News
Unilateral scrapping of trilateral pact on ECT upsets India and Japan
BY S VENKAT NARAYAN
Our Special Correspondent
NEW DELHI, February 6:
The unilateral scrapping by Sri Lanka of the trilateral agreement on developing the strategic East Container Terminal (ECT) at the Colombo Port has upset both India and Japan.
Last week, Sri Lanka unilaterally pulled out of the 2019 agreement with India and Japan after as many as 223 Sri Lankan trade unions and civil societies groups backed the Sri Lanka port trade unions demand to cancel the ECT agreement.
Said a top Indian source: “The ECT pact was a trilateral government-to-government agreement between the Government of Sri Lanka and the Governments of India and Japan. If Sri Lanka pulls out of such a G2G agreement unilaterally, what message will it convey to other governments and private investors? Will it not shake their confidence in the Sri Lankan Government’s ability to honour signed agreements? Who will want to invest in a country whose government is not able to honour a multi-billion dollar G2G agreement?”
After the Sri Lankan decision reneging on the 2019 agreement, the country’s cabinet has approved a proposal to develop the West Container Terminal (WCT) of the Colombo port as a Public Private Partnership with Japan and India. Two top sources in the Sri Lankan government said Indian response to the compensatory offer was “ambiguous” and “almost rejecting.” But Indian officials said there was no formal communication about WCT till Tuesday noon.
The Indian Express quoted an unidentified Sri Lankan official as saying: “Commercially, the West Terminal offer is better for India as it gives 85% stake for developers of the West Terminal against the 49% in ECT. Even if this is the better deal for the investor (including Adani), the final decision has to come from the Indian government. And geopolitically too, West Terminal is almost the same if they consider the security aspect and the necessity to have a port terminal in Sri Lanka.”
He went on: “And the West Terminal is no smaller in size or depth compared to the East Terminal… If Indian response remains uncertain to this proposal, I am sure it was not communicated (from the Sri Lankan side) properly to India. There is no difference between East and West Terminals except for the fact that development of the ECT is partially completed while the development of the West Terminal has to start from scratch.”
In 2019, India and Sri Lanka signed a memorandum of understanding for “co-operation on economic projects”. The development and operation of the container terminal was one of the projects in the MoU: “A Container Terminal in Colombo Port as a Joint Venture, which includes Indian investments considering that majority of transshipment in Colombo Port is related to India. GOSL will announce the award of the contract…by end May 2017”.
The MoU did not mention the Eastern Container Terminal, but India and Sri Lanka had already been in discussion for its development and operation.
xAlthough India and Sri Lanka have seemingly friendly ties and much cultural affinity and people-to-people contact, the relationship is complex — and the majority Sinhala-Buddhist public opinion is layered with the memory of Indian intervention in the ethnic conflict in the late 1980s.
Unlike Chinese projects, big projects by India have always faced opposition in Sri Lanka. Sinhala-Buddhist politicians either ride such opposition opportunistically when it suits them, sometimes using this as a pretext over the real reason, or are reluctant to go counter to the public sentiment for fear of being attacked for surrendering to “big brother India”.
This was perhaps why India had invited Japan to work with it in at least two of the projects listed in the MoU: the ECT, and an LNG Terminal/Floating Storage Regasification Unit (FSRU) in Kerawalapitiya/Colombo with a piped gas distribution system along with retail outlets for CNG etc. The expectation was that this would ensure that the projects come through. Japan was the biggest donor to Sri Lanka through the years of conflict. The Geoffrey Bawa-built Sri Lankan Parliament, which came up at the height of the conflict, was funded by Japan. It continues to give Sri Lanka substantial financial support even now.
However, the old relationship between Sri Lanka and Japan has undergone changes as China’s footprint over Colombo has grown. Late last year, the Rajapaksa government unilaterally cancelled a Japanese project for a commuter rail in Colombo.
As per a Memorandum of Co-operation (MoC) signed by the previous Maithripala Sirisena-Ranil Wickremesinghe administration, the Sri Lanka Ports Authority (SLPA) would have 100 per cent ownership of the ECT. The Terminal Operations Company (TOC) conducting all East Container Terminal operations was to be jointly owned, with Sri Lanka retaining a 51% stake, and the joint venture partners 49%, according to a statement by the Ports and Shipping Ministry at the time. A 40-year loan at an interest rate of 0.1% from Japan was expected to fund the development of the ECT.
“The envisaged Japanese loan carries one of the best loan terms Sri Lanka has obtained. The 51% stake is also one of the best in SLPA joint ownership endeavours. SLPA’s majority ownership in the new TOC represents a significant step in prioritising national interests,” the statement had said.
The Sri Lankan side believes it can persuade India and Japan that the West terminal is strategically no different from the East, and commercially even better. One official told the Indian Express that the developers could hold as much as 85 per cent stake in the West terminal as opposed to just 49 per cent in ECT. It would be a much better option for Adani, he said.
