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Midweek Review

SLC, cryptocurrency and repealing of time-tested law

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A smiling President Wickremesinghe listens to Pakistan’s great fast bowler of yesteryear Wasim Akram at the LPL 2023 final played at the R. Premadasa Stadium under lights. SLC Chief Shammi Silva sits extreme left. Minister Harin Fernando sits next to Silva. Extreme right is Sagala Ratnayake. Well informed sources say utterly corrupt elements seeking to take control of the SLC are believed to be involved in a campaign to discredit the current administration. (Pic courtesy PMD)

By Shamindra Ferdinando

Justice Minister Dr. Wijeyadasa Rajapakse, PC, declared in Parliament that the winners of LPL (Lanka Premier League) 2023 B-Love Kandy had been sponsored by an enterprise that was banned in the country.

The statement was made in Parliament on 24th August. The one-time President of the Bar Association found fault with SLC (Sri Lanka Cricket) for involving B-Love Network banned here over promoting cryptocurrency.

Unfortunately, by the time the Justice Minister made the declaration President Ranil Wickremesinghe had attended the final of the LPL 2023 at the R. Premadasa Stadium on Sunday (20 Aug.). The President was accompanied by Tourism and Lands Minister Harin Fernando and Senior Advisor on National Security Sagala Ratnayake.

Among those present were senior SLC officials, including President of the Board Shammi Silva, under investigation by the National Audit Office (NAO) over extravagant spending of over Rs 67 million by the SLC for its officials, family members and friends to watch the T20 World Cup tournament played in Australia (Oct. 09-Nov. 13, 2022) and a spate of other allegations.

In the absence of Wanindu Hasaranga, Angelo Mathews led B-Love Kandy to victory over Dambulla Aura, led by Kusal Mendis.

Dr. Rajapakse told The Island that he firmly stood by what he said in Parliament regarding the LPL being a gambling den. All those who had been involved in gambling/betting, as well as promoting cryptocurrency, but accommodated in LPL, were named in Parliament, and it would be the responsibility of the powers that be to take tangible measures against the SLC, the one-time Chairman of the Committee on Public Enterprises (COPE) stressed.

“I was also invited to witness the final but didn’t attend for obvious reasons,” Minister Rajapakse said, adding that “the LPL 2023 should be thoroughly investigated, particularly against the backdrop of the NAO investigation.” The Minister recalled the SLC fared very badly before the parliamentary watchdog committee over a period of time.

However, to be fair by the sponsor, it would be pertinent to mention that Kamal Faridi, the CEO of B-Love Kandy, in an exclusive interview with Ada Derana, posted on 24 July, 2023, quite clearly referred to their role in promoting cryptocurrency.

When asked to describe the B-Love network, Faridi declared: “B-Love Network is a community of people who hold crypto coins. They are one of the main sponsors of the Kandy team and are passionate about sports and cricket.”

Faridi said that they secured the franchise of the Kandy team for a period of 10 years. The top spokesperson is on record as having said that they bought the most expensive team in the LPL without negotiations. Financier Omar Khan is the owner of B-Love Kandy, formerly Kandy Falcons, Kandy Warriors and Kandy Tuskers. B-Love Kandy is coached by legendary Pakistan cricketer Javed Miandad whereas other big names included Wasim Akram.

The Justice Minister said that the SLC owed an explanation. Sports Minister Roshan Ranasinghe couldn’t absolve himself of responsibility by simply declaring that he was not consulted by the SLC. The Minister should inquire into this matter without further delay. The Central Bank and the Monetary Board, too, should look into the issues at hand as a bankrupt country couldn’t continue to flout laws of the land.

It must be noted that the Central Bank daylight robberies that were staged as far back as 2015/16 have yet to be resolved and one of the chief architects of that robbery continues to be shielded by Singapore, even though he is a top fugitive here, but those at the highest echelons of the present regime continue to run to that city state at the drop of a hat for “consultations”. Mind you the same city state also tried to dump all its garbage here during that notorious Yahapalana regime. And there wasn’t a hum from our NGO quislings.

The disclosure of the SLC’s alliance with such enterprises would definitely attract the attention of the International Cricket Council (ICC), the Justice Minister stressed, pointing out that in terms of the recently passed Anti-Corruption law the SLC matter could be dealt with.

Lawmaker Rajapakse made a devastating attack on the SLC during the debate on NAO’s draft report on the 2022 tour of Australia. Interestingly, in spite of a prohibition order obtained from the Colombo District Court by SLC against SJB lawmaker Hesha Withana discussing the issue, the Opposition MP, however, flayed the cricket administration, using his parliamentary privilege. The Ratnapura District MP repeated allegations, based on the NAO report, regardless of the court directive, but the position taken by the Justice Minister astonished all. Such accusations couldn’t have been at a worse time for the SLC, under heavy fire over waste, corruption, irregularities and mismanagement at a time the country is experiencing severe economic difficulties.

