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Garlic scam: Whistleblower ready to assist CID

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‘No need to verify my claims; I stand by all charges’

By Shamindra Ferdinando

Former Executive Director of the Consumer Affairs Authority (CAA) Thushan Gunawardena questions the rationale behind the Criminal Investigation Department (CID) seeking to question journalists including editors of Sinhala and English national newspapers on the recent exposure of state-owned Lanka Sathosa Ltd (LSL) as a corrupt enterprise.

Gunawardena emphasised that the garlic scam exposed by him in his then capacity as the Executive Director of the Consumer Affairs Authority (CAA) was just one such corrupt deal.

Calling himself a whistleblower, an irate Gunawardena said that in the wake of intimidation and threats, he had e-mailed his resignation letter to the CAA Chairman, retired Maj. Gen. Shantha Dissanayake, on 21 Sept. “I haven’t received an acknowledgment from the CAA Chairman yet, Gunawardena told The Island yesterday (28) morning.

“Regardless of the Chairman’s response, I’m out,” Gunawardena said.

Responding to another query, Gunawardena said that he firmly stood by every word he had said about the garlic racket.

“As I felt a despicable attempt was being made to hush up the garlic scam, I decided to go public,” Gunawardena said.

Gunawardena said that the racketeers’ plan had gone awry due to the CAA raid on Welisara warehouse. The Sathosa plan was to condemn two container loads of 56,000 kilos of garlic bought at less than Rs 120 per kilo from the harbour, sell the consignment to a regular supplier at Rs 135 a kilo and buyback the same lot at Rs 445 a kilo, Gunawardena said.

Pointing out that senior management representative DGM (Finance) Susiri Perera had been arrested along with several other employees in that connection, Gunawardena said that the Trade Ministry owed an explanation as Sathosa came under its purview. Following the media exposure, Sathosa had no option but to rescind the agreement with the supplier and sell the stock of garlic through its network of outlets, Gunawardena said.

The CID named several journalists, including editors of The Island and the Divaina, following a complaint lodged by Trade Minister Bandula Gunawardena. The CID also sought to question Lankadeepa journalists including its editor.

In spite of an assurance received by the media Monday night that the CID wouldn’t seek statements from the media, the CID turned up at Lankadeepa offices yesterday (28) morning. The assurance was given after Monday’s Cabinet meeting chaired by Prime Minister Mahinda Rajapaksa in the absence of President Gotabaya Rajapaksa who is yet to return from the US.

During post-Cabinet media briefing, the media sought an explanation from Minister Alahapperuma regarding the police seeking statements from the media. Expressing his deep regret, Minister Alahapperuma said that the police shouldn’t have sought to question journalists in that regard under any circumstances.

The Media Minister said that Prime Minister Mahinda Rajapaksa had made it quite clear the media shouldn’t be questioned and Public Security Minister Rear Admiral Weerasekera, too, agreed.

However, Lankadeepa Editor Siri Ranasinghe told The Island yesterday that in spite of the assurances received from the government, the CID arrived at the Lankadeepa editorial in the morning. “We declined to make statements today. As they pressed for an appointment, we asked them to come back on 03 Oct.”

 Gunawardena said that in addition to the print media and television coverage, garlic scam had received considerable attention in the social media. What was going on at Sathosa reflected the deepening economic crisis with several hundred container loads of food and other essential stuff held up at the Colombo harbour due to the inability of importers to clear them, Gunawardena said.

Gunawardena said that importers hadn’t been able to do so as the banks could not release US dollars. According to him as many as 800 containers had been held up due to Sri Lanka’s inability to pay for imported goods. It would be a grave blunder on the government’s part to confiscate such containers and make goods available through Sathosa outlets, Gunawardena said, urging the government to review its strategies.

“We are paying a very heavy price for not prudently managing Sathosa,” Gunawardena said. Declaring the absence of proper oversight mechanism, auditing, negligence and punitive action encouraged waste, corruption and irregularities, Gunawardena said Sathosa was a case in point. “Sathosa cannot be examined in isolation. Three other sister organisations, too, should be probed,” Gunawardena said, adding that he first got to know about the setup when Chamal Rajapaksa holding the trade portfolio asked for a report on them. The examination had revealed many crooked deals and on the instructions of Minister Rajapaksa, several cases were reported to the CID, Gunawardena said.

Gunawardena said that he had personally briefed the CID on corruption in enterprises coming under the purview of the trade ministry. Gunawardena explained how costly transactions had been carried out at the expense of the taxpayer regardless of the party in power. Declaring that he had received the appointment with the blessings of President Gotabaya Rajapaksa, Gunawardena said that Sathosa and other such enterprises were nothing but a heavy burden on the people.

Gunawardena revealed that in his report to Minister Chamal Rajapaksa and he had recommended the closing down of two enterprises coming under the Trade Ministry as such waste, corruption and irregularities couldn’t be condoned. Gunawardena urged Parliament to probe the enterprises coming under the trade ministry without further delay.

