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Treasury bond scams:

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CoI recommendation regarding forensic audits yet to be finalized, available reports with AG, CIABOC

By Shamindra Ferdinando

Over three years after Supreme Court Judge K.T. Chitrasiri led Presidential Commission of Inquiry (PCoI) into Treasury bond scams handed over its report to then President Maithripala Sirisena, the Monetary Board is yet to complete recommendation in respect of forensic audits.

Of the recommended forensic audits, five had been completed at a cost of Rs 275 mn and the remaining one not commissioned yet. 

The Island recently sought an explanation as regards the delay in completing the recommended process from Director Communications, CBSL.

The Island: What is the status of the procurement process pertaining to the sixth forensic audit ordered by the CoI?

CBSL: The procurement process to select an audit firm to carry out the sixth forensic audit is underway.

The Island: Can you explain how forensic audits so far obtained at a cost of Rs 275 mn utilized by the CBSL?

CBSL: Copies of the five forensic audit reports have been submitted to relevant authorities including the Attorney General and the Auditor General to initiate actions, as necessary. As per the request of the Director General of CIABOC, certain reports were submitted to CIABOC. Further, the Monetary Board appointed an internal Task Force to facilitate and oversee implementation of the recommendations in the Forensic Audit Reports which entailed, among others, strengthening of processes, internal controls, etc.

The CoI comprised Supreme Court Justice K. T. Chithrasiri, the late Justice Prasanna S. Jayawardena and retired Deputy Auditor-General K. Vellupillai, while attorney-at-law Sumathipala Udugamasooriya functioned as its secretary.

The Monetary Board commissioned forensic audits in consultation with the Attorney General and the Auditor General to deal with issues subsequent to the CoI probe on the issuance of Treasury bonds during the period 01st February 2015 to 31st March 2016 and matters that had come to light over the recent years in audit reports and in findings of internal investigations pursuant to the exercise of certain regulatory and agency functions undertaken by the CBSL. The CBSL in response to a previous The Island query said that the procurement of the five forensic audits were carried out by a Cabinet Appointed Consultant Procurement Committee and the contracts were awarded to audit firms with a global practice and international experience in forensic auditing with the approval of the Cabinet of Ministers.

Former Chairman of the Committee on Public Enterprises (COPE) D. E. W. Gunasekera yesterday (30) told The Island that parliament owed an explanation as regards the implementation of recommendations, both of CoI as well as the forensic audits. Pointing out that parliament conveniently failed to debate the CoI report on Treasury bond scams perpetrated in 2015 and 2016, the veteran politician said the issue at hand could be taken up in spite of the Attorney General moving Colombo High Court against some of the Treasury scam suspects. Former CBSL Governor Arjuna Mahendran remained at large, the former minister said, urging both the government and the Opposition to be responsible in their response to the country’s biggest ever financial fraud.

Responding to another query, one-time General Secretary of the CPSL reminded the CoI report on Treasury bond scams wasn’t taken up for debate in spite of it being on the agenda paper of the parliament.

The former minister said that the incumbent government couldn’t absolve itself of the responsibility for properly utilizing forensic audits obtained at a staggering cost of Rs 275 mn. The outspoken retired politician emphasized that the 2019 Easter Sunday carnage, the alleged fraud in controversial duty reduction of sugar and a spate of other controversies, including import of contaminated coconut oil shouldn’t be allowed to divert attention away from Treasury bond scams.

Samagi Jana Balavegaya (SJB) lawmaker Dr. Harsha de Silva said that his party expected the Attorney General to act on the basis of CoI recommendations and the forensic audit reports. The former Deputy Minister noted that action had been initiated at the Colombo High Court Trial at Bar in respect of the Treasury bond scams.



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GMOA warns of trade union action unless govt. urgently resolves critical issues in health sector

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Influx of substandard drugs is of particular concern

The Government Medical Officers’ Association (GMOA) has warned of renewed and intensified trade union action if the government fails to fulfil its promise to resolve the ongoing crisis in the health sector within the next few days.

GMOA Executive Committee member Dr. Prasad Colombage said his association was hopeful that commitments made by the government, including those formally stated by the Minister of Health in Parliament and recorded in the Hansard, would be implemented.

