Mattala airport loses millions daily as Airbus investigation continues

Sri Lanka’s Mattala Rajapaksa International Airport (MRIA) is bleeding between Rs 6-7 million every single day, bringing the country’s public financial management back under the spotlight alongside fresh legal investigations into the 2013 Airbus aircraft procurement deal involving SriLankan Airlines.

The growing fallout covers both the long-standing financial burden of the underused airport and separate bribery and money laundering allegations tied to the national carrier’s aircraft purchase, with legal proceedings currently before the Colombo Chief Magistrate’s Court.

The real cost of the Mattala investment

The MRIA was opened in 2013 as a transport and economic hub for the Southern Province, with construction originally estimated at USD 209 million.

However, that figure eventually rose to USD 243.7 million by the time the project was completed using loan facilities from the Export-Import Bank of China.

Although the airport was designed to handle one million passengers and 45,000 metric tonnes of cargo annually, only 321,577 passengers passed through its terminals over the past six years combined.

In 2024 alone, the airport recorded operational costs of RS. 3.6 billion against revenue of just Rs. 242 million, leaving the Treasury to continue paying an annual interest instalment of Rs. 2.05 billion on the construction loans.

The clearing of forest land within a traditional elephant migration corridor to build the airport has also resulted in long-term environmental damage.

SriLankan Airlines was drawn deeper into the crisis when it was directed to route flights through Mattala in an effort to attract commercial traffic to the underperforming airport, a decision that cost the national carrier an additional Rs. 740 million in losses between 2013 and 2015 alone.

Years of non-commercial decisions and management shortcomings have since pushed the airline’s cumulative losses beyond 500 million US dollars, placing a heavy burden on the national economy.

Airbus deal

A separate but related dimension of the crisis concerns the USD 2.5 billion aircraft purchase agreement signed between SriLankan Airlines and Airbus in 2013.

The UK Serious Fraud Office and other international investigative agencies disclosed that a bribe of USD 16.84 million had been promised to intermediaries to secure the deal, with a portion allegedly laundered through bank accounts in Brunei and Singapore.

The government was ultimately forced to cancel the A350 aircraft order in 2015, incurring compensation payments of Rs. 18.8 billion.

The Commission to Investigate Allegations of Bribery or Corruption (CIABOC), together with the Attorney General’s Department, has since launched comprehensive legal inquiries into the money laundering and bribery allegations surrounding the transaction.

Member of Parliament Namal Rajapaksa was produced before the Colombo Chief Magistrate’s Court and remanded until 29 September, based on evidence indicating that he had received RS. 100 million in connection with the deal.

His defence lawyers argued before court that the allegations were baseless and challenged the credibility of the witness statements presented against him, with the ruling on his bail application also expected on 29 September.

Statements have separately been recorded from former President Mahinda Rajapaksa regarding the transaction, while investigations continue into the death of former SriLankan Airlines Chief Executive Officer Kapila Chandrasena, a key suspect in the case.

Efforts to resolve Mattala’s financial burden have included an earlier attempt to hand over airport operations to a joint venture involving India’s Shaurya Aeronautics, though international sanctions on the firm prevented the deal from proceeding.

The government is now examining several Public-Private Partnership proposals to manage the airport’s ground operations and commercial activities in collaboration with private investors, while retaining Air Traffic Control and national security functions under state control.

These efforts run alongside Sri Lanka’s broader external debt restructuring process under its IMF-supported programme, which is also being applied to loan facilities held by the national carrier and has paved the way for renewed international assistance towards infrastructure projects, including the second phase of development at Katunayake International Airport.

Sri Lanka awards $40.8mn Muthurajawela-BIA jet fuel pipeline to Chinese firm

Sri Lanka’s cabinet has approved awarding a contract to China Petroleum Pipeline Engineering Company Limited to build an aviation fuel storage complex and a dedicated transport pipeline to Bandaranaike International Airport (BIA) in Katunayake.

The project is valued at 40.84 million US dollars alongside 8,548.75 million Sri Lankan rupees, inclusive of applicable taxes, minister Nalinda Jayatissa said.

The project involves building an aviation fuel storage tank complex with a total capacity of 92,000 cubic meters and related facilities at Muthurajawela.

