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USD 250 mn bribery allegation jolts Justice Minister

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AG favours Singapore court, compensation claim USD 6.2 bn

By Shamindra Ferdinando

The inordinate delay in initiating legal action against X-Press Feeders, the owners of container carrier X-Press Pearl, which sank off Colombo in early June, 2021 causing a maritime disaster, has taken a new turn with Justice Minister Dr. Wijeyadasa Rajapakse, PC, asking IGP C. D. Wickramaratne to probe an allegation that a certain party involved in the ongoing deliberations received USD 250 mn and the money was sent to an account at a British bank.

The ill-fated vessel carrying 1,486 containers caught fire on May 20, 2021 off Colombo. Its cargo included 25 metric tonnes of nitric acid and as much as 50 bn plastic pellets.

The Justice Minister said so yesterday (12) when The Island asked the latest developments in the wake of the Sectoral Oversight Committee on Environment, Natural Resources, and Sustainable Development taking up the issue on 04 April. SJB MP Ajith Mannapperuma chaired the meeting, which was also attended by the Opposition Leader Sajith Premadasa.

Minister Rajapakse disclosed that he had received a certain foreign bank account number amidst accusations and counter accusations over the support extended to those who represented the interests of X-Press Feeders. He however declined to vouch for the veracity of the claim.

Asked where the government intended to file action in this regard, the Minister said that the Attorney General’s Department was of the view that it should be Singapore. The Minister said that he wouldn’t take a contrary view.

Sanjay Rajaratnam, PC, received appointment as the AG on May 26, 2021 as local and foreign firefighters were struggling to stabilize the vessel.

At the time of the worst maritime disaster in Sri Lankan waters, Ali Sabry, PC, served as the Justice Minister.

The Marine Environment Protection Authority (MEPA) during Attorney-at-Law Dharshanee Lahandapura’s tenure as its Chairperson asserted that the case should be filed here as the incident took place within the country’s territorial waters.

Lahandapura’s term ended in early February this year and another lawyer Asela B. Rakewa succeeded her.

Minister Rajapakse said that during his predecessor’s tenure two teams had been tasked with probing the accident. Minister Sabry appointed one comprising three lawyers whereas the then MEPA Chairperson appointed a bigger expert group for the same purpose.

Dr. Rajapakse said that in spite of an assurance from the committee appointed by the MEPA that its report would be submitted by Sept. 23, 2022, it was delivered in January this year.

Those who felt that legal action should be filed here should realise that enforcement of whatever ruling would also be a challenge, the Justice Minister said.

Asked whether there had been an issue with regard to the presence of a group of persons believed to be lawyers representing the interests of X-Press Feeders at the Sectoral Oversight Committee meeting, Dr. Rajapakse said that he had asked the Chair to move them out as he couldn’t under circumstances discuss government plans with the opposing side.

The Oversight Committee shouldn’t have invited them for that particular meeting, the Justice Minister said, adding that the high-profile case remained a heavy burden. During the proceedings, it transpired that nearly two years after the incident, the expert committee tasked with assessing damages to the environment and other damages hadn’t been able to visit the location of the ship disaster. MP Mannapperuma has directed MEEPA and NARA (National Aquatic Resources Research and Development Agency) to take tangible measures to facilitate the expert panel to visit the site with the assistance of the Navy and Airforce. The MP has pointed out that the failure to do so could be detrimental to Sri Lanka’s case.

The Sectoral Oversight Committee Chairman said so after members of the expert committee appointed by MEPA disclosed that they had been deprived of Navy and Air Force assistance to achieve the set objectives.

Environmentalists have pointed out that it is not advisable to move Singaporean court though the Cabinet-of-Ministers approved the Attorney General’s recommendation in this regard. They want the case to be heard in Colombo.

They pointed out that the second report of the expert committee had recommended that Sri Lanka ask for compensation to the tune of USD 6.2 bn. During Lahandapura’s tenure Sri Lanka received USD 10 mn for clean-up operations and fisheries sector compensation.

A statement issued by Parliament Director Legislative Services / Director Communication (Acting) Janakantha Silva quoted MEPA Chairman Rakewa as having said that the expert committee report had been handed over to the Attorney General. Rakewa said that the AG should go ahead with filing the case.

The AG’s Department representatives assured that action was being taken in this regard. According to the statement dated April 06 issued by parliament on the meeting held on 04 April legal action had to be initiated within 45 days.



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President proposes; Speaker disposes

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Dr. Wickramaratne

AKD’s request to Harsha:

Speaker Dr. Jagath Wickramaratne has frustrated an attempt by Chairman of the Committee on Public Finance (CoPF) Dr. Harsha de Silva, MP, to intervene to settle the continuing dispute over the appointment of a new Auditor General.

Dr. De Silva yesterday told The Island he had recently written to all members of the Constitutional Council (CC) drawing their attention to the urgent need to address the issue at hand. The AG’s position remains vacant since 08 Dec, 2025. AG W.P.C. Wickremanayake retired in April and since then there have been a couple of Acting appointments. The CC has declined to endorse any of President Dissanayake’s nominees as the AG.

Asked whether he had taken up the issue with the CC following President Anura Kumara Dissanayake soliciting his support in this regard, MP de Silva said that he had written to CC members as agreed with the President.

The former UNPer and one-time State Minister said: “I did so, giving due respect to CC’s independence, underscoring the critical importance in them working with the President to resolve the crisis. I alluded to the need to have transparency in public financial management during this post-cyclone period where large amounts of funds are being transacted on multiple fronts, both domestic and foreign.”

