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MCC inconsistent with Constitution

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AG agrees with Prof. Gunaruwan report

By Shamindra Ferdinando

Attorney General Dappula de Livera, PC, has informed President Gotabaya Rajapaksa that the Millennium Challenge Corporation (MCC) Compact, Project Implementation Agreement, as well as Articles of Association of MCA (Millennium Challenge Act), Sri Lanka, are violative of cerain provisions of the Constitution.

The AG has said so in a 20-page report sent to Dr. P.B. Jayasundera, Secretary to the President.

The President’s Office on Sept. 3, 2020, sought the AG’s opinion on the MCC Compact and related matters in the wake of the Cabinet-appointed Prof. Gunaruwan Committee strongly advising against going ahead with the US initiative. The US sought Sri Lanka’s consent for the Acquisition and Cross Servicing Agreement (ACSA), Status of Forces Agreement (SOFA) and MCC. The previous government finalised ACSA in early August 2017.

Dr. Jayasundera made available the Gunaruwan report to the AG.

The outgoing US administration in Dec 2020 announced Sri Lanka had been left out of the MCC project.

AG’s Coordinating Officer State Counsel Nishara Jayaratne confirmed the MCC et al were inconsistent with the Constitution and other laws.

The Island,

 however, learns that the AG’s Department on two previous occasions, in letters dated Oct 10, 2018 and June 10, 2019, addressed to Jonathan G. Nash, Chief Operating Officer, MCC, and Director General, External Resources Department, respectively, asserted that the Compact and the Programme Implementation Agreement (PIA) were in line with the Sri Lankan law.

The first letter was sent during Jayantha Jayasuriya’s tenure as the AG and the second under incumbent AG without his approval, sources said. Dappula de Livera succeeded Jayasuriya in April 2019 about a week after the April 21 Easter Sunday carnage. Jayasuriya is the incumbent Chief Justice.

Prof. Gunaruwan’s Committee soon after the last presidential election in Nov 2019 failed to obtain the AG’s Department opinion in spite of making representations through the Prime Minister’s Office.

In the run-up to 2019 parliamentary election, then Finance Minister Mangala Samaraweera said the Attorney General had approved the US project though the Sri Lanka Podujana Peramuna (SLPP) called it a sell-out.

The following is the text of the letter dated Oct 10, 2018 captioned ‘Legal Status of Proposed MCC Compact signed by Sanjay Rajaratnam, PC, Senior Additional Solicitor General, addressed to Jonathan G. Nash, Chief Operating Officer, MCC:

“I refer to your communication dated 27th September, 2018 in respect of the above captioned matter. In this regard, I am made to understand that the delegation from the Government of Sri Lanka was able to have fruitful discussion with the Millennium Challenge Corporation Team in resolving some of the outstanding issues.

“Having gleaned through the proposed Millennium Challenge Compact, the draft Program Implementation Agreement (PIA) as well as the Points of Discussion (without prejudice) between the negotiating parties which has been made available to me, I wish to at the very outset opine that no existing laws of Sri Lanka inhibit the Compact and the PIA being implemented in Sri Lanka. If I may elucidate further, the covenants of the Compact and the PIA do not infringe any existing domestic law or any previous undertakings given by the Government of Sri Lanka. It is acknowledged that the Compact imposes legal obligations on both parties to the Agreement

“Further, consequent to the negotiations and discussions had between parties, it is proposed that the Government of Sri Lanka would seek the passage of a law in Parliament to establish the MCA- Sri Lanka as a non-profit Company limited by guarantee under the Companies Act No.07 of 2007 to implement the provisions of the Compact. It is envisaged that the proposed enactment would encompass the Compact and the PIA as Annexures, which would form an integral part of this enactment.

“Thus, I am of the view that the passage of the said enactment by Parliament would result in the Compact and the PIA, having the parity of status of a domestic law in Sri Lanka.

“In the Context of the above, it is requisite that Section 7.1 of Article 7 of the Compact referring to the provisions on Entry Into Force, would be revised with the deletion of the sentence pertaining to the Compact prevailing over the domestic laws of Sri Lanka.

“However, in order to assuage any concerns with regard to the implementation of the Compact, by an unlikely event of a legislation in the future which may impinge or infringe the said compact, upon notification by the Ministry of Finance and Mass Media (the relevant Ministry) of this fact, a legal opinion would be tendered that the proposed legislation if proceeded with would violate the covenants of the Compact. This would enable the relevant Ministry to forward its observations to the Cabinet of Ministers and Parliament, that the Attorney-General has opined that the proposed Bill if enacted would violate the Compact.

“In the circumstances, I believe that the aforementioned matters would confirm the legal status of the Compact and its entry into force.”

“Copies were sent to Ms. Caroline Nguyen, Managing Director- Europe, Asia Pacific and Latin America Millennium Challenge Corporation and J. Charitha Ratwatte, Head of Policy Development and Chief of Party MCC- Sri Lanka Project.”



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Sun directly overhead Chilaw, Bingiriya, Halmillawewa, Panduwasnuwara, Gokarella, Kawudupelella, Koppaveli and Kirankulam about 12:12 noon. today (09)

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On the apparent northward relative motion of the sun, it is going to be directly over the latitudes of Sri Lanka from the 05th to 15th of April  this year.

