Connect with us

News

Harsha flays govt. over plan to pass coal, Treasury losses to public

Published

on

Harsha de Silva

Chairman of the Public Finance Committee Dr. Harsha de Silva, MP, yesterday (31) said that the National People’s Power (NPP) government was going ahead with a controversial move to pass on the massive losses caused by the coal scam to the public. The government also intended to recover USD 2.5 (approximately Rs 800 mn) lost by the Treasury from the people by introducing an amendment to the Budget, the Opposition lawmaker alleged.

Dr de Silva said that the government had been compelled to increase the supply of diesel for the oil-fired power plants to meet the Norochcholai generation shortfall due to the use of substandard coal.

Responding to The Island queries, the former State Minister said that regardless of repeated assurances that electricity consumers wouldn’t be burdened for the lapse on their part, the government, in writing, has assured the International Monetary Fund (IMF) to recover the losses from the public. This came to light after the IMF released the Letter of Intent submitted by the government following the completion of the combined Fifth and Sixth Reviews under the Extended Fund Facility (EFF) programme to receive USD 695 mn.

Commenting on the specific assurance as regards the upward revision of fuel prices and electricity tariffs, MP de Silva pointed out the government’s assurance of its commitment to cost-recovery pricing for fuel and electricity meant that subsidies provided to ease the burden on households and businesses would remain within budgeted limits and be phased out by the end of September 2026.

Welcoming the USD 695 mn IMF loan, MP de Silva said that in terms of the agreement between the government and the IMF, the relief would end once Rs 100 bn allocated to provide relief was spent on subsidies on fuel (Rs 57 bn), electricity (Rs 15 bn) and the rest on ‘Aswesuma’ social welfare scheme and fertiliser.

MP de Silva said that the crisis should be examined taking into consideration that Sri Lanka paid very high prices to procure fuel in the wake of the continuing turmoil in West Asia. He noted that having perpetrated a coal scam the government could not under any circumstances absolve itself of responsibility for the skyrocketing electricity tariffs.

Commenting on the Sri Lanka-IMF agreement, lawmaker de Silva lambasted the government for utterly chaotic and poor management of the economy. Severe criticism was directed at the government over the rapid depreciation of the rupee against the USD and the NPP’s pathetic performance. Amidst speculation that De Silva may switch allegiance to the NPP, the MP also posted a video in which he flayed the government alleging the NPP couldn’t take forward measures taken by former President Ranil Wickremesinghe.

MP de Silva explained how the people would end paying for the theft of USD 2.5 by way of an amendment to the Budget. The MP told The Island that assurance meant that the government acknowledged that there was no hope of recovering USD 2.5 mn though they talked of investigations and progress being made. De Silva called for a combined Opposition effort to pressure the government to act responsibly in the face of growing challenges.

The government couldn’t lie as the relevant IMF report and the government letter of intent were in the public domain, Dr de Silva said.

by Shamindra Ferdinando



News

Removing monk’s robes matter for Sangha to decide: Mahanayake Theras

Published

on

Ven. Gnanasara

The Mahanayaka Theras of all Nikayas have protested against Bodu Bala Sena (BBS) General Secretary Ven. Galagodaaththe Gnanasara Thera, who is serving a prison sentence for contempt of court, being produced before court in civilian attire.

In a letter to the Commissioner General of Prisons, the Mahanayaka Theras have said they were surprised and concerned by the decision to remove the monk’s robes.

The letter has been signed by Most Ven. Thibbotuwawe Sri Siddhartha Sumangala Thera of the Malwatu Chapter, Most Ven. Warakagoda Sri Gnanarathana Thera of the Asgiri Chapter, Most Ven. Karagoda-Uyangoda Maithri Murthi Thera of the Amarapura Maha Nikaya and Most Ven. Makulawe Sri Wimala Thera of the Ramanna Maha Nikaya.

The Mahanayaka Theras have said they respect the Constitution and the judicial process, but maintained that removing a monk’s robes or ending his status as a member of the Buddhist Order is a matter that should be decided by the Maha Sangha.

They have said the relevant Sangha Council has not determined that Ven. Gnanasara Thera committed a Parajika offence or any other offence warranting his removal from the Buddhist Order.

The Mahanayaka Theras have also referred to Regulation 550 of the Prison Standing Orders, which they say stipulates that convicted prisoners should not be taken to court in prison uniform and should be allowed to wear the type of clothing they normally wore before their conviction. In the case of a Buddhist monk, they have said, this means his monastic robes.

They also referred to the United Nations Standard Minimum Rules for the Treatment of Prisoners, which provide for prisoners taken outside prison to be allowed to wear their own clothing or other unobtrusive clothing.

The Mahanayaka Theras have requested the Commissioner General of Prisons to allow Ven. Gnanasara Thera to wear his robes when appearing in court and to maintain his status as a monk while he remains in prison.

Prisons authorities have said that the clothing decision was made under prison regulations, and the Prisons Department has stated that prisoners serving sentences of more than three years are required to wear prison-issued clothing when produced before court.