A dedicated fuel transport pipeline will be constructed to link the new Muthurajawela storage facility directly to the aircraft refueling terminal at Katunayake.

The contractor will also carry out required modifications and upgrades to the existing terminal installations at Muthurajawela.

“Bids were invited following the international competitive bidding procedure, and three bids were submitted,” Jayatissa said.

Initial approval for the project was granted at a cabinet meeting on July 29, 2024, to establish a direct, secure fuel link between the supply hub and the country’s main international airport.

Aviation fuel is currently moved to Katunayake primarily by road bowsers and rail wagons, creating logistical bottlenecks, higher freight expenses, and safety risks.

The dedicated pipeline system is expected to ensure an uninterrupted, cost-effective supply of jet fuel to airlines as flight frequencies expand at the Katunayake gateway.

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Sri Lanka’s 22nd Amendment needs parliament majority, no referendum: Supreme Court

Sri Lanka’s Supreme Court has ruled that the 22nd Amendment to the country’s Constitution does not require approval of the people through a referendum and can be passed by a Parliament majority.

The court’s decision was read out by Speaker Jagath Wickramaratne at the start of the day’s session.

“I wish to announce that I have received the determination of the Supreme Court in respect of the Bill titled ’22nd Amendment to the Constitution’ and the ‘Judicature Amendment’, which were challenged in the Supreme Court under Article 121(1) of the Constitution.

“The Supreme Court has determined that the provisions of the 22nd Amendment to the Constitution Bill or any part thereof does not require approval by the people at a referendum by virtue of the provisions of Article 83 of the Constitution.

“In the proviso appearing in Clause 2 of the 22nd Amendment to the Constitution Bill, the phrase ‘the date reaching sixty-seven’ (හැට හතට එළඹෙන දිනය) appearing therein shall be replaced with the phrase ‘the date completing sixty-seven’ (හැට හත සම්පූර්ණ කල දිනය).

“The following to be added as the second proviso to Clause 2 of the 22nd Amendment to the Constitution Bill:
> ‘Provided further that the term limit of six years set out in the first proviso will not apply to any person holding the office of the Chief Justice as at the date of coming into operation of this Act.’
>
“The Supreme Court has further determined that the provisions of the Judicature Amendment Bill are not inconsistent with the Constitution and may be passed by the simple majority of the Parliament.
I order that the full determination of the Supreme Court to be printed in the Official Report of today’s proceedings.”

The president has said the government will move forward swiftly with passing the amendment, with a 2-day parliamentary debate scheduled for this week.

The Bar Association of Sri Lanka, opposition legislators and civil society members went to court against the amendment which seeks to extend the retirement age of Supreme Court judges, including the Chief Justice, and Appeals Court judges, among other things.

Judiciary concerns could hurt Sri Lanka’s foreign investments: Opposition leader

International law associations have expressed concerns over the proposed 22nd Amendment to the Constitution of Sri Lanka, primarily regarding its impact on judicial independence and the procedural integrity of the hearings.

The National People’s Power government claims that the constitutional amendment was introduced not to benefit a specific individual in the judiciary, insisting instead that the legislative changes are to clear the backlog of cases and improve efficiency across the judicial system.

Suresh Sallay’s heart condition disclosed in Fort Magistrate’s Court

The Colombo Fort Magistrate’s Court was informed today (22) that former Director of the State Intelligence Service (SIS) Major General (Retd.) Suresh Sallay, who was arrested in connection with the Easter Sunday attacks and is currently receiving treatment at the Colombo National Hospital, has developed a condition known as enlarged heart and has had a medical device fitted to manage the condition.

The information was disclosed based on a medical report prepared by a nine-member medical panel assessing Sallay’s health condition.
The case against three suspects, including Major General Suresh Sallay, in connection with the 2019 Easter Sunday attacks was taken up before the Fort Magistrate’s Court today.

Deputy Inspector General of Police Shani Abeysekara and Additional Solicitor General Dileepa Peiris appeared for the prosecution.

The court was told that Suresh Sallay has been hospitalized since June 7 and has been receiving treatment at the emergency care unit attached to the Cardiology Unit of the National Hospital.

According to the medical report, Sallay has an enlarged heart and a device has been fitted to control the condition. The prosecution also told the court that approximately Rs. 4 million in public funds had been spent on the device.

