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Possible disruption in fuel supplies as claimed by trade unionist symptomatic of far bigger economic crisis – former Governor

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‘Why not arrest Minister Gammanpila for predicting collapse of banking sector’

By Shamindra Ferdinando

Former Governor of Uva, Southern and Central Provinces Rajith Keerthi Tennakoon says the arrest of UNP trade union leader Ananda Palitha over his disputed claim that the country would soon run out of both diesel and petrol unless fresh orders were placed immediately highlighted the economic crisis.

The SLPP government couldn’t solve the impending fuel shortage or suppress the truth by taking Ananda Palitha into custody, Tennakoon told The Island. Although the statement had created panic buying, he stood by Palitha’s statement, Tennakoon said.

The civil society activist pointed out that Ananda Palitha highlighted the daunting challenge in ensuring uninterrupted fuel supplies whereas the overall situation was far worse. “The crisis highlighted by Ananda Palitha is just one factor or symptom,” Tennakoon said, urging the government and the Parliament to examine the situation thoroughly or face the consequences.

Ananda Palitha’s statement actually meant that the country was in dire straits due to USD shortage, Tennakoon said.

Responding to another query, Tennakoon said that those who had lodged a complaint with the Criminal Investigation Department (CID) against Ananda Palitha owed an explanation as regards the government’s failure to settle oil import bills during the past 16 months.

The former Executive Director of an independent polls monitoring body Caffe claimed that Sri Lanka couldn’t attract suppliers for the last two crude oil tenders. Subsequently, about three weeks ago a ship carrying crude oil had to be anchored outside the Colombo harbour due to the government’s failure to make necessary payments. Tennakoon said that fuel stock was unloaded after the government made what he called other arrangements with the supplier.

Citing the fact that a significant 18 percent of Sri Lanka’s total import bill was for fuel, Tennakoon pointed out how the government conveniently forgot the recent crisis caused by shortage experienced by Laugfs customers. If the CID arrested Ananda Palitha on a complaint lodged by the Energy Ministry as regards warning of an impending fuel shortage, Laugfs Chairman W.K.H. Wegapitiya, too, should be taken into custody, Tennakoon said. Wegapitiya repeatedly declared there would be a gas shortage unless the government agreed to an immediate increase in gas prices, Tennakoon said. Having inconvenienced Laugfs customers by delaying the price increase the government finally gave in, Tennakoon said.

Tennakoon pointed out that the government owned Litro Gas, too, had asked permission from the government to increase price of its domestic and industrial products though some ministers repeatedly vowed to maintain the current price levels regardless of Laugfs increasing its prices. Then Litro Chairman, too, had to be arrested for seeking a price revision, Tennakoon said, adding the government owed an explanation regarding its response to milk importers threat to stop importers unless the government granted them a price increase. Noting that instead of granting price increase the government slashed duty on milk food imports, Tennakoon said that the SLPP government’s biggest blunder was slashing the entire range of taxes and duties immediately after forming the government.

Tennakoon said that SLIC owned Litro suffered nearly Rs 1.4 bn losses by selling gas at a loss.

Tennakoon alleged that the Treasury lost well over Rs. 500 bn due to a controversial decision to do away with a range of taxes, including PAYE (Pay As You Earn), NBT (Nation Building Tax), Withholding tax, Capital Gain tax imposed on the Colombo Stock Exchange, Bank Debit tax and unprecedented reduction of VAT (Value Added Tax). Tennakoon pointed out the 15% VAT and the 2% NBT which amounted to 17% imposed on all goods and services were unified and reduced to 8%, effective from the first of December 2019. According to him the decision was taken at the first cabinet meeting of the incumbent government held on Nov 27, 2019.

As a result of foolish government decisions taken without proper study, revenue plummeted drastically, Tennakoon said.

Referring to the Central Bank Report 2020, Tennakoon said that the total revenue for 2018 and 2019 had been Rs 1,950 bn and Rs 1,900 bn, respectively, whereas it dropped to Rs 1,373 in 2020. “The SLPP is responsible for this situation,” the civil society activist said, urging the Opposition to take up the issue both in and outside parliament.

