Midweek Review
Shocking claim in House: Bandula reveals how sugar importers, their henchmen trapped Prez
Regular revelations, pertaining to high profile scams that had undermined revenue collection, underline the pathetic failure on the part of Parliament to ensure financial discipline. The Central Bank, five-member Monetary Board, Cabinet of Ministers and Parliament as an institution should accept the responsibility for the current crisis. The likes of Bandula Gunawardena continue to pursue an agenda, beneficial to them, or they are simply clueless about how such rip offs are staged, in spite of their self-proclaimed economic wizardry. And only now they are awakening to what happened. But luckily for the country in the case of the Central Bank bond scams, those who staged it could not hoodwink everyone at the CB. Political expediency is the name of the game as the country plunges deeper into economic quagmire.
By Shamindra Ferdinando
Alleging the Wickremesinghe-Rajapaksa government planned to appoint altogether 70 ministers (30 Cabinet and 40 State Ministers), Samagi Jana Balavegaya (SJB) lawmaker Dr. Harsha de Silva recently challenged the government to name a country that sustained such a top-heavy administration, during an economic crisis.
The Colombo District MP gave the challenge on Dec. 09, the day after Parliament overwhelmingly endorsed the 2023 Appropriation Bill, with a majority of 43 votes – six more than at the Second Reading, on Nov. 22. The outcome is nothing but extraordinary as President Ranil Wickremesinghe, leader of the UNP, who presented the Budget on Nov. 14, in his capacity as the Finance Minister, had only one UNP MP in Parliament.
Having been rejected by the Galle District electorate, at the last General Election, in August 2020, Wajira Abeywardena entered Parliament, in July this year, after the Sri Lanka Podujana Peramuna (SL)) elected UNP National List MP Wickremesinghe as the eighth President. The UNP managed to secure only one seat at that election, through its national list, after the country, as a whole, rejected all its candidates. In addition to the UNP, eight other recognised political parties won one seat each, both elected and appointed.
Against the backdrop of former Finance Minister, SLPP strategist Basil Rajapaksa’s declaration that the UNP leader was the most suitable to succeed his brother Gotabaya Rakapaksa, in July this year, amidst violent protests orchestrated by interested parties, there cannot be any dispute over the ruling party’s support to Wickremesinghe’s agenda. In spite of the breakup of the SLPP, into at least three factions, it remains a formidable political force, with its largest group unquestionably loyal to Basil Rajapaksa/Mahinda Rajapaksa.
Therefore, the appointment of Ministers, and State Ministers, as demanded by the SLPP, is a necessity, regardless of the economic catastrophe facing the country. That is the political reality. Dr. Harsha de Silva cannot be unaware of that certainty. Having entered Parliament, on the UNP National List, in 2010, after a successful career in the private sector, De Silva, who had an opportunity to receive the Finance portfolio in the current government, choose not to do so.
The former UNPer, who had served as Wickremesinghe’s deputy on economic affairs, during the Yahapalana administration, questioned the rationale behind such a large number of ministers at a time of an unprecedented political-economic-social crisis. In addition to being the Prime Minister, Wickremesinghe held the Cabinet portfolio for National Policies and Economic Affairs in that government.
The one-time yahapalana non-Cabinet ranker compared the massive allocation of public funds for Ministers, and the controversial new tax structure that had influenced professionals, including doctors, engineers, academics and IT professionals, to leave the country. The economist called the new tax structure unjust. Having voted against the Appropriation Bill, Dr. de Silva declared that daunting challenges, faced by the country, couldn’t be addressed by more ministerial appointments. Reference was made to 10,000 IT professionals leaving the country since the change of government, in July, this year.
The developing crisis should be examined, taking into consideration how successive governments obtained assistance from the International Monetary Fund (IMF) on 16 previous occasions. In other words, Sri Lanka had continuously experienced balance of payments problems, during the war, and thereafter. The IMF ‘interventions’ had been almost routine and never really attracted public attention, or never being an issue at an election. In fact, IMF ‘interventions’ and the Yahapalana administration securing USD 12.5 bn in International Sovereign Bonds (ISBs), within four years (2015-2019), and nothing to show in terms of successful development projects, when compared with Mahinda Rajapaksa taking USD 3 bn (2007-2014) with many a feather in his cap. The UNP owed an explanation why such a huge amount in ISBs was taken. Perhaps the Yahapalana Finance Minister, Ravi Karunanayake (2015-2017), and State Minister, Eran Wickremaratne, MP, or Dr. de Silva, can explain the circumstances leading to the procurement of such a massive amount of ISBs, during that time, and nothing tangible to show in return, unlike the Rajapaksas, who carried out many development projects, while prosecuting a crippling war to a successful conclusion against the contrary advice of so-called experts.
Therefore, the ongoing negotiations with the IMF, and Sri Lanka’s bilateral donors, meant to pave the way for USD 2.9 bn Rapid Financial Instrument (RFI), shouldn’t be considered something extraordinary. The UNP’s track record, pertaining to managing the national economy, too, is dismal. Can the UNP and its offshoot the SJB absolve themselves of responsibility for the 2015 and 2016 Treasury bond scams and the dilution of the Exchange Control Act in 2017? (State Finance Minister Ranjith Siyambalapitiya recently told the writer that the weakening of the Exchange Control Act meant clipping the Central Bank of its regulatory powers.)
All SJB MPs, including its leader Sajith Premadasa, served the Yahapalana administration, and the break-up of the UNP happened in early 2020. Had the then President Gotabaya Rajapaksa’s government negotiated with the IMF, in early 2020, as advertised by the lending body, perhaps the much respected wartime Defence Secretary could have avoided his calamitous exit. Dr. de Silva had been one of those who repeatedly pushed the Rajapaksa administration to seek the IMF’s intervention or face the consequences. But those who had the ear of President Gotabaya Rajapaksa, ensured the government refrained from seeking the IMF’s assistance, until it was too late.
