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Treasury bond scams: Sixth Forensic Audit yet to be commissioned

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… CBSL awaiting AG’s advice to finalize procurement process; five reports cost taxpayers Rs 275 mn

By Shamindra Ferdinando

Many an eyebrow has been raised over the inordinate delay in carrying out the recommendations made by the Presidential Commission of Inquiry that probed the Treasury bond scams perpetrated in 2015 and 2016.

Of the six forensic audits called by the PCoI, the sixth one hasn’t been commissioned yet. The PCoI handed over its report to the then President Maithripala Sirisena in Dec 2017.

The Island

 recently sought an explanation from the CBSL as regards the forensic audit yet to be commissioned; its Communications Department said that the procurement process for selecting a suitable auditor was continuing. It said the CBSL was awaiting the Attorney General’s advice with regard to certain clarifications to bring the procurement process to a successful conclusion.

Asked what would be the total expenditure of all six forensic audit reports, the spokesperson said that the five reports received so far had cost Rs. 275 mn. The five reports were received by Parliament during the previous administration.

Asked whether the CBSL had taken action on the reports received so far, the spokesperson said that the Monetary Board had appointed a Task Force to facilitate and oversee implementation of the recommendations made in forensic audits received so far. “Copies of five Forensic Audit Reports were submitted to the Attorney General to enable them use relevant information in the relevant court cases. Copies of the five forensic audit reports were also submitted to the Auditor General.”

The Island 

asked whether CIABOC (the Commission to Investigate Allegations of Bribery or Corruption) had sought information on Treasury Bond scams from the CBSL, the spokesperson said: “Yes, copies of the forensic audit reports as per the request of the Director General of CIABOC have been provided to CIABOC.”

Recently, President Gotabaya Rajapaksa appointed new Commissioners to the CIABOC in terms of the 20th Amendment to the Constitution. The Commission comprises retired Supreme Court Justice Eva Wanasundera, retired Appeals Court Justice Deepali Wijesundera and retired DIG Chandra Wakista. Justice Wanasundera is also a veteran of the AG’s Department prior to being appointed to the Supreme Court.

Former COPR Chairman D. E. W Gunasekera told The Island that the failure on the part of Parliament to pursue the Treasury bond scams was unacceptable. The former minister pointed out that Parliament hadn’t at least debated the PCoI report which it received in early 2018.

 

 



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Financial contributions received for ‘Rebuilding Sri Lanka’ Fund

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The Government’s ‘Rebuilding Sri Lanka’ Fund, established to provide relief and support to communities affected by Cyclone Ditwah, continues to receive financial contributions on a daily basis.

Accordingly, the Containers Transport Owners Association made a financial contribution of Rs. 1.5 million, while the Association of SriLankan Airlines Licensed Aircraft Engineers contributed Rs. 1.35 million to the Fund.

The respective cheques were formally presented to the Secretary to the President, Dr. Nandika Sanath Kumanayake, at the Presidential Secretariat on Friday (19).

The occasion was attended by  W. M. S. K. Manjula, Chairman of the Containers Transport Owners Association, together with  Dilip Nihal Anslem Perera and  Jayantha Karunadhipathi.

Representing the Association of SriLankan Airlines Licensed Aircraft Engineers were Deshan Rajapaksa,  Samudika Perera and  Devshan Rodrigo handed over the cheque.

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UNICEF representatives and PM discuss rebuilding schools affected by the Disaster

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A meeting between Prime Minister Dr. Harini Amarasuriya and a delegation of UNICEF representatives was held on Saturday,  (December 20) at the Prime Minister’s Office.

During the meeting, the Prime Minister explained the measures taken by the Government to ensure the protection of the affected student community and to restore the damaged school system, as well as the challenges encountered in this process.

The Prime Minister stated that reopening schools located in landslide-prone areas would be extremely dangerous. Accordingly, the Government is focusing on identifying such schools and relocating them to suitable locations based on scientific assessments.

