Connect with us

News

Thico scam draws Monetary Board’s attention, abuse of banking system under scrutiny

Published

on

One of the alleged masterminds had been on prez’s delegation to Libya in 2009

By Shamindra Ferdinando

Secretary to the Finance Ministry Mahinda Siriwardena yesterday (07) said that the ongoing investigation into the alleged Thico scam haD received the attention of the Central Bank and Monetary Board.

 Siriwardena, one of the five members of the Monetary Board said that the issues at hand would be appropriately dealt with. The Monetary Board consists of Central Bank Governor Dr. Nandalal Weerasinghe (Chairman of the Board), Dr. Ranee Jayamaha, Sanjiva Jayawardena, PC, and Nihal Fonseka.

The Finance Secretary said so when The Island raised the alleged abuse of the banking system by the Thico Group of Companies based at the World Trade Centre (WTC) over a period of time.

The official said that although periodic warnings were issued, some people continued to be deceived by high interest rates and other benefits.

Former Governor of the Western Province (January-June 2019) Azath Salley told The Island that he invested Rs 80 mn and one of his close associates Rs 226 mn in Thico Group of Companies run by Thilini Priyamali only on the assurance given by Janaki Siriwardena, Chief Executive Officer and Director of The One Transworks Square project meant to build 92 storeyed commercial and residential tower.

The One Transworks Square in late February 2019 announced the launch of phase II of the project (JW Marriott Hotel & Residences). The top management declared that the second phase would be completed in two and a half years.

Salley emphasised that he had absolutely no reason to have any doubts as regards the investments as the influential businesswoman was known to him since 2002. According to Sally, the leader of the National Unity Alliance (NUA) formerly led by Mrs. Ferial Ashraff, at the time they first met he served as the Deputy Mayor of the UNP-run Colombo Municipal Council (CMC).

Responding to another query, Salley said that when the Criminal Investigation Department (CID) had recorded his statement as regards the investment that had gone awry, he brought to the notice of the investigators the complicity of bank officials in the abuse of the banking system.

Specific reference was made to the female manager of a branch of a private bank located at the WTC as regards issuance of instructions by Thilini Priyamali to stop payments after having issued cheques to be cashed at that particular bank, Sally said. How that particular bank could allow her to irresponsibly issue cheques continuously in spite of not having sufficient funds in her account, Salley asked.

Salley emphasised that he wouldn’t have invested money nor encouraged his associate to commit as much as Rs 226 mn with Thilini Priyamali without Janaki Siriwardena’s guarantee.

So far, the Fort Magistrate has remanded five persons arrested in connection with the Thico scam till Nov 16 pending further investigations. The CID arrested Waduwaarage Thilini Priyamali on Oct 05. On Oct 17, the police arrested one of her associates, Dissanayake Mudiyanselage Isuru Shammika Bandara. Several days later, the police apprehended Wijesuriya Arachchige Kasun Harshana Perera, a director of Thico Construction Company, Ven. Borelle Sirisumana, who has reportedly declared as having attained arahathood and Janaki Siriwardena were taken in on Nov 01 and Nov 04, respectively.

A female officer, Chief Inspector Niroshani Hewapathirana, the officer in charge of the Financial Crimes Investigation Division of the CID, leads the investigation.

Appearing on ‘Truth with Chamuditha,’ Salley recently said that Janaki Siriwardena was so influential the slain Libyan leader Col Muammar Gaddafi had provided a special aircraft to fly her home. The Libyan leader intervened after she sought to return home claiming an emergency, the former Western Province Governor told the interviewer. According to Salley, Janaki Siriwardena had been part of the government delegation led by President Mahinda Rajapaksa.

President Rajapaksa visited Libya in April and August 2009. Rajapaksa is on record as having said that Sri Lanka’s economy could have collapsed before the war was brought to a successful conclusion in May 2009 if not for Muammar Gaddafi agreeing to lend 500 million USD to Sri Lanka in response to a single phone call from him.

 Salley said that he had first met Thilini Priyamali at Janaki Siriwardena’s office situated at the One Transworks Square project building on May 03, this year. Declaring that he hadn’t even heard of Thilini Priyamali prior to that, Salley said that the meeting took place on Ramazan Day. The NUA leader said that within a week he gave Rs 45 mn to Janaki Siriwardena and Thilini Priyamali. “Of that amount, Janaki Siriwardena collected Rs 5 mn from me at my home and subsequently Thilini Priyamali received Rs 19 mn and 21 mn on two days. On both days, she came with Isuru Banadara who drove a 7 series Benz.”

