News
Gunaruwan: ACSA, SOFA, MCC could be part of US Indo-Pacific strategy
US leaves Lanka out of MCC
By Shamindra Ferdinando
The much-touted Millennium Challenge Corporation Compact (MCCC) would have undermined Sri Lanka’s status as a sovereign country, Prof. Lalithasiri Gunaruwan said yesterday (17).
Prof. Gunaruwan, an economist, who headed a four-member committee that examined the controversial agreement was responding to the US decision to terminate the offer of USD 480 mn (Rs 89 bn) development assistance against the backdrop of Sri Lanka declining the grant.
The Colombo University don whose four-member committee strongly objected to the agreement as it is, told The Island that the compact posed a threat to Sri Lanka.
He said that he wasn’t aware of negotiations between the two parties on the basis of their report handed over to President Gotabaya Rajapaksa on Feb 17, 2020 at the Presidential Secretariat.
The team consisted of Prof. Gunaruwan (Chairman), one-time Transport Secretary Dr. D. S. Jayaweera, Justice Nihal Jayawardena, PC, and architect Nalaka Jayaweera.
Responding to another query, Prof. Gunaruwan said his committee had recommended remedial measures following an in-depth study of the agreement. He acknowledged that the committee couldn’t ascertain the position taken by the Attorney General in that regard.
The Attorney General’s position has not been made public yet.
In response to The Island query as regards Sri Lanka being denied funding, the US embassy has sent us the following statement: “On December 15, the Millennium Challenge Corporation (MCC) board decided to discontinue the proposed Rs. 89 billion MCC development assistance grant to Sri Lanka due to lack of partner country engagement. The Rs. 89 billion approved for Sri Lanka will be made available to other eligible partner countries in need of grant funding to pursue their economic development priorities, reduce poverty, and grow their economies.
“Country ownership, transparency, and accountability for grant results are fundamental to MCC’s development model. MCC has successfully partnered with nearly 30 countries worldwide on 38 grant agreements, totaling nearly $13.5 billion. These grants have lifted millions of people from poverty by catalyzing local and domestic investment.
“The United States remains a friend and partner to Sri Lanka and will continue to assist Sri Lanka in responding to COVID and building its economy.”
Subsequently, The Island sought an explanation from the US mission with regard to the previous US embassy announcements pertaining to the funding made available to Sri Lanka to the tune of USD 10 mn on two occasions.
The US embassy spokesperson said the MCC grant monies had never been transferred to or spent by Sri Lanka in terms of the then proposed USD 480 mn funding. The official said that funds amounting to USD 10 mn for what the embassy called preparatory activities had been cancelled. The official said: “The government of Sri Lanka first submitted a proposal for MCC grant funding under former President Mahinda Rajapaksa in 2005. All activities in the most recent proposed grant were requested by Sri Lankan Government line ministries and departments, and the programme was negotiated in good faith after extensive consultations with Government officials, the private sector, and civil society. The MCC grant would have been the largest in Sri Lanka’s history and would have benefited more than 11 million Sri Lankans.”
During the previous administration, the US announced the disbursement of USD 7.4 mn (Rs. 1.1 bn) on July 27, 2017 and USD 2.6 mn (Rs.413) in June 13, 2018 grants for preparatory work namely (i) to develop a compact, including identification and analyzing of specific projects and (ii) to finalize compact development. The US embassy stated funds allocated to the tune of USD 10 mn were in addition to the total MCC compact funding amount.
Prof. Gunaruwan’s report has said that in spite of the US Compact being categorised as a development project, it could pose a threat along with ACSA (Acquisition and Cross Servicing Agreement) and SOFA (Status of Forces Agreement). The UNP-led government finalised ACSA in the first week of August 2017. President Maithripala Sirisena, in his capacity as the Defence Minister authorised the signing of the agreement. The US agreements dominated both 2019 presidential and 2020 parliamentary polls. The report says the three agreements could be part of the overall US Indo-Pacific strategy.
Well-informed sources said that the four-member committee had found fault with a decision to allow all procurement and related matters to take place. That decision clashed with a specific provision in the 19th Amendment, sources said. However, the 20th Amendment enacted by the incumbent government had done away with that provision, sources said.
News
Plans to open underutilised state land for new investment opportunities
A discussion between President Anura Kumara Dissanayake and the Circular Revision Committee appointed to review and update circulars issued under the State Lands Ordinance and the Land Development Ordinance was held on Tuesday (16) afternoon at the Presidential Secretariat. The Committee has been mandated to recommend to the Cabinet the cancellation of out-dated circulars, the issuance of new circulars, and the revision of existing circulars to ensure alignment with current requirements.
