News
Church welcomes Prez’s promise to move against those named in Easter Sunday PCoI
Maithripala Sirisena, Nilantha J, two senior AG Department officials among the culprits
By Shamindra Ferdinando
The Catholic Church yesterday (25) welcomed President Gotabaya Rajapaksa’s declaration that the government had the required 2/3 majority in Parliament to take action against those who had been named in the Presidential Commission of Inquiry (PCoI) by introducing a new Act in Parliament.
Top spokesperson for the Church Rev Fr. Cyril Gamini Fernando told The Island that the Church had repeatedly asked for the full implementation of the recommendations made by the PCoI.
Rev. Fernando said that the Church launched a sustained campaign due to the inordinate delay on the part of the government to act on the PCoI recommendations.
The PCoI handed over its report to President Gotabaya Rajapaksa on Feb 01 this year.
Having vested the newly built Kelani Bridge with the people, President Gotabaya Rajapaksa warned the Opposition not to push the government on the issue at hand as it enjoyed the parliamentary majority needed to enact necessary legislation to punish the culprits.
Rev. Fernando emphasised that the stand taken up by the Catholic Church in respect of the PCoI recommendations was clear. Responding to a query, Rev Fernando said that the Catholic Church quite clearly accepted the composition of the PCoI, appointed on Sept 21, 2019 by the then President Maithripala Sirisena. In spite of the change of government two months later, the Catholic Church accepted the composition of the PCoI, Rev Fernando said, adding that a team of lawyers represented the Catholic Church at the PCoI.
Now that President Gotabaya Rajapaksa has assured that his administration would act on the recommendations, the Catholic Church hoped the government would go the whole hog.
The five-member PCoI consisted of Appellate Court Judge Janak de Silva (Chairman), Appeal Court Judge Nissanka Bandula Karunarathna, Retired Judge of the Court of Appeal Nihal Sunil Rajapaksa, Retired Judge of the High Court Bandula Kumara Atapattu and retired Ministry Secretary Ms. W.M.M. Adikari.
Asked whether the Catholic Church would give up its campaign both here and abroad to pressure the government over the delay in the judicial process, Rev. Fernando said the Criminal Investigation Department (CID) had so far questioned him for three days –over a period of 15- 16 hours subsequent to a complaint lodged by State Intelligence Service (SIS) Chief Maj. Gen. Suresh Salley. “The Catholic Church had no option but to seek justice whatever the consequences as we felt efforts are being made to discard PCoI recommendations,” Rev. Fernando said.
Rev. Fernando pointed out that one of those who had been named by the PCoI, Senior DIG Nilantha Jayawardena, Maj. Gen. Salley’s predecessor was a key prosecution witness now.
The National Catholic Committee for Justice in July this year urged President Gotabaya Rajapaksa to implement the PCoI’s recommendations in respect of the then President Maithripala Sirisena, who is also the leader of the SLFP and the then Prime Minister and the leader of the UNP Ranil Wickremesinghe.
The SLFP with 14-member group is the second biggest constituent in the government.
The Church released an 18-page report that had been sent to President Gotabaya Rajapaksa. The report dealt with specific alleged lapses on the part of the incumbent government.
Referring to the PCoI report (PCoI Final Report Vol. 1, p 265), the Church asked why the government had refrained from initiating criminal proceedings against Sirisena under suitable provisions in the Penal Code.
The Church also found fault with the PCoI for failing to make specific recommendations in respect of UNP leader Ranil Wickremesinghe, though it recognized his role in facilitating Islamic extremism. Referring to PCoI assessment of PM Wickremesinghe’s soft approach towards Islamic extremism that paved the way for the Easter Sunday carnage (P CoI Final Report Vol 1, p 276-277), the Church said that they couldn’t comprehend why specific recommendation was not made.
Archbishop of Colombo Malcolm Cardinal Ranjith told a July media briefing that Wickremesinghe’s lax approach and irresponsible attitude should have been thoroughly investigated.
The Cardinal on behalf of the National Catholic Committee for Justice declared that unless the government addressed their grievances they would be compelled to resort to other means to obtain justice.
Noting that legal action had been initiated against the then Defence Secretary Hemasiri Fernando over his failure to thwart the Easter Sunday bombings, the Catholic Church asked why action hadn’t been taken in respect of the then Chief of National Intelligence retired DIG Sisira Mendis and Director of State Intelligence Service Senior DIG Nilantha Jayawardena. The Church pointed out that the PCoI had recommended that the Attorney General should consider criminal proceedings against Mendis and Jayawardena under any suitable provision in the Penal Code.
The Church stressed that the P CoI made the recommendation on the basis that the available evidence indicated that there was criminal liability on the part of both Mendis and Jayewardena.
The following are the P CoI recommendations in respect of the then Senior DIG Western Province Nandana Munasinghe (criminal liability), DIG Colombo North Deshabandu Tennakoon (disciplinary inquiry), SP Colombo North Sanjeewa Bandara (criminal liability), SP Chandana Atukorale (criminal liability), Director Western Province Intelligence Division B.E.I. Prasanna (criminal liability), ASP S. Kumara (disciplinary inquiry), Acting OIC, Fort Chief Inspector R.M. Sarath Kumarasinghe (criminal liability), OIC Fort Chief Inspector Sagara Wilegoda Liyanage (criminal liability) and OIC Katana Chaminda Nawaratne (disciplinary inquiry).
