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Treasury bond scams: Judicial process further delayed, Mahendran safe in Singapore

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‘Parliament’s response pathetic’

DEW’s 2015 COPE report never tabled

By Shamindra Ferdinando

Chairman of the Committee on Public Enterprises (COPE)   Charitha Herath said yesterday (4) that judicial process in respect of the treasury bond scams perpetrated in Feb 2015 and March 2016 had been delayed due to Sri Lanka’s inability to serve indictment on fugitive Central Bank Governor Singaporean passport holder Arjuna Mahendran.

SLPP National List MP Herath said so when The Island sought clarification with regard to the status of action taken by Parliament in that regard. Herath said that the report on treasury bond scams prepared by COPE during JVP MP Sunil Handunetti’s tenure as its Chairman was available. The data available therein were quite useful and could be utilized, the lawmaker said.

Responding to another query, one-time Media Ministry Secretary and University don Herath said that he wasn’t aware of the status of the Presidential Commission report on treasury bond scams that was handed over to Parliament.

The Island pointed out to the COPE Chairman that the report handed over in early 2018 hadn’t been debated so far though the parliament gave an assurance to that effect. MP Herath said that the Ministry of Defence, the police and the Attorney General’s Department had been involved in the process though it couldn’t be brought to a successful conclusion so far. Sri Lanka requested Singapore to deport Mahendran over a year ago. The request was made by the Defence Ministry in the second week of Sept 2019 in the run-up to the presidential election in Nov. Legal sources said that the then government took up the issue with Singapore consequent to the Permanent High Court at Bar where 10 persons, including the former Central Bank Governor, his son-in-law Arjuna Aloysius of Perpetual Treasuries Limited (PTL) and its CEO Kasun Palisena were charged with criminal misappropriation of public property. Sources said that Singapore had officially informed the government of Sri Lanka why Mahendran wouldn’t be handed over under the present circumstances. Mahendran is wanted for accepting Rs. 10.058 billion worth of bids at the 27 February 2015 auction, the first scam perpetrated within weeks after the 2015 presidential election. The then President Maithripala Sirisena replaced Mahendran with Dr. Indrajith Coormaswamy in July 2016. Former COPE Chairman Dew Gunasekera questioned the failure on the part of the Parliament to conduct a debate on the Presidential bond scam report received in January 2018. Gunasekera said that Parliament owed the country an explanation why a debate couldn’t be held for nearly three years.

Responding to The Island queries, Gunasekera said that in spite of the subject being listed in the Order Paper during the previous administration it was never taken up. The former Communist Party General Secretary pointed out that parliament should have properly taken up that issue even before receiving the treasury bond scam report. Gunasekera, who headed the 13-member special COPE subcommittee that investigated the first scam, said that he recently went through his 442 page report on the first treasury bond scam. Asked why he never submitted the report to Parliament five years after the investigation, the former Minister said that he couldn’t as the then President Sirisena dissolved parliament on the night of June 26, 2015, the day before he was to table it in the House. As the report couldn’t be presented before the dissolution, it couldn’t be tabled at all, former National List MP Gunasekera said.

“Such a valuable document never received parliamentary recognition,” the veteran leftist politician said. The CPSL General Secretary was not accommodated on the UPFA National List following the 2015 general election. Gunasekera recalled how when he questioned Mahendran in respect of the first treasury bond scam, the CBSL Governor revealed receiving instructions from Premier Wickremesinghe who held policy planning and economic affairs portfolios. Mahendran’s revelation included in the COPE report is significant as by January 18, 2015, the CBSL had been brought under Wickremesinghe, the former Minister said. Gunasekera emphasized that the CBSL shouldn’t have been removed from the Finance Ministry purview, a controversial move that was meant to effectively thwart possible intervention by President Sirisena. Gunasekera urged the Parliament to address the issue at hand.

