News

Cabinet approved USD 480 mn US Compact ignoring President Sirisena’s objections

Published

6 years ago

2020/08/19

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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Latest News

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

Published

8 hours ago

2026/04/16

Priyan

Warm Weather Advisory
Issued by the Natural Hazards Early Warning Centre
Issued at 3.30 p.m. on 15 April 2026, valid for 16 April 2026.

The Heat index, the temperature felt on human body is likely to increase up to ‘Caution level’ at some places in the Northern, North-central, North-western, Western, Sabaragamuwa, Eastern
and Southern 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.
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 011-7446491

Latest News

Indonesian Navy Sailing Ship KRI BIMA SUCI – 945 makes port call in Colombo

Published

13 hours ago

2026/04/15

Priyan

The Indonesian Navy Sailing Ship KRI BIMA SUCI – 945 arrived at the Port of Colombo on a goodwill visit on 15 Apr 2026 and was welcomed by the Sri Lanka Navy (SLN) in compliance with time-honoured naval traditions.

The vessel’s arrival is a key highlight of the ASEAN Plus Cadet Sail (APCS) – 2026 programme , accompanying a diverse contingent of Navy cadets from 26 different nations alongside their Indonesian counterparts.

The ship is commanded by Commander SUGENG HARIYANTO. Meanwhile, Officer Under-trainees of the Sri Lanka Navy are expected to participate in various programmes aboard the
ship and naval personnel observe its operational functions during its stay in the island.

Furthermore, the ship’s crew is scheduled to take part in programmes organized by the Sri Lanka Navy to enhance camaraderie between the two navies, as well as visit several tourist attractions in the country.

News

PM initiates children into learning at the auspicious time while observing New Year traditional customs and rituals

Published

13 hours ago

2026/04/15

Priyan

The Sinhala and Tamil New Year cultural festival, organized by the Ministry of Buddha Sasana, Religious and Cultural Affairs, was held on Tuesday (14) in Gampaha under the patronage of Prime Minister Dr. Harini Amarasuriya, with the performance of traditional auspicious customs and rituals.

In accordance with tradition, during the Punya Kalaya (inauspicious time), the Prime Minister visited the Medagama Sri Sunandarama Viharaya in Gampaha and participated in religious observances and received blessings from Venerable Thunmodara Samitha Thero, a member of the Karaka Sangha Sabha of the Sri Lanka Ramanna Maha Nikaya and the Chief Incumbent of the Medagama Sri Sunandarama Dharmaduta Piriven Viharaya.

The traditional observances of the Sinhala and Tamil New Year cultural festival were held at the residence of Darshana Weerasinghe in Gampaha. Marking the auspicious time for commencing work, and upon the invitation of the host family, the Prime Minister planted a sapling within the premises. Concurrently, Minister of Buddha Sasana, Religious and Cultural Affairs, Dr. Hiniduma Sunil Senevi, and Minister of Foreign Affairs and Tourism, Vijitha Herath, joined the PM.

Subsequently, the Prime Minister joined children in engaging in traditional folk games.

At the auspicious time for engaging work and educational activities, the PM participated with children in reading and writing, guiding them and symbolically marking the commitment to advancing the educational development of the nation’s children.

Thereafter, the Prime Minister and other distinguished guests observed the traditional customs of exchanging greetings, transactions and gifts with the host family, and joined them to partake in the customary New Year meal.

Extending New Year greetings to all citizens, the Prime Minister expressed her gratitude to all Sri Lankans, both at home and abroad, for their contributions in overcoming and effectively managing the various challenges faced by the country.

Speaking at the occasion, Minister Dr. Hiniduma Sunil Senevi stated that the Sinhala and Tamil New Year festival symbolizes renewal and purity, and reflects the energy of the sun. He also conveyed his wishes for a peaceful and prosperous New Year for all.

The occasion was attended by the Deputy Minister of Finance and Planning and Minister of Labour, Dr. Anil Jayantha; Deputy Minister of Labour, Mahinda Jayasinghe; Member of Parliament for the Gampaha District, Ruwan Mapalagama; along with the Gampaha District Secretary, Mayor, Divisional Secretaries, and a large number of government officials.

(Prime Minister’s Media Division)