Political News

Sri Lanka shadow FM’s high flying air hostess remanded

Our Political Correspondent

Wednesday August 17, 2016 10:13 am

By Our Political Correspondent

Wednesday August 17, 2016 10:13 am

ECONOMYNEXT – A director of shadow foreign minister Namal Rajapaksa’s string of private companies who was remanded till next Monday turns out to be a controversial airhostess of SriLankan airlines who carried out his “special projects.”

Colombo Magistrate Lanka Jayaratne on Tuesday ordered remanding in custody of Miss Nithya Senani Samaranayake till August 22, a day after remanding MP Namal Rajapaksa himself in connection with laundering Rs45 million.

Miss Samaranayake was arrested as she was about to board a SriLankan Airlines flight as an airhostess.

Questions have been raised on how she continues to work for the national carrier despite highly adverse findings against her by the Board of Investigation headed by lawyer J. C. Weliamuna. She was assigned to MP Namal Rajapaksa to carry out “Special Projects”, although there had been no explanation of the exact nature of her work.

In June 2010, Miss Samaranayake was released from the national carrier to work for MP Namal Rajapaksa, but the airline continued to pay her, not only her basic salary, but a "productivity" allowance as well, along with other perks and promotions.

In addition, she was also paid another allowance from the Presidential Secretariat for services rendered to Namal Rajapaksa. Namal’s uncle, Nishantha Wickramasinghe, who headed SriLankan Airlines at the time, later admitted to the Weliamuna commission that the appointment of Miss Samaranayake was "irregular".

Weliamuna report recommended that a sum of over Rs4.2 million paid to Miss Samaranayake will be recovered jointly from her and the then presidential secretary Lalith Weeratunga.

However, the new SriLankan Airlines management does not appear to have taken any notice of the Weliamuna findings.

Here is the full report on Miss Samaranayake in the Weliamuna Board of Inquiry (BoI) findings.

RELEASE OF A CABIN CREW MEMBER ON THE REQUEST OF THE SECRETARY TO PRESIDENT

The BoI observed a release of a Cabin Crew member to the Presidential Secretariat which was irregular, especially since, the said Cabin Crew was purportedly released to work in the Office of MP Namal Rajapakse. Moreover, since the said Cabin Crew member was paid her full salary and half of her productivity payment from SLA, amounting to approximately Rs. 70,500/- per month, in addition to the monthly remuneration of approximately Rs. 87,500/- per month from the Presidential Secretariat, thereby providing a total monthly remuneration of approximately Rs. 158,00/- per month.

OBSERVATIONS:

(i) By letter dated 02nd June 2010, Lalith Weeratunga, the then Secretary to the former President wrote to Manoj Gunawardena, former CEO of SLA, stating that Ms. Nithya Senani Samaranayaka, Senior Cabin Crew member, has been identified for an assignment at the Presidential Secretariat.

There is a note written by Weeratunga dated 01st June 2010 stating that, “This girl is to be appointed to the office of the President’s Secretary as a Special Projects Coordinator. Salary Rs.35,000/- per month, other facilities as appropriate.”

(ii) On 23rd June 2010 she was appointed by the Secretary to the President to the Post of Special Project Coordinator to the office of the Private Secretary to the President, under Article 41.1 of the Constitution.

She was released on the same day by SriLankan Airlines and the release letter state that she will be paid by Sri Lankan basic salary, special premium and tea allowance.

(iii) Since several payments to Ms. Samaranayaka and correspondence originated with the approval of the former Chairman Wickramasinghe, we questioned the former chairman on the release of this employee. Mr. Wickramasinghe’s position was that this lady was released to work with Namal Rajapakse MP and there was nothing he could do, despite him being connected. He admitted that the release of Ms. Samaran ayaka and promotion etc. are irregular.

(iv) It is to be noted that the Management Services Circular No.33 dated 05th April 2007 sets out the criteria for recruitment, remuneration and management of Project staff.

