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Cancellation of Japanese projects to be probed

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FR petition says govt. deprived itself of USD 8 bn

By Shamindra Ferdinando

Chairperson of the Committee on Public Finance (COPF) Anura Priyadarshana Yapa yesterday (08) said that he would initiate an inquiry into the cancellation of several foreign-funded projects, following the last presidential election, in Nov 2019.

Yapa said so responding to The Island query whether he would act on Prime Minister Ranil Wickremesinghe’s request for a parliamentary probe into the cancellation of such projects.

Alleging that the unjustifiable government action deprived the country of much needed foreign investment, therefore contributed to the economic meltdown, Premier Wickremesinghe declared that Tokyo was unhappy. The Prime Minister’s Office quoted the UNP leader as having told Parliament on Tuesday: “Japan is our longtime friend. A nation that has helped our country greatly. But they are now unhappy with us due to the unfortunate events of the past. Our country had failed to formally notify Japan of the suspension of certain projects. Sometimes the reasons for these suspensions were not even stated.”

Lawmaker Yapa said that he, too, felt an inquiry was required into the matter.

On the basis of certain reports received from an unidentified person, Premier Wickremesinghe told the House that some of the projects that had been undertaken and partly implemented by Japan were halted midway.

Premier Wickremesinghe wants COPF to investigate cancellation of the Liquid Natural Gas (LNG) projects, undertaken by India and Japan. The Premier has alleged that the CEB halted both projects without at least giving justifiable reasons.

Lawmaker Yapa said that the allegation pertaining to putting on hold, projects funded by Japan, to the tune of USD 3 bn, by 2019, was quite serious.

MEP leader Dinesh Gunawardena served as the Foreign Affairs Minister. Prof. G.L. Peiris succeeded Gunawardena, in August 2021.Former Commander of the Navy Admiral Jayanath Colombage served as Secretary to the Ministry of Foreign Affairs till recently.

Legal sources said that cancellation of several high profile foreign funded projects, including the Millennium Challenge Corporation (MCC) project had been cited in a fundamental rights petition, recently filed against the former Finance Ministers, Mahinda Rajapaksa, Basil Rajapaksa and Ali Sabry, other members of the Cabinet, the Monetary Board of the CBSL, former Governors of the CBSL, Prof. W.D. Lakshaman and Ajith Nivard Cabraal, former Finance Secretary S.R. Attygalle, Monetary Board member S.S.W. Kumarasinghe, former Presidential Secretary Dr. P.B. Jayasundera and three Commissioners of the Commission to Investigate Allegations of Bribery or Corruption (CIABOC). Premier Wickremesinghe has been made the first respondent as he is the incumbent Premier.

The petition, filed by Dr. Athulasiri Kumara Samarakoon of the Open University of Sri Lanka, Soosaiappu Neavis Morais and Dr. Mahim Mendis, in terms of Articles 17 and 126 of the Constitution, alleged that after the last presidential election several projects, that had been finalized and would have generated substantial revenue in foreign exchange, were stopped. The petition named the cancelled projects as the Light Rail Project, East Container Terminal (ECT) involving India, and Japan, the Central Highway Phase 3 and 4 with Japan and India, and the MCC Agreement with the US.

The MCC had been among three other agreements sought by the US. The yahapalana government entered into the Access and Cross Servicing Agreement (ACSA) in August 2017. Talks on Status of Forces Agreement (SOFA) were stalled.

The petitioners stated that the projects had been done away with on the directives of President Gotabaya Rajapaksa. Asserting had those agreements were implemented the country wouldn’t have been in the current predicament, the petitioners brought to the notice of the Supreme Court that the first respondent before being appointed as the Premier on May 12 declared the country was deprived of USD 4,000,000,000 due to the cancellation of those projects.

The petitioners further stated that the incumbent dispensation caused the current calamity by turning down of USD 400,000,000 IMF facility.

Authoritative sources said that the government antagonized Japan by not even giving prior notice of the utterly reprehensible decision. Sri Lanka violated diplomatic protocol, sources said, Japan’s unenthusiastic response to President Gotabaya Rajapaksa’s request for USD 3 bn loan should be examined against the backdrop of our irresponsible conduct, sources said. Japan has advised Sri Lanka that they would consider lending after the government reached agreement with the IMF or get close to the finalization of the required facility.

Meanwhile, Sri Lanka’s Ambassador in Tokyo Sanjiv Gunasekera would leave office on June 15. Gunasekera, a close associate of President Gotabaya Rajapaksa, informed the President, on May 09, of his decision to quit on June 09. However, he would continue for a week in view of some official commitments.



