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Midweek Review

US funding for Colombo port project involving Adani group and JKH in the balance

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US International Development Finance Corporation (DFC) CEO Scott Nathan and US Ambassador to Sri Lanka Julie Chung at West Container Terminal site in early Nov. 2023. The visit took place in the wake of the US announcement of a $553 mn loan to Colombo West International Terminal Private Limited (CWIT). Adani group partly owns CWIT (pic courtesy US embassy)

Gautam Adani

In response to US indictment, Adani has declared that his conglomerate is committed to “world-class regulatory compliance.” The international media quoted one of the world’s richest as having said: “This is not the first time we have faced such challenges. What I can tell you is that every attack makes us stronger. And every obstacle becomes a stepping stone for a more resilient Adani Group.”

Adani said so at an awards ceremony in Jaipur.

By Shamindra Ferdinando

Dr. Ganeshan Wignarajah, in his capacity as an advisor to the Sri Lankan President, and member of the Geopolitical Cartographer board, as mentioned in the latest Indo-Pacific Defence Forum, dealt with the ongoing economic-political-social crisis here.

Dr. Wignarajah, who had served as the Executive Director of the Lakshman Kadirgamar Institute (LKI) during the Yahapalana administration, quite confidently asserted (i) economic mismanagement (ii) Chinese loans and (iii) Covid-19 and other external shocks caused the unprecedented crisis.

The quarterly, published by the Commander of the U.S. Indo-Pacific Command, is meant to promote their overall political-military and social strategy in the Indo-Pacific region.

The Sri Lankan-born academic, in his article titled ‘Partners for Progress: Sri Lanka works with India, U.S. to bolster economy, stability,’ examined the developing situation here against the backdrop of, what he called, Chinese debt trap diplomacy. China has strongly refuted such accusations over the years. We haven’t forgotten the verbal battle between Yahapalana Finance Minister Ravi Karunanayake and the then Chinese Ambassador Yi Xianliang over the former’s disparaging remarks on interest rates on loans provided by China. This was in late 2016, several months after the second mega Treasury bonds scam, perpetrated by the Premier Ranil Wickremesinghe-led government.

Dr. Wignarajah conveniently refrained from making reference to over USD 10,000 million in new International Sovereign Bonds that had been taken between 2015 and 2019, following the change of government. Former President Mahinda Rajapaksa is on record as having declared procurement of USD 10,000 million, by the Yahapalana leaders, broke the back of the Sri Lankan economy. Instead, the academic cleverly hid the Yahapalana borrowings. Dr. Wignarajah declared (in verbatim): “Sri Lanka’s default demonstrates the risk of imprudent foreign borrowing, with relying on sovereign bonds with high interest rates to finance development projects or high-interest, low return Chinese loans.’’

As the article had been formulated before the presidential election that was held on Sept. 21, 2024, the professorial fellow in economics and trade at Gateway House, Mumbai, missed an opportunity to examine post-national poll developments.

The unexpected emergence of the National People’s Power (NPP), as the dominant political power, at the expense of the Sri Lanka Podujana Peramuna (SLPP) and the United National Party (UNP), according to some, may change the dynamics of Sri Lanka’s relations with the US-led grouping that includes India. However, others assert that bankrupt Sri Lanka has no other option but to continue with the IMF agenda and an agreement on economic partnership, signed in July 2023, by Premier Narendra Modi and the then President Ranil Wickremesinghe.

Wickremesinghe, who suffered a humiliating defeat in the presidential poll on September 21, and then at the parliamentary elections on Nov. 14, 2024, emphasized the responsibility on the part of his successor Anura Kumara Dissanayake to fully implement, what he called, the ‘Vision document’ with India.

The Press Trust of India (PTI) quoted Wickremesinghe as having said so on the sidelines of an event he attended at the Sri Sathya Sai Vidya Vihar school recently.

The SLPP-led Parliament that elected Wickremesinghe as the President in July 2022 to complete the remainder of President Gotabaya Rajapaksa’s five-year term, owed the country an explanation whether the former received the approval of the Cabinet to finalize the so-called ‘vision document.’ The latest Indo-Lanka agreement dealt with strengthening maritime, air and energy ties, as well as land connectivity between the two countries. There hadn’t been a proper discourse, at any level, regarding the ‘Vision document,’ though various interested parties promoted the controversial ‘Vision document’ in the run-up to the presidential election.

On behalf of India, Pathfinder Foundation requested the leading candidates at the presidential election, namely Ranil Wickremesinghe, Sajith Premadasa and Anura Kumara Dissanayake, to go ahead with the ‘vision document.’

It would be pertinent to mention that Dr. Wignarajah has ceased to be an advisor to the Sri Lankan President in the wake of Wickremesinghe’s defeat. The advisor had been also involved with Pathfinder Foundation as a senior visiting fellow at the Foundation.

He has had the audacity to even deal in cavalier fashion with India’s intervention in 2022 to save Sri Lanka with reference to the Adani Group’s investments here as well as longstanding US projects, such as the Millennium Challenge Corporation that was rejected by President Gotabaya Rajapaksa’s government.

Essentially, the expert addressed the issues at hand from the point of view of the US-India response to the Sri Lanka crisis.

New developments

The killing of Canada-based Sikh separatist leader Hardeep Singh Nijjar outside his Vancouver temple in June 2023 has caused an unprecedented diplomatic row between New Delhi and Ottawa. The killing that Canada had blamed on India without whatsoever hesitation led to tit-for-tat expulsion of diplomatic staff. Among those who had been expelled were the top most Indian and Canadian intelligence officials based in the respective capitals.

But what really upset New Delhi was the US and the UK throwing their collective weight behind Canadian accusations, thereby undermining the Modi government’s international standing. Perhaps, the harm that had been caused to the relations between Canada and India can never be restored.

