News
Discussions with China underway to resolve economic crisis
USD 2.5 bn funding:
Amb Zhenhong silent on IMF intervention
By Shamindra Ferdinando
The cash-strapped Sri Lankan government is negotiating with China for funds amounting to USD 2.5 bn in addition to USD 2.8 bn obtained since the global epidemic Covid-19 eruption in early 2020.
Chinese Ambassador Qi Zhenhong disclosed Sri Lanka’s request at the onset of a media briefing held at the Kingsbury Hotel in Colombo yesterday (21).
The disclosure was made close on the heels of the finalisation of USD 1 bn loan facility provided by India and President Gotabaya Rajapaksa’s declaration of his readiness to seek IMF assistance. Amb. Zhenhong declined to comment on Sri Lanka’s decision to resume negotiations with the IMF.
Sri Lanka announced plans for talks with the IMF in the wake of an increase in prices of all essential items and services following the floating of the Rupee in the first week of March.
Amb. Zhenhong said that China recently received requests for USD 1 billion financing facility and USD 1.5 bn buyer’s credit. The Chinese envoy declared: “We understand the urgency in Sri Lanka’s need. Relevant authorities are studying the request.”
In spite of repeated questions, Amb Zhenhong refrained from going into details, including Sri Lanka’s specific needs while reiterating their commitment to help a friendly country.
Zhenhong presented his credentials to President Gotabaya Rajapaksa in mid Nov 2020 at the height of the first Covid-19 wave.
At the commencement of the briefing attended by local and Colombo based international media, Amb. Zhenhong said a range of events and activities conducted so far this year to mark 65th anniversary of China-Sri Lanka diplomatic relations and the 70th anniversary of the Rubber-Rice pact.
Responding to a query raised by Reuters, Amb Zhenhong said that USD 1 bn term financing facility had been provided on March 18, 2020 and April 12, 2020 (USD 500 mn each) with maturity period of 10 years. That was followed by CNY 2 bn (approximately USD 300 mn) term financing facility provided on Aug. 17, 2021, Amb Zhenhong said, adding CNY 10 bn (approximately USD1.5 bn) bilateral currency SWAP agreement was finalized in March 2021.
The Chinese envoy sidestepped a specific query on President Gotabaya Rajapaksa’s request to restructure debt repayments to overcome the financial crisis.
President Rajapaksa made the request during a meeting with Chinese Foreign Minister Wang Yi in early January this year.
New requests for USD 2.5 bn (USD 1 bn financing facility and USD 1.5 bn buyer’s credit) are believed to have been made following the Chinese Foreign Minister’s high profile visit.
Asked whether India has overtaken China in providing assistance and investments here, Amb Zhenhong listed Chinese loans and investments while asserting consistency, scale and comprehensiveness in their role. The Chinese envoy didn’t respond to the query on Finance Minister Basil Rajapaksa being too close to India and pursuing an agenda at the expense of Beijing.
Amb Zhenhong dismissed assertions that the failure on the part of the Colombo Port City to attract investments and concerns over proposed Free Trade Agreement (FTA) between China and Sri Lanka. Amb Zhenhong assured: “We’ll never take advantage of FTA with Sri Lanka.” The Chinese envoy said so when the media queried the absence of a draft of FTA and serious concerns over its content against the backdrop of the previous Sri Lanka administration finalizing FTA with Singapore under controversial circumstances.
Amb Zhenhong said that the experts of both sides could handle the issues at hand.
Amb Zhenhong said that in spite of Covid-19 eruption China sustained its projects here with over 11,000 locals hired. Referring to major Chinese projects underway here namely Colombo Port City, Colombo International Container Terminals (CICT) and Hambantota International Port (HIP), Amb Zhenhong emphasized their ventures were on track.
The envoy questioned the unexplained suspension of ADB funded power projects in the North while declining to respond to questions regarding the status of them. The Chinese envoy advised that such an attitude on Sri Lanka’s part would be inimical to ongoing efforts to attract foreign investment.
The Chinese envoy avoided responding to queries regarding growing Indian presence in the Northern and Eastern Provinces of Sri Lanka and instances of India objecting to Chinese taking up projects. However, Amb Zhenhong explained the projects undertaken by China in Tamil dominated region, investments and grants made in support of the civilian community there.
News
Suspects involved in sureties controversy granted bail
Airbus bribe case:
Colombo Additional Magistrate Lahiru Silva yesterday (20) granted bail to Mohamed Riswan and Mohamed Irshan, who allegedly received money to stand as sureties for the late former SriLankan Airlines CEO, Kapila Chandrasena. They were identified as residents of Sanchi Arachchi Watta, situated next to the Hulftsdorp court complex.
Chandrasena was found dead at his brother-in-law, Aravinda De Silva’s residence, at No. 38, Pedris Road, Kollupitiya, on 8 May.
The Magistrate also granted bail to B. A. Tissa and Perumal Ganesh, who arranged for Riswan and Irshan to stand as sureties for Chandrasena, who is under investigation for allegedly receiving a USD 2 million bribe through his wife to facilitate an Airbus deal. They, too, residents of Sanchi Arachchi Watta, were granted bail on two personal bail of Rs. 500,000 each.
