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COPE: Sathosa has lost Rs 15.1 bn due to irregular rice imports

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The Committee on Public Enterprises (COPE) has revealed that Lanka Sathosa incurred a loss of Rs. 15,157,031,018 due to irregular rice imports in 2014 and 2015, carried out in violation of established procurement procedures.

The disclosure came during a COPE session chaired by Dr. Nishantha Samaraweera, held on October 10 to review the Auditor General’s reports for 2021 and 2022 and the corporation’s current performance.

The committee noted that although the cost of the imported rice amounted to Rs. 27,011,980,142, revenue from its sale totalled only Rs. 11,854,949,124. The investigation found that insufficient study of domestic rice market conditions, paddy harvests, and storage facilities contributed to the financial loss.

The COPE also inquired whether a formal investigation had been conducted; officials confirmed that the Bribery Investigation Division had referred the matter to the Attorney General’s Department for filing charges.

In addition, the COPE highlighted that 18 building owners who failed to complete construction properly had yet to settle dues owed to the corporation.

While guidelines allow advances to be withheld for unconstructed land, as of December 31, 2020, Rs. 34,234,996 was paid without proper estimates under 29 agreements. Sathosa has filed legal action to recover Rs. 27,435,000.

The COPE also pointed out potential institutional accountability issues arising from frequent staff changes due to contract-based appointments. Officials said measures had been adopted to extend such appointments up to five years to ensure continuity.

The COPE has flagged payments made without Treasury approval for several appointments, underlining the need for proper formalisation of such practices. Attention was also drawn to problems with the company’s Enterprise Resource Planning (ERP) system, which, despite substantial investment and expansion, failed to meet all operational needs.

Following discussions, the COPE chairman emphasized that Sathosa must be turned into a fully accountable institution.

The COPE session was attended by MPs including retired Lieutenant Commander Prageeth Madhuranga, Sudath Balagalla, Chandima Hettiarachchi, Dr. S. Sri Bawanandaraja, Thilina Samarakoon, M.K.M. Aslam, and Nilanti Kottahachchi.



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Govt. extends ban on LTTE

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The NPP government has issued a new extraordinary gazette renewing and extending Sri Lanka’s long-standing ban on the LTTE and several Tamil diaspora organisations and individuals, continuing to designate them as “terrorists”.

The gazette, published recently, replaces a previous gazette issued in May 2025 and reaffirmed the proscription of a wide range of Tamil political and advocacy bodies operating around the world, alongside dozens of named individuals. The government alleged both the organisations and individuals listed are involved in “terrorism-related activities”.

The organisations blacklisted by the Sri Lankan government include:

• Liberation Tigers of Tamil Eelam (LTTE)

• Tamil Rehabilitation Organisation (TRO)

• Tamil Coordinating Committee (TCC)

• World Tamil Movement (WTM)

• Transnational Government of Tamil Eelam (TGTE)

• World Tamil Relief Fund (WTRF)

• National Council of Canadian Tamils (NCCT)

• Tamil Youth Organisation (TYO)

While the majority of the designations mirror those contained in the May 2025 gazette, the latest document updates identification details and addresses for a number of individuals and introduces at least one additional organisation to the list. All entries have been reissued under new reference numbers for 2026, though the underlying allegations and framing remain unchanged.

Successive governemnts have maintained a sweeping proscription regime against Tamil diaspora groups and individuals. A ban can make it a criminal offence for Sri Lankan citizens to maintain contact with these organisations or their members, severely restricting political engagement and stifling links between the diaspora and the Tamil homeland.

The original mass listings were introduced in 2014 under the administration of Mahinda Rajapaksa. Despite repeated outcry, subsequent governments have continued to uphold and renew the proscription regime, even after the Rajapaksas were voted out of power.

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Police obtain court order banning Wimal’s protest

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National Freedom Front (NFF) leader Wimal Weerawansa addresses a gathering outside the Education Ministry on Monday before launching a protest demanding the immediate resignation of Prime Minister Dr. Harini Amarasuriya as Education Minister over the inclusion of a link to an adult content website in the Grade 06 English module. (Pic by Thushara Atapattu)

Police yesterday (12) obtained an injunction order from the Kaduwela Magistrate’s court against the protest launched by National Freedom Front (NFF) leader and former Minister Wimal Weerawansa opposite the Education Ministry, Isurupaya, at Battaramulla.

Police informed Weerawansa of the court order. In line with the court order, the police informed Weerawansa that the road near the Ministry should not be obstructed and that no sound amplification equipment be used while the GCE Advanced Level (A/L) examination is in progress. The examination, put off due to Cyclone Ditwah, recommenced yesterday.

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Chinese Foreign Minister Wang Yi expresses optimism that Sri Lanka is on the right path to progres

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FM Herath with his Chinese counterpart Wang Yi

Minister of Foreign Affairs, Foreign Employment and Tourism Vijitha Herath held productive discussions with his Chinese counterpart Wang Yi today (12/01), during the latter’s brief visit to Sri Lanka.

The meeting aimed at further strengthening bilateral engagement and advancing the Strategic Cooperative Partnership between the two countries. Both Ministers reaffirmed the longstanding friendship and time-tested cooperation between Sri Lanka and China rooted in centuries of exchanges and consolidated since the establishment of diplomatic relations seven decades ago. The discussion also focused on enhancing partnership in the areas of trade, investment, development cooperation and tourism.

Minister Herath extended deep appreciation to the Government and the people of China for the steadfast support extended to Sri Lanka following cyclone Ditwah and requested further support for the second phase of resettlement, relocation and rebuilding, particularly for the restoration of affected infrastructure including identified roads, railways and bridges that are vital to connectivity, economic recovery and daily lives of people. Minister Wang assured China’s fullest support for this initiative and expressed confidence that Sri Lanka will continue its rapid recovery under the leadership of President Anura Kumara Disanayaka. He also welcomed the people-centric policies of the Government and expressed optimism that Sri Lanka is on the right path toward fulfilling aspirations of its people.

Minister Herath expressed appreciation for China’s constructive role in international fora and reiterated Sri Lanka’s firm commitment to the One China Policy and China’s sovereignty and territorial integrity.

Both Ministers also recalled the successful high level exchanges in the recent past, including visits of the President and the Prime Minister of Sri Lanka to China in 2025.

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