International news agencies in Oct, 2024 quoted the spokesperson of the UK’s Foreign Commonwealth and Development Office (FCDO) as having said: “We are in contact with our Canadian partners about the serious developments outlined in the independent investigations in Canada. The UK has full confidence in Canada’s judicial system. Respect for sovereignty and the rule of law is essential.”

“The Government of India’s cooperation with Canada’s legal process is the right next step,” the official added.

On top of the simmering diplomatic row with Ottawa, the US has filed charges against an Indian government employee over his alleged involvement in a failed plot to kill an American citizen of Indian origin. The Federal Bureau of Investigation has identified a New York-based targeted person as a prominent advocate for Sikh separatism.

The US Attorney’s Office for New York declared in Oct, 2024 that it filed “murder-for-hire and money laundering charges” against Vikash Yadav.

Another suspect in the case, Nikhil Gupta, was extradited to the US earlier, in 2024, to face charges, while Yadav remains at large. There hadn’t been such high profile previous cases involving Indian government agents conducting clandestine operations in the West.

Canadian and US investigations have placed India in an utterly embarrassing position. In spite of strong Indian denials, both Canada and the US have maintained that India is under investigation.

The possibility of Canada and the US trying to establish a connection between those who had been involved in operations in their respective territories cannot be ruled out.

The state of crisis of Indian foreign relations with the West has to be discussed, taking into consideration the shocking Canadian declaration that no less than Home Minister Amit Shah, widely believed to be the second most powerful person in the country, sanctioned the Vancouver hit.

Regardless of Indian denial, Canada has refused to change its stand with regards to Shah’s direct involvement in targeting those India considered as a threat. There seems to be no way forward for India on the matter, especially in the West as both Canada and the US pursued investigations.

How could the Canadian and US common stand in respect of clandestine operations undertaken by India undermine India’s once robust relations with the West? Can the West jeopardize their relations with India, at a time they are in conflict with China and Russia?

The Modi’s government obviously has ended up with egg on its face and is struggling to cope up with extremely harmful media coverage. Shah is the chief aide to Premier Modi.

Against the backdrop of Canadian accusations directed at Shah, the US is also likely to probe the possibility of the powerful Home Minister having a hand in the New York operation. Whatever the outcome of Canadian and US investigations, New Delhi will have to address the collective responsibility on the part of the Indian Cabinet in authorizing clandestine operations overseas.

The Adani factor

Dr. Ganeshan Wignarajah

When Wickremesinghe recently demanded that his successor President Dissanayake goes ahead with the ‘Vision document’ with India, he was probably turning a blind eye to the US indictment of Gautam Adani over high profile accusations regarding the USD 265 mn alleged bribery scam to benefit Indian government officials.

Perhaps, the US move against Adani, one of the closest associates of Modi, may destabilize Indo-US relations. Adani and seven others had been charged over, what the US called, the corrupt solar project. They have been accused of securities fraud, conspiracy to commit securities fraud, and wire fraud.

Dr. Wignarajah, in his piece to the US military magazine, praised the Adani projects here to the high heavens. Obviously, as the US indictment hadn’t been announced at the time the academic submitted his piece to the Indo-Pacific command, he couldn’t be faulted for the omission. However, the new Sri Lanka government shouldn’t try to side-step the issue by engaging in delaying tactics.

Unexpected bribery accusations that had been directed at the Indian conglomerate placed a major US funded project here under an extremely difficult situation, particularly because the US was to provide funding to the tune of over half a billion USD. The West Container Terminal at the Colombo port involved Sri Lankan blue chip John Keells and the Adani Group. Other participants are Special Economic Zone Limited and Sri Lanka Ports Authority in the USD 700 mn project.

The NPP government never expected the US to move legal action against the Adani group and may find it difficult to explain Sri Lanka’s continuing partnership with the Indian conglomerate. Unless of course, proper reassessment was made in respect of the Port project as well as other investments, particularly investment of U.S. 1.4 bn for wind power plants.

The US recently disclosed that though they promised over half a billion USD for the Colombo port project, the funding hadn’t been made available so far. Would denial of US funding undermine the implementation of the Port project. Construction began in Nov. 2022, five months after Parliament elected Wickremesinghe as the President.

The US stepped in during Ranil Wickremesinghe tenure as the President after previous plans for the East Container Terminal, involving Japan and India, had to be shelved due to protests. Sri Lanka had no other option but to offer the Colombo West Terminal project to appease New Delhi, furious about unilateral cancellation. The country paid a huge price for such cancellations, having announced mega projects without proper evaluation and consensus with stakeholders. There can be no better example than the idiotic cancellation of the Japanese-funded Colombo light rail project soon after the 2020 general election.

Japan reacted angrily to the unilateral announcement of the cancellation of USD 1.4 bn project funded by Japan through a soft loan.

What would be the fate of the West Container Terminal project in case Adani and JKH had to fund it in the absence of US financial backing? How could the US and India intend to maintain close links as desired by both powers against China in the backdrop of continuing bad press over attacks on Sikhs living overseas and the Adani fiasco.

The Congress-led Indian Opposition disrupted both Lower and Upper Houses of Parliament demanding a joint committee to investigate Adani’s companies in the agriculture, renewable energy, coal and infrastructure sectors. Unless India addresses accusations against Adani in a transparent manner, they can have long term repercussions, both domestically and internationally.

In the wake of the US indictment, Kenya cancelled multimillion-dollar deals with the Adani Group for airport modernization and energy projects. The mega company will also face scrutiny in Sri Lanka and Bangladesh.

The damage to US-India ties would be much more with legal action against Adani compelling India to play it safe. While the government remained silent on the issue at hand, Amit Malviya, the governing Bharatiya Janata Party’s IT head, declared in a post on the social media platform X that the US charges were “allegations and the defendants are presumed innocent unless and until proven guilty.” Critics asserted that this was nothing but a show of support by the Modi government for the Adani Group.