For New Delhi, the ECT deal is important as between 60 and 70 per cent of transshipment that takes place through it is India-linked. The ECT is also considered more strategic than any other in Colombo Port. It is located next to the Colombo International Container Terminal (CICT) project, a joint venture between China Merchants Port Holdings Company Ltd. and SLPA.
India had been offered the Western Container Terminal earlier, but had refused. The ECT is already operational, while the WCT has to be built from scratch.
There are reports circulating in diplomatic circles that China had played a role in instigating port unions’ protest against India’s interest. New Delhi and Tokyo have desisted from commenting on such reports. But an Indian source quipped: “The Sri Lankan Government has done nothing so far to deny such reports.”
A senior SLPP minister said: “Gota (President Gotabya Rajapaksa) is a man who never changes his word. But he had to agree to cancel the ECT agreement as it was almost reaching up to the level of shaking his Presidential chair.”
Will there be similar protests and crises if India and Japan accept the West Terminal offer?
The Sri Lanka government sources rules out chances of any further trouble on the cabinet-proposed West Terminal offer.
“There were talks held at this point and the Sri Lanka government authorities received the feedback that John Keells Holding PLC (JKH), largest public listed conglomerate in Sri Lanka, and India’s Adani group may agree with WTC offer as a compromise formula with a promise that the private stake will be 85% in WTC instead of 49% at ECT,” said a top Sri Lanka Ports Authority (SLPA) official.
The Sri Lanka government also got the written consent of unions in this regard. Out of 23 unions, 22 signed and gave a letter agreeing to support the government in its plans to develop the West Terminal with private investment. The consent letter of unions said: “We will support a good investment decision that the government would take in future in relation to the West Terminal.”
Viyath Maga (Professionals for a Better Future), a network of academics, professionals and entrepreneurs, had played a key role in the final round of negotiations between the unions and the government, which had led to the latest WTC proposal.
Nalaka Godahewa of Viyath Maga, who was the former chairman of SLPA and the current state minister of Urban Development, told the Indian Express in a telephone interview that Sri Lanka is not pushing India away from the deal. “Instead, we being professionals, we volunteered to talk and find an agreeable ground through dialogues ensuring that it would respect the Indian interests as well. It is a win-win solution now,” he said.
News
Ex-lawmakers group calls for IPU’s intervention to check “irregularities” in Parliament
Association of Former Members of Parliament of Sri Lanka has requested the Inter-Parliamentary Union to inquire into, what the group calls, institutional irregularities in Parliament.
The Association cited the decision taken by the Attorney General not to appear for Speaker Dr. Jagath Wickremeratne, in a case filed in the Court of Appeal by sacked Deputy Secretary General of Parliament Chaminda Kularatne, to underscore the need for IPU’s intervention.
The following is the text of the letter signed by former JVP MP Premasiri Manage, on behalf of the Association: We write to Your Excellency on behalf of the Association of Former Members of Parliament of Sri Lanka, an independent body representing former legislators who have served the Parliament of Sri Lanka across successive administrations. The Association is committed to upholding democratic values, parliamentary traditions, institutional integrity, and the rule of law within Sri Lanka’s governance framework. It is with grave concern that we bring to your attention a series of developments that, in our respectful view, seriously undermine parliamentary democracy, administrative fairness, and institutional independence in Sri Lanka.
1. Unlawful Cancellation of Parliamentary Pensions
The present Government of Sri Lanka has, through actions that we consider both unlawful and unethical, cancelled the pension entitlements of former Members of Parliament. This decision appears to have been taken arbitrarily, without adherence to established legal principles, legitimate expectations, or due process, thereby undermining the dignity and security of those who have served in the national legislature.
2. Illegal and Malicious Interdiction of the Deputy Secretary General of Parliament
We wish to draw urgent attention to the interdiction of the Chief of Staff and Deputy Secretary General of Parliament, which raises serious concerns regarding abuse of authority and interference in administrative due process. According to material presently before the Court of Appeal of Sri Lanka (CA/Writ Application No. 109/2026), the interdiction:
• Was imposed through the Parliamentary Staff Advisory Committee (PSAC), which lacks lawful authority to exercise such disciplinary powers, rendering the action ultra vires;
• Was based on a preliminary inquiry conducted without proper legal mandate, thereby invalidating the process from its inception;
• Was not the result of an independent administrative determination, but was carried out following the direct personal intervention and influence of Speaker, Dr. Jagath Wickramaratne;
• Appears to have been driven by personal and retaliatory considerations, amounting to a malicious exercise of authority rather than a lawful disciplinary process.
Importantly, it is also noted that the Attorney General of Sri Lanka has withdrawn from appearing on behalf of the Hon. Speaker in the related proceedings, reportedly in view of serious procedural irregularities associated with the interdiction process. The Speaker has consequently retained private legal counsel. This development strongly indicates that serious legal and procedural defects exist in the interdiction process, further reinforcing concerns regarding its legality and propriety. It is therefore evident that the lawful disciplinary framework vested in the Secretary General of Parliament was bypassed, resulting in a serious violation of the principles of natural justice, institutional independence, and the rule of law.
