Midweek Review
SLC, cryptocurrency and repealing of time-tested law

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.
Midweek Review
Raid on ‘Millennium City’ DMI safe-house:

A forgotten story (part 1)
Colombo High Court Judge Adithya Patabendi, on March 27, 2025, acquitted former ASP Kulasiri Udugampola, who had been indicted over the Kandy police raid on a safe house run by the Directorate of Military Intelligence (DMI) at the Millennium City housing complex, Athurugiriya. The raid, conducted in the first week of January 2002, sent shock waves through the defence establishment. Delivering the judgment, 23 years after the raid, Patabendi declared that the prosecution failed to prove the charges beyond a reasonable doubt.
The Dec. 5, 2001 parliamentary election was conducted at the height of the war in the North. Having gained the upper hand in the battlefield, the LTTE was working on a Ceasefire Agreement with Norway. The country was in turmoil with President Chandrika Bandaranaike Kumaratunga, who survived an LTTE suicide blast at the final rally of her Dec. 1999 presidential election campaign, struggling to overcome a sustained UNP offensive.
In the run-up to the Dec. 5, 2001 parliamentary polls, UNP leader, Ranil Wickremesinghe accused the Directorate of Military Intelligence (DMI) of planning to assassinate him. The UNPer claimed that the DMI was training Tamil terrorists at the Panaluwa Army Testing Range to mount an attack on his campaign bus, as well as his political rallies.
The unprecedented accusation placed the war-weary Army in an extremely embarrassing position when it was actually turning tables on the enemy using its own tactics in areas considered by then as being off limits for security forces. The UNP, with no shame, brazenly exploited the made-up threat as the main Opposition party and its allies, including a treacherous section of the media, stepped-up pressure on the Army to no end.
On the instructions of Wickremesinghe, UNP Chairman Charitha Ratwatte and Deputy Chairman Daya Palpola wrote a hard-hitting letter to Army Commander, Lt. Gen. Lionel Balagalle warning that he would be held responsible ‘in the event of an unfortunate incident’. The UNP duo accused the Army chief of training personnel to engage in a destabilisation campaign against the UNP.
An irate Army Commander, Lt. Gen. Balagalle in reply addressed a letter to Ratwatte and Palpola dismissing their accusations. The Island, in a front-page exclusive headlined ‘Army chief says no truth in UNP claims,’ in its Nov, 11, 2001 edition that revealed the exchange between Army headquarters and Sirikotha.
The report was based on what Lt. Gen. Balagalle had told this writer the previous evening. The Army chief, himself a one-time head of the Directorate of Military Intelligence (DMI), said that there was absolutely no basis for the UNP allegation that a hit squad was undergoing training in the use of high explosives and thermobaric weapons to attack Wickremesinghe.
The UNP ignored the Army chief’s letter. The allegation was repeated throughout the campaign. The raid on the DMI safe-house should be examined against the backdrop of the exchange between the Army commander and Sirikotha.
It was somewhat reminiscent of the JVP tactic to tarnish all others who had ruled the country since independence as being A Grade crooks to come to power with a record majority they couldn’t have even dreamt of knowing their sordid past. The trick was to repeat a lie long enough with the help of Western funded international and local NGO quislings and the gullible masses believed it.
Amidst a furore over the UNP allegation that the Army conspired to assassinate Wickremesinghe, Army operatives blew up a truck behind enemy lines killing five LTTE cadres on Dec. 11, 2001. Then again, they destroyed an LTTE bunker, at the entrance to a base used by Karuna, in the Kokkadicholai area, on Dec. 21, 2001.
Although the Army had conducted a successful small group operation in the Batticaloa District, targeting a key LTTE operative identified as David, way back in 1992, there was no attempt on the part of the military to develop the capability further. But some officers had been keen to promote small group operations to weaken the LTTE and beat it at its own game.
