Category: News

Kumaraswamy Pushpakumar, better known by his alias Iniya Bharathi, was arrested on 6 July alongside a close associate in a major breakthrough linked to a string of serious crimes committed during Sri Lanka’s post-war period. A prominent figure in Eastern Province politics and a former Eastern Provincial Council member, Bharathi also served as the Ampara District organiser of the Tamil Makkal Viduthalai Pulikal (TMVP), a party formed from a breakaway faction of the LTTE.

The arrest was carried out by the Criminal Investigation Department (CID) based on new information uncovered during the interrogation of TMVP leader and former State Minister Sivanesathurai Chandrakanthan, alias Pillaiyan, who has been in detention under the Prevention of Terrorism Act (PTA) since April this year.

Both suspects were taken into custody in Thirukkovil and Sandiveli by the CID’s Homicide and Organised Crime Investigation Unit. Investigations revealed that Bharathi, now 45, was a former LTTE member who defected in 2004 to join the Karuna Amman-led faction. He is believed to have operated an armed camp in Thirukkovil before moving into mainstream politics. In 2007 and 2008, he held the post of Presidential Coordinating Officer for the Ampara District and went on to serve as a Provincial Councillor from 2012 to 2015.

According to police, Bharathi and his associate are suspected of being involved in a series of grave crimes in the Eastern Province between 2005 and 2008. These include:

The murder of Tamil National Alliance (TNA) MP Ariyanayagam Chandranehru and five others in Pulliyankulam, Welikanda on 7 February 2005.
The killing of Johnson Jayakanthan, alias Sindhujan, on 9 May 2007.
The assassination of Thirukkovil Pradeshiya Sabha Chairman Pillainayagam Udayakumar on 28 June 2007.
The abduction of Pavie Sivananthan Alagurasah in Thirukkovil on 27 July 2007.
The double murder of Grama Niladhari officers Nagarasa and Kanaga Anandhi in Kalmunai on 20 April 2008.
The abduction and killing of Pandith Thirumal Thiruvelvam in Vinayagapuram on 25 September 2008.
The shooting and murder of Pachchi Rasaiya Kopulan on 21 November 2008 in Vinayagapuram, during which his mother was seriously wounded.
Iniya Bharathi and his accomplice are also suspected of involvement in an arson attack on the Akkaraipattu Magistrate’s Court Complex in December 2022.

The Police Media Division confirmed that Bharathi had been previously named in the Lessons Learnt and Reconciliation Commission (LLRC) report and other investigative records as having directly participated in killings, enforced disappearances, torture, and firearm-related crimes during the war-era in the Eastern Province.

The government, which scrapped the Adani renewable energy projects, is now under duress to reimburse a few million U.S. dollars incurred by the company here initially, Daily Mirror reliably learns.

India’s Adani Green Energy informed the Sri Lanka government earlier that it would withdraw from two proposed wind power projects. The company took that decision after Sri Lanka, under the new government led by the National People’s Power ( NPP) , sought to lower the cost of the power generated. The NPP government disagreed with the cost agreed upon by the last government which struck the project with Adani.The company was to build a wind power plant project in the Mannar and Pooneryn towns in the northern province, investing $442 million.

The project was expected to add at least 350 MW to the national grid by 2025.The company authorities sent a letter to the government authorities in May , this year asking for reimbursement of expenses it made initially for research and investigation along with the Sustainable Energy Authority (SEA) in Sri Lanka.

However, the company has not yet specified the exact amount which is to be assessed covering all expenses including US $ 3 million paid to the SEA.The Power and Energy Ministry is yet to make a decision on the reimbursement. Asked about the current status , a top official said that legal advice would be sought in this regard .

“If there is any payment, it will be done only through Cabinet approval,” he said.

The much-anticipated electricity grid connectivity project between Sri Lanka and India is progressing steadily, with the State-run Ceylon Electricity Board (CEB) set to make key policy decisions following the submission of the joint technical committee’s feasibility report.