Perhaps those at the helm would have expected both China and India, in competition, to throw lifelines to rescue Sri Lanka, but with Basil increasingly sailing the Lankan ship of state towards US and West in lockstep with New Delhi, Beijing literally called it quits. But now with India clearly showing the West that it is no vassal of any power bloc, may be both China and India can help stabilise and strengthen Sri Lanka. In fact, solid Sri Lanka will be an asset to New Delhi with our historic cultural, linguistic and religious links with the sub-continent.
However, no less than the Governor of the Central Bank, Dr. Nandalal Weerasinghe, told Parliament how the then Prime Minister Mahinda Rajapaksa, who also served as the Finance Minister, ignored warnings of the impending financial crisis of unprecedented magnitude.
The disclosure was made during the proceedings of the Committee on Public Enterprises (COPE) on May 25, 2022.
Dr. Weerasinghe didn’t mince his words when he told the parliamentary watchdog committee how the then Governor, Prof. W.D. Lakshman, and Treasury Secretary, S.R. Attygalle, received warning from the IMF that Sri Lanka couldn’t procure assistance unless the government undertook an immediate debt restructuring programme. Dr. Weerasinghe declared that the IMF made its position clear after quite rightly asserting that Sri Lanka lacked debt sustainability. The CBSL Chief’s revelation prompted the then COPE Chairman Prof. Charitha Herath to call the government’s failure a crime.
Having received his letter of appointment, on April 07, 2022, Dr. Weerasinghe, over the past eight months ,laid bare the truth. Appearing before the parliamentary watchdog committees, on several occasions, and a special talk delivered on August 31, after Wickremesinghe, in his capacity as the Finance Minister, presented an interim budget, the intrepid official told lawmakers what no one had dared to tell them before.
His message was clear. Political parties have collectively ruined the economy. Recognise the failure on their part without further delay, take immediate remedial measures or face the consequences. Dr. Weerasinghe warned that the next round of protests could be far worse than the first that forced Gotabaya Rajapaksa to give up his presidency.
A negligent Parliament
Declarations made in Parliament, when examined against the backdrop of an utterly corrupt political party system, can help the public to comprehend how those who had the ear of the powers that be exploited even the revenue gathering mechanism.
Media and Transport Minister Bandula Gunawardena should be urged to disclose those who perpetrated the massive sugar tax scam that actually caused a catastrophic impact on Gotabaya Rajapaksa’s administration. It simply ruined the President’s reputation.
What the former Trade Minister revealed in Parliament, on Dec. 09, pertaining to the sugar tax scam (reduction of duty on sugar imports) implicated the then President in a horrendous fraud that deprived the Treasury of billions of rupees in taxes. Even Gunawardena, too, should be held responsible as he, as the Trade Minister and a member of Gotabaya Rajapaksa’s Cabinet, cannot absolve his culpability. Why did he wait so long to tell the truth?
Let me repeat what Minister Gunawardena told the House on the particular day. Former much-sought-after economic tuition master underscored the need to identify ‘economic assassins’ without pointing the finger at Presidents Gotabaya Rajapaksa and Mahinda Rajapaksa. The Colombo District lawmaker said that there was no point in holding ministers responsible for the ruination of the economy. Gunawardena stressed the need to ascertain what really happened to the country.
Obviously, the lawmaker is making a fool of himself. How can the President, who is the constitutional head of the Cabinet-of-Ministers absolve himself of ill-fated decisions? Having first entered Parliament, in 1989, on the Mahajana Eksath Peramuna (MEP) ticket, and later having crossed over, served in the UNP-led government as the Finance Deputy Minister (2001-2004), lawmaker Gunawardena, too, must admit he is part of the corrupt system.
Referring to those who held the Finance portfolio, over the years, Minister Gunawardena said: “Ministers simply read out what was provided by officials (at the Finance Ministry). People think Ministers can decide on anything. But, that is not the reality.”
Speaking of the sugar tax scam, perpetrated in Oct. 2020, Minister Gunawardena said that he was at the Narahenpita Abhayaramaya when he heard the decision to reduce the tax on a kilo of imported white sugar, from Rs. 50 to 25 cents. In spite of being the Trade Minister at that time, lawmaker Gunawardena hadn’t been aware of the move until the media made the announcement. “During Cabinet proceedings, I strongly opposed the reduction of the sugar tax. I insisted the reduction of the sugar tax to 25 cents was wrong. But, President Gotabaya Rajapaksa was told by his advisors not to rescind that decision. Regardless of my opposition, they urged the President to stand by the reduction of the sugar tax to 25 cents.”
Minister Gunawardena looked quite silly repeating what Health Minister Keheliya Rambukwella said about the role played by R. Paskaralingam and Charitha Ratwatte during the previous administrations.
Minister Gunawardena said: “The people do not know the truth. SLFP General Secretary, Dayasiri Jayasekera, MP, reminded Minister Gunawardena how he, as a member of the then Joint Opposition, vigorously opposed the tax formula implemented by the Yahapalana administration. Having worked overtime to sabotage the revenue collection process, Gunawardena was now singing a different tune, MP Jayasekera declared.
What Minister Gunawardena didn’t say in Parliament, on that day, was that Finance Minister Mahinda Rajapaksa, too, had been with him when the media announced the slashing of sugar tax to 25 cents. When inquired, Mahinda Rajapaksa, too, has claimed he hadn’t been aware of the move. On the advice of Bandula Gunawardena, a Trade Ministry official has phoned the Secretary to the Treasury, S.R. Attygalle, to inquire about the development. Attygalle has promptly confirmed the decision.
