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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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No change in death toll, stands at 639 as at 0600AM today [11th]

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The Situation Report issued by the Disaster Management Center at 0600 AM today [11th December 2025] confirms that there has been no addition to the death toll in the past 24 hours and remains at 639. The number of missing persons has reduced by ten [10] and stands at 193.

There is a slight reduction in the  number of persons who are at safety centers and, stands at 85,351  down from 86,040 yesterday.  Five safety centers have also closed down in the past 24 hours and  873 safety centers are still being maintained.

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Regulatory rollback tailored for “politically backed megaprojects”— Environmentalists

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Investigations have revealed that the government’s controversial easing of environmental regulations appears closely aligned with the interests of a small but powerful coalition of politically connected investors, environmentalists have alleged.

The move weakens key Environmental Impact Assessment (EIA) requirements and accelerates approvals for high-risk projects, has triggered a storm of criticism from environmental scientists, civil society groups and even sections within the administration, they have claimed.

Environmental Scientist Hemantha Withanage, Executive Director of the Centre for Environmental Justice, told The Island that the policy reversal “bears the fingerprints of elite political financiers who view Sri Lanka’s natural assets as commodities to be carved up for profit.”

“This is not accidental. This is deliberate restructuring to favour a specific group of power brokers,” he told The Island. “The list of beneficiaries is clear: large-scale mineral extraction interests, luxury hotel developers targeting protected coastlines, politically backed hydropower operators, industrial agriculture companies seeking forest land, and quarry operators with direct political patronage.”

Information gathered through government insiders points to four clusters of projects that stand to gain substantially:

Several politically shielded operators have been lobbying for years to weaken environmental checks on silica sand mining, gem pit expansions, dolomite extraction and rock quarrying in the central and northwestern regions.

High-end tourism ventures — especially in coastal and wetland buffer zones — have repeatedly clashed with community opposition and EIA conditions. The rollback clears obstacles previously raised by environmental officers.

At least half a dozen mini-hydro proposals in protected catchments have stalled due to community objections and ecological concerns. The new rules are expected to greenlight them.

Plantation and agribusiness companies with political links are seeking access to forest-adjacent lands, especially in the North Central and Uva Provinces.

“These sectors have been pushing aggressively for deregulation,” a senior Ministry source confirmed. “Now they’ve got exactly what they wanted.”

Internal rifts within the Environment Ministry are widening. Several senior officers told The Island they were instructed not to “delay or complicate” approvals for projects endorsed by select political figures.

A senior officer, requesting anonymity, said:

“This is not policymaking — it’s political engineering. Officers who raise scientific concerns are sidelined.”

Another added:”There are files we cannot even question. The directive is clear: expedite.”

Opposition parliamentarians are preparing to demand a special parliamentary probe into what they call “environmental state capture” — the takeover of regulatory functions by those with political and financial leverage.

“This is governance for the few, not the many,” an Opposition MP told The Island. “The rollback benefits the government’s inner circle and their funders. The public gets the consequences: floods, landslides, water scarcity.”

Withanage issued a stark warning:

“When rivers dry up, when villages are buried in landslides, when wetlands vanish, these will not be natural disasters. These will be political crimes — caused by decisions made today under pressure from financiers.”

He said CEJ was already preparing legal and public campaigns to challenge the changes.

“We will expose the networks behind these decisions. We will not allow Sri Lanka’s environment to be traded for political loyalty.”

Civil society organisations, environmental lawyers and grassroots communities are mobilising for a nationwide protest and legal response. Several cases are expected to be filed in the coming weeks.

“This is only the beginning,” Withanage said firmly. “The fight to protect Sri Lanka’s environment is now a fight against political capture itself.”

By Ifham Nizam

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UK pledges £1 mn in aid for Ditwah victims

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Acting UK High Commissioner Theresa O’Mahony inspecting a school damaged by floods, during a visit to the Sri Lanka Red Cross operations in Gampaha.

The UK has pledged £1 million (around $1.3 million) in aid to support victims of Cyclone Ditwah, following Acting High Commissioner Theresa O’Mahony’s visit to Sri Lanka Red Cross operations in Gampaha.

“This funding will help deliver emergency supplies and life-saving assistance to those who need it most,” the British High Commission said. The aid will be distributed through humanitarian partners.

During her visit, O’Mahony toured the Red Cross warehouse where UK relief supplies are being prepared, met volunteers coordinating relief efforts, and visited flood-affected areas to speak with families impacted by the cyclone.

“Our support is about helping people get back on their feet—safely and with dignity,” she said, adding that the UK stands “shoulder to shoulder with the people of Sri Lanka” and will continue collaborating with the government, the Red Cross, the UN, and local partners in recovery efforts.

She was accompanied by John Entwhistle, IFRC Head of South Asia, and Mahesh Gunasekara, Secretary General of the Sri Lanka Red Cross.

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