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Police arrest Krrish CEO over financial fraud links
ECONOMYNEXT –The head of the controversial Krrish development, Janaki Siriwardhana, was arrested Friday in connection with a multi-billion-rupee fraud that also involved sex, lies, video tapes and blackmail.A top police source said Siriwardhana was arrested following extensive investigations into a scam operated by her close associate Thilini Priyamali who is already in remand custody.
Hours before the latest arrest, police investigators said they had evidence that an eye watering 600 million rupees had been given to Wesley Keerthi Kumara, a “kapuwa”, or shaman in Galle by the two women.
The staggering cash was ostensibly the fee for a ritual to boost flagging apartment sales at Krrish, now known as “One Transworks Square,” an investigator said adding that they were flabbergasted by the amount of cash that had changed hands.
“This is the claim, but what was actually taking place was a systematic money laundering operation,” an investigator said asking not to be named.
He said a powerful political figure was known to be a close business associate of Siriwardhana who had directed gullible businessmen and women to Priyamali and her scams. Former Colombo mayor Azath Salley has lodged a complaint that he was introduced to Priyamali by Janaki Siriwardhana and has been demanding her arrest for weeks.
Businessman Clarence Kumarage who is known to have bought doctorates and knighthoods from dubious organisations has parted with some 750 million rupees believing that he was investing it in a money doubling venture.
Priyamali was allegedly selling dollars at below market price and when greedy businessmen gave her huge amounts to buy more dollars at her unbelievably low rate, she decamped with the cash. Those who came after her were either silenced through blackmail or given fake gold bars.Buddhist monk Borelle Siri Sumana who warned Kumarage that his cash, stashed in a suit case, was giving out bad vibes and that it should be “invested” with Priyamali was arrested on Thursday on a charge of aiding and abetting financial fraud.
Police believe that they will be able to get at powerful figures behind Priyamali following the arrest of Siriwardhana, the alleged conduit for money laundering transactions.Both Siriwardhana and Priyamali are known to have been frequent visitors to Temple Trees when Mahinda Rajapaksa was president. Victims have told police they were scammed into thinking that the Rajapaksa family backed them.
News
Sri Lanka, India caught in US-Iran ship crisis
By Shamindra Ferdinando
Iran has sought the Indian intervention, at the highest level, to provide lifesaving support to the crews of empty Iranian vessels stranded just outside Sri Lanka’s 12-nautical mile territorial waters off Galle.
Sources familiar with the issue said that Iran had brought the developing situation to the attention of New Delhi as the crews of almost 20 vessels, included Indian nationals. Sources stressed that the group of vessels that unloaded crude oil a couple of months back were now stranded within Sri Lanka’s Exclusive Economic Zone (EEZ).
The US Navy torpedoed an unarmed Iran frigate, returning from India, on 04 March, 2026, about 19 nautical miles off the Galle coast. The unprovoked attack killed nearly 100 Iranians.
The Iranian Embassy in Colombo has inquired from the Indian High Commission of their response to the situation, sources said. The US has issued a global warning against providing food, water, medicine and other services to the Iranian vessels. The outcome of Iran-India talks on the issue at hand was not known, though sources asserted India may not throw its weight behind Iranian efforts to address the issue.
Responding to The Island queries, sources said both Sri Lanka and India were in a dilemma due to the US warning. India couldn’t ignore the plight of the Indian crew members and the Iranian vessels in its backyard.
The Sri Lankan government remains tight-lipped about the vessels stranded in its EEZ. Our efforts to elicit a response from relevant authorities were in vain. In addition to Indians, there are Bangladeshis among the crew members. Iran has explicitly stated the responsibilities of the countries concerned to provide assistance in terms of international law.
The Iranian position was articulated by its Ambassador to Sri Lanka, Dr.Alireza Delkhosh, recently. In a special statement, Ambassador Delkhosh emphasised that in terms of the Convention on the Law of the Sea (Article 98) as well as SOLAS and SAR
Conventions, Sri Lanka couldn’t refrain from providing the needs of the Iranian vessels stranded in its EEZ.
SLMC leader Rauff Hakeem lambasted the NPP government in Parliament for failing to provide assistance to the Iranian ships. The former Minister alleged that the government was simply carrying out dictates of the US. He strongly criticised the way Foreign Minister Vijitha Herath was handling the issue.
News
Namal further remanded
MP Namal Rajapaksa, who is in remand custody over the controversial Airbus deal, was further remanded until October 27 by the Colombo Magistrate’s Court yesterday (13).
Colombo Chief Magistrate Asanga S. Bodaragama made the order after considering submissions by officers of the Commission to Investigate Allegations of Bribery or Corruption and lawyers representing Rajapaksa.
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IMF projects Lankan economic growth to moderate amidst mounting global uncertainties
Sri Lanka’s economy is expected to sustain its recovery over the next two years, although growth is projected to moderate amid mounting global uncertainties, according to the International Monetary Fund’s (IMF) latest World Economic Outlook.
In its World Economic Outlook 2026: Resilience Under Strain, Urgent Choices, the IMF projects Sri Lanka’s economy to expand by 4% in 2026, slowing to 3.7% in 2027, following estimated growth of 5% in 2025.
Inflation, meanwhile, is forecast to rise to 5.3% in 2026 and 5.4% in 2027, reversing the average deflation rate of 0.5% recorded in 2025.
Unemployment is expected to remain steady at 3.9% throughout the forecast period.
The projections come amid growing pressure on the global economy from the ongoing conflict in the Middle East, elevated energy prices, geopolitical tensions and trade disruptions.
Sri Lanka’s external position is also expected to weaken, with the current account balance projected to shift from a surplus of 1.6% of gross domestic product (GDP) in 2025 to deficits of 0.5% in 2026 and 0.3% in 2027.
The IMF’s outlook points to continued economic expansion in Sri Lanka, but with slower growth, rising inflation and a narrowing external surplus giving way to current account deficits over the forecast period.
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