitability of Kumarasinghe on the basis of an article he published in the Lankadeepa in which the SJB heavyweight claimed the Monetary Board member expressed views very much contrary to basic economy theories.

Let me reproduce a CBSL statement issued on July 15, 2020 on Kumaasinghe’s appointment. The Island believes it would be fair by the former Monetary Board member.

The text of the CBSL statement: “Samantha Kumarasinghe currently serves as Chairman and Managing Director of several companies in Sri Lanka, Bangladesh and Vietnam that operate in industrial sectors across cosmetics, textile chemicals, household cleaning products, organic food and biological fertilisers.

He currently serves as a member of the Presidential Task Force for Economic Revival and Poverty Eradication (2020), President of Lanka Industry Forum for Empowerment (LIFE) (2018 to date) and Chairman of Cosmetics Sector Advisory Committee at the Ministry of Industries (2016 to date). He has also served in the capacities of member of Presidential Industrialisation Commission (from 2018 to 2019), a board member of the Insurance Board of Sri Lanka (2012 to 2014), a committee member of the Implementation of the Integrated Curriculum, Subjects and Review of Academic Activities Process of the Ministry of Education (2013) and as Commissioner of the Presidential Taxation Commission (2009 to 2010).

Kumarasinghe studied at Royal College, Colombo. He is a chemistry graduate of the University of Peradeniya and an alumnus of the Harvard Business School, USA. He started his entrepreneurial career in 1993 with just 12 employees and was adjudged ‘Entrepreneur of the Year’ in 2008. He was awarded a Presidential National Honours Award in 2019 for his valuable contribution to the country.”

Dr. Jayamaha strongly defended her conduct as a member of the Monetary Board and that of President’s Counsel Jayawardena. Commenting on calamitous decisions to fix the Rupee at 203 and refusal to engage the IMF, Dr. Jayamahaha alleged that Governor Lakshman, Finance Secretary Attygalle and nominated member Kumarasinghe pursued an agenda of their own. Dr. Jayamaha alleged that the Governor’s group always had the majority and therefore, they couldn’t have opposed. Dr. de Silva rejected Dr. Jayamaha’s stand.

The lawmaker insisted that all members of the Monetary Board were equally responsible for the current predicament. The MP suggested that Dr. Jayamaha and President’s Counsel Jayawardena should have gone public to deter the Governor and his colleagues.

SJ hits back

Sanjeeva Jayawardena quite clearly explained how he and Dr. Jayamaha took a common stand on touchy matters. Apropos Sri Lanka’s RFI request and related issues, Jayawardena revealed, beginning early 2020, they on nine different occasions, recommended/suggested engagement with the IMF. Jayawardena also explained their efforts to establish what he called an external debt monitoring mechanism. The President’s Counsel explained how Governor Cabraal acted, contrary too decision taken in respect of floating the Rupee at a proper forum. Jayawardena and Jayamaha have also warned against excessive money printing. Dr. de Silva asked for the minutes of the relevant meetings. The lawmaker reiterated that members of the Monetary Board bear equal responsibility for the current crisis.

One of the most controversial issues was the massive tax cut to the tune of Rs 600 bn implemented by the current dispensation. Treasury Secretary Mahinda Siriwardana asserted that the decision on the tax cut should have been reversed in the wake of the Covid-19 eruption. Dr. de Silva pushed Siriwardana on the issue at hand. The former UNPer asked Finance Secretary Mahinda Siriwardana to reveal the person who decided to implement the tax cut regardless of specific IMF advice at a time the lending agency called for debt restructuring in the wake of Colombo seeking RFI? The lawmaker also wanted the Finance Secretary to confirm whether the Finance Ministry conducted a survey before the controversial decision was made? Lawmaker de Silva asked who dropped the IMF recommendations to the dustbin. Finance Secretary side-stepped the issue in spite of lawmaker Ranawaka attacked the CBSL and the Finance Ministry on the same issue. The Finance Secretary struggled to cope up with the situation whereas Dr. Weerasinghe revealed how the tax cut was ordered. According to Dr. Weerasinghe, there hadn’t been any consultations at any level before they were informed of the disputed decision.

Earlier, Dr. Weerasinghe, in response to probing questions, acknowledged the circumstances Dr. PB Jayasundera decided not to engage the IMF regardless of the precarious economic outlook. Lawmaker Ranawaka repeatedly said that the crisis that had engulfed the country is far worse than the Treasury bond scams, 2019 Easter Sunday massacre or alleged war crimes.

