Organised Crimes Bill: Govt informs Supreme Court of key provisions to be amended

Informing the Supreme Court of key amendments to the proposed Prevention of Organised Crimes Bill, the Government today (09) said it intends to completely remove provisions relating to offences under the Excise Ordinance, amend copyright-related provisions under the Intellectual Property Act, and consider further changes to provisions relating to detention orders and the Bail Act.

Solicitor General President’s Counsel Viraj Dayaratne, appearing on behalf of the Attorney General, informed the court that amendments to the provisions relating to detention orders and the Bail Act would be considered following further discussions with policymakers.

He stated that the Government intends to introduce the proposed amendments during the Committee Stage in Parliament.

The Solicitor General said the proposed changes were decided upon following discussions with policymakers, while copies of the amendments were submitted to the Supreme Court and lawyers representing the petitioners.

The details were presented during the hearing of 26 petitions challenging the constitutionality of the Bill before a three-member Supreme Court bench comprising Chief Justice Preethi Padman Surasena and Justices Achala Wengappuli and Sampath Abeykoon.

During the proceedings, the Solicitor General apologised for the delay in providing copies of the proposed amendments.

President’s Counsel Romesh de Silva subsequently requested one hour to examine the proposed changes, to which the Solicitor General raised no objection.

The Supreme Court accordingly adjourned proceedings for one hour to allow the petitioners’ lawyers to review the amendments

Court orders hotel to release booking records over claimed Sallay–Maulana meeting

The Fort Magistrate’s Court ordered a hotel in Ahungalla to hand over to the Criminal Investigation Department (CID) records relating to room bookings for former State Intelligence Service chief Suresh Sallay and Azad Maulana, who gave a statement in connection with the Easter Sunday attacks.

The magistrate issued the order after considering a request from the CID to obtain the records from the Riu Hotel.

Maulana, a former secretary to Pillayan who is now abroad, told the CID in a statement that he had met Sallay at the hotel on 15 and 16 August 2020.

The CID sought the booking records to investigate Maulana’s account of the meeting.

Black July probe Will it deliver justice? By Lahiru Fernando

More than four decades after the Anti-Tamil pogrom of July 1983 which is considered as one of the darkest periods in Sri Lanka’s post-independence history, a proposal to investigate the violence through a Parliamentary Select Committee was presented to the Speaker last week.

Signed and moved by 51 Members of Parliament representing the National People’s Power (NPP) Government, the proposed committee is to examine the events surrounding Black July and its background, identify the consequences and the measures required to strengthen national reconciliation, and provide relief to those affected.

The move came amid a disagreement over the appropriate mechanism to investigate the violence. While the Government favours a Parliamentary Select Committee, some Opposition politicians argue that a Presidential Commission of Inquiry would have greater authority.

In October, TELO Leader and Democratic Tamil National Alliance (DTNA) Vanni District MP Selvam Adaikalanathan presented a Private Member’s Motion calling for a Presidential Commission of Inquiry to establish the truth about Black July ethnic violence.

The Government opposed appointing a Presidential Commission, instead indicating its preference for a Parliamentary Select Committee. Justice and National Integration Minister Harshana Nanayakkara said a Parliamentary mechanism would allow elected representatives from different political parties to participate in examining the issue.

However, while the new proposal has brought the Black July crimes into spotlight once again, different parties have mixed reactions to the latest development with some casting doubts on its usefulness.

Violence that changed the course of a nation

Black July refers to the anti-Tamil violence that swept across Sri Lanka in July 1983, leaving hundreds dead and causing widespread destruction of Tamil homes and businesses. The exact death toll remains disputed.

The killing of 13 Sri Lankan Army soldiers by the Liberation Tigers of Tamil Eelam (LTTE) in an ambush at Thirunelveli, near Jaffna, on the night of July 23, 1983, was the trigger behind these incidents. The killed were serving in a military patrol when they were attacked.

Their bodies were brought to Colombo for a mass funeral at the Borella General Cemetery. As tensions rose following news of the killings, anti-Tamil violence erupted in Colombo and subsequently spread to other parts of the country such as Kandy, Nuwara Eliya, Matale and Badulla.

From July 24 onwards, Tamil residents were attacked in several neighbourhoods of Colombo, including Borella, Wellawatte, Bambalapitiya and Dehiwala. Homes, shops, factories and other businesses owned by Tamils were looted and set on fire. People were assaulted on roads and in public places because of their ethnicity, while families were forced to flee their homes to escape the violence.

