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Suspension of Bimputh Finance and Rs 69 mn loss for HDFC: Ex-COPE Chief admits lapses

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Former Chairman of Committee on Public Enterprises (COPE) Prof. Charitha Herath

By Shamindra Ferdinando

Former Chairman of Committee on Public Enterprises (COPE) Prof. Charitha Herath yesterday (13) said that undue delay on the part of a particular parliamentary watchdog committee to call certain state enterprises should be inquired into against the backdrop of some hidden facts and perhaps political interference.

In the case of HDFC Bank, massive loans had been granted to some politicians though the Auditor General’s Department and COPE failed to ascertain the situation, the rebel SLPP lawmaker claimed. The MP found fault with what he called the COPE review committee.

Prof. Herath said so when The Island sought his explanation as to how COPE, during his leadership, conveniently failed to summon HDFC Bank under investigation for suffering Rs 69mn loss by granting a special interest rate to a fixed deposit of the CEB and releasing a loan amounting to Rs 350 mn to Bimputh Finance PLC (BPF) on July 18, 2018.

During COPE proceedings in respect of HDFC Bank late last month, it was revealed that it hadn’t been summoned before the watchdog committee for a period of nine years. According to Director Legislative Services, the bank last appeared before COPE on Nov 04, 2014 in the run-up to the presidential election won by Maithripala Sirisena.

JVP MP Sunil Handunnetti served as Chairman COPE during the Yahapalana administration. After Gotabaya Rajapaksa was elected President in Nov 2019, Prof. Herath succeeded Handunnetti. Following Gotabaya Rajapaksa’s ouster in July 2022, Parliament elected Prof. Ranjith Bandara as the new COPE Chief. Former MP Handunnetti didn’t answer his phone.

Responding to another query, Prof. Herath said there are 214 corporations and nearly 20 other institutions subjected to scrutiny by COPE though the parliamentary watchdog missed HDFC Bank. The MP claimed that there were no other problems in HDFC bank other than the issues at hand.

MP Herath said that now latest statistics were available and therefore COPE could go into HDFC Bank. “I believe special measures should be adopted to investigate hidden cases in some state enterprises. We should implement a special review process to identify cases which required special attention,” Prof. Herath said.

Stalled investigations have revealed that disciplinary action hadn’t been taken in respect of an employee of the HDFC bank in spite of him being found guilty of playing the role of a clandestine agent in the deal with CEB.

COPE, under the leadership of Prof. Ranjith Bandara, has recommended to the Finance Ministry to inquire into the issue at hand and take tangible action against the HDFC employee within a month, according to a statement issued by Janakantha Silva, Director Legislative Services / Director Communication (Acting).

Against the backdrop of COPE declaration that the HDFC Bank faced problem in recovering Rs. 350 mn loan given to BPF, the Central Bank has announced that BPF had been prohibited from operating with effect from Sept. 01, 2023. Prof. Herath, in his response to The Island query, referred to this particular case when he mentioned some politicians being granted massive loans.

Prof. Bandara is on record as having said that the BPF matter would be referred to the Commission to Investigate Allegations of Bribery or Corruption (CIABOC).

According to a Central Bank statement dated Oct 27, 2023, the troubled finance company had been stopped from operating in terms of Section 37 of the Finance Business Act No 42 of 2011. The Director, Resolution and Enforcement Department has assured depositors of BPF that all depositors would be compensated in line with the provisions of the Sri Lanka Deposit Insurance and Liquidity Support Scheme (SLDILSS) Regulation No 02 of 2021.



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Low-pressure area is likely to form over the southeastern Bay of Bengal around 15th February

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Special Weather Bulletin issued by the Natural Hazards Early Warning Centre of the Department of Meteorology
Issued at 10.30 a.m. on 13 February 2026

A low-pressure area is likely to form over the southeastern Bay of Bengal around 15th February.

The general public are requested to be attentive to the future forecasts and bulletins issued by the Department of Meteorology in this regard

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Sajith points to irregularities in coal procurement deals

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Sajith

Opposition and Samagi Jana Balawegaya (SJB) Leader Sajith Premadasa has claimed that all five coal shipments, imported recently for the Lakvijaya Coal Power Plant, in Norochcholai, were of substandard quality.

The remarks were made on Thursday during a meeting of the Sectoral Oversight Committee on Infrastructure and Strategic Development at the Parliament complex, which summoned senior officials from the Ceylon Electricity Board (CEB), the Public Utilities Commission of Sri Lanka (PUCSL), and the Lanka Coal Company to discuss the controversial coal imports.

Premadasa raised concerns over the tender process, highlighting a lack of transparency and deviations from the original procurement plan for the country’s key 900-megawatt power plant. He noted that although the order for 2,500 tonnes of coal was issued in April, deliveries were delayed due to the May monsoon season.

The Opposition Leader criticised the shortened tender timeline, which was reduced from the standard 42 days to just 21, and demanded that reports approving the tender, technical instructions, and conditions for both previous and current coal tenders be submitted to Parliament.

Premadasa also questioned the qualifications and experience of the suppliers selected by the government, asking whether responsibility for the nation’s primary electricity production had been entrusted to an unsuitable company.

He also emphasised the coal specifications, stating that the net NCP value should be 5,900 and requested reports if the supplied coal failed to meet that standard. Premadasa asked whether coal had been added to boilers before test results were received, whether samples had been sent to India for testing, and requested the corresponding reports.

In addition, he sought clarity on potential financial losses exceeding one million rupees, reductions in the annual coal requirement due to extra coal burning, and any boiler damage caused by substandard coal.

The Opposition Leader called for a full investigation into the tender process, including a forensic audit, noting that prior questioning through the Sectoral Oversight Committee had already highlighted deficiencies in procurement procedures.

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Lankan Embassy in Washington welcomes ‘Walk for Peace’ Buddhist monks

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Ambassador Mahinda Samarasinghe meeting Ven. Pannakara in Washington

The Sri Lanka Embassy in Washington, D.C., welcomed the ‘Walk for Peace’ on 10 February 2026, as a group of Buddhist monks continued their walk across the United States advocating world peace. The initiative drew participation from people across the United States and abroad.

The Embassy joined a dana organised by the Sri Lankan community in the DMV area at the National United Methodist Church, where more than 200 Buddhist monks were present. Traditional Sri Lankan cuisine was served at the event.

At the invitation of the District of Columbia Secretary Kimberly A. Bassett, Ambassador Mahinda Samarasinghe attended an interfaith ceremony at the Washington National Cathedral. Thousands gathered at the Cathedral in support of the Walk. The Ambassador was accompanied by Deputy Head of Mission Madhuka Wickramarachchi.

The Head Priest and participating monks also visited the Embassy. During the visit, the Ambassador presented an Atapirikara and ceremonially pinned the Sri Lankan flag on the robe of Ven. Pannakara. Embassy staff and members of the Sri Lankan community offered flowers and extended greetings. The Embassy also distributed bottles of water to the participants.

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