Sri Lanka seeks buyers for white elephant airport

Sri Lanka’s government on Sunday 26) issued a call for investments in a currently loss-making airport, after a 30-year lease agreement with an Indo-Russian joint venture failed to take off.

Mattala Rajapaksa International Airport, built with Chinese loans near a wildlife sanctuary on the island’s southern coast, has no regular flights.

The small airport has failed to generate enough revenue to cover even electricity bills since opening in 2013, and has been a running sore on state coffers.

Calling for expressions of interest from investors, the government said the facility offers “untapped potential for growth opportunities… for exotic tourism development and strategic investment”.

In 2024, the Sri Lankan government announced it had awarded a 30-year lease to a joint venture between India’s Shaurya Aeronautics and Russia’s Airports of Regions Management Company, but the plan never materialised.

The airport is named after former president Mahinda Rajapaksa, who borrowed heavily from China for infrastructure projects that quickly became commercial failures.

Debts to China are partly blamed for an unprecedented financial crisis that prompted Sri Lanka to default on its US$46 billion foreign debt in 2022.

Since receiving an International Monetary Fund bailout early the following year, Sri Lanka has sought to privatise a host of unprofitable state-owned enterprises, with no success.

The Mattala airport is located on a migratory bird route, with several aircraft forced to ground after striking airborne fowl.

At one point, Sri Lanka’s military deployed hundreds of troops to remove deer, wild buffalo and elephants from the runway so operations could continue.

The airport is regarded as an alternate destination in case of bad weather at the country’s main international gateway in the capital Colombo, a half-hour flight away.

Several cargo carriers and some charter aircraft operate via Mattala, but the revenue is insufficient for the facility’s upkeep, according to official reports.

In 2017, unable to repay a large Chinese loan, Sri Lanka allowed China Merchants Port Holdings to take over the Hambantota port, near Mattala.

The deal, which granted the Chinese company a 99-year lease, fuelled fears over Beijing’s use of “debt traps” to exert influence.

(AFP)

Missing $ 2.5 m Treasury funds: 4 senior Finance Min. officials suspended

The Government has suspended four senior officials of the Ministry of Finance – two from the Public Debt Management Office (PDMO) and two from the External Resources Department (ERD) – pending a disciplinary inquiry into a cyber fraud that resulted in the diversion of $ 2.5 million.

The funds had been allocated for an external debt repayment to an Australian creditor.

According to preliminary findings, the payment had been redirected after unauthorised access had been gained to the email system of the ERD.

The incident is now under investigation by multiple agencies, including the Criminal Investigation Department (CID), with support from international counterparts.

Treasury Deputy Secretary Ananda Kithsiri Seneviratne confirmed the positions of those suspended.

“The suspended officials include one Additional Director General and one Director from the PDMO, as well as one Director and one Assistant Director from the External Resources Department,” he said.

He added that the suspensions would remain in effect until the conclusion of the inquiry.

“The duration will depend on the process and a disciplinary inquirer has already been appointed. The inquiry is expected to take some time,” he told The Sunday Morning.

The incident has raised concerns regarding financial controls within the Treasury, particularly in the context of Sri Lanka’s ongoing debt management process. However, officials maintain that the country’s external obligations remain unaffected.

Treasury Secretary Dr. Harshana Suriyapperuma said that the matter had been reviewed in the context of debt servicing commitments.

“We examined whether this situation could be considered a technical default. Based on advice received, Sri Lanka has demonstrated both the capacity and the intention to service its debt by initiating the payment. The diversion occurred due to the actions of third parties. We are also engaging with the relevant creditor in good faith. On that basis, we have been advised that this does not constitute a technical default,” he said.

Investigations are being coordinated by the CID following complaints lodged by the Ministry of Finance. The Financial Intelligence Unit (FIU) of the Central Bank of Sri Lanka (CBSL) and the Sri Lanka Computer Emergency Readiness Team (Sri Lanka CERT) have also been engaged to trace the transaction and identify those responsible.

Authorities are working with Australian counterparts, as the funds were routed through a bank account in Australia.

The Australian High Commission in Colombo has acknowledged the issue and is facilitating coordination between the two countries. Australian authorities have also indicated their awareness of the payment irregularity involving their export credit agency.

The Ministry of Finance said that, alongside the ongoing investigations, steps were being taken to strengthen internal systems and prevent similar incidents. The outcome of the disciplinary inquiry will determine any further administrative action against the suspended officials.