A major controversy erupted during the opening ceremony of the LPL 2023 tournament when versatile singer Umara Sinhawansha distorted the national anthem. How much was Ms. Sinhawansha paid by SLC for her rendition of the national anthem? That, too, would come up for discussion once the LPL 2023 is subjected to a state audit.

However, the Justice Minister’s allegations are even far more damaging than the NAO report revelations as the former come under the purview of the Anti-Corruption Act.

Repealing of a time-tested Act

Who wanted to repeal Exchange Control Act No 24 of 1953? Did repealing that time-tested Act contribute to the collapse of the national economy in 2022? Dr. Wijeyadasa Rajapakse’s repeated accusations regarding the repealing of the 1953 Exchange Control Act should be thoroughly investigated as the President’s Counsel, too, had been a member of the Yahapalana government that enacted Foreign Exchange Act No 12 of 2017 at the expense of the 1953 law. The Justice Minister, in an interview with Hiru, a week ago, claimed that taking advantage of the law exporters have parked as much as USD 100 bn abroad while the country continued to struggle to meet its basic commitments.

It would be pertinent to discuss the circumstances under which the Yahapalana administration enacted the Foreign Exchange Act No 12 of 2017. In May 2017, the then President Maithripala Sirisena and Premier Ranil Wickremesinghe agreed on a mini-Cabinet reshuffle in the wake of two Treasury bond scams perpetrated in February 2015 and March 2016. Nine Cabinet Ministers and one State Minister were re-allocated fresh ministerial portfolios on the morning of 22 May, 2017. The most important and far- reaching decision in the reshuffle was the key exchange of portfolios between Finance Minister Ravi Karunanayake and Foreign Affairs Minister Mangala Samaraweera. Karunanayake received Foreign Affairs while Samaraweera got the Finance portfolio. In addition to Finance, Mangala Samaraweera received the Media Ministry. Within four months, Karunanayake resigned over corruption charges in respect of the bond scams.

It was the late Mangala Samaraweera who served as the Finance Minister when the Yahapalana government enacted the now controversial Finance Act of 2017 on 25 July, 2017. Of the 225-member Parliament, 94 voted for the Bill presented by Premier Ranil Wickremesinghe, whereas 18 voted against. A staggering 113 MPs skipped the vote. Among those who voted for the Bill were current members of the SJB. The SJB was formed by a breakaway faction of the UNP, in early 2020. Kabir Hashim and Dr. Harsha de Silva, members of the SJB economic team, were among those who voted for the Bill. Karu Jayasuriya, in his capacity as the Speaker, endorsed the Act.

In addition to safeguarding those who parked money overseas, the new law facilitated money laundering operations. In the 1953 Act section 23 regularized the foreign exchange transfers. That particular section dealt with those who sent money overseas but didn’t receive goods in terms of that transaction. But, the 2017 law conveniently omitted that. The writer intends to submit a RTI query to Parliament seeking the list of MPs who voted for the 2017 Foreign Exchange Act.

The UNP and SJB owed an explanation regarding the allegations made by Justice Minister Rajapakse. Dr. Rajapakse, too, should explain why he waited so long to raise his voice against the 2017 Exchange Control Act. The then Premier Wickremesinghe who presented that damaging Bill is the President now. The UNP leader also holds several other portfolios, including Finance and Defence. At the time the new law was brought in, Dr. Indrajith Coomaraswamy served as the Governor of the Central Bank, though the government didn’t consult him as regards the new law.

Several months ago, rebel SLPP lawmakers, Vasudeva Nanayakkara, Wimal Weerawansa and Udaya Gammanpila raised the grave injustice caused to the country by the highly questionable Act passed in 2017. Dr. Rajapakse, too, discussed this matter, both in and outside Parliament, several months ago. But, so far, the government hasn’t responded to the accusations pertaining to the 2017 Foreign Exchange Act. In responding to The Island query, Dr. Rajapakse said that he offered assistance to the relevant authorities to amend the law but didn’t receive the anticipated response. The bottom line is that the Parliament enacted an Act at the expense of overall national security and stability.

Shocking revelation at PSC

The Parliamentary Select Committee, assigned to investigate the 2019 Easter Sunday carnage, raised the Foreign Exchange Control Act of 2017, with the Central Bank, on 26 July, 2019. The CBSL team comprised the Governor of the Central Bank, Indrajit Coomaraswamy, Director of Financial Intelligence Unit, D.M. Rupasinghe, and Director of the Department of Supervision of Non-Bank Financial Institutions R.R. Jayaratne. Rupasinghe testified in-camera on a request made by Dr. Coomaraswamy. Dr. Coomaraswamy succeeded disgraced Singaporean, Arjuna Mahendran, in early July, 2016.

The CBSL set the record straight in response to then Power, Energy and Business Development Minister Ravi Karunanayake’s challenge. PSC member Karunanayake strongly countered CBSL condemnation of the Foreign Exchange Act of 2017. Commenting on funds received by the Batticaloa Campus Limited and the Heera Foundation from Saudi Arabia on seven and 15 occasions, respectively, the CBSL stressed that the new Act weakened the CBSL regulatory role, vis-a-vis illegal transactions. Those institutions were under investigations as regards the 2019 Easter Sunday attacks due to their links with the National Thowheed Jamaat (NTJ), blamed for those devastating attacks.

