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Treasury Chief turns down AG’s request for funding

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Budget 2022: Cash strapped govt. suspends new constructions

By Shamindra Ferdinando

Treasury Secretary S.R. Attygalle has turned down Auditor General W. P. C. Wickramaratne’s request for public funds for building an international training centre at Horana for the National Audit Office.

The Communications Department of Parliament quoted Treasury/Finance Secretary Attygalle as having told the Committee on Public Finance chaired by Anura Priyadarshana Yapa that the Cabinet wouldn’t allocate funds from Budget 2022 for new constructions. The Finance Secretary said so when the AG asked whether funds could be allocated for the project.

Acknowledging the requirements of the National Audit Office, MP Yapa, who represents the SLPP, pointed out that there were quite a number of state-owned buildings that weren’t in use currently. The MP expressed the view that perhaps the requirement of the National Audit Office could be met as space was available in the public sector.

The Committee on Public Finance met virtually with the participation of State Minister Dr. Nalaka Godahewa, Dr. Harsha de Silva (SJB), Prof. Ranjith Bandara (SLPP) and several officials. The majority of Committee members however haven’t participated in the proceedings.

The cash-strapped government has decided not to fund new major constructions as part of the overall cost cutting measures taken in the wake of unprecedented drop in state revenue due to Covid-19, waste, corruption and irregularities.

However, at the same meeting MP Yapa’s committee had approved a new special textile production zone of 400 acres in the Eravur area to provide economic and social benefits to the people, the Communication Department said.

The project would be implemented by the Board of Investment (BoI) in collaboration with the Ministry of Industry and Commerce for local and foreign textile manufacturers under the Strategic Development Act No. 14 of 2008.

Commenting in detail, the Director General of the Board of Investment Pasan Wanigasekara told the Committee that two factories in Eravur had already expressed their willingness to start production of high-quality garments for the foreign market. State Minister Godahewa pointed out that it would be unfair if those factories were given additional benefits compared to the other factories in the country. Prof Ranjith Bandara, too, asserted those operating in Eravur shouldn’t receive benefits not available to other companies engaged in similar projects. The Communication Department quoted the MP as having said that it would be like giving away a blank check so that only the relevant companies would receive unlimited opportunities.

FS Attygalle emphasised that the proposed zone targeted local and foreign textile manufacturers and was not garment factories.

MP Yapa recognised the importance of such investment opportunities in view of the situation facing the country.

Ministerial sources said that the government would have to proceed cautiously as the economy was facing quite a serious challenge amidst a worldwide economic/health crisis. With major revenue sources including tourism seriously affected due to Covid-19 eruption, the government would have to cut down on unnecessary spending.

President Gotabaya Rajapaksa is on record as having said that the country faced daunting challenges in settling USD 4 bn in loan repayments.



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Whistleblowers ask Treasury Chief to resign over theft of USD 2.5 mn

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Payment made to new account number outside agreement

Civil society group ‘Free Lawyers’, which exposed the payment of USD 2.5 mn loan instalment by the Treasury to a third party instead of Australia, yesterday (23) said that in spite of the Treasury having the legitimate bank account mentioned in the relevant agreement, the payment had been made to another account subsequently received from a person who had been in contact with some senior officials.

Civil society activist Keerthi Tennakoon on behalf of ‘Free Lawyers’ emphasised that the account number mentioned in the agreement couldn’t be changed without approval of the Secretary to the Treasury Harshana Suriyapperuma, who is also the Secretary to the Finance Ministry. Suriyapperuma, who quit his National List seat to receive the top appointment, should be held responsible for the unprecedented development, Tennakoon said.

If the Treasury had followed the time-tested procedures in place, a new bank account couldn’t have been introduced, and therefore a thorough investigation was required to reveal the truth.According to Free Lawyers, the scam had been detected by relatively junior officer and not those higher ups.

Free Lawyers’ would continue to follow the developments to ensure transparency in the investigations, Tennakoon said, noting that Suriyapperuma should step down as he was aware of a third party securing root access to the system in September 2025 but failed to take action to prevent the scam. Tennakoon said that the NPPer hadn’t informed relevant authorities, and altogether 16 officials were involved in the scam.

By Shamindra Ferdinando

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Hambantora port sets new record

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MSC Marie Leslie at Hambantota port

Hambantota International Port (HIP) successfully handled container vessel MSC Marie Leslie, marking one of its highest-volume vessel calls to date. The achievement further strengthens the port’s position as an emerging hub for containerised cargo in the region, according to HIP press release.

The vessel, operated by Mediterranean Shipping Company (MSC), was berthed at HIP from 11 to 15 April 2026. The port achieved 7,968 container moves during this period, translating to a total volume of 13,260 TEUs; the highest single-vessel throughput recorded by HIP to date.

This latest milestone surpasses previous records, including 12,957 TEUs handled on MSC Ilenia and 11,369 TEUs on MSC Ruby in March this year, reflecting a steady upward trend in the port’s container handling performance.

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US sinking of Iranian frigate off Sri Lanka unprecedented war crime Araghchi tells Vijitha

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Iranian Foreign Minister Abbas Araghchi has told his Sri Lankan counterpart Vijitha Herath that US sinking of Iranian frigate IRIS Dena off Sri Lankan waters was an unprecedented war crime.

Of some 180 crew only 30 odd personnel survived.

While referring to crimes committed by the United States and Israel against Iran, Araghchi has stressed that they would never forget this crime, which constitutes a grave violation of the fundamental rules of international humanitarian law and the 1949 Geneva Conventions, and would employ all legal and political means to hold the perpetrators and those responsible accountable and bring them to justice.

Araghchi has said so during a telephone conversation with Herath regarding the ongoing West Asia conflict and related developments.

During the phone call, Araghchi expressed appreciation for the Sri Lankan government’s efforts in the rescue operation for the sailors of the IRIS Dena and for assisting in the transfer of the bodies of the crew of the vessel and other Iranian naval personnel back to Iran, according to the Iranian Embassy in Sri Lanka.

US sank Dena as it along with two other Iranian vessels awaited Sri Lanka approval to enter the Colombo port. Iranian ambassador in Colombo Dr. Alireza Delkhosh is on record as having said that the Commander of Sri Lanka Navy invited the Iranian ships to visit Colombo following their participation in International Fleet review and Milan 2026 held in India in late Feb. All Iranian vessels had been unarmed at that time in keeping with protocols regarding the participation in such events.

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