Midweek Review
Corruption saga continues
By Shamindra Ferdinando
The Sri Lanka Institute of Directors (SLID) and Transparency International Sri Lanka (TISL) recently declared corruption as the root cause of Sri Lanka’s current political and economic crisis. The declaration was made in a statement titled, “SLID and TISL launch ‘Business Against Corruption’ Initiative” issued to the media after the two organisations finalised an agreement on a three-year plan to address the issues at hand.
The statement described the contract as strategic collaboration between the two NGOs. Veteran banker Faizal Salieh and Attorney-at-Law Nadishani Perera signed the agreement for SLID and TISL, respectively.
TISL was launched in late 2002 whereas SLID came into being in April 2000. The assertion that corruption bankrupted the country underscored the failure on the part of successive governments (parliaments), the Finance Ministry, Monetary Board, CIABOC, Attorney General’s Department and the Auditor General’s Department, as well as apparent well-meaning bodies, like SLID and TISL. The way the political party system hindered and diluted the National Audit Bill and the Parliament moved court against the releasing of MPs’ asset declarations indicate the challenges faced in reforming the system.
No less a person than the Governor of the Central Bank Dr. Nandalal Weerasinghe, in May this year, acknowledged Sri Lanka’s shameful status. Dr. Weerasinghe, who retired as Senior Deputy Governor, CBSL in January 2021, was requested to take over the CBSL in April this year in the wake of Ajith Nivard Cabraal’s resignation amidst an unprecedented deterioration of the country’s financial situation.
Nadishani Perera succeeded as TISL’s Executive Director from Asoka Obeysekera in January 2021. Salieh was unanimously elected as the Chairman, SLID for the year 2021/22 at a virtual AGM held on Aug. 11, 2021. It would be pertinent to mention that the then State Minister of Finance, Capital Markets and State Enterprise Reforms Cabraal was the Chief Guest at this meet held a month before Central Bank Governor Prof. W.D. Lakshman was unceremoniously asked to step down to pave the way for the State Minister to return to the Governor’s Office.
Cabraal previously served as the 12th Governor of CBSL from July 2006 to January 2015 and returned. His second stint as the 16th Governor, CBSL lasted just eight months. As the 16h Governor he was elevated to the Cabinet rank. As a result, the Governor’s rank in the Table of Precedence has gone up from 20th to fifth place. The Governor is now ranked below the President, Prime Minister, Speaker and the Chief Justice.
In joint fifth place, the Table of Precedence comprises the Leader of the Opposition, Cabinet of Ministers and the Field Marshal.
When Cabraal succeeded Prof. Lakshman the government was in serious difficulty. Having ignored the IMF’s advice in early 2020 to restructure the debt and drop plans to do away with a range of taxes, the then President Gotabaya Rajapaksa’s government caused immense damage to the national economy. But the economic fallout cannot be entirely blamed on corruption since the country had to fend off the worldwide pandemic and the 2019 Easter Sunday terror attacks by Islamic extremists, both of which crippled the country’s vibrant and vital tourism industry and worker remittances, coupled with the fallout from the war in Ukraine.
Nadishani Perera declared their primary objective was to eradicate corruption supported by the private sector. She said so in response to a query from us. They’ll be seeking required funding from the ADB, World Bank and other institutions such as the Centre for International Private Enterprise (CIPE).
A toxic combination of waste, corruption, irregularities, mismanagement and ill-advised decisions contributed to the worst-ever crisis post-independence Sri Lanka experienced. Both public and private sectors should accept responsibility for the crisis. Shocking disclosures made by the Auditor General and at proceedings of the Committee of Public Enterprises (COPE), Committee of Public Accounts (COPA) and Committee of Public Finance (COPF) over the years repeatedly proved culpability of Parliament for the financial crisis.
The SLID-TISL project is meant to enhance transparency, accountability and integrity by encouraging ethical business practices, fair market competition, fair pricing and credible leadership.
The joint statement quoted Salieh as having said: “We are mindful of the current state of affairs, the ground realities, and the challenges faced by companies in doing business. Therefore, our approach on this journey is pragmatic and practical and will enable businesses to proactively and progressively mitigate the corruption risk using preventive measures, checks and balances on a voluntary, ‘best efforts’ basis.”
Nadishani Perera was quoted as having said: “Businesses play a critical role in any nation’s efforts against corruption. At this unique and transformative moment in Sri Lanka’s history, as the citizens have risen against corruption, it is of utmost importance that the business community also commits to do its part towards this mission.”
Bond scams
In spite of high-profile projects reportedly meant to restore public confidence in public and private sectors, the situation continues to deteriorate. That is the undeniable truth. In late Nov 2016, the USAID in partnership with Sri Lanka Parliament launched USD 13 mn (Rs 1.92 bn) project to strengthen accountability, transparency and good governance.
Parliament owed the public an explanation as regards the success or utter failure of the three-year project. Did it achieve its objectives? Perhaps, the then Speaker Karu Jayasuriya, in his new capacity as the Chairman of the National Movement for Social Justice (NMSJ) will care to explain the outcome of the USAID project. The USD 13 mn project should be examined against the backdrop of the Treasury bond scams perpetrated in Feb 2015 and March 2016 under then yahapalana (good governance) rule. Then Speaker Jayasuriya and the US obviously didn’t care that the yahapalana government delayed investigations into the Treasury bond scams and actually nothing really was done about it until then President Maithripala Sirisena appointed a presidential Commission of Inquiry (CoI) that included two sitting Supreme Court judges in late January 2017 to carry out a public probe.