Now that President Wickremesinghe has suggested an inquiry to ascertain the economic meltdown, sugar tax scam, too, can be examined. A Presidential Commission/Parliamentary Select Committee can question Minister Gunawardena regarding the sugar tax scam.
The following are some pertinent questions (1) If Mahinda Rajapaksa hadn’t been aware of the sugar tax reduction, who ordered the issuance of gazette. dated Oct. 13, 2020, pertaining to the sharpest ever decline in duty? (2) Had that been effected, without Finance Minister Mahinda Rajapaksa’s approval, why didn’t he reverse it? (3) Would Bandula Gunawardena name those who advised President Gotabaya Rajapaksa to maintain duty at 25 cents a kilo of white sugar (4) Did Bandula Gunawardena, at least, privately brief the then Chairman of Public Finance Committee, Anura Priyadarshana Yapa, of the sugar tax scam? (Gunawardena couldn’t have been unaware of the public condemnation of the sugar tax scam by lawmaker Yapa.) And (5) did Gunawardena criticize the issue at hand before his Dec. 09 speech in Parliament? And, perhaps, lawmaker Gunawardena can honestly explain his stand on his former Cabinet colleagues, Vasudeva Nanayakkara, Wimal Weerawansa and Udaya Gammanpila moving the Supreme Court against the New Fortress Energy deal, finalised on the night of Sept. 17, 2021, during Basil Rajapaksa’s tenure as the Finance Minister (June 2021-April 2022).
In spite of the summary dismissal of the case, the former ministers proved a point. Having turned a blind eye to years of skullduggery (condoned waste, corruption, irregularities and deliberate mismanagement), they had finally realised the ugly truth. The Cabinet-of-Ministers is not infallible. It can be corrupted.
The sugar tax scam and New Fortress Energy deal are just two of the high profile ‘transactions’ that received the blessings of the executive.
Perhaps State Finance Minister Ranjith Siyambalapitiya should look into Minister Gunawardena’s Dec. 09 declaration. Having vowed to recover the losses caused by the sugar tax scam, the SLFPer cannot ignore the accusations made by President Gotabaya Rajapaksa’s advisors. Was Bandula Gunawardena also referring to those who had been faulted by the then Finance Minister, Ali Sabry, PC, for the economic ruination? In an interview with Swarnawahini, in early June, this year, following his return from Washington where he led the delegation for talks with the IMF, the outspoken Minister alleged the Secretary to the Treasury, Governor of the Central Bank, and senior economic advisor/advisors to the President, misled the Cabinet-of-Ministers as regards the economic situation.
Prof. W. A. Lakshman (Dec. 2019-Sept 2021) and Ajith Nivard Cabraal (Sept. 2021-March 2022) served as Governors of the CBSL, S.R. Attygalle served as Secretary, Ministry of Finance (Nov 2019-April 2022), whereas veteran financial wizard Dr. P. B. Jayasundera functioned as Secretary to the President (Nov. 2019-Dec. 2021).
Exactly a month before Bandula Gunawardena’s Dec. 09 disclosure, State Minister Siyambalapitiya told Parliament that he would recover 30 percent of the Rs 16 bn loss in tax revenue, suffered as a result of sugar tax scam. The Kegalle District lawmaker assured Parliament that hereafter one person wouldn’t be allowed to take such decisions. Was Siyambalapitiya referring to the Finance Minister or Secretary to the Treasury or someone else?
Siyambalapitiya is on record as having told Parliament that 10 sugar importers benefitted from the tax reduction. One of them imported 45 percent of the total sugar imports and during the period of the tax relief received, the largest beneficiary increased sugar imports by a staggering 1,220 percent. The Minister also revealed that in spite of the tax relief state-run Sathosa (under Bandula Gunawardena) suffered losses that ran up to Rs 10 bn by procuring sugar at a higher cost.
Media Minister Bandula Gunawardena should be questioned on this. In spite of knowing the sugar scam, did Bandula Gunawardena allow Sathosa to cause a further loss of Rs 10 bn? The writer was among the journalists the Criminal Investigation Department (CID) wanted to question over the disclosure of a massive garlic racket exposed at the onset of the Gotabaya Rajapaksa administration. Instead of punishing the wrongdoers, the government felt it could suppress the reportage of the fraudulent transactions. At the end, the entire Cabinet-of-Ministers, including the President ended up with egg on their faces.
Midweek Review
2019 Easter Sunday carnage in retrospect
Coordinated suicide attacks targeted three churches—St. Anthony’s in Colombo, St. Sebastian’s at Katuwapitiya and Zion Church in Batticaloa—along with popular tourist hotels Shangri-La, Kingsbury, and Cinnamon Grand. No less a person than His Eminence Archbishop of Colombo Rt. Rev. Malcolm Cardinal Ranjith is on record as having said that the carnage could have been averted if the Yahapalana government shared the available Indian intelligence warning with him. Yahapalana Minister Harin Fernando publicly admitted that his family was aware of the impending attack and the warning issued to senior police officers in charge of VVIP/VIP security is evidence that all those who represented Parliament at the time knew of the mass murder plot. Against the backdrop of Indian intelligence warning and our collective failure to act on it, it would be pertinent to ask the Indians whether they knew the Easter Sunday operation was to facilitate Gotabaya Rajapaksa’s victory at the 2019 presidential poll. Perhaps, a key to the Easter Sunday conspiracy is enigma Sara Jasmin (Tamil girl from Batticaloa converted to Islam) whose husband Atchchi Muhammadu Hasthun carried out the attack on St. Sebastian’s Church, Katuwapitiya
By Shamindra Ferdinando
Pivithuru Hela Urumaya (PHU) leader Udaya Gammanpila’s Pasku Praharaye Mahamolakaru Soya Yema (Searching for the mastermind behind the Easter Sunday attacks) inquired into the 2019 April 21 Easter Sunday carnage. The former Minister and Attorney-at-Law quite confidently argued that the mastermind of the only major post-war attack was Zahran Hashim, one of the two suicide bombers who targeted Shangri-la, Colombo.
