News
Cabinet approved USD 480 mn US Compact ignoring President Sirisena’s objections
By Shamindra Ferdinando
The yahapalana Cabinet approved the Millennium Challenge Corporation (MCC) USD 480 mn Compact in the run-up to 2019 presidential election amidst strong objections by then President Maithrilpala Sirisena, according to highly placed sources..
The Cabinet decision followed the Board of Directors of the MCC endorsing the compact with the government of Sri Lanka on April 25, 2019.
Sources told The Island that there had been five cabinet papers submitted by President Sirisena in that regard, beginning March 10, 2017. Having underscored the requirement to study the USD 480 mn compact in his first Cabinet paper on the matter, President Sirisena submitted four subsequent Cabinet papers on April 1, 2019, July 17, 2019, July 29, 2019 and August 23, 2019, sources said.
Responding to another query, sources said that the Cabinet had given the go ahead disregarding President Sirisena’s call to put off the finalisation of the agreement by six months pending a comprehensive study. Sirisena cited legal complications as the reason for his request.
President Sirisena’s Cabinet papers came to light following an inquiry conducted by a four member committee comprising Dr. Lalithasiri Gunaruwan, Architect Nalaka Jayaweera, former Secretary to the Transport Ministry D S Jayaweera and President’s Counsel Nihal Jayawardhana. Prof. Gunaruwan led the committee which was appointed in the wake of Gotabaya Rajapaksa’s victory at the November 2019 presidential election.
The yahapalana government went ahead with the project on the basis of approval from the Attorney General’s department. Asked whether the Committee had obtained the opinion of the Attorney General, in writing in that regard, sources said that several attempts had been made to get the AG’s Department opinion before the finalization of the interim report as well as the final report. The Committee requested the Attorney General’s opinion through the Office of the Prime Minister. Having failed in their attempt, the Committee requested that the Attorney General’s Department be represented at meetings. Subsequently, the Attorney General was represented initially by an officer, relatively junior before they upgraded representation.
The Gunaruwan Committee handed over its interim report in Feb 2020 and the final report on June 23, 2020. Sources said that President Sirisena’s cabinet papers had been submitted along with the final report though they weren’t made public.
The Attorney General’s Department is now in the process of studying the report before making its position on the agreement, according to sources.
President Sirisena, in his April 1, 2019 cabinet paper objected to approving the agreement pending parliamentary endorsement later.
In addition to a letter dated Oct 10, 2018 on Attorney General’s Department letter head now in the public domain, there were several opinions expressed by the same institution in respect of the USD 480 mn Compact. Sources said that as the draft agreement finally approved by the cabinet had been amended subsequent to that letter dated Oct 10, 2018, all available written documents had to be taken into consideration.
Finance Ministry is on record as having said that the Attorney General didn’t find fault with USD 480 mn Compact. It issued the statement at the behest of the then Minister Mangala Samaraweera immediately after Prime Minister Wickremesinghe confirmed the decision to finalise the agreement before Nov 16, 2019 presidential election.
Gunaruwan Committee in its report suggests that perhaps the government should seek the Attorney General’s opinion on USD 480 mn Compact. The suggestion as Attorney General Department did not respond to issues raised by the Gunaruwan Committee.
The Attorney General’s Department recently said that in addition to the Gunaruwan Committee report, several others, including the Land Commissioner, the Survey General and Director General of the External Resources Department were to be called.
Controversy surrounds a claim that Sri Lanka received USD 10 mn in advance on two separate occasions during the previous administration, but both the donor and recipient have denied the transactions. Perhaps, Director General of External Resources could set the record straight, sources said.
President Gotabaya Rajapaksa’s government is yet to announce its stand on the agreement.
The US embassy during the previous administration said that the US expected Sri Lanka parliament to decide on the USD 480 mn Compact.
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Sun directly overhead Beruwala, Gurulubadda, Rakwana, Godakawela, Udawalawe and Thanamalwila at about 12:13 noon today (06)
On the apparent northward relative motion of the sun, it is going to be directly over the latitudes of Sri Lanka during 05th to 15th of April in this year.
The nearest areas of Sri Lanka over which the sun is overhead today (06th) are Beruwala, Gurulubadda, Rakwana, Godakawela, Udawalawe and Thanamalwila at about 12:13 noon.