Probably, Sirisena, now an SLPP MP (Polonnaruwa district) must have quite conveniently forgotten how he dissolved Parliament at midnight on June 26, 2015 to prevent the then COPE Chairman D.E.W. Gunasekera from tabling in Parliament his report on the first Treasury bond scam. At the behest of the UNP leadership, the then lawmaker Attorney-at-Law Sujeewa Senasinghe moved court to thwart the releasing of the COPE report. Senasinghe, an Attorney-at-Law even had the audacity to write a book denying the scam.
Regardless of Perpetual Treasuries Limited (PTL) being under the spotlight over the Treasury Bond scams, the Bar Association of Sri Lanka (BASL) had no qualms in receiving sponsorship amounting to Rs 2.5 mn in support from the tainted firm for its project, Law Asia 2016. The Colombo Port City and the USAID had been among the BASL’s sponsors for its other events.
Eight years after the first Treasury Bond scam, what is the current status of the investigations and Sri Lanka’s efforts to convince Singapore to extradite Arjuna Mahendran, under whose watchful eyes as the Governor, CBSL the Treasury Bond scams took place? Can the Attorney General and the Justice Ministry explain measures taken by them since the change of government in July to have Mahendran extradited? Against the backdrop of assurances given by the Justice Minister Dr. Wijeyadasa Rajapakse, PC, that a Bill to combat fraud and corruption would be enacted soon, the public have a right to know how the new government intended to handle Treasury Bonds scams probe/prosecutions.
Singapore-based Mahendran challenged The Island editorial (‘Cops and Robbers’) of Friday August 19, 2022. Denying he fled the country, the Singaporean revealed that his Counsel Romesh de Silva, PC secured the permission of Supreme Court justice K.T. Chitrasiri for him to leave the country. Justice Chitrasiri headed the CoI. The issue at hand is whether Mahendran through his learned Counsel gave an assurance to Justice Chitrasiri that he would return to the country in case the Attorney General initiated legal action over the Treasury Bond scams. Perhaps, Mahendran’s Counsel should set the record straight.
The question is when President’s Counsel Romesh de Silva made the request on behalf of Mahendran and secured approval as the former CBSL Governor claimed, did he give an assurance to the CoI that he would return within a specific period or did the CoI sought such a pledge from him.
Vidanapathirana Associates, on behalf of Ranil Wickremesinghe, several weeks after the last presidential election in Nov 2019, responded to a spate of allegations pertaining to Treasury Bond scams et al directed at the former Premier by yahapalana regime President Maithripala Sirisena. Responding to specific allegation that Wickremesinghe helped Mahendran to escape Sri Lankan justice, Vidanapathirana Associates stated (verbatim): “Mr. Arjuna Mahendran gave evidence before the Presidential Commission and therefore obtained its permission to leave Sri Lanka. He has not returned since then.”
The Attorney General’s Department should inquire into the circumstances under which Mahendran left the country.
Controversy over privatization
Restructuring/privatization of loss-making state enterprises has received attention as part of the overall economic recovery efforts. However, rebel SLPP lawmaker Dr. Nalaka Godahewa recently raised the possibility of the new government exploiting the current economic crisis to privatize profit-making ventures, such as Sri Lanka Insurance Corporation (SLIC) and Sri Lanka Telecom. The former Viyathmaga activist was responding to President Ranil Wickremesinghe’s recent declaration as regards privatization.
Declaring his whole hearted support for the proposed restructuring of loss-making enterprises, Dr. Godahewa however questioned the move to privatize the profitable ventures. Such privatizations will further weaken the public sector due to the Treasury being deprived of much needed cash. Dr. Godahewa assertion that the vast majority of 94 state enterprises privatized between 1990-2003 during the tenure of late President Ranasinghe Premadasa and ex-President Chandrika Bandaranaike Kumaratunga were profitable ventures reveals how the powers that be gradually deprived the Treasury of wherewithal.
The lawmaker while making reference to the controversial circumstances China secured the Hambantota port on a 99-year-lease for USD 1.2 bn in 2017, questioned the move to privatize SLIC and SLT.
Commenting on what he called Sri Lanka’s infamous privatization policy, Dr. Godahewa mentioned a few interesting facts regarding the privatized enterprises though he refrained from naming them. (1) The Supreme Court in 2009 reversed the sale of SLIC for Rs 6 bn during the tenure of Kumaratunga’s regime. At the time of the transaction, the SLIC had assets estimated to be worth over Rs 30 bn (2) The Supreme Court also in the same year reversed two more corrupt transactions, namely Waters Edge and Lanka Marine Services (3) A person who bought a plantation company earned a 100 percent profit within 24 hours after he sold the same property for double the amount he paid for (4) Those who acquired a company that dealt with food much more cash they paid for that particular state enterprise. That enterprise had more money in its bank accounts and the safes than what was received by the government from the buyer and (5) Some of those buyers earned massive profits by selling machinery and equipment.
