Midweek Review
Growing foreign dependency and India’s USD 4 bn lifeline

By Shamindra Ferdinando
The Japanese embassy and UNICEF (United Nations Children’s Fund, previously known as United Nations International Children’s Emergency Fund), on 16 March, 2023, issued a joint statement that dealt with the impact the developing political-economic-social crisis is having on the poor in Sri Lanka.
The statement focused on the suffering of the children and measures taken by UNICEF, in consultation with the Governments of Japan and Sri Lanka, to provide relief to the needy.
However, what really captured public attention was the declaration made by the Japanese Ambassador, in Colombo, Mizukoshi Hideak, that with the latest contribution, amounting to USD 1.8 mn, the total Japanese financial assistance, provided through UNICEF alone, exceeded USD 3.8 mn, since the beginning of last year. That is definitely a significant package provided through a single UN agency, particularly against the backdrop of the unceremonious cancellation of the Japan- funded Light Rail Transit (LRT) project, in late Sept., 2020, by the Gotabaya Rajapaksa Government.
The directive, in this regard, was issued on 21 Sept., 2020, by Dr. P. B. Jayasundera, in his capacity as Secretary to the President, to the then Transport Secretary, Monti Ranatunga. That move ruined Sri Lanka’s relations with Japan.
Whoever advised the then President Gotabaya Rajapaksa to terminate the project, without consulting Japan, as head of the Cabinet-of-Ministers, he couldn’t absolve himself of the responsibility for the ruination of vital relationship with Tokyo. Had it not been the case, Japan, most probably, would have delivered a substantial assistance to Sri Lanka, at the onset of the ongoing unprecedented crisis.
Sri Lanka made a failed bid to secure as much as USD 3.5 bn loan from Japan, during the tenure of Sanjiv Gunasekara as Sri Lanka’s Ambassador in Tokyo. Gunasekara, a close associate of President Gotabaya Rajapaksa, resigned in the wake of the 09 May, 2022, violence, that gave a turbo boost to the campaign against his government.
Unlike Japan, India provided direct aid in various forms to Sri Lanka, struggling to cope up with what became an insurmountable crisis to overcome on our own. India has repeatedly declared that the continuing assistance is in line with Premier Narendra Modi’s much touted ‘Neighbourhood First’ policy. Sri Lanka received concessional credit facility, amounting to USD 1 bn, in March last year. In addition to that, by the second week of March this year, Sri Lanka received other lines of credit, worth over USD 3 bn. Therefore, the total Indian assistance is worth over USD 4 bn, a staggering amount as Sri Lanka’s debt before the Japanese and Indian interventions stood at over USD 53 bn. Indian intervention cannot be compared, under any circumstances, with assistance provided by any other country.
The Indian assistance is of immense importance as the International Monetary Fund (IMF), after much deliberation, promised USD 2.9 bn over a period of four years. The delay on the part of China to provide an assurance as regards debt-restructuring support, hindered the finalization of the tripartite agreement involving Sri Lanka, creditors and IMF. Finally, China gave that assurance, in writing, early this month.

Indrajit Coomaraswamy
The situation was so precarious, Sri Lanka couldn’t have even provided the free text books that have been given, annually, to the student population ,from the time of the JRJ regime. Those who had been at the helm of political power, over the past three decades, to varying degrees, ruined the economy, and, by 2021/2022, Sri Lanka was unable to provide even the basic requirements, like cooking gas, kerosene, petrol, etc., as even remittances from our expatriate workers, which in the past amounted to about seven billion dollars per year, dropped drastically due to the illegal underground banking system, hawala/undiyal, hijacking much of it from the normal banks. The government didn’t have the means to provide school text books for the 2023 academic year. In consultation with India, of the USD 1 bn concessional credit facility, over USD 10 mn was utilized by the State Printing Corporation, and private importers, to procure printing paper and other material from India. India met 45% (four mn students) of the total requirement. Indian High Commissioner Gopal Baglay visited the SPC, on 09 March, 2023, to dispatch a consignment of textbooks to schools. Education Minister Dr. Susil Premjayantha joined Baglay. The Indian High Commission statement, issued two days later,, was aptly titled ‘India’s support for text books investment in Sri Lanka’s future.’
The government and the Opposition should be ashamed of their failure to provide for the children’s need.
Perhaps, a Parliamentary Select Committee (PSC) should be appointed to examine the circumstances leading to Sri Lanka’s bankruptcy status. Decades of utterly irresponsible management of the economy, coupled with an explosive mixture of causes – waste, corruption and irregularities – caused the current crisis.
Political parties, represented in Parliament, are responsible for the continuing crisis, to varying degrees.
Controversy over ISBs
The Island discussed some of the issues at hand in last week’s midweek piece, headlined ‘All praise for Lanka’s saviours!
What Dr. Coomaraswamy didn’t say was that as the CB Governor, he was also directly responsible for the Yahapalana government borrowing a record USD 12.5 bn from the international bond market, at high interest rates, from private lenders, primarily in the West. So what did that government achieve with such huge borrowings? All that the Yahapalana regime achieved, with all that money, we cannot see, except to lay the foundation for the current debt crisis?
Our comment on the basis of recent claims that the Governor of the Central Bank, Dr. Coomaraswamy (2016-2019), only told one side of the truth, attracted responses from several parties, including the Central Bank.