The PSC proceedings showed how politicians caused irreparable damage through unilateral actions. Ravi Karunanayake, who had been again brought back to the Cabinet, after the failed constitutional coup, in late 2018, clashed with the Central Bank over the enactment of the new law. The CBSL took an unwavering stand that the new law impeded its regulatory powers thereby facilitating illegal transactions.

Ravi Karunanayake (RK): Where does it say such transactions cannot be inquired into in terms of the new Act?

CBSL: In accordance with 2017 Exchange Control Act, Section 30, action cannot be taken.

RK: You prepared that Act. Why are you pretending as if you don’t know anything about it? CBSL amended it several times and sent it back.

Director of the Department of Supervision of Non-Bank Financial Institutions R.R. Jayaratne could have faced a ministerial onslaught if not for Dr. Coomaraswamy’s swift intervention. Had Dr. Coomaraswamy opted to remain silent, Jayaratne, probably would have had to suffer in silence unable to talk back to a powerful Minister

Dr. Coomaraswamy: No Sir. The Act actually was not drafted by us.

RK: Why not?

Dr. Coomaraswamy: No Sir. It was done outside. We were actually very upset about it. We were not included. That was drafted without the CBSL being involved. We were asked to comment on it

JVP MP Dr. Nalinda Jayatissa: If the Batticaloa Campus last received money in 2017, Hizbullah was aware of the new Act being drafted.

CBSL: Yes.

Nalinda Jayatissa: It could have happened.

CBSL: Present Act does not at least interpret what it meant by wrong. Unauthorized money transactions were taking place all over the country. Foreign currencies are kept illegally. Transactions do not come into the official banking system, not even one USD.

The exchange between Ravi Karunanayake and the CBSL erupted when lawmaker Ashu Marasinghe sought a clarification as regards the difference in the current and the previous Exchange Control Acts. The then Chairman of the Public Finance Committee M.A. Sumanthiran remained silent during the exchange between Ravi Karunanayake and the CBSL.

The circumstances of the Exchange Control Act that had been introduced was disputed by no less a person than the CBSL Governor. It would be pertinent to recall the advice given by Dr. Coomaraswamy to the electorate late 2018. Dr. Coomaraswamy issued the advice before President Maithripala Sirisena dissolved Parliament at midnight on 09 Nov., 2018, following the sacking of Premier Ranil Wickremesinghe.

Dr. Coomaraswamy’s statement, made before the Presidential Commission of Inquiry (PCol) on irregularities at SriLankan Airlines, SriLankan Catering and Mihin Lanka is relevant as Sri Lanka struggles to navigate difficulties. Dr. Coomaraswamy told the PCol that the country was facing a non-virtuous cycle of debt and it was a very fragile situation which could even lead to a debt crisis. “Of course my colleagues in the Debt Department have plans and capability to manage it. But it’s the duty of every citizen to act responsibly as regards the government policy,” he told the PCol. Dr. Coomaraswamy emphasized that people should elect MPs who were prudent enough to handle fiscal and monetary matters of the country. “I am not referring to any government, but it’s been the case ever since independence.”

In spite of knowing that the Exchange Control Act of 2017 is seriously flawed, political parties have done nothing so far to bring forth remedial measures, especially by those now wielding power. Perhaps the Committee on Public Finance should inquire into this. The Parliament should be ashamed of its failure to address this issue.

Lapses on the part of Parliament

The pathetic failure on the part of Parliament to deal with gold smuggling MP Ali Sabry Raheem (Puttalam District MP representing the Muslim National Alliance), for over five months, underscored the crisis the country is experiencing. Many an eyebrow was raised when the disgraced MP Raheem attended a meeting, chaired by President Ranil Wickremesinghe at the Presidential Secretariat,where ways and means of strengthening the gem and jewellery industry was discussed. Raheem was there as a member of the Sectoral Monitoring Committee on Environment, Natural Resources and Sustainable Development.

The Parliament owed an explanation why it couldn’t take action against the offending MP. The All Ceylon Makkal Congress (ACMC) that fielded Raheem on the MNA ticket, too, should be held responsible. The first time entrant, who was fined much less than any other offender after being caught with 3.3 kgs of gold and 91 smartphones valued at Rs. 74 mn and Rs. 4.2 mn, respectively, in late March this year, caused quite a stir when he voted in Parliament immediately after the disgraceful incident.

The President’s Office obviously failed in its basic responsibilities by inviting the culprit for a meeting with the President. But, the President’s appearance at the LPL final stressed that the ongoing controversy over massive financial irregularities didn’t matter at all. The question that must be popping up in the heads of most Lankans is are we being governed by baby faced bandits. Political party system continues to emphasize that regardless of whatever transgression, alleged wrongdoers can continue with impunity. There cannot be a better example to prove the shoddy way Parliament addressed issues of utmost importance than the gold smuggling’s MP’s affair.