So, no wonder she was dubbed Chaura Regina (bandit queen) by her one-time political soulmate Victor Ivan in a book he published and to this date ex-President Kumaratunga has not dared to challenge the accusations either in a court of law or by word.
The whole privatisation/restructuring programme appeared to have been carried out at the expense of the national economy while successive governments packed the public enterprises with their supporters. But the massive expansion of the public sector took place at the behest of Mahinda Rajapaksa, who served as the President from Nov 2005 to January 2015.
Public Administration Secretary Priyantha Mayadunne didn’t mince his words a few months ago when he declared how the public service had become an unbearable burden to the taxpayer. But why didn’t he speak up earlier? Mayadunne explained how the public service had been recklessly expanded to nearly 1.5 mn whereas the requirement was 500,000. One-time Justice Ministry Secretary Mayadunne emphasized the need to restructure the public service. Mayadunne’s warning to political parties represented in Parliament, state and private sector trade unions and the civil society that they will soon be categorized as traitors unless they agreed to far reaching economic reforms appeared to have fallen on deaf ears.
Regardless of consequences, the government and the Opposition seemed still struggling to score petty political points than reaching a consensus on workable solutions to address grave political, economic and social issues. Their failure to agree on urgently needed reforms agenda is evidence that the public cannot depend on political parties represented in parliament. Instead of addressing issues at hand, particularly the internationally supervised debt restructuring plan, those who are responsible for the economic fallout seemed determined to consolidate their positions while pursuing the same old strategies.
The government owed an explanation as regards accusations pertaining to the planned privatization of the SLIC and SLT.
TISL’s corruption index
According to TISL’s most recent Corruption Perception Index (2021) Sri Lanka is ranked 102nd out of 180 countries and territories by their perceived levels of public sector corruption. This assessment is certainly questionable. If corruption allegations directed at decision-makers, both in and outside Parliament, are properly examined taking into consideration the responsibilities of the executive, members of the legislature as well as the judiciary, Sri Lanka must be among the worst lot. The proceedings of the parliamentary watchdog committees, periodic reports released by them as well as the Auditor General’s reports paint a bleak picture. The SLID and TISL should inquire into public enterprises as the former represents nearly 1,000 personnel at top management level at state and private sectors. Instead of taking tangible measures to tackle waste, corruption, irregularities and mismanagement, the anti-corruption project could become yet another lucrative trade.
Former Samagi Jana Balavegaya lawmaker Ranjan Ramanayake declared as he left Welikada prison last Friday (26) that Justice Minister Dr. Wijeyadasa Rajapakse, PC, asked for a guarantee from him that he would continue his anti-corruption campaign. The declaration was made after Ramanayake serving a four-year term of RI for contempt of judiciary received a presidential pardon after he publicly acknowledged there was no basis for accusations, he directed at the judiciary on Aug 21, 2017 outside Temple Trees. The former MP apologized to the judiciary while promising not to say anything inimical to the judiciary ever again. Obviously, those who had gathered outside Welikada prison to welcome Ramanayake didn’t really comprehend the implications of the politician going back on his much-publicized declarations. During his tenure as a UNP MP, Ramanayake twice lashed out at the judiciary. In respect of the second case the Supreme Court sentenced him to two years RI suspended for five years.
There had never been a proper inquiry into Ramanayake’s audio tapes though they captured the attention of the public. The releasing of audio tapes of conversations among SSP Shani Abeysekara (he hadn’t been appointed Director CID then), the then Deputy Minister of Social Empowerment Ranjan Ramanayake, the then High Court judge Mrs. Padmini Ranawaka and President Maithripala Sirisena, in the wake of the 2019 Presidential Election, sent shock waves through political parties, the judiciary, the police and the civil society.
Controversy still surrounds the circumstances under which the police received the recordings, secretly made by Ramanayake. Selected tapes were released to both the print and electronic media. Attempts to hush up the shocking revelations, pertaining to the Himbutana killings (Bharatha Premachandra killing), and the subsequent judgment failed.
Those in authority conveniently refrained from conducting a proper investigation into the scandalous interventions made by Ramanayake, as well as the conduct of HC judge Mrs. Ranawaka, and Abeysekara, though the police recorded some statements, including that of Mrs. Ranawaka.
Parliament suppressed the matter. The then Speaker Karu Jayasuriya should explain what really happened. Jayasuriya was among those who called for presidential pardon for Ramanayake. The failure to examine Parliament’s pathetic response to the disturbing revelations and the suppression of CDs is a matter for concern.
Did Ramanayake speak to High Court Judge Mrs. Ranawaka to influence the murder conviction against Duminda Silva, sans permission from the party leadership? Did the then top UNP leadership tell him to approach judges in respect of various cases?
Ramanayake is also on record phoning High Court judge Gihan Pilapitiya and Magistrate Dhammika Hemapala. Following the disclosure of a fraction of the tapes, the police recorded statements from Mrs. Ranawaka (retired), Pilapitiya and Hemapala.
Let me focus on the conversations involving Mrs. Ranawaka, Ramanayake, Abeysekara and President Sirisena (now SLPP Polonnaruwa district MP. Sirisena also remains the SLFP leader).