Consequently, the writer discussed the borrowing of USD 12.5 bn, and related matters, and was told the following: First, it is important to point out that the Governor, Central Bank, has no authority to approve or undertake any borrowing on behalf of the government. The borrowing limit, in any given year, is set by Parliament. Therefore, the government cannot borrow beyond the limit set by Parliament. In addition, all external borrowing has to be approved by the Finance Minister, and the Cabinet of Ministers. The Governor and the CBSL only have an advisory role. On ISBs, they have marketing and issuance as additional responsibilities once the Cabinet approved the transaction.
It is also important to recognize that ISBs are only one channel for external commercial borrowings. Others include short-term SWAPs, foreign term loans/syndicated loans and external flows into government rupee securities. The article dealt with only one instrument, having ignored the switching that was undertaken during 2015-19 to increase the maturity and reduce the cost of foreign borrowing.
As regards the USD 10 bn increase in ISBs outstanding during 2015-19, USD 5 bn of this increase can be attributed to switching away from shorter term (one year or less) and more expensive SWAPs and highly volatile foreign portfolio investment (hot money) in Government rupee securities to longer term (5 and 10 years) and less costly ISBs. SWAPs were reduced from approximately USD 2.5 bn to USD 500 mn.
Volatile and foreign investment in government rupee securities was reduced from USD 3.5 bn to USD 600 mn. In addition, during the course of 2019, a second ISB of USD 2 bn was issued to create a stronger buffer of external reserves to address the inevitable increase in uncertainty going into elections due shortly thereafter. (The money required for 2019 had been raised through an ISB, issued in March 2019.)
So about USD 7 bn of the USD 10 bn increase in the stock of ISBs outstanding, during 2015-19 may be attributed to increasing the stability and reducing the cost of the ISBs outstanding by switching instruments and raising the buffer provided by external reserves prior to a period of uncertainty, associated with elections.
The remaining increase of USD 3 bn may be partly attributed to the fact that borrowing incurred earlier had not resulted in a sufficient increase and/or saving of foreign exchange. Hence money had to be borrowed to repay debt incurred earlier. In fact, Verite Research found that 89 percent of external debt, repaid during 2015-19, could be accounted for by liabilities incurred prior to 2015.
The adverse debt dynamics were recognized and the Medium Term Debt Management Strategy was published in April 2019 to chart the way to sustainability. In addition, the Active Liability Management Act (2018) was introduced to expand the tools available to the CBSL for managing external debt sustainably. The CBSL, as the economic adviser to the Government, also advocated that there should be a primary surplus in the budget and that non-debt creating inflows (such as exports, remittances, tourism proceeds, FDI, inflows into the CSE and government securities) should be increased to enhance the capacity to service debt while supporting the level of imports necessary to achieve the growth potential of the economy.
They also pointed out that only one of the ISBs, issued during 2015-19, has been settled to date. This amounted to USD 500mn. They expressed the view that it is not possible to sustain the argument that servicing ISBs, incurred during 2015-19 ,led to the standstill in debt repayments in April 2023.
Treasury bond scams and tax cuts

The US embassy released this picture of
Ambassador Chung at an event in
Colombo where the second shipment of
36,000 metric tons of Triple Super
Phosphate (TSP) was handed over to Sri
Lanka. It brings the total of USAID-supported
TSP and urea fertiliser to more than
45,000MT, over the last year.
Sweeping tax concessions to the rich and reduction of VAT, that had been introduced by President Gotabaya Rajapaksa’s government to encourage business in 2019/2020, escalated the financial crisis, leading to the declaration of the state of bankruptcy, two years later. No one in the Gotabaya Rajapaksa’s cabinet dared to challenge such far reaching tax concessions and VAT reduction.
How the loss of as much as Rs 600 bn in revenue, as alleged by the Opposition ,due to tax concessions and reduction of VAT, contributed to the current crisis, should be examined, also taking into consideration (1) Treasury bond scams perpetrated in Feb, 2015 and March 2016 at a time the CBSL has been under the then Prime Minister Ranil Wickremesinghe, in his capacity as Minister of Policy Planning and Economic Affairs (2) Enactment of new Foreign Exchange Act in 2017 in the wake of Treasury bond scams. Critics say the repealing of time-tested exchange control law that has been in place for decades paved the way for exporters to ‘park’ export proceeds overseas. Of the 225 MPs, 94 voted for the new law whereas 18 voted against. In spite of Justice Minister, Dr. Wijeyadasa Rajapakse, PC, taking up this issue, both in and outside Parliament, remedial measures hasn’t been taken, to date. The Finance Ministry owed an explanation as to how it intended to compel the exporters to bring back export proceeds (3) Continuing public-private sector partnership in corrupt practices, particularly mis-invoicing (under invoicing and over invoicing of imports/exports) (4) Pivithuru Hela Urumaya leader Udaya Gammanpila, MP, has moved the Supreme Court against the Central Bank Bill. The Attorney-at-Law alleged that the new law violated Article 3 and 4 of the Constitution hence needing the approval of the people at a referendum. In addition to Gammanpila, Dr. Gunadasa Amarasekera and Jathika Nidahas Peramuna leader Wimal Weerawansa, too, moved the Supreme Court in terms of the Article 121 against the Bill titled ‘Central Bank of Sri Lanka.’ Former JVP MP Wasantha Samarasinghe, on behalf of the Jathika Jana Balavegaya (JJB), too, moved the Supreme Court in this regard.
A warning from Hanke
The country is in a bind. In spite of the execution of the agreement with the IMF later this month, the situation remains dicey. The absence of economic recovery plan continues to cause further instability.