There were reports that mobs used electoral registers and other lists to identify Tamil households and businesses. Fifty-three Tamil prisoners including prominent Tamil political prisoners held at Welikada Prison in Colombo were also killed between July 25 and 27, 1983.

The conflict subsequently escalated into a civil war that lasted 26 years, ending in May 2009 with the military defeat of the LTTE. The war resulted in tens of thousands of deaths, widespread displacement and extensive destruction, particularly in the Northern and Eastern provinces.

A legacy of displacement, loss and unresolved questions

The consequences of Black July extended beyond the days of violence. Apart from deaths, another 100,000 to 200,000 were estimated displaced. The destruction of Tamil-owned businesses also had a lasting economic impact. Families lost their properties and livelihoods built over generations. Professionals, entrepreneurs and skilled workers left the country and others sought refuge overseas contributing to the growth of a Sri Lankan Tamil Diaspora in countries like Canada, the United Kingdom, Australia, India and the Europe.

Black July also had major political consequences. In August 1983, Parliament adopted the Sixth Amendment to the Constitution, which prohibited the advocacy of a separate State and required specified public officeholders, including Members of Parliament, to take an oath rejecting support for a separate State. The amendment affected Tamil political representatives who refused to take the oath and further complicated the relationship between Tamil political parties and Parliament.

Four decades later, questions remain about the individuals and institutions responsible for violence, the failure to protect civilians and the absence of a comprehensive process to establish the truth.

For victims and their families, the issue is not simply about remembering what happened, but about receiving official recognition and knowing whether those responsible were ever held accountable. It is against this background that the proposed Parliamentary committee has created both hope and scepticism.

Opposition MP Mano Ganesan, who represents the upcountry Tamil community, welcomed the proposal, describing Black July as an event that darkened Sri Lanka’s history and of which consequences continue to be felt.

However, he believes that an investigation should not examine Black July as an isolated incident. In his view, it was one event in a longer chain of developments that contributed to the country’s ethnic conflict. He said an inquiry should examine the circumstances that led to the violence rather than confine itself to the events of July 1983.

MP Ganesan identified three main objectives for the proposed committee: identifying those responsible and examining the possibility of punishment, providing compensation to victims, and investigating the root causes of the violence.

Addressing the root causes

He acknowledged that securing compensation and pursuing those responsible would not be straightforward after more than four decades. Many victims may have died or migrated, while those who could be held responsible may also no longer be available to face legal proceedings.

Nevertheless, he believes that examining and addressing the root causes remains particularly important. “The war is over, but I firmly believe that the root causes that caused the war are still very much alive. If they are not addressed, they need to be addressed,” he said.

Ganesan also highlighted that the committee should not be used to assign collective blame to an entire ethnic community or political group. He said political leaders and ethnic representatives from different sides should be prepared to acknowledge mistakes made throughout the country’s history.

The purpose of examining past mistakes, he said, should be to learn lessons and prevent their recurrence. He believes a Parliamentary Select Committee could be an initial step because Parliament has the authority to summon individuals, including former Presidents, former Prime Ministers, politicians and public officials, to provide information. He said the committee could submit a report that could subsequently be used in considering legal action.

However, Ganesan insisted that the committee must be inclusive. If it is made up exclusively of Government MPs, he said, opposition parties would not accept it. He also said the Government had not discussed the proposal with his side, adding that a committee should include representatives of all political parties.

Presidential Commission or Parliamentary Select Committee?

Batticaloa District opposition MP Shanakiyan Rasamanickam questioned the Government’s decision to favour a Parliamentary Select Committee over a Presidential Commission of Inquiry.

He said the demand for an investigation had gained momentum following MP Adaikalanathan’s Private Member’s Motion seeking the appointment of a Presidential Commission. The Government’s response, he said, was to propose a Parliamentary Committee instead.

“We wanted a Presidential Commission, but they are trying to come up with a Parliamentary Committee,” Rasamanickam said. He believes that the Presidential Commission would be a more appropriate mechanism to investigate as it has greater powers even to prosecute. He also highlighted that the Government had made little progress on accountability and justice mechanisms during its two years in office.

Calling it a ‘cover up job’, Rasamanickam said the proposed Select Committee could become another exercise that produces a report without results. In his view, a Parliamentary Select Committee would not have the same powers as a Presidential Commission, and he questioned what additional outcome it could deliver.