Airbus had to pay USD 4 billion in penalties after admitting it had paid huge bribes to secure contracts in 20 countries. Sri Lanka is among them.
The Magistrate directed that the Grama Niladhari should certify their residence and the relevant certificates submitted to court and to establish the financial status of those who stood as sureties for the four persons.
The court was told that Mohamed Riswan and Mohamed Irshan obtained 17 Grama Niladhari certificates from January till May 2026. On the basis of a statement recorded from Keselwatta Grama Niladhari S. Nilantha Silva police informed court that the first suspect had obtained 10 certificates and the second person seven.
Fourth suspect Ganesh had first met those who stood as sureties, on 05 May, in the court premises and struck the deal. Crime OIC of Keselwatta Police, Sub Inspector K.W.D. Anuruddha, told court that Mohamed Riswan, Mohamed Irshan and B. A. Tissa hadn’t even known who Chandrasena was and were not related to him in anyway, according to investigations. Police requested that the four persons be further remanded.
The Magistrate granted them bail and set the next hearing for 25 June.
Legal sources said that such illegal practices were rampant, and in this particular case the Court Registrar should have been able to see that the sureties were very much unlikely to be relatives of Chandrasena.
By Shamindra Ferdinando
News
Steps underway to safeguard Sri Lanka’s maritime heritage
The government has initiated a major conservation drive to protect its fragile northern marine ecosystems, with top government officials pledging stronger action against environmental degradation, destructive fishing practices, and Illegal, Unreported and Unregulated (IUU) fishing in the country’s northern seas and adjacent islands.
A high-level discussion chaired jointly by Deputy Minister of Environment Anton Jayakody and Deputy Minister of Defence Aruna Jayasekara was held on Tuesday (19) at the Ministry of Environment to formulate an integrated strategy aimed at safeguarding Sri Lanka’s maritime heritage and accelerating marine conservation initiatives.
Senior naval officers, top environment officials, conservation experts, and representatives from several state agencies attended the meeting, which focused heavily on the declaration of new Marine Protected Areas (MPAs) in the Northern Province.
Among those present were Secretary to the Ministry of Environment K.R. Uduwawala, Chairman of the Marine Environment Protection Authority Samantha Gunasekara, Director General of the Coast Conservation and Coastal Resource Management Department Prof. Turny Pradeep Kumara, Conservator General of Forests Palamakumbura, officials of the Department of Wildlife Conservation, and senior ecologists from International Union for Conservation of Nature.
Officials stressed that the protection of Sri Lanka’s northern marine zone was essential not only for biodiversity conservation but also for sustaining the livelihoods of fishing communities and strengthening the country’s maritime standing internationally.
A major concern raised during the meeting was the increasing ecological destruction caused by IUU fishing activities. Ministers warned that such unlawful practices posed a severe threat to marine biodiversity and the economic stability of local fishermen.
The discussion also focused on intensifying surveillance operations and strengthening law enforcement mechanisms to combat destructive fishing methods, including dynamite fishing, unauthorized spearfishing, and the use of banned fishing gear that continue to devastate coral reef ecosystems and endangered marine species.
Attention was also drawn to governance and infrastructure shortcomings within fishing harbours, with officials identifying the lack of proper management systems and formal regulatory mechanisms as major vulnerabilities contributing to environmental degradation.
As part of the proposed conservation strategy, several islands and surrounding marine zones in the Northern Province have now been identified for official declaration as Marine Protected Areas.
Authorities clarified that the establishment of MPAs would not undermine the livelihoods of local communities but instead promote sustainable fishing practices while opening new opportunities for eco-tourism development.
Officials said these protected marine zones could eventually be developed into internationally recognised eco-tourism destinations, generating fresh economic opportunities for the Northern Province while enhancing Sri Lanka’s environmental credentials globally.
The meeting further highlighted that the declaration of new MPAs would reinforce Sri Lanka’s commitment to international biodiversity conservation obligations and demonstrate the country’s role as a responsible custodian of the Indian Ocean’s marine resources.
A proposal was also made to establish a multi-sectoral working group comprising representatives from the Ministries of Tourism, Fisheries, Defence, Environment, and Justice to implement a coordinated mechanism for the protection of coastal and marine resources under the leadership of the Ministry of Environment.
Officials described the initiative as another significant milestone in Sri Lanka’s broader journey towards building a sustainable biosphere and ensuring long-term environmental security for future generations.
By Ifham Nizam
News
CEJ’s landmark legal battles reshape Sri Lanka’s environmental justice landscape
In a country where environmental destruction, political interference and weak enforcement have often overshadowed conservation efforts, the Centre for Environmental Justice (CEJ) has emerged as one of Sri Lanka’s most formidable legal defenders of nature.2
From the catastrophic MV X-Press Pearl Disaster to the destruction of the Wilpattu National Park ecosystem, CEJ has consistently used the courts to challenge environmental crimes, state negligence and corporate irresponsibility, securing several landmark judgments that have transformed the country’s environmental jurisprudence.