Commenting on the elimination of David, a veteran in clandestine operations told the writer of the deep penetrations ops: “Three personnel took part in the targeted killing of David. They returned to base after achieving the given task. Such operations caused chaos in enemy territory which gave us the psychological advantage over them. We knew of the importance as well as the need to strike within the enemy-controlled areas, though a special strategy on clandestine operations was adopted only in 2001, almost a decade after the hit on David.”
Speaking on condition of anonymity, the soft-spoken official explained the circumstances under which the Army launched deep penetration units soon after one-time Director of the DMI Lionel Balagalle had been appointed Commander of the Army.
Balagalle couldn’t resist the temptation to explore the possibility of infiltrating areas outside government controlled regions to launch attacks. “It was a tremendous task. Those who volunteered to join the operation realised the risks they were taking. They were among the best and they courageously adopted the new doctrine, which enabled us to carry out targeted killings. It was nothing but a high risk operation, though it produced results. They had to curtail their movements, particularly in the Eastern Province, where we used Batticaloa as the centre of our operations.”
Then Brigadier Kapila Hendarawithana executed the operation in his capacity as Director of DMI.
The LTTE realised the danger. Within months after the launch of the first DMI raid in the Batticaloa District, the LTTE pushed for the suspension of the DMI operation. The February 23, 2002 Ceasefire Agreement (CFA), arranged by the Norwegians, included a clause which specifically dealt with DMI action. The CFA called for the suspension of operations behind LTTE lines. While the LTTE had been successful in its negotiations with the Norwegians and the then inept UNP government with Executive President Chandrika Kumaratunga reduced to more or less a figurehead, the DMI suffered a debilitating setback when that regime with hardly any feelings for our valiant fighting men risking their lives day and night, ordered a police raid on an Army safe-house used by a deep penetration team at Athurugiriya.
The UNP-led United National Front (UNF) emerged victorious at the Dec. 5, 2001 general election with 109 seats, while the defeated PA managed to secure 77 seats. The remaining seats were shared by the JVP (16), the TNA (15), the SLMC (5), the EPDP (2) and the DPLF (01).
Balgalle on ops behind enemy lines
It had been one of the bloodiest elections with the five-week campaign claiming the lives of almost 50 people, with the polls day massacre of a group of SLMC supporters at Udathalawinna being the single worst incident. This massacre carried out by troops attached to the Vijayaba Infantry Regiment (VIR) who had been brought to Kandy at the behest of de facto Defence Minister Anuruddha Ratwatte was used as an excuse by a vindictive UNP leadership to order the raid on the safe house used by the DMI situated at Millennium City, Athurugiriya, on Jan. 2, 2002, which changed the course of the conflict. The UNF cited intelligence reports that Anuruddha Ratwatte’s sons, wanted in connection with the Udathalawinna massacre, were taking refuge at Athurugiriya.
Had the UNP leadership been a little cautious, it would never have publicly accused the Army of an assassination plot. Lt. Gen. Balagalle discussed the issues at hand with the writer. Operating hit squads behind enemy lines had been a key element in the Army’s strategy to give it a taste of its own medicine, the Army chief said at that time, alleging the then Opposition had failed to grasp what was going on. The Island quoted Lt. Gen. Balagalle as having said: “Had they quietly raised the issue with us and sought a clarification without playing politics with national security, the Athurugiriya fiasco could have been averted. Even ex-LTTE cadres were brought in for operations along with valuable input from civilian informants. We were successful due to many reasons such as training from Pakistani instructors. We also accommodated troops from other fighting battalions to engage in operations behind enemy lines, though the Special Forces and Army Commandos spearheaded the campaign.”
At the time troops had been undergoing training in Pakistan, Balagalle functioned as Security Forces Commander, Jaffna.