It would be interesting to see how the much weakened Opposition in Sri Lanka Parliament takes up the Adani issue. Parliament meets this week, though the issue is not on the agenda, an Opposition member may take the opportunity to comment on the politically sensitive matter.

Adani is the major Indian investor here. According to available data, Adani’s projects account for nearly 70% of overall Indian investments during the 2005-2019 period.

A story from the past

Undue Indian government intervention on behalf of Adani group was disclosed amidst unprecedented political turmoil here with President Gotabaya Rajapaksa under tremendous pressure in June 2022 with the country unable to finance basic needs with covert groups even having blocked worker remittances through official channels.

The revelation was made by then head of the Ceylon Electricity Board (CEB) M.C.C. Ferdinando during an open hearing of the Committee of Public Enterprises (COPE) that President Gotabaya Rajapaksa told him that Indian Prime Minister Narendra Modi had insisted that a 500-megawatt wind power project be directly given to the Adani group.

Embattled President Rajapaksa denied the disclosure. Within two days after the shocking declaration in Parliament, Ferdinando claimed that he lied after being overwhelmed by emotion. Of course no one took Ferdinando’s denial seriously for obvious reasons.

“On November 24, 2021, the President summoned me after a meeting and said, India’s Prime Minister Modi is pressuring him to hand over the project to the Adani group,” Ferdinando said, according to a video clip of his testimony made available by Parliament. According to the CEB head, he had received instructions from President Rajapaksa in this regard in Nov. 2021, just weeks after Adani visited Colombo.

Ferdinando was responding to questions posed by the then head of COPE Prof. Charitha Herath and another member about the circumstances the Adani group had chosen to construct a 500 MW wind power plant on the northern coast.

Ferdinando told the committee that he informed the President that the matter didn’t concern the CEB, but the Board of Investments. “The President insisted that I look into it. I then sent a letter mentioning that the President has instructed me and the Finance Secretary should do the needful. I pointed out that this is a government-to-government deal,” Ferdinando said.

During the heated hearings, Prof. Herath asked whether the wind power deal would be considered “unsolicited”. “Yes, this is a government-to-government deal, but the negotiations should take place according to the least cost policy mentioned in the act,” said Ferdinando.

On the following day, President Rajapaksa contradicted the CEB Chief. “Re a statement made by the #lka CEB Chairman at a COPE committee hearing regarding the award of a Wind Power Project in Mannar, I categorically deny authorization to award this project to any specific person or entity,” he tweeted.

“I have withdrawn that statement,” Ferdinando said. The media quoted the CEB Chief as having said that he only realized that he mistakenly made such a comment, when the Minister inquired from him about the matter on Saturday (June 11) morning.

Thereafter, Ferdinando issued a statement to Prof. Hearth on Saturday in which he tendered an apology, saying that due to “unexpected pressures and emotions”, he was compelled to name the Indian Prime Minister.

The public hearing took place on a Friday, a day after Parliament passed an amendment to the 1989 Electricity Act that removed competitive bidding. The main opposition, Samagi Jana Balawegaya (SJB), alleged that the primary reason for bringing forward the amendment was to accommodate the “unsolicited” Adani deal. The SJB demanded that projects beyond 10 MW capacity should go through a competitive bidding process.

The amendments to the Sri Lanka Electricity Act were passed with 120 votes in favour of the amendments with 36 voting against in the 225-member Parliament amid strong resistance from power sector trade unions in the state-run Ceylon Electricity Board (CEB). Thirteen MPs abstained in the voting.

The story should be examined taking into consideration Adani’s pow vows with President Gotabaya Rajapaksa and Premier Mahinda Rajapaksa in late Oct. 2021 in Colombo.



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Midweek Review

Raid on ‘Millennium City’ DMI safe-house:

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Having served as the Commander of the Army, 2000 to 2004, during his 39-year career, Lionel Balagalle passed away in Oct. 2023. He is the founding father of military intelligence

A forgotten story (part 1)

Colombo High Court Judge Adithya Patabendi, on March 27, 2025, acquitted former ASP Kulasiri Udugampola, who had been indicted over the Kandy police raid on a safe house run by the Directorate of Military Intelligence (DMI) at the Millennium City housing complex, Athurugiriya. The raid, conducted in the first week of January 2002, sent shock waves through the defence establishment. Delivering the judgment, 23 years after the raid, Patabendi declared that the prosecution failed to prove the charges beyond a reasonable doubt.

The Dec. 5, 2001 parliamentary election was conducted at the height of the war in the North. Having gained the upper hand in the battlefield, the LTTE was working on a Ceasefire Agreement with Norway. The country was in turmoil with President Chandrika Bandaranaike Kumaratunga, who survived an LTTE suicide blast at the final rally of her Dec. 1999 presidential election campaign, struggling to overcome a sustained UNP offensive.

In the run-up to the Dec. 5, 2001 parliamentary polls, UNP leader, Ranil Wickremesinghe accused the Directorate of Military Intelligence (DMI) of planning to assassinate him. The UNPer claimed that the DMI was training Tamil terrorists at the Panaluwa Army Testing Range to mount an attack on his campaign bus, as well as his political rallies.

The unprecedented accusation placed the war-weary Army in an extremely embarrassing position when it was actually turning tables on the enemy using its own tactics in areas considered by then as being off limits for security forces. The UNP, with no shame, brazenly exploited the made-up threat as the main Opposition party and its allies, including a treacherous section of the media, stepped-up pressure on the Army to no end.