The recent call by the Leader of the House Susil Premjayantha to summon MP Raheem before the parliamentary ethics committee, over five months after the incident at the BIA, must be nothing but another bid to side-step the issue.



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Midweek Review

How massive Akuregoda defence complex was built with proceeds from sale of Galle Face land to Shangri-La

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Defence Headquarters Complex (DHQC) at Akuregoda

The Navy ceremonially occupied its new Headquarters (Block No. 3) at the Defence Headquarters Complex (DHQC) at Akuregoda, Battaramulla, on 09 December, 2025. On the invitation of the Commander of the Navy, Vice Admiral Kanchana Banagoda, the Deputy Minister of Defence, Major General Aruna Jayasekara (Retd) attended the event as the Chief Guest.

Among those present were Admiral of the Fleet Wasantha Karannagoda, the Defence Secretary, Air Vice Marshal Sampath Thuyacontha (Retd), Commander of the Army, Lieutenant General Lasantha Rodrigo, Commander of the Air Force, Air Marshal Bandu Edirisinghe, Inspector General of Police, Attorney-at-Law Priyantha Weerasooriya and former Navy Commanders.

With the relocation of the Navy at DHQC, the much-valued project to shift the Ministry of Defence (MoD) and Headquarters of the war-winning armed forces has been brought to a successful conclusion. The Army was the first to move in (November 2019), the MoD (May 2021), the Air Force (January 2024) and finally the Navy (in December 2025).

It would be pertinent to mention that the shifting of MoD to DHQC coincided with the 12th anniversary of bringing back the entire Northern and Eastern Provinces under the government, on 18 May, 2009. LTTE leader Velupillai Prabhakaran was killed on the following day.

The project that was launched in March 2011, two years after the eradication of the Liberation Tigers of Tamil Eelam (LTTE), suffered a severe setback, following the change of government in 2015. The utterly irresponsible and treacherous Yahapalana government halted the project. That administration transferred funds, allocated for it, to the Treasury, in the wake of massive Treasury bond scams perpetrated in February and March 2015, within weeks after the presidential election.

Maithripala Sirisena, in his capacity as the President, as well as the Minister of Defence, declared open the new Army Headquarters, at DHQC, a week before the 2019 presidential election. Built at a cost of Rs 53.3 bn, DHQC is widely believed to be the largest single construction project in the country. At the time of the relocation of the Army, the then Lt. Gen. Shavendra Silva, the former Commanding Officer of the celebrated Task Force I/58 Division, served as the Commander.

Who made the DHQC a reality? Although most government departments, ministries and armed forces headquarters, were located in Colombo, under the Colombo Master Plan of 1979, all were required to be moved to Sri Jayewardenepura, Kotte. However successive administrations couldn’t go ahead with the massive task primarily due to the conflict. DHQC would never have been a reality if not for wartime Defence Secretary Gotabaya Rajapaksa who determinedly pursued the high-profile project.

The absence of any reference to the origins of the project, as well as the significant role played by Gotabaya Rajapaksa at the just relocated Navy headquarters, prompted the writer to examine the developments related to the DHQC. The shifting of MoD, along with the Armed Forces Headquarters, was a monumental decision taken by Mahinda Rajapaksas’s government. But, all along it had been Gotabaya Rajapaksa’s determination to achieve that monumental task that displeased some within the administration, but the then Defence Secretary, a former frontline combat officer of the battle proved Gajaba Regiment, was not the type to back down or alter his strategy.

GR’s maiden official visit to DHQC

Gotabaya Rajapaksa, who made DHQC a reality, visited the sprawling building in his capacity as the President, Defence Minister and the Commander-in-Chief of the Armed Forces on the morning of 03 August, 2021. It was Gotabaya Rajapaksa’s maiden official visit to the Army Headquarters, located within the then partially completed DHQC, eight months before the eruption of the externally backed ‘Aragalaya.’ The US-Indian joint project has been exposed and post-Aragalaya developments cannot be examined without taking into consideration the role played by political parties, the Bar Association of Sri Lanka, media, as well as the weak response of the political leadership and the armed forces. Let me stress that a comprehensive probe should cover the period beginning with the Swiss project to humiliate President Gotabaya Rajapaka in November, 2019, by staging a fake abduction, and the storming of the President’s House in July 2022. How could Sri Lanka forget the despicable Swiss allegation of sexual harassment of a female local employee by government personnel, a claim proved to be a blatant lie meant to cause embarrassment to the newly elected administration..

Let me get back to the DHQC project. The war-winning Mahinda Rajapaksa government laid the foundation for the building project on 11 May, 2011, two years after Sri Lanka’s triumph over the separatist Tamil terrorist movement. The high-profile project, on a 77-acre land, at Akuregoda, Pelawatta, was meant to bring the Army, Navy, and the Air Force headquarters, and the Defence Ministry, to one location.

President Gotabaya Rajapaksa’s visit to Akuregoda would have definitely taken place much earlier, under a very different environment, if not for the eruption of the Covid-19 pandemic, just a few months after his victory at the November 2019 election. The worst post-World War II crisis that had caused devastating losses to national economies, the world over, and delivered a staggering blow to Sri Lanka, heavily dependent on tourism, garment exports and remittances by its expatriate workers.