Gammanpila launched his painstaking work recently at the Sambuddhathva Jayanthi Mandiraya at Thummulla, with the participation of former Presidents Gotabaya Rajapaksa, who had been accused of being the beneficiary of the Easter Sunday carnage at the November 2019 presidential election, and Maithripala Sirisena faulted by the Presidential Commission of Inquiry (PCoI) that probed the heinous crime. Rajapaksa and Sirisena sat next to each other, in the first row, and were among those who received copies of the controversial book.
PCoI, appointed by Sirisena in September, 2019, in the run-up to the presidential election, in its report submitted to President Gotabaya Rajapaksa, in February, 2020, declared that Sirisena’s failure as the President to act on ‘actionable intelligence’ exceeded mere civil negligence. Having declared criminal liability on the part of Sirisena, the PCoI recommended that the Attorney General consider criminal proceedings against former President Sirisena under any suitable provision in the Penal Code.
PCoI’s Chairman Supreme Court Judge Janak de Silva handed over the final report to President Rajapaksa on February 1, 2021 at the Presidential Secretariat. Gotabaya Rajapaksa received the first and second interim reports on 20 December and on 2 March, 2020, respectively.
The Commission consists of the following commissioners: Justice Janak De Silva (Judge of the Supreme Court and Chairman of the Commission), Justice Nissanka Bandula Karunarathna (Judge of the Court of Appeal), Justice Nihal Sunil Rajapakse (Retired Judge of the Court of Appeal), Bandula Kumara Atapattu (Retired Judge of the High Court) and Ms W.M.M.R. Adikari (Retired Ministry Secretary).
H.M.P. Buwaneka Herath functioned as the Secretary to the PCoI.
It would be pertinent to mention that the Archbishop of Colombo Malcolm Cardinal Ranjith, declined an opportunity offered by President Rajapaksa to nominate a person for the PCoI. The Church leader asserted such a move would be misconstrued by various interested parties. Both the former President and Archbishop of Colombo confirmed that development soon after the presidential election.
Having declared its faith in the PCoI and received assurance of the new government’s intention to implement its recommendations, the Church was taken aback when the government announced the appointment of a six-member committee, chaired by Minister Chamal Rajapaksa, to examine the PCoI and recommend how to proceed. That Committee included Ministers Johnston Fernando, Udaya Gammanpila, Ramesh Pathirana, Prasanna Ranatunga and Rohitha Abeygunawardena.
The Church cannot deny that their position in respect of the Yahapalana government’s pathetic failure to thwart the Easter Sunday carnage greatly influenced the electorate, and the SLPP presidential candidate Gotabaya Rajapaksa directly benefited. Alleging that the Archbishop of Colombo played politics with the Easter Sunday carnage, SJB parliamentarian Harin Fernando, in June 2020, didn’t mince his words when he accused the Church of influencing a decisive 5% of voters to back Gotabaya Rajapaksa. At the time that accusation was made about nine months before the PCoI handed over its report, President Rajapaksa and the Archbishop of Colombo enjoyed a close relationship.
The Church raised the failure on the part of the government to implement the PCoI’s recommendations six months after President Rajapaksa received the final report.
The National Catholic Committee for Justice to Eastern Sunday Attack Victims, in a lengthy letter dated 12 July 2021, demanded the government deal with the following persons for their failure to thwart the attacks. The Committee warned that unless the President addressed their concerns alternative measures would be taken. The government ignored the warning. Instead, the SLPP adopted delaying tactics much to their disappointment and the irate Church finally declared unconditional support for the US-India backed regime change project.
Sirisena and others
On the basis of the 19th Chapter, titled ‘Accountability’ of the final report, the Committee drew President Rajapaksa’s attention to the following persons as listed by the PCoI: (1) President Maithripala Sirisena (2) PM Ranil Wickremesinghe (3) Defence Secretary Hemasiri Fernando (4) Chief of National Intelligence Sisira Mendis (5) Director State Intelligence Service Nilantha Jayawardena.
The 20th Chapter, titled ‘Failures on the part of law enforcement authorities’ in the Final report (First Volume), identified the following culprits ,namely IGP Pujith Jayasundera, SDIG Nandana Munasinghe (WP), Deshabandu Tennakoon (DIG, Colombo, North), SP Sanjeewa Bandara (Colombo North), SSP Chandana Atukorale, B.E.I. Prasanna (SP, Director, Western province, Intelligence), ASP Sisira Kumara, Chief Inspector R.M. Sarath Kumarasinghe (Acting OIC, Fort), Chief Inspector Sagara Wilegoda Liyanage (OIC, Fort)., Chaminda Nawaratne (OIC, Katana), State Counsel Malik Azeez and Deputy Solicitor General Azad Navaavi.
The PCoI named former Minister and leader of All Ceylon Makkal Congress Rishad Bathiudeen, his brother Riyaj, Dr Muhamad Zulyan Muhamad Zafras and Ahamad Lukman Thalib as persons who facilitated the Easter Sunday conspiracy, while former Minister M.L.A.M. Hisbullah was faulted for spreading extremism in Kattankudy.