Appearing before the COPE, as well as the Committee on Public Finance (COPF), headed by Anura Priyadarshana Yapa (SLPP) Dr. Weerasinghe last week acknowledged how the Finance Ministry misled the Parliament over the years. There hadn’t been a previous instance of a CBSL Chief going public with the truth. Dr. Weerasinghe told COPE how the Parliament allocated unavailable funds to various ministries on the basis of false estimates. That had been the norm as politicians and officials cooperated in a despicable way to deceive the public.

Dr. Weerasinghe also blamed such irresponsible practices for the current crisis. Perhaps, Dr. Weerasinghe should be especially commended for reminding the COPE of the responsibility of the Parliament in ensuring suitable appointments are made. The CBSL Chief dared to be forthright in his appearances before parliamentary watchdog committees thereby set up new standards in Sri Lanka’s utterly corrupt public services. However, the CBSL Chief, too, cannot exonerate himself of the responsibility for overall irresponsible conduct of the institution, as pointed out by Dr. de Silva in respect of the Monetary Board.



Midweek Review

Raid on ‘Millennium City’ DMI safe-house:

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Having served as the Commander of the Army, 2000 to 2004, during his 39-year career, Lionel Balagalle passed away in Oct. 2023. He is the founding father of military intelligence

A forgotten story (part 1)

Colombo High Court Judge Adithya Patabendi, on March 27, 2025, acquitted former ASP Kulasiri Udugampola, who had been indicted over the Kandy police raid on a safe house run by the Directorate of Military Intelligence (DMI) at the Millennium City housing complex, Athurugiriya. The raid, conducted in the first week of January 2002, sent shock waves through the defence establishment. Delivering the judgment, 23 years after the raid, Patabendi declared that the prosecution failed to prove the charges beyond a reasonable doubt.

The Dec. 5, 2001 parliamentary election was conducted at the height of the war in the North. Having gained the upper hand in the battlefield, the LTTE was working on a Ceasefire Agreement with Norway. The country was in turmoil with President Chandrika Bandaranaike Kumaratunga, who survived an LTTE suicide blast at the final rally of her Dec. 1999 presidential election campaign, struggling to overcome a sustained UNP offensive.

In the run-up to the Dec. 5, 2001 parliamentary polls, UNP leader, Ranil Wickremesinghe accused the Directorate of Military Intelligence (DMI) of planning to assassinate him. The UNPer claimed that the DMI was training Tamil terrorists at the Panaluwa Army Testing Range to mount an attack on his campaign bus, as well as his political rallies.

The unprecedented accusation placed the war-weary Army in an extremely embarrassing position when it was actually turning tables on the enemy using its own tactics in areas considered by then as being off limits for security forces. The UNP, with no shame, brazenly exploited the made-up threat as the main Opposition party and its allies, including a treacherous section of the media, stepped-up pressure on the Army to no end.

On the instructions of Wickremesinghe, UNP Chairman Charitha Ratwatte and Deputy Chairman Daya Palpola wrote a hard-hitting letter to Army Commander, Lt. Gen. Lionel Balagalle warning that he would be held responsible ‘in the event of an unfortunate incident’. The UNP duo accused the Army chief of training personnel to engage in a destabilisation campaign against the UNP.

An irate Army Commander, Lt. Gen. Balagalle in reply addressed a letter to Ratwatte and Palpola dismissing their accusations. The Island, in a front-page exclusive headlined ‘Army chief says no truth in UNP claims,’ in its Nov, 11, 2001 edition that revealed the exchange between Army headquarters and Sirikotha.

The report was based on what Lt. Gen. Balagalle had told this writer the previous evening. The Army chief, himself a one-time head of the Directorate of Military Intelligence (DMI), said that there was absolutely no basis for the UNP allegation that a hit squad was undergoing training in the use of high explosives and thermobaric weapons to attack Wickremesinghe.

The UNP ignored the Army chief’s letter. The allegation was repeated throughout the campaign. The raid on the DMI safe-house should be examined against the backdrop of the exchange between the Army commander and Sirikotha.

It was somewhat reminiscent of the JVP tactic to tarnish all others who had ruled the country since independence as being A Grade crooks to come to power with a record majority they couldn’t have even dreamt of knowing their sordid past. The trick was to repeat a lie long enough with the help of Western funded international and local NGO quislings and the gullible masses believed it.

Amidst a furore over the UNP allegation that the Army conspired to assassinate Wickremesinghe, Army operatives blew up a truck behind enemy lines killing five LTTE cadres on Dec. 11, 2001. Then again, they destroyed an LTTE bunker, at the entrance to a base used by Karuna, in the Kokkadicholai area, on Dec. 21, 2001.

