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Probe on Kurunegala MC sends shockwaves through political parties
By Shamindra Ferdinando
Auditor General W.P.C. Wickremaratne on Sunday (13) said that it was the responsibility of relevant political authorities to act on the findings/queries made by the National Audit Office.
The AG said so in response to The Island query with regard to the appointment of retired Judicial Officer Lalith Ekanayake, by North Western Province Governor Admiral of the Fleet Wasantha Karannagoda to conduct inquiry into allegations of corruption against Kurunegala Mayor Thushara Sanjeewa Vitharana (SLPP).
Controversy erupted over the Kurunegala Municipal Council, amidst accusations the government intends to further postpone Local Government polls.
Karannagoda, who served as the Commander of the Navy (2005-2009) held several appointments after his retirement, including that of Sri Lanka’s Ambassador in Tokyo before being named Governor of the North Western Province in Dec. 2021. The NW Province comprises the administrative districts of Kurunegala and Puttalam.
The AG stressed that their findings, pertaining to the Kurunegala MC administration, had been brought to the notice of the Parliament on more than one occasion. Local Government bodies come under Prime Minister Dinesh Gunawardena, who is also the Minister in charge of Local Government ministry.
The Governor, who represents the executive, issued an extraordinary gazette notification on Nov. 09 requesting for a comprehensive report from the one-man commission within three months. Declining to comment on the developments, Karannagoda said that he would await the completion of the investigation conducted in terms of the Commission of Inquiry Act.
The appointment of one-man commission took place, consequent to inquiries conducted by three boards into findings by the National Audit Office.
The National Audit Office has queried the payment of nearly Rs 59,879,720 more than the required amount to a CCD Construction Company in respect of two projects undertaken by the Kurunegala MC. Pointing out that this excess payment had been in spite of the total value of the agreement being Rs. 232,122,585, though estimated at Rs 230,186,606.
The National Audit Office has altogether queried 27 projects undertaken by the Kurunegala MC. The excess payment of Rs 59,879,720 pertained to one of the 27 projects undertaken during Thushara Sanjeewa’s tenure as the Mayor.
The SLPP won the Kurunegala MC at the Feb 2018 Local Government polls. The Kurunegala Mayor was implicated in the demolition of the Buwaneka Hotel, building with a historic connection, on July 15, 2020. The Road Development Authority (RDA) demolished the building without obtaining approval from the Department of Archaeology.
Following the Governor taking action on disclosures made by the National Audit Office, an interested party had made representations to political higher-ups to thwart investigations and further actions. The Governor is empowered to suspend the Mayor pending the investigation undertaken by the one-man commission, The Island learns.
Responding to queries, Auditor General Wickremaratne explained the urgent need to have cohesive systems to take punitive measures against those found guilty of waste, corruption, irregularities and mismanagement. The disclosures pertaining to the Kurunegala MC shouldn’t be considered as an isolated incident, the AG said, adding that over the years they have submitted quite a number of reports to Parliament that hadn’t so far produced the desired results.
National Audit Office has also inquired into large scale frauds perpetrated by the Kurunegala MC, court cases, renting of shops at Kurunegala bus stand, procurement of excavator from the public sector, in spite of having one of its own, releasing of machinery belonging to Kurunegala MC to various contractors, releasing land belonging to the state and Kurunegala MC to outsiders, serious financial irregularities in the procurement of water meters outside laid down procedures and payment of Rs 329,450.00 for furniture that hadn’t been procured by the Mayor’s Office.
Investigations have revealed members of the government, the Opposition as well as officers of the Kurunegala MC brazenly sharing shops available at the Kurunegala Central market, main bus stand and Maligapitiya shopping complex outside laid down procedures. Shops meant for all had been secured through political influence and SLPP, SJB and SLFP members of Kurunegala MC had obtained shops, according to the National Audit Office. The report named all recipients, including Mayor Thushara Sanjeewa Vitharana (three shops) and Opposition Leader W. A. Wijayananda Wedisinghe (two shops).
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Oil price falls back to pre-Iran war levels
The price of oil has fallen to levels not seen since before the Iran war as traffic through the key Strait of Hormuz shipping route gradually resumes.
Global benchmark Brent crude briefly fell below $72.48 (£55) a barrel, the price it was at the day before the US and Israel launched attacks on Iran on 28 February, before edging up to $73.23.
Energy prices have been on a wild ride since Iran responded to the strikes by effectively closing the strait, a critical waterway for oil and gas shipments.
The cost of crude has been moving sharply lower since the US and Iran signed a Memorandum of Understanding (MOU) on 17 June which set out a 60-day period for negotiations on Tehran’s nuclear programme and other measures to end the war.
Representatives from the two sides met in Switzerland last weekend for talks to end the war, which resulted in the US partially lifting sanctions on Iranian oil exports.
The number of vessels crossing the Strait of Hormuz has risen significantly since the MOU was signed, according to maritime intelligence firm Kpler.
Its latest data suggests 284 vessels have made the transit from 18 June, the day after the deal was signed, although that is is still well below the pre-conflict average of some 138 crossings each day.