The Athurugiriya raid ruptured relations between the UNP and the Army. It caused irreparable damage to national security. At the behest of the UNP, a section of the media, including the Colombo-based correspondents working for international news agencies, highlighted the Athurugiriya raid speculating the Army’s alleged involvement in anti-government activities. Investigating officers alleged that those who had been based at Athurugiriya were involved in the alleged attempt to assassinate Wickremesinghe. Subsequently, the DMI was accused of planning attacks in the city and its suburbs to sabotage the Norwegian-led peace process.
The UNP allegations had the desired impact in the wake of state television showing recovered items, which included 66 sets of LTTE uniforms, four thermobaric weapons, seven claymore mines each weighing 10 kgs, 10 claymore mines, each weighing one kg each, three T-56 assault rifles along with 400 rounds of ammunition, 10 anti-tank weapons, detonators, cyanide capsules, exploders, remote controlled devices and wire rolls.
While a section of the media lashed out at the Army, in a front-page exclusive headlined ‘Controversy over police raid on army officers Millennium City residence,’ on Jan 4, 2002, The Island revealed that a police team from Kandy, led by die-hard UNP loyalist, Kulasiri Udugampola, had raided an Army safe house. The raid also involved a team of CCMP (Ceylon Corps of Military Police).
In spite of both Lt. Gen. Balagalle and the then Director of DMI, Brigadier Kapila Hendawitharana (later served as Chief of National Intelligence, before quitting in 2015) reassuring the government of the legitimacy of operations undertaken by the DMI, the police was let loose on covert operatives. Regardless of Balagalle rushing Hendarawithana, who later figured in many controversies to the scene, Udugampola went ahead with the raid. The police had obtained permission from courts to search the premises.
Udugampola had the backing of the then Interior Minister, John Amaratunga. IGP Lucky Kodituwakku, though being convinced of the legitimacy of the DMI operation, couldn’t do anything. He was helpless.
Army takes firm stand
The Kandy police raided the safe house shortly after the officer-in-charge of the DMI operation had handed over part of their arsenal. Those involved in the hit-and-run operations in LTTE held-areas had returned to Colombo on Dec. 27, 2001, in the wake of the Wickremesinghe administration declaring its readiness to go ahead with a Norwegian initiative to sign a one-sided CFA clearly favourable to the LTTE. The Kandy police also accused the Army of planting two claymore mines targeting a UNP candidate along the Wattegama-Panwila road, in the run-up to the Dec. 5, 2001 polls.
The then security forces spokesman, Brig. Sanath Karunaratne emphasised that those who operated from Athurugiriya were involved in ‘Army duties’ (The Island Jan. 4, 2002). Regardless of protests by the Army, those arrested were taken away to the Narahenpita CMP headquarters before being transferred to Kandy. They were treated like criminals and held under humiliating conditions. Six of them, including an officer, were held in one room. For two weeks, the media reported all sorts of conspiracy theories.
Let me stress that the Athurugiriya betrayal, in a way divided the Army. An influential section of the Army obviously cooperated with the conspirators.
Those who had been arrested were held for almost two weeks before being granted bail. The police raid would never have been possible without an influential section within the Army cooperating with the political establishment to undermine a vital operation, which brought the LTTE under immense pressure.
The UNP and the police justified Udugampola’s raid. Asked whether he had used the safe house to accommodate his sons, one-time Defence chief, Anuruddha Ratwatte, candidly acknowledged that he hadn’t been among those who knew of the existence of that particular rear base, though the Army kept him informed of operations undertaken by the DMI. (Feb. 1 issue of The Island, 2002)
Marapana to the rescue
Then Defence Minister, Tilak Marapana, a one-time Attorney General, to his credit did not play politics with such an important issue and thwarted an attempt by the Kandy police to prolong the detention of DMI operatives using the provisions of the PTA to please their then political masters in the UNP. The bid to neutralize the DMI was made ahead of the signing of the CFA. The Wickremesinghe administration didn’t even bother to consult the armed forces and police top brass regarding the provisions of the agreement. Then Navy Commander, Vice Admiral Daya Sandagiri told the Lessons Learnt and Reconciliation Commission (LLRC) how then Defence Secretary, Austin Fernando, had bypassed them with regard to sensitive military issues.