Major General (retd) Suresh Sallay, who is now in remand custody, under the CID, for a period of 90 days, in terms of the prevention of Terrorism Act (PTA) ,was not among those named by the PCoI. Sallay, who served as the head of the Directorate of Military Intelligence (DMI/from 2012 to 2016) was taken into custody on 25 February and named as the third suspect in the high profile investigation. (Interested parties propagated that Sallay was apprehended on the basis of UK’s Channel 4 claim that the officer got in touch with would-be Easter Sunday bombers, including Zahran Hashim, with the help of Sivanesathurai Chandrakanthan, alias Pilleyan. However, Pilleyan who had been arrested in early April 2025 under PTA was recently remanded by the Mount Lavinia Magistrate’s Court, pending the Attorney General’s recommendations in connection with investigations into the disappearance of a Vice Chancellor in the Eastern Province in 2006. There was absolutely no reference to the Easter Sunday case)
The Church also emphasised the need to investigate the then Attorney General Dappula de Livera’s declaration of a ‘grand conspiracy’ behind the Easter Sunday carnage. The Church sought answers from President Rajapaksa as to the nature of the grand conspiracy claimed by the then AG on the eve of his retirement.
Sallay was taken into custody six years after the PCoI handed over its recommendations to President Rajapaksa and the appointment of a six-member parliamentary committee that examined the recommendations. The author of Pasku Praharaye Mahamolakaru Soya Yema, Gammanpila, the only lawyer in the six-member PCoI, should be able to reveal the circumstances that committee came into being.
Against the backdrop of the PCoI making specific recommendations in respect of the disgraced politicians, civilian officials and law enforcement authorities over accountability and security failures, the SLPP owed an explanation regarding the appointment of a six-member committee of SLPPers. Actually, the SLPP owed an explanation to Sallay whose arrest under the PTA eight years after Easter Sunday carnage has to be discussed taking into consideration the failure to implement the recommendations.
Let me briefly mention PCoI’s recommendations pertaining to two senior police officers. PCoI recommended that the AG consider criminal proceedings against SDIG Nandana Munasinghe under any suitable provision in the Penal Code or Section 82 of the Police Ordinance (Final report, Vol 1, page 312). The PCoI recommended a disciplinary inquiry in respect of DIG Deshabandu Tennakoon. The SLPP simply sat on the PCoI recommendations.
Following the overthrow of President Rajapaksa by a well-organised Aragalaya mob in July 2022, the SLPP and President Ranil Wickremesinghe paved the way for Deshabandu Tennakoon to become the Acting IGP in November 2023. Wickremesinghe went out of his way to secure the Constitutional Council’s approval to confirm the controversial police officer Tennakoon’s status as the IGP.
Some have misconstrued the Supreme Court ruling, given in January 2023, as action taken by the State against those named in the PCoI report. It was not the case. The SC bench, comprising seven judges, ordered Sirisena to pay Rs 100 mn into a compensation fund in response to 12 fundamental rights cases filed by families of the Easter Sunday victims, Catholic clergy and the Bar Association of Sri Lanka. The SC also ordered ex-IGP Pujith Jayasundara and former SIS head Nilantha Jayawardene to pay Rs. 75m rupees each, former Defence Secretary Hemasiri Fernando Rs. 50 million and former CNI Sisira Mendis Rs. 10 million from their personal money. All of them have been named in the PCoI report. As previously mentioned, Maj. Gen. Sallay, who headed the SIS at the time of the SC ruling that created the largest ever single compensation fund, was not among those faulted by the sitting and former justices.
Initial assertion
The Archbishop of Colombo, in mid-May 2019, declared the Easter Sunday carnage was caused by local youth at the behest of a foreign group. The leader of the Catholic Church said so in response to a query raised by the writer regarding a controversial statement made by TNA MP M. A. Sumanthiran. The Archbishop was joined by Most Ven Ittapane Dhammalankara Nayaka Thera of Kotte Sri Kalyani Samagri Dharma Maha Sangha Sabha of Siyam Maha Nikaya. They responded to media queries at the Bishop’s House, Borella.
The Archbishop contradicted Sumanthiran’s claim that the failure on the part of successive governments to address the grievances of minorities over the past several decades led to the 2019 Easter Sunday massacre.
Sumanthiran made the unsubstantiated claim at an event organised to celebrate the first anniversary of the Sinhala political weekly ‘Annidda,’ edited by Attorney-at-Law K.W. Janaranjana at the BMICH.
The Archbishop alleged that a foreign group used misguided loyal youth to mount the Easter Sunday attacks (‘Cardinal rejects TNA’s interpretation’, with strap line ‘foreign group used misguided local youth’, The Island, May 15, 2019 edition).
Interested parties interpreted the Easter Sunday carnage in line with their thinking. The writer was present at a special media briefing called by President Sirisena on 30 April, 2019 at the President’s House where the then Northern Province Governor Dr. Suren Raghavan called for direct talks with those responsible for the Easter Sunday massacre. One-time Director of the President’s Media Division (PMD) Dr. Raghavan emphasised that direct dialogue was necessary in the absence of an acceptable mechanism to deal with such a situation. Don’t forget Sisisena had no qualms in leaving the country a few days before the attacks and was away in Singapore when extremists struck. Sirisena arrived in Singapore from India.
The NP Governor made the declaration though none of the journalists present sought his views on the post-Easter Sunday developments.
During that briefing, in response to another query raised by the writer, Army Commander Lt. Gen. Mahesh Senanayake disclosed that the CNI refrained from sharing intelligence alerts received by the CNI with the DMI. Brigadier Chula Kodituwakku, who served as Director, DMI, had been present at Sirisena’s briefing and was the first to brief the media with regard to the extremist build-up leading to the Easter Sunday attacks.