Although the Army had conducted a successful small group operation in the Batticaloa District, targeting a key LTTE operative identified as David, way back in 1992, there was no attempt on the part of the military to develop the capability further. But some officers had been keen to promote small group operations to weaken the LTTE and beat it at its own game.

Commenting on the elimination of David, a veteran in clandestine operations told the writer of the deep penetrations ops: “Three personnel took part in the targeted killing of David. They returned to base after achieving the given task. Such operations caused chaos in enemy territory which gave us the psychological advantage over them. We knew of the importance as well as the need to strike within the enemy-controlled areas, though a special strategy on clandestine operations was adopted only in 2001, almost a decade after the hit on David.”

Speaking on condition of anonymity, the soft-spoken official explained the circumstances under which the Army launched deep penetration units soon after one-time Director of the DMI Lionel Balagalle had been appointed Commander of the Army.

Balagalle couldn’t resist the temptation to explore the possibility of infiltrating areas outside government controlled regions to launch attacks. “It was a tremendous task. Those who volunteered to join the operation realised the risks they were taking. They were among the best and they courageously adopted the new doctrine, which enabled us to carry out targeted killings. It was nothing but a high risk operation, though it produced results. They had to curtail their movements, particularly in the Eastern Province, where we used Batticaloa as the centre of our operations.”

Then Brigadier Kapila Hendarawithana executed the operation in his capacity as Director of DMI.

The LTTE realised the danger. Within months after the launch of the first DMI raid in the Batticaloa District, the LTTE pushed for the suspension of the DMI operation. The February 23, 2002 Ceasefire Agreement (CFA), arranged by the Norwegians, included a clause which specifically dealt with DMI action. The CFA called for the suspension of operations behind LTTE lines. While the LTTE had been successful in its negotiations with the Norwegians and the then inept UNP government with Executive President Chandrika Kumaratunga reduced to more or less a figurehead, the DMI suffered a debilitating setback when that regime with hardly any feelings for our valiant fighting men risking their lives day and night, ordered a police raid on an Army safe-house used by a deep penetration team at Athurugiriya.

The UNP-led United National Front (UNF) emerged victorious at the Dec. 5, 2001 general election with 109 seats, while the defeated PA managed to secure 77 seats. The remaining seats were shared by the JVP (16), the TNA (15), the SLMC (5), the EPDP (2) and the DPLF (01).

Balgalle on ops behind enemy lines

It had been one of the bloodiest elections with the five-week campaign claiming the lives of almost 50 people, with the polls day massacre of a group of SLMC supporters at Udathalawinna being the single worst incident. This massacre carried out by troops attached to the Vijayaba Infantry Regiment (VIR) who had been brought to Kandy at the behest of de facto Defence Minister Anuruddha Ratwatte was used as an excuse by a vindictive UNP leadership to order the raid on the safe house used by the DMI situated at Millennium City, Athurugiriya, on Jan. 2, 2002, which changed the course of the conflict. The UNF cited intelligence reports that Anuruddha Ratwatte’s sons, wanted in connection with the Udathalawinna massacre, were taking refuge at Athurugiriya.

Had the UNP leadership been a little cautious, it would never have publicly accused the Army of an assassination plot. Lt. Gen. Balagalle discussed the issues at hand with the writer. Operating hit squads behind enemy lines had been a key element in the Army’s strategy to give it a taste of its own medicine, the Army chief said at that time, alleging the then Opposition had failed to grasp what was going on. The Island quoted Lt. Gen. Balagalle as having said: “Had they quietly raised the issue with us and sought a clarification without playing politics with national security, the Athurugiriya fiasco could have been averted. Even ex-LTTE cadres were brought in for operations along with valuable input from civilian informants. We were successful due to many reasons such as training from Pakistani instructors. We also accommodated troops from other fighting battalions to engage in operations behind enemy lines, though the Special Forces and Army Commandos spearheaded the campaign.”

At the time troops had been undergoing training in Pakistan, Balagalle functioned as Security Forces Commander, Jaffna.

The Athurugiriya raid ruptured relations between the UNP and the Army. It caused irreparable damage to national security. At the behest of the UNP, a section of the media, including the Colombo-based correspondents working for international news agencies, highlighted the Athurugiriya raid speculating the Army’s alleged involvement in anti-government activities. Investigating officers alleged that those who had been based at Athurugiriya were involved in the alleged attempt to assassinate Wickremesinghe. Subsequently, the DMI was accused of planning attacks in the city and its suburbs to sabotage the Norwegian-led peace process.