Tennakoon said that if Ananda Palitha could be arrested for warning of a fuel shortage, Energy Minister attorney-at-law Udaya Gammanpila too should be taken into custody for predicting the collapse of the entire banking sector unless the government increased fuel price. Minister Gammanpila repeatedly warned of catastrophe due to disparity in world market and local prices.

Referring to President Gotabaya Rajapaksa’s statements to the nation in late June and last Friday, Tennakoon said that no less a person than the President admitted the difficulty in making loan/interest payments amounting to USD 4 bn annually.

Tennakoon said that the SLPP government couldn’t suppress the truth. Referring to a press conference organized by the President’s Media Division (PMD) a couple of weeks ago, Tennakoon said that Treasury Secretary S.R. Attygalle refrained from responding to The Island query on the Treasury losing over Rs 500 bn due to tax and duty slash. Did the SLPP consult the Treasury Secretary before slashing taxes and duties? Tennakoon asked.

Tennakoon reminded the government how it suffered massive revenue losses by slashing duty on sugar in Oct last year. That racket was followed by slashing of duty on milk food imports recently, Tennakoon said, pointing out Dr. Gunadasa Amarasekera accused a section of the government of facilitating milk food import scam.

“Take the public into confidence. Tell them the truth. Ask people to cut down on consumption. We are in a messy situation,” Tennakoon said, calling for review of fiscal policies. Tennakoon urged the parliament to address issues raised by watchdog committees COPE, COPA and COPF before formulating its response to the rapid deterioration of the economic situation. Tennakoon emphasized that the government should consult the parliament. Remedial measures should depend on consultations as unilateral decisions could worsen the situation further, Tennakoon warned.

Tennakoon said that the government should address the crises without further delay. The recent cabinet reshuffle revealed the government lacked even the basic understanding of the current crisis and still believed people could be deceived by utterly stupid actions.



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Election monitors flay JVP for postponing PC polls

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Manjula / Rohana

Election monitors have strongly condemned JVP General Secretary Tilvin Silva’s Jaffna declaration that the long-delayed Provincial Council polls couldn’t be held this year due to financial and legal impediments. Silva said so after declaring open a new NPP coordination office, in Jaffna, over the last weekend.

People’s Action for Free and Fair Elections (PAFFREL), and the Institute for Democratic Reforms and Electoral Studies (IRES), said that Tilvin Silva, in his capacity as the General Secretary of the main constituent of the National People’s Power (NPP), couldn’t make such a declaration under any circumstances.

PAFFREL head Rohana Hettiarachchi and IRES Chief Manjula Gajanayake emphasised that the JVP-led NPP government should be ashamed of the developing situation.

Hettiarachchi said that Tilvin Silva’s statement has to be examined against the backdrop of a parliamentary committee, headed by Foreign Minister Vijitha Herath, tasked to determine the electoral system under which PC polls should be conducted.

Alleging that the JVPer had made the parliamentary committee irrelevant, the civil society activist said that the whole exercise of appointing the Herath-led committee now seemed a farce. The JVP’s ruse to put off PC polls further reminded the country of a similar bid made by President Ranil Wickremesinghe, Hettiarachchi said, asserting that a government couldn’t postpone any poll, claiming it didn’t have the wherewithal.

Hettiarachchi emphasised that conducting elections was the responsibility of the government of the day. PC polls have been delayed for nearly one and half decades. Hettiarachchi said that as the NPP won the parliamentary election in November, 2024, it should be held accountable for further delaying the PC polls since then.

Responding to The Island queries, Hettiarachchi said that the JVP’s move couldn’t be justified, under any circumstances. If the NPP felt that the PC system was not required then urgent action must be taken to initiate a dialogue regarding the PC system and remove it through necessary constitutional means, he said.

Hettiarachchi alleged that the JVP, having gained political power, was now following the despicable agenda of the previous political parties which sought to hold onto power at the expense of the democratic rights of the people. The JVP proved that they were not different from those who were routed at the last presidential and parliamentary polls, the PAFFREL chief said.