On his arrival at the new Army headquarters, President Gotabaya Rajapaksa was welcomed by General Shavendra Silva, who also served as the Chief of Defence Staff. Thanks to the President’s predecessor, Maithripala Sirisena, the then Maj. Gen Shavendra Silva was promoted to the rank of Lt. Gen and appointed the Commander of the Army on 18 August, 2019, just three months before the presidential poll. The appointment was made in spite of strong opposition from the UNP leadership and US criticism.

President Gotabaya Rajapaksa hadn’t minced his words when he publicly acknowledged the catastrophe caused by the plunging of the national income and the daunting challenge in debt repayment, amounting to as much as USD 4 bn annually.

The decision to shift the tri-forces headquarters and the Defence Ministry (The Defence Ministry situated within the Army Headquarters premises) caused a media furor with the then Opposition UNP alleging a massive rip-off. Defence Secretary Gotabaya Rajapaksa reiterated his commitment to the project. If not for the change of government in 2015, the DHQC would have been completed during Mahinda Rajapaksa’s third term if he was allowed to contest for a third term successfully. Had that happened, Gotabaya Rajapaksa wouldn’t have emerged as the then Opposition presidential candidate at the 2019 poll. The disastrous Yahapalana administration and the overall deterioration of all political parties, represented in Parliament, and the 19th A that barred Mahinda Rajapaksa from contesting the presidential election, beyond his two terms, created an environment conducive for Gotabaya Rajapaksa’s emergence as the newly registered SLPP’s candidate.

Shangri-La move

During the 2019 presidential election campaign, SLPP candidate Gotabaya Rajapaksa strongly defended his decision to vacate the Army Headquarters, during Mahinda Rajapaksa presidency, to pave the way for the Shangri-La Hotel in Colombo. Shangri-La was among the hotels targeted by the Easter Sunday bombers – the only location targeted by two of them, including mastermind Zahran Hashim.

President Gotabaya Rajapaksa is on record as having said that vacation of the site had been in accordance with first executive President J.R. Jayewardene’s decision to move key government buildings away from Colombo to the new Capital of the country at Sri Jaywardenepura. Gotabaya Rajapaksa said so in response to the writer’s queries years ago.

Gotabaya Rajapaksa said that a despicable attempt was being made to blame him for the Army Headquarters land transaction. “I have been accused of selling the Army Headquarters land to the Chinese.”

Rajapaksa explained that Taj Samudra, too, had been built on a section of the former Army Headquarters land, previously used to accommodate officers’ quarters and the Army rugger grounds. Although President Jayewardene had wanted the Army Headquarters shifted, successive governments couldn’t do that due to the war and lack of funds, he said.

President Maithripala Sirisena and Prime Minister Ranil Wickremesinghe declared open Shangri-La Colombo on 16 November, 2017. The Hong Kong-based Shangri-La Asia invited Gotabaya Rajapaksa for dinner, the following day, after the opening of its Colombo hotel. Shangri-La Chairperson, Kuok Hui Kwong, the daughter of Robert Kuok Khoon Ean, was there to welcome Gotabaya Rajapaksa, who had cleared the way for the post-war mega tourism investment project. Among those who had been invited were former President Mahinda Rajapaksa, former External Affairs Minister Prof. G.L. Peiris, former Presidential Secretary Lalith Weeratunga, and President’s Counsel Gamini Marapana, PC.

The Cabinet granted approval for the high-profile Shangri-La project in October 2010 and the ground-breaking ceremony was held in late February 2012.

Rajapaksa said that the Shangri-La proprietor, a Chinese, ran a big operation, based in Hong Kong, Malaysia and Singapore. Another parcel of land was given to the mega ITC hotel project, also during the previous Rajapaksa administration. ITC Ratnadipa, a super-luxury hotel by India’s ITC Hotels, officially opened in Colombo on April 25, 2024

Following the change of government in January 2015, the remaining section of the Army headquarters land, too, was handed over to Shangri-La.

Gotabaya Rajapaksa emphasised that the relocation of the headquarters of the Army, Navy, and Air Force, as well as the Defence Ministry, had been part of JRJ’s overall plan. The change of government, in January 2015, had caused a serious delay in completing the project and it was proceeding at a snail’s pace, Rajapaksa said. Even Parliament was shifted to Kotte in accordance with JRJ’s overall plan, Gotabaya Rajapaksa said, explaining his move to relocate all security forces’ headquarters and Defence Ministry into one complex at Akuregoda.

Acknowledging that the Army Headquarters had been there at Galle Face for six decades, Rajapaksa asserted that the Colombo headquarters wasn’t tactically positioned.

Rajapaksa blamed the inordinate delay in the completion of the Akuregoda complex on the Treasury taking hold of specific funds allocated for the project.