The Magistrate intervened when the prosecution referred to Suresh Sallay as an alleged “killer,” stating that he remains a suspect and has not been convicted of any offence.

The Additional Solicitor General subsequently apologized to the court and continued his submissions.

The court was further informed that Sallay’s cardiac and mental health conditions are currently stable and that he could be discharged once his dental condition is resolved. A medical panel is scheduled to meet on September 28 to determine whether he should remain hospitalized.

The prosecution also raised concerns over passwords to Sallay’s laptop and mobile phones, stating that the passwords had not yet been provided despite a court order. The defence argued that military intelligence personnel regularly change their passwords as a security measure and may not retain them for long periods.

The prosecution maintained that statements had been recorded from Sallay regarding the passwords, but that he had repeatedly stated that he could not remember them.

Defence President’s Counsel Shavindra Fernando also criticized the ongoing investigation, alleging that investigators were now relying on statements made by politicians after failing to make progress through their own investigations.

After considering the submissions, the Colombo Fort Magistrate ordered that a report on the progress of the investigation be submitted to court on October 21.

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220 Years in Prison Each for 15 Convicted in Easter Sunday Terror Case

The Permanent Trial-at-Bar on Tuesday (22) delivered its verdict in the case against 24 accused, including Naufar Maulavi, over their alleged involvement in the 2019 Easter Sunday terrorist attacks.

Announcing the judgment, the three-judge bench comprising Navarathna Marasinghe, Ramanathan Kannan and Sujeewa Nissanka found 15 of the accused guilty under 23,270 charges, including conspiracy and aiding and abetting the Easter Sunday attacks.

The court sentenced each of the 15 convicted individuals to 220 years of rigorous imprisonment.

In addition to the prison terms, the court also ordered that all movable and immovable properties belonging to the convicted individuals be confiscated by the State.

The verdict was delivered by the Permanent Trial-at-Bar after lengthy proceedings in one of Sri Lanka’s most closely watched terrorism cases.

Of the 24 accused who faced trial, 15 were convicted while nine were acquitted and released by the court.

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British MP launches petition for direct London to Jaffna flights

The Harrow West MP Gareth Thomas has launched a petition calling for a direct flight service between London and Jaffna International Airport, citing the difficulty faced by British Tamil families making the journey to the North-East.

British Tamils have strong family, cultural and community ties to the region, the petition says, with travel to Jaffna meaning visiting relatives, attending weddings and funerals, taking part in religious festivals and maintaining connections across generations.

There are currently no direct flights between London and Jaffna. Passengers can fly to Colombo but must then travel a further 400km, taking six to seven hours by road or rail. That additional journey is particularly difficult for elderly passengers, families with young children and those travelling for important family occasions, the petition says.

A direct service would make journeys quicker, help families stay connected across generations, make travel more accessible for elderly relatives, support cultural and religious ties, and support tourism, investment and economic development in the North-East, it argues.

The petition calls on the British government, Sri Lankan authorities, airlines and London airports to work together to explore and support a viable service, and specifically asks the Department for Transport, the Civil Aviation Authority, airlines and London airports to secure one.

Thomas represents a constituency with one of the largest Tamil populations in Britain. Earlier this month he asked the Foreign Secretary whether the department had discussed with international partners the establishment of an independent international investigative mechanism for the Chemmani mass graves. The Foreign Office did not answer the question directly, saying it had “encouraged consideration of international assistance as excavations continue”.

A short runway and an occupied perimeter

Jaffna International Airport, formerly Palaly Airport, sits 16km north of Jaffna near Kankesanthurai. It was built by the Royal Air Force during the Second World War and later taken over by the Sri Lanka Air Force, which used the base for the fleets that bombed the Tamil homeland throughout the armed conflict. It reopened to commercial flights in 2019 after decades of military use.

The airport’s single runway is 1,400 metres long. Long-haul aircraft capable of flying to London require substantially more, and services at present are limited to domestic flights from Colombo’s Ratmalana airport and routes to India, with IndiGo operating from Chennai. The Sri Lankan Airport Aviation Authority has been working to extend the runway, with Indian financial assistance.

That expansion is contested on the ground. The Sri Lankan government has issued written notices to acquire ancestral land at Myliddy for the airport’s expansion, which residents have refused to surrender, saying they will not accept alternative land or compensation. Land there was seized when residents were forcibly displaced in June 1990 and the area designated a High Security Zone, and the airport perimeter remains within it.

