News
Treasury blamed for missing paddy stocks worth Rs 1.3 bn
United Rice Producers Association urges Prez to punish culprits
By Shamindra Ferdinando
The United Rice Producers Association (URPA) alleges that paddy stocks worth Rs 1.3 bn procured by the government in 2019/2020 Maha, 2020 Yala, 2020/2021 Maha and 2021 Yala seasons have not been accounted for.
URPA President W. D. K. Muditha Perera has, in a letter dated January 05, informed President Ranil Wickremesinghe that the paddy stocks at issue were to be sold through Sathosa outlets after being milled by small time operators. However, those plans never materialised, Perera has said, adding as much as 5,800,000 kilos of paddy went unaccounted for.
Muditha Perera told The Island that he had copied the letter to the Chairmen of the parliamentary watchdogs, COPE, COPA and COPF, Auditor General, Chairperson, CIABOC, Director, CID, and Secretaries to Finance, Public Administration and Agriculture.
The URPA has disclosed how government officials, at every level responsible for the implementation of the project in the Polonnaruwa, Puttalam and Trincomalee districts, sold some stocks to the private sector, thereby depriving the consumers of an opportunity to purchase rice from Sathosa, at an affordable price. According to Muditha Perera, stocks of paddy, procured at Rs 50-55 per kilo, could have been easily sold at less than Rs 100.
The trade unionist pointed out that even when a kilo of rice went up to Rs 250 – Rs 300 in June last year, the Divisional Secretaries refrained from releasing stocks available with them.
Muditha Perera found fault with the Finance Ministry for failing to supervise the overall implementation of the project. Having released the required funds for the paddy purchasing scheme, the Finance Ministry couldn’t have turned a blind eye to what was going on in the paddy producing regions.
The then Prime Minister Mahinda Rajapaksa served as the Finance Minister, from Nov. 2019 to June 2021. Basil Rajapaksa succeeded him in June and was dropped from the Cabinet of Ministers in April 2022. Ali Sabry, PC, held the finance portfolio for several weeks before Ranil Wickremesinghe succeeded Sabry in late May 2022.
S.R. Attygalle served as the Finance Secretary.
Muditha Perera said that Polonnaruwa District Secretary, though being informed of corruption and manipulation of the entire process of Dec 03, 2020, quite conveniently failed to take remedial measures. Accusing the District Secretary of allowing the racket to continue for two years, Muditha Perera said that the Director, Agriculture, Polonnaruwa, suppressed information sought in terms of the Right to Information Act.
Muditha Perera alleged that major millers had benefited from the racket.
According to him, Polonnaruwa District Secretary, for two years delayed responding to his Association’s right to information query whereas Puttalam Divisional Secretary was still trying to sidestep the issue.
Muditha Perera said that the government could have averted massive losses if the Finance Ministry acted in the wake of SJB MP Dr. Harsha de Silva’s disclosure of the fraudulent activities in the scheme. The revelation was made during the budget debate on Dec 04, 2020, Muditha Perera said.
The Association alleged that the entire process had been corrupt and, in spite of the issue being raised in Parliament, those responsible allowed the Polonnaruwa, Puttalam and Trincomalee state administration to rob the Treasury and deny those struggling to make ends meet, rice at an affordable price.
Referring to media reports regarding donation of rice from China, India, Myanmar and even Tamil Nadu and significant imports at a time the country experienced a severe balance of payments crisis, Muditha Perera alleged the government allowed corrupt officials a free hand.
“We should be ashamed of ourselves,” Muditha Perera said, asserting that bigger frauds seemed to be encouraged by the powers that be.
News
SJB: Govt. trying to reappoint Jayakody, who resigned from Cabinet amidst coal scam
Marikkar claims coal losses more than twice Treasury bond scam
By Shamindra Ferdinando
The SJB has accused the NPP government of trying to create an environment conducive for the re-appointment of Kumara Jayakody who resigned on 17 April 2026 over a coal scam perpetrated in 2025.
Colombo District MP S.M. Marikkar Tuesday (13) alleged that Jayakody’s successor Anura Karunathilaka was spearheading the efforts at the behest of President Anura Kumara Dissanayake.
Addressing the media at the Opposition leader’s Office at No. 30, Sir Marcus Fernando Mawatha, Colombo 07, Marikkar said that the NPP was busy propagating a lie that the losses amounting to Rs 15.68 bn could be entirely recovered by way of penalties and funds held as deposits in line with the supplier. The Opposition MP placed the amount held by the government at Rs 16.48 bn.
Marrikar claimed that the NPP’s propaganda project to whitewash Jayakody was meant to bring Jayakody back into the Cabinet of ministers in January next year. The top SJB spokesman said that the findings of the Sectoral Oversight Committee (SOC) on Infrastructure and Strategic Development report on the losses suffered by the use of substandard coal had been used to back the government move.
The inquiry was held into procurement for 2025/2026 seasons made from Trident Chemphar, an Indian company whose selection was questioned by the National Audit Office in a special report submitted to parliament before the vote on no faith motion against Jayakody.
Marikkar said that the NPP in its haste to build a case for Jayakody’s return to the cabinet had conveniently forgotten that six of the 25 shiploads of coal ordered from Trident Chemphar were never delivered. In a desperate bid to cover the shortfall, the government paid Rs. 2,284 million above the market price in emergency procurement. As the SOC had rejected the tests conducted by an Indian company and ordered fresh tests on substandard coal, an additional Rs 26.6 mn had been paid to an Australian lab, MP Marikkar said, explaining other losses caused by the corrupt deal.