Fernando, in an article captioned ‘The Peace Process and Security Issues’ (Negotiating Peace in Sri Lanka: Efforts, Failures and Lessons) admitted that the refusal on the part of the then government to consult the military had been a failure. Fernando said (page 42): “The military chiefs weren’t consulted in the drafting of the CFA. Of course, a casual opportunity was given to them to discuss the draft with Ministers of Defence (Tilak Marapana) and Constitutional Affairs (Prof. G.L. Peiris). This wasn’t considered adequate by them as they didn’t get an opportunity to discuss the CFA with their senior officers”.
The CFA declared that ACTIVITIES BY DEEP PENETRATION UNITS should be ceased along with the cessation of all military action. The LTTE wouldn’t have demanded a ban on DMI operations unless the group acknowledged the growing threat posed by DMI. The LTTE had been vulnerable to those hunting them in their own backyard. Obviously, the LTTE wouldn’t have bothered about the DMI had the latter been stalking Wickremesinghe in the run-up to the Dec. 2001 polls.
Retired Senior DIG Merril Gunaratne, who had been Defence Advisor to Wickremesinghe during the CFA, exposed the UNP leadership in his ‘COP IN THE CROSSFIRE.’ The first book of its kind, written by one-time Director General of Intelligence, revealed how the top UNP leadership took security issues lightly at the expense of the country as well as the party. Asked whether he had been involved in the operation to move the Kandy police against the DMI, Gunaratne told the writer at that time he categorically opposed the move. “I was convinced the PA government wouldn’t target Wickremesinghe, thereby allowing the UNP to benefit from the sympathy vote. Unfortunately, Wickremesinghe and his top advisors felt the Army was hell bent on destroying the UNP.”
Ex-LTTE’s among the slain
The Athurugiriya raid had a catastrophic impact on the armed forces, which experienced untold hardships due to miscalculations on the part of political and military leaders. Following the betrayal of the DMI, the LTTE unleashed a series of operations in the city, its suburbs and in the Eastern Province. Altogether, over 50 military personnel, Tamil informants as well as ex-LTTE cadres working for the Army, died at the hands of the LTTE as their identities were revealed owing to the raid on the army safe house. Wijayanadan Widyatharan, alias Vidya, of Sea Road, Navakkudah, was the first operative killed by the LTTE after exposure of the Athurugiriya operation. Vaidya was abducted on January 20, 2002, over two weeks after the raid.
The dead included two senior military officers, both killed in Colombo. Although the two military officials, holding the rank of Major and Colonel could have been on a hit list, regardless of the Athurugiriya fiasco, the LTTE exploited the situation to demoralise the Army. Daring operations directed at the DMI and police intelligence helped boost the LTTE’s image. The military was placed in an unenviable position as the suspension of the PTA effectively neutralised counter-measures directed at LTTE hit squads.
Inspector Dale Gunaratne, the then President of the Police Inspectors’ Association, was perhaps the only law enforcement officer publicly critical of the UNP’s response to the LTTE threat. (Having retired years ago, Gunaratne now serves as an Attorney-at-Law) Although his superiors reacted angrily, Gunaratne lashed out at the government for allowing the LTTE to exploit the CFA to its advantage. Citing the killing of Inspector Thabrew at the Dehiwela Police Station, in July 2003, IP Gunaratne alleged that the suspension of the PTA in keeping with the CFA was nothing but a grievous threat to those fighting terrorism. He kept on lambasting the UNP and his own superiors for not taking action to neutralise the LTTE threat. But the UNP was determined to salvage the crumbling peace process at any cost. For those at the helm of the government, the lives of security forces and police didn’t matter, as long as they believed the LTTE would remain in the negotiating process. Politicians felt whatever the provocations, the peace process should continue.
