Raid on ‘Millennium City’ DMI safe-house:

A forgotten story (part 1)

Colombo High Court Judge Adithya Patabendi, on March 27, 2025, acquitted former ASP Kulasiri Udugampola, who had been indicted over the Kandy police raid on a safe house run by the Directorate of Military Intelligence (DMI) at the Millennium City housing complex, Athurugiriya. The raid, conducted in the first week of January 2002, sent shock waves through the defence establishment. Delivering the judgment, 23 years after the raid, Patabendi declared that the prosecution failed to prove the charges beyond a reasonable doubt.

The Dec. 5, 2001 parliamentary election was conducted at the height of the war in the North. Having gained the upper hand in the battlefield, the LTTE was working on a Ceasefire Agreement with Norway. The country was in turmoil with President Chandrika Bandaranaike Kumaratunga, who survived an LTTE suicide blast at the final rally of her Dec. 1999 presidential election campaign, struggling to overcome a sustained UNP offensive.

In the run-up to the Dec. 5, 2001 parliamentary polls, UNP leader, Ranil Wickremesinghe accused the Directorate of Military Intelligence (DMI) of planning to assassinate him. The UNPer claimed that the DMI was training Tamil terrorists at the Panaluwa Army Testing Range to mount an attack on his campaign bus, as well as his political rallies.

The unprecedented accusation placed the war-weary Army in an extremely embarrassing position when it was actually turning tables on the enemy using its own tactics in areas considered by then as being off limits for security forces. The UNP, with no shame, brazenly exploited the made-up threat as the main Opposition party and its allies, including a treacherous section of the media, stepped-up pressure on the Army to no end.

On the instructions of Wickremesinghe, UNP Chairman Charitha Ratwatte and Deputy Chairman Daya Palpola wrote a hard-hitting letter to Army Commander, Lt. Gen. Lionel Balagalle warning that he would be held responsible ‘in the event of an unfortunate incident’. The UNP duo accused the Army chief of training personnel to engage in a destabilisation campaign against the UNP.

An irate Army Commander, Lt. Gen. Balagalle in reply addressed a letter to Ratwatte and Palpola dismissing their accusations. The Island, in a front-page exclusive headlined ‘Army chief says no truth in UNP claims,’ in its Nov, 11, 2001 edition that revealed the exchange between Army headquarters and Sirikotha.

The report was based on what Lt. Gen. Balagalle had told this writer the previous evening. The Army chief, himself a one-time head of the Directorate of Military Intelligence (DMI), said that there was absolutely no basis for the UNP allegation that a hit squad was undergoing training in the use of high explosives and thermobaric weapons to attack Wickremesinghe.

The UNP ignored the Army chief’s letter. The allegation was repeated throughout the campaign. The raid on the DMI safe-house should be examined against the backdrop of the exchange between the Army commander and Sirikotha.

It was somewhat reminiscent of the JVP tactic to tarnish all others who had ruled the country since independence as being A Grade crooks to come to power with a record majority they couldn’t have even dreamt of knowing their sordid past. The trick was to repeat a lie long enough with the help of Western funded international and local NGO quislings and the gullible masses believed it.

Amidst a furore over the UNP allegation that the Army conspired to assassinate Wickremesinghe, Army operatives blew up a truck behind enemy lines killing five LTTE cadres on Dec. 11, 2001. Then again, they destroyed an LTTE bunker, at the entrance to a base used by Karuna, in the Kokkadicholai area, on Dec. 21, 2001.

Although the Army had conducted a successful small group operation in the Batticaloa District, targeting a key LTTE operative identified as David, way back in 1992, there was no attempt on the part of the military to develop the capability further. But some officers had been keen to promote small group operations to weaken the LTTE and beat it at its own game.