According to CEB Chairman and Energy Ministry Secretary Prof. Udayanga Hemapala, technical experts from both countries have completed site visits and thorough evaluations, with the Government now awaiting the detailed findings.

As highlighted in the latest Long-Term Generation Expansion Plan (LTGEP) 2025-2044 issued by the CEB, the interconnection project has a long history of collaborative studies and planning.

The concept originated in 2002 with a pre-feasibility study by Nexant, supported by the United States Agency for International Development (USAID).

This was followed by an updated review by India’s PowerGrid in 2006 and a Memorandum of Understanding (MOU) signed by both Governments in 2010 to conduct an in-depth feasibility study.

Joint efforts by the CEB and India’s Power Grid Corporation have since analysed multiple technical, economic, and regulatory aspects, considering various route options including overhead lines and undersea cables.

The Asian Development Bank (ADB) also funded an economic and financial feasibility assessment to support the project.

While both synchronous and asynchronous grid interconnections were initially considered, the fourth Joint Working Group meeting had favoured an HVDC link for its controlled power flow and enhanced system stability.

The finalised plan includes a ±320 kV, 2×500 MW HVDC link using Voltage Source Converter (VSC) technology, running from Madurai to Mannar. The technology also provides dynamic reactive power support, critical for integrating renewable energy sources and maintaining grid stability.

In 2023, a significant decision was made to shift the HVDC termination point on the Sri Lankan side from New Habarana to Mannar, recognising the additional benefits of harnessing wind energy resources in the Mannar region. This change also prompted further analysis of undersea cable options due to the complexities of operating and maintaining overhead lines over the sea.

The project will be implemented in two phases, with the first phase targeting 500 MW capacity at an estimated cost of $ 1,225 million. This phase will use undersea cables designed to eventually support up to 1,000 MW.

The second phase, which will add a further 500 MW capacity, is planned based on future demand for power exchange between the two countries, as stated in the LTGEP.

Ampara District Organizer of the Tamil Makkal Viduthalai Pulikal party and former member of the Eastern Provincial Council K. Pushpakumar alias Iniya Bharathi has been arrested.

He was arrested over the abduction and disappearance of the former Vice Chancellor of the Eastern University Prof. Subramaniyam Ravindranath.

Sivanathurai Chandrakanthan, alias Pillayan, the leader of the Tamil Makkal Viduthalai Pulikal (TMVP) and former State Minister, was arrested by the Colombo Criminal Investigation Department at his office in Batticaloa on April 8, over this incident.

He was later detained for 3 months under the Prevention of Terrorism Act.

Iniya Bharathi, also known as Kumaraswamy Pushpakumar, was arrested based on information revealed during the interrogation of Pillayan.

The Department of Railways has taken steps to amend train schedules on the Northern Line following requests made by the public.

Due to the high demand, the Intercity Express train, which previously operated only on weekends, will now run daily between Mount Lavinia and Kankesanthurai starting tomorrow (07), according to the Department of Railways.

Furthermore, the departure time of the “Yaal Devi” train from the Colombo Fort station to Kankesanthurai, previously at 5:45 a.m., has been revised.
Accordingly, the Department of Railways announced that the new departure time from Colombo Fort will be 6.40 a.m. starting tomorrow.

Passengers who reserved seats on the “Yaal Devi” train a month in advance have also been advised to note the new departure time of 6.40 a.m.

The Criminal Investigation Department (CID) has intensified its investigation into the controversial organic fertiliser transaction between Sri Lanka and the Chinese company Qingdao Seawin Biotech Group Co. Ltd., which led to a financial loss of $ 6.9 million for the country.

A senior CID official, speaking to The Sunday Morning on condition of anonymity, confirmed that investigations into the alleged irregularities in the fertiliser procurement were actively underway.

However, the official noted that no further information could be released at this stage as it could affect the integrity of the ongoing inquiry.

The controversy dates back to November 2021 when Sri Lanka’s National Plant Quarantine Service (NPQS) rejected a consignment of organic fertiliser imported from Qingdao Seawin Biotech, claiming the presence of harmful bacteria in the samples.