Sri Lanka completes SOP for foreign research vessels: Minister

Sri Lanka will complete the standard of procedure (SOP) for handling foreign research vessels within the next two months, Foreign Minister Vijitha Herath said.

The island nation has dragged the Standard Operating Procedure (SOP) to handle research ships in the past two years after arrivals of Chinese research vessels into the island nation’s shore were strongly opposed by the United States and India citing possible security threat to the Indian Ocean.

“We have finalised the SOP and given it to Attorney General Department,” Minister Hearth told EconomyNext.

Facing international pressure, the previous Sri Lankan government led by Ranil Wickremesinghe imposed a one-year moratorium over foreign research vessels in December 2023.

Since it elapsed in January 2025 indecisiveness has dragged the decision on foreign research vessels, analysts say.

The pressure from India and the U.S., two QUAD members, came after two Chinese research vessels came to the island nation within 14 months.

President Anura Kumara Dissanayake-led government’s cabinet in January 2025 decided to appoint a new committee to review the existing SOP and come up with a new SOP on the visits of all the foreign research ships.

The Committee led by Foreign Minister Herath was to come up with the criteria for SOP, but faced delay.

Sri Lanka has been facing diplomatic challenges in allowing foreign research vessels within its waters due to geopolitical issues related to India and China.

Sri Lanka and China have agreed to sign a memorandum of understanding (MOU) on maritime cooperation amid Indian concerns over Chinese research ships visiting the Indian Ocean.

In April last year, Sri Lanka signed a Defence Cooperation MOU which said both neighbour countries will exchange information in maritime and other domains on mutual consent without elaborating.

Foreign Minister Herath last year said Sri Lanka does not have to take approval from India or inform the neighbour on visit of any foreign vessels. Government officials, however, have said some previous governments have maintained such practices to maintain better relationships with India.

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Seven-day detention order issued on 22 monks arrested with drugs at BIA

The Negombo Magistrate’s Court has issued an order to detain and interrogate for seven days the 22 Buddhist monks arrested at the Bandaranaike International Airport (BIA) in Katunayake with over 110 kilograms of Kush cannabis and Hashish.

The order was issued by Additional Magistrate of Negombo when the arrested monks were produced before the court today and based on a request made by the police.

Meanwhile, the alleged main ringleader, also a Buddhist monk, who is said to have led this group of monks and orchestrated the crime, was arrested today by officers of the Police Narcotics Bureau (PNB) in the Meegahamulla area of Gampaha.

Mahanayake Theros Urge Urgent Action Against Drug Networks Targeting Young Monks

The chief prelates of the three main Buddhist sects have emphasized that security forces must urgently carry out investigations and take legal action against drug networks and drug distributors who are allegedly and systematically recruiting young monks into illegal activities.

Issuing a joint statement, the Mahanayake Theros strongly condemned what they described as an unscriptural and illegal act committed by a group of monk impersonators who misused the Buddhist robe and engaged in drug trafficking.

They further stated that investigations will be conducted into all individuals involved in this act and those found guilty will be expelled from the monastic order.

The statement was signed by the Most Venerable Thibbatuwawe Sri Sumangalabhidhana Maha Thero, Maha Nayaka of the Malwathu Chapter of the Siam Sect; the Gnanarathana Abhidhana Maha Thero, Maha Nayaka of the Asgiri Chapter of the Siam Sect; the Most Venerable Makulawe Wimala Maha Thero, Maha Nayaka of the Ramanna Sect ; and the Most Venerable Karagoda Uyangoda Maithrimurthi Maha Thero, Maha Nayaka of the Amarapura Sect

The statement further notes that all individuals involved in this illegal act, which they say has abused the traditional respect and acceptance given to monks in Sri Lankan society as well as the sacred devotion of Buddhists toward the Buddhist robe, should be duly punished.

It also highlights that this incident once again underscores the need to establish a proper mechanism to investigate such cases and expel from the order those who misuse the Buddhist identity and the robe for unlawful activities.

In addition, they have stated that every young monk should be continuously monitored, and if any conduct against the Sasana is observed, teachers and senior monks must investigate and take steps to guide such young monks towards proper discipline and restraint.

Earlier today, Sri Lanka Police has revealed that the 22 individuals who appeared to be monks, who were arrested with stocks of Kush and Hashish narcotics, will be detained for seven days for questioning, under detention orders.