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No PC polls this year, says Tilvin

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Tilvin

The much-delayed Provincial Council (PC) elections cannot be held this year due to financial and legal constraints, JVP General Secretary Tilvin Silva has said in Jaffna.Silva said so, fielding questions from journalists after the opening of the NPP coordination office in the Jaffna District on Saturday.

When asked whether the government was under Indian pressure to conduct the Provincial Council elections soon, Silva answered in the negative, claiming that Sri Lankan and Indian governments maintained close and friendly relations with a strong level of understanding.

He said budgetary allocations had been made for the PC elections, but the government had been compelled to divert resources for disaster relief following the impact of Cyclone Ditwah. According to Silva, nearly Rs. 500 billion had to be allocated for relief measures, making it difficult to hold the elections this year. He further said legal complications in the electoral reform process had also contributed to the delay in holding the PC elections, noting that a parliamentary committee had been appointed to determine the electoral systems under which the PC polls should be conducted. Once the committee submitted its report and if no further issues arose, the elections could possibly be held next year, he said.

Silva also said the government had taken measures to strengthen reconciliation and development in the North by releasing lands previously occupied by military camps and improving road infrastructure.He added that empowerment initiatives were being implemented under the Praja Shakthi programme and that both Sri Lanka and India were continuing to work in close cooperation.

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Weather conditions worsen, displacing 31,000 people

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More than 31,000 people across Sri Lanka have been affected by worsening weather conditions, as the southwest monsoon intensifies ahead of its full establishment, raising fears of renewed flooding in vulnerable low-lying areas, the Disaster Management Centre (DMC) has warned.

The DMC has said 31,072 individuals from 7,983 families have already been impacted by persistent rain, strong winds and rising water levels across multiple districts, with the situation most severe in the Gampaha District where 15,313 people from 3,950 families have been affected and one death reported.

Officials have cautioned that the scale of disruption could worsen as the southwest monsoon is expected to fully establish over the island around May 26–27, bringing heavier and more sustained rainfall to the southwestern region.

At present, 18 safety centres are in operation, sheltering 1,724 displaced persons from 446 families. One person has been injured and 859 houses have been partially damaged. Two houses have been destroyed.

The Department of Meteorology has forecast increased rainfall over the coming days, warning that conditions are likely to deteriorate further as monsoon activity strengthens.

Flood-hit areas remain widespread, with river systems still under pressure despite a brief easing in rainfall on Saturday. The Kelani River has returned to normal levels, but minor flooding persists along the Kalu River basin, particularly in the Millakanda area, where tributary water levels remain elevated.

Low-lying areas in Bellapitiya, Horana, continue to be inundated, while traffic on the Bulathsinhala–Kalutara road remains disrupted due to flooding in Diyakaduwa. Authorities have also flagged continued risk in Putupawula and Ellagawa along the Kalu River.

The Attanagalu Oya basin is also slowly receding, though residents in Dunamale have been urged to remain on alert. Several homes in Ja-Ela remain underwater, with residents alleging that delayed repairs to a damaged canal embankment worsened the flooding.

In a fresh blow to infrastructure, the Swarna Hansa Podi Ela bridge in Ja-Ela collapsed on Saturday evening, further disrupting local transport links, while the main Ja-Ela–Gampaha bus route remains submerged in parts of Yakkaduwa.

Meteorologists have warned that rainfall is expected to intensify again from May 26 to 28, when the southwest monsoon is likely to be formally declared over Sri Lanka, raising the risk of further flooding and landslides in already saturated areas.

by Norman Palihawadane and Chaminda Silva

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Dickoya double murder suspect arrested

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Police said a suspect wanted in connection with the murder of an elderly couple inside a shop in Dickoya town, Hatton, had been arrested on Saturday evening (23).

The arrest was made in the Bogawantalawa police area. Acting on a tip-off, the police arrested him while he was hiding in a house on a tea estate.

Police said stolen gold jewellery had been recovered.

Preliminary investigations revealed that the suspect, originally from Badulla, had been residing in Dickoya after his marriage.

Earlier on Saturday, Hatton Police released CCTV footage of the suspect and sought public assistance to trace and arrest him.

According to police, the suspect allegedly slit the throat of the elderly woman and killed her husband using a sharp weapon on Thursday (21) before fleeing with gold jewellery valued at around 18 sovereigns, including a necklace and earrings.

Investigations further revealed that the suspect had arrived in Dickoya town on the morning of May 21 and visited several jewellery shops claiming he intended to purchase a gold necklace, while loitering in the area.

Police said that around 1.15 pm, he entered the couple’s shop and remained concealed inside the premises before allegedly carrying out the attack.

Hatton Police added that the suspect is believed to have committed the murders and left the shop around 5.30 pm the same day before going into hiding.

by Norman Palihawadane

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