The Chinese company disputed the findings and demanded third-party testing. The rejection of the shipment led to a standoff between the supplier and the Sri Lankan authorities, with the Chinese company seeking $ 8 million in damages and initiating arbitration proceedings in Singapore.

Despite rejecting the shipment, the Sri Lankan Government had eventually agreed to settle the dispute by paying $ 6.9 million to the Chinese supplier. The payment was made by the State-owned People’s Bank through a letter of credit after a court order barring the transaction was removed.

The decision to make the payment despite the rejection of the fertiliser consignment drew widespread public criticism and concern from legal and agricultural experts.

In 2022, the Attorney General’s Department had advised the Government to initiate legal action to recover the losses incurred from the failed fertiliser deal. However, The Sunday Morning reliably learns that no such legal proceedings have been filed against Qingdao Seawin Biotech to date.

Inquiries made in 2023 revealed that the Sri Lankan authorities had formally informed the company of their requirement to either refund the amount or supply chemical fertiliser as compensation.

The Chinese company, however, had responded that it did not handle chemical fertiliser and had offered instead to supply another shipment of organic fertiliser of the same type as originally contracted.

A senior official from the Ministry of Agriculture in 2023 disclosed that, given the sensitive diplomatic nature of the matter, the issue had been referred to the Ministry of Foreign Affairs for bilateral discussions between the two Governments and that the Agriculture Ministry had sought guidance from the Cabinet by submitting a formal Cabinet paper seeking instructions on how to proceed with the settlement.

The official also added that although the ministry could act under the terms of the existing settlement agreement, it sought explicit Cabinet approval to ensure procedural compliance and avoid potential complications in the future.

Also, it was revealed that at one point, Qingdao Seawin Biotech had indicated a willingness to provide chemical fertiliser for part of the compensation, although no such arrangement had been finalised.

Despite the years that have passed since the controversy first erupted, numerous attempts by The Sunday Morning to obtain responses from the Ministry of Foreign Affairs have been unsuccessful.

In 2021, plans were made to import 96,000 MT of fertiliser, but the first shipment was rejected under the Plant Protection Act after being found to be contaminated with harmful bacteria. Despite this, 75% of the payment was made in advance.

The deal sparked widespread protests from farmers and contributed to reduced agricultural yields. In addition to the financial loss, indirect and unquantified economic impacts include crop losses and potential legal liabilities.

The National Audit Office (NAO) has called for legal action against responsible officials and the supplier, and urged recovery of the funds lost due to poor oversight and premature payment without securing financial guarantees.

When contacted by The Sunday Morning, Ministry of Agriculture Secretary D.P. Wickremasinghe confirmed that the CID was currently conducting investigations into the matter.

However, he acknowledged that aside from these ongoing inquiries, the Government was yet to take any formal steps to pursue compensation for the financial losses incurred.

He stressed that no legal action or claims had been initiated at this stage and the focus remained primarily on the CID’s investigation.

The International Monetary Fund (IMF) has warned that while Sri Lanka’s economic outlook is positive, downside risks have increased.

Kenji Okamura, Deputy Managing Director and Acting Chair said that the government should continue to implement governance reforms and advance trade-facilitation reforms to boost export growth and diversification.

On July 1, 2025, the Executive Board of the International Monetary Fund (IMF) completed the Fourth review under the 48-month Extended Fund Facility (EFF) Arrangement, allowing the authorities to draw SDR254 million (about US$350 million). This brings the total IMF financial support disbursed so far to SDR1.27 billion (about US$1.74 billion).[1]

The EFF arrangement for Sri Lanka was approved by the Executive Board on March 20, 2023 (see Press Release No. 23/79) in an amount of SDR 2.286 billion (395 percent of quota or about US$3 billion). The program supports Sri Lanka’s efforts to durably restore macroeconomic stability by (i) restoring fiscal and debt sustainability while protecting the vulnerable, (ii) safeguarding price and financial sector stability, (iii) rebuilding external buffers, (iv) strengthening governance and reducing corruption vulnerabilities, and (v) enhancing growth-oriented structural reforms.