He called for urgent remedial action in view of the influx of substandard medicines into the country, patient deaths linked to such drugs, difficulties faced by doctors in prescribing medicines, and disruptions to patient care services caused by the continued migration of medical professionals. These factors, he warned, had placed patients’ lives at serious risk.

Dr. Colombage said discussions had already been held with all relevant authorities, including the President and the Minister of Health. He expressed hope that swift solutions would be forthcoming based on agreements reached at discussions. However, he cautioned that the GMOA would not hesitate to resort to strong trade union action if tangible progress was not seen in the coming days.

Meanwhile, the Federation of Medical and Civil Rights Professional Associations yesterday (01) handed over a special memorandum to President Anura Kumara Dissanayake, calling for immediate action to resolve the deepening crisis in the health sector.

Federation President, Consultant Dr. Chamal Sanjeewa, said Sri Lanka’s health system was currently facing a severe crisis and had sought an opportunity to hold discussions with the President on the matter.

The memorandum calls for the President’s direct and immediate intervention on several key issues, including the Indo–Sri Lanka health agreement, shortages of essential medicines including cancer drugs, continued allegations surrounding the administration of the Ministry of Health, reported irregularities at the National Hospital, Colombo, and the absence of an internationally accredited quality control laboratory for the National Medicines Regulatory Authority to test medicines. The Federation has also requested a meeting with the President to discuss these concerns in detail.

By Sujeewa Thathsara ✍️

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Elephant census urged as death toll nears 400

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Sri Lanka’s latest elephant census must result in immediate policy action, not remain a paper exercise, Centre for Environmental Justice (CEJ) Managing Director Dilena Pathragoda warned, as nearly 400 wild elephants have already died in 2025 alone amid escalating human–elephant conflict.

With the national elephant population estimated at around 5,879, Pathragoda said the figures would be meaningless unless they shape land-use planning, habitat protection and enforcement.

“As of mid-December, close to 397 elephants have died in 2025, mostly due to shootings, electrocution, train collisions and other human-related causes,” he told The Island. “When deaths continue at this scale, census numbers alone offer little reassurance.”

Official data show that 388 elephants died in 2024, while 2023 recorded a staggering 488 deaths, one of the highest annual tolls on record. Conservationists warn that the trend reflects systemic failure to secure habitats and elephant corridors, despite repeated warnings.

“An elephant census should not end with a headline figure,” Pathragoda said. “If these statistics do not influence development approvals, infrastructure planning and land-use decisions, they fail both elephants and rural communities.”

Elephant populations remain unevenly distributed, with higher densities in the Mahaweli, Eastern and North Western regions, while other areas face sharp declines driven by habitat fragmentation and unplanned development.

Pathragoda said recurring fatalities from gunshots, illegal electric fences, improvised explosive devices along with poisonings  and rail collisions expose the limits of short-term mitigation measures, including ad hoc fencing projects.

“The crisis is not a lack of data, but a lack of political will,” he said, calling for binding conservation policy, transparent environmental assessments and accountability at the highest level.

He urged authorities to treat elephant conservation as a national governance issue, warning that failure to act would only see future censuses record further decline of these majestic animals.

“Elephants are part of Sri Lanka’s natural heritage and economy,” Pathragoda said. “Ignoring these warning signs will come at an irreversible cost.”

By Ifham Nizam ✍️

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CTU raises questions about education reforms

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The Ministry of Education has yet to clarify whether school hours will be extended by 30 minutes from next Monday (05) under the proposed new education reforms, Ceylon Teachers’ Union (CTU) General Secretary Joseph Stalin has said.

Stalin told The Island that the Ministry should reconsider the planned reforms, warning that decisions taken without adequate study and consultation could have serious repercussions for nearly four million schoolchildren.

He said the Education Ministry had announced that education reforms would be implemented in Grades from 1 to Grade 6, but it had not said anything about the Grades above 6. This lack of clarity, he said, had created confusion among teachers, parents and students.

Stalin also noted that although learning modules had been issued, students are required to obtain photocopies based on the codes introduced in these modules. However, the Ministry had not revealed who would bear the additional financial burden arising from those costs, raising further concerns over the practical implementation of the reforms.

by Chaminda Silva ✍️

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