News
Joint Opposition Launches United Campaign Against Government
The Joint Opposition, comprising the SLPP, SLFP, UNP, NFF and several other parties, has announced the launch of a nationwide campaign with a mass rally scheduled to begin in Nugegoda on November 21.
Speaking today, the alliance likened their effort to the coalition of forces that united against Adolf Hitler during World War II, signalling a strong and coordinated political push.
The group stated that this will be the first in a series of large-scale rallies to be held across the country.
Government Moves to Scrap ICTA, Raise Questions Over GovTech
The government’s decision to dismantle the Information and Communication Technology Agency (ICTA) once hailed as the engine of Sri Lanka’s digital transformation and replace it with a new entity called GovTech Ltd. has stirred deep concern within the ICT community and policy circles. While the Ministry of Digital Economy claims the restructuring will modernize and streamline digital governance, the move also raises questions about continuity, accountability, and the protection of two decades of institutional knowledge built under ICTA.
Established in 2003 with World Bank assistance, ICTA was instrumental in transforming Sri Lanka’s public sector through technology. It spearheaded initiatives such as e-Sri Lanka, Lanka Government Network (LGN), GovSMS, and the open data portal, connecting government institutions and citizens through digital platforms. It also promoted rural ICT access through telecentres and supported numerous private sector and start-up initiatives, positioning Sri Lanka as a regional digital innovator.
However, the recent Cabinet decision to wind up ICTA signals a shift in the government’s digital governance strategy. Acting Secretary Waruna Sri Dhanapala confirmed that GovTech Ltd. has been incorporated as a legal entity with Dr. Hans Wijayasuriya appointed as Chairman and a Board of Directors already in place. The 2026 Budget has allocated funds for its operations, supplemented by Asian Development Bank (ADB) and World Bank support.
Yet, GovTech’s operational readiness remains in question. The Ministry admits the agency lacks both a defined organizational structure and a qualified workforce. A consultancy firm is now being hired to design its framework a process expected to take up to six months. Until then, ICTA continues to function in a transitional capacity.
Officials insist GovTech will eventually absorb ICTA’s projects, but the liquidation process, already initiated by the Treasury, risks creating administrative and financial bottlenecks. ICT professionals warn that ongoing digital initiatives such as cybersecurity frameworks, national identity systems, and e-service portals could face serious disruptions.
Observers also question the government’s decision to dissolve ICTA at a time when digital governance is crucial for public service efficiency and investment promotion. The agency’s dissolution, critics argue, appears more politically driven than strategically planned, especially given ICTA’s proven record of delivering technology-based public solutions with international collaboration.
As GovTech prepares to take charge of Sri Lanka’s digital future, the key question remains: can a newly-formed entity replicate the institutional expertise and credibility ICTA earned over two decades or will the nation’s e-governance vision risk being rebooted from scratch?
Abeysinghe Demands Compensation Over ‘False’ YouTube Allegations
Deputy Minister of Industry and Entrepreneurship Development Chathuranga Abeysinghe has sent a Letter of Demand (LOD) to YouTuber Waruna Rajapaksha over what he claims are defamatory remarks relating to the issuance of a distillery licence.
According to a statement from the Deputy Minister’s Office, Rajapaksha’s YouTube channel had broadcast several misleading and damaging allegations aimed at Abeysinghe. The Letter of Demand calls for compensation, citing harm caused to the Deputy Minister’s reputation.
The dispute is linked to recent accusations that Abeysinghe, together with MP Najith Indika, allegedly met a businessman at the Kingsbury Hotel to discuss a distillery licence under suspicious circumstances — a claim the Deputy Minister strongly denies.
Youth Exodus Slows, but ‘Brain Drain’ Still Looms Large
Sri Lanka’s youth migration wave, though slowing in recent months, continues to cast a long shadow over the nation’s economic recovery and future workforce stability.
According to Central Bank data, foreign employment departures eased by 5% to 143,037 in the first half of 2025 compared to last year. After surging departures during 2022–2024, monthly figures now show signs of moderation with 22,271 leaving in February, 21,552 in March, and a partial rebound to 27,142 in May. Officials credit this decline to the gradual stabilization of the economy, rising domestic wages, and renewed business confidence.
However, beneath these numbers lies a deeper issue the persistent outflow of young and skilled Sri Lankans seeking better opportunities abroad. While temporary labor migration, particularly to the Middle East, has long been an economic pillar providing vital foreign remittances, the recent wave involves a higher proportion of educated professionals, including IT experts, engineers, and healthcare workers.
Economists warn that this “brain drain” poses a structural risk to Sri Lanka’s long-term development. “The slowing of departures is encouraging, but we are still losing our most productive age group,” said an independent labour market analyst. “These are not just workers, but future innovators, taxpayers, and entrepreneurs.”
The mass migration trend began during the economic collapse of 2022–2023, when currency depreciation, inflation, and job losses drove thousands to seek work overseas. Although remittances helped stabilize household incomes and foreign reserves during the crisis, they also masked the social cost family separation, loss of skilled manpower, and weakened domestic productivity.
Central Bank reforms and tighter monetary discipline in 2024–2025 have curbed inflation and stabilized the rupee, yet youth confidence in local opportunities remains fragile. Many cite inadequate salaries, lack of career mobility, and political uncertainty as key push factors.
The government’s challenge, analysts argue, is to convert short-term stabilization into sustainable employment creation. While foreign job opportunities continue to offer relief for households, Sri Lanka must foster industries particularly in technology, renewable energy, and services — that can absorb its young workforce at competitive wages.
Without such reforms, experts fear that even if departures slow, Sri Lanka’s future talent pipeline will remain dangerously thin. The country’s digital and innovation goals, already threatened by the loss of trained youth, could falter if the migration of skilled labor continues unchecked.
For now, the decline in worker departures may signal a fragile turning point but unless Sri Lanka rebuilds trust in its domestic economy, the dream of “greener pastures” abroad will continue to outshine opportunities at home.
AKD wages war on drugs and crime while Opposition clashes with Govt. over safety as RW plans sans Sajith
- AKD plans joint operation with armed forces, Police, Civil Defence, Intelligence units to combat drugs
- SJB to extend unconditional support to Govt. in efforts to crush drugs and organised crime networks
- Opposition clashes with Govt. over Ananda’s take on Lasantha’s killing, holds Govt. responsible for death
- Questions over Govt. stance on killing prior to probe; Sajith says Lasantha had sought security, not given
- Govt. says Lasantha could not be given Police security due to listing as IRC; Ananda reminded of JVP past
- Chamara says will haunt Minister if killed, Harshana says no need to haunt since fearful at present
- Mahinda hints of a ‘Namal Sir’ in Backhoe Saman’s phone; Namal says there’s another Namal in Govt.