The UNP allegations had the desired impact in the wake of state television showing recovered items, which included 66 sets of LTTE uniforms, four thermobaric weapons, seven claymore mines each weighing 10 kgs, 10 claymore mines, each weighing one kg each, three T-56 assault rifles along with 400 rounds of ammunition, 10 anti-tank weapons, detonators, cyanide capsules, exploders, remote controlled devices and wire rolls.

While a section of the media lashed out at the Army, in a front-page exclusive headlined ‘Controversy over police raid on army officers Millennium City residence,’ on Jan 4, 2002, The Island revealed that a police team from Kandy, led by die-hard UNP loyalist, Kulasiri Udugampola, had raided an Army safe house. The raid also involved a team of CCMP (Ceylon Corps of Military Police).

In spite of both Lt. Gen. Balagalle and the then Director of DMI, Brigadier Kapila Hendawitharana (later served as Chief of National Intelligence, before quitting in 2015) reassuring the government of the legitimacy of operations undertaken by the DMI, the police was let loose on covert operatives. Regardless of Balagalle rushing Hendarawithana, who later figured in many controversies to the scene, Udugampola went ahead with the raid. The police had obtained permission from courts to search the premises.

Udugampola had the backing of the then Interior Minister, John Amaratunga. IGP Lucky Kodituwakku, though being convinced of the legitimacy of the DMI operation, couldn’t do anything. He was helpless.

Army takes firm stand

The Kandy police raided the safe house shortly after the officer-in-charge of the DMI operation had handed over part of their arsenal. Those involved in the hit-and-run operations in LTTE held-areas had returned to Colombo on Dec. 27, 2001, in the wake of the Wickremesinghe administration declaring its readiness to go ahead with a Norwegian initiative to sign a one-sided CFA clearly favourable to the LTTE. The Kandy police also accused the Army of planting two claymore mines targeting a UNP candidate along the Wattegama-Panwila road, in the run-up to the Dec. 5, 2001 polls.

The then security forces spokesman, Brig. Sanath Karunaratne emphasised that those who operated from Athurugiriya were involved in ‘Army duties’ (The Island Jan. 4, 2002). Regardless of protests by the Army, those arrested were taken away to the Narahenpita CMP headquarters before being transferred to Kandy. They were treated like criminals and held under humiliating conditions. Six of them, including an officer, were held in one room. For two weeks, the media reported all sorts of conspiracy theories.

Let me stress that the Athurugiriya betrayal, in a way divided the Army. An influential section of the Army obviously cooperated with the conspirators.

Those who had been arrested were held for almost two weeks before being granted bail. The police raid would never have been possible without an influential section within the Army cooperating with the political establishment to undermine a vital operation, which brought the LTTE under immense pressure.

The UNP and the police justified Udugampola’s raid. Asked whether he had used the safe house to accommodate his sons, one-time Defence chief, Anuruddha Ratwatte, candidly acknowledged that he hadn’t been among those who knew of the existence of that particular rear base, though the Army kept him informed of operations undertaken by the DMI. (Feb. 1 issue of The Island, 2002)

Marapana to the rescue

Then Defence Minister, Tilak Marapana, a one-time Attorney General, to his credit did not play politics with such an important issue and thwarted an attempt by the Kandy police to prolong the detention of DMI operatives using the provisions of the PTA to please their then political masters in the UNP. The bid to neutralize the DMI was made ahead of the signing of the CFA. The Wickremesinghe administration didn’t even bother to consult the armed forces and police top brass regarding the provisions of the agreement. Then Navy Commander, Vice Admiral Daya Sandagiri told the Lessons Learnt and Reconciliation Commission (LLRC) how then Defence Secretary, Austin Fernando, had bypassed them with regard to sensitive military issues.

Fernando, in an article captioned ‘The Peace Process and Security Issues’ (Negotiating Peace in Sri Lanka: Efforts, Failures and Lessons) admitted that the refusal on the part of the then government to consult the military had been a failure. Fernando said (page 42): “The military chiefs weren’t consulted in the drafting of the CFA. Of course, a casual opportunity was given to them to discuss the draft with Ministers of Defence (Tilak Marapana) and Constitutional Affairs (Prof. G.L. Peiris). This wasn’t considered adequate by them as they didn’t get an opportunity to discuss the CFA with their senior officers”.

The CFA declared that ACTIVITIES BY DEEP PENETRATION UNITS should be ceased along with the cessation of all military action. The LTTE wouldn’t have demanded a ban on DMI operations unless the group acknowledged the growing threat posed by DMI. The LTTE had been vulnerable to those hunting them in their own backyard. Obviously, the LTTE wouldn’t have bothered about the DMI had the latter been stalking Wickremesinghe in the run-up to the Dec. 2001 polls.