By Shamindra Ferdinando
Midweek Review
Universal in a Catastrophe

Survivors of the South-East Asian tragedy,
Triggered by nature’s stern promptings,
Somehow reining-in suffocating sorrow,
Are leaving no unhinged stone unturned,
To salvage the remains of those held dear,
In fresh testimony of love’s staying power,
But it speaks well for the untouched majority,
That unstinted succor is pouring in,
To render some solace to the hapless,
Although no amount of fellow feeling,
Could make up for the wrenching sorrow,
Of parting from a priceless presence.
By Lynn Ockersz
Midweek Review
Batalanda and complexities of paramilitary operations

Former President Ranil Wickremesinghe’s recent combative ‘Head-to-Head’ interview with British-American Mehdi Hasan on Al Jazeera has opened a can of worms. As to why Hasan raised the Batalanda Presidential Commission report, during a 49-minute interview conducted at the London’s Conway Hall, with a clearly pro LTTE audience, remains a mystery. This must be yet another notorious way to show how even-handed they are as in the case of its coverage of Russia, China, Palestine or Ukraine for their gullible viewers.
Recorded in February and aired in March 2025, the interview is definitely the most controversial the UNP leader, who is also an Attorney-at-Law, ever faced during his political career; always used to getting kid glove treatment, especially after taking over the party in 1994.
The continuing public discourse on Batalanda should provoke a wider discussion on Sri Lanka’s response to separatist Tamil terrorism, since the cold blooded murder of Jaffna SLFP Mayor Alfred Duriappah, which signalled the beginning of the LTTE terror campaign that ended in May 2009 with the crushing military defeat of the Tigers on the banks of the Nathikadal lagoon, as well as two southern insurgencies in 1971 and 1987-1990.
As Nandana Gunatilleke (one time JVP General Secretary and ex-MP), Dr. Wasantha Bandara (ex-JVPer and close associate of the slain JVP leader Rohana Wijeweera), Indrananda de Silva (ex-JVPer, incumbent Central Committee member of Frontline Socialist Party [FSP] and ex-military photographer) and Uvindu Wijeweera (Rohana Wijeweera’s son and leader of Dewana Parapura) agreed during the recent Hiru ‘Balaya’ discussion, conducted by Madushan de Silva, the Batalanda operation was in line with the overall counter-terrorist/insurgency strategy of the then government.
The issues at hand cannot be discussed at all without taking into consideration the JVP terrorism that, at one-time, almost overwhelmed the UNP’s unbroken rule, since 1977, carried out while openly brushing aside most of the universally accepted genuine parliamentary norms. The country’s second Republican constitution, promulgated by the UNP regime with a 5/6 majority in Parliament, in 1978, had been amended no less than 13 times by the time they were finally ousted in 1995. This was mainly to facilitate their continuous rule. Unfortunately, all stakeholders have sought to take advantage of Batalanda, thereby preventing a proper dialogue. Quite surprisingly, none of the guests, nor the interviewer, bothered, at least, to make a reference to the JVP bid on President J.R. Jayewardene’s life in Parliament on the morning of July 18, 1987. At the time, JVPer Ajith Kumara, working in the House as a minor employee, hurled two hand grenades towards JRJ, with the then Prime Minister Ranasinghe Premadasa seated next to JRJ. While one government MP lost his life, several others suffered injuries, including then National Security Minister Lalith Athulathmudali, whose spleen had to be removed.
At one point, Gunatilleke declared that they assassinated UNP MP for Tangalle Jinadasa Weerasinghe on July 3, 1987, in response to the government killing well over 100 people, in Colombo, protesting against the signing of the Indo-Lanka accord on July 29, 1987. The parliamentarian was killed near the Barawakumbuka-Welangahawela bridge on the Colombo-Rathnapura-Embilipitiya Road. The UNPer was killed on his way home after having declined Premier Premadasa’s offer to make an SLAF chopper available for him to reach home safely.