The nearest areas of Sri Lanka over which the sun is overhead today (09th) are Chilaw, Bingiriya, Halmillawewa, Panduwasnuwara, Gokarella, Kawudupelella, Koppaveli and Kirankulam about 12:12 noon.

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Heat Index at Caution Level in the  Western, Sabaragamuwa, Southern, Eastern, North-western, Northern and North-central provinces and in Monaragala district

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Warm Weather Advisory
Issued by the Natural Hazards Early Warning Centre
Issued at 4.30 p.m. on 08 April 2026, valid for 09 April 2026.

The Heat index, the temperature felt on human body is likely to increase up to ‘Caution level’ at some places in the  Western, Sabaragamuwa, Southern, Eastern, North-western, Northern and North-central provinces and in Monaragala district.

The Heat Index Forecast is calculated by using relative humidity and maximum temperature and this is the condition that is felt on your body. This is not the forecast of maximum temperature. It is generated by the Department of Meteorology for the next day period and prepared by using global numerical weather prediction model data.


Effect of the heat index on human body is mentioned in the above table and it is prepared on the advice of the Ministry of Health and Indigenous Medical Services.

ACTION REQUIRED
Job sites: Stay hydrated and takes breaks in the shade as often as possible.
Indoors: Check up on the elderly and the sick.
Vehicles: Never leave children unattended.
Outdoors: Limit strenuous outdoor activities, find shade and stay hydrated.
Dress: Wear lightweight and white or light-colored clothing.

Note:
In addition, please refer to advisories issued by the Disaster Preparedness & Response Division, Ministry
of Health in this regard as well. For further clarifications please contact 011-7446491.

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AG: Coal procurement full of irregularities

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AG S. Jayarathne

The Auditor General has warned that delays in coal procurement and continued reliance on suppliers of questionable standards could disrupt the supply of electricity.

The special audit report on coal imports was presented to Parliament on Tuesday (07) by Bimal Ratnayake, Leader of the House, at the commencement of proceedings.

However, Opposition MPs complained to Speaker Dr Jagath Wickramaratne that copies of the report had not been distributed to Members of Parliament. Responding to the complaint, the Speaker said it was the responsibility of the Parliamentary Secretariat to ensure the report was provided to MPs.

The special audit, requested by the Committee on Public Enterprises (COPE), examined the coal procurement process of the Lanka Coal Company for the Lakvijaya Power Plant and purchases planned for the 2025/2026 season.

The audit revealed several irregularities in the tender process. It found that the laboratory issuing quality reports at the loading port for the controversial supplier Trident Company had its licence cancelled. The report also disclosed that at the time advertisements were published calling for tenders,the company had not completed its registration but was awarded the tender. In addition, three other suppliers who had not confirmed their registration were allowed to submit bids.

Coal shipments for the Lakvijaya Power Plant are tested at both loading and unloading ports. According to the audit, Mitra SK South Africa had been appointed to conduct testing at the loading port, but due to the absence of accreditation the task was assigned to PT Mitra SK Analisa Testama Samarinda, an Indonesian firm whose licence had been cancelled on December 29, 2025. Auditor General S. Jayarathne has noted that the audit could not confirm whether the licence had been renewed by March 31, 2026, and that all 12 shipment reports issued at the loading port lacked accreditation.

The report has further pointed to discrepancies between loading port laboratory reports and data recorded at the plant’s main control unit. Despite the availability of alternative verification methods, the Lanka Coal Company failed to use them to confirm the accuracy of the reports.

The audit also highlighted that no coal shipments were brought to Sri Lanka between November 13 and December 30, 2025, despite the need to secure maximum stocks during that period.

As a result of the shortage, an emergency procurement was carried out on March 18 this year, selecting Taranjot Resource Pvt Ltd. as the supplier. However, the Auditor General revealed that this company had failed within the previous 36 months to supply coal with the required calorific value of 5,900 or above to the Lakvijaya Power Plant.

The report warns that delays in coal imports and dependence on suppliers with questionable standards could adversely affect the continuous supply of electricity from the plant.

The National Audit Office of Sri Lanka has further estimated that the use of substandard coal has caused losses amounting to nearly Rs. 2.24 billion.

According to the report, losses incurred from individual shipments included more than Rs. 160 million from the first vessel (consignment No. 456), over Rs. 90 million from the second vessel (No. 457), more than Rs. 310 million from the third vessel (No. 458), and over Rs. 150 million from the fourth vessel (No. 459). Additional losses included nearly Rs. 180 million from the fifth vessel (No. 460), about Rs. 30 million from the sixth vessel (No. 461), over Rs. 240 million from the seventh vessel (No. 462), more than Rs. 390 million from the eighth vessel (No. 463) and over Rs. 390 million from the tenth vessel (No. 464).

The report has also noted that because the available coal stocks cannot generate electricity at the plant’s full capacity of 300 megawatts, additional power may have to be obtained from alternative sources. The estimated additional energy requirement for this purpose is 76,354,087 kilowatt-hours, the report has pointed out.

By Saman Indrajith

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