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Only 27% of funds allocated to SPC from Indian creditline spent: Ex-deputy Treasury Chief

Published

2 months ago

2026/02/9

Former Deputy Secretary to the Treasury R. M. P. Ratnayake told the Colombo Permanent High Court Trial-at-Bar on Friday that under an India–Sri Lanka loan agreement, funds allocated for the purchase of medicines must be used strictly for that purpose, and any issues should be addressed through a remedial committee.

Ratnayake made these submissions during the continuation of evidence in the case filed by the Attorney General against former Health Minister Keheliya Rambukwella and other accused. The case pertains to the procurement of substandard human immunoglobulin. The matter was heard before a Permanent High Court Trial-at-Bar, comprising Justices Priyantha Liyanage, Viraj Weerasuriya, and Thilakaratne Bandara. He appeared as the 182nd witness in the case related to irregularities in government purchases of medicines under the Indian Loan Proposal Scheme. He told the court that he did not have full knowledge of all conditions of the agreement and could not recall having seen a copy of the full document.

The loan, originally approved at USD 1 billion during the tenure of then President and Finance Minister Ranil Wickremesinghe, was granted to ease foreign exchange shortages and support essential imports. Ratnayake said the funds were not a grant and must be repaid after four years with interest.

During cross-examination, he admitted that only about 27% of the funds allocated to the State Pharmaceuticals Corporation had been spent, while nearly 100% of the private sector allocation was used as intended. He said he had informed relevant authorities, including the chair of the Pharmaceutical Procurement Committee, of the shortfall and delays.

Ratnayake said the government had intended to maximise the loan’s benefits and address delays, and that he had acted on behalf of the Treasury Secretary in signing conditions to extend the loan period. He also confirmed that public hospitals and healthcare services continued to operate free of charge despite the funding issues.

The witness acknowledged that the higher dollar exchange rate at the time had contributed to rising prices and inflation. He added that any problems arising from the Indian loan scheme were to be handled by a designated remedial committee, as stipulated in the agreement.

The court adjourned the examination of the witness until 10 am today (9).

by A. J. A. Abeynayake

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PM on inspection tour of newly renovated Colombo Central Bus Stand

Published

17 hours ago

2026/04/10

Priyan

The Colombo Central Bus Stand, which has a history of over six decades and had remained without a proper maintenance for many years, has now been renovated under the current government’s development programme and vested to the public. Following that, the Prime Minister undertook an inspection tour of the newly renovated Colombo Central Bus Stand.

Originally constructed in 1964, the bus stand was refurbished with modern facilities to meet current needs and was officially reopened to the public on April 8. The primary objective of this initiative is to provide passengers with a higher-quality and more comfortable transportation service.

During the renovation process, special attention has been given to the comfort and safety of women, which was commended by the Prime Minister. In particular, a modern rest area designed to ensure privacy for nursing mothers travelling from distant areas received special praise.

The Prime Minister also reviewed the newly introduced passenger seat reservation system and information services established to assist commuters. In addition, the modern surveillance unit and other security measures installed within the premises to ensure passenger safety were also inspected.

During the visit, the Prime Minister engaged in conversations with passengers at the bus stand and inquired about their views on the newly renovated facilities and the quality of transport services.

It was emphasized that the government’s objective is to transform public transportation into a safe, technologically advanced service that can be used with convenience by all citizens.

(Prime Minister’s Media Division)

Latest News

Sun directly overhead Nagawilluwa, Galgamuwa, Sigiriya, Palugasdamana and Mankerni about 12:11 noon today (10)

Published

17 hours ago

2026/04/10

Priyan

On the apparent northward relative motion of the sun, it is going to be directly over the latitudes of Sri Lanka from the 05th to 15th of April in this year.

The nearest areas of Sri Lanka over which the sun is overhead today (10th) are Nagawilluwa, Galgamuwa, Sigiriya, Palugasdamana and Mankerni about 12:11 noon.

News

Opposition tells Minister Kumara Jayakody to resign

Published

19 hours ago

2026/04/10

Thilina Walpola

Prof. Peiris

No-faith motion to be taken up today

Former Foreign Minister Prof. G. L. Peiris yesterday (9) said that President Anura Kumara Dissanayake should remove Energy Minister Kumara Jayakody unless the minister stepped down on his own.Prof. Peiris, addressing a press conference called by the Opposition, said that Jayakody couldn’t under any circumstance continue to serve as a minister after the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) moved the Colombo High Court against the government member over a previous financial scandal.

Pointing out that Minister Jayakody had been indicted of a corrupt deal struck during the yahapalana regime, Prof. Peiris said it was wrong for the NPP to retain him as a minister, claiming that the offence was not committed during his tenure as a Cabinet minister in the current government.

Prof. Peiris and several other Opposition members dealt with the No-Confidence Motion (NCM) against Jayakody that would be taken up today (10) with the academic calling the vote an acid test for the NPP. Having campaigned on an anti-corruption platform at presidential and parliamentary polls, the NPP couldn’t protect Jayakody though he was widely believed to be close to President Dissanayake.

As the Manager of the Procurement and Import Division of the Ceylon Fertilizer Company, Jayakody is alleged to have committed the offence of corruption, according to CIABOC.

Jayakody has been accused of causing a loss of Rs. 8,859,708 to the State by influencing and exploiting the procurement process.

Following the serving of indictments on 27 March, the judge ordered Jayakody’s release on two personal bail bonds of Rs. 1 million each. The court directed that the defendant’s fingerprints be obtained and a formal report be submitted. The case has been scheduled for a pre-trial conference on 6 May.

Prof. Peiris stressed that the CIABOC action against Jayakody is central to the NCM primarily moved over the irregularities ridden coal procurement process launched in 2025 that caused severe disruption to the power generation. Responding to The Island query after the media briefing, Prof Peiris expressed surprise that the JVP/NPP accommodated a person under investigation by the CIABOC. Having taken an utterly irresponsible decision, the JVP/NPP were now playing down the developing issue, prof. Peiris said.

The entire government parliamentary group faced the prospect of having its image tarnished by defending Jayakody, the former lawmaker said.

Prof. Peiris said that they intended to build a campaign around the issues involving the energy minister to expose the government. With yet another electricity tariff hike in the offing due to the growing demand for thermal generation as a result of coal-fired Lakvijaya power plant’s failure to meet the requirement[RA1] , the energy minister and ministry’s performances have to be examined, Prof. Peiris said.The timely release of the Auditor General’s report on controversial coal procurement should compel the government to decide on the energy minister’s fate or be prepared to face the fallout.

By Shamindra Ferdinando