- Govt. and Opposition unite to wear pink for breast cancer; Opposition changes to black the next day
- SJB organisers, LG members question seniors on how Lasantha was given nominations given track record
- SJB says focus was on fraud, corruption during nominations; Namal makes Police reports compulsory
- Govt. finalising 2026 Budget, balancing IMF; AKD opposes IMF’s push for imputed rental income tax
- IMF notes Sri Lanka’s commitment; AKD informs IMF of Govt. plans to meet 2026 revenue targets
- AKD faces internal clash between Energy Minister, DG over electricity sector reforms; both AKD’s friends
- Multiple challenges for AKD; Sajith says he feels like president with people telling him their issues
- Bimal in China soon after Harini’s visit, meets senior CPC members; Bimal’s successor to New Delhi
- Govt. says PC Polls early next year; EC says unable to hold delayed polls until law is amended, takes time
- Report on plans for SJB-UNP talks given to Management Comm.; Ranjith says no to UNP membership
- Diga says Sajith-RW talks a must to form alliance, warns of minority parties forming another alliance
- RW draws plan to sideline Sajith by aligning with Namal; ‘three idiots’ in UNP blocking union with SJB
- Wajira’s negative statements on aligning with SJB based on RW advice; RW says politics now based on persons
- SLFP holds meetings to re-form a strong Left camp; Jackson’s SJB Organiser wife sees Lord Buddha in MR
- Ownerless Kataragama residence to Irrigation Dept.; Basil denies news on not arriving in Sri Lanka
- Govt. planning another list on former Govt. members, this time on lands; Udaya predicts fate of 159 MPs
- Ishara pushes SLPP to lodge complaint with CID; new Police units probe underworld links, illegal assets
Amidst the many challenges faced by President Anura Kumara Dissanayake (AKD) in governance, which also include clearing messes created by his Cabinet and deputy ministers, he has charted a somewhat dangerous and perilous path with his ongoing war on narcotic drugs and organised crime.
This war will be taken forward in an organised manner following the launch of his ‘Ratama Ekata’ initiative on Thursday (30) at the Sugathadasa Indoor Stadium. This will be the first time since the end of the war in 2009 that the Executive will be launching a joint operation consisting of the three armed forces, Police, Intelligence services, and the Civil Defence Force to crush the narcotic drug and organised crime networks.
While the Navy and Air Force will be tasked with ensuring that narcotic drugs do not enter the country as well as preventing the fleeing of drug lords and organised crime leaders, the Army together with the Police are to crack down on the networks operating within the country. The military is to be assigned at village level to crack down on networks from the grassroots level upwards.
It is learnt that the President personally attends every key discussion held on the issue of combating narcotic drugs and organised crime. He has even taken it upon himself to engage with foreign countries to gain their support for Sri Lanka’s ongoing programme.
It is also learnt that local law enforcement authorities are currently facing some difficulties in securing the repatriation of several organised crime leaders who have found refuge in several European countries. The organised crime leaders who have thus far been apprehended by local authorities have been arrested in the Asian region while planning to flee to European countries.
The main Opposition Samagi Jana Balawegaya (SJB) has also expressed unconditional support to President AKD’s war against narcotic drugs and organised crime.
Be that as it may, AKD’s operation against narcotic drugs and the underworld has undoubtedly increased his security risk, resulting in Janatha Vimukthi Peramuna (JVP)/National People’s Power (NPP) seniors discussing the need to ensure his safety without causing hindrance to the public.
It is in such a backdrop that a special security programme is to be put in place for the upcoming 2026 Budget presentation scheduled for 7 November. A complete security check is to be conducted covering every part of the parliamentary complex from 4 to 6 November. These searches are to include the restrooms used by legislators as well as the lockers used by them in the House.
Opposition clash with Govt.
Despite the SJB’s extension of support to the JVP-led NPP Government to wipe out the narcotic drug and organised crime networks in the country, the killing of Weligama Pradeshiya Sabha Chairman Lasantha Wickramasekara, which is the first killing of a politician under the incumbent Government, resulted in the Opposition locking horns with the Government over the continuing shootings in the country posing a threat to national security and the Government’s failure to ensure security.
The shooting and killing of Wickramasekara, also being referred to by the Government as ‘Midigama Lasa,’ caused a clash between the Opposition and Government following a statement made by Public Security Minister Ananda Wijepala in Parliament saying that Wickramasekara was involved with the underworld.
Wijepala told Parliament following the news of Wickramasekara’s killing that there was no threat to national security, despite shooting incidents in the recent past, including that of Wickramasekara.
He noted that there was an evident clash between organised crime groups in the country that were also in possession of weapons and that the shooting that had killed Wickramasekara was also one such incident. “Two cases have been filed at the Matara High Court, two cases at the Kurunegala High Court, and two at the Galle High Court. He was someone under a suspended prison sentence. He was linked to underworld activities,” the Minister said.
Wijepala went on to say that Wickramasekara was an underworld figure although he was a politician and public representative elected through the SJB.
The Minister’s statement gathered much flak from Opposition Members of Parliament (MPs), who condemned it saying that the Government, instead of conducting a proper probe into the incident, was trying to justify the killing.
A united Opposition was seen condemning Wijepala’s comments, questioning how he had drawn the conclusion that the shooting was a clash between the underworld even before conducting an initial probe and why he had waited until Wickramasekara’s killing to speak about court cases against him. The Opposition further condemned the Government for trying to justify Wickramasekara’s killing.
Sarvajana Balaya Leader Dilith Jayaweera said: “It cannot happen. If this is how the Government is justifying killings, someone can shoot me, Dilith Jayaweera, and the Government will say Dilith Jayaweera, also known as ‘Rotiya’ or ‘Derana Rotiya,’ was shot and justify it by trying to create some link.”
Opposition and SJB Leader Sajith Premadasa also told Parliament that Wickramasekara had requested the Inspector General of Police (IGP) for security due to death threats faced by him and that the IGP had ignored the request.
SJB Weligama Organiser Rehan Jayawickreme also questioned the Government’s narrative over the killing of Weligama Pradeshiya Sabha Chairman Wickramasekara, calling it a “convenient cover-up under the label of underworld activity”.
Jayawickreme revealed that in August, the late Chairman had formally written to the IGP warning of threats to his life and had even outlined a planned assassination attempt either outside court or at the Pradeshiya Sabha premises, while requesting Police protection, which was never granted.
Minister Wijepala responded by saying that since Wickramasekara was listed as an Island Re-convicted Criminal (IRC), he could not be provided with Police security.
Following this statement, Wijepala was reminded by some members of the Opposition that he had been removed from the Police force over his alleged involvement with a banned organisation and assisting terrorist activities at the time.