Therefore, the government and the Opposition should seek a consensus on a national action plan, even if Local Government polls cannot be conducted in late April, regardless of the Supreme Court intervention.
Steve Hanke, Professor of Applied Economics, at Johns Hopkins University, in the USA, recently issued a dire warning to Sri Lanka. Appearing on CNBC’s ‘Squawk Box Asia,’ Prof. Hanke declared Sri Lanka needs institutional reforms in order to achieve long-term debt sustainability.
Referring to Sri Lanka and what was described as emerging markets (Argentina and Montenegro), where he played a key role in establishing new currency regime, former economic advisor to US President Ronald Reagan warned “Unless you change the institutions and the rules of the game, governing these countries, they’re always going to remain in the same … situation that they’ve been in for a long time.”
Prof. Hanke added: “In fact, most of the personalities, involved in Sri Lanka ,at the high level, are exactly the same as they’ve been for years. So nothing has changed.”
In other words, those who have ruined Sri Lanka are spearheading the economic recovery process. The American is spot on. Sri Lanka is in a pathetic situation. Those who had systematically brought Sri Lanka to its knees, by pursuing ill-fated policies, emerged as its saviours. That is the bitter truth. The role of the executive, legislature, and judiciary, needs to be examined. Those who have moved the Supreme Court against the Bill, titled ‘Central Bank of Sri Lanka,’ have quite conveniently forgotten how the Yahapalana government, and Central Bank, twice perpetrated Treasury bond scams. What would have Prof. Hanke said if CNBC raised Treasury bonds scams during ‘Squawk Box Asia.’
If not for Deepa Seneviratne, the then head of Public Debt Department, Governor Arjuna Mahendran’s role couldn’t have been proved. Former Auditor General Gamini Wijesinghe said so at an event organized by the Colombo Municipal Council years ago.
Sri Lanka cannot forget Prof. Hanke’s remark in the CNBC programme. “You have to remember that we have a country that since 1965 has had 16 IMF programmes and they’ve all failed. You get temporary relief in anticipation of a bailout. But in the long run … none of these IMF programmes work.”
It would be pertinent to briefly examine how interested parties brazenly protected perpetrators of the Treasury bond scams.
Having named Mahendran as the Governor, regardless of the opposition from President Maithripala Sirisena, those planning to commit the first daylight robbery of the Central Bank moved Deepa Seneviratne to the Public Debt Department as its head, in spite of her not having had any previous experience in the particular division. It seems they had obviously felt comfortable in having a lady officer there they thought they could manipulate her to suit their need. But Seneviratne turned tables on the bond thieves by putting up a note to register her strong opposition to Mahendran’s move. She should have been rewarded for her fearless stand with at least a national honour if not an international one, even from bodies like the UN, the Transparency International, Amnesty International, etc. But it seems that even these international busy bodies have their own political angles.
It would be of pivotal importance to keep in mind that President Sirisena appointed a Commission of Inquiry (CoI) in January 2017, about 10 months after the second robbery, and two years after the first.
The Commission comprised Justice K.T. Chitrasiri, the late Justice P S Jayawardena and retired Deputy Auditor General V. Kandasamy. Sumathipala Udugamsuriya functioned as its Secretary. CoI issued a devastating report that implicated Perpetual Treasuries Limited (PTL) in the Treasury bond scams.
President Sirisena went to the extent of dissolving Parliament, in June 2015, to prevent the Committee on Public Enterprises (COPE) tabling its report on the first bond scam. SLFP leader Sirisena owes an explanation. Justice Chitrasiri’s CoI didn’t inquire into that aspect. Sri Lanka’s response to waste, corruption, irregularities and mismanagement is baffling. Let me end this piece reminding how the Bar Association of Sri Lanka (BASL) secured a substantial sponsorship from Perpetual Treasuries Limited (PTL) deeply mired in a bond scam, in 2016, for the Law Asia Conference during the tenure of its then President Geoffrey Alagaratnam, PC. The BASL never explained why it obtained PTL sponsorship even after the exposure of Treasury bond scams. That partnership also escaped the CoI. The rest is history.
Knowing what is now happening to the US economy with a string of bank failures and unprecedented bailouts, especially due to hoodoo economics it introduced in recent decades, like repeated quantitative easing (blindly printing trillions of dollars leading many to say the dollar is now only good as toilet paper) that has been practiced to ensure its world hegemony, the whole world might be hit with bank failures and even by a depression worse than the one that befell with the stock market crash of 1929. Already the contagion has spread to Europe with some leading banks there also requiring help.
Washington’s debt now stands at USD 31 trillion and climbing, but our own debt burden is still under USD 55 billion. So if we can get our exporters, who have stashed export earnings abroad, to bring them back, the picture here will not be as scary as it is made out to be. Even Minister Wijeyadasa Rajapakse has said that our export proceeds that have been parked overseas is in the region of USD 55 billion.
Soonwe will start receiving the IMF bailout, but our economic whiz kids have not done anything to plug the massive foreign exchange leak that has been freely draining foreign currency from the country, since the nineties, by way of private foreign exchange dealers who have been allowed to sell foreign exchange to any Tom, Dick and Harry, including drug dealers, to take their sales proceeds out of the country!
We would also like to ask the relevant authorities what they have done to recover monies stashed abroad by Lankans illegally that were exposed in great detail by the likes of Panama Papers and Pandora Papers.