The collapse of the Yahapalana arrangement caused a security nightmare. Frequent feuds between Yahapalana partners, the UNP and the SLFP, facilitated the extremists’ project. The top UNP leadership feared to step in, even after Justice Minister Dr. Wijeyadasa Rajapaksha issued a warning in Parliament, in late 2016, regarding extremist activities and some Muslim families securing refuge in countries dominated by ISIS. Instead of taking tangible measures to address the growing threat, a section of the UNP parliamentary group pounced on the Minister.
The UNP felt that police/military action against extremists may undermine their voter base. The UNP remained passive even after extremists made an abortive bid to kill Thasleem, Coordinating Secretary to Minister Kabir Hashim, on 8 March 2019. Thasleem earned the wrath of the extremists as he accompanied the CID team that raided the extremists’ facility at Wanathawilluwa. The 16 January 2019 raid indicated the deadly intentions of the extremists but PM Wickremesinghe was unmoved, while President Sirisena appeared clueless as to what was going on.
Let me reproduce the PCoI assessment of PM Wickremesinghe in the run-up to the Easter Sunday massacre. “Upon consideration of evidence, it is the view of the PCoI that the lax approach of Mr. Wickremesinghe towards Islamic extremists as the Prime Minister was one of the primary reasons for the failure on the part of the then government to take proactive steps towards tackling growing extremism. This facilitated the build-up of Islam extremists to the point of the Easter Sunday attack.” (Final report, Vol 1, pages 276 and 277).
The National Catholic Committee for Justice to Easter Sunday Attack Victims, in its letter dated 12 July, 2021, addressed to President Rajapaksa, questioned the failure on the part of the PCoI to make any specific recommendations as regards Wickremesinghe. Accusing Wickremesinghe of a serious act of irresponsibility and neglect of duty, the Church emphasised that there should have been further investigations regarding the UNP leader’s conduct.
SLPP’s shocking failure
The SLPP never made a serious bid to examine all available information as part of an overall effort to counter accusations. If widely propagated lie that the Easter Sunday massacre had been engineered by Sallay to help Gotabaya Rajapaksa win the 2019 presidential poll is accepted, then not only Sirisena and Wickremesinghe but all law enforcement officers and others mentioned in the PCoI must have contributed to that despicable strategy. It would be interesting to see how the conspirators convinced a group of Muslims to sacrifice their lives to help Sinhala Buddhist hardliner Gotabaya Rajapaksa to become the President.
Amidst claims, counter claims and unsubstantiated propaganda all forgotten that a senior member of the JVP/NPP government, in February 2021, when he was in the Opposition directly claimed Indian involvement. The accusation seems unfair as all know that India alerted Sri Lanka on 4 April , 2019, regarding the conspiracy. However, Asanga Abeygoonasekera, in his latest work ‘Winds of Change’ questioned the conduct of the top Indian defence delegation that was in Colombo exactly two weeks before the Easter Sunday carnage. Abeygoonasekera, who had been a member of the Sri Lanka delegation, expressed suspicions over the visiting delegation’s failure to make reference to the warning given on 4 April 2019 regarding the plot.
The SLPP never had or developed a strategy to counter stepped up attacks. The party was overwhelmed by a spate of accusations meant to undermine them, both in and outside Parliament. The JVP/NPP, in spite of accommodating Mohamed Yusuf Ibrahim, father of two Easter Sunday suicide bombers Ilham Ahmed Ibrahim (Shangila-la) and Imsath Ahmed Ibrahim (Cinnamon Grand), in its 2015 National List was never really targeted by the SLPP. The SLPP never effectively raised the possibility of the wealthy spice trader funding the JVP to receive a National List slot.
The Catholic Church, too, was strangely silent on this particular issue. The issue is whether Mohamed Yusuf Ibrahim had been aware of the conspiracy that involved his sons. Another fact that cannot be ignored is Attorney-at-Law Hejaaz Hizbullah who had been arrested in April 2020 in connection with the Easter Sunday carnage but granted bail in February 2022 had been the Ibrahim family lawyer.
Hejaaz Hizbullah’s arrest received international attention and various interested parties raised the issue.
The father of the two brothers, who detonated suicide bombs, was granted bail in May 2022.
Eric Solheim, who had been involved in the Norwegian-led disastrous peace process here, commented on the Easter Sunday attacks. In spite of the international media naming the suicide bombers responsible for the worst such atrocity Solheim tweeted: “When we watch the horrific pictures from Sri Lanka, it is important to remember that Muslims and Christians are small minorities. Muslims historically were moderate and peaceful. They have been victims of violence in Sri Lanka, not orchestrating it.”
That ill-conceived tweet exposed the mindset of a man who unashamedly pursued a despicable agenda that threatened the country’s unitary status with the connivance of the UNP. Had they succeeded, the LTTE would have emerged as the dominant political-military power in the Northern and Eastern Provinces and a direct threat to the rest of the country.
Midweek Review
War with Iran and unravelling of the global order – I
At present, the world stands in the midst of a transitional and turbulent phase, characterised by heightened uncertainty and systemic flux, reflecting an ongoing transformation of the modern global order. The existing global order, rooted in the US hegemony, shows unmistakable signs of decay, while a new and uncertain global system struggles to be born. In such moments of profound transformation, as Antonio Gramsci observed, morbid symptoms proliferate across the body politic. From a geopolitical perspective, the intensifying coordinated aggression of the United States and Israel against Iran is not merely a regional crisis, but an acceleration of a deeper structural transformation in the international order. In this context, the conduct of Donald Trump appears less as an aberration and more as a morbid symptom of a declining US-led global order. As Amitav Acharya argues in The Once and Future World Order (2025), the emerging global order may well move beyond Western dominance. However, the pathway to that future is proving anything but orderly, shaped instead by disruption, unilateralism, and the unsettling symptoms of a system in transition.