Over 5,000 military workforce

Gotabaya Rajapaksa’s maiden visit to DHQC on 3 August, 2021. General
Shavendra Silva is beside him

Major General Udaya Nanayakkara had been the first Director, Project Management Unit, with overall command of approximately 5,000 tri-forces personnel assigned to carry it out. The Shangri-La transaction provided the wherewithal to implement the DHQC project though the change of government caused a major setback. Nanayakkara, who had served as the Military Spokesman, during Eelam War IV, oversaw the military deployment, whereas private contractors handled specialised work such as piling, AC, fire protection and fire detection et al. The then MLO (Military Liaison Officer) at the Defence Ministry, Maj. Gen Palitha Fernando, had laid the foundation for the project and the work was going on smoothly when the Yahapalana administration withheld funds. Political intervention delayed the project and by September 2015, Nanayakkara was replaced by Maj Gen Mahinda Ambanpola, of the Engineer Service.

In spite of President Sirisena holding the Defence portfolio, he couldn’t prevent the top UNP leadership from interfering in the DHQC project. However, the Shangri-La project had the backing of A.J.M. Muzammil, the then UNP Mayor and one of the close confidants of UNP leader Ranil Wickremesinghe. Muzammil was among those present at the ground breaking ceremony for Shangri-La held on 24th February, 2012 ,with the participation of Minister Basil Rajapaksa.

Having identified the invaluable land, where the Army Headquarters and Defence Ministry were situated, for its project, Shangri-La made its move. Those who had been aware of Shangri-La’s plans were hesitant and certainly not confident of their success. They felt fearful of Defence Secretary Rajapaksa’s reaction.

But, following swift negotiations, they finalised the agreement on 28 December, 2010. Lt. Gen. Jagath Jayasuriya was the then Commander of the Army, with his predecessor General Fonseka in government custody after having been arrested within two weeks after the conclusion of the 2010 26 January Presidential poll.

Addressing the annual Viyathmaga Convention at Golden Rose Hotel, Boralesgamuwa, on 04 March, 2017, Gotabaya Rajapaksa, perhaps for the first time publicly discussed his role in the Shangri-La project. Declaring that Sri Lanka suffered for want of, what he called, a workable formula to achieve post-war development objectives, the war veteran stressed the pivotal importance of swift and bold decision-making.

Gotabaya Rajapaksa explained how the government had acted swiftly, and decisively, to attract foreign investments though some such efforts were not successful. There couldn’t be a better example than the government finalising an agreement with Shangri-La Hotels, he declared.

Declaring that the bureaucratic red tape shouldn’t in any way be allowed to undermine investments, Rajapaksa recalled the Chairman/CEO of Shangri-La Hotels and Resorts, Robert Kuok Khoon Ean, wanting the Army Headquarters land for his Colombo project. In fact, the hotels chain, at the time, had proposed to build hotels in Colombo, Hambantota and Batticaloa, and was one of the key investors wanting to exploit Sri Lanka’s success in defeating terrorism.

“Khoon-Ean’s request for the Army Headquarters land caused a serious problem for me. It was a serious challenge. How could I shift the headquarters of the war-winning Army? The Army had been there for six decades. It had been the nerve centre of the war effort for 30 years,” said Rajapaksa, who once commanded the First Battalion of the Gajaba Regiment (1GR)

Rajapaksa went on to explain how he exploited a decision taken by the first executive president J.R. Jayewardene to shift the Army Headquarters to Battaramulla, many years back. “Within two weeks, in consultation with the Secretary to the Finance Ministry, Dr. P.B. Jayasundera, and the Board of Investment, measures were taken to finalise the transaction. The project was launched to shift the Army, Navy and Air Force headquarters to Akuregoda, Pelawatte, in accordance with JRJ’s plan.”

The Hong Kong-based group announced the purchase of 10 acres of state land, in January 2011. Shangri-La Asia Limited announced plans to invest over USD 400 mn on the 30-storeyed star class hotel with 661 rooms.

The hotel is the second property in Sri Lanka for the leading Asian hospitality group, joining Shangri-La’s Hambantota Resort & Spa, which opened in June 2016.

Rajapaksa said that the top Shangri-La executive had referred to the finalisation of their Colombo agreement to highlight the friendly way the then administration handled the investment. Shangri-La had no qualms about recommending Sri Lanka as a place for investment, Rajapaksa said.

The writer explained the move to shift the Army Headquarters and the Defence Ministry from Colombo in a lead story headlined ‘Shangri-La to push MoD, Army Hq. out of Colombo city: Army Hospital expected to be converted into a museum’ (The Island, 04 January, 2011).

Yahapalana chaos

In the wake of the January 2015 change of government, the new leadership caused chaos with the suspension of the China-funded Port City Project, a little distance away from the Shangri-La venture. Many an eyebrow was raised when the then Finance Minister Ravi Karunanayake declared, in March, 2015, that funds wouldn’t be made available to the DHQC project until the exact cost estimation of the project could be clarified.

Media quoted Karunanayake as having said “Presently, this project seems like a bottomless pit and we need to know the depth of what we are getting into. From the current state of finances, allocated for this project, it seems as if they are building a complex that’s even bigger than the Pentagon!”