Mrs. Ranawaka had no qualms in declaring that she had no confidence in President Sirisena though she subsequently directly pleaded with him to promote her to the Court of Appeal. Mrs. Ranawaka expressed doubts about President Sirisena when Ramanayake phoned her on July 14, 2016, in the wake of Abeysekara expressing serious concerns over the way the Duminda Silva matter, and related issues, were proceeding to their dislike. Nearly two dozen conversations, involving Ramanayake and Abeysekara, should have been examined without taking them in isolation. According to conversations now in public domain, Mrs. Ranawaka asked Ramanayake to intervene on her behalf when the latter pressed her on the pending judgment on the Himbutana killings. The judge also made reference to the then lawmaker and Attorney-at-Law Ajith P. Perera during her conversation, initiated by Ramanayake. The way the conversation continued, clearly indicated that the call taken by Ramanayake, on July 14, 2016, couldn’t have been the first and they knew each other very well. Mrs. Ranawaka, obviously exploited Ramanayake’s intervention to explore the possibility of moving up the ladder with unbridled political patronage.
Let there be a thorough inquiry into matters of concern. A genuine effort is needed.
Midweek Review
How massive Akuregoda defence complex was built with proceeds from sale of Galle Face land to Shangri-La
The Navy ceremonially occupied its new Headquarters (Block No. 3) at the Defence Headquarters Complex (DHQC) at Akuregoda, Battaramulla, on 09 December, 2025. On the invitation of the Commander of the Navy, Vice Admiral Kanchana Banagoda, the Deputy Minister of Defence, Major General Aruna Jayasekara (Retd) attended the event as the Chief Guest.
Among those present were Admiral of the Fleet Wasantha Karannagoda, the Defence Secretary, Air Vice Marshal Sampath Thuyacontha (Retd), Commander of the Army, Lieutenant General Lasantha Rodrigo, Commander of the Air Force, Air Marshal Bandu Edirisinghe, Inspector General of Police, Attorney-at-Law Priyantha Weerasooriya and former Navy Commanders.
With the relocation of the Navy at DHQC, the much-valued project to shift the Ministry of Defence (MoD) and Headquarters of the war-winning armed forces has been brought to a successful conclusion. The Army was the first to move in (November 2019), the MoD (May 2021), the Air Force (January 2024) and finally the Navy (in December 2025).
It would be pertinent to mention that the shifting of MoD to DHQC coincided with the 12th anniversary of bringing back the entire Northern and Eastern Provinces under the government, on 18 May, 2009. LTTE leader Velupillai Prabhakaran was killed on the following day.
The project that was launched in March 2011, two years after the eradication of the Liberation Tigers of Tamil Eelam (LTTE), suffered a severe setback, following the change of government in 2015. The utterly irresponsible and treacherous Yahapalana government halted the project. That administration transferred funds, allocated for it, to the Treasury, in the wake of massive Treasury bond scams perpetrated in February and March 2015, within weeks after the presidential election.
Maithripala Sirisena, in his capacity as the President, as well as the Minister of Defence, declared open the new Army Headquarters, at DHQC, a week before the 2019 presidential election. Built at a cost of Rs 53.3 bn, DHQC is widely believed to be the largest single construction project in the country. At the time of the relocation of the Army, the then Lt. Gen. Shavendra Silva, the former Commanding Officer of the celebrated Task Force I/58 Division, served as the Commander.
Who made the DHQC a reality? Although most government departments, ministries and armed forces headquarters, were located in Colombo, under the Colombo Master Plan of 1979, all were required to be moved to Sri Jayewardenepura, Kotte. However successive administrations couldn’t go ahead with the massive task primarily due to the conflict. DHQC would never have been a reality if not for wartime Defence Secretary Gotabaya Rajapaksa who determinedly pursued the high-profile project.
The absence of any reference to the origins of the project, as well as the significant role played by Gotabaya Rajapaksa at the just relocated Navy headquarters, prompted the writer to examine the developments related to the DHQC. The shifting of MoD, along with the Armed Forces Headquarters, was a monumental decision taken by Mahinda Rajapaksas’s government. But, all along it had been Gotabaya Rajapaksa’s determination to achieve that monumental task that displeased some within the administration, but the then Defence Secretary, a former frontline combat officer of the battle proved Gajaba Regiment, was not the type to back down or alter his strategy.
GR’s maiden official visit to DHQC
Gotabaya Rajapaksa, who made DHQC a reality, visited the sprawling building in his capacity as the President, Defence Minister and the Commander-in-Chief of the Armed Forces on the morning of 03 August, 2021. It was Gotabaya Rajapaksa’s maiden official visit to the Army Headquarters, located within the then partially completed DHQC, eight months before the eruption of the externally backed ‘Aragalaya.’ The US-Indian joint project has been exposed and post-Aragalaya developments cannot be examined without taking into consideration the role played by political parties, the Bar Association of Sri Lanka, media, as well as the weak response of the political leadership and the armed forces. Let me stress that a comprehensive probe should cover the period beginning with the Swiss project to humiliate President Gotabaya Rajapaka in November, 2019, by staging a fake abduction, and the storming of the President’s House in July 2022. How could Sri Lanka forget the despicable Swiss allegation of sexual harassment of a female local employee by government personnel, a claim proved to be a blatant lie meant to cause embarrassment to the newly elected administration..
