News
Inquiry into what took place during yahapalana rule: COPE questions state bank over Rs. 54 bn default
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.
News
Iranian ships stranded, Lanka fears US sanctions
‘Companies may face US sanctions’: Lanka to put ‘national interest’ first as 19 Iranian vessels seek help
(ToI) Sri Lanka said on Friday it would “prioritise our national interests” before providing assistance to the crews of 19 Iranian ships anchored in international waters near the island nation.The crews are facing shortages of food, water and fuel. A foreign ministry spokesperson cited the risk of US sanctions against Sri Lankan companies supplying the vessels as a key concern.
The United States and Iran have been at war since February 28, when the US and Israel launched joint strikes against the Islamic Republic.
“Sri Lanka will put its national interest first before considering any help, and the companies that supply ships are aware of possible secondary sanctions from the United States,” spokesperson Thushara Rodrigo told reporters, ruling out any immediate assistance to the vessels.
Rodrigo clarified, however, that Sri Lanka had received no communication from the United States warning of repercussions if it decided to assist the vessels.According to Rodrigo, the ships are stationed 24 nautical miles off Sri Lanka’s coast.The Iranian Embassy said it had no information on the matter.
In March, a US torpedo attack sank the Iranian naval vessel IRIS Dena in Sri Lankan waters, killing 87 sailors.
The ship was returning to Iran after participating in a naval exercise at India’s invitation. A second Iranian vessel was brought to a Sri Lankan port after its crew reported technical problems.
Wounded sailors were treated at Sri Lankan hospitals, while those rescued from the second vessel were safely repatriated to Iran.
Sri Lanka is still recovering from an economic crisis, with both the United States and Iran serving as important trading partners. Washington played a key role in securing an International Monetary Fund bailout and supporting Sri Lanka’s agricultural sector to help avert a food crisis.
News
Sri Lanka CERT warns of overseas university admission scams
Sri Lanka CERT has warned the public of fraudulent social media advertisements offering admission to foreign universities after receiving complaints from parents and students who have lost hundreds of thousands of rupees to scammers.
The fraudsters reportedly pose as representatives of reputed foreign universities, promising admission, student visas, work permits and even eventual citizenship in return for registration fees and initial tuition payments.
They use convincing videos, photographs and documents circulated via email and WhatsApp to gain the confidence of unsuspecting victims before asking them to transfer money to foreign bank accounts. The scammers then disappear after receiving the payments, Sri Lanka CERT said.
The agency has urged prospective students and their parents to verify the authenticity of university representatives, documents and bank account details before making payments, and to seek overseas education opportunities only through legitimate and recognised channels.
News
Navi Pillay’s Lankan affairs in focus as she wins 2026 Nobel Peace Prize
Former UN High Commissioner for Human Rights and International Court of Justice judge Navanethem “Navi” Pillay has won the 2026 Nobel Peace Prize for her contribution to international law and efforts to promote peace, the Norwegian Nobel Committee announced in Oslo on Friday.
Announcing the award, committee chairman Jørgen Watne Frydnes said Pillay had “significantly enlarged the scope and impact of international law” and helped advance “a more comprehensive global legal order” with exceptional courage. He also praised her long career, which began as a lawyer confronting deep-rooted discrimination in South Africa, and described her as a person with a “firm moral compass”.
Pillay, 85, served as the UN High Commissioner for Human Rights from 2008 to 2014. Her tenure brought her into sharp focus in Sri Lanka, particularly over her assessment of the country’s human rights situation in the aftermath of the decades-long civil war.
During an official fact-finding visit to Sri Lanka from August 25 to 31, 2013, Pillay travelled to areas including Jaffna, Kilinochchi and Trincomalee, where she met civil war survivors, families of the disappeared and local communities.
Following the visit, she warned that Sri Lanka was moving towards authoritarianism and highlighted what she described as a persistent climate of fear.
She also reported intimidation and harassment of people who had sought to meet her during the mission.
Pillay urged the UN Human Rights Council to establish an international inquiry mechanism to investigate alleged war crimes and crimes against humanity committed by both government forces and the LTTE during the final stages of the 26-year civil war.
Her observations and recommendations became a significant part of international scrutiny of Sri Lanka’s post-war human rights record.
The Norwegian Nobel Committee received 287 nominations for this year’s Peace Prize, slightly more than a quarter of them being organisations. The committee traditionally considers efforts to promote peace, international fraternity and institutions that contribute to lasting stability.
Last year, Venezuelan opposition leader Maria Corina Machado won the prize for her campaign for a democratic transition in Venezuela. She was praised as a woman who kept the flame of democracy burning amid growing darkness.
The 2026 award marks the 125th anniversary of the Nobel Peace Prize, first presented in 1901. Over its history, the prize has recognised prominent figures and organisations involved in advancing peace, human rights and international cooperation.
-
News7 days agoGeneva takes up Sallay’s case and govt. ignores opportunity to answer accusations
-
Features6 days agoPreventing grievances from becoming communal
-
Features4 days agoThe Sri Lankan who made Scottish history
-
Sports4 days agoNissanka absence opens door for Sri Lanka’s young guns
-
News5 days agoGnansara Thera to be assigned to prison printing section: Officials
-
Features7 days agoSri Lanka Cricket Bill: Governance reform is not yet a cricket strategy
-
News3 days agoNDB fraud Rs 60mn more than reported
-
Features4 days agoFuture of Sri Lanka’s state university system: Should it be shut down and reopened?