Midweek Review
Batalanda and complexities of paramilitary operations

Former President Ranil Wickremesinghe’s recent combative ‘Head-to-Head’ interview with British-American Mehdi Hasan on Al Jazeera has opened a can of worms. As to why Hasan raised the Batalanda Presidential Commission report, during a 49-minute interview conducted at the London’s Conway Hall, with a clearly pro LTTE audience, remains a mystery. This must be yet another notorious way to show how even-handed they are as in the case of its coverage of Russia, China, Palestine or Ukraine for their gullible viewers.
Recorded in February and aired in March 2025, the interview is definitely the most controversial the UNP leader, who is also an Attorney-at-Law, ever faced during his political career; always used to getting kid glove treatment, especially after taking over the party in 1994.
The continuing public discourse on Batalanda should provoke a wider discussion on Sri Lanka’s response to separatist Tamil terrorism, since the cold blooded murder of Jaffna SLFP Mayor Alfred Duriappah, which signalled the beginning of the LTTE terror campaign that ended in May 2009 with the crushing military defeat of the Tigers on the banks of the Nathikadal lagoon, as well as two southern insurgencies in 1971 and 1987-1990.
As Nandana Gunatilleke (one time JVP General Secretary and ex-MP), Dr. Wasantha Bandara (ex-JVPer and close associate of the slain JVP leader Rohana Wijeweera), Indrananda de Silva (ex-JVPer, incumbent Central Committee member of Frontline Socialist Party [FSP] and ex-military photographer) and Uvindu Wijeweera (Rohana Wijeweera’s son and leader of Dewana Parapura) agreed during the recent Hiru ‘Balaya’ discussion, conducted by Madushan de Silva, the Batalanda operation was in line with the overall counter-terrorist/insurgency strategy of the then government.
The issues at hand cannot be discussed at all without taking into consideration the JVP terrorism that, at one-time, almost overwhelmed the UNP’s unbroken rule, since 1977, carried out while openly brushing aside most of the universally accepted genuine parliamentary norms. The country’s second Republican constitution, promulgated by the UNP regime with a 5/6 majority in Parliament, in 1978, had been amended no less than 13 times by the time they were finally ousted in 1995. This was mainly to facilitate their continuous rule. Unfortunately, all stakeholders have sought to take advantage of Batalanda, thereby preventing a proper dialogue. Quite surprisingly, none of the guests, nor the interviewer, bothered, at least, to make a reference to the JVP bid on President J.R. Jayewardene’s life in Parliament on the morning of July 18, 1987. At the time, JVPer Ajith Kumara, working in the House as a minor employee, hurled two hand grenades towards JRJ, with the then Prime Minister Ranasinghe Premadasa seated next to JRJ. While one government MP lost his life, several others suffered injuries, including then National Security Minister Lalith Athulathmudali, whose spleen had to be removed.
At one point, Gunatilleke declared that they assassinated UNP MP for Tangalle Jinadasa Weerasinghe on July 3, 1987, in response to the government killing well over 100 people, in Colombo, protesting against the signing of the Indo-Lanka accord on July 29, 1987. The parliamentarian was killed near the Barawakumbuka-Welangahawela bridge on the Colombo-Rathnapura-Embilipitiya Road. The UNPer was killed on his way home after having declined Premier Premadasa’s offer to make an SLAF chopper available for him to reach home safely.
Against the backdrop of MP Weerasinghe’s assassination and the grenade attack on the UNP parliamentary group that claimed the life of Keethi Abeywickrema (MP for Deniyaya), the government had no option but to respond likewise. The operation, established at the Batalanda Housing scheme of the State Fertiliser Corporation, constituted part of the counter-insurgency strategy pursued by the UNP.
Those who called Batalanda complex Batalanda torture camp/ wadakagaraya conveniently forgot during the second JVP inspired insurgency, the military had to utilize many public buildings, including schools, as makeshift accommodation for troops. Of course the UNP established Batalanda under different circumstances with the then Industries Minister Ranil Wickremesinghe providing political authority. Batalanda had been an exclusive police operation though the Army had access to it whenever a requirement arose.
Those who had been suddenly withdrawn from the Northern and Eastern Provinces, to meet the rapidly evolving security threat in the South, required accommodation. FSP CC member Indrananada de Silva had received unhindered access to Batalanda in his capacity as a military photographer and the rest is history.
As to why Indrananda de Silva switched his allegiance to the FSP should be examined, taking into consideration his previous role as a trusted military photographer, formerly a Lance Corporal of the Military Police. An influential section of the JVP, led by Kumar Gunaratnam, formed the FSP in April 2012 though it didn’t receive the much anticipated public support. Both Indrananda de Silva and Nandana Gunatilleke, who aligned himself with the UNP, found fault with the JVP-led National People’s Power (NPP) over its handling of the Batalanada issue.
Paramilitary operations
Paramilitary operations had been an integral part of the overall counter-insurgency campaign, directed at the JVP responsible for approximately 6,600 killings. Among those death squads were PRRA primarily drawn from the SLMP (Sri Lanka Mahajana Party) and SRRA (the socialist Revolutionary Red Army). PRRA had close links with the Independent Student Union (ISU) whose leader Daya Pathirana was slain by the JVP. The vast majority of people do not remember that Daya Pathirana, who led the ISU during the turbulent 1985-1986 period, was killed mid-Dec. 1989. The second insurgency hadn’t started at that time though the JVP propagated the lie that they took up arms against the UNP government following the signing of the Indo-Lanka peace accord on July 29, 1987.
In addition to PRRA and SRRA, the government made use of paramilitary groups, namely Kalu balallu, Ukkusso, Rajaliyo, Kaha balallu, Kola koti, Rathu Makaru, Mapila, Gonussa, Nee, Keshara Sinhayo, Le-mappillu and Kalu koti.
