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Chinese ‘debt trap’: President sets record straight
‘Independence and sovereignty won’t be compromised in foreign relations’
Pointing out that China had assisted in the development of Sri Lanka’s infrastructure since the end of the separatist war in May 2009, President Gotabaya Rajapaksa yesterday (28) insisted that Sri Lanka had not been caught in a debt trap as a result.
President Rajapaksa made his position clear as regards repeated US allegations that Sri Lanka is in a Chinese debt trap when he met US Secretary of State Michael Pompeo at the Presidential Secretariat.
Pompeo arrived at the BIA from New Delhi on Tuesday night (27). The visit took place in the wake of the high level Chinese delegation meeting President Gotabaya Rajapaksa where Beijing reiterated its commitment to Sri Lanka’s prosperity.
The President’s Office quoted the US Secretary of State Mike Pompeo as having assured President Gotabaya Rajapaksa that the United States was ready to continuously engage Sri Lanka in its strive to achieve economic development goals.
His country expects to further develop already existing strong bilateral relations between the two countries, the PO statement quoted Pompeo as having said.
The PO statement: During the cordial discussion between the two parties, views on a number of areas of bilateral and regional importance were exchanged.
Expressing the desire of the United States to continue to work closely with Sri Lanka in achieving a high level of economic development the American Secretary of State said priority will be given to promote US investments in the Island.
Tourism is a key sector that contributes to employment and income generation. USA is ready to give a helping hand to the development of this area under a carefully prepared action plan, Mr. Pompeo stated.
In response President Rajapaksa said what Sri Lanka wants is not obtaining loans continuously but to achieve a high level of economic growth by attracting more foreign investments.
“We have already begun to remove bureaucratic red tape that hinder foreign investment. Sri Lanka is a country that possesses necessary factors to achieve a high agricultural development. Our agriculture sector should be modernized. Scientific research should be conducted in order to reach this goal. We expect your assistance towards this end”, President Rajapaksa stressed.
Elaborating on the foreign policy of Sri Lanka, President said it is based on neutrality.
Relations between Sri Lanka and other nations are determined by several conditions. Historic and cultural relations, development cooperation are some of the priorities. President stressed that he is not ready to compromise the independence, sovereignty and territorial integrity of the nation in maintaining foreign relations whatever the circumstances may be. Noting that China assisted in the development of the country’s infrastructure since the end of the separatist war, the President reiterated that Sri Lanka is not caught in a debt trap as a result.
The two sides agreed to further strengthen the defence cooperation already established between Sri Lanka and the United States. These include training opportunities and material assistance from the United States to security forces personnel in Sri Lanka.
When President emphasized the need to strengthen the coast guard services to combat drug trafficking, the State Secretary said that the US could assist in this endeavor.
Mr. Pompeo said that the United States wishes to see that the Indian Ocean remains a zone of peace. He expressed satisfaction over the existing friendly ties between Sri Lanka and India. President Rajapaksa stated that Sri Lanka also hopes to see peace in the Indian Ocean.
Both parties also agreed to work together on human rights issues in international fora.
The US Ambassador to Sri Lanka Alaina Teplitz, Under Secretary of State Brian Bulatao, Chief Assistant Deputy Secretary at Bureau of South and Central Asian Affairs Dean Thompson, Senior Advisor to the State Secretary Mary Kissel were the other members of the US delegation.
Minister of Foreign Relations Dinesh Gunawardena, Secretary to the President P.B. Jayasundera, Secretary to the Ministry of Foreign Relations Admiral Jayanath Colombage, Principal Advisor to the President Lalith Weeratunga and Sri Lanka’s Ambassador – designate to the US Ravinatha Aryasinghe were also present during the discussion.
Latest News
Sun directly overhead Bentota, Thiniyawala, Iththakanda, Udawalawe, and Kataragama about 12.08 noon t9day (06)
The sun is going to be directly over the latitudes of Sri Lanka from 28th of August to 07th of September due to its apparent southward relative motion.
The nearest places of Sri Lanka over which the sun is
overhead today (06) are Bentota, Thiniyawala, Iththakanda, Udawalawe, and Kataragama about 12.08 noon
News
UN welcomes Lanka’s anti-graft drive, seeks end to impunity
MONETABRIEF –The UN human rights chief on Thursday welcomed Sri Lanka’s robust anti-corruption drive but urged President Anura Kumara Dissanayake to apply the same vigour to ending impunity for continuing rights abuses.
In its latest report to the UN Human Rights Council in Geneva, High Commissioner Volker Turk noted that cases of torture and deaths in custody continued to be reported in Sri Lanka despite the change of administration.
“While it is encouraging that the Sri Lankan authorities have taken action to address corruption cases and some crimes linked to the post-war period, more needs to be done to end the long legacy of impunity in the country,” the rights chief said.
His report, covering October 2025 to July 2026, notes steps to tackle corruption, including high-profile arrests and investigations linked to political killings, enforced disappearances and the 2019 Easter Sunday attacks.
He said it had been a difficult period for Mr Dissanayake’s new government, following the devastating Cyclone Ditwah which killed some 650 people and devastated much of the island and a global spike in energy prices.