The suspects are aged between 19 and 28.

The group was apprehended at the Bandaranayake International Airport in Katunayake by officers of the Police Narcotics Bureau (PNB), while attempting to smuggle a massive haul of Kush and Hashish valued at over Rs. 1.1 billion.

The arrests were made based on an intelligence tip-off received by the PNB, as the group arrived at BIA in Katunayake from Thailand.

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Easter victims commemoration: Monks, UN, Vatican urge accountability

Chief Sanganayake of the Amarapura Sect (Southern Sri Lanka), Ven. Omalpe Sobitha Thera said that despite three Presidents having left office and a fourth now in power, and with successive Governments coming and going, the shadow cast by the 2019 Easter Sunday attacks has still not been lifted.

Addressing the gathering at the seventh-year commemoration of the victims of the Easter Sunday attacks at the Kochchikade Shrine yesterday (21), Sobitha Thera said the incumbent Government has been given a golden opportunity to provide proper answers to the mystery that shrouded the 2019 Easter Sunday bombings. He said that the public is eagerly awaiting the revelation of this dark truth.

“That is the task that must be fulfilled by the present Government and the President.” He said that it is the hope of all concerned, including victims and their families, that the President and the Government would deliver on this vital responsibility. Only then, he added, will all those who value peace be able to move forward with a sense of ease.

UN Resident Coordinator, Marc-André Franche said that the Easter attacks of 2019 had shaken the foundations of coexistence and peace in Sri Lanka, “sowing divisions between communities.” He noted that seven years on, families affected by the bombings are still waiting for answers. Accountability, he said, remained incomplete. “This moment, therefore, cannot be only about remembrance, but it must also be about resolve,” he pointed out.

Franche said that the seventh-year commemoration comes at a time when there is renewed momentum to advance the investigations, including the ongoing legal proceedings linked to the attacks. These steps, alongside public commitments by the Government, are important and welcomed, he noted. He said that what mattered now are results.

“Victims of the attacks deserved answers and the completion of the investigative and judicial process so that they could finally find closure. Strengthening and protecting the rule of law must remain central to this process, with due process, a fair trial, and credible and independent judicial proceedings which lead to a clear and credible outcome. Without this, closure for families and confidence in institutions will remain elusive,” he stressed.

He said the UN stood with the families and victims in advocating for a credible and transparent process, which is essential to create conditions for healing and for moving forward with dignity. The investigations into the Easter attacks are one of the many longstanding issues in Sri Lanka where accountability, due process, and the rule of law have been delayed, he observed.

Also, the Apostolic Nuncio to Sri Lanka, Archbishop Andrzej Józwowicz said that the Easter Sunday remembrance is a cry for justice and not vengeance. “Justice that restores trust, that honours truth, and upholds the sanctity of every human life.”

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Trincomalee energy hub back in focus as Sri Lanka deals with fallout from Middle East war -KELUM BANDARA

As the Middle East conflict disrupts global energy markets, the long-dormant Trincomalee Oil Tank Farm project has shifted from a conceptual strategic goal to an urgent national security priority. Following high-level talks during Indian Vice President C.P. Radhakrishnan’s visit, officials emphasized that “no further time can be lost” on the 99-tank complex. The proposed India-Sri Lanka-UAE pipeline and grid integration now represent a critical transition from traditional aid-based relations to a modern, investment-driven energy partnership.

Trincomalee has been identified as a nodal point of cooperation between India and Sri Lanka in the field of energy security. The 1987 Indo–Sri Lanka Accord marked the first formal reference to Indian involvement in the development of the Trincomalee oil tank farm. Trincomalee has been identified as a strategic location because of its deep-sea port.

Later, during the 2002–2004 period, India and Sri Lanka signed agreements allowing Indian Oil Corporation (IOC) involvement in fuel sales and distribution in Sri Lanka. However, this did not lead to the full development of the 99 tanks in the farm. Once again, in 2015, talks were launched for the revival of the project, with plans for expansion. When Indian Prime Minister Narendra Modi addressed the Sri Lankan Parliament during an official visit in 2015, he referred to plans for the development of Trincomalee as a petroleum hub.

Seven years down the line, in 2023, the project took shape when Sri Lanka and India signed a formal agreement to jointly redevelop the Trincomalee Oil Tank Complex. A joint venture company, Trinco Petroleum Terminal Ltd (TPTL), was created.