Responding to another query, Dr. De Silva emphasised that he had clarified that the President must send the names of qualified and experienced persons to the CC for consideration. “However, these letters were returned to me by the Speaker, without being delivered to members of the CC. The Speaker didn’t give an explanation. Thus, except for members who are MPs who had been copied via email by my committee office, others never received my letter of concern. Even though I questioned, in Parliament, the basis of his refusal to forward my communication to the members of the CC of which he is Chairman, no answer was given.”

The CC consists of Dr. Jagath Wickramaratne, Speaker and Chairman of the 10-member body. Dr. Harini Amarasuriya, Prime Minister, Sajith Premadasa, Leader of the Opposition, Bimal Rathnayake, Aboobucker Athambawa, Ajith P. Perera, Sivagnanam Shritharan, and three civil society members namely Dr. Prathap Ramanujam, Dr. Dilkushi Anula Wijesundere and Dr. Dinesha Samararatne. None of the President’s nominees could obtain CC’s approval as all of them were rejected by the CC.

The present CC was introduced by the 21st Amendment to the Constitution which was endorsed on 31 October 2022.

Both the Bar Association of Sri Lanka (BASL) and the Transparency International Sri Lanka Chapter recently requested President Dissanayake, in writing, to propose a suitable person to the post of AG. The BASL, in another statement that dealt with the forthcoming vacancies in the CC due to three civil society members completing their terms, declared its concern over possible attempts by the President and the NPP government to fill the vacancies with rubber stamps.

The three civil society members will complete their terms on 18 January. In terms of Article 41E of the Constitution, the CC meets at least twice every month, and may meet as often as may be necessary. The Chairman presides at all meetings of the CC and in the absence of the Chairman, the Prime Minister, and in the absence of the Prime Minister, the Leader of the Opposition presides at the meetings of the CC.

Asked whether the CC could be disrupted due to the end of civil society members’ terms, an authoritative official pointed out that in case new appointments were not made the current members could continue.

The Parliament has not so far called for applications to fill the forthcoming vacancies.

by Shamindra Ferdinando ✍️

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Sri Lanka loses Rs.7.5 bn due to coal tender irregularities: FSP

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Pubudu

The NPP government’s coal procurement process has once again come under scrutiny following allegations by the Frontline Socialist Party (FSP) that substandard coal has been imported for power generation and that tender procedures were manipulated to favour a specific supplier.

Addressing the media after a party meeting in Maharagama on Saturday, FSP Education Secretary Pubudu Jagoda said a test report issued by the government laboratory at the Lakvijaya Power Plant had confirmed that the latest coal shipment unloaded in Sri Lanka did not meet the required quality standards. According to the report, the coal’s calorific value ranged between 5,600 and 5,800 kilocalories per kilo, below the 5,900–6,200 kCal/kg range specified in tender requirements.

Jagoda warned that lower calorific value coal would require higher volumes to generate the same amount of electricity, increasing costs significantly. Preliminary estimates, he said, indicated an additional financial burden of around Rs. 7,500 million, which might eventually be passed on to consumers through higher electricity tariffs.

The FSP also accused the government of tailoring procurement rules to benefit the Indian supplier, which has deposited bonds for long-term coal supply for the upcoming season. Jagoda alleged that tender conditions had been altered to accommodate the company, pointing to changes in coal reserve requirements. Under the 2021 Sri Lanka Coal Registration Document, suppliers were required to maintain a minimum reserve of one million metric tonnes with a gross calorific value of 5,900 kCal/kg. This threshold, he said, had been reduced to 100,000 metric tonnes in the 2025 document which is a 90% reduction raising serious concerns.

He further cited past allegations against the Indian company, including findings in a 2016 Auditor General’s report that the company violated procurement guidelines regarding a rice supply contract with Sathosa in 2014. Jagoda also referred to legal issues involving individuals linked to the company, and the suspension of a representative by the International Cricket Council in 2019 over match-fixing allegations.

Beyond company-specific concerns, Jagoda criticised what he described as systemic manipulation of the coal tender process. He questioned why the coal tender, typically called in February or March, was delayed until July, despite electricity being declared an essential service. He also alleged that the tender submission period had been progressively shortened from the internationally accepted six weeks to five weeks, and now reportedly to three giving an unfair advantage to suppliers with existing stock.

The Ministry of Energy has recently issued an amended tender to procure 4.5 million metric tonnes of coal for the Lanka Coal Company for the 2025/26 and 2026/27 periods, following the cancellation of an earlier tender.

Jagoda warned that delays and irregularities could lead to coal shortages, higher spot market purchases, increased electricity costs, and even power cuts if hydropower generation falls short. He called for urgent investigations into the procurement process, insisting that the burden of alleged mismanagement and corruption must not be transferred to the public.

by Chaminda Silva ✍️

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CID summons SJB MP for criticising education reforms

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Prasad

SJB Gampaha District MP Prasad Siriwardhana has been summoned to the CID today (12) for questioning in connection with a statement he made on a private television channel regarding education reforms.

He was earlier asked to report to the CID on 10 January to make a statement. However, as Siriwardhana had notified the authorities that he was unable to appear on that day, he was subsequently asked to come today.

Siriwardhana is one of the critics of the shortcomings of the education reforms introduced by the NPP government.

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