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CID informs court that UK citizen pocketed part of broker’s fee

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Alleged misappropriation of Rs 195 mn:

The CID informed Fort Magistrate Court that British citizen Kathiravelpillai Satkunam admitted to have pocketed the broker’s fee in a case involving approximately Rs 195 mn, which been fraudulently obtained from a group of shareholders following the sale of a plot of land at Kollupitiya, the majority shareholder being a UK-based limited liability company.

Latest court papers filed indicated that the accused Kathiravelpillai Satkunam of 43, Hays Walk, Sutton, an affluent suburb in the United Kingdom, in his statement to the CID’s Commercial Crime Investigation Division, admitted that he misappropriated a large portion out of a sum of LKR 131mn in 2010.

Further to our report on 31 May 2023 on the alleged misappropriation of LKR 195mn, a further hearing was held of case reference 8919/2018 at the Fort Magistrate Court on 13 September 2023. The hearing was held in open court with the primary suspect Kathirvelpillai Satkunam physically present in the dock.

The B Report submitted by the CID states that according to the statement recorded from K. Satkunam the land owned by Access Direct Colombo Limited was sold to DR Industries (Private) Limited, and Milroy Perera was the broker. The suspect stated that after the land sale, Rupees 131,718,000/- was allocated to Milroy Perera as broker fees and only a part of it was paid. The remaining money was deposited in the Nationwide Bank account in England believed to be K. Satkunam’s.

The B Report further states that on 17 August 2023, the suspect K. Satkunam came to the Criminal Investigation Department with Mr Gayan Kalatuawa, Attorney-at-Law and Mr. Buddhika Karunananda, Attorney-at-Law and gave a voluntary statement, in addition to the statements recorded earlier.

In that latest statement following facts were revealed: the land at No. 586, Galle Road was sold for 3.6 million rupees a perch and it has been stated that an amount of Rupees 595,507,571/- was transferred to Access Direct UK Limited.

The 17 May 2023 hearing Court papers revealed that the CID had recorded a statement from another fellow shareholder of Access Direct UK Ltd, Mr Shanmugasunderam Surendran known as Shawn Surendran. At present he works for Riverstone Corporation Ltd, SPC House, Restmor way, Wallington, Surrey, United Kingdom. His statement was recorded at Bogala Court, Colombo 5. He invested hundred thousand pounds initially at Access Direct UK Ltd and then a further thirty seven thousand pounds. He reported on February 23, 2011 to the rest of shareholders on behalf of the primary suspect Mr. K. Satkunam that the land was disinvested for Rs 658m. He told the CID that he got the figure from Mr Ron Smith of Wilkins Kennedy a firm of accountants in the UK. He also told the CID that he wasn’t aware that the land was actually sold for Rs 790m.

The Magistrate granted permission to the CID to continue with the investigation. Travel ban on Mr K Satkunam was lifted temporarily, until the next court appearance on December 13, 2023 on condition that two sureties of Rs 10m and property bail worth Rs 10m to be placed in addition to the existing two sureties, each value of Rs 5m, in total of Rs 30m.

The CID’s Commercial Crime Investigation Division has been investigating the complaint about purchasing 219.5 perches of land on Galle Road, Kollupitiya, in 2004. Ten shareholders of a UK-based company, Access Direct UK Ltd, had invested 1.3 million sterling pounds in purchasing the land through a wholly-owned registered subsidiary company in Sri Lanka, Access Direct Colombo Ltd. This land had then been sold in July 2010.

The CID’s investigation uncovered that the land was sold for Rs 790 million. It has been established that only Rs 595,507,721 of the money received from the sale of the land was sent to Access Direct UK Ltd. It is alleged that the remaining Rs 194,800,279 had been obtained fraudulently, and the amount had been misused in a criminal breach of trust.



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Ambassador of the UAE to Sri Lanka meets with the Prime Minister

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Prime Minister Dr. Harini Amarasuriya met with the Ambassador of the United Arab Emirates to Sri Lanka, Khaled Nasser Al Ameri, on 01 October at Temple Trees.
At the outset, the Prime Minister welcomed the Ambassador and expressed her appreciation for the support extended by the Government of the United Arab Emirates to Sri Lanka following Cyclone Ditwah.
During the meeting, the Ambassador conveyed an invitation from the Government of the United Arab Emirates to Prime Minister Dr. Harini Amarasuriya to participate in the UN Water Conference scheduled to be held in the UAE in December. Both sides discussed challenges related to water management and water security, emphasising the importance of developing sustainable and long-term solutions to address water-related issues. Attention was also drawn to the importance of skilled labour migration, with a focus on strengthening opportunities for Sri Lankan skilled workers in international employment markets. The UAE expressed its interest in supporting Sri Lanka’s vocational and technical education sector, while also exploring opportunities for cooperation in agricultural technology and related fields. The Ambassador further highlighted the interest of UAE investors in Sri Lanka’s port and aviation sectors. He noted the potential for Sri Lanka to develop into a regional aviation maintenance hub, creating new opportunities for investment and skills development. The discussions also focused on further strengthening and expanding bilateral relations and cooperation between Sri Lanka and the United Arab Emirates.
The meeting was attended by Pradeep Saputhanthri, Secretary to the Prime Minister; Ms. Sagarika Bogahawatta, Additional Secretary to the Prime Minister; and officials from the Ministries of Foreign Affairs, Foreign Employment and Tourism. Prime Minister’s Media Division

[Prime Minister’s Media Division]

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Prime Minister joins Gandhi Jayanti Commemoration

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Prime Minister Dr. Harini Amarasuriya attended the Gandhi Jayanti commemoration held at Temple Trees on October 2nd to mark the 157th birth anniversary of Mahatma Gandhi, the pioneer of non-violence.
The commemoration was held under the patronage of the Prime Minister and the High Commissioner of India to Sri Lanka,  Santosh Jha. During the event, the Prime Minister and the Indian High Commissioner paid floral tributes to the statue of Mahatma Gandhi. The ceremony was organized to recall the message of peace, non-violence, and harmony that Mahatma Gandhi bestowed upon the world through his life and philosophy.
The High Commissioner of India to Sri Lanka,  Santosh Jha, Secretary to the Prime Minister, Pradeep Saputhanthri, along with state officials and officers from the Indian High Commission, were present at the occasion. Prime Minister’s Media Division

[Prime Minister’s Media Division]

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Unions resist tripartite EPF management plan

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… 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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