Chamara’s ghost
Meanwhile, Opposition MP Chamara Sampath Dasanayake claimed that if he were to be killed by the likes of the Public Security Minister, he would become a ghost and haunt him (the Minister) to take his revenge over the killing.
“I know you are planning to kill us. If you do, I will haunt you and seek revenge,” Dasanayake has said, directing his statement towards the Public Security Minister.
Responding to Dasanayake’s claim, Justice Minister Harshana Nanayakkara asked the Opposition MP not to become a ghost since he was frightening even at present.
“We will never kill you. Don’t become a ghost. You have a face that scares us even in real life. Please, don’t become a ghost. We even get scared to see you in the morning, even as you are now. We will protect you. Don’t get scared,” the Minister has said.
Backhoe Saman’s Namal
The debate between the Government and Opposition over the former’s claim that the killing of the Weligama Pradeshiya Sabha Chairman was a result of an underworld clash while the latter held the Government responsible for the murder also resulted in the Government implying that MPs in the Opposition had links with leading organised criminals.
Deputy Minister Mahinda Jayasinghe claimed in Parliament last week that investigations into the mobile phone of organised criminal Backhoe Saman, who is detained and being interrogated by the Police, had found a number saved under ‘Namal Sir’ and ‘My Sir Rajapaksa.’ “We don’t know who this Namal Sir is,” he added. Jayasinghe further noted that there were doubts over the individual being referred to as Namal Sir.
However, Sri Lanka Podujana Peramuna (SLPP) National Organiser Namal Rajapaksa, to whom Jayasinghe had referred to in innuendo, responded saying that he was not aware of the reference being made.
“There is a deputy minister in the Government also called Namal, Namal Karunaratne, so you never know. But I’m happy that whenever they hear the name Namal, they remember me,” Namal said with a laugh.
House turns pink and black
Meanwhile, legislators from both sides of the divide attended Parliament sessions on Wednesday (22) attired in pink to raise awareness about breast cancer.
Opposition legislators however turned their colours the following day, Thursday (23), when they attended parliamentary sessions clad in black attire as a mark of protest against the killing of the Weligama Pradeshiya Sabha Chairman and what they claimed to be the emerging culture of assassinations in the country. Opposition members who were not attired in black were seen with black armbands or black shawls.
SJBers question seniors
Meanwhile, the assassination of the Weligama Pradeshiya Sabha Chairman had resulted in an internal discussion amongst some SJBers, especially organisers and Local Government members, questioning the allegations levelled by the Government against the late Local Government chief.
Some have questioned how the party had missed Wickramasekara’s alleged underworld activities when granting nominations to contest under the SJB banner. Several senior SJBers had pointed out that the party had focused on allegations of fraud and corruption when selecting nominees to contest the last Local Government Elections and their alleged criminal activities had not been looked at.
Nevertheless, it is learnt that senior SJBers have decided to pay attention to organised criminal activities as well when selecting future candidates to contest under the party.
Namal seeks Police reports
Meanwhile, SLPP National Organiser Namal says that the SLPP will make it mandatory for all its candidates at future elections to submit Police reports at interviews held for nominations.
Stating that Provincial Council Elections were likely to be held in the near future, he said the SLPP would make the necessary arrangements for the polls.
“As a party, we need to make decisions on contesting these elections and providing nominations. This time, it will be mandatory for candidates to submit a Police report to ensure they do not have any links with organised crime or drug activities,” Namal noted.
Balancing Budget and IMF
Amidst the clashes between the Opposition and the Government over the continuing shooting incidents and killings creating an unsafe environment in the country, President AKD is also focused on finalising the 2026 Budget, which he has to present to Parliament come 7 November.
The finalising of the 2026 Budget policies and proposals is no easy task given the International Monetary Fund’s (IMF) close monitoring. The disbursement of the sixth tranche under the Extended Fund Facility (EFF) also hinges on whether the Sri Lankan Government meets its undertaking to the IMF.
The Sri Lankan delegation led by Central Bank of Sri Lanka (CBSL) Governor Nandalal Weerasinghe had also actively participated in a series of high-level bilateral and multilateral discussions during the 2025 Annual Meetings of the IMF and the World Bank Group held from 13-18 October in Washington, DC.
President AKD will be presenting the 2026 Budget during the next parliamentary session.
AKD opposes property tax
Meanwhile, it is learnt that President AKD has objected to the IMF push to impose a property tax in the form of an imputed rental income tax.
During the recent discussion between the President and the IMF delegation while it was conducting the fifth review on Sri Lanka, the delegation had pointed out that former President Ranil Wickremesinghe and his Government had undertaken to implement the imputed rental income tax in March this year, but that it had not happened.
It is learnt that the President had objected to the proposal, saying that the Government could not impose such an unfair tax on the people. He had explained that it was not fair to impose additional taxes on people for purchasing a land, house, or vehicle since they already paid taxes when purchasing them while also paying annual rates and taxes on house and property.
However, the IMF delegation, it is learnt, had pointed out that it did not matter to the fund whether Wickremesinghe or Dissanayake was in power since the undertaking had been made by Wickremesinghe on behalf of Sri Lanka in the country’s agreement with the IMF.
President AKD had also not given in and responded saying that there were some conditions that could be agreed upon and implemented while there were some conditions that could not be agreed to since they could not be practically implemented. The President had further noted that such a condition could be revisited when such a tax could be practically implemented on the ground.
The IMF officials had then questioned the President how he planned to bridge the revenue shortfall that would be created by not implementing the proposed imputed rental income tax.
AKD explains to IMF
President AKD, it is further learnt, had responded saying that the Government had a plan in place to meet the targets set by the IMF. He had explained that former President Wickremesinghe had increased revenue from 8% GDP to 13% GDP when the incumbent Government assumed office. “You have asked us to increase this to 15% next year and we have made plans to increase it to over 16%,” AKD had said.
The IMF officials had been satisfied with the President’s response and had noted that if that were the situation, the Government should continue with its growth strategies to further strengthen the country to prepare for the debt repayment that was scheduled to begin in 2028.
Internal clash
While President AKD is engaged in an effort to address the economic challenges, a key Government Minister has recently clashed with a senior Government official appointed by the President to carry out key reforms in the Government.
This clash is between Energy Minister Kumara Jayakody and Power Sector Reforms Secretariat Director General Pubudu Niroshan Hedigallage. The latter was an appointment made by the President himself with the intention of completing energy sector reforms, which is an undertaking to the IMF. The Minister, who is currently facing a probe under the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) over alleged misconduct in the past, is also said to be a close associate of the President.
