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Inquiry into what took place during yahapalana rule: COPE questions state bank over Rs. 54 bn default

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How come GM takes home Rs 16.6 mn Benz for Rs 113,698

Rs 402 mn squandered on useless project

By Shamindra Ferdinando

Amidst the worst-ever fiscal crisis that has prompted several lawmakers, including former Prime Minister Ranil Wickremesinghe to warn of severe threat to the banking system, the parliamentary watchdog committee-COPE has demanded an explanation from the state-owned People’s Bank regarding the public sector defaulting a staggering Rs 54 bn.

Having drawn the attention of the top management of the People’s Bank to serious lapses therein, Committee on Public Enterprises (COPE) Chairman Prof. Charitha Herath,

MP, on Wednesday (04) asked Chairman of the bank Sujeewa Rajapaksa to furnish within one month a list of defaulters, assessments made prior to the releasing of loans and those involved in the process. General Manager, People’s Bank Ranjith Kodituwakku was also present.

Prof. Herath said that the next COPE report would contain relevant information obtained from the People’s Bank. Instructions were issued in the presence of Auditor General W. P. C. Wickremaratne.

The COPE summoned the People’s Bank management to inquire about the Auditor General’s reports that dealt with 2018 and 2019. The late Mangala Samaraweera served as the Finance Minister during yahapalana administration (2015-2019).

Minister Dr. Nalaka Godahewa, State Minister Indika Anuruddha and members of Parliament Mahinda Amaraweera, Jagath Pushpakumara, Rohitha Abeygunawardena, Patali Champika Ranawaka, Dr. Harsha de Silva, Rear Admiral (retired) Sarath Weerasekera, Eran Wickremaratne, Jayantha Samaraweera, S.M. Marrikar, S. Rasamanikkam, Madura Withanage and Premanath C. Dolawatta participated in the hearing.

 In the run-up to Wednesday’s meeting, Prof. Herath told The Island that a total system change was required to ensure financial stability and transparency in both the public and private sectors.

 The SLPP National List MP emphasized the need to examine the shocking revelations made at the watchdog committees, namely the COPE, COPA (Committee on Public Accounts) and COPF (Committee on Public Finance) against the backdrop of developing monetary crisis. Obviously, there had not been supervision at any level, therefore urgent remedial measures were required, Prof. Herath said, pointing out the current fiscal crisis should prompt the Parliament and the incumbent government to address serious issues at hand.

COPE members asked the People’s Bank management how some private companies had been given loans running to billions of Rupees without adequate security, whereas small and medium scale businesses struggled to obtain loans. Demanding the streamlining of the process, the lawmakers asked the People’s Bank management to reveal how such large loans were authorized.

 The COPE also questioned the rationale in the People’s Bank transferring the ownership of Mercedes Benz that had been acquired on April 27, 2015 at a cost of Rs 16.6 mn to the retiring General Manager for Rs 113,698. The incumbent General Manager Ranjith Kodituwakku has said that the bank normally allowed a retiring General Manager to take the vehicle used by him for a period of over one year. The Parliament in a statement issued in Sinhala quoted Kodituwakku as having told the COPE that the value of the vehicle had depreciated from Rs 16.6 mn to Rs. 113,698 and decision was based on market price.

 But the lawmakers demanded to know how a vehicle bought for Rs 16.6 mn was sold for Rs 113,698. Subsequently, the General Manager said that the Bank had changed its policy regarding transferring of ownership of vehicles to retiring General Managers and Deputy General Managers. Under the new system, a GM and DGM would be entitled for the privilege only of he or she served the bank for 25 years.

 Declaring public money could not be squandered that way, Prof. Herath requested Treasury Secretary Mahinda Siriwardena to intervene and formulate a system to prevent such occurrences. Prof. Herath said that the state banking sector that was under the Treasury Secretary. Therefore, the Treasury Secretary should act against decisions such as transferring of vehicles only on the approval of respective Boards of state banks.