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Heat Index at Caution Level in the Western, Sabaragamuwa, Southern, Eastern, North-western, Northern and North-central provinces and in Monaragala district
Warm Weather Advisory
Issued by the Natural Hazards Early Warning Centre
Issued at 3.30 p.m. on 05 April 2026, valid for 06 April 2026.
The Heat index, the temperature felt on human body is likely to increase up to ‘Caution level’ at some places in the Western, Sabaragamuwa, Southern, Eastern, North-western, Northern and North-central provinces and in Monaragala district.
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.
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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 011-7446491.
News
West Asian conflict benefits China-managed H’tota Port
The ongoing West Asia war, triggered by joint Israel-US attack on Iran on 28 Februar, has benefited the China-run Hambantota International Port (HIP).With Iran imposing restrictions on the Strait of Hormuz shipping, in retaliation for unprovoked attack, thereby choking vital shipping routes, particularly for crude oil and refined oil products, HIP situated, along the East-West shipping corridor, has received the anticipated attention.
Soon after the sinking of an unarmed Iranian frigate, just outside Sri Lanka’s territorial waters, in India’s backyard, Indian External Affairs Minister Subrahmanyam Jaishankar categorised HIP as a foreign military base, along with Diego Garcia, Bahrain and Djibouti, where both the US and China maintained major bases.
HIP, in a press release issued on Sunday (05), declared that the Port has significantly expanded its operational capacity, in response to a sharp surge in global shipping volumes, resulting from the West Asia conflict.
The company asserted that the developing situation reinforced its position as a key alternative hub along the East–West shipping corridor.
The port has doubled its Roll-on/Roll-off (RoRo) yard capacity and increased its container yard capacity by 30%, as shipping lines divert operations away from disrupted routes in search of stable and efficient alternatives.
HIP is situated just 10 nautical miles from the main East–West shipping route, allowing vessels to divert with minimal deviation while maintaining schedule integrity.
The Chinese government-owned China Merchant Port Holdings (CMPort) under controversial circumstances acquired controlling interests of the Hambantota port in 2017 during the Yahapalanaya administration. Although the Sri Lankan government repeatedly said that Sri Lanka was paid USD 1.12 bn according to the HIP website CMPort invested $974 mn in the HIP and held 85 percent of the shares.
The 2017 agreement granted CMPort a 99-year lease to develop, manage and operate the Port area. The Supreme Court dismissed a fundamental rights petition filed by lawmaker Vasudeva Nanayakkara pointing out that the original agreements pertaining to the Hambantota port had been signed in 2012 and 2013 during Mahinda Rajapaksa’s tenure as the president when he was a member of the Rajapaksa Cabinet.
The HIP press release quoted CEO of HIP Wilson Qu as having said: “What we are witnessing today is a structural shift in global shipping patterns. At HIP, we have focused on building the capacity and operational agility to respond to such changes. Our ability to scale quickly, combined with our location, allows us to support global shipping lines when reliability becomes critical. Looking ahead, we will continue to invest in infrastructure and capabilities to strengthen Hambantota’s role as a key logistics and transshipment hub in the region.”
The rise in both vehicle transshipment and container volumes has driven yard utilization levels to the highest in HIP’s history, highlighting the scale of ongoing supply chain disruptions and the port’s growing strategic importance in global trade.
To accommodate increased throughput, HIP has rapidly expanded yard space across both cargo segments, enabling it to handle higher volumes while maintaining operational efficiency and minimizing congestion. Expanding capacity within a short time frame in a live port environment presents considerable operational and technical challenges and requires significant investment. However, through close coordination across management, engineering and operational teams, HIP was able to deliver these enhancements in step with rising demand.
The HIP statement added: “The expansion reflects Hambantota International Port’s continued development as a resilient logistics platform in the Indian Ocean, as geopolitical developments reshape established maritime routes and increase demand for alternative hubs. As infrastructure scales in tandem with demand, HIP is increasingly positioned to capture a larger share of regional transshipment volumes while supporting the continuity of global supply chains.”
Amidst the continuing uncertainty caused by war and growing threat to international shipping the Hambantota International Port Group (HIPG) the owning group of HIP recently finalised an agreement to invest USD 108 mn to procure new container handling equipment- six quay cranes, 16 rubber-tyred gantry cranes (RTGs) and 40 trailers, under the initial phase of the port’s Phase II container terminal development.
By Shamindra Ferdinando
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