The Committee is chaired by the Secretary to the Ministry of Agriculture, Livestock, Lands and Irrigation, D.P. Wickramasinghe. Its other members include the Senior Additional Secretary to the President (Constitutional and Statutory Affairs Division), Legal Adviser to the Presidential Secretariat, an Additional Solicitor General from the Attorney General’s Department, the Additional Secretary (Lands) of the Ministry of Agriculture, Livestock, Lands and Irrigation, the Additional Director General of the National Budget Department, the Western Province Land Commissioner, the Divisional Secretary of Nuwaragampalatha East, the Deputy Chief Valuer of the Valuation Department and the Director (Lands) of the Mahaweli Authority.
The Commissioner General of Lands serves as the Convener of the Committee.
The Committee’s responsibilities include establishing a reliable, uniform and regularised system of land taxation within the existing legal framework, ensuring state revenue optimisation without prejudice to lessees. This includes reviewing annual lease rentals charged on long-term leases and grants, aligning related circulars with current requirements, and amending or formulating new provisions and directives where necessary.
During the meeting, detailed discussions were held on the proposals submitted by the expert committee in relation to the revision of these circulars.
The President emphasised that a new, time-appropriate policy should be formulated to address the underutilisation of State lands and to ensure their more efficient use.
Deputy Minister of Lands and Irrigation Aravinda Senarath, Secretary to the President Dr. Nandika Sanath Kumanayake, Legal Adviser to the President, Senior Attorney-at-Law J.M. Wijebandara, Secretary to the Ministry of Agriculture, Livestock, Lands and Irrigation D.P. Wickramasinghe, Additional Solicitor General of the Attorney General’s Department, President’s Counsel Ravindra Pathiranage, Commissioner General of Lands Chandana Ranaweraarachchi, Director General (Institutional Affairs), Ministry of Finance, Planning and Economic Development J.G.L.S. Jayawardena, Additional Director General (National Budget Department) D.A. Asantha Gunasekara, and Commissioner of Lands (Leasing Division) P.K.C. Nilani Mahindaganamage, together with members of the Committee, were also present.
Senior officials from the Ministry of Finance and the Ministry of Agriculture, Livestock, Lands and Irrigation also attended the meeting.
(PMD)
Business
National Export Development Plan (2026–2030) presented to the President
Marking an important milestone in Sri Lanka’s economic development, the National Export Development Plan (NEDP) for the period 2026–2030 was presented to President Anura Kumara Dissanayake on Tuesday morning (16) at the Presidential Secretariat.
The 2026–2030 National Export Development Plan (NEDP) is a key national programme formulated in line with the Government’s policy direction under the 2025 Budget. It aims to strengthen the country’s export sector and achieve export-led sustainable economic growth.
The strategic plan has been developed under the guidance of the Ministry of Industry and Entrepreneurship Development and the leadership of the Sri Lanka Export Development Board (EDB), with technical assistance provided through the Asian Development Bank’s (ADB) Policy-Based Lending (PBL) programme. It is the result of an extensive consultative process carried out in close collaboration with key government institutions, private sector stakeholders, and development partners.
The proposal submitted by the Minister of Industry and Entrepreneurship Development to recognise the “Sri Lanka National Export Development Plan 2026–2030” as the official strategic framework for export development and promotion in Sri Lanka was approved by the Cabinet of Ministers on 4 May 2026. The Plan reflects a broad consensus among government institutions, private sector experts, and international development partners.
In line with the national vision of “A Thriving Nation – A Beautiful Life”, the Plan has been formulated to enhance Sri Lanka’s export competitiveness and achieve an export revenue target of USD 36 billion by 2030.
The core vision of the Plan is to transform Sri Lanka into a competitive logistics and knowledge-based export hub serving regional and global markets. The strategy is based on two key interconnected pillars: “horizontals” and “verticals”, which together provide the foundation for strengthening export competitiveness, diversification, and sustainable growth.
The horizontal enablers, which support the growth and expansion of all priority sectors, include logistics and integrated hub operations, trade facilitation, trade finance and reforms in the business and investment environment, trade promotion and market linkages, quality management, standards, environmental, social and governance (ESG) capacity development, as well as entrepreneurship and innovation.
