News
Probe on Kurunegala MC sends shockwaves through political parties
By Shamindra Ferdinando
Auditor General W.P.C. Wickremaratne on Sunday (13) said that it was the responsibility of relevant political authorities to act on the findings/queries made by the National Audit Office.
The AG said so in response to The Island query with regard to the appointment of retired Judicial Officer Lalith Ekanayake, by North Western Province Governor Admiral of the Fleet Wasantha Karannagoda to conduct inquiry into allegations of corruption against Kurunegala Mayor Thushara Sanjeewa Vitharana (SLPP).
Controversy erupted over the Kurunegala Municipal Council, amidst accusations the government intends to further postpone Local Government polls.
Karannagoda, who served as the Commander of the Navy (2005-2009) held several appointments after his retirement, including that of Sri Lanka’s Ambassador in Tokyo before being named Governor of the North Western Province in Dec. 2021. The NW Province comprises the administrative districts of Kurunegala and Puttalam.
The AG stressed that their findings, pertaining to the Kurunegala MC administration, had been brought to the notice of the Parliament on more than one occasion. Local Government bodies come under Prime Minister Dinesh Gunawardena, who is also the Minister in charge of Local Government ministry.
The Governor, who represents the executive, issued an extraordinary gazette notification on Nov. 09 requesting for a comprehensive report from the one-man commission within three months. Declining to comment on the developments, Karannagoda said that he would await the completion of the investigation conducted in terms of the Commission of Inquiry Act.
The appointment of one-man commission took place, consequent to inquiries conducted by three boards into findings by the National Audit Office.
The National Audit Office has queried the payment of nearly Rs 59,879,720 more than the required amount to a CCD Construction Company in respect of two projects undertaken by the Kurunegala MC. Pointing out that this excess payment had been in spite of the total value of the agreement being Rs. 232,122,585, though estimated at Rs 230,186,606.
The National Audit Office has altogether queried 27 projects undertaken by the Kurunegala MC. The excess payment of Rs 59,879,720 pertained to one of the 27 projects undertaken during Thushara Sanjeewa’s tenure as the Mayor.
The SLPP won the Kurunegala MC at the Feb 2018 Local Government polls. The Kurunegala Mayor was implicated in the demolition of the Buwaneka Hotel, building with a historic connection, on July 15, 2020. The Road Development Authority (RDA) demolished the building without obtaining approval from the Department of Archaeology.
Following the Governor taking action on disclosures made by the National Audit Office, an interested party had made representations to political higher-ups to thwart investigations and further actions. The Governor is empowered to suspend the Mayor pending the investigation undertaken by the one-man commission, The Island learns.
Responding to queries, Auditor General Wickremaratne explained the urgent need to have cohesive systems to take punitive measures against those found guilty of waste, corruption, irregularities and mismanagement. The disclosures pertaining to the Kurunegala MC shouldn’t be considered as an isolated incident, the AG said, adding that over the years they have submitted quite a number of reports to Parliament that hadn’t so far produced the desired results.
National Audit Office has also inquired into large scale frauds perpetrated by the Kurunegala MC, court cases, renting of shops at Kurunegala bus stand, procurement of excavator from the public sector, in spite of having one of its own, releasing of machinery belonging to Kurunegala MC to various contractors, releasing land belonging to the state and Kurunegala MC to outsiders, serious financial irregularities in the procurement of water meters outside laid down procedures and payment of Rs 329,450.00 for furniture that hadn’t been procured by the Mayor’s Office.
Investigations have revealed members of the government, the Opposition as well as officers of the Kurunegala MC brazenly sharing shops available at the Kurunegala Central market, main bus stand and Maligapitiya shopping complex outside laid down procedures. Shops meant for all had been secured through political influence and SLPP, SJB and SLFP members of Kurunegala MC had obtained shops, according to the National Audit Office. The report named all recipients, including Mayor Thushara Sanjeewa Vitharana (three shops) and Opposition Leader W. A. Wijayananda Wedisinghe (two shops).
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.
News
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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