The former minister pointed out that the treasury bond scams contributed heavily to the UNP’s crushing defeat at the last parliamentary election. Of the four UNPers summoned by the Presidential Commission, Wickremesinghe and Ravi Karunanayake suffered defeat at the last general, Malik Samarawickrema quit parliamentary politics whereas Kabir Hashim switched allegiance to the Samagi Jana Balavegaya (SJB). “Those responsible for the first scam brazenly manipulated Parliament. Imagine, they got Parliament dissolved and perpetrated the second far bigger fraud in late March 2016.

 Investigations revealed how PTL provided funds to some lawmakers though all names were never revealed.” the former minister said. Alleging that the establishment failed to properly handle the treasury bond scams, Gunasekera said, adding that the overall failure to investigate Sri Lanka’s worst post-independence financial fraud exposed the limitations in the system. However, successful system manipulation couldn’t save the UNP from its worst defeat that brought the once great party to its knees, Gunasekera said, pointing out the reduction of parliamentary strength from 106 seats to one NL slot, destroyed the UNP. 

 

 



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Wijepala claims Pillayan had prior knowledge of Easter Sunday attacks

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Minister Wijepala

Minister of Public Security Ananda Wijepala informed Parliament yesterday that Sivanesathurai Chandrakanthan, also known as Pillayan, had prior knowledge of the 2019 Easter Sunday attacks while he was in custody at the Batticaloa Prison.

“We have evidence to prove that he had prior knowledge of the attacks,” the Minister said.

The ministerial statement was made during an adjournment debate, as the Minister updated Parliament on the progress of investigations into the Easter Sunday bombings.

Wijepala also highlighted a related incident that occurred on 30 November, 2018, in which two police officers were killed in a shooting and stabbing attack. During the investigation into that incident, a former LTTE member, named Ajantha, was arrested after allegedly confessing to the crime.

However, Minister Wijepala said that findings of a CID probe had revealed Ajantha had been falsely implicated. A riding jacket, belonging to him, had been used to frame him, misleading CID officers into believing that the attack had been carried out by a former LTTE member.

Wijepala confirmed that an intelligence officer had been arrested in connection with the case. Further arrests are expected as investigations continue.

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Sri Lanka back to its high poverty levels

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From L to R: Yvette Fernando (Former Senior Deputy Governor at CBSL), Dr. Ganeshana Wignaraja (Convener of the Independent Growth Study Group), Dr. Sirimal Abeyratne (Executive Director CEPA), Dr. Dirk Willem te Velde (Director, ODI Global International Economic Development Group)

Sri Lanka’s estimated poverty (share of the population living on less than $3.65 a day) remains stubbornly high, affecting as much as a quarter of the population in 2024, and twice as high as in 2021. The reversal in poverty reduction gains during the crisis has taken Sri Lanka back to its high poverty levels of the early 2000s, finds a new study by the Centre for Poverty Analysis(CEPA).

The report, launched on Tuesday in Colombo, says: The economy has stabilised remarkably well since weathering its worst economic crisis since Independence, but there are substantial risks of a relapse. The country now needs to continue with macroeconomic stabilisation and implement a range of growth policies, with a new focus on state capacity.

The report, titled ‘Sustaining Transformative Growth in Sri Lanka 2025–2030’, offers a bold roadmap for Sri Lanka to achieve sustainable and inclusive economic growth over the coming five years. Authored by an Independent Growth Study Group, under the auspices of ODI Global and the CEPA, the report provides critical policy recommendations for navigating the country’s complex economic landscape as it emerges from its worst economic crisis since independence.

Developed by a team of nine leading experts, with extensive experience across public, private, and international sectors, the report highlights the significant progress made in stabilising the Sri Lankan economy, including renewed growth and reduced inflation. However, it stresses that the persistent challenge of high poverty levels requires a focus on economic transformation with structural reforms and targeted sectoral policies to mitigate future risks and unlock the nation’s vast potential.

