News
Troubled Lanka receives economic assistance amounting to USD 2.5 bn from India this year
India has provided economic assistance to Sri Lanka amounting to USD 2.5 bn, so far this year, according to the Indian High Commission in Colombo. The announcement was made in the wake of External Affairs Minister (EAM) Dr. S. Jaishankar’s talks with President Gotabaya Rajapaksa, Foreign Affairs Minister Prof. G.L. Peiris and others on the first day of discussions, during his visit to Colombo on Monday (28).
Dr. Jaishankar is accompanied by a five-member official delegation from the Ministry of External Affairs, New Delhi for the bilateral and BIMSTEC engagements.
The Indian HC stated: “The EAM called on President Gotabaya Rajapaksa and conveyed personal greetings from Prime Minister Narendra Modi. The President of Sri Lanka thanked the Government of India (GOI) for economic assistance amounting to around USD 2.5 billion, extended to Sri Lanka in 2022. Dr. S. Jaishankar assured India’s continued support in Sri Lanka’s economic recovery process. The discussions also covered the recent Government-TNA talks, defence and energy cooperation, and thefishermen’s issues. It was agreed to deepen economic and commercial linkages with special emphasis on Indian investments.
The EAM joined Prime Minister Mahinda Rajapaksa at a special event held at the Temple Trees to virtually inaugurate the Jaffna Cultural Centre. They watched a cultural performance at the Centre – a Bharatnatyam rendition, a prayer dedicated to the peoples of India and Sri Lanka and their eternal friendship. They also had a virtual tour of the Artificial Limb Fitment Camp in Jaffna which is supported by GOI. In addition, they also witnessed signing of MoU on implementation of grant assistance from India to promote Buddhist ties between India and Sri Lanka. Further, there was an exchange of notes on the amendment to Article IX of the MoU on construction of Jaffna Cultural Centre.
The EAM met the Finance Minister. Basil Rajapaksa in the morning, who stressed the significance of deeper economic engagement between the two neighbours at a time when the impact of COVID-19 is still being strongly felt. EAM reiterated that India’s partnership with Sri Lanka was rooted in the ‘Neighbourhood First’ approach and S.A.G.A.R (Security And Growth for All in the Region) doctrine. India has stood by Sri Lanka in the hour of its need.
Foreign Minister Prof. G.L Peiris held talks with EAM in the evening. They covered the entire gamut of bilateral engagement. Attesting to the comprehensive nature of bilateral ties, they also witnessed the signing of bilateral documents in diverse areas:
i) MOU on implementation of Sri Lanka Unique Digital Identity (SL-UDI) programme with GOI’s grant assistance;
ii) MOU for providing Maritime Rescue Coordination Centre;
iii) MOU on implementation of Hybrid Power Projects in three Islands off Jaffna;
iv) MOU on cooperation in development of Fisheries Harbours in Sri Lanka;
v) MOU for the establishment of Modern Computer Labs and smart boards with customized curriculum software in 200 schools in Galle District; &
vi) MOU between Sushma Swaraj Institute of Foreign Service and the Bandaranaike International Diplomatic Training Institute.
The EAM separately met Minister of Fisheries and Aquatic Resources Douglas Devananda. They discussed issues pertaining to fishermen and exchanged views on devolution.
The EAM’s other engagements included a visit to HCL Technologies, an LIOC petrol station, and discussions with leaders representing various Tamil political parties. It may be recalled that HCL Technologies has created more than 1,800 jobs locally. LIOC has been at the forefront of energy cooperation between the two countries since its incorporation as a Sri Lankan Company two decades back.
The Jaffna Cultural Center is a glowing example of India-Sri Lanka development partnership. It was conceived as a reconciliation project primarily aimed at expanding cultural infrastructure for people of Northern Province. This state-of-the-art facility, constructed with grant assistance from GOI, consists of multiple facilities such as a museum of two floors; an advanced theatre style auditorium for more than 600 people; an 11-storeyed learning tower; a public square which could also act as an amphitheater; etc.”
Interdicted Deputy Director at the National Hospital, Sri Lanka (NHSL) Dr. Rukshan Bellana yesterday (29) alleged that the powers that be moved against him for seeking the CIABOC (Commission to Investigate Allegations of Bribery or Corruption) investigation into a massive fraud at the NHSL laboratory.
Dr. Bellana said so in response to The Island query regarding the circumstances the Health Ministry interdicted him on 18 December, through a letter, as directed by the Health Committee of the Public Service (PSC) Commission. “That letter has been signed by an Additional Secretary, as Health Secretary Dr. Anil Jasinghe was overseas,” Dr. Bellana said.