Continue Reading

News

NDB fraud Rs 60mn more than reported

Published

on

The Committee on Public Finance has said that the actual losses suffered by the NDB bank are much more than what was initially reported. When compared with the initial disclosure made by NDB on 6 April 2026, the reported amount of the fraud had increased by Rs. 0.4 billion, from Rs. 13.2 billion to Rs. 13.6 billion, the committee said.

When compared with the amount disclosed by NDB on 26 June 2026, based on the interim report dated 22 June 2026, the additional amount of fraud is Rs. 60 million.

The has committee issued the following statement: The Committee on Public Finance recently summoned officials of the Central Bank of Sri Lanka to Parliament to inquire into the financial irregularities identified at NDB Bank and the final audit report relating to the matter.

The Committee meeting, chaired by Member of Parliament Dr. Harsha de Silva, discussed irregularities identified in NDB Bank’s financial statements, shortcomings in the audit process, and the relevant audit reports.

The meeting was attended by Deputy Ministers Chathuranga Abeysinghe, Dr. Kaushalya Ariyaratne, and Nishantha Jayaweera, as well as Members of Parliament Attorney-at-Law Rauff Hakeem, Ravi Karunanayake, Ajith Agalakada, Nimal Palihena, Wijesiri Basnayake, M.K.M. Aslam, Champika Hettiarachchi, and Attorney-at-Law Lakmali Hemachandra.

The Committee also focused on the findings of the investigation conducted by the Sri Lanka Accounting and Auditing Standards Monitoring Board (SLAAMB), as well as the findings revealed through the investigation conducted by Deloitte Touche Tohmatsu India LLP. In particular, the Committee inquired into the failure of the external auditors to identify irregularities in NDB Bank’s financial statements.

The accountability of senior management with regard to corporate governance and risk management in relation to the financial irregularities was also discussed.

As a significant proportion of NDB Bank’s shares are held by institutions representing public and state funds, the Committee also considered the potential impact of such financial irregularities on public funds and the general public.

The Committee also discussed the progress made by LankaPay in establishing a centralized fraud monitoring system to prevent fraud within the financial system. The need to strengthen fraud monitoring systems at the individual bank level to monitor transactions carried out within each bank was also emphasized.

Accordingly, the following observations are included in the final audit report concerning the financial irregularities at NDB Bank:

1. The audit covers the period from 1 April 2016 to 31 March 2026. The audit report specifically identifies the financial impact arising from fraudulent transactions amounting to Rs. 13,639,664,684 (Rs. 13.6 billion).

2. According to the disclosure made on 29 September 2026, the financial impact arising from the fraudulent transactions is as follows:

· Rs. 1.5 billion for the period prior to 1 January 2025;

· Rs. 9.6 billion during 2025; and

· Rs. 2.5 billion for the quarter ended 31 March 2026.

3. Compared with the initial disclosure made by NDB on 6 April 2026, the reported amount of the fraud has increased by Rs. 0.4 billion, from Rs. 13.2 billion to Rs. 13.6 billion. Compared with the amount disclosed by NDB on 26 June 2026, based on the interim report dated 22 June 2026, the additional amount of fraud is Rs. 60 million.

4. The final audit report has also confirmed the previous disclosures that no customer accounts were affected as a result of the fraud incident.

5. The report has identified several governance failures at NDB relating to the processing of CEFT transactions, user-level activities within the Core Banking System, and the management of user credentials and access information. In addition, shortcomings have been identified in several operational areas, including transaction monitoring, daily account reconciliation, financial compliance, internal audit, branch network management, and operational risk management.

The audit report has made comprehensive recommendations to strengthen the control mechanisms, governance structures, and processes relating to the above-mentioned activities of the bank.

Continue Reading

News

President orders review of laws on treatment of imprisoned monks

Published

on

President Anura Kumara Dissanayake has ordered the formation of a committee to review the laws and regulations on how Buddhist monks serving prison sentences are treated, including the procedures that apply when they are taken out of prison.

He revealed this at a special meeting with Maha Sangha representatives held yesterday (8) at the Presidential Secretariat. The meeting was called after concerns were raised over how Ven. Galagoda Aththe Gnanasara Thera was treated when he was taken from prison to court.

The committee will recommend amendments to existing laws and, where needed, new prison standing orders and regulations. Its members will be drawn from the Attorney General’s Department, the Ministries of Justice, Public Administration, and Buddha Sasana, Religious and Cultural Affairs, and the Department of Prisons, including the Commissioner General of Prisons. It has been given two weeks to review the current legal provisions and submit its recommendations. The President added that any changes specific to Buddhist monks would be made in consultation with the Maha Sangha.

Outlining the legal background, the President said prison administration was governed by the Prisons Ordinance of 1877, along with the regulations and standing orders issued under it. That framework mostly addressed prisoners in general, he said, and had few provisions dealing specifically with Buddhist monks.

The meeting was attended by senior Maha Sangha members representing the Siyam, Amarapura and Ramanna Nikayas, along with Minister of Buddhasasana, Religious and Cultural Affairs Hiniduma Sunil Senevi and Minister of Justice Harshana Nanayakkara.

Continue Reading

Trending