In it, the Ceylon Petroleum Corporation holds 51 percent and Lanka IOC (a subsidiary of Indian Oil Corporation) holds 49 percent. The agreement covers 61 tanks out of 99 for joint development.

In 2024 and 2025, the project took a new turn when India, Sri Lanka, and the United Arab Emirates (UAE) signed an agreement to lay a pipeline linking Trincomalee with the southern part of India. The project is still in limbo, with little or no tangible progress on the ground.

Now, with Sri Lanka dealing with the fallout of the Middle East war, the country’s energy security has once again come into focus, and the pressing need for the implementation of the Trincomalee petroleum project in a meaningful way is being felt across the board. During the recent visit of Indian Vice President C.P. Radhakrishnan, the matter was discussed.

Indian Foreign Secretary Vikram Misri, who accompanied the Vice President, told a post-discussion press conference on Sunday evening that there was no time to lose on a strategic project such as this, but no timeline could be fixed for its conclusion given its complexity and significant financial requirements.

His remarks came in response to a question in this regard. “It’s a significant project. It’s something you are aware of. We have shared a considerable amount of information on this with Sri Lankan authorities. I can tell you that this was the subject of fairly detailed conversations, even today, between the two delegations at different levels.

One of the points that was made was that progress on this project would have stood in good stead, especially at a time like this when both energy prices and energy availability are becoming difficult issues for several countries around the world, especially in this region,” he said.

“Clearly, there is no further time to lose in making progress on strategic projects such as these. We have not yet established a timeline on this project, but discussions continue, given the fact that it is a complex project with significant financial outlays. It will take some time to finalise all the details,” he added.

He was quick to add that both sides had the opportunity to underline the importance of the project, its strategic nature, and the urgency behind it.

“We very much look forward to working with our Sri Lankan colleagues to take this idea further,” he said.

India and Sri Lanka have seen a transformation in bilateral relations in recent years, with a greater focus on connectivity and integration. Energy connectivity, including the interconnection of the two power grids, is a major component in this regard.

The Indian Foreign Secretary, who once served in Sri Lanka as Deputy High Commissioner, said that India has been emphasizing a shift from the traditional model of partnership between the two countries, dominated by aid and credit-tied assistance, to an investment-driven partnership.

“We have tried to encourage Indian business entities and commercial entities to look at opportunities in Sri Lanka. On that front, I think there has been one significant development recently, which is the investment in Colombo Dockyard,” he said.

It is an investment in a highly strategic sector, given the geographic positioning of Sri Lanka and India.

During the delegation-level talks during the Vice President’s visit, the two sides reviewed ongoing bilateral initiatives, including progress on various development cooperation projects undertaken by India in Sri Lanka. The proposed energy pipeline was also discussed once again.

Energy sector cooperation between India and Sri Lanka is ongoing. India assisted Sri Lanka financially during the economic crisis to secure fuel supplies and has also assured fuel support during the current challenges. The two sides are yet to finalise the commercial model for the execution of the project.

The Trincomalee tank farm was constructed in the 1930s to supply the British Navy across the Indian Ocean and beyond. The facility houses 99 storage tanks. A pipeline that once connected the tanks with the jetty existed in the past, but no trace of it remains today. A feasibility study is needed to locate it.

Proponents of India–Sri Lanka energy connectivity argue that a multi-purpose pipeline will help reduce energy costs for Sri Lanka and strengthen regional energy security.

The Trincomalee energy hub is no longer a matter of strategic vision. It is fast becoming an urgency for execution.

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Sri Lanka Finance Ministry confirms cyber hackers stole funds

Sri Lanka’s Ministry of Finance says cyber hackers gained unauthorized access to the computer system of the External Resources Department and carried out a theft involving a foreign currency payment.

The statement was issued hours after opposition figures alleged that USD 2.5 million in Treasury funds had been diverted during a foreign debt repayment.

In a statement issued today, the Ministry said it had already lodged complaints with law enforcement agencies and relevant institutions over the incident.

The Ministry said the matter relates to a foreign currency payment made in January 2026 and that it had informed the Sri Lanka Computer Emergency Readiness Team and the Computer Crime Investigation Division of the Sri Lanka Police.

Following investigations, complaints were also lodged with the Criminal Investigation Department and the Financial Intelligence Unit of the Central Bank of Sri Lanka.

A preliminary internal inquiry has also been conducted, with necessary action taken and disciplinary proceedings initiated against several officials, the statement added.