Dr. Bellana stated that the government had paid for reagents, contaminated or close to expiry dates, obtained from a leading local medical supplier, since 2022. He emphasised that his complaint to the CIABOC, and subsequent complaint to the Criminal Investigation Department (CID), were entirely based on the issues raised by the National Audit Office (NAO).
Responding to another query, Dr. Bellana said that the public funds, amounting to Rs. 900 mn, had been spent on chemical reagents past expiry dates. Regardless of the intervention made by the NAO, the NHSL continued to procure supplies from the same company, Dr. Bellana said, adding that he had received the unconditional support of the civil society. Among them were Dr. Chamal Sanjeewa, President of Medical and Civil Rights Professional Association of Doctors (MCPA), President of Academy of Health Professionals Ravi Kumudesh, and leader of Mage Rata Sanjaya Mahawatta.
Dr. Bellana said that he had complained about the scam to the CIABOC in June this year.
Dr. Chamal Sanjeewa, who also lodged a complaint with CIABOC, regarding the same matter, is on record as having said in September this year that the reagents had been procured over a three-year period without the proper approval of the Medical Supplies Division of the Ministry. Dr. Sanjeewa has alleged that some of the reagents were either contaminated or close to expiry dates, while contracts had been given to a single company at unapproved prices.
Dr. Bellana said that had there been a proper system for CIABOC and law enforcement authorities to act on findings made by the NAO they wouldn’t have personally intervened in the NHSL laboratory matter. “Parliament should look into this. Did Parliament take up the NHSL laboratory matter at the relevant watchdog committee or at the Sectoral Oversight Committee that handled health?” Dr. Bellana asked.
Asked whether the letter that informed him of his interdiction gave any specific reason for the action taken, Dr. Bellana said the Ministry had found fault with him for speaking to the media. The irate ex-official said that he never hesitated to take a stand against injustice. “When former Health Minister Keheliya Rambukwella was accused of corruption, pertaining to medical procurement, I condemned the Minister. Lambasted those responsible for wrongdoings.”
Dr. Bellana said that the NAO had dealt with mega crime involving the public and private sector. “That is the undeniable truth. Parliament should look into this as public money is its responsibility. Having vowed to stamp out corruption, the NPP was allowing and encouraging those who had been making money at the expense of the sick, Dr. Bellana said.
Dr. Bellana said that as many as 10,000 tests were conducted daily at the NHSL. The racketeers had been active during Aragalaya as the NHSL and the private supplier reached agreement in 2022 and the process continued even after the last presidential election, conducted in September 2024.
Dr. Bellana said that the long delay in finalising the Auditor General’s appointment exposed the government. If those holding high political office were genuinely interested in fighting corruption, they wouldn’t have allowed that Office of AG stay vacant even for a day.
Dr. Bellana noted the tough statements issued by the Bar Association, Transparency International Sri Lanka and the Committee on Public Finance demanding the immediate appointment of AG.
Health Ministry officials were not available for comment.
By Shamindra Ferdinando
BIA unions, including those affiliated to political parties, are demanding bonuses equal to five months’ basic salaries.
A group of workers yesterday (29) protested outside BIA urging the Airport and Aviation Services Sri Lanka (Private) Ltd to increase their bonuses. They claimed that the Chairman of Airport and Aviation Services Sri Lanka (Private) Ltd., Air Vice Marshal (Retd) Harsha Abeywickrama, had assured them that they would be paid bonuses worth five times their basic salaries.
The SriLankan Nidahas Sewaka Sangamaya (SLNSS) of the airport, the Podujana Sewaka Sangamaya, the Pragathishili Sewaka Sangamaya, the Jathika Sevaka Sangamaya, and the SLNSS of SriLankan Airlines joined the protest.
The Sri Lanka Mahaweli Authority has issued an urgent safety warning to residents living along the banks of the Kotmale Oya and the Mahaweli River, as water levels in the Kotmale Reservoir are reaching maximum capacity.
According to a special weather advisory issued by the Department of Meteorology on December 26, 2025, heavy rainfall is expected in the catchment areas over the coming days.
In response, the Mahaweli Authority released a statement on December 27, warning that spill gates may have to be opened to manage the water flow.
Eng. A.M.A.K. Seneviratne, Resident Engineer and Deputy Director of the Kotmale Reservoir, stated that the opening of spill gates would lead to a significant rise in the water levels of both the Kotmale Oya and the Mahaweli River.
Areas on Alert
Residents in the following Divisional Secretariat divisions are urged to remain extra vigilant:
• Nuwara Eliya District: Kotmale West and Kotmale East.
• Kandy District: Udapalatha, Udunuwara, Doluwa, Pasbage Korale, and Ganga Ihala Korale.
Authorities have advised the public in these low-lying and river-adjacent areas to monitor the situation closely and take necessary precautions to ensure their safety and the protection of their property.
By S.K. Samaranayake
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