On the instructions of Wickremesinghe, UNP Chairman Charitha Ratwatte and Deputy Chairman Daya Palpola wrote a hard-hitting letter to Army Commander, Lt. Gen. Lionel Balagalle warning that he would be held responsible ‘in the event of an unfortunate incident’. The UNP duo accused the Army chief of training personnel to engage in a destabilisation campaign against the UNP.

An irate Army Commander, Lt. Gen. Balagalle in reply addressed a letter to Ratwatte and Palpola dismissing their accusations. The Island, in a front-page exclusive headlined ‘Army chief says no truth in UNP claims,’ in its Nov, 11, 2001 edition that revealed the exchange between Army headquarters and Sirikotha.

The report was based on what Lt. Gen. Balagalle had told this writer the previous evening. The Army chief, himself a one-time head of the Directorate of Military Intelligence (DMI), said that there was absolutely no basis for the UNP allegation that a hit squad was undergoing training in the use of high explosives and thermobaric weapons to attack Wickremesinghe.

The UNP ignored the Army chief’s letter. The allegation was repeated throughout the campaign. The raid on the DMI safe-house should be examined against the backdrop of the exchange between the Army commander and Sirikotha.

It was somewhat reminiscent of the JVP tactic to tarnish all others who had ruled the country since independence as being A Grade crooks to come to power with a record majority they couldn’t have even dreamt of knowing their sordid past. The trick was to repeat a lie long enough with the help of Western funded international and local NGO quislings and the gullible masses believed it.

Amidst a furore over the UNP allegation that the Army conspired to assassinate Wickremesinghe, Army operatives blew up a truck behind enemy lines killing five LTTE cadres on Dec. 11, 2001. Then again, they destroyed an LTTE bunker, at the entrance to a base used by Karuna, in the Kokkadicholai area, on Dec. 21, 2001.

Although the Army had conducted a successful small group operation in the Batticaloa District, targeting a key LTTE operative identified as David, way back in 1992, there was no attempt on the part of the military to develop the capability further. But some officers had been keen to promote small group operations to weaken the LTTE and beat it at its own game.

Commenting on the elimination of David, a veteran in clandestine operations told the writer of the deep penetrations ops: “Three personnel took part in the targeted killing of David. They returned to base after achieving the given task. Such operations caused chaos in enemy territory which gave us the psychological advantage over them. We knew of the importance as well as the need to strike within the enemy-controlled areas, though a special strategy on clandestine operations was adopted only in 2001, almost a decade after the hit on David.”

Speaking on condition of anonymity, the soft-spoken official explained the circumstances under which the Army launched deep penetration units soon after one-time Director of the DMI Lionel Balagalle had been appointed Commander of the Army.

Balagalle couldn’t resist the temptation to explore the possibility of infiltrating areas outside government controlled regions to launch attacks. “It was a tremendous task. Those who volunteered to join the operation realised the risks they were taking. They were among the best and they courageously adopted the new doctrine, which enabled us to carry out targeted killings. It was nothing but a high risk operation, though it produced results. They had to curtail their movements, particularly in the Eastern Province, where we used Batticaloa as the centre of our operations.”

Then Brigadier Kapila Hendarawithana executed the operation in his capacity as Director of DMI.

The LTTE realised the danger. Within months after the launch of the first DMI raid in the Batticaloa District, the LTTE pushed for the suspension of the DMI operation. The February 23, 2002 Ceasefire Agreement (CFA), arranged by the Norwegians, included a clause which specifically dealt with DMI action. The CFA called for the suspension of operations behind LTTE lines. While the LTTE had been successful in its negotiations with the Norwegians and the then inept UNP government with Executive President Chandrika Kumaratunga reduced to more or less a figurehead, the DMI suffered a debilitating setback when that regime with hardly any feelings for our valiant fighting men risking their lives day and night, ordered a police raid on an Army safe-house used by a deep penetration team at Athurugiriya.

The UNP-led United National Front (UNF) emerged victorious at the Dec. 5, 2001 general election with 109 seats, while the defeated PA managed to secure 77 seats. The remaining seats were shared by the JVP (16), the TNA (15), the SLMC (5), the EPDP (2) and the DPLF (01).

Balgalle on ops behind enemy lines

It had been one of the bloodiest elections with the five-week campaign claiming the lives of almost 50 people, with the polls day massacre of a group of SLMC supporters at Udathalawinna being the single worst incident. This massacre carried out by troops attached to the Vijayaba Infantry Regiment (VIR) who had been brought to Kandy at the behest of de facto Defence Minister Anuruddha Ratwatte was used as an excuse by a vindictive UNP leadership to order the raid on the safe house used by the DMI situated at Millennium City, Athurugiriya, on Jan. 2, 2002, which changed the course of the conflict. The UNF cited intelligence reports that Anuruddha Ratwatte’s sons, wanted in connection with the Udathalawinna massacre, were taking refuge at Athurugiriya.

Had the UNP leadership been a little cautious, it would never have publicly accused the Army of an assassination plot. Lt. Gen. Balagalle discussed the issues at hand with the writer. Operating hit squads behind enemy lines had been a key element in the Army’s strategy to give it a taste of its own medicine, the Army chief said at that time, alleging the then Opposition had failed to grasp what was going on. The Island quoted Lt. Gen. Balagalle as having said: “Had they quietly raised the issue with us and sought a clarification without playing politics with national security, the Athurugiriya fiasco could have been averted. Even ex-LTTE cadres were brought in for operations along with valuable input from civilian informants. We were successful due to many reasons such as training from Pakistani instructors. We also accommodated troops from other fighting battalions to engage in operations behind enemy lines, though the Special Forces and Army Commandos spearheaded the campaign.”

At the time troops had been undergoing training in Pakistan, Balagalle functioned as Security Forces Commander, Jaffna.