Speaking to The Island, CEJ Executive Director Dilena Pathragoda said these legal victories were not merely courtroom successes but historic interventions aimed at safeguarding the rights of future generations.
“Environmental litigation is not only about protecting forests, rivers or wildlife. It is fundamentally about protecting people, public health, livelihoods and the constitutional rights of future generations to live in a safe and healthy environment,” Pathragoda said.
Among the most consequential legal actions spearheaded by CEJ was the litigation surrounding the X-Press Pearl maritime disaster, regarded as Sri Lanka’s worst marine environmental catastrophe.
The Island, which was among the first newspapers to consistently highlight the gravity of the X-Press Pearl environmental disaster and its long-term ecological consequences, closely followed the legal battle that eventually resulted in a landmark compensation ruling.
The Singapore-flagged cargo vessel caught fire and sank off Sri Lanka’s western coast in 2021, releasing massive quantities of hazardous chemicals, microplastics and pollutants into the Indian Ocean, devastating marine ecosystems and fishing communities.
Pathragoda noted that the Supreme Court’s direction for compensation amounting to nearly USD 1 billion marked a turning point in Sri Lankan environmental law.
“For the first time, Sri Lanka robustly applied the internationally recognised ‘Polluter Pays Principle’ in a manner that sent a strong signal to multinational corporations and shipping operators that environmental destruction carries enormous legal and financial consequences,” he said.
Environmentalists say the ruling significantly strengthened accountability standards for transboundary pollution and maritime negligence.
Wilpattu judgment becomes watershed moment.
The CEJ-led litigation over the illegal clearing of forests adjoining Wilpattu National Park is widely regarded as one of the most powerful environmental rulings in South Asia.
The controversial clearing of the Marichchukaddi forest reserve for settlement purposes triggered widespread outrage among conservationists and scientists.
According to Pathragoda, the judgment established that politically motivated environmental destruction could not be justified under any circumstances.
“The court recognised that no authority, regardless of political power, has the right to destroy protected forests in violation of environmental laws,” he stressed.
In a landmark directive, the Court of Appeal ordered reforestation of the destroyed lands and held responsible state actors personally accountable for restoration efforts.
Legal analysts described the ruling as a major advancement in public trust doctrine and environmental accountability in Sri Lanka.
CEJ also played a central role in challenging controversial government attempts to legitimise the possession of illegally captured wild elephant calves through relaxed registration regulations.
The organisation argued that the gazette notification undermined wildlife protection laws and effectively rewarded wildlife traffickers.
“Sri Lanka’s elephants are part of our national heritage and ecological identity. Weakening protections for illegally captured elephants would have legitimised wildlife crime,” Pathragoda said.
The resulting court intervention became a significant legal safeguard for wildlife conservation and strengthened enforcement against illegal wildlife trade networks.
The deadly Meethotamulla Garbage Dump Collapse disaster also became a defining moment for environmental litigation in Sri Lanka.
CEJ had long warned authorities about the dangers posed by the uncontrolled garbage mountain in a densely populated residential area.
After the catastrophic collapse that killed dozens of residents, legal proceedings intensified scrutiny on failures in waste management governance.
Pathragoda said the tragedy demonstrated the devastating human cost of environmental negligence.
“Environmental justice is inseparable from social justice. Poor communities are often forced to bear the heaviest burden of pollution, waste and environmental mismanagement,” he observed.
The case helped reinforce the principle that improper waste disposal and environmental negligence can amount to violations of citizens’ fundamental rights.
CEJ also gained international attention through its legal challenge against the illegal importation of hazardous waste containers from the United Kingdom.
Hundreds of containers containing clinical and mixed waste had been brought into Sri Lanka in violation of international environmental conventions and domestic regulations.
The legal action ultimately compelled authorities to ensure the waste was returned to the country of origin.
“Sri Lanka cannot and must never become a dumping ground for toxic waste generated by wealthy nations,” Pathragoda asserted.
Environmental observers said the case strengthened Sri Lanka’s standing under the Basel Convention and reinforced national sovereignty in environmental governance.
Pathragoda believes Sri Lanka’s environmental litigation landscape is evolving rapidly, with courts increasingly willing to intervene where environmental harm threatens public welfare.
However, he warned that environmental destruction continues at an alarming pace due to weak enforcement, political patronage and short-term economic priorities.
“The real challenge is not the absence of laws. Sri Lanka already possesses many strong environmental statutes. The problem lies in implementation, political interference and the lack of accountability,” he said.
He added that CEJ would continue pursuing strategic litigation to protect forests, biodiversity, marine ecosystems and vulnerable communities.
“Every environmental case we file is ultimately about ensuring that future generations inherit a country that is still ecologically alive,” Pathragoda said.
He noted as climate risks intensify and ecological pressures mount, CEJ’s courtroom battles are increasingly being viewed not merely as legal contests, but as critical struggles over the environmental future of Sri Lanka itself.
By Ifham Nizam
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