Jayakody had written to the Energy Ministry Secretary last week objecting to the service extension granted by him (the Secretary) to Hedigallage, claiming that it was the Minister who held the power to grant such an extension. He had further demanded the suspension of the directive and the withdrawal of the letter.
It is learnt that the Minister has been disgruntled with Hedigallage’s work, especially since key decisions related to the power sector were being made by the latter with direct coordination with the President’s Office, and has therefore sided with the trade unions, which have engaged in a work-to-rule campaign and expressed their displeasure towards Hedigallage while calling for his removal from office.
It is further learnt that the Minister’s letter to the Ministry Secretary demanding the withdrawal of the letter granting a service extension to Hedigallage had been leaked to the media by a key trade union that had called for the Director General’s removal.
This clash has resulted in energy sector officials facing a dilemma since both the Minister and Hedigallage are close associates of the President, and the President in turn has to now intervene to resolve the crisis in addition to his ongoing governance work.
‘President’ Sajith Premadasa
Meanwhile, Opposition and SJB Leader Premadasa has spoken of how he feels like the president of the country.
Speaking during a public meeting in Vilachchiya in the Anuradhapura District, Premadasa has said that he wondered why people were bringing their issues to him, the Opposition Leader, when there was a President and a Government in office.
“I wonder whether I am President Sajith Premadasa,” he had said at the public meeting.
Bimal in China
Meanwhile, the JVP/NPP Government seems to be in overdrive to build relations with neighbouring India as well as with China.
It is interesting to note that soon after Prime Minister Harini Amarasuriya’s recent visit to China, senior Government Minister Bimal Rathnayake left for the same country on an official visit. News of Rathnayake’s visit to China came to light following questions in the media about why he had travelled overseas soon after the recent Cabinet reshuffle that saw the Ports and Aviation portfolio being removed from him and replaced by the Urban Development portfolio.
Rathnayake’s visit was organised by the Communist Party of China (CPC) and during the visit, the Minister had met with Guangxi Committee Secretary Chen Gang and several other provincial officials. The Minister has also met with several senior members of the CPC as well as his counterpart in China.
New Ports Minister to India
Meanwhile, Rathnayake’s successor to the Ports and Aviation portfolio, Anura Karunathilaka, is to engage in a tour of India tomorrow (27) and Tuesday (28) to attend the India Maritime Week 2025, being organised by the Indian Government’s Ministry of Ports, Shipping, and Waterways at the Bombay Exhibition Centre, Mumbai.
During his visit, Karunathilaka is to hold a bilateral meeting with his Indian counterpart, Minister of Ports, Shipping, and Waterways Sarbananda Sonowal.
There was also much suspicion among political circles over the removal of the Ports and Aviation portfolio from Rathnayake during the recent ministerial reshuffle due to the belief that the change had been made due to India’s displeasure over Rathnayake’s disinterest in moving forward with Indian-funded projects in the ports sector.
EC unable to plan PC Polls
Meanwhile, talk of holding the delayed Provincial Council (PC) Elections early next year was put in perspective by the Election Commission (EC), which has stated that it is unable to make the necessary arrangements to hold the delayed PC Polls until new laws are introduced to the electoral system to hold the polls.
Election Commission Chairman R.M.A.L. Rathnayake has said that the commission did not have the power to plan the delayed PC Elections until the Provincial Councils Act is amended by Parliament. “If the Provincial Council Election is to be held under the old electoral system, then the new additions to the piece of legislation need to be removed,” he noted.
Once the act is amended, the Election Commission is expected to decide on holding the PC Elections, including whether the elections for all PCs should be held on the same day or whether they should be held separately.
According to the EC Chairman, funds have been allocated to hold the PC Elections this year and the funds will be returned to the Treasury if the polls are not held this year. Moreover, an allocation of around Rs. 5-6 billion will have to be included in next year’s Budget allocations if the polls are to be held next year.
Given that the Government will be engaged in the 2026 Budget process from next month until mid-December, amending the Provincial Council laws will have to be pushed till early 2026. Once the relevant laws are amended, the Election Commission will also require time for preparations to call for PC Elections. Hence, the holding of the delayed PC Elections is likely to face further delays.
SJB report on UNP talks
Meanwhile, on the Opposition side, the report that was formulated by a four-member committee of SJBers – Kabir Hashim, Mujibur Rahman, S.M. Marikkar, and Eran Wickramaratne – on forming a common work programme with the United National Party (UNP) was handed over to the SJB leadership on Wednesday (22).
The party leadership has in turn handed over the report to the SJB’s Management Committee.
No UNP membership
SJB General Secretary Ranjith Madduma Bandara meanwhile clarified that no SJBer would take membership of the UNP even if the two parties were to reach a consensus on a common working plan between them.
He explained that the economic policies of the SJB and UNP were not too different and that the parties would not have an issue in working together once consensus was reached between the two parties.
Madduma Bandara further noted that once the SJB and UNP finalised a common work programme, it would also be open for other parties to join.
Diga wants Sajith-RW talks
Meanwhile, several of the SJB’s alliance partners have urged the SJB leadership to engage in direct talks with the UNP Leader if there is a genuine effort to form a common work programme between the two parties.
The Tamil Progressive Alliance’s (TPA’s) Palani Digambaram has said that both the SJB’s Premadasa and the UNP’s Wickremesinghe should meet and discuss one-to-one if the two parties are to unite. Digambaram has warned that if the two Leaders of the SJB and UNP fail to hold a direct discussion to reach a consensus on forming an alliance, the minority parties will form a separate alliance.
While reiterating that the SJB and UNP will not have a political future if they do not unite, Digambaram has noted that the two parties should form a common alliance to contest future elections while safeguarding the identities of the two parties.
“They need to talk and come to a good position. What I must tell Sajith and Ranil is that they need to meet, discuss, and form an alliance under a common symbol. Otherwise, the minority parties will also not wait. We will form a separate alliance,” Digambaram has said.
Wajira’s contract
Meanwhile, UNP Chairman Wajira Abeywardena seems to have been assigned the contract of blocking the formation of a united front between the SJB and UNP. It is learnt that apart from one or two UNP seniors, the rest of the UNPers are supportive of a union with the SJB.
The SJB has now named the three UNP seniors, including the party leadership, opposed to a union with the SJB as the ‘three idiots.’
Nevertheless, what many of the SJBers are unaware of is UNP Leader Wickremesinghe’s plan with regard to the joint Opposition coalition. Wickremesinghe is more keen on getting the SLPP’s Namal on board than Opposition and SJB Leader Preamdasa. While courting Namal and the SLPP, Wickremesinghe, together with the likes of Abeywardena, is drawing plans of getting some sections of the SJB onto the proposed joint Opposition platform along with other Opposition parties.