Rasamanickam also pointed to other Parliamentary Select Committees that, in his view, had failed to produce timely results. He cited committees appointed to examine the holding of Provincial Council elections and Ditwah tragedy, adding that the experience of such mechanisms gave him little reason to expect a different outcome.

He said the central problem was not merely finding out what happened but ensuring that those responsible were held accountable. He referred to previous Commissions and initiatives, including the commission appointed during former President Chandrika Bandaranaike Kumaratunga’s tenure and her public apology in 2004 on behalf of the Government for the violence. While acknowledging that such steps had taken place, he argued that those responsible had not been brought to justice.

He said he would participate if invited but remained doubtful about the Government’s intentions. For Rasamanickam, the key issue is the political will. Without a genuine commitment to accountability, he added that changing the name or structure of an investigative mechanism would not produce justice.

Independence, evidence and the danger of political agendas

Prof. Chandragupta Thenuwara who has long featured the period in his art work raised questions about the purpose, independence and practical value of establishing another Commission or Parliamentary Committee 40 years after the violence.

He noted that Sri Lanka has appointed several Presidential and Parliamentary Commissions over the years, but the implementation of their recommendations has often remained uncertain. For him, the central question is therefore not simply whether a new committee should be appointed, but what is expected to achieve.

He said it was important to identify whether the proposed committee would examine previous commission reports and recommendations and investigate why they had not been implemented or only target particular individuals or groups for political purposes.

An inquiry, he said, must function independently and impartially. Otherwise, it could create a culture of blame rather than contribute to an understanding of events. Instead of blaming Sinhalese or Tamil communities collectively, he said, the investigation should establish what actually happened and identify the circumstances that enabled the violence.

He also added that the inquiry should not focus exclusively on deaths and physical destruction. The economic damage suffered by individuals, families and businesses should also be examined. He also warned that a new inquiry could be exploited by political or nationalist groups to advance their own agendas. If politicians use the process to target particular communities or individuals, it could create fresh tensions rather than promote reconciliation.

He therefore called for proper preparation, public awareness and a clear mandate before establishing a new committee. For Prof. Thenuwara, the objective should be reconciliation and the easing of tensions, rather than revenge or the creation of another political platform.

An official record of the truth

Researcher and writer of Kalu Juliye Dina Hathak (Seven days in Black July) Nandana Weeraratna believes that appointing a Select Committee would be an important step towards addressing the absence of accountability for the violence.

He said those responsible for the attacks had largely escaped legal consequences. Weeraratna added that the violence destroyed not only residential and commercial buildings but also important assets, including cinemas and film studios.

He also called for an investigation into the circumstances surrounding the decision to bring the bodies of the 13 soldiers killed in Jaffna to Colombo for the funeral and how information about the killings was reported at the time.

He believes the inquiry should examine the role of political leaders and other individuals who may have organised, facilitated or supported the attacks. He made allegations about the involvement of political figures and religious leaders, which would need to be independently established through evidence.

Weeraratna also referred to the killings of Tamil prisoners at Welikada Prison during riots and said those were perpetrated by the then Government. Acknowledging that a Parliamentary Select Committee would not have the power to impose criminal punishment, he nevertheless believes it should identify and officially record the individuals responsible, where evidence permits.

He highlighted that the absence of punishment for past crimes has contributed to a culture in which perpetrators believe they can escape accountability. Referring to the burning of the Jaffna Public Library and other attacks in 1981, he said the failure to investigate earlier incidents had also contributed to this problem.

“We cannot turn back the Black July crime now. But a Government-appointed official committee report can at least report the truth to history,” he said. He also believes that an official investigation could provide victims with an opportunity to speak about what happened to them and have their experiences formally recognised. Such a process, he said, could provide a measure of psychological relief and recognition to those who have lived with the consequences for decades.

Weeraratna said that establishing the truth would help distinguish those who committed the crimes from the wider Sinhalese community. He said the violence should not be treated as the responsibility of an entire ethnic group but investigated to identify the individuals and political forces involved.

Government’s decision welcomed

MP Adaikalanathan, who initially called for a Presidential Commission of Inquiry into the matter said he welcomed the Government’s decision to proceed with a Parliamentary Select Committee, although he acknowledged that a Presidential Commission would have had greater powers.