Dr Ganeshan Wignaraja, Visiting Senior Fellow at ODI Global and Convenor of the Independent Growth Study Group, said: “Sri Lanka has shown remarkable resilience in overcoming recent economic hardship, but the journey towards prosperity requires more than resilience – it demands bold action. This report provides a crucial framework, not just for consolidating the hard-won gains of stabilisation, but for igniting truly transformative growth that uplifts all Sri Lankans. The opportunity is here, and we must act decisively to create a more inclusive and resilient economy.”

The study identifies six key policy areas as crucial for achieving sustainable growth: maintaining macroeconomic stability, integrating into global supply chains, improving factor markets, implementing targeted sectoral policies, reducing poverty and building political consensus. It also highlights key sectors poised for growth, including tourism, the digital economy, niche manufacturing and agriculture, driving the economic transformation of Sri Lanka in the future.

Prof. Sirimal Abeyratne, Executive Director of CEPA and a co-author of the report, emphasised the critical role of trade in this transformation: “Sri Lanka’s historical under-performance in exports is directly linked to a persistent anti-export bias and cumbersome business regulations. Our findings underscore that strategically opening up to global trade and rigorously streamlining business procedures are not just options, but essential accelerators to boost exports, stimulate investment and unleash the full potential of Sri Lankan businesses on the international stage.”

Prof. Dirk Willem te Velde, Director of the International Economic Development Group at ODI Global, said: “In today’s volatile global economy, Sri Lanka’s experience serves as a powerful lesson for recovery from deep economic crisis, setting an example for other emerging economies facing similar challenges. Our study argues how targeted policies for trade and production, innovation and digital economy, and governance can transform the country’s economic landscape and avoid further macro-economic crises. This report is a call to action for all stakeholders – government, business, civil society and citizens alike – to work together towards a shared vision of a prosperous and transformed Sri Lanka.”

The report urges a concerted effort to leverage Sri Lanka’s strategic location and build on existing production capabilities to drive growth and reduce poverty. It emphasises the importance of strategic engagement with global and regional supply chains and the digital economy to boost exports and attract foreign investment.

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Speaker to convert his official residence into knowledge centre for all elected representatives

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Dr. Jonathan Murphy, Head of the Inter Pares Global project implemented by the European Union, and Ingrid Walker, Programme Manager of Inter Pares, with Speaker Dr. Jagath Wickramaratne, at the meeting

Speaker Dr. Jagath Wickramaratne has stated that the official residence of the Speaker would be transformed into a knowledge centre providing information to all Members, representing all layers of governance in the country, the Parliament Media Division said yesterday.

He said that this centre was intended to impart essential knowledge to Members of Local Authorities, Provincial Councils, and Parliament on subjects such as international relations, fiscal policy, and governance. The Speaker also revealed that it is proposed to develop this centre into a national and international-level research institution that supports both qualitative and quantitative research.

The Speaker said so during a recent meeting held on Monday (07) at Parliament with a delegation from the European Union, including Dr. Jonathan Murphy, Head of the Inter Pares Global project, implemented by the European Union, and Ingrid Walker, Programme Manager of Inter Pares.

The Secretary General of Parliament, Kushani Rohanadeera, and Assistant Secretary General Hansa Abeyratne also attended this meeting.

The delegation of the Inter Pares Global project of the European Union, which focuses on strengthening parliamentary capacity, met with the Speaker on 7th July 2025, the opening day of a four-day programme organised at the Parliament of Sri Lanka.

The delegation stated that the primary objectives of the programme are to provide the necessary knowledge to enhance legislative activity, oversight, financial, and administrative functions of the Sri Lankan Parliament and to facilitate experience sharing.

During the meeting, discussions were also held on various other areas of focus. Commenting on parliamentary committees, the Speaker briefed the delegation on the activities carried out by the Committee on Public Enterprises (COPE) and the Committee on Public Accounts (COPA). He further explained that, in addition to the current technical assistance, measures have been taken to obtain legal support for these committees.

The Speaker further emphasised that Parliament aimed to take accurate decisions to accelerate the country’s development process while taking strict action against corruption.

Accordingly, the delegation is scheduled to meet with heads of various departments and divisions of Parliament from 7th to 11th July, to engage in the exchange of ideas.

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