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Lanka Sathosa Chairman says he was neither sacked nor was there a ‘rice scandal’
by Suresh Perera
The purported “sacking” of the Lanka Sathosa Chairman over what was described as a “scandal” in the procurement of rice captured intense media attention, but Nushad Perera, who headed the country’s biggest retail chain, dismissed the claims as “bunkum”.
“I was neither sacked as Chairman nor was there a ‘rice deal’, as claimed”, he said last week.
He said that he resigned on December 31, 2020, to take up his new appointment as Chairman of the Sri Lanka Standards Institution (SLSI) as the President wanted him to build up the national standards body to broad-base benchmarking the country’s export sector.
As a marketing professional, Perera earlier served for two decades as a member of the senior management team of Dialog Group and was also the founding CEO of Dialog TV.
He was appointed Chairman of Lanka Sathosa and the affiliated CWE (Cooperative Wholesale Establishment) by the President on January 1, 2020.
“I opted to resign as CWE Chairman on November 30 to dedicate more time to Lanka Sathosa to keep the wheels turning to ensure a steady supply of consumer essentials through the retail chain’s 416 outlets especially at a time the country is grappling with a pandemic”, Perera explained.
“We have to be fully operational to face the challenge”, he underscored.
As Chairman of the two institutions, he had to also attend board meetings every two weeks, which made it difficult to cope with the workload.
He said that he didn’t accept a remuneration as the head of the CWE. At Lanka Sathosa, he was paid Rs. 100,000 per month but largely used his private vehicle.
Asked about the Lanka Sathosa Chairman’s exit, Trade Minister Bandula Gunawardena said there was nothing amiss as the heads of the SLSI and EDB (Export Development Board) were also replaced.
“The heads of three institutions under my Ministry were changed in keeping with national priorities”, he told The Sunday Island.
Asked about allegations of irregularities in rice imports on the Lanka Sathosa Chairman’s watch, the Minister said that such claims were baseless. “There was nothing of that sort – it’s a figment of imagination”.
“The Chairman alone cannot decide on procurements”, Perera stressed.
There is a six-member procurement committee, including the Chairman, Secretary to the Trade Ministry and a treasury representative, which decides on purchases. This is followed by another three-member technical committee which evaluates the quality of the commodities to be procured, he explained.
In the case of rice, purchases are made locally by the procurement committees on the basis of 750 metric tons, which works out to one week’s requirement, Perera outlined.
Asked how a Fellow of the Chartered Institute of Marketing (FCIM), who was named ‘CIM Marketer of the Year’ in 2001 and awarded the coveted ‘Global Brand Leadership Award’ at the Asia Brand Congress in 2007, could fit into a scientific body, he said the SLSI can be better marketed as a productive tool to the private sector.
“We need to take this national certification body to the private sector in a big way as the quality of all commodities including fruits and vegetables will have to be SLSI certified for the export market”, he said.
“There’s a lot of work to be done there after I assume duties on January 1, 2021”, Perera added.
To be appointed Sathosa Chairman is akin to being asked to sit on a smoking volcano, industry officials quipped.
Whatever the dispensation, there’s bound to be tremendous pressure from various ‘interest groups’ eager to make a quick buck, they said.
Under the former UNP regime, it was like a game of musical chairs with heads rolling so often that the question jocularly asked was ‘who would be this week’s chairman?’, they recalled.
There were a few Chairmen with integrity, the officials recounted, referring to renowned marketing expert, Dr. Rohantha Athukorala, who collected his laptop, flagged down a three-wheeler and pushed off home (leaving behind his official vehicle) when asked to do what was considered unethical during Minister Rishad Bathiudeen’s time.
It’s a case of old wine in new bottles, they laughed. “Jockeys may come and go but the old horses in the stables know how the cookie crumbles”.
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Complete all projects funded under the LKR. 500 bllion allocation for Ditwah within this year – President
President Anura Kumara Dissanayake emphasised that both the political authority and public officials have a responsibility to ensure that the LKR. 500 billion allocated by the Government in response to Cyclone Ditwah is utilised effectively and efficiently for the recovery and development of the affected communities and areas. The President further stressed the need to complete all related projects before the end of this year.
The President also pointed out that the Government has already taken steps to transform the culture in which the law was selectively enforced based on power, wealth and political connections and to establish a new culture where all citizens are equally subject to the law. The President noted that certain groups are attempting to portray the creation of a law-abiding society as a major crisis, but stressed that, in building a civilised nation, it is essential to create a society in which everyone is accountable under the law.
President Anura Kumara Dissanayake made these remarks while attending the Special District Coordination Committee Meeting for Matale held on Tuesday (12) morning at the Veera Keppetipola Hall in Matale.
The President further emphasised that the law should not be regarded as an obstacle preventing public officials from properly discharging their duties. He called upon all officials to remain fully committed to rebuilding the lives of the people by working within the legal framework and ensuring that public funds are utilised in a planned, efficient and productive manner.