Commenting on the elimination of David, a veteran in clandestine operations told the writer of the deep penetrations ops: “Three personnel took part in the targeted killing of David. They returned to base after achieving the given task. Such operations caused chaos in enemy territory which gave us the psychological advantage over them. We knew of the importance as well as the need to strike within the enemy-controlled areas, though a special strategy on clandestine operations was adopted only in 2001, almost a decade after the hit on David.”

Speaking on condition of anonymity, the soft-spoken official explained the circumstances under which the Army launched deep penetration units soon after one-time Director of the DMI Lionel Balagalle had been appointed Commander of the Army.

Balagalle couldn’t resist the temptation to explore the possibility of infiltrating areas outside government controlled regions to launch attacks. “It was a tremendous task. Those who volunteered to join the operation realised the risks they were taking. They were among the best and they courageously adopted the new doctrine, which enabled us to carry out targeted killings. It was nothing but a high risk operation, though it produced results. They had to curtail their movements, particularly in the Eastern Province, where we used Batticaloa as the centre of our operations.”

Then Brigadier Kapila Hendarawithana executed the operation in his capacity as Director of DMI.

The LTTE realised the danger. Within months after the launch of the first DMI raid in the Batticaloa District, the LTTE pushed for the suspension of the DMI operation. The February 23, 2002 Ceasefire Agreement (CFA), arranged by the Norwegians, included a clause which specifically dealt with DMI action. The CFA called for the suspension of operations behind LTTE lines. While the LTTE had been successful in its negotiations with the Norwegians and the then inept UNP government with Executive President Chandrika Kumaratunga reduced to more or less a figurehead, the DMI suffered a debilitating setback when that regime with hardly any feelings for our valiant fighting men risking their lives day and night, ordered a police raid on an Army safe-house used by a deep penetration team at Athurugiriya.

The UNP-led United National Front (UNF) emerged victorious at the Dec. 5, 2001 general election with 109 seats, while the defeated PA managed to secure 77 seats. The remaining seats were shared by the JVP (16), the TNA (15), the SLMC (5), the EPDP (2) and the DPLF (01).

Balgalle on ops behind enemy lines

It had been one of the bloodiest elections with the five-week campaign claiming the lives of almost 50 people, with the polls day massacre of a group of SLMC supporters at Udathalawinna being the single worst incident. This massacre carried out by troops attached to the Vijayaba Infantry Regiment (VIR) who had been brought to Kandy at the behest of de facto Defence Minister Anuruddha Ratwatte was used as an excuse by a vindictive UNP leadership to order the raid on the safe house used by the DMI situated at Millennium City, Athurugiriya, on Jan. 2, 2002, which changed the course of the conflict. The UNF cited intelligence reports that Anuruddha Ratwatte’s sons, wanted in connection with the Udathalawinna massacre, were taking refuge at Athurugiriya.

Had the UNP leadership been a little cautious, it would never have publicly accused the Army of an assassination plot. Lt. Gen. Balagalle discussed the issues at hand with the writer. Operating hit squads behind enemy lines had been a key element in the Army’s strategy to give it a taste of its own medicine, the Army chief said at that time, alleging the then Opposition had failed to grasp what was going on. The Island quoted Lt. Gen. Balagalle as having said: “Had they quietly raised the issue with us and sought a clarification without playing politics with national security, the Athurugiriya fiasco could have been averted. Even ex-LTTE cadres were brought in for operations along with valuable input from civilian informants. We were successful due to many reasons such as training from Pakistani instructors. We also accommodated troops from other fighting battalions to engage in operations behind enemy lines, though the Special Forces and Army Commandos spearheaded the campaign.”

At the time troops had been undergoing training in Pakistan, Balagalle functioned as Security Forces Commander, Jaffna.

The Athurugiriya raid ruptured relations between the UNP and the Army. It caused irreparable damage to national security. At the behest of the UNP, a section of the media, including the Colombo-based correspondents working for international news agencies, highlighted the Athurugiriya raid speculating the Army’s alleged involvement in anti-government activities. Investigating officers alleged that those who had been based at Athurugiriya were involved in the alleged attempt to assassinate Wickremesinghe. Subsequently, the DMI was accused of planning attacks in the city and its suburbs to sabotage the Norwegian-led peace process.