3. Discrimination and Harassment within Parliamentary Administration
We are also deeply concerned by credible allegations of discrimination and harassment within the parliamentary administrative structure, which, in our respectful view, have arisen as a result of the interference of the present Speaker in the administrative affairs of Parliament, thereby undermining the independence of the parliamentary administration. These concerns include:
• Discriminatory conduct affecting senior officials, including the Deputy Secretary General;
• Harassment and discriminatory treatment of female staff members within Parliament;
• The resignation of one female officer due to such circumstances;
• Confirmed findings of harassment in respect of another female officer attached to the Information Technology Division, as established by a report submitted by a former High Court Judge.
These incidents indicate a disturbing pattern of administrative misconduct and a failure to ensure a safe, independent, and professional working environment within Parliament.
3. Broader Institutional Concerns
The above matters collectively raise serious concerns regarding:
• The erosion of the independence of parliamentary administration;
• Abuse of authority and concentration of power;
• Undermining of due process and established legal frameworks;
• A broader decline in adherence to democratic governance standards.
Request for Engagement
In light of the foregoing, we respectfully request that the Inter-Parliamentary Union:
1. Intervene and monitor the situation;
2. Call for reports and clarifications from the Speaker and senior parliamentary administration;
3. Facilitate independent review and observation of relevant judicial proceedings;
4. Promote accountability and restoration of institutional integrity within Parliament.
Given the IPU’s distinguished role in safeguarding parliamentary democracy and promoting good governance worldwide, we firmly believe that your timely engagement will contribute significantly to restoring institutional integrity and public confidence in Sri Lanka’s Parliament.
News
Power and Energy Minister, Ministry Secy resign over coal probe
Power and Energy Minister Kumara Jayakody and Ministry Secretary Prof. Udayanga Hemapala have resigned from their posts.According to the President’s Media Division (PMD), the two officials submitted their letters of resignation to President Anura Kumara Dissanayake this afternoon.
The resignations come in the wake of a Special Presidential Commission of Inquiry appointed to probe possible unlawful activity and financial irregularities in coal procurement and power generation.
The PMD said the decision was taken to ensure that the Commission’s work proceeds without interference or perceived influence from individuals holding office.
Minister Jayakody, in his resignation letter, noted that following the appointment of the Commission, he had requested that investigations into coal imports, since 2009, be referred to the Criminal Investigation Department (CID), describing it as part of the government’s anti-corruption mandate.
He added that the inquiry should be conducted independently and without bias, and said his continued presence in office could be perceived as an obstacle to the process.
Prof. Hemapala, in his resignation letter, said his decision was intended to facilitate the commencement of investigations and ensure a transparent and independent process, the PMD said.
The Special Presidential Commission was recently appointed to examine allegations of irregularities in coal imports and electricity generation over a prolonged period and to recommend corrective measures.
News
President appoints Commission to probe irregularities in coal imports from inception of Norochcholai
President Anura Kumara Dissanayake yesterday appointed a Presidential Commission of Inquiry to investigate alleged irregularities in coal imports and electricity generation, amid concerns over possible financial losses to the State.
The President’s Office said the Commission would examine transactions from the inception of coal-based power generation in Sri Lanka up to April 16, 2026, focusing on operations linked to the CEB-affiliated Lanka Coal Company (Pvt) Ltd., its successors, and private suppliers.
The three-member body is chaired by Supreme Court Justice Gihan Kulatunga, with Court of Appeal Justice Adithya Patabendige and High Court Judge Sanjeewa Somaratne as members. Former Ministry Secretary P.V. Bandulasena has been appointed Secretary to the Commission.
Appointed under the Special Presidential Commissions of Inquiry Act No. 07 of 1978, as amended, the Commission has been mandated to scrutinise procurement procedures, supply chains, quality testing, and operational processes connected to coal imports and utilisation.
The Commission has been tasked with the following mandates:
• To determine whether irregularities or illegal acts occurred in the procurement process for coal imports and to assess any resulting financial loss to the government.
• To investigate whether substandard coal was imported during the relevant period and to examine the entire associated workflow, including procurement, supply, quality testing, operational, and utility processes.
• To ascertain whether electricity generation using imported coal reached the expected levels of efficiency and productivity.
• To investigate whether legal or financial irregularities or illegal acts occurred during the power generation process if substandard coal was indeed utilized.
• To examine whether there were any breaches of expressed terms or conditions in these processes and, if so, whether measures such as withholding payments or other compensatory actions were taken.
• To identify the political authorities, government officials, officers of Lanka Coal Company (Pvt) Ltd, suppliers, or their agents responsible for any such incidents and to recommend future action to be taken against them.
• To propose measures to prevent the recurrence of such alleged malpractices or illegal acts in the future and to ensure proper governance and integrity.
In addition to the above, the Commission will also report on any other alleged malpractices or illegal acts related to coal importation and electricity generation, and recommend preventive measures to address such issues.
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