Tilvin Silva’s unexpected Jaffna statement contradicted their election manifesto that promised to conduct both Local Government and PC polls in 2025.

Gajanayaka said since 1998 there had been several Supreme Court and Court of Appeal rulings regarding the PC polls due to reluctance on the part of some governments to conduct polls for obvious reasons. Referring to Tilvin Silva’s declaration that money allocated for the conduct of elections were utilised for Ditwah relief, Gajanayake emphasised the need to verify such claims. Gajanayake suggested that there should be provision to conduct a forensic study to find out whether Treasury had the required funds or the government lied.

Gajanayaka said that though the JVP was the dominant party, it would be interesting to know the opinion of Dr. Nihal Abeysinghe, General Secretary of the NPP. President Anura Kumara Dissanayake is the leader of both the JVP and the NPP.

The JVP Jaffna declaration couldn’t be accepted, Gajanayake said, adding that the JVP never really backed the PC system, though it contested them later after having waged a bloody insurgency against the Indian introduced set-up. Gajanayaka recalled the violence unleashed by the JVP in the wake of the Indo-Lanka accord of July 29, 1987, under which the then Congress government forced Sri Lanka to enact the 13th Amendment to the Constitution.

By Shamindra Ferdinando

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SL exports exceed USD 5.7 bn in first four months of 2026

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The Sri Lanka Export Development Board (EDB) says Sri Lanka’s total exports, comprising merchandise and services, reached US$ 1,380.93 million in April 2026, recording a year-on-year growth of 6 % compared to the previous year.

The EDB in a statement has said that the positive export performance recorded during the first four months of 2026 highlights the resilience of Sri Lanka’s external sector. Sustained export earnings, supported by stable merchandise trade and the growing contribution of services exports, indicate a steady and encouraging recovery trajectory for the Sri Lankan economy in 2026.

Commenting on the export performance in April 2026, Mangala Wijesinghe, Chairman and Chief Executive Officer of the Sri Lanka Export Development Board (EDB), has said: “Sri Lanka’s export sector continued to demonstrate resilience in April 2026, with total exports reaching US$ 1,380.93 million, recording a year-on-year growth of 6 % compared to April 2025. Merchandise exports recorded a notable increase of 9.87%, while services exports continued to make a significant contribution to overall export earnings, reflecting the growing importance of the services sector within the country’s export portfolio.

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Easter Sunday carnage: Court told Maulana’s statement cannot be accepted without cross-examination

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Retired Maj. Gen. Suresh Sallay’s Counsel Shavendra Fernando, PC, recently told Colombo Fort Magistrate Pasan Amarasena that Mohammed Milhilar Mohammed Hanzeer alias Azad Maulana’s statement that implicated his client in the 2019 Easter Sunday carnage couldn’t be accepted as evidence in a court of law without cross-examination.

Fernando also reminded the court that a warrant had been issued in respect of Maulana, one-time aide to Sivanesathureyai Chandrakanthan, alias Pilleyan, over a case of bigamy.

The Criminal Investigation Department (CID) in late February this year arrested Sallay, who served as the Director of State Intelligence Service (SIS)s from Nov. 2019 to early Oct. 2024, just weeks after the National People’s Power (NPP) won a 2/3 majority at the parliamentary election. President Anura Kumara Dissanayake brought in DIG Dhammika Kumara as Sallay’s successor. Sallay previously served as the head of the Directorate of Military Intelligence (DMI) from 2012 to 2016.

Making submissions to the court after Additional Solicitor General (ASG) Dileepa Peiris, Fernando emphasised that a court of law couldn’t act on a statement submitted through a third party as it couldn’t be relied upon.

At the onset of his submissions, the retired officer’s Counsel declared that he was making submissions before the court and not for the media.

The crux of the matter was whether Maulana, a fugitive from Sri Lanka law, whose statement, recorded by a team of CID officers, led by its Director SSP Shanie Abeysekera, at the Sri Lankan mission, in Paris, could be accepted without cross-examination.