Let me get back to the DHQC project. The war-winning Mahinda Rajapaksa government laid the foundation for the building project on 11 May, 2011, two years after Sri Lanka’s triumph over the separatist Tamil terrorist movement. The high-profile project, on a 77-acre land, at Akuregoda, Pelawatta, was meant to bring the Army, Navy, and the Air Force headquarters, and the Defence Ministry, to one location.
President Gotabaya Rajapaksa’s visit to Akuregoda would have definitely taken place much earlier, under a very different environment, if not for the eruption of the Covid-19 pandemic, just a few months after his victory at the November 2019 election. The worst post-World War II crisis that had caused devastating losses to national economies, the world over, and delivered a staggering blow to Sri Lanka, heavily dependent on tourism, garment exports and remittances by its expatriate workers.
On his arrival at the new Army headquarters, President Gotabaya Rajapaksa was welcomed by General Shavendra Silva, who also served as the Chief of Defence Staff. Thanks to the President’s predecessor, Maithripala Sirisena, the then Maj. Gen Shavendra Silva was promoted to the rank of Lt. Gen and appointed the Commander of the Army on 18 August, 2019, just three months before the presidential poll. The appointment was made in spite of strong opposition from the UNP leadership and US criticism.
President Gotabaya Rajapaksa hadn’t minced his words when he publicly acknowledged the catastrophe caused by the plunging of the national income and the daunting challenge in debt repayment, amounting to as much as USD 4 bn annually.
The decision to shift the tri-forces headquarters and the Defence Ministry (The Defence Ministry situated within the Army Headquarters premises) caused a media furor with the then Opposition UNP alleging a massive rip-off. Defence Secretary Gotabaya Rajapaksa reiterated his commitment to the project. If not for the change of government in 2015, the DHQC would have been completed during Mahinda Rajapaksa’s third term if he was allowed to contest for a third term successfully. Had that happened, Gotabaya Rajapaksa wouldn’t have emerged as the then Opposition presidential candidate at the 2019 poll. The disastrous Yahapalana administration and the overall deterioration of all political parties, represented in Parliament, and the 19th A that barred Mahinda Rajapaksa from contesting the presidential election, beyond his two terms, created an environment conducive for Gotabaya Rajapaksa’s emergence as the newly registered SLPP’s candidate.
Shangri-La move
During the 2019 presidential election campaign, SLPP candidate Gotabaya Rajapaksa strongly defended his decision to vacate the Army Headquarters, during Mahinda Rajapaksa presidency, to pave the way for the Shangri-La Hotel in Colombo. Shangri-La was among the hotels targeted by the Easter Sunday bombers – the only location targeted by two of them, including mastermind Zahran Hashim.
President Gotabaya Rajapaksa is on record as having said that vacation of the site had been in accordance with first executive President J.R. Jayewardene’s decision to move key government buildings away from Colombo to the new Capital of the country at Sri Jaywardenepura. Gotabaya Rajapaksa said so in response to the writer’s queries years ago.
Gotabaya Rajapaksa said that a despicable attempt was being made to blame him for the Army Headquarters land transaction. “I have been accused of selling the Army Headquarters land to the Chinese.”
Rajapaksa explained that Taj Samudra, too, had been built on a section of the former Army Headquarters land, previously used to accommodate officers’ quarters and the Army rugger grounds. Although President Jayewardene had wanted the Army Headquarters shifted, successive governments couldn’t do that due to the war and lack of funds, he said.
President Maithripala Sirisena and Prime Minister Ranil Wickremesinghe declared open Shangri-La Colombo on 16 November, 2017. The Hong Kong-based Shangri-La Asia invited Gotabaya Rajapaksa for dinner, the following day, after the opening of its Colombo hotel. Shangri-La Chairperson, Kuok Hui Kwong, the daughter of Robert Kuok Khoon Ean, was there to welcome Gotabaya Rajapaksa, who had cleared the way for the post-war mega tourism investment project. Among those who had been invited were former President Mahinda Rajapaksa, former External Affairs Minister Prof. G.L. Peiris, former Presidential Secretary Lalith Weeratunga, and President’s Counsel Gamini Marapana, PC.
The Cabinet granted approval for the high-profile Shangri-La project in October 2010 and the ground-breaking ceremony was held in late February 2012.
Rajapaksa said that the Shangri-La proprietor, a Chinese, ran a big operation, based in Hong Kong, Malaysia and Singapore. Another parcel of land was given to the mega ITC hotel project, also during the previous Rajapaksa administration. ITC Ratnadipa, a super-luxury hotel by India’s ITC Hotels, officially opened in Colombo on April 25, 2024
Following the change of government in January 2015, the remaining section of the Army headquarters land, too, was handed over to Shangri-La.
Gotabaya Rajapaksa emphasised that the relocation of the headquarters of the Army, Navy, and Air Force, as well as the Defence Ministry, had been part of JRJ’s overall plan. The change of government, in January 2015, had caused a serious delay in completing the project and it was proceeding at a snail’s pace, Rajapaksa said. Even Parliament was shifted to Kotte in accordance with JRJ’s overall plan, Gotabaya Rajapaksa said, explaining his move to relocate all security forces’ headquarters and Defence Ministry into one complex at Akuregoda.
