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ADB funding for medicine: Govt. not allowed to participate in procurement process

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Jagoda stands by accusations

By Shamindra Ferdinando

Health Minister Keheliya Rambukwella has revealed that in respect of funds that had been made available by the Asian Development Bank (ADB) to procure urgently needed medicine, the entire procurement process was handled by that organisation.

The disclosure was made at a hastily arranged media briefing on Wednesday (28) at the health ministry to answer queries raised on allegations pertaining to procurement of medicines and surgical items through the Indian credit line.

Rambukwella said that there had been instances when the ADB even questioned some items chosen by the Health Ministry.The media was told the ADB provided USD 67 mn, in addition to USD 200 mn made available by India, USD 100 mn from Asian Infrastructure Investment Bank and USD 28 mn from China.

Minister Rambukwella maintained that the ADB procurement process was slow.

Education Secretary of the Frontline Socialist Party (FSP) Pubudu Jagoda, who challenged the procurement process in respect of the Indian credit line as well as Minister Rambukwelle’s recent controversial visit to India, said that the ADB policy was meant to deprive opportunities for waste and corruption.

Jagoda pointed out that the World Bank imposed strict regulations when Sri Lanka opened international competitive biddings for fertiliser.In terms of the World Bank guidelines, contractors and sub-contractors are required to permit the World Bank team to inspect records, accounts and other documents relating to the procurement process and audited by auditors appointed by the WB.

This was in relation to tenders that had been called for the procurement of 125,000 metric tonnes of urea for the Maha season utilising funds allocated under the USD 350 million emergency financing facility offered by the World Bank.

The Committee on Public Enterprises (COPE) during Prof. Charitha Herath’s tenure as its Chairman accused Litro of misappropriation of funds. Declaring that Sri Lanka couldn’t restore the supply of cooking gas till the World Bank provided USD 70 mn to the government contribution.

Prof. Herath said it had not been possible to restore the cooking gas supply until the World Bank provided USD 70 mn to the government and Sri Lanka added USD 20 mn to the funds provided by the WB. The lawmaker claimed that the supplier whose bid had been rejected earlier had secured the contract through a front. He alleged that a tonne of gas that could have been procured previously at a cost of USD 96 was finally obtained at USD 129.One-time Media Ministry Secretary alleged that even the funds provided by the World Bank at a time the country was struggling to resolve the economic crisis had been misappropriated.

Litro has denied lawmaker Herath’s allegations.Jagoda yesterday toldThe Islandthat the government-led procurement process had lost its credibility. Responding to questions, the FSP official said that there was no point in reminding the parliament of its responsibility as regards public finance. The country wouldn’t have ended up bankrupt if parliament fulfilled its obligations, Jagoda said, adding that emergency loans received from India as well as other countries and lending agencies had to be repaid with interest. Therefore, it would be the responsibility of the government to ensure a corruption-free process, Jagoda said.

The FSP official insisted that Minister Rambukwella hadn’t answered the issues raised by him and a section of the media. The Minister is on record as having said that 90 percent of the media reports and allegations made against him were false, Jagoda said. The FSP official challenged MP Rambukwella to disclose what he believed was accurate.



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Chemmani mass graves: Govt to seek international forensic help

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ECONOMYNEXT –International assistance for forensic analysis of the remains unearthed at the Chemmani mass grave will be sought when the need arises, Sri Lanka’s Minister of has Justice said after opposition legislators urged the government to seek help.

“We have spoken to embassies, we have made all the local finances necessary for excavation. But when it comes to DNA analysis, depending on the type and nature we will definitely have to go for internationally recognised places,” Harshana Nanayakkara said in response to a query in Parliament.

Nanayakkara said that request for international expertise is dependant on the direction the courts give on what needs to be done, after which they will decide which agency best suits the proceedings.

The minister also recognised that local expertise is lacking in the forensic department, and the need to train local staff with the help of international experts.

Opposition MPs argued that the present need is direct help in forensics from international entities, rather than the longer term need to train the staff on analysis.

Currently, the investigation is in the excavation and exhumation stage, conducted by archaeologist Raj Somadeva and his team.

The existence of the Chemmani mass grave was first brought to light in 1998, during the trial of the rape and murder of schoolgirl Krishanti Kumaraswamy.

In February 2025, construction workers found remains near the Sinthupathy Cemetery, and following investigations ordered by the Learned Magistrate, the mass grave was discovered.

412 bodies have been discovered, with 409 bodies recovered as of 23 June 2026. According to the Office on Missing Persons, this is the 17th recorded mass grave in Sri Lanka.

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ADB approves $57.4 million package to boost Lanka’s rooftop solar drive

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The Asian Development Bank (ADB) has approved a $57.4 million financing package to help Sri Lanka expand access to affordable clean energy and reduce greenhouse gas emissions through a large-scale rooftop solar aggregation and virtual net metering programme.

The financing comprises a $35 million concessional loan, $16.9 million in grants from the European Union and $5.5 million from the Japan Fund for the Joint Crediting Mechanism. With additional contributions from implementing agencies, the total estimated cost of the project is $80.5 million.

Under the Rooftop Solar Aggregation and Virtual Net Metering Project, two state-owned utilities — Electricity Distribution Lanka (Private) Limited and Lanka Electricity Company (Private) Limited — will introduce a scalable model to collect electricity generated from large rooftop solar installations and allocate the benefits virtually among eligible consumers.

The initiative will allow consumers to access solar power benefits without having to install individual rooftop solar systems.

ADB Country Director for Sri Lanka Shannon Cowlin said the project would broaden access to affordable renewable energy while strengthening the resilience and inclusiveness of the country’s power sector.

She said the initiative would also support grid modernisation and digital transformation, while creating employment opportunities and encouraging greater participation of women and youth in the clean energy sector.

The project is expected to benefit micro, small and medium enterprises and community organisations that face financial or space constraints in installing their own rooftop solar systems. Through a social compensation mechanism, eligible groups will receive reductions in electricity costs under the virtual net metering system.

The programme will support around 25 megawatt-peak of rooftop solar capacity while strengthening distribution networks, improving digital capabilities and preparing the national grid to accommodate higher levels of distributed renewable energy.

A dedicated training facility will also be established under the project to develop green skills, enhance women’s participation in the sector and build technical expertise in advanced low-carbon technologies.

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Bond scam case against Mahendran, Ravi K fixed for July 22

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The Colombo High Court on Friday ordered that proceedings in the case filed against 11 defendants, including former Central Bank Governor Arjuna Mahendran and former Finance Minister Ravi Karunanayake, over alleged irregularities in the Central Bank bond auction be taken up again on July 22.

The case was called before Colombo High Court Judge Manjula Thilakaratne, who informed court that the Trial-at-Bar bench appointed to hear the matter had not been properly constituted.

Accordingly, the judge directed that the case be recalled on July 22 for further proceedings.

The Attorney General has filed indictments under the Public Property Act against 11 accused, including Mahendran, Karunanayake, Perpetual Treasuries Limited and its directors Arjun Aloysius and Geoffrey Aloysius.

The accused have been charged over alleged irregularities connected to a Treasury bond auction conducted by the Central Bank in March 2016.

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