The Attorney General’s Department and the suspect’s Counsel explained their position with regard to producing Sallay, detained under the Prevention of Terrorism Act (PTA) in court.

The ASG requested that an order, issued by the Colombo Fort Magistrate court to produce Sallay in court, be vacated. Responding to the ASG’s statement that there was no provision to produce a person detained under PTA, in court, the President’s Counsel pointed out that no existing provision denied such an opportunity. The retired officer’s Counsel said that it was the Magistrate’s prerogative.

Alleging that there was an ongoing attempt to derail the Easter Sunday investigation, the ASG opposed an opportunity for Sallay to make a statement in court in terms of the Section 127 of the Code of Criminal Procedure. Fernando emphasised that Salley should be given the opportunity.

Fernando also strongly opposed the ASG’s move, on behalf of the Attorney General, to have an earlier order issued by court, to ensure Sallay received unhindered access to his lawyers, vacated. He questioned how the Attorney General, who heads the Bar, could deny the right of lawyers to have free access to their clients.

Magistrate Amaraseena told the court that a report on Sallay’s health has been received by the court. Fernando has said that he would respond once he received a copy.

During cross talk among lawyers, President’s Counsel Fernando has asked Rienzie Arsularatne, PC, who appeared for the Archbishop of Colombo, Malcolm Cardinal Ranjith, whether the Cardinal had approved and condoned the inhuman conditions in which Sallay was held in a 6X4 rat-infested cell.

ASG Peiris responded jokingly that Fernando might be excommunicated by the Cardinal. Fernando has pointed out that only the Pope could excommunicate and that the Cardinal administered the churches and priests and that, too, only in Colombo.

Based on the statement recorded from Maulana, the CID submitted a 14-page report to the Colombo Magistrate’s court, declaring Sallay as the 2019 Easter Sunday terror mastermind.

Maulana repeated accusations, aired by Channel 4 TV in a documentary “Sri Lanka’s Easter bombings” in its “Dispatches” programme on Tuesday 05, September ,2023.

According to Maulana’s statement recorded in Paris, Seyani Maulavi, an associate of Zahran Hashim, had got in touch with former Eastern Province Chief Minister Pilleyan, in the Batticaloa Prison, where both were held.

Pilleyan had been arrested in connection with the alleged involvement in the assassination of ITAK MP Joseph Pararajasingham on Christmas Eve, in 2005, in Batticaloa, while Maulavi was apprehended over a clash at Aliyar junction, in the east.

Maulavi has reiterated that Sallay met six persons, including Zahran Hashim, at Karadippooval, in Puttalam, in 2018.

The statement claimed that immediately after the Easter suicide blasts, Sallay directed Maulana to pick Jameel, who had been assigned to bomb Taj Samudra, but didn’t do so, and to collect his hand phone. Visits by Mahinda Rajapaksa, Basil Rajapaksa and Namal Rajapaksa to the Batticaloa Prison to meet Pilleyan, too, had been mentioned with Maulana claiming that the visitors gave Pilleyan an assurance he would be released within six months from Gotabaya Rajapaksa’s victory at the 2019 November presidential election.

The CID told court that Gotabaya Rajapaksa, soon after winning the election, appointed Sallay as SIS head to protect the secrets, and the DMI paid Rs 250,000 bail for Maulavi. The CID also alleged direct DMI-Pilleyan link in the abduction of journalist Keith Noyahr, in May 2008, Lasantha Wickrematunga assassination, in January, 2009, attack on Rivira Editor Upali Tennakoon, in January, 2000, and in the disappearance of Prageeth Ekneligoda, on the eve of the 2010 January presidential election.

Another major allegation was that approximately 2,000 men, under Pilleyan’s command, were paid a monthly salary.

The Magistrate, at the end of the proceedings, declared that a decision regarding Sallay being brought to court and an opportunity for him to make a statement would be announced on July 1.

By Shamindra Ferdinando

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