Marrikar explained how the procurement of substandard coal altogether cost the taxpayer nearly Rs 20 bn while the government engaged in a project to clear Jayakody. The former minister is also indicted in the Colombo High Court in an earlier corruption case.
Marrikar emphasized that the government should accept responsibility. Comparing the action taken in respect of 2015 and 2016 Treasury bond scams and the coal scam, MP Marikkar said that the losses caused by Trident Chemphar fraud was double the Treasury bond scam. A future government would investigate the coal scam and punish all those responsible. The NPP under any circumstances couldn’t bring back Jayakody to the cabinet as he was directly responsible for the fraud, the Colombo District lawmaker said.
At the time the UNP perpetrated Treasury bond scams, Marikkar represented the UNP parliamentary group which made desperate bids to protect the bond thieves.
The SJBer refused to answer questions regarding any other issue. Marikkar reacted angrily when a journalist sought to raise a group of SJB MPs meeting the Most Ven Thibbatuwawe Sri Sumangala Mahanayake Thera of the Malwathu Chapter in Kandy. Then the MP accused a section of the media of trying to suppress the coal scam by raising other issues. Marrikar vowed that they wouldn’t allow Jayakody’s return to the cabinet. The NPP government’s reputation had been devastated by the coal scam and current efforts to cover up the direct involvement of Minister Jayakody would not succeed, he said, warning the NPP should be prepared to face the consequences.
News
India busts Pakistani salt smuggling via Sri Lanka
India’s Directorate of Revenue Intelligence (DRI) has busted a transnational smuggling network that illegally imported more than 7,300,000 kilos of Pakistan-origin rock salt by routing shipments through Sri Lanka and using forged trade documents to conceal their origin, India Today reported yesterday.
Four people had been arrested in connection with the case, the Ministry of Finance said on Wednesday.
Under Operation Deep Manifest, the DRI detected 295 containers carrying 7,311 metric tons of industrial and Himalayan rock salt, with an estimated value of Rs. 104.5 million in Sri Lankan currency.
The consignments were routed through Colombo port in Sri Lanka, while fabricated certificates of origin and invoices issued by United Arab Emirates-based entities were allegedly used to disguise the goods as originating elsewhere.
The imports violated India’s prohibition on goods originating in or exported from Pakistan, the ministry said.
Acting on specific intelligence, the DRI conducted a coordinated operation between September 26 and October 11, searching premises linked to the suspected network in Gandhidham, Adipur, Veraval, Panipat, Pune, Patiala, Delhi and Mumbai.
The investigation found that nine importers had brought in the 295 containers through Mundra and Kandla ports since March 2026.
Of the total consignments detected, five containers carrying 140 metric tons of industrial and Himalayan rock salt, valued at Rs. 8.48 million in Sri Lankan currency, were seized at Kandla port. The agency also seized sales proceeds worth Rs. 7.3 million in Sri Lankan currency held in the importers’ bank accounts.
News
Monks brave heavy rains to press for Gnanasara Thera’s release
… stage sit-in protest near Presidential Secretariat
by Nishan S. Priyantha
Buddhist monks who marched to Colombo demanding the release of imprisoned Ven. Galagoda Aththe Gnanasara Thera continued their sit-in protest outside the Presidential Secretariat yesterday, as discussions between their representatives and Presidential Secretary Dr. Nandika Sanath Kumanayake were underway.
The protesting monks said they would not leave the site until the authorities gave a positive response to their demand for the release of Gnanasara Thera. The discussions were continuing at the time this edition went to press.
The monks arrived in Colombo despite heavy rain, completing the six-day “Nidahase Pada Yathra” (Freedom March), which began in Kandy on October 10. The final leg of the march commenced from Kadawatha yesterday morning, proceeding through Kiribathgoda, Peliyagoda, Maligawatta and Maradana before reaching the area near the Presidential Secretariat at Galle Face.
Ven. Ulapane Sumangala Thera, commenting on the protest, urged the government to take immediate steps to secure Gnanasara Thera’s release, saying the participating monks expected a favourable response to their demand.
“Today is our final day. The Maha Sangha came from all four directions not to return empty-handed. We strongly urge the government to grant freedom to Gnanasara Thera, which is the expectation of all, including the respected chief prelates,” he said.
Ven. Sumangala Thera said the monks were prepared to meet President Anura Kumara Dissanayake at any location designated by him, including Pelawatte, Parliament or the President’s House.
“We are waiting to receive that message. If that does not happen, we are prepared to come wherever the President is. We are prepared to settle this matter one way or another today,” he said, warning that if their peaceful appeals continued to go unanswered, the monks would consider alternative ways of conveying their demands to the government.
The march, which began in Kandy on October 10, passed through Kadugannawa, Kegalle, Warakapola and Nittambuwa before reaching Kadawatha on October 14. The procession was organised to demand the release of Gnanasara Thera and advocate for the religious rights of Buddhist monks.
Heavy police security was deployed around the Presidential Secretariat and nearby roads as the monks gathered in the area. Galle Road near the Secretariat was also closed to traffic during the march.
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