The UNP also involved some elements of Indian trained Tamil groups (not of the LTTE) in paramilitary operations. Such operations, that had been backed by respective Cabinet Ministers, were supervised by local law enforcement authorities. Paramilitary operations had been in line with psychological warfare that was meant to cause fear among the JVP, as well as the general population. Military operations that had been combined with paramilitary actions received the blessings of the political leadership at the highest level. In the case of Batalanda (1988-1990) President J.R. Jayewardene and Ranasinghe Premadasa knew of its existence.
Even after the eradication of the top JVP leadership, by Nov. 1989, police, military and paramilitary operations continued unabated. Former JVPers appearing on ‘Balaya’ agreed that counter-insurgency operations were actually brought to an end only after D.B. Wijetunga succeeded President Ranasinghe Premadasa after the latter’s assassination on May Day 1993.
After the LTTE resumed war in June 1990, just a couple of months after the withdrawal of the Indian Army (July 1987-March1990), the UNP authorized paramilitary operations in the northern and eastern areas. Members of TELO, PLOTE, EPRLF as well as EPDP were made part of the overall government security strategy. They operated in large groups. Some paramilitary units were deployed in the Jaffna islands as well. And these groups were represented in Parliament. They enjoyed privileged status not only in the northern and eastern regions but Colombo as well. The government allowed them to carry weapons in the city and its suburbs.
These groups operated armed units in Colombo. The writer had the opportunity to visit EPDP and PLOTE safe houses in Colombo and its suburbs soon after they reached an understanding with President Ranasinghe Premadasa. Overnight at the behest of President Premadasa, the Election Department granted these Tamil groups political recognition. In other words, armed groups were made political parties. The Premadasa government accepted their right to carry weapons while being represented in Parliament.
It would be pertinent to mention that thousands of Tamil paramilitary personnel served the government during that period. There had been many confrontations between them and the LTTE over the years and the latter sought to eliminate key paramilitary personnel. Let me remind you of the circumstances, the EPRLF’s number 02 Thambirajah Subathiran alias Robert was sniped to death in June 2003. Robert was engaged in routine morning exercises on the top floor of the two-storeyed EPRLF office, on the hospital road, Jaffna, when an LTTE sniper took him out from the nearby Vembadi Girls’ high school. The operation of the Norway managed Ceasefire Agreement (CFA) made no difference as the LTTE removed Robert who led the party here in the absence of leader Varatharaja Perumal, the first and the only Chief Minister of the North-Eastern Province.
In terms of the CFA that had been signed by Premier Ranil Wickremesinghe and LTTE leader Velupillai Prabhakaran, in Feb. 2002, the government agreed to disarm all paramilitary personnel. Many wouldn’t remember now that during Premadasa’s honeymoon with the LTTE, the Army facilitated the LTTE onslaught on paramilitary groups in selected areas.
Muthaliff’s role
During the ‘Balaya’ discussion, the contentious issue of who shot JVP leader Rohana Wijeweera came up. Nandana Gunatilleke, who contested the 1999 Dec. presidential election. as the JVP candidate, pointing to an article carried in the party organ that dealt with Wijeweera’s assassination said that he wrongly named Gaffoor as one of the persons who shot their leader whereas the actual shooter was Muthaliff. The headline named Thoradeniya and Gaffoor as the perpetrators.
Declaring that he personally wrote that article on the basis of information provided by Indrananda de Silva, Gunatilleke named Asoka Thoradeniya and Tuan Nizam Muthaliff of the Army as the perpetrators of the crime. Thoradeniya served as Sri Lanka’s High Commissioner in the Maldives during the Yahapalana administration, while Muthaliff was killed by the LTTE in Colombo in late May 2005. The shooting took place at Polhengoda junction, Narahenpita. Muthaliff was on his way from Manning town, Narahenpita, to the Kotelawala Defence University.
The programme was told that the JVP had over the years developed close relationship with Thoradeniya while Indrananda de Silva accused Dr. Wasantha Bandara of duplicity regarding Muthaliff. How could you recognize Muthaliff, slain by the LTTE, as a war hero as he was actually one of the persons who shot Rohana Wijeweera, the latter asked.
At the time of his assassination, Muthaliff served as the Commanding Officer, 1 st Regiment Sri Lanka Military Intelligence Corps. The then parliamentarian Wimal Weerawansa was among those who paid last respects to Maj. Muthaliff.
At the time of Rohana Wijeweera’s arrest, Muthaliff served as Lieutenant while Thoradeniya was a Major. Indrananda de Silva strongly stressed that atrocities perpetrated by the police and military in the South or in the northern and eastern regions must be dealt with regardless of whom they were conducting operations against. The former JVPer recalled the Army massacre in the east in retaliation for the landmine blast that claimed the lives of Northern Commander Maj. Gen. Denzil Kobbekaduwa and a group of senior officers, including Brigadier Wijaya Wimalaratne, in early Aug. 1990 in Kayts.
Dr. Wasantha Bandara warned of the Western powers taking advantage of what he called false narrative to push for a Truth and Reconciliation Commission.
It would be pertinent to mention that the LTTE also used the underworld as well as some corrupt Army personnel in planning high profile assassinations. Investigations into the assassination of Muthaliff, as well as Maj. Gen. Parami Kulatunga, killed in a suicide attack at Pannipitiya, in June 2006, revealed the direct involvement of military personnel with the LTTE.