The insinuating declaration was made despite them having committed the blatant first Treasury bond scam in February 2015 that shook the Sirisena-Wickremesinghe administration to its core.

In June 2016, Cabinet spokesperson, Dr. Rajitha Senaratne, announced the suspension of the Akuregoda project. Citing financial irregularities and mismanagement of funds, Dr. Senaratne alleged that all Cabinet papers on the project had been prepared according to the whims and fancies of Gotabaya Rajapaksa.

The then Minister Karunanayake spearheaded the campaign against the DHQC project alleging, in the third week of January, 2015, that Rs 13.2 billion, in an account maintained at the Taprobane branch of the Bank of Ceylon had been transferred to the Consolidated Fund of the Treasury. The matter was being investigated as the account belonged to the Ministry of Defence, he added. The Finance Minister stressed that the MoD had no right to maintain such an account in violation of regulations and, therefore, the opening of the account was being investigated. The Minister alleged that several illegal transactions, including one involving Samurdhi, had come to light. He estimated the Samurdhi transaction (now under investigation) at Rs. 4 billion.

Having undermined Shangri-La and the DHQC projects, the UNP facilitated the expansion of the hotel project by releasing additional three and half acres on a 99-year lease. During the Yahapalana administration, Dayasiri Jayasekera disclosed at a post-Cabinet press briefing how the government leased three and a half acres of land at a rate of Rs. 13.1 mn per perch whereas the previous administration agreed to Rs 6.5 mn per perch. According to Jayasekera the previous government had leased 10 acres at a rate of Rs 9.5 mn (with taxes) per perch.

The bottom line is that DHQC was built with Shangri-La funds and the initiative was Gotabaya Rajapaksa’s whose role as rock solid wartime Secretary of Defence to keep security forces supplied with whatever their requirements could never be compared with any other official during the conflict.

By Shamindra Ferdinando

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Midweek Review

The Hour of the Invisible

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Picking-up the pieces in the bashed Isle,

Is going to take quite a long while,

And all hands need to be united as one,

To give it even a semblance of its former self,

But the more calloused and hardy the hands,

The more suitable are they for the task,

And the hour is upon us you could say,

When those vast legions of invisible folk,

Those wasting away in humble silent toil,

Could stand up and be saluted by all,

As being the most needed persons of the land

By Lynn Ockersz

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Features

Handunnetti and Colonial Shackles of English in Sri Lanka

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Handunetti at the World Economic Forum

“My tongue in English chains.
I return, after a generation, to you.
I am at the end
of my Dravidic tether
hunger for you unassuaged
I falter, stumble.”
– Indian poet R. Parthasarathy

When Minister Sunil Handunnetti addressed the World Economic Forum’s ‘Is Asia’s Century at Risk?’ discussion as part of the Annual Meeting of the New Champions 2025 in June 2025, I listened carefully both to him and the questions that were posed to him by the moderator. The subsequent trolling and extremely negative reactions to his use of English were so distasteful that I opted not to comment on it at the time. The noise that followed also meant that a meaningful conversation based on that event on the utility of learning a powerful global language and how our politics on the global stage might be carried out more successfully in that language was lost on our people and pundits, barring a few commentaries.

Now Handunnetti has reopened the conversation, this time in Sri Lanka’s parliament in November 2025, on the utility of mastering English particularly for young entrepreneurs. In his intervention, he also makes a plea not to mock his struggle at learning English given that he comes from a background which lacked the privilege to master the language in his youth. His clear intervention makes much sense.

The same ilk that ridiculed him when he spoke at WEF is laughing at him yet again on his pronunciation, incomplete sentences, claiming that he is bringing shame to the country and so on and so forth. As usual, such loud, politically motivated and retrograde critics miss the larger picture. Many of these people are also among those who cannot hold a conversation in any of the globally accepted versions of English. Moreover, their conceit about the so-called ‘correct’ use of English seems to suggest the existence of an ideal English type when it comes to pronunciation and basic articulation. I thought of writing this commentary now in a situation when the minister himself is asking for help ‘in finding a solution’ in his parliamentary speech even though his government is not known to be amenable to critical reflection from anyone who is not a party member.

The remarks at the WEF and in Sri Lanka’s parliament are very different at a fundamental level, although both are worthy of consideration – within the realm of rationality, not in the depths of vulgar emotion and political mudslinging.

The problem with Handunnetti’s remarks at WEF was not his accent or pronunciation. After all, whatever he said could be clearly understood if listened to carefully. In that sense, his use of English fulfilled one of the most fundamental roles of language – that of communication. Its lack of finesse, as a result of the speaker being someone who does not use the language professionally or personally on a regular basis, is only natural and cannot be held against him. This said, there are many issues that his remarks flagged that were mostly drowned out by the noise of his critics.

Given that Handunnetti’s communication was clear, it also showed much that was not meant to be exposed. He simply did not respond to the questions that were posed to him. More bluntly, a Sinhala speaker can describe the intervention as yanne koheda, malle pol , which literally means, when asked ‘Where are you going?’, the answer is ‘There are coconuts in the bag’.

