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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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Water Board security guard nabbed with six kilos of ganja

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A security guard attached to the National Water Supply and Drainage Board’s Gorakadeniya Water Treatment Plant has been arrested by Peradeniya Police after more than six kilos of cannabis were found inside the facility’s guard room.

The 25-year-old suspect, a resident of Gorakadeniya, was taken into custody following a targeted operation conducted by Peradeniya Police on 02 June based on intelligence received by Officer-in-Charge Chief Inspector Wijith Wijekoon.

During a search of the guard room, police officers recovered a bag containing approximately 6.1 kilos of cannabis, police said.

Investigators believe the suspect had been using the guard room as a storage location for narcotics.

Further inquiries revealed that the suspect had allegedly been engaged in distributing cannabis to various locations in the region using a motorcycle. Police said he had adopted a location-based delivery method to supply the narcotics to customers.

Authorities suspect that the individual had been involved in drug trafficking activities for a considerable period, and have obtained a detention order from court to facilitate further interrogation.

Police said the ongoing investigation is expected to uncover additional information regarding the suspect’s alleged links to a broader narcotics distribution network operating in the Peradeniya area.

The suspect is to be produced before court following the completion of preliminary investigations.

Peradeniya Police are conducting further inquiries.

By SK Samaranayake

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Climate summit to map Lanka’s growth strategy

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As climate-linked regulations, investor expectations, and financing requirements increasingly influence global trade and market access, the Sri Lanka Climate Summit 2026, will place business readiness at the centre of national conversation, with a high-level line-up of policymakers, international agencies, corporate leaders, and technical experts set to examine what climate preparedness means for Sri Lanka’s economy in practice. Organised by The Ceylon Chamber of Commerce, the Summit will take place on 9 June at the Grand Marquee, Taj Samudra Colombo.

Held under the theme “From Risk to Opportunity: Mainstreaming Climate Action into Sri Lanka’s Growth Story,” the Summit’s agenda will examine the realities of climate preparedness for businesses, industries, and policymakers, with discussions spanning investment readiness, disaster resilience, governance, industry transition, and climate finance.

The Summit will open with a high-level plenary titled “Is Sri Lanka Climate Ready for Investment?” exploring how climate readiness is increasingly influencing investor confidence, trade access, and economic competitiveness. Dr. Dammika Patabendi, Minister of Environment, will deliver the keynote address, and join a panel discussion that includes Shannon Cowlin, Country Director for Sri Lanka at the Asian Development Bank, Vimlendra Sharan, UN-FAO Country Representative for Sri Lanka and Maldives, and Dilhan Fernando, Chairman and CEO of Dilmah Tea. The discussion will examine the opportunities and barriers shaping Sri Lanka’s climate investment outlook, and will be moderated by Shiran Fernando, Secretary General and CEO of the Ceylon Chamber.

The conversation will then turn to resilience through “Build Better – Before, During, and Beyond,” a session focused on disaster preparedness and climate-linked disruptions, featuring keynote remarks by Marco Toscano-Rivalta, Chief of the Regional Office for Asia and the Pacific of the United Nations Office for Disaster Risk Reduction (UNDRR). Climate risk and adaptation specialist Rohan Cooray will join the discussion, moderated by Dr. Lalanath de Silva, Executive Director of Environmental Law Alliance Worldwide.

A second technical session, “Sector Pathways – Where Policy Meets Industry,” will examine how regulation, industry readiness, digitalisation, and finance intersect as Sri Lanka responds to emerging climate obligations. The session will feature keynote remarks by Azusa Kubota, UNDP Resident Representative in Sri Lanka, and an address by Dr. Lalanath de Silva, both of whom will then join the panel discussion featuring Secretary to the Ministry of Environment K.R. Uduwawala, Chief Advisor to the President on Digital Economy Dr. Hans Wijayasuriya, and Sanath Manatunge, Managing Director/CEO of Commercial Bank of Ceylon PLC. The session will be moderated by Saliya Wickramasuriya, Co-Chair of the Ceylon Chamber Energy Committee.

The private sector response will take centre stage during “Climate in the Boardroom: From Compliance to Competitive Advantage,” which will explore how companies are responding to climate disclosure requirements, sustainability expectations, and business risks while identifying opportunities for long-term competitiveness. The session will feature keynote remarks by Neha Khanna, Associate Director at Climate Policy Initiative, with perspectives from Sabrina Esufally, Managing Director of Hemas Consumer Brands, and Dr. Leonie Vaas, General Manager – Group Sustainability at Hirdaramani Apparel. Yasangi Muditha Randeni, Chief Sustainability Officer and AVP – Corporate Strategy & Sustainability at Aitken Spence PLC, will moderate the discussion.

The Summit will conclude its technical programme with “Unlocking Climate Finance: From Global Funds to Local Projects,” examining how Sri Lanka can better translate international climate funding into bankable, investable local opportunities. Rajesh Miglani, Senior Climate Business Specialist and Climate Anchor for IFC South Asia, will deliver the keynote address, while Dr. Ananda Mallawatantri, Co-Chair of the Climate Action Committee of the Ceylon Chamber of Commerce, will lead the discussion alongside Punyamali Saparamadu, Senior Vice President –  Commercial of the Colombo Stock Exchange, and Shayani Weerasinghe, Sustainable Business Specialist at Expertise France

The Sri Lanka Climate Summit 2026 is expected to attract business leaders, policymakers, development agencies, sustainability professionals, financiers, and technical experts seeking to better understand how climate readiness is reshaping economic opportunity and business competitiveness in Sri Lanka.

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CB Governor to brief House on fiscal policy and related economic matters next week

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Dr. Weerasinghe

Central Bank Governor Dr. Nandalal Weerasinghe is scheduled to brief Members of Parliament on the country’s fiscal policy and related economic matters next Wednesday as Parliament convenes for sittings from June 9 to 12.

The awareness programme to be held within the Parliamentary Complex on June 10 was approved by the Committee on Parliamentary Business at its meeting on June 1 chaired by Speaker Dr. Jagath Wickramaratne. The session has been arranged at the request of Minister of Labour and Deputy Minister of Finance and Planning Dr. Anil Jayantha and will also be attended by senior Central Bank officials.

Secretary General of Parliament Kushani Rohanadeera said the parliamentary agenda for the four-day sitting had been finalised by the Committee on Parliamentary Business.

On June 9, Parliament will debate and seek approval for several orders under the Stamp Duty (Special Provisions) Act, Ports and Airports Development Levy Act, Excise (Special Provisions) Act and Value Added Tax Act, as well as a decision under Standing Order 119. A resolution under the Public Security Ordinance is also scheduled for debate and approval later in the day.

The following day, lawmakers will take up the Second Reading debate on the Telecommunication Levy (Amendment) Bill and the Finance (Amendment) Bill, while a resolution under the Essential Public Services Act is also due to be debated. An Opposition adjournment motion will be taken up at the end of the sitting.

On June 11, Parliament will debate the Mediation (Civil and Commercial Disputes) Bill at the Second Reading stage and an order under the Mutual Assistance in Criminal Matters Act before proceeding to an Opposition-led adjournment debate on the current situation of the country.

On June 12, Members will debate rules under the Central Bank of Sri Lanka Act and a supplementary estimate seeking approval for Rs. 20 billion in additional expenditure. Parliament will thereafter continue the adjournment debate on the Central Bank’s Annual Economic Review for 2025, which commenced on May 20.

As per the schedule, the period from 9.30 am to 10 am on each sitting day has been allocated for parliamentary business, followed by questions for oral answers. On June 10, however, questions directed to the Prime Minister will be taken up from 10 am to 10.30 am.

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