Indrananda de Silva disclosed that soon after Anura Kumara Dissanayake won the presidential election last September, the FSP, in writing, requested the JVP leader to inquire into killings during that period, including that of Rohana Wijeweera. The FSPer alleged that President Dissanayake refrained from even acknowledging their letter. Indrananda de Silva emphasized that Al Jazeera never disclosed anything new as regards Batalanda as he exposed the truth years ago. The former JVPer ridiculed the ruling party tabling the Batalanda Commission report in the wake of Wickremesinghe’s Al Jazeera interview whereas the matter was in the public domain for quite some time.
Indrananda de Silva and Nandana Gunatilleke exchanged words over the latter’s declaration that the JVP, too, was subjected to investigation for violence unleashed during the 1987-1990 period. While the FSPer repeatedly declared that those who carried out directives issued by the party were arrested and in some cases killed, Nandana Gunatilleke took up the position that the party should be held accountable for crimes perpetrated during that period.
The interviewer posed Nandana Gunatilleke the question whether he was betraying his former comrades after joining the UNP. Nandana Gunatilleke shot back that he joined the UNP in 2015 whereas the JVP joined UNP as far back as 2009 to promote retired Army Chef Sarath Fonseka’s presidential ambition even though he wiped out the JVP presence in Trincomalee region during the second insurgency.
JVP’s accountability
Nandana Gunatilleke is adamant that the party should accept responsibility for the killings carried out at that time. The former JVPer declared that Vijaya Kumaratunga (Feb. 16, 1988), first Vice Chancellor of the Colombo University (March 08, 1989) Dr. Stanley Wijesundera, Ven. Kotikawatte Saddhatissa thera (Aug. 03, 1988) and Chairperson of the State Pharmaceutical Corporation Gladys Jayewardene (Sept. 12, 1989) were among those assassinated by the JVP. SPC Chairperson was killed for importing medicine from India, the former Marxist aligned with the UNP said, while actor-turned-politician Kumaratunga’s assassination was attributed to his dealings with President J.R. Jayewardene.
According to Nandana Gunatilleke, except for a few killings such as General Secretaries of the UNP Harsha Abeywickrema (Dec 23, 1987) and Nandalal Fernando (May 20, 1988), the vast majority of others were ordinary people like grama sevakas killed on mere accusation of being informants. The deaths were ordered on the basis of hearsay, Nandana Gunatilleke said, much to the embarrassment of others who represented the interest of the JVP at that time.
One quite extraordinary moment during the ‘Balaya’ programme was when Nandana Gunatilleke revealed their (JVP’s) direct contact with the Indian High Commission at a time the JVP publicly took an extremely anti-Indian stance. In fact, the JVP propagated a strong anti-Indian line during the insurgency. Turning towards Dr. Wasantha Bandara, Gunatilleke disclosed that both of them had been part of the dialogue with the Indian High Commission.
It reminds me of the late Somawansa Amarasinghe’s first public address delivered at a JVP rally in late Nov. 2001 after returning home from 12 years of self-imposed exile. Of the top JVP leadership, Somawansa Amarasinghe, who had been married to a close relative of powerful UNP Minister Sirisena Cooray, was the only one to survive combined police/military/paramilitary operations.
Amarasinghe didn’t mince his words when he declared at a Kalutara rally that his life was saved by Indian Premier V.P. Singh. Soft spoken Amarasinghe profusely thanked India for saving his life. Unfortunately, those who discuss issues at hand conveniently forget crucial information in the public domain. Such lapses can be both deliberate and due to negligence.
By Shamindra Ferdinando
Midweek Review
Independent Monitor

You may think sloth comes very easy,
To your kingly monitor of the shrinking marsh,
As he lies basking smugly in the morn sun,
But he is organized and alert all the while,
As he awaits his prey with patience infinite,
Free of malice, a professional of a kind,
His cumbrous body not slowing his sprite….
But note, he’s no conspirator spitting guile,
And doesn’t turn nasty unless crossed,
Nor by vengeful plans is he constantly dogged,
Unlike those animals of a more rational kind,
Whose ways have left behind a state so sorry.
By Lynn Ockersz
Midweek Review
Rajiva on Batalanda controversy, govt.’s failure in Geneva and other matters

Former President Ranil Wickremesinghe’s recent interview with Mehdi Hasan on Al Jazeera’s ‘Head-to-Head’ series has caused controversy, both in and outside Parliament, over the role played by Wickremesinghe in the counter-insurgency campaign in the late’80s.
The National People’s Power (NPP) seeking to exploit the developing story to its advantage has ended up with egg on its face as the ruling party couldn’t disassociate from the violent past of the JVP. The debate on the damning Presidential Commission report on Batalanda, on April 10, will remind the country of the atrocities perpetrated not only by the UNP, but as well as by the JVP.
The Island sought the views of former outspoken parliamentarian and one-time head of the Government Secretariat for Coordinating the Peace Process (SCOPP) Prof. Rajiva Wijesinha on a range of issues, with the focus on Batalanda and the failure on the part of the war-winning country to counter unsubstantiated war crimes accusations.
