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Three-judge SC bench suspends cabinet decision of VFS deal until final resolution

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By AJA Abeynayake

The Supreme Court on Friday issued an Interim Order suspending a Cabinet’s decision to outsource visa application process to GBS Technology Services & IVS Global- FZCO, VFS VF Worldwide Holdings LTD led consortium.This suspension would remain in effect until the petitions are finally resolved, the Court ordered.

The Court also ordered the authorities to maintain the status quo ante as it existed before the implementation of the Cabinet decision.

The order was given by Supreme Court three-judge-bench comprising Justices Preethi Padman Surasena, Kumuduni Wickremasinghe and Achala Wengappuli when several fundamental rights petitions including one from members of the Committee on Public Finance (COPF) of the Parliament

MA Sumanthiran PC, Rauff Hakeem and Patali Champika Ranawaka and another from the Transparency International Sri Lanka (TISL) filed challenging the procedural violations and abuse of public trust by officials in the procurement of private entities to handle the Electronic Travel Authorization (ETA) system for issuing visas to tourists visiting Sri Lanka, were taken up for support.

The petitioners cited Minister of Public Security Tiran Alles, Ministry Secretary Viyani Gunathilaka, the Cabinet of Ministers and several others as respondents.

The TISL in a fundamental rights petition (SC/FR/221/2024) filed in the Supreme Court on July July 30 called for action against the procedural violations and abuse of public trust by officials in the procurement of private entities to handle the ETA system for the issuance of visas for tourists visiting Sri Lanka, a TISL news release said.

“This matter was filed in the public interest, considering the lack of transparency and non-adherence to guidelines in the decision-making and procurement processes that impact the tourism industry, the national economy and national security. The Petitioners argue that the fundamental rights of the citizens to equality and the right to information, as guaranteed under the Constitution under Articles 12(1) and 14A, have been violated through the actions and inaction of the respondents,” it said.

Among the respondents named in the petition are the Minister of Public Security, the Controller General of Immigration, the Sri Lanka Tourism Development Authority, GBS Technology Services & IVS Global- FZCO, VFS VF Worldwide Holdings LTD, the Cabinet of Sri Lanka and the Attorney General.

The petition lists several key issues that have led to the current concerns:

1. The improper and irregular selection of private entities as authorized representatives for issuing visas.

2. Entering into agreements with private parties in a manner that could lead to severe financial losses and damage to the tourism sector.

3. An incident at the Bandaranaike International Airport in May 2024 highlighted the problematic appointment of private entities for visa processing.

4. The existing partnership with Mobitel (Pvt) Limited from 2012 ran smoothly without an occurrence of major breakdowns, negative publicity, data breaches or other complaints.

5. Mobitel (Pvt) Limited tendering proposals for the improvement of the ETA system in August 2023 with no cost to the government.

6. Mobitel (Pvt) Limited tendering a proposal to provide the ETA platform services for USD 1 per application, in stark contrast to the USD 18.50 charged by GBS Technology Services & IVS Global- FZCO and VFS VF Worldwide Holdings LTD.

The petition calls for the respondents to be held accountable for their illegal, arbitrary, and unreasonable acts or omissions in the procurement process.



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Compensation payments and reconstruction activities related to the Ditwah relief measures must be expedited with special attention at the district level – PM

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Prime Minister Dr. Harini Amarasuriya emphasized that compensation payments and reconstruction activities related to the Ditwah relief measures must be expedited with special attention at the district level. She further stated that all necessary allocations have already been made to Provincial Councils and instructed that the progress of disaster damage assessments and reconstruction efforts be closely monitored at the provincial level.

The Prime Minister made these remarks at a discussion held on Tuesday  (21) at Temple Trees under her patronage, aimed at informing Chairpersons of District Coordination Committees and public representatives from disaster-affected districts, in order to accelerate the implementation of the “Rebuilding Sri Lanka” programme. The discussion focused on expediting disaster relief and compensation payments, as well as the swift restoration of infrastructure damaged by the disaster.

The Prime Minister emphasized that Rs. 500 billion has been allocated for damages caused by the Ditwah cyclone, and that all relevant development activities must be completed before the end of 2026. The Prime Minister also instructed officials to pay special attention to resolving issues at the local level that are causing delays in compensation payments.

Senior Additional Secretary to the President, G.M.R.D. Aponsu, stated that the estimated cost for reconstruction following the Ditwah cyclone is approximately USD 3.4 billion. Accordingly, funds have been allocated for compensation across several sectors including housing and social infrastructure, agriculture and livestock, fisheries, industry and livelihoods, and irrigation. He further noted that 99% of the Rs. 25,000 allowance has already been disbursed, while 95% of the Rs. 50,000 resettlement allowance has been paid. Compensation for fully and partially damaged houses is still ongoing, and 99% of temporary relief centres have been closed.