The ships passing through the waterway in recent days include those carrying crude oil, liquefied natural gas (LNG), fertiliser and other goods, Kpler told the BBC.
The US and Iran had also formed a “communication line” to prevent misunderstandings “with the aim of safe passage for commercial vessels through the Strait of Hormuz”, mediators Qatar and Pakistan said in a joint statement on Monday.
There has been a “tremendous shift” with far more ships using the strait in recent days, said Dimitris Maniatis, the chief executive of Marisks, a maritime risk advisory firm working with ships stuck in the region.
A limited number of ships can cross a northern passageway with the permission of Iranian authorities, he said.
The US navy has also provided guidance for vessels to travel through a southern route that is safe from mines and other obstacles that has been laid out since the war, Maniatis said.
But the number of ships crossing the strait is still below levels seen before the war, when it was used by more than 100 ships a day.
Hundreds of ships still appear to be waiting in the Gulf.

Fuel prices at the pump rose sharply when the Iran war began, and now the focus is on how quickly they will fall.
“On the back of the lowest oil price since before the Iran war started, drivers should see the average price of petrol fall below 150p [a litre] in the next week or so,” said Simon Williams, head of policy at UK motoring group the RAC. He added the price of diesel “ought to go back under 160p.
Petrol peaked at 159.53p a litre on 28 May, according to the RAC, while diesel has fallen from a high of 191.54p on 15 April.
The average price of regular gasoline in the US has dropped to around $3.93 a gallon after reaching $4 a gallon in April, its highest since 2022, but is still well above pre-war levels.
US President Donald Trump on Wednesday ordered an investigation into major energy companies, accusing Shell, ExxonMobil and other firms of “gouging” drivers by not reducing fuel prices even as oil costs fell.
“Oil prices have come down so much and we are not seeing anything at the pump by comparison the way they should be,” Trump told reporters in the Oval Office.
The American Petroleum Institute, which represents the oil and gas industry in the US, said fuel prices “don’t move in lockstep with crude oil”.
British energy firms have faced similar accusations of unfairly hiking petrol prices since the Iran war.
The UK competition watchdog said last month that there was no widespread evidence of this, adding that average profit margins were “broadly unchanged” between February and March
(BBC)
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Representatives from the Ceylon Chamber of Commerce meet PM
Representatives from the ’The Ceylon Chamber of Commerce’ met with Prime Minister Dr. Harini Amarasuriya on Wednesday [24th of June] at the Parliament premises.
During the meeting, discussions focused on the Sri Lanka Economic and Investment Summit 2026 (SLEIS 2026), which is scheduled to be held on 12 and 13 October 2026. Attention was also given to digitalization initiatives, the introduction of digital technologies in schools under new education reforms, and the transformative role of Artificial Intelligence (AI) in Sri Lanka’s education sector.
Representatives of the Chamber noted that the summit would serve as an important platform for encouraging both local and foreign investment, while also contributing to the shaping of the country’s future economic policies.
The meeting was attended by Krishan Balendra, Chairman of The Ceylon Chamber of Commerce; Vinod Hirdaramani, Deputy Vice Chairman; Shiran Fernando, Secretary General and Chief Executive Officer; Aliki Perera, Deputy Secretary General and Chief Operating Officer; and Anagi Rodrigo-Weerasekera, Chief Economist and Head of Economic Intelligence, along with several other representatives.
[Prime Minister’s Media Division]
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Progress of Housing Project for Malayagam Community families funded by India reviewed
A discussion to review the progress of the housing project under which 4,700 houses are being constructed for the Malayagam community with Indian assistance was held this afternoon (24) at the Presidential Secretariat under the chairmanship of the Chief of Staff to the President, Prabath Chandrakeerthi.
Under this housing programme, 2,026 houses are to be provided to families identified by the National Building Research Institute (NBRI) as being at disaster risk. The remaining houses are expected to be allocated to eligible workers residing in the plantation sector.
Accordingly, the houses will be provided to Malayagam community families living on estates belonging to 22 Regional Plantation Companies, as well as estates under the State Plantations Corporation, Janawasama and Elkaduwa Plantations.
For the construction of each house, the Government of India has allocated Rs. 2.8 million, while the Government of Sri Lanka has contributed Rs. 400,000.
During the discussion, Chandrakeerthi instructed officials to ensure that the housing project is completed before the end of this year. He further directed that land identified for the construction of houses be released without delay and that the National Building Research Institute provide the necessary reports to identify suitable land for the project.
The housing project is being implemented jointly by the Ministry of Plantation and Community Infrastructure, the National Housing Development Authority, the State Engineering Corporation and the Plantation Human Development Trust.
Among those present were Additional Secretary (Development) of the Ministry of Plantation and Community Infrastructure, K. S. Wijayakeerthi; Director General (Engineering), N. D. N. Pushpakumara; Director General (Planning), W. A. K. S. Damayanthi; the Secretary General of the Planters’ Association; and officials from the National Housing Development Authority, the State Engineering Corporation, relevant institutions and plantation companies.
(PMD)
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