He noted that commissions had, on some occasions, delayed the resolution of issues, with inquiries continuing for years without reaching meaningful conclusions. His Private Member’s Motion called for an investigation not only into the anti-Tamil violence of July 1983 but also into the killings of Tamil prisoners at Welikada Prison during the same period.

He said he had made the request because the present Government, unlike previous administrations that had been in power at the time of the violence, was in a position to examine the events without having a direct connection to them.

More than four decades later, many questions surrounding the killings remain unanswered, he said. These include the identities of those responsible, the whereabouts of the victims’ remains and what happened to the bodies of civilians killed during the violence. He also questioned how many of those involved in the incidents were still alive.

Referring to the Welikada Prison killings during President J. R. Jayewardene’s administration, Adaikalanathan alleged that the prison was breached and outside groups were allowed to enter and attack Tamil prisoners. He highlighted the killing of political prisoner Kuttimani, including the reported destruction of his eyes, as a particularly grave human rights violation.

Although he acknowledged that a Presidential Commission would have been a stronger mechanism, with wider powers, he described the proposed Parliamentary inquiry as an historically significant step. However, he said it was too early to determine how far such a committee could go in delivering justice.

“We have to wait and see what happens next. We have no other option,” he said, adding that he took some satisfaction from the prospect of an official investigation being initiated as a result of the motion he had presented in Parliament.

Source:https:sundayobserver.lk

Posted in Uncategorized

Investigation into July 1983 — eye wash or whitewash?

If media reports are to be believed, 43 years after the 1983 government-sponsored pogrom against the Tamil community in the country, a number of NPP MPs have called for the appointment of a Parliamentary Select Committee (PSC) ‘to conduct a comprehensive investigation into the 1983 Black July riots and their impact’.

Let’s hope the government MPs who sponsored the motion are not holding their breath until the Tamil community thanks them for the belated inquiry. First off, let’s be clear. What happened in July 1983 was not a riot.

Mobs of the then government supporters who happened to be Sinhalese, armed with address lists of members of the Tamil community, went from house to house killing and assaulting Tamil citizens. They burned their homes, looted their goods and destroyed their businesses.

The police and armed forces of the country (whom MP Arunachalam wants president Dissanayake to refer to as heroes) stood by idly; more often than not, they egged the mobs on. The then President of the country did nothing to stop the unfolding violence on a section of his countrymen. When he did speak, he did not condemn the brutal anti-Tamil violence or offer sympathy to the victims.

He described the attacks on the Tamil community as a reaction of the Sinhalese people who had been “provoked”, ann attempt to justify the pogrom by presenting the actions of organised mobs as a spontaneous, collective outburst of majority frustration.

Most of the immediate victims of that pogrom are probably dead or are at death’s door today. The original leaders of the organisations which took up arms to defend the victim Tamil community are also dead. Around a fourth of the then Tamil population fled the country and are now citizens of those country’s which offered them succour.

The whole world, including us Sri Lankans, whether we be Sinhala, Muslim, Burgher or Tamil, know who organised and implemented the pogrom of July 1983. If by now we still have not learned the impact of that pogrom on our country — a permanent division along ethnic lines — no matter how many enquires we hold, we are destined to be ignoramuses forever. We never seem to learn.

The question that arises is, why it took two years after the NPP government was elected into power, to ‘suddenly’ call for an investigation into the causes behind the ‘so-called 1983 riots’ and its impact.

Are the MPs really concerned at the plight of the long-suffering of the Tamil people? The devastating effect it had on the economy of the country, or a fear that it has created permanent ethnic divisions among our countrymen? Or could it be a ploy to take the minds of our people away from their daily struggle to keep body and soul together.

Today the average wage varies between Rs. 35,000/- to Rs. 50,000l/- per month. Yet the cost of having two nutritious meals per day for a family of four (father, mother and two children) costs at least around 100,000/- per month, without taking into consideration other costs like clothes, travel or medical expenses.

Not surprisingly over 20% of our schoolchildren suffer from malnutrition, while according to the WHO, over 25% of the population lives below the poverty line. Despite this, the government keeps increasing prices of essentials. Today, the price of wheat flour has been increased by a whopping Rs. 13/- per kg and the PUCSL is speaking of further increasing the cost of electricity.