Against the backdrop of MP Weerasinghe’s assassination and the grenade attack on the UNP parliamentary group that claimed the life of Keethi Abeywickrema (MP for Deniyaya), the government had no option but to respond likewise. The operation, established at the Batalanda Housing scheme of the State Fertiliser Corporation, constituted part of the counter-insurgency strategy pursued by the UNP.
Those who called Batalanda complex Batalanda torture camp/ wadakagaraya conveniently forgot during the second JVP inspired insurgency, the military had to utilize many public buildings, including schools, as makeshift accommodation for troops. Of course the UNP established Batalanda under different circumstances with the then Industries Minister Ranil Wickremesinghe providing political authority. Batalanda had been an exclusive police operation though the Army had access to it whenever a requirement arose.
Those who had been suddenly withdrawn from the Northern and Eastern Provinces, to meet the rapidly evolving security threat in the South, required accommodation. FSP CC member Indrananada de Silva had received unhindered access to Batalanda in his capacity as a military photographer and the rest is history.
As to why Indrananda de Silva switched his allegiance to the FSP should be examined, taking into consideration his previous role as a trusted military photographer, formerly a Lance Corporal of the Military Police. An influential section of the JVP, led by Kumar Gunaratnam, formed the FSP in April 2012 though it didn’t receive the much anticipated public support. Both Indrananda de Silva and Nandana Gunatilleke, who aligned himself with the UNP, found fault with the JVP-led National People’s Power (NPP) over its handling of the Batalanada issue.
Paramilitary operations
Paramilitary operations had been an integral part of the overall counter-insurgency campaign, directed at the JVP responsible for approximately 6,600 killings. Among those death squads were PRRA primarily drawn from the SLMP (Sri Lanka Mahajana Party) and SRRA (the socialist Revolutionary Red Army). PRRA had close links with the Independent Student Union (ISU) whose leader Daya Pathirana was slain by the JVP. The vast majority of people do not remember that Daya Pathirana, who led the ISU during the turbulent 1985-1986 period, was killed mid-Dec. 1989. The second insurgency hadn’t started at that time though the JVP propagated the lie that they took up arms against the UNP government following the signing of the Indo-Lanka peace accord on July 29, 1987.
In addition to PRRA and SRRA, the government made use of paramilitary groups, namely Kalu balallu, Ukkusso, Rajaliyo, Kaha balallu, Kola koti, Rathu Makaru, Mapila, Gonussa, Nee, Keshara Sinhayo, Le-mappillu and Kalu koti.
The UNP also involved some elements of Indian trained Tamil groups (not of the LTTE) in paramilitary operations. Such operations, that had been backed by respective Cabinet Ministers, were supervised by local law enforcement authorities. Paramilitary operations had been in line with psychological warfare that was meant to cause fear among the JVP, as well as the general population. Military operations that had been combined with paramilitary actions received the blessings of the political leadership at the highest level. In the case of Batalanda (1988-1990) President J.R. Jayewardene and Ranasinghe Premadasa knew of its existence.
Even after the eradication of the top JVP leadership, by Nov. 1989, police, military and paramilitary operations continued unabated. Former JVPers appearing on ‘Balaya’ agreed that counter-insurgency operations were actually brought to an end only after D.B. Wijetunga succeeded President Ranasinghe Premadasa after the latter’s assassination on May Day 1993.
After the LTTE resumed war in June 1990, just a couple of months after the withdrawal of the Indian Army (July 1987-March1990), the UNP authorized paramilitary operations in the northern and eastern areas. Members of TELO, PLOTE, EPRLF as well as EPDP were made part of the overall government security strategy. They operated in large groups. Some paramilitary units were deployed in the Jaffna islands as well. And these groups were represented in Parliament. They enjoyed privileged status not only in the northern and eastern regions but Colombo as well. The government allowed them to carry weapons in the city and its suburbs.