Q:
The former President and UNP leader Ranil Wickremesinghe’s interview with Al Jazeera exposed the pathetic failure on the part of Sri Lanka to address war crimes accusations and accountability issues. In the face of aggressive interviewer Mehdi Hasan on ‘Head-to-Head,’ Wickremesinghe struggled pathetically to counter unsubstantiated accusations. Six-time Premier Wickremesinghe who also served as President (July 2022-Sept. 2024) seemed incapable of defending the war-winning armed forces. However, the situation wouldn’t have deteriorated to such an extent if President Mahinda Rajapaksa, who gave resolute political leadership during that war, ensured a proper defence of our armed forces in its aftermath as well-choreographed LTTE supporters were well in place, with Western backing, to distort and tarnish that victory completely. As wartime Secretary General of the Government’s Secretariat for Coordinating the Peace Process (since June 2007 till the successful conclusion of the war) and Secretary to the Ministry of Disaster Management and Human Rights (since Jun 2008) what do you think of Wickremesinghe’s performance?
A:
It made him look very foolish, but this is not surprising since he has no proper answers for most of the questions put to him. Least surprising was his performance with regard to the forces, since for years he was part of the assault forces on the successful Army, and expecting him to defend them is like asking a fox to stand guard on chickens.
Q:
In spite of trying to overwhelm Wickremesinghe before a definitely pro-LTTE audience at London’s Conway Hall, Hasan further exposed the hatchet job he was doing by never referring to the fact that the UNP leader, in his capacity as the Yahapalana Premier, co-sponsored the treacherous Geneva Resolution in Oc., 2015, against one’s own victorious armed forces. Hasan, Wickremesinghe and three panelists, namely Frances Harrison, former BBC-Sri Lanka correspondent, Director of International Truth and Justice Project and author of ‘Still Counting the Dead: Survivors of Sri Lanka’s Hidden War,’ Dr. Madura Rasaratnam, Executive Director of PEARL (People for Equality and Relief in Lanka) and former UK and EU MP and Wickremesinghe’s presidential envoy, Niranjan Joseph de Silva Deva Aditya, never even once referred to India’s accountability during the programme recorded in late February but released in March. As a UPFA MP (2010-2015) in addition to have served as Peace Secretariat Chief and Secretary to the Disaster Management and Human Rights Ministry, could we discuss the issues at hand leaving India out?
A:
I would not call the interview a hatchet job since Hasan was basically concerned about Wickremesinghe’s woeful record with regard to human rights. In raising his despicable conduct under Jayewardene, Hasan clearly saw continuity, and Wickremesinghe laid himself open to this in that he nailed his colours to the Rajapaksa mast in order to become President, thus making it impossible for him to revert to his previous stance. Sadly, given how incompetent both Wickremesinghe and Rajapaksa were about defending the forces, one cannot expect foreigners to distinguish between them.
Q:
You are one of the many UPFA MPs who backed Maithripala Sirisena’s candidature at the 2015 presidential election. The Sirisena-Wickremesinghe duo perpetrated the despicable act of backing the Geneva Resolution against our armed forces and they should be held responsible for that. Having thrown your weight behind the campaign to defeat Mahinda Rajapaksa’s bid to secure a third term, did you feel betrayed by the Geneva Resolution? And if so, what should have the Yahapalana administration done?
A:
By 2014, given the total failure of the Rajapaksas to deal firmly with critiques of our forces, resolutions against us had started and were getting stronger every year. Mahinda Rajapaksa laid us open by sacking Dayan Jayatilleke who had built up a large majority to support our victory against the Tigers, and appointed someone who intrigued with the Americans. He failed to fulfil his commitments with regard to reforms and reconciliation, and allowed for wholesale plundering, so that I have no regrets about working against him at the 2015 election. But I did not expect Wickremesinghe and his cohorts to plunder, too, and ignore the Sirisena manifesto, which is why I parted company with the Yahapalanaya administration, within a couple of months.
I had expected a Sirisena administration to pursue some of the policies associated with the SLFP, but he was a fool and his mentor Chandrika was concerned only with revenge on the Rajapaksas. You cannot talk about betrayal when there was no faith in the first place. But I also blame the Rajapaksas for messing up the August election by attacking Sirisena and driving him further into Ranil’s arms, so that he was a pawn in his hands.
Q:
Have you advised President Mahinda Rajapaksa’s government how to counter unsubstantiated war crimes allegations propagated by various interested parties, particularly the UN, on the basis of the Panel of Experts (PoE) report released in March 2011? Did the government accept your suggestions/recommendations?
A:

Prof. Rajiva Wijesinha
I kept trying, but Mahinda was not interested at all, and had no idea about how to conduct international relations. Sadly, his Foreign Minister was hanging around behind Namal, and proved incapable of independent thought, in his anxiety to gain further promotion. And given that I was about the only person the international community, that was not prejudiced, took seriously – I refer to the ICRC and the Japanese with whom I continued to work, and, indeed, the Americans, until the Ambassador was bullied by her doctrinaire political affairs officer into active undermining of the Rajapaksas – there was much jealousy, so I was shut out from any influence.
But even the admirable effort, headed by Godfrey Gunatilleke, was not properly used. Mahinda Rajapaksa seemed to me more concerned with providing joy rides for people rather than serious counter measures, and representation in Geneva turned into a joke, with him even undermining Tamara Kunanayagam, who, when he supported her, scored a significant victory against the Americans, in September 2011. The Ambassador, who had been intriguing with her predecessor, then told her they would get us in March, and with a little help from their friends here, they succeeded.
Q:
As the writer pointed out in his comment on Wickremesinghe’s controversial Al Jazeera interview, the former Commander-in-Chief failed to mention critically important matters that could have countered Hasan’ s line of questioning meant to humiliate Sri Lanka?
A:
How could you have expected that, since his primary concern has always been himself, not the country, let alone the armed forces?
