News
Kuttiarachchi accused of running unauthorised banking network
By Saman Indrajith
SLPP MP Tissa Kuttiarachchi has got his relatives to run an unauthorised rural bank, SJB Badulla District MP Chaminda Wijesiri told Parliament on Wednesday.
“This is an illegal act. There is a network of banks. This should be stopped. These banks have not been recognised by the Central Bank or the Monetary Board,” the MP said.
Responding to MP Wijesiri’s question, State Minister of Co-operative Services, Marketing Development and Consumer Protection, Lasantha Alagiyawanna said that there was no bank by the name of Rural Capital Bank. “If anyone uses the word cooperative in the name of their bank, then our ministry can check on it. Otherwise, this should be checked and further action should be taken by the Central Bank,” the minister said.
“There is a network of banks by that name. It belongs to MP Tissa Kuttiarachchi, and his relatives run the bank. Managers of the branches are his relatives. The network has 171 branches countrywide. People do not know that this is an illegal bank. Why has the government given him permission to run this illegal business,” MP Wijesiri queried.
Minister Alagiyawanna said that there was no such bank under the line ministry and those banks may operate under the provincial councils. “I do not know about such banks. We will look into it. We should get together to inform the Central Bank of these banks,” the Minister said.
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Environmentalists warn Sri Lanka’s ecological safeguards are failing
Sri Lanka’s environmental protection framework is rapidly eroding, with weak law enforcement, politically driven development and the routine sidelining of environmental safeguards pushing the country towards an ecological crisis, leading environmentalists have warned.
Dilena Pathragoda, Managing Director of the Centre for Environmental Justice (CEJ), has said the growing environmental damage across the island is not the result of regulatory gaps, but of persistent failure to enforce existing laws.
“Sri Lanka does not suffer from a lack of environmental regulations — it suffers from a lack of political will to enforce them,” Pathragoda told The Sunday Island. “Environmental destruction is taking place openly, often with official knowledge, and almost always without accountability.”
Dr. Pathragoda has said environmental impact assessments are increasingly treated as procedural formalities rather than binding safeguards, allowing ecologically sensitive areas to be cleared or altered with minimal oversight.
“When environmental approvals are rushed, diluted or ignored altogether, the consequences are predictable — habitat loss, biodiversity decline and escalating conflict between humans and nature,” Pathragoda said.
Environmental activist Janaka Withanage warned that unregulated development and land-use changes are dismantling natural ecosystems that have sustained rural communities for generations.
“We are destroying natural buffers that protect people from floods, droughts and soil erosion,” Withanage said. “Once wetlands, forests and river catchments are damaged, the impacts are felt far beyond the project site.”
Withanage said communities are increasingly left vulnerable as environmental degradation accelerates, while those responsible rarely face legal consequences.
“What we see is selective enforcement,” he said. “Small-scale offenders are targeted, while large-scale violations linked to powerful interests continue unchecked.”
Both environmentalists warned that climate variability is amplifying the damage caused by poor planning, placing additional strain on ecosystems already weakened by deforestation, sand mining and infrastructure expansion.
Pathragoda stressed that environmental protection must be treated as a national priority rather than a development obstacle.
“Environmental laws exist to protect people, livelihoods and the economy,” he said. “Ignoring them will only increase disaster risk and long-term economic losses.”
Withanage echoed the call for urgent reform, warning that continued neglect would result in irreversible damage.
“If this trajectory continues, future generations will inherit an island far more vulnerable and far less resilient,” he said.
Environmental groups say Sri Lanka’s standing as a biodiversity hotspot — and its resilience to climate-driven disasters — will ultimately depend on whether environmental governance is restored before critical thresholds are crossed.
By Ifham Nizam ✍️
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