With most of the Rajapaksa family now facing charges of bribery and corruption, it seems a new distraction is needed to take the attention of the people away from the intolerable burdens government continues heaping on them. Whose twisted mind came up with the idea of digging up the horrors of 1983 to save the government its blushes for having failed to control the cost of living?

All of the people cannot be deceived all of the time. We witnessed how the alleged Chemmani mass-gravesite suddenly turned into a mere past gravesite. At the end of the PSC investigation, it may turn out late president Jayawardene was right. ‘Black July’ 1983 may soon be whitewashed.

Source:Dailymirror.lk

TID Question Former Councillor Again Over Statues of TELO Founders

Sri Lanka’s counterterrorism police questioned a former local government official for about three hours on Saturday about the funding of statues honouring two founding leaders of a Tamil militant group TELO. It was the latest step in an inquiry that began with his arrest in July.

Kanthasamy Satheesh, a former deputy chairman of the Valvettithurai Urban Council, was questioned at the Jaffna office of the Terrorism Investigation Division. Investigators focused on how the money for the statues was raised and who provided it, according to people familiar with the inquiry.

Political sources in Jaffna, citing police information, said investigators believe the sculptor who made the statues also made the bust of Thileepan, a political leader of the Liberation Tigers of Tamil Eelam, that appeared unannounced at the Thileepan memorial site in Nallur. Those sources said Saturday’s questioning may have been partly an effort to obtain information about the sculptor. The sculptor has not been publicly identified, and the claim could not be independently verified.

The statues depict Kuttimani and Thangathurai, founding figures of the Tamil Eelam Liberation Organization, or TELO. Organisers had planned to unveil them in Valvettithurai, a coastal town on the northern edge of the Jaffna Peninsula, on July 25, the anniversary of the two men’s deaths in the 1983 killings at Welikada prison in Colombo.

On July 20, Valvettithurai police arrested Mr. Satheesh, who was among the organisers of the ceremony, on accusations of promoting terrorism, according to local news reports at the time. He was produced before the Point Pedro Magistrate’s Court and released on bail.

The police also tried to stop the statues from being erected. The court issued a temporary prohibition order but lifted it on Aug. 5 after the police failed to produce sufficient evidence to justify extending it, according to local reports.

Investigators later summoned Mr. Satheesh for questioning in Kilinochchi. Counterterrorism officers also visited his home in Valvettithurai before calling him to their Jaffna office on Saturday.

It remains unclear whether investigators have identified any unlawful source of funding or intend to bring further charges. No new arrest was reported after Saturday’s questioning.

Kuttimani, whose real name was Selvarajah Yogachandran, and Thangathurai, whose full name was Nadarajah Thangathurai, were among the earliest leaders of the Tamil armed separatist movement. Both were killed at Welikada prison during the anti-Tamil violence of July 1983, when 53 Tamil prisoners were killed over two days.

TELO, which once fought for an independent Tamil state, later gave up armed struggle and entered parliamentary politics. It remains a registered political party in Sri Lanka. In July, the party defended the proposed memorials as a legitimate act of remembrance. It said its transformation from an armed movement into a democratic party should be recognised and that peaceful commemoration should not be restricted.

The inquiry comes amid wider police scrutiny of memorials linked to Tamil militant movements. In October, detectives from the Criminal Investigation Department questioned the mayor of Jaffna, V. Mathivathani, about the installation of the Thileepan bust in Nallur. No one has publicly claimed responsibility for placing it there, and the police later seized it.

Thileepan died in 1987 after a 12-day hunger strike in Nallur directed at the Indian government. The site of his fast is the focus of an annual commemoration.

Posted in Uncategorized

Sri Lanka to renegotiate trade deals with four regional partners

The Cabinet has approved a review of the country’s free trade agreements with India, Pakistan, Singapore and Thailand, as part of a new policy framework aimed at securing greater economic gains from every trade pact.

The framework was submitted by Foreign Affairs Minister Vijitha Herath and sets a baseline to which all future trade agreements must strictly adhere.

The Foreign Ministry has indicated that legal clauses in existing deals will be amended to deliver stronger economic returns.

The renegotiations will cover the 2005 agreement with Pakistan, the widely debated 2018 accord with Singapore and the recently finalised pact with Thailand, alongside the existing arrangement with India.

To guide the effort, the government will appoint two joint public and private sector committees.

One will represent trade associations, and the other will be a dedicated Trade Policy Advisory Committee.

Both are intended to protect domestic small and medium enterprises while widening international market access for Sri Lankan products.