In July the deputy defence minister told the Sri Lankan parliament that the Civil Aviation Authority, through the Air Force, had advised that further land around the 774.98-acre airport would be required for future international aviation expansion, alongside 1,661 acres to be permanently acquired for military infrastructure and not returned to their Tamil owners.

Landowners in Valikamam North have protested weekly for months at Myliddy and at Palaly Junction, demanding the return of land held since their displacement.

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India extends gap finance to continue ferry service to Sri Lanka

India has extended financial assistance of Rs. 300 million for the passenger ferry service between Nagapattinam and Kankesanthurai for another year, its High Commission in Colombo said on Friday.

The latest assistance marks the third consecutive year of financial support from India for the ferry service, which resumed in August 2024.

“The financial support is being extended under the Viability Gap Funding mechanism, amounting to nearly LKR 300 million annually,” the High Commission said in a statement.

“The assistance is aimed at ensuring the affordability and operational sustainability of the service by covering key logistical and operational costs, on terms similar to the previous year.”

Since resuming in August 2024, the ferry service has facilitated the movement of around 52,000 passengers, significantly contributing to cultural, economic and social exchanges between India and Sri Lanka.

The service represents an important milestone in revitalizing maritime connectivity between the two countries, the High Commission said.

The continuation of financial support for the ferry service also aligns with the shared vision for enhanced maritime connectivity, as reaffirmed during the visit of the President of Sri Lanka to India in December 2024 and the visit of the Prime Minister of India to Sri Lanka in April 2025, it said.

“Future plans include rehabilitation of Kankesanthurai Harbour under overall Indian grant assistance of USD 65 million, as well as exploration of additional routes and services that could further expand maritime connectivity and deepen economic and people-to-people linkages between India and Sri Lanka.”

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Gnanasara Thera Seeks Fresh Presidential Pardon, Cites Plight of 87-Year-Old Mother

Bodu Bala Sena (BBS) General Secretary Ven. Galagoda Aththe Gnanasara Thera has called on senior Buddhist monks to request President Anura Kumara Dissanayake to grant him a fresh presidential pardon, after the Supreme Court invalidated the pardon previously granted to him by former President Maithripala Sirisena.

Gnanasara Thera had been sentenced to six years in prison for contempt of court arising from his conduct at the Homagama Magistrate’s Court during proceedings linked to the disappearance of journalist Prageeth Eknaligoda.

The Supreme Court recently invalidated the presidential pardon granted to him by former President Sirisena. As a result, Gnanasara Thera faces having to return to prison to serve the remaining approximately five-and-a-half years of his sentence.

Following the Supreme Court ruling, reports emerged that Gnanasara Thera could not be located, with reports claiming that prison officials had visited his temple on Nawala Road, Rajagiriya, but had been unable to find him.

However, his representatives rejected the reports, maintaining that prison officials had not visited the temple and denying claims that the Thera was in hiding.

Meanwhile, Gnanasara Thera met the Mahanayake Theras of the Malwathu and Asgiri Chapters on 17 September.

He subsequently appeared before the Colombo High Court on 18 September in connection with a separate case filed by the Attorney General over statements allegedly insulting Islam. High Court Judge Buddhika C. Ragala ordered that the case be called again on 30 September.

Police have said they are awaiting the full Supreme Court judgment on the invalidation of the presidential pardon before deciding on further action.

Speaking at the launch of his book 9.5 Vikurthiya at the Sambuddhatva Jayanthi Mandiraya in Thummulla, Colombo, on 20 September, Gnanasara Thera made a special appeal to the Maha Sangha.

He urged senior Buddhist monks to request President Dissanayake to grant him a fresh presidential pardon through the proper procedure, after rectifying what he described as administrative errors committed by officials when former President Sirisena granted him the earlier pardon.

Gnanasara Thera said he respected both the law and Buddhist principles, but argued that if there had been procedural errors, responsibility for them rested with the officials concerned and that it would be unfair to penalise him for those mistakes.

He said he was not afraid of returning to prison, but claimed that such action could discourage young Buddhist monks from speaking out on behalf of the country and the Buddha Sasana in the future.