Wickremesinghe, it is learnt, is once again looking at sidelining Premadasa and taking the lead of the joint Opposition coalition that is in the making.
Be that as it may, it will be interesting to see if Namal will join forces with Wickremesinghe and work under his leadership, which would result in an erosion of Namal’s gradually increasing popularity, and whether Namal will decide to push his ambitions till 2034 by aligning with Wickremesinghe.
No more party politics
However, Wickremesinghe recently shared his reading of the current political developments. Speaking to several Opposition politicians at the funeral of his former Media Director’s wife, the former President noted that future political developments would be more focused on individuals than on political parties.
“The era of party politics is now no more. Future developments in electoral politics will be focused mostly on individual personalities,” Wickremesinghe had explained.
RW turns to Harin
Meanwhile, the UNP Leader has turned his attention to Harin Fernando to carry out his plans for a joint Opposition programme. In order to provide legitimacy to his work on behalf of the UNP Leader, Fernando has been vested with a newly-created position in the party – Deputy General Secretary of Political Mobilisation.
It is learnt that the newly-created post does not have any binding powers since it has not been ratified by a party convention to be included in the party Constitution. It is also learnt that Fernando was interested in the party’s National Organiser post, which is currently being held by Wickremesinghe confidante Sagala Ratnayaka.
Following this new appointment, Fernando has been assigned the task of organising the 1,000 public meetings around the country that have been mooted by Wickremesinghe while also working to unite political parties across the country and coordinate a common programme of action.
SLFP focuses on the Left
While the SJB and UNP are looking at uniting under a common work programme, the Sri Lanka Freedom Party (SLFP), it is learnt, is looking at strengthening the Leftist political camp. A meeting to discuss a union of Left-leaning parties was held at the SLFP Headquarters at Darley Road in Colombo recently.
This meeting was attended by Nimal Siripala de Silva, Mahinda Amaraweera, Lasantha Alagiyawanna, Duminda Dissanayake, Chamara Sampath Dasanayake, Anura Priyadharshana Yapa, Tiran Alles, Udaya Gammanpila, Sanjeewa Edirimanna, and several others.
The discussion, it is learnt, had focused on the latest political developments and the ongoing move of the SJB and UNP to unite, creating an alliance of the Right-wing camp, resulting in the Leftist camp exploring how the Right and Left wings could form a coalition without compromising on their respective identities.
Seeing Lord Buddha in MR
Meanwhile, pilgrimages by politicians, diplomats, the clergy, and ordinary citizens to see former President Mahinda Rajapaksa (MR) saw the addition of a new group of individuals. This time around, the interesting group of visitors were artistes.
A group of artistes who have been supportive of MR visited him last week at Carlton House in Tangalle.
However, it was the late Jackson Anthony’s wife Kumari Munasinghe who made an interesting statement to the media after visiting MR. She said that seeing MR was like seeing Lord Buddha and was very satisfying.
Hearing Munasinghe’s statement, Opposition politicians as well as posts on social media noted that it was Munasinghe’s husband who had first stated that MR was related to Lord Buddha and that now Munasinghe was trying to follow in her husband’s footsteps.
However, Munasinghe’s visit to MR and her statement also raised many eyebrows, especially in Opposition political circles, since she had accepted an organiser post in the Gampaha District from Opposition and SJB Leader Premadasa in the run-up to last year’s national elections and had even supported him at the last Presidential Election.
Govt. preparing another list
Meanwhile, the Government, while aggressively pursuing its anti-corruption agenda with a special focus on members of former governments, is also in the process of preparing another list to expose alleged irregularities committed by members of former governments. The latest list, it is learnt, is to reveal details about land that has allegedly been acquired in an irregular manner by former ministers and deputy ministers.
This was revealed by a statement made by Deputy Minister of Land Aravinda Senarath in Parliament last week, where he had stated that several former MPs, politicians, and Government officials were suspected of having illegally acquired hundreds of acres of land in the Nuwara Eliya District during the tenure of the previous Government.
Senarath had revealed that preliminary reports had indicated large-scale, arbitrary land acquisitions by politically influential individuals. He had alleged that the Land Reform Commission (LRC) did not possess any official record of such allocations and that formal investigations would be launched to verify the details.
The Deputy Minister had made this observation in response to a question raised by JVP/NPP MP Manjula Suraweera Arachchi during the oral question session in Parliament.
Suraweera Arachchi had claimed that while ordinary residents struggled to find land to live in, former ministers and senior officials had obtained vast tracts of property across Nuwara Eliya.
“A former State Minister has acquired 50 acres in Ambagamuwa, Wewalthalawa, while a top official has obtained 100 acres nearby. Another former MP has taken 16 acres in Kotmale East, and two former Ministers have collectively acquired several plots in Talawakelle and Magasthota,” the MP had alleged.
Deputy Minister Senarath had further stated that none of the names mentioned appeared in the LRC’s official allocation list and that similar reports had emerged from other parts of the country as well.
Udaya’s prediction
Meanwhile, former Minister Udaya Gammanpila has predicted the fate of the 159 ruling party MPs in the current Parliament, stating that they will be put behind bars under the next government.
Criticising the way in which the JVP/NPP is handling the salaries of its public representatives, Gammanpila has claimed that public funds provided for official purposes cannot legally be donated to political party funds.
According to him, while MPs are free to use their personal income as they wish, allowances such as those for offices, fuel, communications, and transport must be spent strictly for the intended public purpose. “Funds given to maintain an office – such as rent, electricity, or equipment – cannot be handed over to a party. Doing so amounts to the misuse of public money,” Gammanpila observed.
“All 159 Government MPs who misuse these public funds are committing a serious crime. Under the next government, an entire ward at Welikada Prison will have to be reserved for them,” he has further claimed.
Sewwandi pushes SLPP to CID
Meanwhile, SLPP members have lodged a complaint with the Criminal Investigation Department (CID), alleging an organised campaign of false propaganda aimed at discrediting the party and its leadership, including MP Namal.
Social media posts and narratives had reportedly been crafted using Ishara Sewwandi, the suspect connected to organised crime leader Ganemulla Sanjeewa’s death and who was arrested recently in Nepal, with her name and image along with material used by the SLPP during the previous election campaign.
SLPP politician Pasan Kasthuri Fernando has told the media that the complaint has been lodged citing a sustained online smear campaign targeting former President MR and other senior members of the party.
He has claimed that the misinformation is primarily being spread through social media and has intensified alongside recent Police operations that had led to the arrests of individuals linked to narcotics activities.
SIU probe on Police personnel
Meanwhile, the Police Department, it is learnt, is prioritising the enhancement of the Police Special Investigations Unit (SIU) to ensure a comprehensive probe into allegations that numerous Police personnel from senior to lower ranks are linked to various organised crime groups.