Acknowledging that the Army Headquarters had been there at Galle Face for six decades, Rajapaksa asserted that the Colombo headquarters wasn’t tactically positioned.
Rajapaksa blamed the inordinate delay in the completion of the Akuregoda complex on the Treasury taking hold of specific funds allocated for the project.
Over 5,000 military workforce

Gotabaya Rajapaksa’s maiden visit to DHQC on 3 August, 2021. General
Shavendra Silva is beside him
Major General Udaya Nanayakkara had been the first Director, Project Management Unit, with overall command of approximately 5,000 tri-forces personnel assigned to carry it out. The Shangri-La transaction provided the wherewithal to implement the DHQC project though the change of government caused a major setback. Nanayakkara, who had served as the Military Spokesman, during Eelam War IV, oversaw the military deployment, whereas private contractors handled specialised work such as piling, AC, fire protection and fire detection et al. The then MLO (Military Liaison Officer) at the Defence Ministry, Maj. Gen Palitha Fernando, had laid the foundation for the project and the work was going on smoothly when the Yahapalana administration withheld funds. Political intervention delayed the project and by September 2015, Nanayakkara was replaced by Maj Gen Mahinda Ambanpola, of the Engineer Service.
In spite of President Sirisena holding the Defence portfolio, he couldn’t prevent the top UNP leadership from interfering in the DHQC project. However, the Shangri-La project had the backing of A.J.M. Muzammil, the then UNP Mayor and one of the close confidants of UNP leader Ranil Wickremesinghe. Muzammil was among those present at the ground breaking ceremony for Shangri-La held on 24th February, 2012 ,with the participation of Minister Basil Rajapaksa.
Having identified the invaluable land, where the Army Headquarters and Defence Ministry were situated, for its project, Shangri-La made its move. Those who had been aware of Shangri-La’s plans were hesitant and certainly not confident of their success. They felt fearful of Defence Secretary Rajapaksa’s reaction.
But, following swift negotiations, they finalised the agreement on 28 December, 2010. Lt. Gen. Jagath Jayasuriya was the then Commander of the Army, with his predecessor General Fonseka in government custody after having been arrested within two weeks after the conclusion of the 2010 26 January Presidential poll.
Addressing the annual Viyathmaga Convention at Golden Rose Hotel, Boralesgamuwa, on 04 March, 2017, Gotabaya Rajapaksa, perhaps for the first time publicly discussed his role in the Shangri-La project. Declaring that Sri Lanka suffered for want of, what he called, a workable formula to achieve post-war development objectives, the war veteran stressed the pivotal importance of swift and bold decision-making.
Gotabaya Rajapaksa explained how the government had acted swiftly, and decisively, to attract foreign investments though some such efforts were not successful. There couldn’t be a better example than the government finalising an agreement with Shangri-La Hotels, he declared.
Declaring that the bureaucratic red tape shouldn’t in any way be allowed to undermine investments, Rajapaksa recalled the Chairman/CEO of Shangri-La Hotels and Resorts, Robert Kuok Khoon Ean, wanting the Army Headquarters land for his Colombo project. In fact, the hotels chain, at the time, had proposed to build hotels in Colombo, Hambantota and Batticaloa, and was one of the key investors wanting to exploit Sri Lanka’s success in defeating terrorism.
“Khoon-Ean’s request for the Army Headquarters land caused a serious problem for me. It was a serious challenge. How could I shift the headquarters of the war-winning Army? The Army had been there for six decades. It had been the nerve centre of the war effort for 30 years,” said Rajapaksa, who once commanded the First Battalion of the Gajaba Regiment (1GR)
Rajapaksa went on to explain how he exploited a decision taken by the first executive president J.R. Jayewardene to shift the Army Headquarters to Battaramulla, many years back. “Within two weeks, in consultation with the Secretary to the Finance Ministry, Dr. P.B. Jayasundera, and the Board of Investment, measures were taken to finalise the transaction. The project was launched to shift the Army, Navy and Air Force headquarters to Akuregoda, Pelawatte, in accordance with JRJ’s plan.”
The Hong Kong-based group announced the purchase of 10 acres of state land, in January 2011. Shangri-La Asia Limited announced plans to invest over USD 400 mn on the 30-storeyed star class hotel with 661 rooms.
The hotel is the second property in Sri Lanka for the leading Asian hospitality group, joining Shangri-La’s Hambantota Resort & Spa, which opened in June 2016.
Rajapaksa said that the top Shangri-La executive had referred to the finalisation of their Colombo agreement to highlight the friendly way the then administration handled the investment. Shangri-La had no qualms about recommending Sri Lanka as a place for investment, Rajapaksa said.
The writer explained the move to shift the Army Headquarters and the Defence Ministry from Colombo in a lead story headlined ‘Shangri-La to push MoD, Army Hq. out of Colombo city: Army Hospital expected to be converted into a museum’ (The Island, 04 January, 2011).