Rev. Fernando stressed that contrary to claims the Church hadn’t been given access to the full report. The Church spokesperson pointed out that the PCoI recommended the Public Service Commission take disciplinary action against State Counsel Malik Azeez and Deputy Solicitor General Azad Navani for their failure that may have contributed to the Easter Sunday carnage.
The PCoI also made reference to ACMC leader Rishad Bathiudeen, his brother, Riyaj Bathiudeen, Dr. Muhamad Zulyan Muhamad Zafras, Ahamed Lukman Thalib and M.L.A.M. Hizbullah.
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Unions resist tripartite EPF management plan
… warn of dire consequences
A group of trade unions and civil society groups has requested President Anura Kumara Dissanayake to abandon his government’s controversial plan for the proposed tripartite management of the EPF.
The group has told the President: “We strongly object to the government’s plan to transfer the EPF to a tripartite board—jointly promoted by the Employers’ Federation of Ceylon (EFC), International Monetary Fund (IMF) and the International Labour Organisation (ILO)—and to increase the investments of those funds within private equity and debt markets.
“While the EFC and the government jointly project this plan as a ‘modern governance framework’, it poses a serious threat to the EPF’s financial stability, fiduciary conduct, and returns to workers’ life savings, with severe consequences for broader macroeconomic stability. Rather than replacing the corruption existing in the public sector, this tripartite framework paves the way for a corporate takeover of the EPF. Through this, the fund is exposed to unlawful business practices such as insider trading using internal information of EPF investments, conflicts of interest and corporate bailouts of unstable private companies.
“Sri Lanka’s corporate sector has a tremendously negative track record, which you alluded to during your victorious election campaign in 2024. This was recently unravelled by the multi-billion-dollar illicit capital flight through trade misinvoicing, which your administration is now actively working to curb in the imports sector.
“The recent banking sector fraud exceeds Rs. 13 billion; widespread corporate tax evasion destabilised the fiscal position (Sri Lanka Auditor General’s Department Annual Reports) and consequently inflated the tax burden on the general public. The EFC has found it convenient to remain silent about these crimes, possibly assuming that their silence would preserve their social standing. Considering this inherent corruption within Sri Lanka’s corporate sector and its disregard to the living standards of the general public, there is no realistic basis to integrate corporate interests to actively manage the EPF. The corporate sector of Sri Lanka has not developed sufficiently on technical and ethical grounds to safely entrust the largest retirement savings pool in the country. The EPF is a captive fund that has no mechanism for the owners to divest if the management is corrupt. This further increases the possibility of corporate fraud when the management of the fund is jointly held with the corporate sector.
“Furthermore, during the recent public discussion with trade unions, Deputy Minister of Finance Dr. Anila Jayantha pointed out that the domestic debt restructuring (DDR) would inflict a loss of Rs. 600 billion to the EPF. Our independent calculations—formally submitted as an affidavit to the Supreme Court approved by the Federation of University Teachers’ Associations in 2024—reveal that nominal loss alone is Rs. 634.4 billion. When factoring in foreclosed reinvestment returns, the true loss skyrockets to Rs. 1,711 billion, wiping out 48% of the fund’s projected gross income for the 2023 – 2028 period. Under the pretext of safeguarding the banking system, this colossal robbery preserved high yields on government bonds held by commercial banks and high-net-worth individuals, subsequently reaping them astronomical profits. Now, the exact same plunder is rearing its head again disguised as a tripartite committee.”
“The main arguments supporting our resistance and viable alternatives for optimising EPF management directly under the Central Bank of Sri Lanka (CBSL), are outlined below.
“Objections to the government’s tripartite proposal:
1. The “International best practice and conflict of interest fallacies”
The government holds that tripartite management of pension funds is the “international best practice” and that there is a “conflict of interest” in CBSL managing the EPF. They are key pillars justifying government’s tripartite proposal.
These two positions are shockingly misleading given that four of the five largest pension funds in the world, in Norway, Japan, the U.S., and Singapore, are managed directly by state bodies or central banks. Therefore, ‘international best practice’ in pension fund management is the exact opposite of what the government and the IMF are proposing. We hence reject these baseless positions.
2. Corporate captivity and bailouts
It is clear that the EFC is desperately pushing for this proposal at a time of global uncertainty, to cushion the effects of the crisis and maximise gains. Under corporate influence within the proposed tripartite board, the private conglomerates can use the multi-trillion-rupee EPF to continue their unstable commercial operations without having to risk their own capital or savings to do so. This will severely erode the financial stability of the EPF and its returns.
3. Risk of front running
“Because the EPF is a colossal fund, its investment decisions can alter asset prices. This creates immense monetary value for the information generated by its investment decisions. Corporate representatives on the proposed tripartite board will be perfectly positioned to use this information to trade ahead of the EPF (front-running), buying assets cheaply and dumping them onto the EPF at inflated prices for guaranteed corporate gain, resulting in a reduction of returns to the EPF.
4. Unavoidable loopholes
“Presence of a separate group of investment analysts, trade union representatives and government officials within the proposed tripartite structure cannot prevent pre-market corporate access to EPF’s investment decisions. Investment proposals made by the analysts has to be first approved by the proposed tripartite committee, making it impossible to prevent corporate access to insider information on EPF investments.”
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