Gunawardena said that he sincerely hoped the top SLPP leadership would realise how poor management at key ministries undermined the government was. The sugar scam, unprecedented shortage in rice as well as continuing shortage of cement and milk powder indicated rapidly deteriorating situation.



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CEB seeking tariff hike while making huge profits, says opposition trade union leader

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Ananda Palitha

Convenor of the Samagi Joint Trade Union Alliance affiliated with the Samagi Jana Balawegaya, Ananda Palitha, yesterday (16) said that the Ceylon Electricity Board was seeking to raise electricity tariffs by 13.56% percent although it had earned a profit of more than Rs 22,000 mn.

The CEB recently submitted its proposal to the Public Utilities Commission of Sri Lanka (PUCSL) for an electricity tariff revision for the second quarter of this year – the period effective from April 1 to June 30.

Palitha alleged that the PUCSL, in spite of knowing the massive profit earned by the CEB, at the expense of the hapless public, had chosen to allow the state enterprise to propose an additional burden.

The economic, technical and safety regulator of the electricity industry, and the designated regulator for petroleum and water services industries, should exercise its powers in terms of the PUCSL Act No. 35 of 2002 and the Sri Lanka Electricity Act No. 20 of 2009 to provide relief, the veteran trade unionist said.

Palitha emphasised that the PUCSL had the right to intervene on behalf of electricity consumers but, unfortunately, chose to facilitate the CEB’s despicable strategy. “The proposal to increase tariffs by 13.56% was meant to divert attention. The real issue at hand is the percentage of electricity tariff reduction,” Palitha said. The former UNPer found fault with the Opposition for failing to expose the CEB.

Taking into consideration the Rs 22,000 millionplus profit, the PUCSL could order the CEB to grant relief to consumers, Palitha said, adding that the CEB and PUCSL, together, deprived electricity consumers tariff reduction in the first quarter of this year, too.

In January this year, the CEB asked for a 11.59% tariff increase though it was enjoying Rs 22,000 mn profit at that time, the trade unionist said.

Palitha said that as the PUCSL received all data available to the CEB it was fully aware of the finances of the state enterprise.

In January, 2025, regardless of the NPP government floating the idea regarding as much as a 37% tariff increase, the PUCSL granted a 20% tariff reduction (25% of Rs 22,000 mn profit), Palitha said.

According to him, as a result of relief granted to the consumers, the profits had been reduced to Rs 16,000 mn but by June 2025 profits had increased to Rs 18,000 mn and there was a need to grant tariff reduction. But, the NPP, having always lashed out at the International Monetary Fund (IMF) in the run up to the presidential election, held in September 2024, started playing a different tune.

Responding to The Island queries, Palitha said that contrary to claims that the CEB proposed a 13.56% tariff increase to cover up losses caused by the importation of low-quality coal for the Norochcholai Lakvijaya coal-fired power plant, the current strategy seemed to have been adopted at the behest of the IMF.

Instead of granting tariff reduction for the third quarter in 2025, the PUCSL ordered an 18% increase, Palitha said. The trade unionist claimed that the Finance Ministry, at the behest of the IMF, directed both the CEB and the PUCSL to increase electricity tariffs by 20% in violation of the relevant Acts, he said.

Then in Oct, 2025, the CEB proposed a 6.8 % tariff increase at a time its profits were around Rs 22,000 mn. The CEB and PUCSL staged a drama over that proposal and finally, on the false pretext of the CEB’s failure to furnish its proposal on time, the revision was dropped, Palitha said. The SJB activist pointed out that the Opposition failed to highlight that consumers had been deprived of downward revision in spite of massive profits earned by the Board. “In fact, when Energy Minister Kumara Jayakody met trade unions, he very clearly declared that they were considering electricity power reduction, perhaps by 10%, 12% or 15%. But in the end nothing happened.”

Now the same drama is being enacted by the government, the CEB and the PUCSL, Palitha said.

By Shamindra Ferdinando

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BASL protest march

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BASL President Rajeev Amarasuriya addressing the media at the BASL Head Office, Colombo, yesterday (16). He demanded that the government apprehend those responsible for the killing of a lawyer and his wife at Akuregoda, close to the tri-forces headquarters on Friday (13). Pic by Nishan S. Priyantha

Members of the BASL yesterday (16) staged a protest march over the murder of a lawyer and his wife in Akuregoda, Thalangama, last week. The BASL staged a protest march from the Supreme Court Complex to the BASL Head Office.

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IMF MD here

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Kristalina

Managing Director of the International Monetary Fund (IMF) Kristalina Georgieva arrived in Colombo yesterday (16) for top level discussions with the government. She is scheduled to leave tomorrow (18) after meeting government authorities and key stakeholders, observing firsthand the impact of Cyclone Ditwah, and discussing ways in which the IMF could support recovery efforts and contribute to building a more resilient future for all Sri Lankans, sources said.

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