The Athurugiriya raid ruptured relations between the UNP and the Army. It caused irreparable damage to national security. At the behest of the UNP, a section of the media, including the Colombo-based correspondents working for international news agencies, highlighted the Athurugiriya raid speculating the Army’s alleged involvement in anti-government activities. Investigating officers alleged that those who had been based at Athurugiriya were involved in the alleged attempt to assassinate Wickremesinghe. Subsequently, the DMI was accused of planning attacks in the city and its suburbs to sabotage the Norwegian-led peace process.

The UNP allegations had the desired impact in the wake of state television showing recovered items, which included 66 sets of LTTE uniforms, four thermobaric weapons, seven claymore mines each weighing 10 kgs, 10 claymore mines, each weighing one kg each, three T-56 assault rifles along with 400 rounds of ammunition, 10 anti-tank weapons, detonators, cyanide capsules, exploders, remote controlled devices and wire rolls.

While a section of the media lashed out at the Army, in a front-page exclusive headlined ‘Controversy over police raid on army officers Millennium City residence,’ on Jan 4, 2002, The Island revealed that a police team from Kandy, led by die-hard UNP loyalist, Kulasiri Udugampola, had raided an Army safe house. The raid also involved a team of CCMP (Ceylon Corps of Military Police).

In spite of both Lt. Gen. Balagalle and the then Director of DMI, Brigadier Kapila Hendawitharana (later served as Chief of National Intelligence, before quitting in 2015) reassuring the government of the legitimacy of operations undertaken by the DMI, the police was let loose on covert operatives. Regardless of Balagalle rushing Hendarawithana, who later figured in many controversies to the scene, Udugampola went ahead with the raid. The police had obtained permission from courts to search the premises.

Udugampola had the backing of the then Interior Minister, John Amaratunga. IGP Lucky Kodituwakku, though being convinced of the legitimacy of the DMI operation, couldn’t do anything. He was helpless.

Army takes firm stand

The Kandy police raided the safe house shortly after the officer-in-charge of the DMI operation had handed over part of their arsenal. Those involved in the hit-and-run operations in LTTE held-areas had returned to Colombo on Dec. 27, 2001, in the wake of the Wickremesinghe administration declaring its readiness to go ahead with a Norwegian initiative to sign a one-sided CFA clearly favourable to the LTTE. The Kandy police also accused the Army of planting two claymore mines targeting a UNP candidate along the Wattegama-Panwila road, in the run-up to the Dec. 5, 2001 polls.

The then security forces spokesman, Brig. Sanath Karunaratne emphasised that those who operated from Athurugiriya were involved in ‘Army duties’ (The Island Jan. 4, 2002). Regardless of protests by the Army, those arrested were taken away to the Narahenpita CMP headquarters before being transferred to Kandy. They were treated like criminals and held under humiliating conditions. Six of them, including an officer, were held in one room. For two weeks, the media reported all sorts of conspiracy theories.

Let me stress that the Athurugiriya betrayal, in a way divided the Army. An influential section of the Army obviously cooperated with the conspirators.

Those who had been arrested were held for almost two weeks before being granted bail. The police raid would never have been possible without an influential section within the Army cooperating with the political establishment to undermine a vital operation, which brought the LTTE under immense pressure.

The UNP and the police justified Udugampola’s raid. Asked whether he had used the safe house to accommodate his sons, one-time Defence chief, Anuruddha Ratwatte, candidly acknowledged that he hadn’t been among those who knew of the existence of that particular rear base, though the Army kept him informed of operations undertaken by the DMI. (Feb. 1 issue of The Island, 2002)

Marapana to the rescue

Then Defence Minister, Tilak Marapana, a one-time Attorney General, to his credit did not play politics with such an important issue and thwarted an attempt by the Kandy police to prolong the detention of DMI operatives using the provisions of the PTA to please their then political masters in the UNP. The bid to neutralize the DMI was made ahead of the signing of the CFA. The Wickremesinghe administration didn’t even bother to consult the armed forces and police top brass regarding the provisions of the agreement. Then Navy Commander, Vice Admiral Daya Sandagiri told the Lessons Learnt and Reconciliation Commission (LLRC) how then Defence Secretary, Austin Fernando, had bypassed them with regard to sensitive military issues.

Fernando, in an article captioned ‘The Peace Process and Security Issues’ (Negotiating Peace in Sri Lanka: Efforts, Failures and Lessons) admitted that the refusal on the part of the then government to consult the military had been a failure. Fernando said (page 42): “The military chiefs weren’t consulted in the drafting of the CFA. Of course, a casual opportunity was given to them to discuss the draft with Ministers of Defence (Tilak Marapana) and Constitutional Affairs (Prof. G.L. Peiris). This wasn’t considered adequate by them as they didn’t get an opportunity to discuss the CFA with their senior officers”.

The CFA declared that ACTIVITIES BY DEEP PENETRATION UNITS should be ceased along with the cessation of all military action. The LTTE wouldn’t have demanded a ban on DMI operations unless the group acknowledged the growing threat posed by DMI. The LTTE had been vulnerable to those hunting them in their own backyard. Obviously, the LTTE wouldn’t have bothered about the DMI had the latter been stalking Wickremesinghe in the run-up to the Dec. 2001 polls.

Retired Senior DIG Merril Gunaratne, who had been Defence Advisor to Wickremesinghe during the CFA, exposed the UNP leadership in his ‘COP IN THE CROSSFIRE.’ The first book of its kind, written by one-time Director General of Intelligence, revealed how the top UNP leadership took security issues lightly at the expense of the country as well as the party. Asked whether he had been involved in the operation to move the Kandy police against the DMI, Gunaratne told the writer at that time he categorically opposed the move. “I was convinced the PA government wouldn’t target Wickremesinghe, thereby allowing the UNP to benefit from the sympathy vote. Unfortunately, Wickremesinghe and his top advisors felt the Army was hell bent on destroying the UNP.”