These groups operated armed units in Colombo. The writer had the opportunity to visit EPDP and PLOTE safe houses in Colombo and its suburbs soon after they reached an understanding with President Ranasinghe Premadasa. Overnight at the behest of President Premadasa, the Election Department granted these Tamil groups political recognition. In other words, armed groups were made political parties. The Premadasa government accepted their right to carry weapons while being represented in Parliament.
It would be pertinent to mention that thousands of Tamil paramilitary personnel served the government during that period. There had been many confrontations between them and the LTTE over the years and the latter sought to eliminate key paramilitary personnel. Let me remind you of the circumstances, the EPRLF’s number 02 Thambirajah Subathiran alias Robert was sniped to death in June 2003. Robert was engaged in routine morning exercises on the top floor of the two-storeyed EPRLF office, on the hospital road, Jaffna, when an LTTE sniper took him out from the nearby Vembadi Girls’ high school. The operation of the Norway managed Ceasefire Agreement (CFA) made no difference as the LTTE removed Robert who led the party here in the absence of leader Varatharaja Perumal, the first and the only Chief Minister of the North-Eastern Province.
In terms of the CFA that had been signed by Premier Ranil Wickremesinghe and LTTE leader Velupillai Prabhakaran, in Feb. 2002, the government agreed to disarm all paramilitary personnel. Many wouldn’t remember now that during Premadasa’s honeymoon with the LTTE, the Army facilitated the LTTE onslaught on paramilitary groups in selected areas.
Muthaliff’s role
During the ‘Balaya’ discussion, the contentious issue of who shot JVP leader Rohana Wijeweera came up. Nandana Gunatilleke, who contested the 1999 Dec. presidential election. as the JVP candidate, pointing to an article carried in the party organ that dealt with Wijeweera’s assassination said that he wrongly named Gaffoor as one of the persons who shot their leader whereas the actual shooter was Muthaliff. The headline named Thoradeniya and Gaffoor as the perpetrators.
Declaring that he personally wrote that article on the basis of information provided by Indrananda de Silva, Gunatilleke named Asoka Thoradeniya and Tuan Nizam Muthaliff of the Army as the perpetrators of the crime. Thoradeniya served as Sri Lanka’s High Commissioner in the Maldives during the Yahapalana administration, while Muthaliff was killed by the LTTE in Colombo in late May 2005. The shooting took place at Polhengoda junction, Narahenpita. Muthaliff was on his way from Manning town, Narahenpita, to the Kotelawala Defence University.
The programme was told that the JVP had over the years developed close relationship with Thoradeniya while Indrananda de Silva accused Dr. Wasantha Bandara of duplicity regarding Muthaliff. How could you recognize Muthaliff, slain by the LTTE, as a war hero as he was actually one of the persons who shot Rohana Wijeweera, the latter asked.
At the time of his assassination, Muthaliff served as the Commanding Officer, 1 st Regiment Sri Lanka Military Intelligence Corps. The then parliamentarian Wimal Weerawansa was among those who paid last respects to Maj. Muthaliff.
At the time of Rohana Wijeweera’s arrest, Muthaliff served as Lieutenant while Thoradeniya was a Major. Indrananda de Silva strongly stressed that atrocities perpetrated by the police and military in the South or in the northern and eastern regions must be dealt with regardless of whom they were conducting operations against. The former JVPer recalled the Army massacre in the east in retaliation for the landmine blast that claimed the lives of Northern Commander Maj. Gen. Denzil Kobbekaduwa and a group of senior officers, including Brigadier Wijaya Wimalaratne, in early Aug. 1990 in Kayts.
Dr. Wasantha Bandara warned of the Western powers taking advantage of what he called false narrative to push for a Truth and Reconciliation Commission.