The report noted that the Human Rights Commission of Sri Lanka had documented 602 cases of torture and ill-treatment in 2025 and 138 cases by April 2026.
The local commission also reported 18 deaths in custody last year and a further three by April this year. In one such case, a 40-year-old inmate detained for a minor drug-related offence died at Welikada Prison in Colombo on 3 May, allegedly from severe beatings.
“This Government still has an opportunity to turn the tide on decades of abuse of executive power, repressive laws and custodial violence, and entrenched impunity,” Turk said.
He regretted that the government had yet to deliver on its promise of legal and institutional reforms and continued to apply the repressive Prevention of Terrorism Act (PTA), resulting in arbitrary arrests and prolonged detention without charge.
Civil society actors, activists and journalists remained subject to state surveillance, while tensions over land and religious sites continued to simmer, the report said.
It also highlighted violent riots at Negombo Prison in July, which left at least 32 dead, underscoring the urgent need for prison reform to address systemic issues, including severe overcrowding.
The UN Human Rights Office had received at least 16 allegations of surveillance against civil society actors, activists and journalists, the report said.
There was “a clear and continuing pattern of state surveillance, intimidation and reprisals by military and intelligence officials, including from the Criminal Investigations Department or the Terrorism Investigation Division”.
“Individuals are repeatedly questioned about their travels, especially to Geneva and engagement with UN human rights processes, as well as their organizational affiliations, funding sources, and participation in protests or commemorative events.”
While the Government had continued to denounce racism and promote national unity, wider efforts to ensure truth and justice risked stalling and the momentum for transformative change being lost, the report warned.
Failures to effectively investigate and prosecute crimes under international law allegedly committed during the armed conflict persisted.
“It is crucial that there is decisive and meaningful action toward accountability for crimes and violations by all parties during the more than two-decade armed conflict,” Turk said.
He noted the recent decision by the Attorney-General to indict former Eastern Province Chief Minister Sivanesathurai Chandrakanthan, also known as Pillayan, and three others in connection with the abduction and murder of former Eastern University Vice-Chancellor Professor Sivasubramaniam Raveendranath in 2006.
“It is, however, regrettable that many other serious emblematic cases remain stalled for years, including the killing of 17 Action Contre La Faim aid workers in Muttur 20 years ago,” he said, calling for meaningful steps to resolve such delays.
The High Commissioner urged Sri Lanka to redouble its reconciliation and accountability efforts. He called for a moratorium on the use of the Prevention of Terrorism Act pending its repeal, as well as the release of long-term detainees held under it.
He also called for all individuals credibly accused of human rights violations to be excluded from senior positions in government, the security sector or the diplomatic service until such allegations were genuinely addressed and resolved.
He urged the Government to support victims’ memorialisation initiatives and to release military-occupied lands.
News
Dispute which triggered listed company director being detained at BIA resolved
A dispute between a wholly owned subsidiary of Lanka Realty Investments PLC, Mulberry Holdings (Pvt) Ltd., and a contractor, Omni Engineering & Trading Solutions, that resulted in Executive Director Hisham Jamaldeen of Lanka Realty being stopped at Katunayake and prevented from leaving on a business visit to the UK has been resolved with Jamaldeen bailed and the travel ban imposed on him revoked by the Maligakanda Magistrate, Lanka Realty’s said in a Stock Exchange filing last week.
This followed Mulberry agreeing to pay Rs. 25 million to Omni on or before Sept. 26.
Following media reports of Jamaldeen being prevented from leaving the country at the BIA, Lanka Realty made two Stock Exchange filings on Sept. 3 – the first detailing the dispute between the two parties and the second indicating that the matter had been settled.
In the first filing, the Secretaries for Lanka Realty said:
“The article refers to Mr. Mohamed Hisham Jamaldeen, Executive Director of Lanka Realty Investments PLC and a Director of Mulberry Holdings (Pvt) Ltd, a wholly owned subsidiary of the Company and the developer of “Mulberry Residences” in Colombo 10.
“Mulberry Holdings (Pvt) Ltd entered into a construction contract with Mr. Randika of M/s Omni Engineering & Trading Solutions on 21st June 2022 for a sum of LKR 32,854,992.00), which is less than 1% of the total value of the “Mulberry Residences” Project which is around LKR 3.6 Billion.
“The said contract is governed by the CIDA/SBD1 Standard Bidding Document Conditions of Contract, which provides for adjudication and, if required, arbitration as the applicable dispute resolution process. The Company understands that the underlying matter relates to a contractual payment dispute involving Mulberry Holdings (Pvt) Ltd’s aforcsaid contract.
“Following a call received from the Colombo Crime Division (CCD), Mr. Jamaldeen went to the CCD on 25th August 2026 and provided a statement in relation to the matter inter alia explaining that the matter in dispute was arising from a civil contract. He was not arrested on that date and was not informed at that time or thereafter prior to receiving information at the Airport, that a travel ban had been imposed.
“On 2nd September 2026, while travelling overseas for business on a pre-arranged itinerary, Mr. Jamaldeen was informed at immigration of a travel ban imposed on 24th August 2026, following which he was arrested by the CCD. A bail application is expected to be made when Mr. Jamaldeen is produced before the Magistrate’s Court of Maligakanda today, 3rd September 2026.”
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