The UNP allegations had the desired impact in the wake of state television showing recovered items, which included 66 sets of LTTE uniforms, four thermobaric weapons, seven claymore mines each weighing 10 kgs, 10 claymore mines, each weighing one kg each, three T-56 assault rifles along with 400 rounds of ammunition, 10 anti-tank weapons, detonators, cyanide capsules, exploders, remote controlled devices and wire rolls.

While a section of the media lashed out at the Army, in a front-page exclusive headlined ‘Controversy over police raid on army officers Millennium City residence,’ on Jan 4, 2002, The Island revealed that a police team from Kandy, led by die-hard UNP loyalist, Kulasiri Udugampola, had raided an Army safe house. The raid also involved a team of CCMP (Ceylon Corps of Military Police).

In spite of both Lt. Gen. Balagalle and the then Director of DMI, Brigadier Kapila Hendawitharana (later served as Chief of National Intelligence, before quitting in 2015) reassuring the government of the legitimacy of operations undertaken by the DMI, the police was let loose on covert operatives. Regardless of Balagalle rushing Hendarawithana, who later figured in many controversies to the scene, Udugampola went ahead with the raid. The police had obtained permission from courts to search the premises.

Udugampola had the backing of the then Interior Minister, John Amaratunga. IGP Lucky Kodituwakku, though being convinced of the legitimacy of the DMI operation, couldn’t do anything. He was helpless.

Army takes firm stand

The Kandy police raided the safe house shortly after the officer-in-charge of the DMI operation had handed over part of their arsenal. Those involved in the hit-and-run operations in LTTE held-areas had returned to Colombo on Dec. 27, 2001, in the wake of the Wickremesinghe administration declaring its readiness to go ahead with a Norwegian initiative to sign a one-sided CFA clearly favourable to the LTTE. The Kandy police also accused the Army of planting two claymore mines targeting a UNP candidate along the Wattegama-Panwila road, in the run-up to the Dec. 5, 2001 polls.

The then security forces spokesman, Brig. Sanath Karunaratne emphasised that those who operated from Athurugiriya were involved in ‘Army duties’ (The Island Jan. 4, 2002). Regardless of protests by the Army, those arrested were taken away to the Narahenpita CMP headquarters before being transferred to Kandy. They were treated like criminals and held under humiliating conditions. Six of them, including an officer, were held in one room. For two weeks, the media reported all sorts of conspiracy theories.

Let me stress that the Athurugiriya betrayal, in a way divided the Army. An influential section of the Army obviously cooperated with the conspirators.

Those who had been arrested were held for almost two weeks before being granted bail. The police raid would never have been possible without an influential section within the Army cooperating with the political establishment to undermine a vital operation, which brought the LTTE under immense pressure.

The UNP and the police justified Udugampola’s raid. Asked whether he had used the safe house to accommodate his sons, one-time Defence chief, Anuruddha Ratwatte, candidly acknowledged that he hadn’t been among those who knew of the existence of that particular rear base, though the Army kept him informed of operations undertaken by the DMI. (Feb. 1 issue of The Island, 2002)

Marapana to the rescue

Then Defence Minister, Tilak Marapana, a one-time Attorney General, to his credit did not play politics with such an important issue and thwarted an attempt by the Kandy police to prolong the detention of DMI operatives using the provisions of the PTA to please their then political masters in the UNP. The bid to neutralize the DMI was made ahead of the signing of the CFA. The Wickremesinghe administration didn’t even bother to consult the armed forces and police top brass regarding the provisions of the agreement. Then Navy Commander, Vice Admiral Daya Sandagiri told the Lessons Learnt and Reconciliation Commission (LLRC) how then Defence Secretary, Austin Fernando, had bypassed them with regard to sensitive military issues.