The Cabinet has also sanctioned fresh negotiations on Comprehensive Economic Partnership Agreements with the United Arab Emirates and Oman, with the aim of deepening economic ties in West Asia.

The government further plans to make fuller use of regional arrangements such as the South Asian Free Trade Area (SAFTA) and the Asia-Pacific Trade Agreement (APTA), and to take advantage of the United Kingdom’s Developing Countries Trading Scheme (DCTS).

Posted in Uncategorized

Construction of Jaffna International Cricket Stadium to begin within weeks

Construction of the proposed international cricket stadium in Mandaitivu, Jaffna, is expected to commence within the next few weeks, Minister of Youth Affairs and Sports Sunil Kumara Gamage has announced.

The Sports Minister made the announcement today (8) during an inspection of the land allocated for the stadium, as part of his official visit to Jaffna. He was accompanied by Member of Parliament K. Ilankumaran.

Speaking to media, Minister Gamage said the project had been delayed due to difficulties in obtaining several environmental reports required for the construction process.

However, he confirmed that all necessary documents had now been secured and the preliminary arrangements for the project had been completed.

The Minister further stated that the government expects to complete the entire construction project within one year of its commencement.

The proposed stadium is expected to become a significant addition to Jaffna’s sporting infrastructure, providing further opportunities to promote cricket in the Northern Province.

Posted in Uncategorized

Mattala Airport’s cumulative losses reach Rs. 67.7 billion

The Rajapaksa International Airport in Mattala has incurred cumulative losses amounting to Rs. 67,765 million to date, according to newly disclosed information.

The airport recorded a net loss of Rs. 4,906 million in 2025.

Its operating expenditure during the year amounted to Rs. 2,523 million, while operating revenue stood at just Rs. 257 million.

Although the airport was designed to handle an expected annual passenger traffic of one million, only 462,191 passengers have been recorded over a period of four years, according to the disclosure.

The Airport and Aviation Services (Private) Limited has paid 183.6 million Chinese yuan in interest on foreign loans obtained to construct the airport, covering the period from 2015 to date.

The company says that it intends to identify technically feasible and commercially viable investment and development opportunities for the airport by the first half of next year.

These details have been revealed in the audit report issued for the year 2025 concerning Airport and Aviation Services (Private) Limited.

Posted in Uncategorized

PTA Replacement and Organised Crime Bills Won’t Be Rushed Through Parliament – President

President Anura Kumara Dissanayake says the proposed legislation to replace the Prevention of Terrorism Act (PTA) and the proposed law to combat organised crime will not be rushed through Parliament.

Addressing the National People’s Power (NPP) National Conference of Trade Unions at the P.D. Sirisena Grounds in Colombo this morning, the President said the Government would not seek to pass the two Bills without extensive discussions with relevant organisations and a broad consensus.

The conference was held under the theme, “Let’s Work – Let’s Build the Country, Protect the Power of the Working People.”

President Dissanayake said the Government intended to repeal the existing Prevention of Terrorism Act and introduce new legislation that addresses the evolving nature of terrorism.

He also stressed the need for stronger laws to tackle organised crime, which he said threatens the State and its institutions.

However, acknowledging concerns that the proposed laws could be misused to restrict people’s rights, the President said the Government was prepared to consider amendments to address any provisions that could serve purposes beyond their intended objectives.

He said the Government was willing to engage with civil society organisations genuinely concerned about democracy, human rights and fundamental freedoms.

The President added that the Government would consider amendments proposed by the Supreme Court as well as suggestions from civil society groups before the Bills are passed.

He rejected claims that the Government was seeking repressive legislation to retain power, saying the NPP derived its authority from the people’s mandate and had no intention of suppressing the public.

President Dissanayake said the Government had committed to tackling organised crime and the drug trade, and that strengthening the legal framework was necessary to fulfil that commitment.

He reiterated that the proposed laws must have public consent and that the Government would not proceed without consulting relevant organisations and engaging in discussions with them.

SriLankan Airlines Faces Rs. 35.6 Billion Loss Amid Mounting Financial Challenges

From recording a profit of Rs. 4.9 billion in 2008 to accumulating losses exceeding Rs. 630 billion over the years, SriLankan Airlines continues to grapple with financial difficulties, with rising fuel costs and geopolitical tensions adding further pressure on the national carrier.