Retired Senior DIG Merril Gunaratne, who had been Defence Advisor to Wickremesinghe during the CFA, exposed the UNP leadership in his ‘COP IN THE CROSSFIRE.’ The first book of its kind, written by one-time Director General of Intelligence, revealed how the top UNP leadership took security issues lightly at the expense of the country as well as the party. Asked whether he had been involved in the operation to move the Kandy police against the DMI, Gunaratne told the writer at that time he categorically opposed the move. “I was convinced the PA government wouldn’t target Wickremesinghe, thereby allowing the UNP to benefit from the sympathy vote. Unfortunately, Wickremesinghe and his top advisors felt the Army was hell bent on destroying the UNP.”

Ex-LTTE’s among the slain

The Athurugiriya raid had a catastrophic impact on the armed forces, which experienced untold hardships due to miscalculations on the part of political and military leaders. Following the betrayal of the DMI, the LTTE unleashed a series of operations in the city, its suburbs and in the Eastern Province. Altogether, over 50 military personnel, Tamil informants as well as ex-LTTE cadres working for the Army, died at the hands of the LTTE as their identities were revealed owing to the raid on the army safe house. Wijayanadan Widyatharan, alias Vidya, of Sea Road, Navakkudah, was the first operative killed by the LTTE after exposure of the Athurugiriya operation. Vaidya was abducted on January 20, 2002, over two weeks after the raid.

The dead included two senior military officers, both killed in Colombo. Although the two military officials, holding the rank of Major and Colonel could have been on a hit list, regardless of the Athurugiriya fiasco, the LTTE exploited the situation to demoralise the Army. Daring operations directed at the DMI and police intelligence helped boost the LTTE’s image. The military was placed in an unenviable position as the suspension of the PTA effectively neutralised counter-measures directed at LTTE hit squads.

Inspector Dale Gunaratne, the then President of the Police Inspectors’ Association, was perhaps the only law enforcement officer publicly critical of the UNP’s response to the LTTE threat. (Having retired years ago, Gunaratne now serves as an Attorney-at-Law) Although his superiors reacted angrily, Gunaratne lashed out at the government for allowing the LTTE to exploit the CFA to its advantage. Citing the killing of Inspector Thabrew at the Dehiwela Police Station, in July 2003, IP Gunaratne alleged that the suspension of the PTA in keeping with the CFA was nothing but a grievous threat to those fighting terrorism. He kept on lambasting the UNP and his own superiors for not taking action to neutralise the LTTE threat. But the UNP was determined to salvage the crumbling peace process at any cost. For those at the helm of the government, the lives of security forces and police didn’t matter, as long as they believed the LTTE would remain in the negotiating process. Politicians felt whatever the provocations, the peace process should continue.

By Shamindra Ferdinando

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Midweek Review

Universal in a Catastrophe

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Survivors of the South-East Asian tragedy,

Triggered by nature’s stern promptings,

Somehow reining-in suffocating sorrow,

Are leaving no unhinged stone unturned,

To salvage the remains of those held dear,

In fresh testimony of love’s staying power,

But it speaks well for the untouched majority,

That unstinted succor is pouring in,

To render some solace to the hapless,

Although no amount of fellow feeling,

Could make up for the wrenching sorrow,

Of parting from a priceless presence.

By Lynn Ockersz

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Midweek Review

Batalanda and complexities of paramilitary operations

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Former President Ranil Wickremesinghe’s recent combative ‘Head-to-Head’ interview with British-American Mehdi Hasan on Al Jazeera has opened a can of worms. As to why Hasan raised the Batalanda Presidential Commission report, during a 49-minute interview conducted at the London’s Conway Hall, with a clearly pro LTTE audience, remains a mystery. This must be yet another notorious way to show how even-handed they are as in the case of its coverage of Russia, China, Palestine or Ukraine for their gullible viewers.

Recorded in February and aired in March 2025, the interview is definitely the most controversial the UNP leader, who is also an Attorney-at-Law, ever faced during his political career; always used to getting kid glove treatment, especially after taking over the party in 1994.

The continuing public discourse on Batalanda should provoke a wider discussion on Sri Lanka’s response to separatist Tamil terrorism, since the cold blooded murder of Jaffna SLFP Mayor Alfred Duriappah, which signalled the beginning of the LTTE terror campaign that ended in May 2009 with the crushing military defeat of the Tigers on the banks of the Nathikadal lagoon, as well as two southern insurgencies in 1971 and 1987-1990.