The Ministry said it will continue to cooperate with ongoing investigations and provide further updates at an appropriate time, without disrupting current probes. (Newswire)

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Prosecutors Link Suresh Salley to Easter Attack Operations, Say He Was Key Force Behind It

Additional Solicitor General Dileepa Peiris told the Colombo Fort Magistrate’s Court today that retired Major General Suresh Salley, the former Director of the State Intelligence Service, had acted as a key driving force behind the Easter Sunday terrorist attacks.

He further stated that abductions and assaults targeting journalists had also been carried out by a group that operated under the command of Suresh Salley.

Former Director of the State Intelligence Service, retired Major General Suresh Salley, was produced before the Colombo Fort Magistrate’s Court today under tight security provided by the Police Special Task Force, in connection with the ongoing case relating to the Easter Sunday terrorist attacks.

Suresh Salley is the third suspect in the case and was produced before court from detention custody.

Addressing court, Additional Solicitor General Dileepa Peiris stated that the Easter Sunday attacks could not have been carried out within Sri Lanka without organised support, and told court that the third suspect, Suresh Salley, had functioned as the principal operational force behind the attack.

He further said that intelligence officers attached to the Giritale Army Camp, who operated under the suspect’s authority, had been arrested in connection with abductions and assaults, including the disappearance of Prageeth Ekneligoda and attacks on Upali Tennakoon and Keith Noyahr. He told court that all such crimes were carried out by groups operating under the command of the third suspect.

The Additional Solicitor General also informed court that the Easter Sunday attack was the result of long‑term planning carried out over an extended period.

He stated that the prosecution intends to bring those responsible before justice before the eighth anniversary of the Easter attacks.

He referred to a sequence of political developments during the period leading up to the attack, including the end of President Maithripala Sirisena’s term, the 52‑day constitutional crisis, the Supreme Court ruling declaring that crisis unconstitutional, incidents such as the vandalism of Buddha statues in Mawanella, and developments involving Gotabaya Rajapaksa, including his public statements in March 2018. He said these events occurred in parallel with the planning of the Easter attacks.

Dileepa Peiris further told court that obstructions to the investigation have emerged, and that witnesses are facing intimidation.

He alleged that following the previous court hearing, an intelligence officer had visited a witness’s home, after which five hand grenades and a pistol were found at the residence.

He also alleged that six dogs at the house were poisoned, and stated that the weapons had been planted through the Special Task Force.

He told court that although the Sri Lanka Army is a state institution, the Army intelligence units were not assisting the investigation, and that witnesses were being repeatedly pressured.

The Additional Solicitor General further revealed that while held in remand in connection with the Joseph Pararajasingham murder, former State Minister Pillayan had met Shaini, the brother of Zahran, inside prison. He stated that this meeting had taken place with the knowledge of Suresh Salley, citing revelations made by Azad Moulana to Channel 4.

The Magistrate inquired whether a statement had been recorded from Azad Moulana. In response, Dileepa Peiris stated that steps were being taken to obtain a statement from Moulana, who is currently in France, through the French Embassy, using Zoom.

Delivering his observations, the Colombo Fort Magistrate stressed that the investigation was not a game, but a highly sensitive matter, and that the priority was to prove matters beyond reasonable doubt.

The Magistrate said the court was satisfied with the progress of investigations conducted so far and ordered the case to be taken up again on May 6 at 2.00 p.m. He further directed that the suspect currently in detention be produced before court on that date.

Tamil Nadu elections: Banners supporting Vijay, Seeman, Stalin displayed in Jaffna

Banners supporting Tamil Nadu political leaders have been displayed across several areas in Jaffna in connection with the Tamil Nadu Legislative Assembly elections.

As the Tamil Nadu Assembly election is scheduled to be held tomorrow (April 23), all campaign activities officially concluded yesterday evening.

In the 2026 Tamil Nadu Assembly election, the ruling DMK, the opposition AIADMK, the Naam Tamilar Katchi and the Tamilaga Vettri Kazhagam (TVK) led by actor Vijay are among the parties contesting.

Meanwhile, banners featuring images of Seeman, the Chief Coordinator of the Naam Tamilar Katchi, were put up in prominent locations such as the Jaffna Public Library and the District Secretariat, from yesterday evening, expressing support for him.

At the same time, similar campaign banners were also displayed in devaral areas showing support for TVK leader Vijay and the ruling DMK.