During the meeting, the President also conducted an extensive review of the progress of compensation payments for the loss of lives and property caused by Cyclone Ditwah, as well as the measures taken to restore housing and normalcy to affected communities.
Officials stated that the compensation allowances of LKR 25,000 and LKR 50,000 granted to families affected by Cyclone Ditwah have now been fully disbursed within the Matale District. They further noted that the student assistance allowances of LKR 15,000 and LKR 10,000 have also been fully paid.
Officials also informed the meeting that the disaster had caused complete damage to 254 houses and partial damage to 3,829 houses within the district. Compensation payments have already been completed for all houses eligible to receive assistance without a formal assessment, while assessment procedures for the remaining houses are currently underway.
Extensive discussions were also held regarding alternative solutions to issues arising from various circumstances, including the lack of land ownership, the location of properties within high-risk zones and occupation of protected reserve areas. The meeting further discussed possible amendments to the existing criteria in order to expedite these processes.
The President also reviewed the progress relating to compensation payments for lives lost due to the disaster, compensation for families relocated from high-risk areas, the provision of housing rent allowances, the issuance of National Building Research Institute (NBRI) reports, as well as the progress of housing construction and land acquisition activities.
The President emphasised the necessity of relocating all families currently residing in high-risk areas affected by Cyclone Ditwah. Highlighting the importance of formulating the necessary legal provisions in this regard, the President instructed officials to treat the resettlement of these families in safer locations as a priority matter and to expedite the process.
The President also inquired into the measures being taken to care for children who lost their parents due to the cyclone and to safeguard their future. The President instructed officials to prepare individual support programmes for each affected child and refer them to the Ministry of Women and Child Affairs.
Issues affecting the school system within the district were also discussed during the meeting. The President highlighted the importance of releasing the relevant lands and constructing school buildings in line with the plan being implemented under the Ministry of Education for the relocation and restoration of the school system.
In addition, the President reviewed the progress of the road development programme in the Matale District relating to roads damaged by Cyclone Ditwah.
Officials stated that 16, A and B grade roads and two bridges in the Matale District were damaged by the cyclone. They further noted that reconstruction work on all 16 roads and one of the bridges has now been completed, while discussions were held regarding the expedited reconstruction of the remaining Moragahakanda Bridge as a permanent structure.
The President also inquired into the progress of construction work on the Riverston Road, which is of significant importance to the tourism industry, as well as the Galewela–Matale road project, which has remained a long-standing issue. He instructed officials to expedite the completion of both projects.
The meeting also reviewed the progress of restoration work relating to roads, bridges, culverts and water projects under local government authorities in the Matale District that were damaged by the disaster.
In addition, discussions were held regarding the compensation process under the Ministry of Industry for businesses in the service sector, the tourism sector and the mining sector that suffered losses due to the disaster, as well as the challenges that have arisen in implementing the compensation programme.
The President also reviewed the measures taken to restore the agriculture and livestock sectors. He noted that the Government has placed special emphasis on promoting rural agriculture, with a focus on developing a production-driven economy.
Discussions were also held on the Matale Urban Development Plan implemented under the 2026 Budget allocations, as well as the project to relocate the Dambulla Hospital. The President stressed the importance of ensuring that these initiatives are implemented within the stipulated timeframe and that their benefits are effectively delivered to the public.
The meeting was attended by the Chairman of the Matale District Coordinating Committee and Deputy Minister of Buddhasasana, Religious and Cultural Affairs, Gamagedara Dissanayake, Co-Chairman and Governor of the Central Province, Professor Sarath Abayakon, Members of Parliament Sunil Biyanwila and Dinesh Hemantha and the Chief Secretary of the Central Province, Ajith Premasinghe, along with local government representatives. Also present were the Commissioner General of Essential Services and Chief of Staff to the President, Prabath Chandrakeerthi, Secretary to the Ministry of Defence, Air Vice Marshal Sampath Thuyacontha (Retired), Matale District Secretary, L.P. Madanayaka, senior officials from relevant departments, representatives of the security forces and other state officials.
(PMD)
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Development projects should be carried out in line with the practical needs of the people – PM
Prime Minister Dr. Harini Amarasuriya instructed officials to implement development projects by taking into account the practical needs of the people.
The Prime Minister made these remarks at the Colombo District Planning Committee meeting held on Tuesday (12) at the Colombo District Secretariat to review the progress of development projects in the Colombo District.
During the meeting, discussions focused on a number of development projects scheduled to be implemented in 2026 and 2027, with special attention given to rural road development, alleviation of poverty, and infrastructure development.
Under the Decentralized Budget Programme, more than Rs. 195 million has been allocated for 2026, and Members of Parliament representing the district have submitted their proposals accordingly. To date, 240 project proposals have been received through Divisional Secretaries, and approval has already been granted for 126 projects valued at Rs. 127 million.
