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USD 1.2 bn received for leasing out H’tota port to China ‘misused’

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Political interference, mismanagement, corruption still galore

By Shamindra Ferdinando

The Sirisena-Wickremesinghe government had not utilised USD 1.1 bn received for leasing Hambantota Port to China Merchants Port Holdings Company in 2017, to settle a loan obtained for the construction of the facility during Mahinda Rajapaksa’s administration, the Committee of Public Enterprises (COPE) was told yesterday.

Auditor General W. P. C. Wickramaratne participated in the COPE inquiry into the Sri Lanka Ports Authority (SLPA) audit reports of 2020 and 2021 and current developments.

The yahapalana government leased a 70% stake of the port for 99 years after declaring its intention to settle the loan. However, it transpired at the COPE proceedings chaired by Prof. Charitha Herath, on Wednesday (22) that the USD 1.2 billion received for the long lease had been utilised for other purposes.

The then Ports and Shipping Minister Mahinda Samarasinghe signed the agreement on Sri Lanka’s behalf after Arjuna Ranatunga gave up the ministry as he opposed the deal. The Island yesterday brought this development to the notice of Ranatunga, who promised to comment once he studied the matter.

The watchdog committee pointed out that though the Treasury had paid back the loan and interest in installments, proper accounts hadn’t been maintained. As a result of bank interest balance (Rs. 147,746 mn) and foreign reserve loss (Rs 31,545 mn) being removed from SLPA accounts sans approval from the Treasury or the Cabinet-of-Ministers, and state accounts, didn’t give any indication of the amount of foreign loans obtained for building Hambantota port.

During COPE proceedings, it was also revealed that the Magampura Port Management Services Company, which had brought fuel required for ships on a USD 24 mn loan secured from a local bank, kept the stock till it expired. Subsequently, the consignment was sold for USD 3.5 mn, thereby causing a loss of USD 20.5 mn. The COPE has advised the Ports and Shipping Ministry Secretary to initiate legal action against the board of directors as well as its advisors.

The COPE noted that the Sri Lanka Ports Authority had continued to make recruitments outside the procedures laid down by the Management Services Department and the Salaries Commission.

It transpired at the COPE meeting that overtime payments for 2021 alone amounted to Rs 5,850 mn. This included Rs.1,173 mn paid for workers assigned to sections categorised as overstaffed. As a result of recruitment of approximately 1,500 unskilled workers, the skilled workers had to be paid overtime. The COPE was told some workers earned monthly overtime for as many as 400 hours.

The COPE also questioned why only Rs 600 mn had been given to the Treasury from 2016 to 2021 though it earned revenue of Rs. 69,686 during this period.



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Russian circumnavigation team arrive in Sri Lanka

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The Russian circumnavigation team, the 5 Oceans Club, made a brief stop in Sri Lanka as part of their second global sailing expedition.

The six-member crew, visited the Russian House in Colombo, on Friday, (24th April) where they shared insights from their journey.

What makes this expedition particularly inspiring is the club’s commitment to inclusivity. They actively encourage children with limb disabilities to experience the ocean and participate in sailing as equals, fostering confidence and a deep connection with nature.

The team also spoke about a specialized sailing school based in Siberia—one of Russia’s most picturesque regions—where children with such challenges are trained and introduced to maritime life. During the session, they offered a glimpse into their daily life aboard the yacht and highlighted how they integrate elements of science into their explorations, making their journey both adventurous and educational.

The crew consists of,  Dmitry Kuznetsov – (captain of the boat of the 5 Oceans Club), ⁠Vladimir Dudkin – (crew member),  ⁠Dmitry Dudkin –(cabin boy), ⁠Ksenia Kuznetsova – (cabin boy), ⁠Natalia Shahinyan – (founder of the charity foundation “Life on the Move”), ⁠Sofia Sheremet -(ward of the foundation)

 

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Heat Index at Caution Level in the  Northern, North-central, North-western, Western, Sabaragamuwa, Southern, and Eastern provinces and in Monaragala district during the day time

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Warm Weather Advisory
Issued by the Natural Hazards Early Warning Centre
Issued at 3.30 p.m. on 25 April 2026, valid for 26 April 2026.

The Heat index, the temperature felt on the  human body is likely to increase up to ‘Caution level’ at some places in the  Northern, North-central, North-western, Western, Sabaragamuwa, Southern, and Eastern provinces and in Monaragala district during the day time.

The Heat Index Forecast is calculated by using relative humidity and maximum temperature and this is the condition that is felt on your body. This is not the forecast of maximum temperature. It is generated by the Department of Meteorology for the next day period and prepared by using global numerical weather prediction model data.


Effect of the heat index on human body is mentioned in the above table and it is prepared on the advice of the Ministry of Health and Indigenous Medical Services.

ACTION REQUIRED
Job sites: Stay hydrated and takes breaks in the shade as often as possible.
Indoors: Check up on the elderly and the sick.
Vehicles: Never leave children unattended.
Outdoors: Limit strenuous outdoor activities, find shade and stay hydrated.
Dress: Wear lightweight and white or light-colored clothing.

Note:
In addition, please refer to advisories issued by the Disaster Preparedness & Response Division, Ministry of Health in this regard as well. For further clarifications please contact 011-744649

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Sagarika derailment disrupts coastal rail line; services to resume in two days

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Railway General Manager Ravindra Pathmapriya said on Friday that re-railing operations of the derailed ‘Sagarika’ train have already commenced and that services on the Coastal Line are expected to be restored within two days.

Addressing the media, he said the Minister had instructed officials to take all necessary measures to minimise inconvenience to passengers.

Commenting on the incident, he said: “The damaged train is a significant loss for us, especially as our fleet is already limited. We have incurred this loss and hope to rectify the situation promptly. However, we will need to deploy an alternative train in its place, and discussions are currently underway.”

The ‘Sagarika’ train, operating from Beliatta to Maradana, derailed near the Wadduwa Railway Station on Friday morning (24), causing severe damage to one track of the dual-line section.

The Railway Department has since restricted services on the affected Coastal Line up to Panadura Railway Station.

Arrangements have been made to transport passengers from Panadura to South Kalutara by Sri Lanka Transport Board (SLTB) buses, from where train services will resume towards Matara and Beliatta.

Meanwhile, the Department said efforts are underway to clear the obstruction and restore at least one track by the end of the day.

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