News
Treasury bond scams:
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.
Latest News
Heat Index at Caution Level in the Western, Sabaragamuwa, Southern and North-western provinces and in Anuradhapura, Mannar and Vavuniya districts
Warm Weather Advisory
Issued by the Natural Hazards Early Warning Centre of the Department of Meteorology
at 3.30 p.m. on 22 March 2026, valid for 23 March 2026.
The Heat index, the temperature felt on human body is likely to increase up to ‘Caution level’ at some places in the Western, Sabaragamuwa, Southern and North-western provinces and in
Anuradhapura, Mannar and Vavuniya districts.
The Heat Index Forecast is calculated by using relative humidity and maximum temperature and this is the condition that is felt on your body. This is not the forecast of maximum temperature. It is generated by the Department of Meteorology for the next day period and prepared by using global numerical weather prediction model data.

Effect of the heat index on human body is mentioned in the above table and it is prepared on the advice of the Ministry of Health and Indigenous Medical Services.
ACTION REQUIRED
Job sites: Stay hydrated and takes breaks in the shade as often as possible.
Indoors: Check up on the elderly and the sick.
Vehicles: Never leave children unattended.
Outdoors: Limit strenuous outdoor activities, find shade and stay hydrated.
Dress: Wear lightweight and white or light-colored clothing.
Note:
In addition, please refer to advisories issued by the Disaster Preparedness & Response Division, Ministry of Health in this regard as well. For further clarifications please contact 011-7446491.
News
Fuel price hikes trigger transport disruptions and calls for fare increases
The latest fuel price increases have sparked widespread concern among transport operators and raised questions about the government’s supportive measures. Cabinet Spokesman and Minister Dr Nalinda Jayathissa told a media briefing yesterday that the government was incurring a monthly loss of Rs. 20 billion by maintaining subsidies on fuel. According to the Minister, the state loses Rs. 100 per litre of diesel and Rs. 20 per litre of petrol under the current pricing system, a burden that the Treasury continues to absorb as part of a “supportive mechanism.”
The Ceylon Petroleum Corporation (CPC) revised fuel prices from midnight on March 21, raising the price of a litre of Lanka Auto Diesel by Rs. 79 to Rs. 382, Super Diesel by Rs. 90 to Rs. 443, Octane 95 petrol by Rs. 90 to Rs. 455, and Octane 92 petrol by Rs. 81 to Rs. 398. Lanka Kerosene was increased by Rs. 60,bringing the price to Rs. 255 per litre. Other suppliers, including Sinopec and Lanka IOC, also implemented similar hikes, with Sinopec’s Super Diesel rising sharply by Rs. 219 to Rs. 572 per litre.
The surge in fuel prices has had an immediate impact on public transport. The Chairman of the Lanka Private Bus Owners’ Association, Gamunu Wijerathne, told The Island that 90% of private buses were off the road yesterday (22). He called for a 15% increase in bus fares, raising the minimum fare from Rs. 27 to Rs. 35, warning that services could be suspended if fare adjustments are not approved.
Three-wheeler operators have also pressed for immediate fare revisions. L. Rohana Perera, General Secretary of the National Joint Three-Wheeler and Industrialists’ Association, said the rising fuel costs have made it difficult for drivers to continue operating. The Association has proposed a Rs. 20 increase for the first kilometre fare for all meter-operated three-wheelers and plans to present its concerns to the Presidential Secretariat.
Fuel price monitoring has also intensified amid concerns over potential smuggling. A senior police officer told The Island that intelligence units have been deployed near fuel stations to prevent hoarding. The police suspect that certain fuel station employees and owners could be facilitating stockpiling.
Political leaders have warned that the hikes will ripple across the economy. SJB MP S.M. Marikkar said transport cost increases will drive up the prices of essential goods such as rice and fish, leaving consumers struggling under rising costs.
Import and export container transportation charges will be increased by 20% from midnight yesterday (22) due to the recent fuel price hike, according to the Container Transport Vehicle Owners’ Association.
The latest increases follow two rounds of price hikes since March 9, driven by surging global oil prices amid the Middle East conflict. Since then, Lanka Petrol 92 Octane has risen by Rs. 105 to Rs. 398, Petrol 95 Octane by Rs. 115 to Rs. 455, Auto Diesel by Rs. 101 to Rs. 382, and Super Diesel by Rs. 114 to Rs. 443 representing an overall increase of around 35% across key fuel categories.
by Norman Palihawadane and Pradeep Prasanna Samarakoon
News
Prof. Peiris honoured by International Institute of Rehabilitation
At the award presentation ceremony of the International Rehabilitation Institute last week, Professor G.L. Peiris, as Chief Guest, in his keynote address, dealt with the special relevance of rehabilitation at this time. The traditional criminal law makes provision for punishment after a crime has been committed, and punishment usually takes the form of a prison sentence. It is even more important, however, to explore practical means of prevention and also to have recourse to a custodial sentence as a last resort rather than as the typical response.
The modern approach is that punishment is seen not as retributive but as a means of rehabilitating the offender in society. Prison sentences, bringing a first offender into the prison environment and association with habitual offenders, carries the risk of recidivism, the available statistics indicating the likelihood of return to prison on repeated occasions.
He placed emphasis on the importance of informed social attitudes to ensure that an offender does not carry a permanent stigma, reducing his opportunities for employment and acceptance in society. The importance of religious instruction in early childhood, and the close connection between temple and village, was stressed.
Professor Peiris was honoured with an award of appreciation by academic colleagues.
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