The Plan also identifies eight priority export sectors to enhance export diversification and value addition, and to position Sri Lanka more competitively in global markets. These include automotive components, mineral-based industries, rubber-based industries, maritime industries (including boat and shipbuilding), spices and concentrates, digital products and services, electrical and electronic equipment, and processed food and beverages.
The preparation of the Plan involved contributions from over 300 stakeholders, including government institutions, the private sector, civil society organisations and international development partners. Broad consensus was achieved through consultations held from October to December 2025 and workshops conducted in January 2026.
The Government expects that, with implementation supported by strong governance and monitoring framework, the Plan will elevate local products to international standards and ensure long-term economic stability and growth. It is further anticipated that the National Export Development Plan will serve as a key driver of Sri Lanka’s economic progress in the years ahead.
Minister of Labour and Deputy Minister of Finance and Planning Dr. Anil Jayantha Fernando, Minister of Industry and Entrepreneurship Development Sunil Handunnetti, Senior Additional Secretary to the President and Secretary to the Ministry of Energy Russell Aponso, Secretary to the Ministry of Industry and Entrepreneurship Development Thilaka Jayasundara, and Chairman of the Sri Lanka Export Development Board Mangala Wijesinghe were also present at the event.
[PMD]
News
Complaint of custodial deaths and torture submitted to UN
The Committee for Protecting Rights of Prisoners (CPRP) has complained to the UN regarding custodial deaths.
Executive Director of the Committee, Attorney-at-Law Senaka Perera told The Island that they had submitted written submissions to the visiting UN Subcommittee on Prevention of Torture (SPT) on Monday (15). “We are confident that they’ll take up the issues at hand with the government and take tangible measures to improve the conditions in prisons and detention facilities,” Perera said.
The SPT is here from 15 to 24 June. The visiting delegation consists of Aisha Shujune Muhammad, Head of Delegation (Maldives), Jakub Julian Czepek (Poland), Nika Kvaratskhelia (Georgia), Anica Tomsic (Croatia) and two human rights officers from the Office of the High Commissioner for Human Rights.
Claiming that there had been 184 prison deaths in 2024, the Committee asserted that though there was a drop in the number of cases, the deaths caused by underlying health complications and systemic issues weren’t available at the moment.
According to a copy of the submissions made to the SPT, received by The Island, there had been seven custodial deaths this year alone, reported from various parts of the country.
The Committee took a very critical position, while Foreign Minister Vijitha Herath assured the visiting delegation that the government didn’t tolerate torture at all.
The Ministry statement Monday night quoted Herath as having described the government response as zero tolerance policy.
The Committee for Protecting Rights of Prisoners also dealt with several other contentious issues, including special treatment granted to those with political connections and privileged backgrounds. Perera alleged that in spite of a change of government, in 2024 September, the much anticipated improvements failed to materialise and the continuing custodial deaths highlighted the crisis in the prisons and detention facilities.
According to the Committee, the situation was so bad and further deteriorating in overcrowded prisons, the national overcrowding rate has reached an unsustainable 286.6%, with some facilities, like the Vavuniya Remand Prison, exceeding capacity by 300%.
A significant portion of this population (65.4%) consists of persons not convicted awaiting trial, the Committee said, urging the SPT to look into the pathetic situation.
The Committee also complained of torture and ill-treatment at some detention facilities. There had been cases of lawyers, visiting detention centres at Welisara and Boossa, been subjected to degrading and humiliating searches, including forced removal of clothing.
The Committee also brought to the SPT’s notice how the Supreme Court, on 14 December, 2023, held the former Inspector General of Police (IGP), Deshabandu Thennakoon, personally responsible for torture. The failure on the part of prison authorities to grant inmates a fair hearing during internal investigations, too, has been raised by the Committee.
Among the other issues that had been raised were enforced disappearances, health and medical conditions, food, water and sanitation, corporal punishments and the operation of detention facilities within military bases.
Referring to the enforced disappearance of Gonapinuwala Kapila Kumara de Silva on 27 March, 2024, the Committee alleged that the Attorney General failed to take action against the perpetrators, believed to be members of the Special Task Force (STF)
The Committee alleged that in spite of them submitting formal complaints and an urgent letter to the Attorney General demanding prosecution under the International Convention for the Protection of All Persons from Enforced Disappearances Act, No. 5 of 2018, the AG took no meaningful action.
Consequently, CPRP filed a Writ of Mandamus petition in the Court of Appeal (CA/WRIT/185/26) against the Attorney General and other officials, seeking judicial intervention to compel investigation and prosecution. The case remains pending
by Shamindra Ferdinando
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