Origins of the Conflict
To begin with, the origins and objectives of the parties to the present armed confrontation require unpacking. In a sense, the current Persian Gulf crisis reflects a convergence of long-standing geopolitical rivalries and evolving security dynamics in the Middle East. The roots of tension between the West and the Middle East can be traced back to earlier historical encounters, from the Persian Wars of classical antiquity to the Crusades of the medieval period. A new phase in the region’s political trajectory commenced in 1948 with the establishment of Israel—widely perceived as a Western enclave within the Arab world—and the concurrent displacement of approximately 700,000 Palestinians from their homeland. Since then, Israel has steadily consolidated and expanded its territory, a process that has remained a persistent source of regional instability. The Iranian Revolution introduced a further layer of complexity, fundamentally reshaping regional alignments and ideological contestations. In recent years, tensions between Israel and the United States on one side and Iran on the other have steadily intensified. The current phase of the conflict, however, was directly triggered by coordinated U.S.–Israeli airstrikes on both civilian and military targets on 28 February 2026, which, as noted in a 2 April 2026 statement by 100 international law experts from leading U.S. universities, constituted a clear violation of the UN Charter and International Humanitarian Law (IHL).
Objectives and Strategic Aims
Israel’s strategic objective appears to be directed toward the systematic and total destruction of Iran’s military, nuclear, and economic capabilities, driven by the perception that Iran remains the principal obstacle to its security and its pursuit of regional primacy. Israel was aware that Iran did not possess a nuclear weapon at the time; however, its nuclear programme remained a subject of international contention, with competing assessments regarding its ultimate intent and potential for weaponisation.
The United States, for its part, appears to be pursuing more targeted political and strategic objectives, including eventual transformation of Iran’s current political regime. Washington has long regarded the Iranian leadership as fundamentally antagonistic to U.S. interests in the Middle East. In this context, the United States may seek to enhance its strategic leverage over Iran, including in relation to its substantial oil and gas resources, a point underscored in recent statements by Donald Trump. It must be noted, however, successive U.S. administrations since 1979 have avoided direct large-scale military confrontation with Iran, preferring instead a combination of sanctions, diplomatic pressure, and indirect military engagement.
The positions of other Arab states in the Persian Gulf are shaped by a combination of security calculations, sectarian considerations, and broader geopolitical alignments. While several Gulf Cooperation Council (GCC) members, notably Saudi Arabia and United Arab Emirates, have expressed tacit support for measures that counter Iranian regional influence, their involvement remains calibrated to avoid direct military confrontation. Their position is informed by the belief that Iran provides backing to militant non-state actors, including Hezbollahs in the West Bank and the Houthis in Southern Yemen, which they view as destabilising forces in the region. These states are balancing competing priorities: the desire to curb Iran’s power projection, maintain strong security and economic ties with the United States, and preserve domestic stability. At the same time, countries such as Oman and Qatar have adopted more neutral or mediating stances, emphasizing diplomatic engagement and conflict de-escalation.
Militarily, Iran is not positioned to match the combined military capabilities of U.S.–Israeli forces. Nevertheless, it retains significant asymmetric leverage, particularly through its capacity to influence global energy flows. Control over critical maritime chokepoints, most notably the Strait of Hormuz, provides Tehran with a potent strategic instrument to disrupt global oil supply. Iranian leadership appears to view this leverage as a key pressure point, designed to compel global economic actors to push Washington and Tel Aviv toward a cessation of hostilities and a negotiated settlement. In this context, attacks on oil and gas infrastructure, shipping routes, and supply lines constitute central components of Iran’s survival strategy. As long as the conflict persists and energy flows through the Strait of Hormuz remain disrupted, the resulting instability is likely to generate severe repercussions across the global economy, increasing pressure on the United States to halt military operations against Iran.
Now entering its fifth week, the conflict continues to flare intensely, characterised by sustained and intensive aerial operations. Joint U.S.–Israeli strikes have reportedly destroyed substantial elements of Iran’s air and naval capabilities, as well as critical military and economic infrastructure. Nevertheless, Iran has retained the capacity to conduct guided missile strikes within Israel and against selected U.S. economic, diplomatic, and military assets across the Middle East, including reported long-range attacks on the U.S. facility at Diego Garcia in the Indian Ocean, approximately 4,000 kilometers from Iranian territory. Initial U.S. and Israeli strategic calculations—anticipating that a decisive initial strike and the targeted killing of Iranian Supreme Leader Ali Khamenei would precipitate regime collapse and popular uprising—have not materialized. On the contrary, the destruction of civilian facilities has strengthened anti-American sentiment and reinforced domestic support for the Iranian leadership. While Iran faced initial setbacks on the battlefield, it has achieved notable success in the international media front, effectively shaping global perceptions and advancing its propaganda objectives. By the fifth week, Tehran’s asymmetric strategy has yielded tangible results, including the downing of two U.S. military aircraft, F15E Strike Eagle fighter jet and A10 Thunderbolt II (“Warthog”) ground-attack aircraft , signaling the resilience and operational efficacy of Iran’s military power.
The Military Industrial Complexes and ProIsrael Lobby
Why did the United States initiate military action against Iran at this particular juncture? Joe Kent, who resigned in protest over the war, stated that available intelligence did not indicate an imminent Iranian capability to produce a nuclear weapon or pose an immediate threat to the United States. This assessment raises important questions about the stated objective of dismantling Iran’s nuclear programme, suggesting that it may have served to obscure broader strategic and economic considerations underpinning the intervention. To understand the timing and rationale of the U.S. intervention in the Persian Gulf, it is therefore necessary to examine the influence of two powerful domestic pressure groups: the military–industrial complex and the pro-Israel lobby.