Q:
Do you agree that Western powers and an influential section of the international media cannot stomach Sri Lanka’s triumph over separatist Tamil terrorism?
A:
There was opposition to our victory from the start, but this was strengthened by the failure to move on reconciliation, creating the impression that the victory against the Tigers was seen by the government as a victory against Tamils. The failure of the Foreign Ministry to work with journalists was lamentable, and the few exceptions – for instance the admirable Vadivel Krishnamoorthy in Chennai or Sashikala Premawardhane in Canberra – received no support at all from the Ministry establishment.
Q:
A couple of months after the 2019 presidential election, Gotabaya Rajapaksa declared his intention to withdraw from the Geneva process. On behalf of Sri Lanka that announcement was made in Geneva by the then Foreign Minister Dinesh Gunawardena, who became the Premier during Wickremesinghe’s tenure as the President. That declaration was meant to hoodwink the Sinhala community and didn’t alter the Geneva process and even today the project is continuing. As a person who had been closely involved in the overall government response to terrorism and related matters, how do you view the measures taken during Gotabaya Rajapaksa’s short presidency to counter Geneva?
A:
What measures? I am reminded of the idiocy of the responses to the Darusman report by Basil and Gotabaya Rajapaksa, who went on ego trips and produced unreadable volumes trying to get credit for themselves as to issues of little interest to the world. They were planned in response to Darusman, but when I told Gotabaya that his effort was just a narrative of action, he said that responding to Darusman was not his intention. When I said that was necessary, he told me he had asked Chief-of-Staff Roshan Goonetilleke to do that, but Roshan said he had not been asked and had not been given any resources.
My own two short booklets which took the Darusman allegations to pieces were completely ignored by the Foreign Ministry.
Q:
Against the backdrop of the Geneva betrayal in 2015 that involved the late Minister Mangala Samaraweera, how do you view President Wickremesinghe’s response to the Geneva threat?
A: Wickremesinghe did not see Geneva as a threat at all. Who exactly is to blame for the hardening of the resolution, after our Ambassador’s efforts to moderate it, will require a straightforward narrative from the Ambassador, Ravinatha Ariyasinha, who felt badly let down by his superiors. Geneva should not be seen as a threat, since as we have seen follow through is minimal, but we should rather see it as an opportunity to put our own house in order.
Q:
President Anura Kumara Dissanayake recently questioned both the loyalty and professionalism of our armed forces credited with defeating Northern and Southern terrorism. There hadn’t been a previous occasion, a President or a Premier, under any circumstances, questioned the armed forces’ loyalty or professionalism. We cannot also forget the fact that President Dissanayake is the leader of the once proscribed JVP responsible for death and destruction during 1971 and 1987-1990 terror campaigns. Let us know of your opinion on President Dissanayake’s contentious comments on the armed forces?
A: I do not see them as contentious, I think what is seen as generalizations was critiques of elements in the forces. There have been problems, as we saw from the very different approach of Sarath Fonseka and Daya Ratnayake, with regard to civilian casualties, the latter having planned a campaign in the East which led to hardly any civilian deaths. But having monitored every day, while I headed the Peace Secretariat, all allegations, and obtained explanations of what happened from the forces, I could have proved that they were more disciplined than other forces in similar circumstances.
The violence of the JVP and the LTTE and other such groups was met with violence, but the forces observed some rules which I believe the police, much more ruthlessly politicized by Jayewardene, failed to do. The difference in behaviour between the squads led for instance by Gamini Hettiarachchi and Ronnie Goonesinghe makes this clear.
Q:
Mehdi Hasan also strenuously questioned Wickremesinghe on his role in the UNP’s counter-terror campaign during the 1987-1990 period. The British-American journalists of Indian origins attacked Wickremesinghe over the Batalanda Commission report that had dealt with extra-judicial operations carried out by police, acting on the political leadership given by Wickremesinghe. What is your position?
A:
Wickremesinghe’s use of thugs’ right through his political career is well known. I still recall my disappointment, having thought better of him, when a senior member of the UNP, who disapproved thoroughly of what Jayewardene had done to his party, told me that Wickremesinghe was not honest because he used thugs. In ‘My Fair Lady,’ the heroine talks about someone to whom gin was mother’s milk, and for Wickremesinghe violence is mother’s milk, as can be seen by the horrors he associated with.
The latest revelations about Deshabandu Tennakoon, whom he appointed IGP despite his record, makes clear his approval for extra-judicial operations.
Q:
Finally, will you explain how to counter war crimes accusations as well as allegations with regard to the counter-terror campaign in the’80s?
A:
I do not think it is possible to counter allegations about the counter-terror campaign of the eighties, since many of those allegations, starting with the Welikada Prison massacre, which Wickremesinghe’s father admitted to me the government had engendered, are quite accurate. And I should stress that the worst excesses, such as the torture and murder of Wijeyedasa Liyanaarachchi, happened under Jayewardene, since there is a tendency amongst the elite to blame Premadasa. He, to give him his due, was genuine about a ceasefire, which the JVP ignored, foolishly in my view though they may have had doubts about Ranjan Wijeratne’s bona fides.
With regard to war crimes accusations, I have shown how, in my ‘Hard Talk’ interview, which you failed to mention in describing Wickeremesinghe’s failure to respond coherently to Hasan. The speeches Dayan Jayatilleke and I made in Geneva make clear what needed and still needs to be done, but clear sighted arguments based on a moral perspective that is more focused than the meanderings, and the frequent hypocrisy, of critics will not now be easy for the country to furnish.
By Shamindra Ferdinando
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