As Nandana Gunatilleke (one time JVP General Secretary and ex-MP), Dr. Wasantha Bandara (ex-JVPer and close associate of the slain JVP leader Rohana Wijeweera), Indrananda de Silva (ex-JVPer, incumbent Central Committee member of Frontline Socialist Party [FSP] and ex-military photographer) and Uvindu Wijeweera (Rohana Wijeweera’s son and leader of Dewana Parapura) agreed during the recent Hiru ‘Balaya’ discussion, conducted by Madushan de Silva, the Batalanda operation was in line with the overall counter-terrorist/insurgency strategy of the then government.

The issues at hand cannot be discussed at all without taking into consideration the JVP terrorism that, at one-time, almost overwhelmed the UNP’s unbroken rule, since 1977, carried out while openly brushing aside most of the universally accepted genuine parliamentary norms. The country’s second Republican constitution, promulgated by the UNP regime with a 5/6 majority in Parliament, in 1978, had been amended no less than 13 times by the time they were finally ousted in 1995. This was mainly to facilitate their continuous rule. Unfortunately, all stakeholders have sought to take advantage of Batalanda, thereby preventing a proper dialogue. Quite surprisingly, none of the guests, nor the interviewer, bothered, at least, to make a reference to the JVP bid on President J.R. Jayewardene’s life in Parliament on the morning of July 18, 1987. At the time, JVPer Ajith Kumara, working in the House as a minor employee, hurled two hand grenades towards JRJ, with the then Prime Minister Ranasinghe Premadasa seated next to JRJ. While one government MP lost his life, several others suffered injuries, including then National Security Minister Lalith Athulathmudali, whose spleen had to be removed.

At one point, Gunatilleke declared that they assassinated UNP MP for Tangalle Jinadasa Weerasinghe on July 3, 1987, in response to the government killing well over 100 people, in Colombo, protesting against the signing of the Indo-Lanka accord on July 29, 1987. The parliamentarian was killed near the Barawakumbuka-Welangahawela bridge on the Colombo-Rathnapura-Embilipitiya Road. The UNPer was killed on his way home after having declined Premier Premadasa’s offer to make an SLAF chopper available for him to reach home safely.

Against the backdrop of MP Weerasinghe’s assassination and the grenade attack on the UNP parliamentary group that claimed the life of Keethi Abeywickrema (MP for Deniyaya), the government had no option but to respond likewise. The operation, established at the Batalanda Housing scheme of the State Fertiliser Corporation, constituted part of the counter-insurgency strategy pursued by the UNP.

Those who called Batalanda complex Batalanda torture camp/ wadakagaraya conveniently forgot during the second JVP inspired insurgency, the military had to utilize many public buildings, including schools, as makeshift accommodation for troops. Of course the UNP established Batalanda under different circumstances with the then Industries Minister Ranil Wickremesinghe providing political authority. Batalanda had been an exclusive police operation though the Army had access to it whenever a requirement arose.

Those who had been suddenly withdrawn from the Northern and Eastern Provinces, to meet the rapidly evolving security threat in the South, required accommodation. FSP CC member Indrananada de Silva had received unhindered access to Batalanda in his capacity as a military photographer and the rest is history.

As to why Indrananda de Silva switched his allegiance to the FSP should be examined, taking into consideration his previous role as a trusted military photographer, formerly a Lance Corporal of the Military Police. An influential section of the JVP, led by Kumar Gunaratnam, formed the FSP in April 2012 though it didn’t receive the much anticipated public support. Both Indrananda de Silva and Nandana Gunatilleke, who aligned himself with the UNP, found fault with the JVP-led National People’s Power (NPP) over its handling of the Batalanada issue.

Paramilitary operations

Paramilitary operations had been an integral part of the overall counter-insurgency campaign, directed at the JVP responsible for approximately 6,600 killings. Among those death squads were PRRA primarily drawn from the SLMP (Sri Lanka Mahajana Party) and SRRA (the socialist Revolutionary Red Army). PRRA had close links with the Independent Student Union (ISU) whose leader Daya Pathirana was slain by the JVP. The vast majority of people do not remember that Daya Pathirana, who led the ISU during the turbulent 1985-1986 period, was killed mid-Dec. 1989. The second insurgency hadn’t started at that time though the JVP propagated the lie that they took up arms against the UNP government following the signing of the Indo-Lanka peace accord on July 29, 1987.

