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EUR 10 mn grant for improving transparency and accountability in public finance expenditure

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Sri Lanka has received foreign grants amounting to EUR 9.8 mn meant to improve transparency and accountability in public finance expenditure.

The EU disclosed the grant in a statement issued yesterday. According to the statement, the government, the World Bank, the European Union (EU) and Agence Française de Développement (AFD) have signed financing agreements to help strengthen Sri Lanka’s management of public finances.

“Weak management of public finances contributed to Sri Lanka’s economic crisis, so it is crucial to strengthen core public finance institutions and systems to shore up the economic recovery and get the country on a sustainable growth path,” the statement quoted World Bank Country Manager for the Maldives, and Sri Lanka Chiyo Kanda as having said. “This project will leverage technology to develop and scale up the government’s nascent e-procurement system (e-GP) and enhance the institutional capacity of the National Audit Office of Sri Lanka, both important steps towards enhancing efficiency and transparency in public procurement and external audits.”

The public sector is the largest purchaser of goods, works, and non-consulting services in Sri Lanka’s domestic market. Procurement of these goods and services is often delayed due to cumbersome and outdated procedures and processes, limited understanding of market approaches, and lack of capacity and empowerment of procurement decision-makers.

“In the absence of digitized procurement tools and an efficient e-procurement system, Sri Lanka misses out on opportunities to leverage economies of scale and to monitor the efficiency and timeliness of procurement,” said Ambassador of the European Union to Sri Lanka and the Maldives Denis Chaibi. “A strong and modernized public finance management system is vital for the country to mitigate the risk of crises in the future and to establish accountability and public trust in the system. The European Union—through the World Bank—is pleased to support institutional capacity and transparency in Sri Lanka’s procurement and audit, which will improve economic governance and aid Sri Lanka’s recovery.”

The EU stated that the project aims to strengthen the overall accountability framework by improving the performance of the National Audit Office of Sri Lanka in terms of stronger governance, greater accountability, and enhanced institutional capacity in areas relating to audit planning, quality assurance, staff capacity, engagement of citizens in the audit process, as well as in specialized audits such as procurement and environment audits.



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CIABOC tells court Kapila gave Rs 60 mn to MR and Rs. 20 mn to Priyankara

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USD 2.3 billion Airbus deal

The Commission to Investigate Allegations of Bribery or Corruption (CIABOC) yesterday told the Colombo Magistrate’s Court that former SriLankan Airlines CEO Kapila Chandrasena had admitted delivering a total of Rs. 60 million in three instalments of Rs. 20 million each to the then President Mahinda Rajapaksa, and Rs. 20 million to Aviation Minister Priyankara Jayaratne. The funds were allegedly linked to the controversial Airbus aircraft deal.

Chandrasena, who was arrested on March 12 over bribery allegations connected to the deal, was further remanded until April 2 by Colombo Chief Magistrate Asanga S. Bodaragama. He was produced before court yesterday by prison officials.

Investigators say Chandrasena is accused of accepting a US$2 million bribe in the transaction and conspiring to secure a total of US$16 million. They also allege that €1.45 million was transferred to a bank account in Singapore.

Prosecutors told court that Chandrasena had created a shell company in Brunei in his wife’s name to channel the kickbacks into its Singapore account.

The case stems from a 2013 agreement in which SriLankan Airlines purchased 10 aircraft valued at US$2.3 billion. Court proceedings are ongoing.The court fixed the date for March 24 to consider evidence with regard to issue warrants for Priyanka Neomali Wijearatne and Shamindra Rajapaksa.

By AJA Abeynayake

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Opposition moves no-faith motion against Energy Minister Kumara Jayakody

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Kumara Jayakody

Opposition lawmakers yesterday handed over a no-confidence motion against Energy Minister Kumara Jayakody to Speaker Dr Jagath Wickramaratne over alleged irregularities in coal procurement, etc.