The influence of the U.S. military–industrial complex on American foreign policy is most clearly manifested through the institutionalized “revolving door” between defense corporations and senior positions within the U.S. administration. Over the past two decades, key figures such as Lloyd Austin (Secretary of Defence, 2021–2025), a former board member of Raytheon Technologies, Mark Esper (Secretary of Defence 2019–2020), who previously served as a senior executive at the same firm, and Patrick Shanahan (2019) from Boeing exemplify the direct movement of personnel from industry into the highest levels of strategic decision-making. This circulation is complemented by influential policy actors such as Michèle Flournoy (Under Secretary of Defence Under President Obama) and Antony Blinken (Secretary of State 2021 to 2025, Deputy Secretary of State 2015 to 2017), whose engagement with consultancies like WestExec Advisors further blurs the boundary between public policy and private defense interests. This pattern appears to persist under the present Trump administration, where the interplay between defense industry interests and strategic policymaking continues to shape procurement priorities and threat perceptions. Consequently, the military–industrial complex operates not merely as an external pressure group but as an internalized component of the policy process, shaping U.S. foreign policy in ways that align strategic objectives with the structural and commercial interests of the defense sector. Armed conflicts may also generate substantial commercial opportunities, as increased military spending often translates into expanded profits for defense contractors.
The influence of the pro-Israel lobby on U.S. foreign policy is best understood as a dense network of advocacy organisations, donors, policy institutes, and political actors that shape both elite consensus and decision-making within successive administrations. At the center of this network is the American Israel Public Affairs Committee, widely regarded as one of the most effective lobbying organisations in Washington, which works alongside a broader constellation of groups and donors to sustain bipartisan support for Israel. This influence is reinforced through the presence of senior policymakers and advisors with strong ideological or institutional affinities toward Israel, including Donald Trump and Benjamin Netanyahu, whose close political alignment has translated into consistent diplomatic and strategic backing. Policy decisions—ranging from the recognition of Jerusalem as Israel’s capital to continued military assistance—reflect not only geopolitical calculations but also the domestic political salience of pro-Israel advocacy within the United States. Consequently, the pro-Israel lobby operates not merely as an external pressure group but as an embedded force within the policy ecosystem, shaping U.S. foreign policy in ways that sustain a strong and often unconditional commitment to Israeli security and strategic interests. A fuller explanation of U.S. policy toward Iran emerges when the influence of both the military–industrial complex and the pro-Israel lobby is considered together. These two forces, while distinct in composition and motivation, converge in reinforcing a strategic outlook that prioritises the identification of Iran as a central threat and legitimizes the use of coercive military instruments.
Global Economic Fallout
After five weeks of sustained conflict, the trajectory of the war suggests that Iran’s strategy of resilience and asymmetric resistance is yielding tangible effects. While the United States, alongside Israel, has inflicted significant damage on Iran’s economic and military infrastructure, it has not succeeded in eroding Tehran’s capacity—or resolve—to continue the conflict through unconventional means. At the same time, Washington appears to be encountering increasing difficulty in bringing the war to a decisive conclusion, even as signs of strain emerge in its relations with key European allies. Most importantly, the repercussions of the conflict are no longer confined to the battlefield: the unfolding crisis has generated a widening economic shock that is reverberating across global markets and supply chains. It is this broader international economic impact of the war that now warrants closer examination.
The Persian Gulf conflict is rapidly sending shockwaves through the global economy. At the forefront is the energy sector: even partial disruptions to oil and gas exports from the region are driving prices sharply higher, placing severe pressure on energy-importing economies in Europe and Asia and fueling inflation worldwide. Maritime trade is also under strain, as heightened risk prompts longer shipping routes, increased freight rates, and rising war-risk premiums. These disruptions ripple through global supply chains, pushing up the cost of goods far beyond the energy sector.
Insurance costs for shipping and aviation are soaring as large zones are designated high-risk or even excluded from coverage, further elevating transport costs and pricing out smaller operators. Together, these pressures constitute a systemic economic shock: industrial production costs rise, supply chains fragment, and trade volumes contract, stressing manufacturing, logistics, and consumption simultaneously.
The cumulative effect is already slowing global growth. Major economies such as the EU, China, and India face slower expansion, while import-dependent states risk recession. Trade-driven sectors are contracting, reinforcing a scenario of high inflation and stagnating growth. Air travel is also impacted, with restricted airspace, higher fuel prices, and elevated insurance premiums driving up ticket costs and lengthening travel routes. Rising energy prices, logistics bottlenecks, and increased production costs are pushing up food prices and cost-of-living pressures, potentially forcing central banks into tighter monetary policy and slowing growth further.
Finally, global manufacturing—from chemicals and plastics to agriculture—is experiencing ripple effects as supply chain disruptions intensify shortages and price increases. The conflict in the Persian Gulf is thus not only a regional security crisis but also a catalyst for broad, interconnected economic disruptions that are reverberating across markets, trade networks, and everyday life worldwide.
(To be continued)
Midweek Review
MAD comes crashing down
The hands faithfully ploughing the soil,
And looking to harvest the golden corn,
Are slowing down with hesitation and doubt,
For they are now being told by the top,
That what nations direly need most,
Are not so much Bread but Guns,
Or better still stealth bombers and drones;
All in the WMD stockpiles awaiting use,
Making thinking people realize with a start:
‘Mutually Assured Destruction’ or MAD,
Is now no longer an arid theory in big books,
But is upon us all here and now.
By Lynn Ockersz
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