In addition to PRRA and SRRA, the government made use of paramilitary groups, namely Kalu balallu, Ukkusso, Rajaliyo, Kaha balallu, Kola koti, Rathu Makaru, Mapila, Gonussa, Nee, Keshara Sinhayo, Le-mappillu and Kalu koti.

The UNP also involved some elements of Indian trained Tamil groups (not of the LTTE) in paramilitary operations. Such operations, that had been backed by respective Cabinet Ministers, were supervised by local law enforcement authorities. Paramilitary operations had been in line with psychological warfare that was meant to cause fear among the JVP, as well as the general population. Military operations that had been combined with paramilitary actions received the blessings of the political leadership at the highest level. In the case of Batalanda (1988-1990) President J.R. Jayewardene and Ranasinghe Premadasa knew of its existence.

Even after the eradication of the top JVP leadership, by Nov. 1989, police, military and paramilitary operations continued unabated. Former JVPers appearing on ‘Balaya’ agreed that counter-insurgency operations were actually brought to an end only after D.B. Wijetunga succeeded President Ranasinghe Premadasa after the latter’s assassination on May Day 1993.

After the LTTE resumed war in June 1990, just a couple of months after the withdrawal of the Indian Army (July 1987-March1990), the UNP authorized paramilitary operations in the northern and eastern areas. Members of TELO, PLOTE, EPRLF as well as EPDP were made part of the overall government security strategy. They operated in large groups. Some paramilitary units were deployed in the Jaffna islands as well. And these groups were represented in Parliament. They enjoyed privileged status not only in the northern and eastern regions but Colombo as well. The government allowed them to carry weapons in the city and its suburbs.

These groups operated armed units in Colombo. The writer had the opportunity to visit EPDP and PLOTE safe houses in Colombo and its suburbs soon after they reached an understanding with President Ranasinghe Premadasa. Overnight at the behest of President Premadasa, the Election Department granted these Tamil groups political recognition. In other words, armed groups were made political parties. The Premadasa government accepted their right to carry weapons while being represented in Parliament.

It would be pertinent to mention that thousands of Tamil paramilitary personnel served the government during that period. There had been many confrontations between them and the LTTE over the years and the latter sought to eliminate key paramilitary personnel. Let me remind you of the circumstances, the EPRLF’s number 02 Thambirajah Subathiran alias Robert was sniped to death in June 2003. Robert was engaged in routine morning exercises on the top floor of the two-storeyed EPRLF office, on the hospital road, Jaffna, when an LTTE sniper took him out from the nearby Vembadi Girls’ high school. The operation of the Norway managed Ceasefire Agreement (CFA) made no difference as the LTTE removed Robert who led the party here in the absence of leader Varatharaja Perumal, the first and the only Chief Minister of the North-Eastern Province.

In terms of the CFA that had been signed by Premier Ranil Wickremesinghe and LTTE leader Velupillai Prabhakaran, in Feb. 2002, the government agreed to disarm all paramilitary personnel. Many wouldn’t remember now that during Premadasa’s honeymoon with the LTTE, the Army facilitated the LTTE onslaught on paramilitary groups in selected areas.

Muthaliff’s role

During the ‘Balaya’ discussion, the contentious issue of who shot JVP leader Rohana Wijeweera came up. Nandana Gunatilleke, who contested the 1999 Dec. presidential election. as the JVP candidate, pointing to an article carried in the party organ that dealt with Wijeweera’s assassination said that he wrongly named Gaffoor as one of the persons who shot their leader whereas the actual shooter was Muthaliff. The headline named Thoradeniya and Gaffoor as the perpetrators.

Declaring that he personally wrote that article on the basis of information provided by Indrananda de Silva, Gunatilleke named Asoka Thoradeniya and Tuan Nizam Muthaliff of the Army as the perpetrators of the crime. Thoradeniya served as Sri Lanka’s High Commissioner in the Maldives during the Yahapalana administration, while Muthaliff was killed by the LTTE in Colombo in late May 2005. The shooting took place at Polhengoda junction, Narahenpita. Muthaliff was on his way from Manning town, Narahenpita, to the Kotelawala Defence University.

The programme was told that the JVP had over the years developed close relationship with Thoradeniya while Indrananda de Silva accused Dr. Wasantha Bandara of duplicity regarding Muthaliff. How could you recognize Muthaliff, slain by the LTTE, as a war hero as he was actually one of the persons who shot Rohana Wijeweera, the latter asked.

At the time of his assassination, Muthaliff served as the Commanding Officer, 1 st Regiment Sri Lanka Military Intelligence Corps. The then parliamentarian Wimal Weerawansa was among those who paid last respects to Maj. Muthaliff.