Later, Janaki Siriwardena accepted Rs 20 mn and 15 mn on two days at her office, Sally said, altogether he invested Rs 80 mn. “I haven’t received my money back,” Salley said, acknowledging his associate, too, was in a dilemma. Although Salley declined to name the associate or what business he was involved in, he didn’t deny when Chamuditha Samarawickrema repeatedly asked whether the unnamed investor was Abdul Shattar. Attorney-at-Law Maithri Gunaratne yesterday told The Island that he represented Abdul Shattar, who was one of the few persons to lodge complaints in this regard.

 Salley questioned the reportage of the Thico scam by two social media commentators in a way he alleged was meant to influence the ongoing investigations. Claiming the duo did so at the behest of Janaki Siriwardena, Salley said that some of those who were duped by the duo didn’t lodge complaints fearing repercussions. Salley said that one of the commentators referring to his military background warned the public of his shooting prowess, both in side arms and assault weapons. That was meant to scare those struggling to recover their money, Salley said, adding that The One Transworks project was now in serious trouble.

Disclosing that he got in touch with Janaki Siriwardena’s boss based in India, Salley said that the project was unlikely to be completed against the backdrop of growing controversy over this matter.

Commenting on the involvement of Ven. Borelle Sirisumana thera in the Thico ‘operation,’ Salley said that after a dispute over the failure on the part of the two women to settle money taken from him and his associate, the monk on at least six occasions assured the quick return of their money. But, so far not a single cent had been returned, Salley said, revealing that part of the money taken from them seemed to have been given to a Galle based Kattandiya, a former member of the Southern Provincial Council who is the custodian of a devalaya in Bataduwa.

Salley recalled a ceremony conducted by this particular kattandiya at One Transworks complex at the request of Janaki Siriwardena.

Salley dismissed accusations that he had an affair with Thilini Priyamali. Various Tamil social media platforms exploited unsubstantiated allegations and claims made by a particular social media activist with a military background. Those platforms would be dealt with appropriately through legal means, Salley said, warning he wouldn’t give up until he recovered the money stolen from him. Sally estimated the total amount misappropriated by Thilini Priyamali and Janaki Siriwardena at over Rs 4 bn. However, others speculated the total amount could be as much as Rs 10 bn.

An Attorney-at-Law familiar with the case told The Island that former minister who had served Chandrika Bandaranaike Kumaratunga’s cabinet is believed to have made quite a substantial investment with Thico. However, he hadn’t lodged a complaint with the police so far. Salley also claimed that he knew three other persons who lost money but they were scared to disclose their plight fearing retaliation by Janaki Siriwardena.



News

CP asks whether MoU with US a precursor to SOFA

Published

on

Dr. Weerasinghe

The Communist Party of Sri Lanka (CPSL) has asked whether the NPP entered into a military agreement with the US as a condition for reduction of tariffs and precursor to signing SOFA (Status of Forces Agreement).

CPSL Leader Dr. G. Weerasinghe told The Island that the US had almost succeeded in finalising SOFA during the Yahapalana administration (2015-2019). On behalf of the party, Dr. Weerasinghe yesterday (18) issued the following statement: “We strongly condemn the NPP government for entering into a new military Memorandum of Understanding with the United States National Guard under the so-called State Partnership Programme (SPP). This agreement between the Sri Lankan Armed Forces and the Montana National Guard represents another step in the militarisation of the ‘Indo-Pacific’ and the erosion of Sri Lanka’s sovereignty.

The new US–Sri Lanka MoU formalises cooperation on a wide range of military activities: joint training, maritime surveillance, air operations, and disaster-response integration between the US National Guard and the Sri Lankan Armed Forces. The agreement should be seen as a pretext for embedding US military structures within Sri Lanka.

This MoU has been signed in a context of heightened US militarism, including Washington’s open threats of aggression against Venezuela and complicity in the Israeli genocide in Gaza. Moreover, this is the second military agreement reached by the NPP government, following the earlier India–Sri Lanka defence MoU whose contents remain entirely concealed from the public.

There are critical questions that every Sri Lankan must ask:

Was signing this agreement a political condition for the reduction in tariffs?

Is this MoU a precursor to signing a Status of Forces Agreement (SOFA) with the United States?

Will Sri Lanka’s military, naval and air force infrastructure facilities, as well as Sri Lanka’s ports and airports, be placed at the disposal of the US war machine?