An allocation of Rs. 100 million has been made to ensure the safety of the roads in the Colombo District, with priority given to installing safety barriers and traffic signboards in hazardous locations. In addition, officials stated that plans have been prepared targeting 2027 to construct rural bridges with an allocation of Rs. 100 million and to develop 50 kilometres of roads.
A sum of Rs. 1,036 million has been allocated for the “Praja Shakthi” programme aimed at alleviation of poverty, and the Prime Minister instructed officials to complete all related projects by 30 November 2026. Further, discussions were also held regarding the development of school playgrounds with the support of the Ministry of Sports, as well as the implementation of special projects under the Ministry of Buddhasasana and Environment.
The meeting was attended by the Minister of Justice Harshana Nanayakkara, Deputy Speaker Dr. Rizvie Salih, Colombo District Coordinating Committee Chair and Member of Parliament Lakshman Nipuna Arachchi, Members of Parliament Samanmalee Gunasinghe and Asitha Niroshana, Colombo District Secretary Ginige Prasanna Janaka Kumara, along with public representatives and government officials representing the Colombo District.
[Prime Minister’s Media Division]
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Ex-SriLankan CEO’s death: Controversy surrounds execution of bail bond
Prof. Prathibha Mahanamahewa has emphasised the need to examine the circumstances under which the court staff executed the bail bond, and the release process, in respect of the late Kapila Chandrasena, former Chief Executive Officer of SriLankan Airlines.
Chandrasena’s body was found in a house at Pedris Road, Colombo 03.
In case of any doubt regarding bail condition/s or any other matter (insufficient surety, identity issues, suspicious documents and unclear order), the Registrar had to get in touch with the relevant Magistrate, Mahanamahewa said.
Mahanamahewa was responding to The Island query regarding the acceptance of two Muslims as sureties. Had they followed the time-tested procedure, court registry/registrar staff would never have accepted sureties as blood relatives of Chandrasena, Mahanamahewa said, alleging a major defect in the execution of the bail bond.
They were arrested by police and remanded by the Colombo Magistrate’s court, till 13 May, pending further investigations.
Colombo Chief Magistrate Asanga S. Bodharagama, on 5 May, granted to Chandrasena cash bail of Rs. 500,000 and three surety bails of Rs. 10 million each. But soon after Chandrasena received bail, the court was told that two of the Rs. 10 million sureties had been produced, after payment of Rs. 15,000 each, were made to those two individuals to act as guarantors.
The bail application had been submitted by Rienzie Arsecularatne, PC, appearing on behalf of Kapila Chandrasena, when the case was earlier taken up, on 28 April.
Police also arrested an elderly person who arranged for the two persons who hadn’t even seen Chandrasena, even once, to offer themselves as sureties.
As soon as the police revealed the fraudulent manner Chandrasena obtained bail, Chief Magistrate Bodharagama issued an order to arrest and produce him before the court. This order was issued consequent to a request made by the Commission to Investigate Allegations of Bribery or Corruption (CIABOC), on the grounds that the defendant had violated bail conditions. The CIABOC wanted Chandrasena held pending the conclusion of the case.
Sources familiar with the execution of bail bond said that the moment the suspects had submitted their National Identity Cards and letters from Grama Sevakas, the court registry/registrar staff should have rejected them. In a such high-profile case, the failure on the part of the lawyers, representing Chandrasena, to check the gsureties’ relationship with Chandrasena, was another glaring shortcoming, sources said, pointing out that after having submitted bail application on 28 April, the defence team should have come prepared to put forward genuine guarantors.
The Island contacted the Bar Association of Sri Lanka for comment on the manner in which the court staff had handled bail for Chandrasena, but there was no response.
Sri Lanka’s former Ambassador to Moscow, accredited to Kiev, Udayanga Weeratunga, said that a thorough investigation should be conducted to ascertain facts about the execution of the bail bond. Asked whether he had been in touch with Chandrasena, Weeratunga said that he spent his first day at Welikada with Chandrasena and Ranjan Ramanayake in one cell. “That happened on 14 February, 2020. I was arrested when I returned to the country, from the UAE, and produced before the then Magistrate Ranga Dissanayake, the incumbent Director General of CIABOC,” Weeratunga said.
Weeratunga said that a couple of months after the change of government in 2024, the US State Department imposed a travel ban on him and Chandrasena and their families over what the US termed as significant corruption.
Weeratunga said that altogether the US designated 14 persons and, of them, two were Sri Lankan, who happened to be him and Chandrasena, accused of corruption in respect of acquisition of MiG 27s from Ukraine and the Airbus deal, during President Mahinda Rajapaksa’s tenure as the President.
SLPP sources said that Chandrasena’s demise shouldn’t prevent proper investigation on his affidavit that claimed pressure brought on him to name Mahinda Rajapaksa as a recipient of the Airbus bribe.
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