Fernando, in an article captioned ‘The Peace Process and Security Issues’ (Negotiating Peace in Sri Lanka: Efforts, Failures and Lessons) admitted that the refusal on the part of the then government to consult the military had been a failure. Fernando said (page 42): “The military chiefs weren’t consulted in the drafting of the CFA. Of course, a casual opportunity was given to them to discuss the draft with Ministers of Defence (Tilak Marapana) and Constitutional Affairs (Prof. G.L. Peiris). This wasn’t considered adequate by them as they didn’t get an opportunity to discuss the CFA with their senior officers”.

The CFA declared that ACTIVITIES BY DEEP PENETRATION UNITS should be ceased along with the cessation of all military action. The LTTE wouldn’t have demanded a ban on DMI operations unless the group acknowledged the growing threat posed by DMI. The LTTE had been vulnerable to those hunting them in their own backyard. Obviously, the LTTE wouldn’t have bothered about the DMI had the latter been stalking Wickremesinghe in the run-up to the Dec. 2001 polls.

Retired Senior DIG Merril Gunaratne, who had been Defence Advisor to Wickremesinghe during the CFA, exposed the UNP leadership in his ‘COP IN THE CROSSFIRE.’ The first book of its kind, written by one-time Director General of Intelligence, revealed how the top UNP leadership took security issues lightly at the expense of the country as well as the party. Asked whether he had been involved in the operation to move the Kandy police against the DMI, Gunaratne told the writer at that time he categorically opposed the move. “I was convinced the PA government wouldn’t target Wickremesinghe, thereby allowing the UNP to benefit from the sympathy vote. Unfortunately, Wickremesinghe and his top advisors felt the Army was hell bent on destroying the UNP.”

Ex-LTTE’s among the slain

The Athurugiriya raid had a catastrophic impact on the armed forces, which experienced untold hardships due to miscalculations on the part of political and military leaders. Following the betrayal of the DMI, the LTTE unleashed a series of operations in the city, its suburbs and in the Eastern Province. Altogether, over 50 military personnel, Tamil informants as well as ex-LTTE cadres working for the Army, died at the hands of the LTTE as their identities were revealed owing to the raid on the army safe house. Wijayanadan Widyatharan, alias Vidya, of Sea Road, Navakkudah, was the first operative killed by the LTTE after exposure of the Athurugiriya operation. Vaidya was abducted on January 20, 2002, over two weeks after the raid.

The dead included two senior military officers, both killed in Colombo. Although the two military officials, holding the rank of Major and Colonel could have been on a hit list, regardless of the Athurugiriya fiasco, the LTTE exploited the situation to demoralise the Army. Daring operations directed at the DMI and police intelligence helped boost the LTTE’s image. The military was placed in an unenviable position as the suspension of the PTA effectively neutralised counter-measures directed at LTTE hit squads.

Inspector Dale Gunaratne, the then President of the Police Inspectors’ Association, was perhaps the only law enforcement officer publicly critical of the UNP’s response to the LTTE threat. (Having retired years ago, Gunaratne now serves as an Attorney-at-Law) Although his superiors reacted angrily, Gunaratne lashed out at the government for allowing the LTTE to exploit the CFA to its advantage. Citing the killing of Inspector Thabrew at the Dehiwela Police Station, in July 2003, IP Gunaratne alleged that the suspension of the PTA in keeping with the CFA was nothing but a grievous threat to those fighting terrorism. He kept on lambasting the UNP and his own superiors for not taking action to neutralise the LTTE threat. But the UNP was determined to salvage the crumbling peace process at any cost. For those at the helm of the government, the lives of security forces and police didn’t matter, as long as they believed the LTTE would remain in the negotiating process. Politicians felt whatever the provocations, the peace process should continue.

By Shamindra Ferdinando