SriLankan Airlines is facing a severe financial crisis amid the ongoing conflict in the Middle East, instability in West Asia and rising global fuel prices, according to the Ministry of Finance.

The concerns were highlighted in the Ministry’s Mid-Year Fiscal Position Report, which states that the national carrier recorded a loss before tax of Rs. 35.6 billion during the first three months of the 2026/27 financial year.

According to unaudited management accounts submitted to the Ministry, the airline generated revenue of Rs. 82.8 billion during the period, compared to Rs. 62.6 billion in the corresponding period of the previous financial year.

Despite the increase in revenue, expenditure surged by 40.4 percent, rising from Rs. 67.8 billion to Rs. 95.2 billion.

The report identifies a 93 percent increase in aviation fuel costs, driven by the conflict in the Middle East, as the primary reason for the sharp rise in expenditure.

Higher fuel costs and foreign exchange-related pressures contributed to an estimated operating loss of Rs. 12.5 billion during the quarter.

The Ministry further highlighted persistent structural weaknesses, liquidity constraints, high maintenance costs and the airline’s substantial debt burden as major challenges affecting its financial sustainability.

The Government has also had to intervene to address the airline’s financing requirements. Following the restructuring of a 175-million-dollar loan, a restructured banking liability of 126.5 million dollars was transferred to the Government’s debt stock on March 20. A further 30 million dollars was provided to meet the airline’s short-term financing requirements.

However, the airline’s current financial difficulties are part of a much longer history of losses and controversy.

In 2008, when the Government took control of SriLankan Airlines, the national carrier had recorded an annual profit of Rs. 4,899 million.

The circumstances surrounding the takeover became controversial following allegations that a powerful politician had pressured the airline to delay a scheduled flight from London to Sri Lanka to accommodate his return journey. The airline reportedly refused to comply.

Following the takeover, SriLankan Airlines entered a prolonged period of financial losses.

The airline recorded losses of Rs. 9,996 million in 2009, Rs. 6,034 million in 2010 and Rs. 202 million in 2011. The losses subsequently increased, reaching Rs. 17,208 million in 2012, Rs. 26,857 million in 2013 and Rs. 31,365 million in 2014.

The airline continued to record substantial losses in subsequent years, including Rs. 41,700 million in 2019, Rs. 44,139 million in 2020 and Rs. 49,704 million in 2021.

The financial situation deteriorated further in 2022, when losses reached Rs. 163,583 million, followed by Rs. 71,306 million in 2023.

The cumulative losses incurred by the airline over the years have exceeded Rs. 630 billion.

Management appointments and allegations of irregularities have also remained central to questions surrounding the airline’s decline.

Following the Government takeover in 2008, Nishantha Wickremesinghe, the brother of Shiranthi Rajapaksa, wife of then President Mahinda Rajapaksa, was appointed Chairman of SriLankan Airlines.

Allegations subsequently emerged concerning the management of airline resources and financial decisions during his tenure. Legal proceedings are currently underway over alleged losses associated with that period.

Another key figure who came under scrutiny was Kapila Chandrasena, who was appointed Chief Executive Officer in July 2011.

The J.C. Weliamuna report and audit reports raised concerns about his conduct and financial irregularities within the airline. He was removed from his position following the change of Government in 2015.

However, Chandrasena was reappointed to SriLankan Airlines during the 52-day Government that began on October 26, 2018, when Mahinda Rajapaksa returned as Prime Minister.

The reappointment raised questions given the allegations and concerns that had previously emerged regarding his tenure.

The controversial Airbus deal also became a major issue in investigations into the airline’s financial affairs.

During court proceedings relating to the deal, allegations were presented concerning a payment of Rs. 100 million to Namal Rajapaksa, who is currently in remand custody. The related matters remain subject to legal proceedings.

With losses exceeding Rs. 630 billion over the years, the latest figures once again highlight the financial challenges facing SriLankan Airlines.

While the current crisis has been intensified by rising fuel prices and geopolitical instability, the airline continues to face longstanding structural weaknesses, debt obligations and questions surrounding its management.

The Ministry of Finance’s latest assessment underscores the continuing difficulty of making the national carrier financially sustainable, with the burden of its financial challenges extending beyond the airline itself to the Government and, ultimately, the public.

The Ministry’s report also highlights the wider financial exposure arising from the airline’s difficulties, with continued Government assistance raising concerns about the burden on public finances.