Additionally, attention was drawn to several other measures, including providing Rs. 25,000 to affected schoolchildren, paying Rs. 1 million as compensation for each deceased individual, compensation for children who lost one or both parents, support for persons with disabilities affected by the disaster, compensation for agricultural losses, and expediting resettlement of displaced families. Measures such as allocating land for new housing construction and accelerating the issuance of reports from the National Building Research Organization were also discussed.

Focus was also placed on the reconstruction of affected schools, hospitals, and daycare centres, improving the accuracy and speed of data collection at the local level, and accelerating infrastructure development.

The event was attended by Minister of Plantation and Community Infrastructure Samantha Vidyarathna,  Minister of Public Administration, Provincial Councils and Local Government Dr. Chandana Abayarathna,  Deputy Minister of Agriculture and Livestock Namal Karunaratne,  Deputy Minister of Trade, Commerce, Food Security and Cooperatives R.M. Jayawardena,  Deputy Minister of Education Dr. Madhura Senevirathna,  Members of Parliament,  Chairpersons of District Coordination Committees,  Chief of Staff to the President and Commissioner General of Essential Services Prabath Chandrakeerthi, Additional Secretary to the President Jayantha Bandara; and officials of the Prime Minister’s Office.

[Prime Minister’s Media Division]

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Parliament urged to probe questionable payment of USD 2.5 mn from Treasury

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… five senior officials suspended

President’s Counsel Maithri Gunaratne has urged the Parliament to intervene in an ongoing investigation conducted by the Treasury into the wrongful payment of USD 2.5 mn loan instalment to a third party instead of the country that gave the loan to the Government of Sri Lanka.

Gunaratne, in a letter addressed to Speaker Dr. Jagath Wickremaratne copied to leaders of all political parties represented in Parliament, General Secretaries of those political parties, Committee on Public Finance, Auditor General and National Audit Office, has stated the payments were made between December 2025 and January 31, 2026.

Lawyer Gunaratne took up the issue on behalf of civil society grouping ‘Free Lawyers’ after gathering information related to the alleged payments. Spokesman for ‘Free Lawyers’ Keerthi Tennakoon told The Island that they expected the Parliament to act swiftly and decisively. Pointing out that the ‘disappearance’ of USD 2.5 mn took place amidst the massive National Development Bank (NDB) fraud, amounting to Rs. 13.2 bn, Tennakoon emphasised the responsibility of the Parliament to take charge of the investigation.

According to Gunaratne’s letter, seen by The Island, following an international investigation carried out by a technical committee, two Treasury Directors, two Deputy Treasury Directors and a senior official responsible for IT had been interdicted.

As the relevant payments amounted to USD 2.5 mn, the process couldn’t have been completed without the involvement of the Deputy Secretary, Treasury and Treasury Secretary, Gunaratne stated.

According to him, the Central Bank had been responsible for loan payments until recently but the alleged irregularities happened after that task was brought under the Department of External Resources and Public Debt Management Office.

The Free Lawyers said that as the Secretary to the Treasury, Harshana Suriyapperuma, was also the Secretary to the Finance Ministry, the Parliament should intervene to establish a suitable mechanism to investigate this.

Former NPP National List lawmaker Harshana Suriyapperuma succeeded Mahinda Siriwardena in late June 2025.

Tennakoon said that they felt the need to bring the shocking development to the public domain as those who knew of the incident remained silent.

By Shamindra Ferdinando

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USD 2 mn bribe: CID ordered to arrest Shasheendra R, warrant issued against ex-SriLankan CEO’s wife

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Colombo Fort Magistrate Isuru Neththikumara has directed the Criminal Investigation Department (CID) to arrest former SriLankan Airlines board member Shasheendra Rajapaksa and produced him in court in connection with the ongoing probe into the Airbus deal during his uncle President Mahinda Rajapaksa’s second term.

The Magistrate sought an explanation from the CID regarding the delay in executing the arrest warrant in respect of Shasheendra Rajapaksa when the case was taken up yesterday (22).

Neththikumara issued a warrant on Priyanka Nayomali Wijenayake, the wife of former SriLankan Chief Executive Officer Kapila Chandrasena, over the investigations into the Airbus transaction.

The Chandrasenas have been accused of receiving US 2 mn bribe to facilitate the transaction.

The Commission to Investigate Allegations of Bribery or Corruption (CIABOC) is also inquiring into the Airbus deal. The Magistrate further ordered that the case pending before the Court be called again on May 20.

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