The SIU is to work under the direct supervision of the IGP and holds the crucial mandate to investigate internal Police misconduct and officer-related allegations.
However, the unit probing Police personnel is affected by a shortage of personnel, resulting in delays in carrying out timely and effective investigations, and in a bid to address this issue, plans have been set in place to increase the SIU’s capacity by recruiting additional officers and establishing direct communication channels with Intelligence agencies.
The probe conducted thus far has revealed that a significant number of Police personnel have maintained telecommunication contacts with members of organised crime networks.
According to reports, some officers have denied having direct involvement, claiming their actions were carried out under the instructions of other superiors in the force. The SIU therefore has launched probes to also clarify the extent of each officer’s role and responsibility.
New unit to probe wealth
The Sri Lanka Police also officially launched the Proceeds of Crime Investigation Division (PCID), established under the Proceeds of Crime Act No.5 of 2025 last Monday (20).
The division, located at the old Police Headquarters building, was opened under the patronage of Public Security Minister Wijepala.
The PCID has been created to investigate assets, property, and funds obtained through illegal means. The act empowers the new division to coordinate with 34 State institutions and to probe both criminal and non-criminal acquisitions of assets. It can also initiate civil cases in instances of unlawfully acquired property.
Officials have stated that the division will accept public complaints and has the authority to freeze or seize suspicious assets for up to 30 days.
Ownerless Kataragama house
Meanwhile, the controversial house in Kataragama that is believed to be owned by one G. Rajapaksha is likely to be taken over by the Irrigation Department given that the house now remains without an owner.
Deputy Minister Aravinda Senarath Vitharana recently visited the ‘ownerless’ house near Menik Ganga in Kataragama. He said that the Government would take measures to acquire the house since there was no owner of the building and would assign it to the Irrigation Department.
The Deputy Minister has explained that the house has been built illegally on reserve land of the Irrigation Department and has not been granted the necessary approvals for its construction. He has further noted that the construction work has been carried out abusing powers even when the Grama Niladari and other relevant officials had objected to the project.
It has been alleged that the ‘G. Rajapaksha’ under whose name utility bills are sent to the house is former President Gotabaya Rajapaksa (GR). However, GR has dismissed claims that the house in Kataragama is owned by him, resulting in this house becoming the second building to be left ownerless due to anti-corruption probes. The first such ownerless building was in Malwana, which was initially believed to have been owned by former Minister Basil Rajapaksa.
Basil’s denial
Meanwhile, former Minister Basil Rajapaksa has dismissed certain posts on social media that say he will not return to Sri Lanka as long as AKD is President of the country.
Basil had informed some other media outlets that he had not made a statement to the effect that he would not return to Sri Lanka under President AKD’s tenure. However, he had also not informed of any plans to return to Sri Lanka any time soon despite several cases against him currently pending before court.
(Source - themorning.lk)
Audit Exposes Irregularities in Sri Lanka’s Controversial E-Visa Deal
Sri Lanka’s contentious e-visa system has come under renewed scrutiny as the Department of Immigration and Emigration’s special audit report was officially presented to Members of Parliament this week. The report, compiled by Acting Auditor General G.H.D. Dharmapala, reveals serious lapses in financial accountability, legal compliance, and procurement transparency surrounding the multimillion-dollar e-visa contract awarded to a foreign private company.
Speaking in Parliament, Committee on Public Finance (CoPF) Chairman Dr. Harsha de Silva confirmed that MPs had received the special audit report, which includes nine key recommendations to rectify the issues and restore public trust in the visa issuance process. He urged that the recommendations be implemented without delay, noting that the controversy has severely tarnished the image of the country’s border control system.
The Auditor General’s report calls for a comprehensive review of the outsourcing arrangements, urging authorities to determine their legality under the Immigration and Emigration Act of 1948. It also recommends investigations into officials who approved and implemented the project without the involvement of the Finance Ministry or Treasury oversight, particularly in relation to visa revenue being collected in foreign bank accounts.
The report highlights the absence of competitive bidding, weak contractual safeguards, and a lack of cost-effectiveness studies before awarding the contract. It calls for immediate recovery of any losses incurred by the government and insists that future service providers must be selected through a transparent, competitive tender process once ongoing court proceedings are concluded.
The e-visa system, introduced in late 2023, was intended to streamline Sri Lanka’s entry procedures for tourists and business travelers through online processing. However, the project quickly became mired in controversy after revelations that visa fees were being charged in U.S. dollars and collected through a private entity’s overseas account without full government supervision. Public backlash led the authorities to suspend the system temporarily earlier this year, reverting to the previous visa-on-arrival and ETA platforms while investigations continued.
The Auditor General’s findings have revived the debate over digital governance and public-private partnerships in critical state functions. The report stresses that all future contracts must comply with Sri Lankan tax regulations, ensure data protection, and guarantee that all revenue is properly remitted to the state.
While the audit was limited to available evidence, it recommends referring potential unlawful acts to specialized investigative agencies. The controversy, which has already led to several administrative transfers within the Immigration Department, is expected to shape the government’s broader approach to e-governance reforms in the coming months.
Experts warn of disease outbreaks across Sri Lanka
As torrential rains lash Sri Lanka, health experts are sounding the alarm over a surge in waterborne diseases.
Senior Consultant Physician Dr. Ananda Wijewickrama told the Daily Mirror that diseases such as dengue, leptospirosis, hepatitis A, typhoid, and diarrhoea could spread rapidly as rainwater contaminates drinking water sources and creates ideal conditions for mosquitoes to breed.
He said the rainy season greatly increases the risk of several serious illnesses, with dengue fever posing a major threat.
“Flooded and stagnant areas become perfect breeding grounds for mosquitoes. At the same time, floodwater can mix with urine from infected animals, leading to the spread of leptospirosis, or ‘rat fever,’” Dr. Wijewickrama explained.
He cautioned that people working or wading through flooded or muddy areas such as farmers, construction workers, and rescuers are particularly at risk.
“They should wear boots, gloves, and protective clothing, and seek immediate medical attention if they experience symptoms such as fever, headaches, chills, or muscle pain,” he said.
The physician further noted that outbreaks of diarrhoeal diseases, hepatitis A, and typhoid are common after heavy rains due to contaminated drinking water and poor sanitation.
“People often use unclean water from wells or streams during floods, which increases the risk of these infections,” he added.
“These illnesses may not appear right away but could surface as floodwaters begin to recede over the next two weeks. It’s crucial to act early to prevent a health crisis,” Dr. Wijewickrama stressed.