Yahapalana chaos
In the wake of the January 2015 change of government, the new leadership caused chaos with the suspension of the China-funded Port City Project, a little distance away from the Shangri-La venture. Many an eyebrow was raised when the then Finance Minister Ravi Karunanayake declared, in March, 2015, that funds wouldn’t be made available to the DHQC project until the exact cost estimation of the project could be clarified.
Media quoted Karunanayake as having said “Presently, this project seems like a bottomless pit and we need to know the depth of what we are getting into. From the current state of finances, allocated for this project, it seems as if they are building a complex that’s even bigger than the Pentagon!”
The insinuating declaration was made despite them having committed the blatant first Treasury bond scam in February 2015 that shook the Sirisena-Wickremesinghe administration to its core.
In June 2016, Cabinet spokesperson, Dr. Rajitha Senaratne, announced the suspension of the Akuregoda project. Citing financial irregularities and mismanagement of funds, Dr. Senaratne alleged that all Cabinet papers on the project had been prepared according to the whims and fancies of Gotabaya Rajapaksa.
The then Minister Karunanayake spearheaded the campaign against the DHQC project alleging, in the third week of January, 2015, that Rs 13.2 billion, in an account maintained at the Taprobane branch of the Bank of Ceylon had been transferred to the Consolidated Fund of the Treasury. The matter was being investigated as the account belonged to the Ministry of Defence, he added. The Finance Minister stressed that the MoD had no right to maintain such an account in violation of regulations and, therefore, the opening of the account was being investigated. The Minister alleged that several illegal transactions, including one involving Samurdhi, had come to light. He estimated the Samurdhi transaction (now under investigation) at Rs. 4 billion.
Having undermined Shangri-La and the DHQC projects, the UNP facilitated the expansion of the hotel project by releasing additional three and half acres on a 99-year lease. During the Yahapalana administration, Dayasiri Jayasekera disclosed at a post-Cabinet press briefing how the government leased three and a half acres of land at a rate of Rs. 13.1 mn per perch whereas the previous administration agreed to Rs 6.5 mn per perch. According to Jayasekera the previous government had leased 10 acres at a rate of Rs 9.5 mn (with taxes) per perch.
The bottom line is that DHQC was built with Shangri-La funds and the initiative was Gotabaya Rajapaksa’s whose role as rock solid wartime Secretary of Defence to keep security forces supplied with whatever their requirements could never be compared with any other official during the conflict.
By Shamindra Ferdinando
Midweek Review
The Hour of the Invisible
Picking-up the pieces in the bashed Isle,
Is going to take quite a long while,
And all hands need to be united as one,
To give it even a semblance of its former self,
But the more calloused and hardy the hands,
The more suitable are they for the task,
And the hour is upon us you could say,
When those vast legions of invisible folk,
Those wasting away in humble silent toil,
Could stand up and be saluted by all,
As being the most needed persons of the land
By Lynn Ockersz
Features
Handunnetti and Colonial Shackles of English in Sri Lanka
“My tongue in English chains.
I return, after a generation, to you.
I am at the end
of my Dravidic tether
hunger for you unassuaged
I falter, stumble.”
– Indian poet R. Parthasarathy
When Minister Sunil Handunnetti addressed the World Economic Forum’s ‘Is Asia’s Century at Risk?’ discussion as part of the Annual Meeting of the New Champions 2025 in June 2025, I listened carefully both to him and the questions that were posed to him by the moderator. The subsequent trolling and extremely negative reactions to his use of English were so distasteful that I opted not to comment on it at the time. The noise that followed also meant that a meaningful conversation based on that event on the utility of learning a powerful global language and how our politics on the global stage might be carried out more successfully in that language was lost on our people and pundits, barring a few commentaries.
Now Handunnetti has reopened the conversation, this time in Sri Lanka’s parliament in November 2025, on the utility of mastering English particularly for young entrepreneurs. In his intervention, he also makes a plea not to mock his struggle at learning English given that he comes from a background which lacked the privilege to master the language in his youth. His clear intervention makes much sense.
The same ilk that ridiculed him when he spoke at WEF is laughing at him yet again on his pronunciation, incomplete sentences, claiming that he is bringing shame to the country and so on and so forth. As usual, such loud, politically motivated and retrograde critics miss the larger picture. Many of these people are also among those who cannot hold a conversation in any of the globally accepted versions of English. Moreover, their conceit about the so-called ‘correct’ use of English seems to suggest the existence of an ideal English type when it comes to pronunciation and basic articulation. I thought of writing this commentary now in a situation when the minister himself is asking for help ‘in finding a solution’ in his parliamentary speech even though his government is not known to be amenable to critical reflection from anyone who is not a party member.
The remarks at the WEF and in Sri Lanka’s parliament are very different at a fundamental level, although both are worthy of consideration – within the realm of rationality, not in the depths of vulgar emotion and political mudslinging.
The problem with Handunnetti’s remarks at WEF was not his accent or pronunciation. After all, whatever he said could be clearly understood if listened to carefully. In that sense, his use of English fulfilled one of the most fundamental roles of language – that of communication. Its lack of finesse, as a result of the speaker being someone who does not use the language professionally or personally on a regular basis, is only natural and cannot be held against him. This said, there are many issues that his remarks flagged that were mostly drowned out by the noise of his critics.