Chief Opposition Whip MP Gayantha Karunathilaka submitted the motion to the Speaker yesterday morning. It has been signed by Opposition Leader Sajith Premadasa, members of the SJB, and several other Opposition representatives.

The motion accuses the Minister of failing to fulfil his primary responsibility of ensuring the procurement of adequate and high-quality coal for the Lakvijaya Coal Power Plant at Norochcholai. It states that such negligence in managing a critical national energy asset amounts to a serious breach of ministerial responsibility.

It further notes that the Minister has been formally charged before the Colombo High Court by the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) under Section 70 of the Bribery Act. The charge relates to an alleged act of corruption during his tenure as Procurement Manager of the Ceylon Fertiliser Company Limited.

The Opposition maintains that the combination of administrative failures and pending legal proceedings undermines the Minister’s ability to hold office, warranting a vote of no confidence.

By Saman Indrajith

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NJC takes up cudgels on behalf of Sallay, who played pivotal role in combating terrorism 

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The National Joint Committee (NJC) has raised concerns over the arrest and detention of retired Major General Suresh Sallay, calling for due process and caution in handling sensitive national security matters.

Issuing a statement signed by Dr Anula Wijesundera, the NJC has said the former senior military officer served the country for decades in the armed forces and intelligence services during critical periods of the conflict against terrorism.

While acknowledging that all citizens are subject to the law, the Committee has stressed that due process, fairness and respect for institutions tasked with safeguarding national security must be upheld.

Full text of the statement: The National Joint Committee (NJC) expresses deep concern regarding the recent arrest and detention of Retired Major General Suresh Sallay under a detention order.

Major General Sallay served Sri Lanka for decades in the armed forces and in the intelligence services during some of the most challenging periods of our country’s struggle against terrorism.

While all citizens are subject to the rule of law, the NJC believes that due process, fairness, and respect for the institutions that safeguard national security must be upheld at all times.

Particularly troubling are reports that sensitive intelligence-related details, including references to intelligence structures and personnel, are being publicly discussed in ways that could compromise operational security. The exposure of intelligence methodologies or personnel in the public domain can place lives at risk and weaken the effectiveness of national security institutions.

Sri Lanka has already experienced the grave consequences of such actions in the past. The Millennium City incident in 2002 led to the exposure of intelligence operatives who had been working against terrorist networks. Following the disclosure of their identities, many of those officers became targets of retaliation by the LTTE, resulting in the tragic loss of numerous lives and the dismantling of critical intelligence networks at a time when the nation most needed them.

It is therefore imperative that lessons from that painful episode are not forgotten.

It is also important to recall that prior investigations and public records confirm that intelligence warnings regarding potential attacks were received in Sri Lanka before 21 April 2019. The tragic loss of life that followed was therefore not the result of an absence of intelligence, but rather the failure of responsible authorities to act effectively upon those warnings in time to prevent the attacks. The numerous Commissions and Committees have identified these individuals and recommended action against them.

Equally relevant to the current public discussion is the factual record that Major General Suresh Sallay was neither serving as the Head of the State Intelligence Service nor present in Sri Lanka at the time when the attacks took place.

The NJC urges all authorities involved in the present investigation to ensure that the legal process is conducted with the utmost professionalism, transparency, and responsibility, while safeguarding sensitive national security information.

At a time when Sri Lanka continues to face evolving security challenges, the morale and integrity of the armed forces and intelligence services must be protected. Public confidence in these institutions is essential to the safety and stability of the nation.

The National Joint Committee therefore calls upon all responsible stakeholders — including investigators, public officials, media institutions, and civil society — to act with caution and responsibility so that the pursuit of justice does not inadvertently undermine the very institutions entrusted with protecting the country.

Sri Lanka’s patriots must remain vigilant to ensure that the sacrifices made by our armed forces and intelligence officers are not disregarded, and that national security institutions are not weakened in ways that could endanger the country in the future.

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