 The COPE also raised the bank spending Rs 402 mn on what it called data warehouse project initiated in 2015 that had not been successful. It transpired that the person who had been appointed as the head of the Information Technology Section of the People’s Bank by the then Chairman of the People’s Bank was a former employee of the company that managed the useless project. Prof. Herath has asked Treasury Secretary Mahinda Siriwardena to conduct an inquiry at ministry level. Herath also asked AG Wickremaratne to conduct a special audit by the National Audit Office.

 When the COPE questioned the incumbent bank management about the transferring of a loan amounting to Rs 4.2 bn granted to a company owned by the then director of the bank, the officials said the CID was inquiring into it. The said amount had been estimated as at Dec. 31, 2019.



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Power sector overhaul targets losses, debt and tariffs

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Independent trade unions cry foul

The government has launched a far-reaching overhaul of the electricity industry, breaking up the Ceylon Electricity Board (CEB) into six fully state-owned companies, claiming to rein in chronic losses and mounting debt.

Under the Preliminary Transfer Plan, the newly incorporated entities, namely, Electricity Generation Lanka (Pvt) Ltd (EGL), National Transmission Network Service Provider (Pvt) Ltd (NTNSP), National System Operator (Pvt) Ltd (NSO), Electricity Distribution Lanka (Pvt) Ltd (EDL), CEB Employees Funds (Pvt) Ltd (CEBEF) and Energy Ventures Lanka (Pvt) Ltd (EVL), will take over the assets, liabilities and operations of the CEB from the appointed date.

Independent trade unions have opposed the restructuring programme.

At the core of the new model is the creation of an independent National System Operator, which will handle power system planning and competitively procure electricity from Electricity Generation Lanka, Independent Power Producers and non-conventional renewable energy developers. Power will be wheeled through the national grid operated by the NTNSP and sold to distribution companies.

Explaining the economic rationale, Eng. Pubudu Niroshan Hedigallage said the separation of functions was critical to restoring cost discipline in the sector.

“Electricity planning and procurement will now be carried out independently, based on least-cost principles. That is essential if we are to control generation costs and ease the upward pressure on tariffs,” he said.

Electricity Generation Lanka, though a successor to the CEB, will compete with private and renewable energy producers for projects, a move expected to curb inefficiencies and end guaranteed returns enjoyed under earlier arrangements.

“There will be no automatic allocation of projects. EGL must compete in the market like any other generator,” Eng. Hedigallage said.

According to officials, the Preliminary Transfer Plan provides for one generation and one distribution company initially, with further unbundling planned under the Final Transfer Plan to introduce sharper financial accountability at operational level.

Economists note that the restructuring is closely watched by multilateral lenders and investors, who have repeatedly flagged the power sector as a major fiscal risk.

The government has insisted that the reforms do not amount to privatisation, stressing that all six entities remain 100 percent state-owned. However, independent trade unions are of the view that what the government has undertaken is divestiture in all but name.

By Ifham Nizam

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India, Sri Lanka speakers discuss technology-driven parliamentary innovation, including AI-enabled systems

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Indian and Sri Lankan delegations meet in New Delhi (pic courtesy IHC)

Speaker of Lok Sabha Om Birla and Sri Lankan Speaker (Dr.) Jagath Wickramaratne recently discussed the possibility of expanding parliamentary cooperation through regular exchanges, formation of friendship groups, collaboration in policy and programme design and deeper engagement in technology-driven parliamentary innovation, including AI-enabled systems, real-time multilingual translation, and capacity building through Parliamentary Research and Training Institute for Democracies (PRIDE).

The discussion took place on the sidelines of the 28th Conference of Speakers and Presiding Officers of the Commonwealth (CSPOC) held in New Delhi recently.