Is Sri Lanka to be a pawn in US military aggression in Asia?

The CPSL reaffirms that Sri Lanka must be a non-aligned, sovereign country. We call on the NPP government to immediately disclose the content of all military agreements it has entered into, halt further defence cooperation with foreign powers, and place national security decisions under democratic scrutiny.

Further, we call upon all anti-imperialist and patriotic forces to come forward to protect the non-aligned status and sovereignty of the country.”

Continue Reading

News

NPP going ahead with move to abolish MPs pensions

Published

on

The Attorney General has cleared the draft of a Bill seeking to abolish pension entitlements granted to MPs and their spouses.

The Cabinet of Ministers at a meeting chaired by President Anura Kumara Dissanayake has given the go ahead to repeal the Parliamentary Pensions Act No. 1 of 1971.

The Legal Draftsman has prepared the Bill aimed at abolishing the pension entitlements granted to Members of Parliament and their spouses.

Government sources said that the proposal, presented by the Minister of Justice and National Integration to publish the Bill in the Government Gazette and submit it to Parliament, for approval had received the Cabinet endorsement.

Earlier some ex-MPs opposed the move. A group, styling itself as ex-MPs Collective, declared that it was contemplating legal action in case the government moved to do away with MPs’ pension scheme.

Minister and Cabinet spokesman Dr. Nalinda Jayatissa is on record as having said that if any ex-MP found it difficult, he or she could, like any other citizen, seek assistance through government welfare programmes, such as Aswesuma.

Continue Reading

News

Pathfinder demands early action by Colombo to halt ecological disaster being caused by Tamil Nadu in Palk Bay, Gulf of Mannar

Published

on

Recently, Kachchativu Island has attracted attention not only from fisherfolk of India and Sri Lanka but also from political leaders of both nations and the judiciary. President Anura Kumara Dissanayake’s visit to Kachchativu in September marked a significant milestone. For the first time in history, the leader of Sri Lanka expressed interest in the ongoing debate over the island — an issue settled decades ago after lengthy negotiations. Meanwhile, India’s Chief Justice Surya Kant, who was in Colombo just weeks before his appointment, while not explicitly mentioning Kachchativu or illegal fishing activities by Indian fishers in Sri Lankan waters, emphasised that environmental cooperation is not a matter of charity or diplomacy; it is a necessity for survival.

Focusing on Palk Bay and the Gulf of Mannar, which are currently under severe stress from overfishing, destructive trawling, and unregulated coastal activities, as well as recurring confrontations between Indian trawlers and Sri Lankan fishers, he said the situation exemplifies a deeper ecological tragedy-competition for an exhausted resource base. Looking ahead, he added that “the time has come for India and Sri Lanka to pioneer a regional model of environmental constitutionalism.” Among the suggestions he made were establishing a Joint Commission on Marine Ecology and creating data-sharing protocols for pollution and fisheries management between the two countries.

It has been over half a century since India and Sri Lanka established the International Maritime Boundary Line (IMBL) through two bilateral agreements in 1974 and 1976. These agreements—signed, ratified, and recognised internationally—not only defined sovereign maritime boundaries but also definitively confirmed Sri Lanka’s ownership of Kachchativu Island once and for all. These two agreements did not provide for traditional fishing rights for Indian fishermen to fish in Sri Lankan waters. Following these agreements, Sri Lankan fishermen withdrew from their traditional fishing grounds around the Wadge Bank, located south of Kanya Kumari and the southern part of Pedro Bank, north of the Jaffna Peninsula, which came under Indian control. However, Indian fishermen have continued to demand “traditional fishing rights” in Sri Lankan waters.

Despite these agreements, reached after lengthy and intense negotiations, the issue of Kachchativu and illegal fishing persists, not due to any ambiguity in law or diplomacy, but because of a calculated political and economic interest in sustaining them. Tamil Nadu’s persistence in raising the issue is less about sovereignty and more about securing access to the rich fishing grounds around Kachchativu — and, unsurprisingly, far beyond that island.

According to reports this year, by mid-July, Sri Lanka had detained 24 Indian trawlers and taken into custody 181 fishermen for illegally entering Sri Lankan waters, fishing without licences, and engaging in bottom trawling. On 5th, 6th and 9th August, 31 fishermen were taken into custody, and on 28th September, another 12 were apprehended. These arrests continued in October, netting 47 fishermen and five trawlers, and in November, 49 fishermen and five fishing vessels.

