News
“Move to hand over Sevanagala Sugar Co. to Daya G alleged”: PMD responds
Dhanushka Ramanayake, Director General (Media) of the President’s Media Division (PMD) has sent us the following clarification:
“The attention of President’s Media Division has beenbrought to the news item on pages 01 and 02 of The Island newspaper dated 30.10.2023, titled “Move to hand over Sevanagala Sugar Co. to Daya G alleged.”
Mr. Daya Gamage, a Sri Lankan entrepreneur and an active member of the United National Party under the leadership of President Ranil Wickremesinghe, is closely associated with politics. This connection highlights that any insinuation of a “conflict among allies” in the news, whether intentional or inadvertent, is misleading and based on incorrect information.
In the spirit of our mutual commitment to delivering accurate information to the public, we wish to present the correct details regarding the news piece in The Island newspaper from 30.10.2023, titled ‘Move to hand over Sevanagala Sugar Co. to Daya G alleged.’
No decision or proposal has been made to transfer Sevanagala Sugar Company to Daya Group.
As per the report in The Island newspaper, the Sevanagala Sugar Factory was brought under government ownership through the Revival of Underperforming Enterprises or Underutilized Assets Act No. 43 of 2011. This act also facilitated the government’s acquisition of several financially struggling institutions, including the Pelwatta Sugar Factory, Hilton Hotel and Grand Hyatt Hotel.
At the time of this acquisition, the investment in the Sevanagala Sugar Factory was attributed to the Daya Group Company, which is owned by Mr. Daya Gamage, a notable Sri Lankan entrepreneur. In cases where financial losses were incurred by investors due to the government takeover of these struggling businesses a designated assessment committee was appointed. The provisions of the same act were invoked to determine and provide compensation where warranted.
Consequently, compensation was disbursed to the companies taken over by the government. However, in the case of the Sevanagala Sugar Company, no compensation was forthcoming due to specific technical issues.
In response to this situation, Mr. Daya Gamage, as the investor in the Sevanagala Sugar Company, initiated three legal proceedings to seek compensation or the return of the property. He expressed his willingness to regain ownership and resume business operations without requiring compensation as an alternative resolution.
The government’s decision in this matter was to provide compensation rather than returning the property. In response, employees at the Sevanagala Sugar Company filed two fundamental rights cases in the Supreme Court, both of which are currently awaiting resolution.
To calculate the compensation owed to the investor for the handover of the Sevanagala Sugar Company to the government a Compensation Commission was re-established. This commission’s task is to assess the losses suffered by the investor encompassing property not only the immovable property of the Sevanagala Sugar Company but also considering the business losses incurred due to the acquisition of specific motor vehicles, machinery and equipment meant for its further development.
The Compensation Commission is chaired by the Chief Valuator of the Government and includes two retired Chief Appraisers from the Government Valuation Department as members. They are responsible for conducting the compensation calculations. To maintain transparency throughout this process, the investor has been granted approval by the cabinet to appoint a monitor.
As it stands, the government’s decision is to compensate the investor for property acquisition losses and business losses determined by the Compensation Commission. No proposal or decision has been made regarding the reversion of the property, and such a proposal has not been approved by the Cabinet.
In an effort to ensure transparency in government property disposal, a new Public Enterprises Reform Unit has been established, with criteria approved by the Cabinet. If the property is to be re-disposed, it will be done through a transparent tender process following these established guidelines.
It’s important to note that the government has not chosen to return the property to the previous investor through any other procedure and an additional related case is still pending in court.
In the spirit of providing a fair platform for all information, I kindly request that you give the same level of publicity to this accurate account as you did to the initial news in the newspaper.
The Purawesi Balaya organisation yesterday (24) lodged a complaint with the Commission to Investigate Allegations of Bribery or Corruption, requesting an investigation into the alleged overpayment of Rs. 200 million in detention charges for 40 container trucks used in the removal of waste from the distressed ship X-Press Pearl.
According to the complaint, the waste from the ship was transported from a temporary yard in Wattala to the storage yard in Pamunugama using 40 containers, for which an excessive amount — approximately Rs. 200 million — had been paid as detention fees. This information has reportedly been included in the 2021 annual report of the Marine Environment Protection Authority
(MEPA), as cited in a report submitted to Parliament by the National Audit Office.After lodging the complaint Purawesi Balaya Chairman Jamuni Kamantha Thushara said that they hoped the CIABOC would conduct a thorough investigation into the matter.
By Sujeewa Thathsara
The main suspect in the shooting and killing of political activist Dan Priyasad had been arrested, the police said yesterday. Investigators suspect that notorious Mohommad Najim Mohommad Imran alias Kanjipani Imran, who is taking refuge in Dubai, ordered Priyasad’s killing.
The suspect is a resident of Wellampitiya.
The convenor of the “Nawa Sinhale National Movement” and political activist, Dan Priyasad, was fatally shot at the ‘Laksanda Sevana’ Housing Complex in Wellampitiya on Tuesday (22) night. He was initially admitted to the Colombo National
Hospital with gunshot wounds, but passed away shortly after due to the severity of his injuries. Priyasad was reportedly shot four times—twice in the chest and twice in the shoulder. Additionally, another individual who sustained minor injuries during the incident is also currently receiving treatment in hospital.
It is reported that two individuals, who had arrived on a motorcycle, fired multiple shots using a pistol before fleeing the scene.
As of yesterday evening police had taken into custody seven persons including two women for questioning related to Priyasad’s murder.
According to police, the contract was arranged by a three-wheeler owner named Dulan, also a resident of Wellampitiya. Dulan is currently in police custody and has provided investigators with key information. It was revealed that Dulan is related to the father and son duo who are the main suspects in a previous case involving the murder of Dan Priyasad’s younger brother. Dulan reportedly informed them that Dan continued to harass him.
The conflict reportedly escalated on April 20, when Dan Priyasad allegedly assaulted Dulan during an altercation in Wellampitiya, also damaging his three-wheeler with a sharp weapon. Dulan later discussed the incident with the father and son, who in turn contacted underworld criminal Grandpass Danushka in Dubai. Danushka, a close associate of Kanjipani Imran, informed him of the issue as well.
Imran, who reportedly had his own grudge against Dan Priyasad, allegedly agreed to support the murder plan and instructed that two contract killers be engaged to carry out the hit.
Dulan did not complain to the police about damage to his three-wheeler but instead had another individual file a complaint on his behalf — believed to be an attempt to distance himself from the murder plot.
The assassination was initially planned for April 21 in front of the Wellampitiya Police Station, when Dan Priyasad was expected to appear in relation to that complaint. However, he did not show up, and the attempt failed. Later that night, the killers struck while Dan was at a family gathering.
So far, police have questioned nearly 20 individuals in connection with the case. A special police team has been deployed to locate the missing father and son, but multiple searches of suspected hideouts have yielded no results.
By Norman Palihawadane and Hemantha Randunu
The government has declared April 26, 2025 (Saturday), a National Day of Mourning in view of late Pope Francis’ funeral, the Ministry of Public Administration announced.
Pope Francis’ funeral has been scheduled for Saturday in front of St. Peter’s Basilica, the Vatican announced following a meeting of the College of Cardinals at the Catholic Church’s city-state headquarters in the heart of Rome.
The coffin carrying the pope, who died Monday morning after suffering a stroke and heart failure at the age of 88, was brought in a procession on Wednesday morning to the basilica from his residence at Casa Santa Marta, where he died.
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