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Those who deposit money with unregistered finance companies do so at their own risk – CB

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By Rathindra Kuruwita

The Central Bank of Sri Lanka (CBSL) was not bound by the law to protect the interests of those who have deposited money in financial institutions that are not registered with it, Assistant Governor of the CBSL J. P. R. Karunaratne said.

The existing laws also did not empower the CBSL to intervene on behalf of such depositors, he said.

“However, under some provisions we investigate institutions that are taking deposits from people illegally. Then we take legal action against the culprits. But we cannot help the depositors,” he said.

Anyone who deposited money with an unauthorised financial institution did so at his or her own risk, Karunaratne said, adding that registered financial institutions were now offering low interest rates. That had opened doors for various scammers to manipulate people, he said. The CBSL was investigating about 125 complaints of such issues, he said.

Some retired persons were solely dependent on interest from their deposits. They tried to secure highest possible interests. They were also targeted by the scammers, Karunaratne said.

Meanwhile, Director of the Department of Supervision of Non-Bank Financial Institutions at CBSL, Chanuki Jayasinghe said the Central Bank on its website had published a list of banks and financial institutions that were registered with it. The list was also periodically published in newspapers, she said.

“Registered institutions give an interest of about 10-12 percent per annum now. These unauthorised financial institutions usually give interest of five to 10 percent a month. People should also use their intelligence. They must ask themselves; how can one give me five or 10 percent interest per month. What kind of investments can yield such massive payouts? These unauthorised companies for the most part have one branch,” she said.

CBSL instructed its regional officials, government servants and the police to inform the Bank of unauthorised financial institutions, Ajani Liyanapatabendi, Additional Director of CBSL’s Department of Supervision of Non-Bank Financial Institutions.

Some people, who were financially literate, also deposited money with those institutions, for short periods, to evade taxes, she said.



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GL: Proposed anti-terror laws will sound death knell for democracy

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Prof. Peiris

‘Media freedom will be in jeopardy’

Former Minister of Justice, Constitutional Affairs, National Integration and Foreign Affairs Prof. G. L. Peiris has warned that the proposed Protection of the State from Terrorism Act (PSTA) will deal a severe blow to civil liberties and democratic rights, particularly media freedom and the overall freedom of expression.

Addressing a press conference organised by the joint opposition alliance “Maha Jana Handa” (Voice of the People) in Colombo, Prof. Peiris said the proposed legislation at issue had been designed “not to protect people from terrorism but to protect the State.”

Prof. Peiris said that the proposed law would sound the death knell for the rights long enjoyed by citizens, with journalists and media institutions likely to be among those worst affected.

Prof. Peiris took exception to what he described as the generous use of the concept of “recklessness” in the draft, particularly in relation to the publication of statements and dissemination of material. He argued that recklessness was recognised in criminal jurisprudence as a state of mind distinct from intention and its scope was traditionally limited.

“In this draft, it becomes yet another lever for the expansion of liability well beyond the properly designated category of terrorist offences,” Prof. Peiris said, warning that the elasticity of the term could expose individuals to prosecution on tenuous grounds.

Prof. Peiris was particularly critical of a provision enabling a suspect already in judicial custody to be transferred to police custody on the basis of a detention order issued by the Defence Secretary.

According to the proposed laws such a transfer could be justified on the claim that the suspect had committed an offence prior to arrest of which police were previously unaware, he said.

“The desirable direction of movement is from police to judicial custody. Here, the movement is in the opposite direction,” Prof. Peiris said, cautioning that although the authority of a High Court Judge was envisaged, the pressures of an asserted security situation could render judicial oversight ineffective in practice.

Describing the draft as “a travesty rather than a palliative,” Prof. Peiris said the government had reneged on assurances that reform would address longstanding concerns about existing counter-terrorism legislation. Instead of removing objectionable features, he argued, the new bill introduced additional provisions not found in the current Prevention of Terrorism Act (PTA).

Among them is a clause empowering the Defence Secretary to designate “prohibited places”. That was a power not contained in the PTA but previously exercised, if at all, under separate legislation such as the Official Secrets Act of 1955. Entry into such designated places, as well as photographing, video recording, sketching or drawing them, would constitute an offence punishable by up to three years’ imprisonment or a fine of up to Rs. 3 million. Prof. Peiris said. Such provision would have a “particularly chilling effect” on journalists and media personnel, he noted.

The former minister and law professor also criticised the breadth of offences defined under the draft, noting that it sought to create 13 categories of acts carrying the label of terrorism. This, he said, blurred the critical distinction between ordinary criminal offences and acts of terrorism, which require “clear and unambiguous definition with no scope for elasticity of interpretation.”

He cited as examples offences such as serious damage to public property, robbery, extortion, theft, and interference with electronic or computerised systems—acts which, he argued, were already adequately covered under existing penal laws and did not necessarily amount to terrorism.

Ancillary offences, too, had been framed in sweeping terms, Prof. Peiris said. The draft legislation, dealing with acts ‘associated with terrorism,’ imposed liability on persons “concerned in” the commission of a terrorist offence. “This is a vague phrase and catch-all in nature.” he noted.

Similarly, under the subheading ‘Encouragement of Terrorism,’ with its reference to “indirect encouragement,” could potentially encompass a broad spectrum of protest activity, Prof. Peiris maintained, warning that the provision on “Dissemination of Terrorist Publications” could render liable any person who provides a service enabling others to access such material. “The whole range of mainstream and social media is indisputably in jeopardy,” Prof. Peiris said.

Former Minister Anura Priyadarshana Yapa and SLFP Chairman Nimal Siripala de Silva also addressed the media at the briefing.

by Saman Indrajith ✍️

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SJB complains to bribery commission about alleged bid to interfere with evidence

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Harshana

SJB Gampaha District MP Harshana Rajakaruna has written to the Chairman of the Commission to Investigate Allegations of Bribery or Corruption (CIABOC), Neil Iddawala, urging immediate action over attempts to interfere with evidence relating to a corruption complaint against Speaker Jagath Wickramaratne and his private secretary, Chameera Gallage.

In his letter, Rajakaruna refers to a complaint lodged on February 2, 2026, by Parliament’s suspended Deputy Secretary General Chaminda Kularatne under the Anti-Corruption Act No. 9 of 2023, naming the Speaker and his private secretary.

The Opposition MP has stated that Gallage subsequently wrote to the Secretary General of Parliament on 06 February, seeking a report on matters connected to the complaint. Rajakaruna alleges that Gallage’s letter amounts to an attempt to conceal or alter evidence and to influence potential witnesses.

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Substandard Ondansetron: CIABOC launches probe

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The Commission to Investigate Allegations of Bribery or Corruption (CIABOC) has launched a probe into the distribution of substandard Ondansetron injections to state hospitals following the deaths of two patients who received the drug.

The stock of Ondansetron has been imported from an Indian pharmaceutical company and distributed to several hospitals, according to a complaint lodged with the CIABOC.

Two patients, one at the Kandy Hospital and another at the Mulleriyawa National Institute of Health Sciences, died after suffering adverse complications subsequent to the administration of the injection.

by Sujeewa Thathsara ✍️

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