He spoke from a prepared text which his staff must have put together for him. However, it was far off the mark from the questions that were being directly posed to him. The issue here is that his staff appears to have not had any coordination with the forum organisers to ascertain and decide on the nature of questions that would be posed to the Minister for which answers could have been provided based on both global conditions, local situations and government policy. After all, this is a senior minister of an independent country and he has the right to know and control, when possible, what he is dealing with in an international forum.

This manner of working is fairly routine in such international fora. On the one hand, it is extremely unfortunate that his staff did not do the required homework and obviously the minister himself did not follow up, demonstrating negligence, a want for common sense, preparedness and experience among all concerned. On the other hand, the government needs to have a policy on who it sends to such events. For instance, should a minister attend a certain event, or should the government be represented by an official or consultant who can speak not only fluently, but also with authority on the subject matter. That is, such speakers need to be very familiar with the global issues concerned and not mere political rhetoric aimed at local audiences.

Other than Handunnetti, I have seen, heard and also heard of how poorly our politicians, political appointees and even officials perform at international meetings (some of which are closed door) bringing ridicule and disastrous consequences to the country. None of them are, however, held responsible.

Such reflective considerations are simple yet essential and pragmatic policy matters on how the government should work in these conditions. If this had been undertaken, the WEF event might have been better handled with better global press for the government. Nevertheless, this was not only a matter of English. For one thing, Handunnetti and his staff could have requested for the availability of simultaneous translation from Sinhala to English for which pre-knowledge of questions would have been useful. This is all too common too. At the UN General Assembly in September, President Dissanayake spoke in Sinhala and made a decent presentation.

The pertinent question is this; had Handunetti had the option of talking in Sinhala, would the interaction have been any better? That is extremely doubtful, barring the fluency of language use. This is because Handunnetti, like most other politicians past and present, are good at rhetoric but not convincing where substance is concerned, particularly when it comes to global issues. It is for this reason that such leaders need competent staff and consultants, and not mere party loyalists and yes men, which is an unfortunate situation that has engulfed the whole government.

What about the speech in parliament? Again, as in the WEF event, his presentation was crystal clear and, in this instance, contextually sensible. But he did not have to make that speech in English at all when decent simultaneous translation services were available. In so far as content was concerned, he made a sound argument considering local conditions which he knows well. The minister’s argument is about the need to ensure that young entrepreneurs be taught English so that they can deal with the world and bring investments into the country, among other things. This should actually be the norm, not only for young entrepreneurs, but for all who are interested in widening their employment and investment opportunities beyond this country and in accessing knowledge for which Sinhala and Tamil alone do not suffice.

As far as I am concerned, Handunetti’s argument is important because in parliament, it can be construed as a policy prerogative. Significantly, he asked the Minister of Education to make this possible in the educational reforms that the government is contemplating.

He went further, appealing to his detractors not to mock his struggle in learning English, and instead to become part of the solution. However, in my opinion, there is no need for the Minister to carry this chip on his shoulder. Why should the minister concern himself with being mocked for poor use of English? But there is a gap that his plea should have also addressed. What prevented him from mastering English in his youth goes far deeper than the lack of a privileged upbringing.

The fact of the matter is, the facilities that were available in schools and universities to learn English were not taken seriously and were often looked down upon as kaduwa by the political spectrum he represents and nationalist elements for whom the utilitarian value of English was not self-evident. I say this with responsibility because this was a considerable part of the reality in my time as an undergraduate and also throughout the time I taught in Sri Lanka.

Much earlier in my youth, swayed by the rhetoric of Sinhala language nationalism, my own mastery of English was also delayed even though my background is vastly different from the minister. I too was mocked, when two important schools in Kandy – Trinity College and St. Anthony’s College – refused to accept me to Grade 1 as my English was wanting. This was nearly 20 years after independence. I, however, opted to move on from the blatant discrimination, and mastered the language, although I probably had better opportunities and saw the world through a vastly different lens than the minister. If the minister’s commitment was also based on these social and political realities and the role people like him had played in negating our English language training particularly in universities, his plea would have sounded far more genuine.

If both these remarks and the contexts in which they were made say something about the way we can use English in our country, it is this: On one hand, the government needs to make sure it has a pragmatic policy in place when it sends representatives to international events which takes into account both a person’s language skills and his breadth of knowledge of the subject matter. On the other hand, it needs to find a way to ensure that English is taught to everyone successfully from kindergarten to university as a tool for inclusion, knowledge and communication and not a weapon of exclusion as is often the case.

This can only bear fruit if the failures, lapses and strengths of the country’s English language teaching efforts are taken into cognizance. Lamentably, division and discrimination are still the main emotional considerations on which English is being popularly used as the trolls of the minister’s English usage have shown. It is indeed regrettable that their small-mindedness prevents them from realizing that the Brits have long lost their long undisputed ownership over the English language along with the Empire itself. It is no longer in the hands of the colonial masters. So why allow it to be wielded by a privileged few mired in misplaced notions of elitism?

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