Ex-LTTE’s among the slain

The Athurugiriya raid had a catastrophic impact on the armed forces, which experienced untold hardships due to miscalculations on the part of political and military leaders. Following the betrayal of the DMI, the LTTE unleashed a series of operations in the city, its suburbs and in the Eastern Province. Altogether, over 50 military personnel, Tamil informants as well as ex-LTTE cadres working for the Army, died at the hands of the LTTE as their identities were revealed owing to the raid on the army safe house. Wijayanadan Widyatharan, alias Vidya, of Sea Road, Navakkudah, was the first operative killed by the LTTE after exposure of the Athurugiriya operation. Vaidya was abducted on January 20, 2002, over two weeks after the raid.

The dead included two senior military officers, both killed in Colombo. Although the two military officials, holding the rank of Major and Colonel could have been on a hit list, regardless of the Athurugiriya fiasco, the LTTE exploited the situation to demoralise the Army. Daring operations directed at the DMI and police intelligence helped boost the LTTE’s image. The military was placed in an unenviable position as the suspension of the PTA effectively neutralised counter-measures directed at LTTE hit squads.

Inspector Dale Gunaratne, the then President of the Police Inspectors’ Association, was perhaps the only law enforcement officer publicly critical of the UNP’s response to the LTTE threat. (Having retired years ago, Gunaratne now serves as an Attorney-at-Law) Although his superiors reacted angrily, Gunaratne lashed out at the government for allowing the LTTE to exploit the CFA to its advantage. Citing the killing of Inspector Thabrew at the Dehiwela Police Station, in July 2003, IP Gunaratne alleged that the suspension of the PTA in keeping with the CFA was nothing but a grievous threat to those fighting terrorism. He kept on lambasting the UNP and his own superiors for not taking action to neutralise the LTTE threat. But the UNP was determined to salvage the crumbling peace process at any cost. For those at the helm of the government, the lives of security forces and police didn’t matter, as long as they believed the LTTE would remain in the negotiating process. Politicians felt whatever the provocations, the peace process should continue.

By Shamindra Ferdinando

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Midweek Review

Universal in a Catastrophe

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Survivors of the South-East Asian tragedy,

Triggered by nature’s stern promptings,

Somehow reining-in suffocating sorrow,

Are leaving no unhinged stone unturned,

To salvage the remains of those held dear,

In fresh testimony of love’s staying power,

But it speaks well for the untouched majority,

That unstinted succor is pouring in,

To render some solace to the hapless,

Although no amount of fellow feeling,

Could make up for the wrenching sorrow,

Of parting from a priceless presence.

By Lynn Ockersz

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Midweek Review

Batalanda and complexities of paramilitary operations

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Former President Ranil Wickremesinghe’s recent combative ‘Head-to-Head’ interview with British-American Mehdi Hasan on Al Jazeera has opened a can of worms. As to why Hasan raised the Batalanda Presidential Commission report, during a 49-minute interview conducted at the London’s Conway Hall, with a clearly pro LTTE audience, remains a mystery. This must be yet another notorious way to show how even-handed they are as in the case of its coverage of Russia, China, Palestine or Ukraine for their gullible viewers.

Recorded in February and aired in March 2025, the interview is definitely the most controversial the UNP leader, who is also an Attorney-at-Law, ever faced during his political career; always used to getting kid glove treatment, especially after taking over the party in 1994.

The continuing public discourse on Batalanda should provoke a wider discussion on Sri Lanka’s response to separatist Tamil terrorism, since the cold blooded murder of Jaffna SLFP Mayor Alfred Duriappah, which signalled the beginning of the LTTE terror campaign that ended in May 2009 with the crushing military defeat of the Tigers on the banks of the Nathikadal lagoon, as well as two southern insurgencies in 1971 and 1987-1990.

As Nandana Gunatilleke (one time JVP General Secretary and ex-MP), Dr. Wasantha Bandara (ex-JVPer and close associate of the slain JVP leader Rohana Wijeweera), Indrananda de Silva (ex-JVPer, incumbent Central Committee member of Frontline Socialist Party [FSP] and ex-military photographer) and Uvindu Wijeweera (Rohana Wijeweera’s son and leader of Dewana Parapura) agreed during the recent Hiru ‘Balaya’ discussion, conducted by Madushan de Silva, the Batalanda operation was in line with the overall counter-terrorist/insurgency strategy of the then government.

The issues at hand cannot be discussed at all without taking into consideration the JVP terrorism that, at one-time, almost overwhelmed the UNP’s unbroken rule, since 1977, carried out while openly brushing aside most of the universally accepted genuine parliamentary norms. The country’s second Republican constitution, promulgated by the UNP regime with a 5/6 majority in Parliament, in 1978, had been amended no less than 13 times by the time they were finally ousted in 1995. This was mainly to facilitate their continuous rule. Unfortunately, all stakeholders have sought to take advantage of Batalanda, thereby preventing a proper dialogue. Quite surprisingly, none of the guests, nor the interviewer, bothered, at least, to make a reference to the JVP bid on President J.R. Jayewardene’s life in Parliament on the morning of July 18, 1987. At the time, JVPer Ajith Kumara, working in the House as a minor employee, hurled two hand grenades towards JRJ, with the then Prime Minister Ranasinghe Premadasa seated next to JRJ. While one government MP lost his life, several others suffered injuries, including then National Security Minister Lalith Athulathmudali, whose spleen had to be removed.

At one point, Gunatilleke declared that they assassinated UNP MP for Tangalle Jinadasa Weerasinghe on July 3, 1987, in response to the government killing well over 100 people, in Colombo, protesting against the signing of the Indo-Lanka accord on July 29, 1987. The parliamentarian was killed near the Barawakumbuka-Welangahawela bridge on the Colombo-Rathnapura-Embilipitiya Road. The UNPer was killed on his way home after having declined Premier Premadasa’s offer to make an SLAF chopper available for him to reach home safely.