Referring to the uncertainty surrounding his situation, Gnanasara Thera said he had even considered having a jeewa pansukula — a Buddhist funeral-type religious observance performed while a person is still alive — conducted for him in the presence of his 87-year-old mother.

Among those present at the book launch were Deputy Chief Prelate of the Kotte Sri Kalyani Samagri Dharma Maha Sangha Sabha Prof. Ven. Kotapitiye Rahula Thera, Chief Secretary of the Asgiri Chapter Ven. Medagama Dhammananda Thera, other members of the Maha Sangha, politicians and representatives of civil society organisations.

Naufar Maulavi and 23 Others to Learn Fate as Easter Attack Verdict Tomorrow (22)

The verdict in the landmark case filed against 24 accused, including Naufar Maulavi, under 23,270 charges relating to the 2019 Easter Sunday terrorist attacks, is scheduled to be delivered tomorrow.

The Trial-at-Bar of the Colombo High Court fixed tomorrow for the delivery of its judgment after concluding hearings in the case on August 24, following proceedings that spanned nearly five years.

The case was heard before a Trial-at-Bar comprising Judges Navaratne Marasinghe, Ramanathan Kannan and Sujeewa Nissanka.

A total of 23,270 charges were filed against the 24 accused, while 2,309 witnesses testified on behalf of the prosecution during the lengthy trial.

One of the accused died while the trial was in progress.

During the proceedings, the court ruled that 10 confessions made by the accused to the police under the Prevention of Terrorism Act could be admitted as evidence.

In addition, the prosecution presented Government Analyst reports, DNA reports, and Judicial Medical Officer reports relating to those killed in the attacks as evidence before court.

Another notable feature of the trial was the submission of 2,076 case productions by the prosecution, including explosives, chemicals used in the manufacture of explosives, swords and firearms.

The Attorney General filed the case under the Prevention of Terrorism Act against the 24 accused over allegations of conspiring, aiding and abetting the Easter Sunday suicide bomb attacks that targeted churches and tourist hotels in the Colombo, Negombo, Batticaloa areas on Easter Sunday in 2019.

The accused in the case are

Naufar Maulavi alias Mohammad Ibrahim Mohammad Naufar,

Mohamed Sareef Adam Lebbe alias Gapur Mama,

Hayathu Mohamed Ahamed Milhan,

Mohamed Ibrahim Sadik Abdullah,

Mohamed Ibrahim Sahid Abdul Haq,

Mohamed Anwar Mohamed Rizkan,

Mohamed Mansoor Mohamed Samsudeen, Abdul Manaf Mohamed Fidhrouz,

Mohamed Ramees Mohamed Sajith,

Abdul Latheef Mohamed Shafi,

Husseinul Rizwi Khalid Sameer,

Mohamed Sawahir Mohamed Hassan, Mohamed Ifthikar Mohamed Insaf,

Rasheed Mohamed Ibrahim,

Mohamed Hanifa Zainul Abdeen,

Mohamed Mustafa Mohamed Haris, Kachchi Mohamed Mohamed Jemsith, Zainul Abdeen Mohamed Jaseem, Mohamed Mustafa Mohamed Rizwan, Meera Sahib Mohamed Nafli, Mohamed Ameer Mohamed Ayathulla, Mohamed Ansadareen Mohamed Ilmi alias Ilmi, and Mohamed Akram Ahakkam.

David Myers assumes duties as US Deputy Chief of Mission in Sri Lanka

Deputy Chief of Mission (DCM) David Myers has assumed his position in September the US Embassy in Sri Lanka said.

“David brings extensive diplomatic experience across Asia and beyond and joins Ambassador Eric Meyer and our U.S. Embassy team in advancing the U.S.–Sri Lanka partnership.”

His appointment follows Eric Meyer’s as ambassador earlier this month.

Myers previous assignment was at Embassy Skopje, North Macedonia, where he served as Acting DCM and Political-Economic Section Chief.

Prior assignments include tours in Guangzhou, China; Phnom Penh, Cambodia; Ho Chi Minh City, Vietnam; and Moscow, Russia, the embassy said.

Before joining the US Department of State, David was a lawyer specializing in antitrust law.

He worked for the US Department of Justice’s Antitrust Division in Washington, DC; the Australian Competition and Consumer Commission in Melbourne, Australia; and various private firms.

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