At the time of Rohana Wijeweera’s arrest, Muthaliff served as Lieutenant while Thoradeniya was a Major. Indrananda de Silva strongly stressed that atrocities perpetrated by the police and military in the South or in the northern and eastern regions must be dealt with regardless of whom they were conducting operations against. The former JVPer recalled the Army massacre in the east in retaliation for the landmine blast that claimed the lives of Northern Commander Maj. Gen. Denzil Kobbekaduwa and a group of senior officers, including Brigadier Wijaya Wimalaratne, in early Aug. 1990 in Kayts.

Dr. Wasantha Bandara warned of the Western powers taking advantage of what he called false narrative to push for a Truth and Reconciliation Commission.

It would be pertinent to mention that the LTTE also used the underworld as well as some corrupt Army personnel in planning high profile assassinations. Investigations into the assassination of Muthaliff, as well as Maj. Gen. Parami Kulatunga, killed in a suicide attack at Pannipitiya, in June 2006, revealed the direct involvement of military personnel with the LTTE.

Indrananda de Silva disclosed that soon after Anura Kumara Dissanayake won the presidential election last September, the FSP, in writing, requested the JVP leader to inquire into killings during that period, including that of Rohana Wijeweera. The FSPer alleged that President Dissanayake refrained from even acknowledging their letter. Indrananda de Silva emphasized that Al Jazeera never disclosed anything new as regards Batalanda as he exposed the truth years ago. The former JVPer ridiculed the ruling party tabling the Batalanda Commission report in the wake of Wickremesinghe’s Al Jazeera interview whereas the matter was in the public domain for quite some time.

Indrananda de Silva and Nandana Gunatilleke exchanged words over the latter’s declaration that the JVP, too, was subjected to investigation for violence unleashed during the 1987-1990 period. While the FSPer repeatedly declared that those who carried out directives issued by the party were arrested and in some cases killed, Nandana Gunatilleke took up the position that the party should be held accountable for crimes perpetrated during that period.

The interviewer posed Nandana Gunatilleke the question whether he was betraying his former comrades after joining the UNP. Nandana Gunatilleke shot back that he joined the UNP in 2015 whereas the JVP joined UNP as far back as 2009 to promote retired Army Chef Sarath Fonseka’s presidential ambition even though he wiped out the JVP presence in Trincomalee region during the second insurgency.

JVP’s accountability

Nandana Gunatilleke is adamant that the party should accept responsibility for the killings carried out at that time. The former JVPer declared that Vijaya Kumaratunga (Feb. 16, 1988), first Vice Chancellor of the Colombo University (March 08, 1989) Dr. Stanley Wijesundera, Ven. Kotikawatte Saddhatissa thera (Aug. 03, 1988) and Chairperson of the State Pharmaceutical Corporation Gladys Jayewardene (Sept. 12, 1989) were among those assassinated by the JVP. SPC Chairperson was killed for importing medicine from India, the former Marxist aligned with the UNP said, while actor-turned-politician Kumaratunga’s assassination was attributed to his dealings with President J.R. Jayewardene.

According to Nandana Gunatilleke, except for a few killings such as General Secretaries of the UNP Harsha Abeywickrema (Dec 23, 1987) and Nandalal Fernando (May 20, 1988), the vast majority of others were ordinary people like grama sevakas killed on mere accusation of being informants. The deaths were ordered on the basis of hearsay, Nandana Gunatilleke said, much to the embarrassment of others who represented the interest of the JVP at that time.

One quite extraordinary moment during the ‘Balaya’ programme was when Nandana Gunatilleke revealed their (JVP’s) direct contact with the Indian High Commission at a time the JVP publicly took an extremely anti-Indian stance. In fact, the JVP propagated a strong anti-Indian line during the insurgency. Turning towards Dr. Wasantha Bandara, Gunatilleke disclosed that both of them had been part of the dialogue with the Indian High Commission.

It reminds me of the late Somawansa Amarasinghe’s first public address delivered at a JVP rally in late Nov. 2001 after returning home from 12 years of self-imposed exile. Of the top JVP leadership, Somawansa Amarasinghe, who had been married to a close relative of powerful UNP Minister Sirisena Cooray, was the only one to survive combined police/military/paramilitary operations.

Amarasinghe didn’t mince his words when he declared at a Kalutara rally that his life was saved by Indian Premier V.P. Singh. Soft spoken Amarasinghe profusely thanked India for saving his life. Unfortunately, those who discuss issues at hand conveniently forget crucial information in the public domain. Such lapses can be both deliberate and due to negligence.

By Shamindra Ferdinando

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