The following is the text of the statement issued by the Indian High Commission in Colombo: ” Speaker of the Parliament of Sri Lanka (Dr.) Jagath Wickramaratne concluded his visit to India from 14-18 January 2026, for participation in the 28th Conference of Speakers and Presiding Officers of the Commonwealth (CSPOC) held in New Delhi. This was his first visit to India after assuming office. He was accompanied by Secretary-General of Parliament Kushani Rohanadeera and Assistant Director, (Administration) of the Parliament of Sri Lanka Kanchana Ruchitha Herath. Following the 28th CSPOC from 14-16 January 2026, Speaker and his delegation visited Jaipur, Rajasthan as a part of a two-day tour for CSPOC delegates from 17-18 January 2026.

The 28th CSPOC was inaugurated by Prime Minister of India Narendra Modi on 15 January 2026 at the Central Hall of Samvidhan Sadan, Parliament House Complex, New Delhi. Welcoming parliamentary leaders from across the Commonwealth, Prime Minister Modi highlighted the success of Indian democracy in providing stability, speed, and scale. He shared India’s efforts at giving voice to the Global South and forging new paths of cooperation to co-develop innovation ecosystems. He underlined the use of Artificial Intelligence by the Parliament of India to attract youth to understand Parliament. Prime Minister expressed his confidence in the CSPOC platform for exploring ways to promote knowledge and understanding of parliamentary democracy.

The conference, chaired by Lok Sabha Speaker Om Birla, convened 44 Speakers and 15 Deputy Speakers from 41 Commonwealth countries, along with representatives of four semi-autonomous Parliaments. The theme of the conference was “Effective Delivery of Parliamentary Democracy.” During the conference, participants addressed the role of Speakers in reinforcing democratic institutions, the integration of artificial intelligence in Parliamentary functions, the influence of social media on Members, approaches to enhance public engagement with Parliament, and measures to ensure the security, health, and wellbeing of Members and Parliamentary staff.

The visit marked a significant milestone in the evolving parliamentary partnership between India and Sri Lanka. Last year, two Parliamentary Delegations visited India for Orientation Programmes in May 2025 and August 2025 respectively. These visits, in line with the intent of the India – Sri Lanka Joint Statement on ‘Fostering Partnerships for a Shared Future’, further reinforce the strong democratic ethos and enduring friendship shared between the two nations.”

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Pakistan HC celebrates academic achievements of Lankan graduates

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A section of the participants at the Pakistan HC event

The High Commissioner of Pakistan in Sri Lanka hosted a special reception on Friday (16) for Sri Lankan alumni who have recently returned from their studies in Pakistan. The event, held at the Pakistan High Commission, celebrated the academic achievements of the graduates and reinforced the deep-rooted educational ties between the two nations.

The Allama Iqbal Scholarship Programme, a flagship initiative launched in 2019, has become a vital pillar of bilateral cooperation. The High Commissioner highlighted that Pakistan offers 1,000 fully funded scholarships at graduate, postgraduate, and PhD levels, with over 500 Sri Lankan students currently pursuing their education in Pakistan’s premier universities.

“Sri Lanka and Pakistan share an enduring friendship rooted in a shared history of mutual respect and culture,” the High Commissioner remarked during the address. “Education is the key to unlocking the success of your brilliant futures and creating bonds that extend well beyond the classroom”.

Addressing the alumni as “custodians” of a noble cause, the High Commissioner urged the alumni to act as brand ambassadors by sharing their knowledge to guide deserving students toward academic opportunities in Pakistan.

He emphasised their responsibility to mentor young minds, ensuring no capable student misses the chance for a promising future. Furthermore, the alumni were encouraged to take an active role in organising frequent educational and cultural engagements to inspire and enlighten others while strengthening the ties between the two nations.

The High Commissioner emphasized that each graduate serves as a “bridge” between the two countries, playing a meaningful role in uplifting Sri Lanka while further strengthening Pakistan–Sri Lanka relations. The alumni were invited to remain closely connected with the High Commission to facilitate future initiatives that strengthen people-to-people ties.

The evening concluded with a traditional Pakistani dinner, where the alumni shared stories of their academic growth and cultural experiences in Pakistan in a spirit of friendship and togetherness.

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