He also reminded the public to ensure safe drinking water by boiling or chlorinating it, properly dispose of garbage to reduce mosquito breeding, and maintain good personal hygiene.
“Simple preventive steps such as washing hands before meals, drinking boiled water, covering food, and avoiding exposure to muddy or stagnant water can save lives,” he pointed out.
(Source - Dailymirror)
Japan Eyes Sri Lanka as Next Strategic Investment Hub
Japan is quietly strengthening its economic footprint in Sri Lanka as both countries explore a deeper industrial partnership aimed at turning the island into a strategic supply base for Japanese manufacturing operations in India and the wider South Asian region.
The Board of Investment (BOI) is currently collaborating with the Japan External Trade Organization (JETRO) to attract new Japanese investors and create a specialized Japan–Sri Lanka Investment Zone. According to BOI Chairman Arjuna Herath, discussions are also underway on developing an India–Sri Lanka Economic Corridor to integrate regional value chains.
Japan’s renewed interest comes amid a global shift in supply chains. Many Japanese manufacturers, heavily invested in India, are now exploring Sri Lanka as a cost-effective alternative for sourcing intermediate goods, logistics, and light manufacturing. “They are considering whether Sri Lanka can act as a supply source to support their Indian operations,” Herath said, noting that several Japanese firms have initiated feasibility assessments within BOI zones.
At present, nearly 85 Japanese companies operate under the BOI framework in Sri Lanka, primarily engaged in automotive components, tire manufacturing, electronics, precision engineering, and construction material production. These firms collectively account for around 12% of annual FDI inflows from Asia, contributing an estimated US$ 120–150 million per year in direct investments and reinvested earnings.
Prominent Japanese investments include Michelin Lanka Pvt Ltd, which expanded its Sri Lankan operations with an additional US$ 72 million from its parent company, and CEAT OHT Lanka Pvt Ltd, a joint venture with a Japanese partner, which committed US$ 111 million to a state-of-the-art tire manufacturing plant. Other notable Japanese-linked ventures operate in renewable energy, industrial automation, and high-tech logistics services.
The BOI has recorded a marked resurgence in foreign investment confidence. Between January and September 2025, it approved 104 projects with total capital investment of US$ 1.06 billion, split almost equally between foreign (US$ 540 million) and local (US$ 520 million) participation.
The breakdown of realized FDI shows equity inflows of US$ 133 million, reinvested profits of US$ 132 million, and intra-company loans of US$ 231 million. Long-term foreign commercial loans amounted to US$ 331 million, bringing total realized investment up 138% compared to 2024.
The Colombo West International Terminal (CWIT) was the single largest investment during the period, injecting US$ 229 million, followed by CEAT OHT’s US$ 111 million and Bluehaven Services’ US$ 85 million for the City of Dreams resort development.
BOI expects total foreign direct investments including new projects, reinvestments, and borrowings to reach US$ 1.1 billion in 2025, driven largely by renewed investor confidence, policy reforms, and improved credit ratings.
Herath emphasized that “the strong participation of existing enterprises reflects the trust built through economic and political stability, transparency, and good governance.”
With JETRO’s involvement and growing Japanese investor interest, Sri Lanka’s next growth frontier may hinge on how quickly it positions itself as a dependable link in Japan’s regional manufacturing and supply chain ecosystem.
Finance Ministry Tender Raises Red Flags over Bid Fairness
Serious concerns have emerged over the transparency of a multibillion-rupee vehicle procurement tender floated this week by the Ministry of Finance, Planning and Economic Development, with everal industry experts warning that the tender conditions appear to favour a predetermined bidder.
The Ministry on Thursday called for sealed bids to supply 1,775 brand-new, diesel-powered, automatic transmission double cabs through a national competitive bidding process. However, the Ministry has allowed just 12 days for submission of bids from October 23 to November 4, 2025 leaving potential suppliers scrambling to meet the tight deadline.
The unusually short window, coupled with the absence of a pre-bid meeting, has raised questions about whether the process was designed to restrict competition. Tender analysts note that such brief bidding periods for a project valued at over Rs. 40 billion are atypical for government procurements of this scale, where due diligence, documentation, and logistics arrangements generally require weeks of preparation.
The tender’s technical and eligibility requirements have also drawn scrutiny. To qualify, bidders must demonstrate a minimum annual turnover of Rs. 10 billion during 2017–2019—a period preceding Sri Lanka’s vehicle import ban. This clause, experts argue, automatically disqualifies several legitimate local and regional suppliers who were unable to maintain such volumes during that restricted import period.
Additionally, the requirement that bidders must operate at least ten service and repair centres under their own ownership, with five located outside the Western Province, further limits participation. The exclusion of franchise networks or authorized service associates a common practice in the auto industry appears designed to restrict eligibility to one or two dominant players with nationwide infrastructure.
Sources in the motor trade allege that the conditions collectively point to a tailor-made bid, potentially pre-arranged for a known supplier with existing facilities and financial scale. “This level of technical specificity within such a short timeframe is unrealistic unless a party was pre-informed,” a senior procurement consultant said.
Further examination of the bid document reveals other detrimental clauses, including a requirement that all vehicles must be delivered within 60 days of contract award, a condition nearly impossible under current import restrictions and shipping delays. The document also specifies that vehicles must be of a “globally recognized brand with manufacturer warranty certification,” but fails to provide clear parameters leaving room for subjective interpretation by evaluators.
The Finance Ministry has defended the procurement as part of its effort to strengthen field-level operations of ministries and departments, particularly in sectors such as agriculture, irrigation, and land management. However, the lack of transparency, industry consultations, and adequate preparation time has amplified calls for an independent audit of the tender process.
Given the scale, value, and urgency of this procurement, the controversy highlights a growing concern that public tenders in Sri Lanka are increasingly vulnerable to pre-determined outcomes, undermining fair competition and public trust in state contracting practices.
“Cabinet approval has been granted for the urgent purchase of a number of essential vehicles and machinery for state institutions, and the government has decided to first purchase a certain number of double cabs from the total vehicle requirement for the year 2025 It was not immediately clear why the tender was being closed at short notice.
CIABOC Leads Record Anti-Corruption Drive Targeting Top Officials
Sri Lanka’s Commission to Investigate Allegations of Bribery or Corruption (CIABOC) has recorded its most active year in nearly a decade, marking a historic surge in arrests, convictions, and public engagement. The latest performance data shows a sharp rise in enforcement actions that began in 2024 and has carried into 2025, reflecting the growing impact of the Anti-Corruption Act, No. 9 of 2023.
CIABOC’s intensified campaign has shifted beyond traditional bribery cases to tackle large-scale corruption and misconduct involving high-ranking public officials and political figures. The Commission said its mission now prioritises robust law enforcement, prevention, and transparency to strengthen governance and public accountability.