Against the backdrop of MP Weerasinghe’s assassination and the grenade attack on the UNP parliamentary group that claimed the life of Keethi Abeywickrema (MP for Deniyaya), the government had no option but to respond likewise. The operation, established at the Batalanda Housing scheme of the State Fertiliser Corporation, constituted part of the counter-insurgency strategy pursued by the UNP.

Those who called Batalanda complex Batalanda torture camp/ wadakagaraya conveniently forgot during the second JVP inspired insurgency, the military had to utilize many public buildings, including schools, as makeshift accommodation for troops. Of course the UNP established Batalanda under different circumstances with the then Industries Minister Ranil Wickremesinghe providing political authority. Batalanda had been an exclusive police operation though the Army had access to it whenever a requirement arose.

Those who had been suddenly withdrawn from the Northern and Eastern Provinces, to meet the rapidly evolving security threat in the South, required accommodation. FSP CC member Indrananada de Silva had received unhindered access to Batalanda in his capacity as a military photographer and the rest is history.

As to why Indrananda de Silva switched his allegiance to the FSP should be examined, taking into consideration his previous role as a trusted military photographer, formerly a Lance Corporal of the Military Police. An influential section of the JVP, led by Kumar Gunaratnam, formed the FSP in April 2012 though it didn’t receive the much anticipated public support. Both Indrananda de Silva and Nandana Gunatilleke, who aligned himself with the UNP, found fault with the JVP-led National People’s Power (NPP) over its handling of the Batalanada issue.

Paramilitary operations

Paramilitary operations had been an integral part of the overall counter-insurgency campaign, directed at the JVP responsible for approximately 6,600 killings. Among those death squads were PRRA primarily drawn from the SLMP (Sri Lanka Mahajana Party) and SRRA (the socialist Revolutionary Red Army). PRRA had close links with the Independent Student Union (ISU) whose leader Daya Pathirana was slain by the JVP. The vast majority of people do not remember that Daya Pathirana, who led the ISU during the turbulent 1985-1986 period, was killed mid-Dec. 1989. The second insurgency hadn’t started at that time though the JVP propagated the lie that they took up arms against the UNP government following the signing of the Indo-Lanka peace accord on July 29, 1987.

In addition to PRRA and SRRA, the government made use of paramilitary groups, namely Kalu balallu, Ukkusso, Rajaliyo, Kaha balallu, Kola koti, Rathu Makaru, Mapila, Gonussa, Nee, Keshara Sinhayo, Le-mappillu and Kalu koti.

The UNP also involved some elements of Indian trained Tamil groups (not of the LTTE) in paramilitary operations. Such operations, that had been backed by respective Cabinet Ministers, were supervised by local law enforcement authorities. Paramilitary operations had been in line with psychological warfare that was meant to cause fear among the JVP, as well as the general population. Military operations that had been combined with paramilitary actions received the blessings of the political leadership at the highest level. In the case of Batalanda (1988-1990) President J.R. Jayewardene and Ranasinghe Premadasa knew of its existence.

Even after the eradication of the top JVP leadership, by Nov. 1989, police, military and paramilitary operations continued unabated. Former JVPers appearing on ‘Balaya’ agreed that counter-insurgency operations were actually brought to an end only after D.B. Wijetunga succeeded President Ranasinghe Premadasa after the latter’s assassination on May Day 1993.

After the LTTE resumed war in June 1990, just a couple of months after the withdrawal of the Indian Army (July 1987-March1990), the UNP authorized paramilitary operations in the northern and eastern areas. Members of TELO, PLOTE, EPRLF as well as EPDP were made part of the overall government security strategy. They operated in large groups. Some paramilitary units were deployed in the Jaffna islands as well. And these groups were represented in Parliament. They enjoyed privileged status not only in the northern and eastern regions but Colombo as well. The government allowed them to carry weapons in the city and its suburbs.

These groups operated armed units in Colombo. The writer had the opportunity to visit EPDP and PLOTE safe houses in Colombo and its suburbs soon after they reached an understanding with President Ranasinghe Premadasa. Overnight at the behest of President Premadasa, the Election Department granted these Tamil groups political recognition. In other words, armed groups were made political parties. The Premadasa government accepted their right to carry weapons while being represented in Parliament.

It would be pertinent to mention that thousands of Tamil paramilitary personnel served the government during that period. There had been many confrontations between them and the LTTE over the years and the latter sought to eliminate key paramilitary personnel. Let me remind you of the circumstances, the EPRLF’s number 02 Thambirajah Subathiran alias Robert was sniped to death in June 2003. Robert was engaged in routine morning exercises on the top floor of the two-storeyed EPRLF office, on the hospital road, Jaffna, when an LTTE sniper took him out from the nearby Vembadi Girls’ high school. The operation of the Norway managed Ceasefire Agreement (CFA) made no difference as the LTTE removed Robert who led the party here in the absence of leader Varatharaja Perumal, the first and the only Chief Minister of the North-Eastern Province.

In terms of the CFA that had been signed by Premier Ranil Wickremesinghe and LTTE leader Velupillai Prabhakaran, in Feb. 2002, the government agreed to disarm all paramilitary personnel. Many wouldn’t remember now that during Premadasa’s honeymoon with the LTTE, the Army facilitated the LTTE onslaught on paramilitary groups in selected areas.

Muthaliff’s role

During the ‘Balaya’ discussion, the contentious issue of who shot JVP leader Rohana Wijeweera came up. Nandana Gunatilleke, who contested the 1999 Dec. presidential election. as the JVP candidate, pointing to an article carried in the party organ that dealt with Wijeweera’s assassination said that he wrongly named Gaffoor as one of the persons who shot their leader whereas the actual shooter was Muthaliff. The headline named Thoradeniya and Gaffoor as the perpetrators.