The Real Issue: Industrial-Scale Poaching

Although Tamil Nadu’s claims suggest the dispute centres on fishing rights near Kachchativu, Indian trawlers frequently encroach into Sri Lankan waters well beyond the vicinity of that island. Their illegal activities have been observed along the northern, north-western, and even eastern coasts of Sri Lanka. It appears that Kachchativu is merely a distraction; the real issue lies in the pursuit of unsustainable and illegal bottom trawling in Sri Lankan waters, driven by profit.

Bottom trawling harms the marine environment. It not only harvests mature fish and prawns but also damages seabed habitats, kills juvenile marine life, and creates wasteful bycatch, accounting for about 30 per cent of the total catch. The damage is long-lasting and may take decades to repair, if it can be repaired at all. The fish catch in the northern peninsula, which was 35,000 MT in 1995, dropped to 17,000 MT in 1923—once a thriving industry in the conflict-affected Northern Province—serves as a silent reminder of the destruction caused.

Political Opportunism Across the Palk Strait

When a few of the hundreds of Indian trawlers that trespass into Sri Lankan waters are seized and the offenders are arrested, protests flare up in Tamil Nadu, from where most of the intruders originate. These protesters appeal to the state government, which then petitions New Delhi, demanding decisive action to recover Kachchativu Island. What took place during the 2024 Lok Sabha elections was turning Kachchativu, a non-issue, into a political football, not to score goals but to garner votes.

Sri Lanka, by comparison, has remained notably restrained and consistent. Over the past fifty years, the only activities undertaken by the Sri Lankan state on Kachchativu Island have been the renovation of St. Anthony’s Church and the organisation of annual church celebrations held in March, attended by pilgrims from Tamil Nadu and Sri Lanka.

Time for a Science-Based Solution

By the way, what has Sri Lanka done in the past half-century since asserting its rightful claim to the island? Absolutely nothing! That is strange behaviour after extensive, painstaking negotiations over the maritime boundary and the ownership of Kachchativu. Is it due to a lack of imagination or simply lethargy?

Although sovereignty over Kachchativu has been established, concerns about the health of the Palk Bay ecosystem persist, as Indian Chief Justice Kant highlighted. It is now essential to shift the debate from profits and politics to science and sustainability. Sri Lankan institutions must take the lead in achieving that goal.

Several years ago, the Pathfinder Foundation proposed establishing a marine research station on Kachchativu Island to make productive use of the currently barren land. This could be realised through collaboration with national organisations such as the Department of Fisheries, the National Aquatic Resources Research and Development Agency (NARA), and Sri Lankan universities. India has numerous research stations along its coastline, including regional centres of the Central Marine Fisheries Research Institute (CMFRI), the Gulf of Mannar Biosphere Research Units, and others. A research station in Kachchativu, among others, could:

Quantify the impact of illegal bottom trawling.

Monitor marine biodiversity and ecological degradation.

Document migratory patterns and spawning areas.

Make recommendations to arrest the deterioration of marine ecosystems and improve fish stocks.

Facilitate dialogue grounded in scientific evidence.

The old argument — that Kachchativu lacks basic facilities like power, water, and sanitation — no longer holds water. Today, solar power, desalination units, Battery Energy Storage Systems (BESS), and environmentally friendly sanitation systems are both cost-effective and easy to deploy. The island, covering 1.15 sq km, though small, is large enough for a low-impact scientific outpost and modular research laboratories to research and develop proposals to enhance fish stocks in the area.

Furthermore, research carried out at this station could be shared with Indian counterparts to enhance understanding of sustainability, transparency, and scientific diplomacy. A well-organised, collaborative framework could establish joint marine conservation initiatives and even future agreements for seasonal, well-regulated artisanal fishing that does not involve bottom trawling.

Conclusion: Act Before It’s Too Late

India and Sri Lanka could benefit greatly from maritime cooperation and avoid substantial losses resulting from ecological collapse and ongoing bilateral tensions. Instead of insisting on revisiting a settled agreement, both countries—especially their coastal communities—would gain more from science-based management of the Palk Bay ecosystem.

Sri Lanka must avoid allowing political expediency to jeopardise regional stability and marine sustainability. It should exercise decisive leadership to seize the current opportunity. Pathfinder Foundation remains ready to help steer that course, grounded in legal principles, supported by scientific evidence, and driven by long-term national interests.

This is a Pathfinder perspective. Can read more on the web www.pathfinderfoundation.org and communicate with us at pm@pathfinderfoundation.org.

Continue Reading

Trending