The Executive Board reviewed a report from the Managing Director on the inadvertent provision of inaccurate data by Sri Lanka on the ceiling of the central government’s stock of expenditure arrears. The under-reporting of the arrears stock identified through a detailed analysis of budget line appropriations gave rise to noncomplying purchases and a breach of Sri Lanka’s obligations under Article VIII, Section 5. The authorities have worked openly and closely with IMF staff to provide corrected data and have undertaken several corrective measures related to the clearing and reporting of arrears. They are also committed to improving reporting and data verification practices going forward in line with IMF technical assistance. Based on these actions, the Executive Board approved the authorities’ request for waivers of non-observance.

The authorities have consented to the publication of the Staff Report prepared for this consultation.[2]

Following the Executive Board’s discussion, Mr. Kenji Okamura, Deputy Managing Director and Acting Chair, issued the following statement:

“Sri Lanka’s performance under the Fund-supported arrangement is generally strong with some implementation risks being addressed. Reforms are bearing fruit, with economic growth strengthening, inflation remaining low, reserves accumulating, and fiscal revenues improving. The debt restructuring process is nearing completion. The economic outlook is positive, but downside risks have increased. In case shocks materialize, the authorities should work closely with the Fund to assess the impact and formulate policy responses within the contours of the program. Steadfast program implementation will be crucial.

“Sustained revenue mobilization is critical to restoring fiscal sustainability and creating fiscal space. Strengthening tax exemption frameworks, boosting tax compliance, and enhancing public financial management to ensure effective arrears management are important. Further improving the coverage and targeting of social support to the vulnerable is also necessary. A smoother execution of capital spending within the fiscal envelope would help foster medium-term growth. The restoration of cost-recovery electricity pricing and the operationalization of automatic electricity tariffs adjustment are commendable and should be maintained to contain fiscal risks.

“The progress to advance the restructuring of Sri Lanka’s debt is noteworthy. Timely finalization of bilateral agreements with remaining official and commercial creditors is a priority.

“Monetary policy should continue to prioritize price stability, supported by sustained commitment to eliminate monetary financing and safeguard central bank independence. Greater exchange rate flexibility and gradually phasing out administrative balance of payments measures remain critical to rebuild external buffers and economic resilience.

“Resolving non-performing loans, strengthening governance and oversight of state-owned banks, and improving the insolvency and resolution frameworks are important to revive credit growth and support private sector development.

“Structural reforms are crucial to unlock Sri Lanka’s potential. The government should continue to implement governance reforms and advance trade-facilitation reforms to boost export growth and diversification.”

Following the Executive Board’s discussion, Mr. Kenji Okamura, Deputy Managing Director and Acting Chair, issued the following statement:

“The Executive Board of the International Monetary Fund (IMF) reviewed noncomplying purchases made by Sri Lanka under the 2023 Extended Arrangement under the Extended Fund Facility (“EFF”), as well as a breach of obligations under Article VIII, Section 5. The noncomplying purchases arose as a result of the provision of inaccurate information by the authorities on the stock of expenditure arrears at the first, second, and third reviews under the EFF.

“The inaccuracies in information provided to the IMF were inadvertent and arose because of weaknesses in the timely reporting of arrears by line ministries to the Ministry of Finance, as well as a misunderstanding by the authorities of the definition of “arrears” under the Technical Memorandum of Understanding.

“The Executive Board positively considered the authorities’ corrective actions, the fact that arrears repayments will be accommodated within the existing fiscal envelope, and the authorities’ commitment to improving public financial management procedures in line with the new PFM law, to reduce the risk of accruing arrears or inaccurate reporting of information going forward. In view of the above, the Executive Board agreed to grant waivers for the nonobservances of the quantitative performance criterion that gave rise to the noncomplying purchases and decided not to require further action in connection with the breach of obligations under Article VIII, Section 5.”