In 2024, CIABOC conducted 53 successful raids the highest in years compared to 43 in 2023 and 32 in 2022. These operations led to 86 arrests, up from 57 the previous year. The momentum remains strong in 2025, with 27 raids and 34 arrests in just the first six months.
While bribery remains central to CIABOC’s operations, the agency has widened its reach into more complex corruption cases. In 2024, the Commission filed 83 cases, 70 of which were bribery-related. During the first half of 2025, 15 of the 50 filed cases were corruption-related — nearly matching the highest annual record of such cases in 2022. For the first time, cases involving illicit enrichment and non-declaration of assets have begun to emerge under the new legal framework.
A notable trend has been the prosecution of senior officials and political leaders. Among those arrested in the first half of 2025 were a former Minister of Health and Mass Media, a former Minister of Sports, a former Chief Minister and Chief Secretary of the Uva Province, and a former Opposition Leader of the Central Provincial Council. High-profile arrests also included senior officers from the Department of Motor Traffic, SriLankan Airlines, and even a neurosurgeon.
Convictions have similarly climbed to their highest level since 2015. Thirty individuals were convicted in 2024 including a former Minister of Disaster Management and senior Customs and Railway officials while 24 convictions were recorded in the first half of 2025. Those convicted this year include a former Chief Minister, a former Minister of Sports, and a former MP who also chaired Lanka Sathosa.
CIABOC attributes this momentum to greater public engagement following the 2023 Act. A record 4,267 complaints were lodged in 2024, with another 3,022 received in the first half of 2025. Meanwhile, the Prevention Division has conducted 139 awareness programmes in 2024 and 113 this year, targeting public institutions, private firms, and schools.
The Commission is also supporting the creation of Internal Affairs Units within ministries and State bodies to enhance internal oversight and curb corruption from within.
New Gazette Eases Vehicle Release Amid Import Fraud Scandal
In a major policy shift, the new government has issued a Gazette notification enabling the release of nearly 1,000 vehicles held by Sri Lanka Customs, marking a significant development in the ongoing controversy over vehicle import irregularities. The Gazette, signed by President Anura Kumara Dissanayake in his capacity as Minister of Finance, Planning and Economic Development, came into effect on October 24.
The decision provides a regulatory framework for releasing vehicles imported under Cross Border Letters of Credit (LCs)—a practice that has long been under scrutiny due to widespread allegations of fraud and manipulation. Despite vehicle imports being permitted since February this year, a large consignment of vehicles brought through the Hambantota Port had been withheld by Customs for months over suspected violations of the 2013 Import-Export Regulations.
According to the Gazette, vehicles imported under cross-border LCs opened in third countries, rather than in the country of origin, may now be released under specific conditions. These include full verification of import documentation, Customs clearance upon payment of all applicable duties and penalties, and compliance with registration and emission standards prior to release.
The decision comes amid increasing pressure on the government to address irregularities in vehicle imports that have cost the Treasury billions of rupees in lost revenue. Investigations over the past two years have revealed that several importers exploited loopholes in banking and documentation systems by routing LCs through intermediary countries to evade taxes, undervalue vehicles, or disguise country-of-origin details.
Customs officials and industry experts warn that such schemes not only distort market prices but also undermine legitimate importers and financial institutions. In several cases, vehicles were imported using forged invoices or mismatched engine numbers, raising concerns about money laundering and the entry of stolen or illegally modified vehicles into the domestic market.
The government’s latest move is expected to generate mixed reactions. While vehicle importers welcome the release as a relief after prolonged delays, consumer rights groups have urged authorities to ensure transparency and accountability in implementing the Gazette. Economists argue that the decision reflects the administration’s attempt to balance economic recovery with enforcement integrity—allowing revenue generation from Customs duties while preventing market stagnation.
As Sri Lanka continues its efforts to stabilize the economy, the vehicle import sector remains a critical test of regulatory discipline and governance credibility. The Finance Ministry has indicated that a more comprehensive import control and verification mechanism will soon be introduced to prevent similar abuses in the future.
Court Orders Customs to Fast-Track BYD EV Probe
Sri Lanka’s long-promised leap into electric mobility has hit a legal speed bump as the Court of Appeal this week ordered Sri Lanka Customs to expedite its investigation into the controversial detention of BYD electric vehicles imported by John Keells CG Auto Ltd. (JKCG), a joint venture between Sri Lanka’s blue-chip conglomerate John Keells Holdings PLC and Nepal’s Chaudhary Group (CG Corp Global).
During Thursday’s hearing, Court of Appeal President Justice Rohantha Abeysuriya stressed that while Customs plays a crucial role in revenue collection, the interests of consumers and importers must also be safeguarded. The court directed Customs to swiftly conclude its probe into the vehicles’ engine (motor) capacity and urged all parties to cooperate.
The dispute erupted after Sri Lanka Customs detained several shipments of BYD electric vehicles, alleging that their motor power had been under-declared to reduce import duties. John Keells CG Auto filed a writ petition seeking the release of around 1,000 vehicles held at the port. In August 2025, the court allowed conditional release upon submission of a bank guarantee of about Rs. 3.6 billion and cooperation with an independent technical committee.
Additional Solicitor General Sumathi Dharmawardena, appearing for Customs, informed the court that the vehicles could be released under a company bond, while a detailed report on the scanning equipment used for inspection would be presented next week. However, President’s Counsel Farzana Jameel, representing JKCG, argued that the detention was unlawful. The court will revisit the case on October 28 to consider possible settlement terms.
Meanwhile, John Keells CG Auto issued a public statement clarifying that none of the recalled BYD Tang or Yuan Pro models had been sold in Sri Lanka. The recall, announced by BYD in China, affected vehicles manufactured between 2015 and 2022, but not those imported locally. JKCG emphasized that all BYD units sold in Sri Lanka carry full manufacturer warranties and after-sales support from trained technicians.
The case has drawn attention to Sri Lanka’s fragile regulatory environment for electric vehicles. The BYD venture, launched in 2024 as a major green initiative, was expected to revolutionize the country’s EV market with showrooms in Colombo, Kurunegala, Ratnapura, and Ampara. Yet, the customs controversy has stalled deliveries and cast a shadow over the project.
The controversy also echoes past regulatory challenges faced by CG Motors in Nepal, where the company was accused of tax manipulation in 2023. Combined with Chaudhary Group’s acquisition of Union Bank of Colombo through offshore channels, questions have surfaced about governance and transparency.
As Sri Lanka pushes toward sustainable transport, the BYD case underscores a broader issue — balancing investor confidence, regulatory scrutiny, and public accountability in the country’s emerging EV landscape.
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