The Prime Minister further noted that financial assistance has been provided to students affected by the disaster, enabling parents to send their children back to school without an additional financial burden. Emphasizing that school is the safest place for children after their homes, the Prime Minister expressed confidence that the school environment would help restore and improve students’ mental well-being

The Prime Minister also highlighted that attention has been given to several key areas, including the relocation of disaster-affected schools, restoration of school infrastructure, merging and operating certain schools jointly, facilitating teaching and learning through digital and technological strategies, and providing special transportation facilities. She emphasized that the Government is examining these issues and is committed to finding long-term solutions.

The UNICEF representatives commended the Government’s commitment and the initiatives undertaken to restore the education sector and assured their support to the Government. Both parties also discussed working together collaboratively on future initiatives.

The meeting was attended by the UNICEF representatives to Sri Lanka Emma Brigham, Lakshmi Sureshkumar, Nishantha Subash, and Yashinka Jayasinghe, along with Secretary to the Ministry of Education Nalaka Kaluwewa, Director of Education Dakshina Kasturiarachchi, Deputy Directors Kasun Gunarathne and Udara Dikkumbura.

(Prime Minister’s Media Division)

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NMRA laboratory lacks SLAB accreditation

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Dr. Sanjeewa

Drug controversy:

 “Setting up state-of-the-art drug testing facility will cost Rs 5 billion”

 Activists call for legal action against politicians, bureaucrats

Serious questions have been raised over Sri Lanka’s drug regulatory system following revelations that the National Medicines Regulatory Authority’s (NMRA) quality control laboratory is not accredited by the Sri Lanka Accreditation Board (SLAB), casting doubt on both the reliability of local test results and the adequacy of oversight of imported medicines.

Medical and civil rights groups warn that the issue points to a systemic regulatory failure rather than an isolated lapse, with potential political and financial consequences for the State.

Chairman of the Federation of Medical and Civil Rights Professional Associations, Specialist Dr. Chamal Sanjeewa, said the controversy surrounding the Ondansetron injection, which was later found to be contaminated, had exposed deep weaknesses in drug regulation and quality assurance.

Dr. Sanjeewa said that the manufacturer had confirmed that the drug had been imported into Sri Lanka on four occasions this year, despite later being temporarily withdrawn from use. The drug was manufactured in India in November 2024 and in May and August 2025, and imported to Sri Lanka in February, July and September. On each occasion, 67,600 phials were procured.

Dr. Sanjeewa said the company had informed the NMRA that the drug was tested in Indian laboratories, prior to shipment, and passed all required quality checks. The manufacturer reportedly tested the injections against 10 parameters, including basic quality standards,

pH value, visual appearance, component composition, quantity per phial, sterility levels, presence of other substances, bacterial toxin levels and spectral variations.

According to documents submitted to the NMRA, no bacterial toxins were detected in the original samples, and the reported toxin levels were within European safety limits of less than 9.9 international units per milligram.

Dr. Sanjeewa said the credibility of local regulatory oversight had come under scrutiny, noting that the NMRA’s quality control laboratory was not SLAB-accredited. He said establishing a fully equipped, internationally accredited laboratory would cost nearly Rs. 5 billion.

He warned that the failure to invest in such a facility could have grave consequences, including continued loss of life due to substandard medicines and the inability of the State to recover large sums of public funds paid to pharmaceutical companies for defective drugs.

“If urgent steps are not taken, public money will continue to be lost and accountability will remain elusive,” Dr. Sanjeewa said.

He added that if it was ultimately confirmed that the drug did not contain bacterial toxins at the time it entered Sri Lanka, the fallout would be even more damaging, severely undermining the credibility of the country’s health system and exposing weaknesses in health administration.

Dr. Sanjeewa said public trust in the health sector had already been eroded and called for legal action against all politicians and public officials responsible for regulatory failures linked to the incident.

by Chaminda Silva ✍️

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