Declaring that he personally wrote that article on the basis of information provided by Indrananda de Silva, Gunatilleke named Asoka Thoradeniya and Tuan Nizam Muthaliff of the Army as the perpetrators of the crime. Thoradeniya served as Sri Lanka’s High Commissioner in the Maldives during the Yahapalana administration, while Muthaliff was killed by the LTTE in Colombo in late May 2005. The shooting took place at Polhengoda junction, Narahenpita. Muthaliff was on his way from Manning town, Narahenpita, to the Kotelawala Defence University.

The programme was told that the JVP had over the years developed close relationship with Thoradeniya while Indrananda de Silva accused Dr. Wasantha Bandara of duplicity regarding Muthaliff. How could you recognize Muthaliff, slain by the LTTE, as a war hero as he was actually one of the persons who shot Rohana Wijeweera, the latter asked.

At the time of his assassination, Muthaliff served as the Commanding Officer, 1 st Regiment Sri Lanka Military Intelligence Corps. The then parliamentarian Wimal Weerawansa was among those who paid last respects to Maj. Muthaliff.

At the time of Rohana Wijeweera’s arrest, Muthaliff served as Lieutenant while Thoradeniya was a Major. Indrananda de Silva strongly stressed that atrocities perpetrated by the police and military in the South or in the northern and eastern regions must be dealt with regardless of whom they were conducting operations against. The former JVPer recalled the Army massacre in the east in retaliation for the landmine blast that claimed the lives of Northern Commander Maj. Gen. Denzil Kobbekaduwa and a group of senior officers, including Brigadier Wijaya Wimalaratne, in early Aug. 1990 in Kayts.

Dr. Wasantha Bandara warned of the Western powers taking advantage of what he called false narrative to push for a Truth and Reconciliation Commission.

It would be pertinent to mention that the LTTE also used the underworld as well as some corrupt Army personnel in planning high profile assassinations. Investigations into the assassination of Muthaliff, as well as Maj. Gen. Parami Kulatunga, killed in a suicide attack at Pannipitiya, in June 2006, revealed the direct involvement of military personnel with the LTTE.

Indrananda de Silva disclosed that soon after Anura Kumara Dissanayake won the presidential election last September, the FSP, in writing, requested the JVP leader to inquire into killings during that period, including that of Rohana Wijeweera. The FSPer alleged that President Dissanayake refrained from even acknowledging their letter. Indrananda de Silva emphasized that Al Jazeera never disclosed anything new as regards Batalanda as he exposed the truth years ago. The former JVPer ridiculed the ruling party tabling the Batalanda Commission report in the wake of Wickremesinghe’s Al Jazeera interview whereas the matter was in the public domain for quite some time.

Indrananda de Silva and Nandana Gunatilleke exchanged words over the latter’s declaration that the JVP, too, was subjected to investigation for violence unleashed during the 1987-1990 period. While the FSPer repeatedly declared that those who carried out directives issued by the party were arrested and in some cases killed, Nandana Gunatilleke took up the position that the party should be held accountable for crimes perpetrated during that period.

The interviewer posed Nandana Gunatilleke the question whether he was betraying his former comrades after joining the UNP. Nandana Gunatilleke shot back that he joined the UNP in 2015 whereas the JVP joined UNP as far back as 2009 to promote retired Army Chef Sarath Fonseka’s presidential ambition even though he wiped out the JVP presence in Trincomalee region during the second insurgency.

JVP’s accountability

Nandana Gunatilleke is adamant that the party should accept responsibility for the killings carried out at that time. The former JVPer declared that Vijaya Kumaratunga (Feb. 16, 1988), first Vice Chancellor of the Colombo University (March 08, 1989) Dr. Stanley Wijesundera, Ven. Kotikawatte Saddhatissa thera (Aug. 03, 1988) and Chairperson of the State Pharmaceutical Corporation Gladys Jayewardene (Sept. 12, 1989) were among those assassinated by the JVP. SPC Chairperson was killed for importing medicine from India, the former Marxist aligned with the UNP said, while actor-turned-politician Kumaratunga’s assassination was attributed to his dealings with President J.R. Jayewardene.

According to Nandana Gunatilleke, except for a few killings such as General Secretaries of the UNP Harsha Abeywickrema (Dec 23, 1987) and Nandalal Fernando (May 20, 1988), the vast majority of others were ordinary people like grama sevakas killed on mere accusation of being informants. The deaths were ordered on the basis of hearsay, Nandana Gunatilleke said, much to the embarrassment of others who represented the interest of the JVP at that time.

One quite extraordinary moment during the ‘Balaya’ programme was when Nandana Gunatilleke revealed their (JVP’s) direct contact with the Indian High Commission at a time the JVP publicly took an extremely anti-Indian stance. In fact, the JVP propagated a strong anti-Indian line during the insurgency. Turning towards Dr. Wasantha Bandara, Gunatilleke disclosed that both of them had been part of the dialogue with the Indian High Commission.

It reminds me of the late Somawansa Amarasinghe’s first public address delivered at a JVP rally in late Nov. 2001 after returning home from 12 years of self-imposed exile. Of the top JVP leadership, Somawansa Amarasinghe, who had been married to a close relative of powerful UNP Minister Sirisena Cooray, was the only one to survive combined police/military/paramilitary operations.

Amarasinghe didn’t mince his words when he declared at a Kalutara rally that his life was saved by Indian Premier V.P. Singh. Soft spoken Amarasinghe profusely thanked India for saving his life. Unfortunately, those who discuss issues at hand conveniently forget crucial information in the public domain. Such lapses can be both deliberate and due to negligence.

By Shamindra Ferdinando

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