Given that Handunnetti’s communication was clear, it also showed much that was not meant to be exposed. He simply did not respond to the questions that were posed to him. More bluntly, a Sinhala speaker can describe the intervention as yanne koheda, malle pol , which literally means, when asked ‘Where are you going?’, the answer is ‘There are coconuts in the bag’.
He spoke from a prepared text which his staff must have put together for him. However, it was far off the mark from the questions that were being directly posed to him. The issue here is that his staff appears to have not had any coordination with the forum organisers to ascertain and decide on the nature of questions that would be posed to the Minister for which answers could have been provided based on both global conditions, local situations and government policy. After all, this is a senior minister of an independent country and he has the right to know and control, when possible, what he is dealing with in an international forum.
This manner of working is fairly routine in such international fora. On the one hand, it is extremely unfortunate that his staff did not do the required homework and obviously the minister himself did not follow up, demonstrating negligence, a want for common sense, preparedness and experience among all concerned. On the other hand, the government needs to have a policy on who it sends to such events. For instance, should a minister attend a certain event, or should the government be represented by an official or consultant who can speak not only fluently, but also with authority on the subject matter. That is, such speakers need to be very familiar with the global issues concerned and not mere political rhetoric aimed at local audiences.
Other than Handunnetti, I have seen, heard and also heard of how poorly our politicians, political appointees and even officials perform at international meetings (some of which are closed door) bringing ridicule and disastrous consequences to the country. None of them are, however, held responsible.
Such reflective considerations are simple yet essential and pragmatic policy matters on how the government should work in these conditions. If this had been undertaken, the WEF event might have been better handled with better global press for the government. Nevertheless, this was not only a matter of English. For one thing, Handunnetti and his staff could have requested for the availability of simultaneous translation from Sinhala to English for which pre-knowledge of questions would have been useful. This is all too common too. At the UN General Assembly in September, President Dissanayake spoke in Sinhala and made a decent presentation.
The pertinent question is this; had Handunetti had the option of talking in Sinhala, would the interaction have been any better? That is extremely doubtful, barring the fluency of language use. This is because Handunnetti, like most other politicians past and present, are good at rhetoric but not convincing where substance is concerned, particularly when it comes to global issues. It is for this reason that such leaders need competent staff and consultants, and not mere party loyalists and yes men, which is an unfortunate situation that has engulfed the whole government.
What about the speech in parliament? Again, as in the WEF event, his presentation was crystal clear and, in this instance, contextually sensible. But he did not have to make that speech in English at all when decent simultaneous translation services were available. In so far as content was concerned, he made a sound argument considering local conditions which he knows well. The minister’s argument is about the need to ensure that young entrepreneurs be taught English so that they can deal with the world and bring investments into the country, among other things. This should actually be the norm, not only for young entrepreneurs, but for all who are interested in widening their employment and investment opportunities beyond this country and in accessing knowledge for which Sinhala and Tamil alone do not suffice.
As far as I am concerned, Handunetti’s argument is important because in parliament, it can be construed as a policy prerogative. Significantly, he asked the Minister of Education to make this possible in the educational reforms that the government is contemplating.
He went further, appealing to his detractors not to mock his struggle in learning English, and instead to become part of the solution. However, in my opinion, there is no need for the Minister to carry this chip on his shoulder. Why should the minister concern himself with being mocked for poor use of English? But there is a gap that his plea should have also addressed. What prevented him from mastering English in his youth goes far deeper than the lack of a privileged upbringing.
The fact of the matter is, the facilities that were available in schools and universities to learn English were not taken seriously and were often looked down upon as kaduwa by the political spectrum he represents and nationalist elements for whom the utilitarian value of English was not self-evident. I say this with responsibility because this was a considerable part of the reality in my time as an undergraduate and also throughout the time I taught in Sri Lanka.
Much earlier in my youth, swayed by the rhetoric of Sinhala language nationalism, my own mastery of English was also delayed even though my background is vastly different from the minister. I too was mocked, when two important schools in Kandy – Trinity College and St. Anthony’s College – refused to accept me to Grade 1 as my English was wanting. This was nearly 20 years after independence. I, however, opted to move on from the blatant discrimination, and mastered the language, although I probably had better opportunities and saw the world through a vastly different lens than the minister. If the minister’s commitment was also based on these social and political realities and the role people like him had played in negating our English language training particularly in universities, his plea would have sounded far more genuine.
If both these remarks and the contexts in which they were made say something about the way we can use English in our country, it is this: On one hand, the government needs to make sure it has a pragmatic policy in place when it sends representatives to international events which takes into account both a person’s language skills and his breadth of knowledge of the subject matter. On the other hand, it needs to find a way to ensure that English is taught to everyone successfully from kindergarten to university as a tool for inclusion, knowledge and communication and not a weapon of exclusion as is often the case.
This can only bear fruit if the failures, lapses and strengths of the country’s English language teaching efforts are taken into cognizance. Lamentably, division and discrimination are still the main emotional considerations on which English is being popularly used as the trolls of the minister’s English usage have shown. It is indeed regrettable that their small-mindedness prevents them from realizing that the Brits have long lost their long undisputed ownership over the English language along with the Empire itself. It is no longer in the hands of the colonial masters. So why allow it to be wielded by a privileged few mired in misplaced notions of elitism?
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