It would be pertinent to mention that the LTTE also used the underworld as well as some corrupt Army personnel in planning high profile assassinations. Investigations into the assassination of Muthaliff, as well as Maj. Gen. Parami Kulatunga, killed in a suicide attack at Pannipitiya, in June 2006, revealed the direct involvement of military personnel with the LTTE.
Indrananda de Silva disclosed that soon after Anura Kumara Dissanayake won the presidential election last September, the FSP, in writing, requested the JVP leader to inquire into killings during that period, including that of Rohana Wijeweera. The FSPer alleged that President Dissanayake refrained from even acknowledging their letter. Indrananda de Silva emphasized that Al Jazeera never disclosed anything new as regards Batalanda as he exposed the truth years ago. The former JVPer ridiculed the ruling party tabling the Batalanda Commission report in the wake of Wickremesinghe’s Al Jazeera interview whereas the matter was in the public domain for quite some time.
Indrananda de Silva and Nandana Gunatilleke exchanged words over the latter’s declaration that the JVP, too, was subjected to investigation for violence unleashed during the 1987-1990 period. While the FSPer repeatedly declared that those who carried out directives issued by the party were arrested and in some cases killed, Nandana Gunatilleke took up the position that the party should be held accountable for crimes perpetrated during that period.
The interviewer posed Nandana Gunatilleke the question whether he was betraying his former comrades after joining the UNP. Nandana Gunatilleke shot back that he joined the UNP in 2015 whereas the JVP joined UNP as far back as 2009 to promote retired Army Chef Sarath Fonseka’s presidential ambition even though he wiped out the JVP presence in Trincomalee region during the second insurgency.
JVP’s accountability
Nandana Gunatilleke is adamant that the party should accept responsibility for the killings carried out at that time. The former JVPer declared that Vijaya Kumaratunga (Feb. 16, 1988), first Vice Chancellor of the Colombo University (March 08, 1989) Dr. Stanley Wijesundera, Ven. Kotikawatte Saddhatissa thera (Aug. 03, 1988) and Chairperson of the State Pharmaceutical Corporation Gladys Jayewardene (Sept. 12, 1989) were among those assassinated by the JVP. SPC Chairperson was killed for importing medicine from India, the former Marxist aligned with the UNP said, while actor-turned-politician Kumaratunga’s assassination was attributed to his dealings with President J.R. Jayewardene.
According to Nandana Gunatilleke, except for a few killings such as General Secretaries of the UNP Harsha Abeywickrema (Dec 23, 1987) and Nandalal Fernando (May 20, 1988), the vast majority of others were ordinary people like grama sevakas killed on mere accusation of being informants. The deaths were ordered on the basis of hearsay, Nandana Gunatilleke said, much to the embarrassment of others who represented the interest of the JVP at that time.
One quite extraordinary moment during the ‘Balaya’ programme was when Nandana Gunatilleke revealed their (JVP’s) direct contact with the Indian High Commission at a time the JVP publicly took an extremely anti-Indian stance. In fact, the JVP propagated a strong anti-Indian line during the insurgency. Turning towards Dr. Wasantha Bandara, Gunatilleke disclosed that both of them had been part of the dialogue with the Indian High Commission.
It reminds me of the late Somawansa Amarasinghe’s first public address delivered at a JVP rally in late Nov. 2001 after returning home from 12 years of self-imposed exile. Of the top JVP leadership, Somawansa Amarasinghe, who had been married to a close relative of powerful UNP Minister Sirisena Cooray, was the only one to survive combined police/military/paramilitary operations.
Amarasinghe didn’t mince his words when he declared at a Kalutara rally that his life was saved by Indian Premier V.P. Singh. Soft spoken Amarasinghe profusely thanked India for saving his life. Unfortunately, those who discuss issues at hand conveniently forget crucial information in the public domain. Such lapses can be both deliberate and due to negligence.
By Shamindra Ferdinando
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