The payment of Rs.35,000/- by the Presidential Secretariat is consistent with a position of Junior Manager (Level D) and the qualifications for Level D is a minimum of Bachelor’s degree of Corporate Membership of a recognized Institution in the relevant field with minimum 2 years’ experience in the required area of specialization.

The BoI requested certain clarifications from the present Secretary to the President and by letter dated 17th March 2015, BoI received a reply through the Chairman of the SLA stating, inter alia, as follows:

a) No reference has been made to the department of Management Service for approval of the Post.

b) No inquiries have been made regarding payment being made by SLA since the Secretary to the President had ordered the payment of allowances.

c) No job description has been provided in respect of personal posts such as Coordinator.

(v) On the material submitted by the Presidential Secretariat, BoI found that Ms. Samaranayaka has been paid in addition to her Salary, a Fuel allowance up to Rs.22,680/- per month and a separate cash payment as a transport allowance of Rs.30,000/- per month.

Upon enquiry, Ms. Samaranayaka stated that MP Namal Rajapakse’s office provided a common transport for her colleagues and herself and that she did not have to expend any money for such transportation and the Fuel and Transport allowance amounting to Rs. 52,680/- per month was for her private use. She further stated that:

(a) There was no identifiable special project that she was attached to.

(b) She was released at the request of Namal Rajapaksa MP whom she know

(c) She could not recollect the names of officers who she had known at the Temple Trees or Presidential Secretariat except Ms. Deepa Liyanage.

(d) Ms. Samaranayaka admitted that she has not signed any attendance register during the entire period of release.

(e) She was unable to describe the exact location where she worked except the fact that it was some location in the Temple Trees and not in the Presidential Secretariat.

(f) As and when Ms. Samaranayaka wanted, she also flew as a Cabin Crew member once to London and mostly to Regional destinations and she did have “recognition” to be on roster. The promotion letter contains a provision that she is required to complete a minimum of 55 hours of flying per month.

(vi) While being ‘full time’ attached to the Presidential Secretariat she received Productivity Allowance from the SLA at the request of the Secretary to the President. She was promoted as the ‘Cabin Service Supervisor’ on 27th March 2014 and the letter issued on the 02ndJuly 2014while serving at the Presidential Secretariat to Grade C4.

On 13th January 2015 she was released back to SLA on her request. Ms. Samaranayaka admitted before us that as she was a political appointee she felt that she was part of the previous government.

(vii) At the Presidential Secretariat, Ms. Samaranayaka as Special Projects Coordinator, her legitimate entitlement, if at all, was limited to the salary of her substantive post plus allowance of 50% of the salary of her current post in the project not exceeding Rs.35,000/-.

It is revealed from the Report dated 17th March 2015 given to the BoI by the Secretary to the President that she has been paid a total of rs. 87,680/- per month consisting of Rs.35,000/- salary plus Rs.22,680/- fuel allowance and Rs.30,000/- transport allowance per month.

(viii) The BoI is of the view that Ms. Samaranayaka was not in fact released to the Presidential Secretariat but released for political work for Namal Rajapaske MP, with the full knowledge of Mr. Lalith Weeratunga and Nishantha Wickramasinghe and therefore the State should not have utilized public funds to make any payments to Ms. Samaranayaka.

(ix) According to paragraph 3 of her appointment letter at the Presidential Secretariat, her post is subject to the Financial. It appears that she was not serving the Government and therefore the actual loss to the government on this questionable remuneration, under Financial Regulation 102, is amounting to Rs. 4,284,460/-.

(x) Apart from the above, the SLA has also paid her salary and allowances for the above mentioned period while considering her as being a full time employee of the Company. BoI has found that SLA has paid her a total sum of Rs.4,133,622/- for the same period as her salary, Special premium. Tea allowance, Productivity allowance, Grooming allowance, Attendance incentive and Duty Fee Commission, which is a violation of the provisions of the Management Services Circular No.33, which is applicable to Government owned Companies.

(xi) On being questioned, Mr. Pradeepa Kakulawala, the Head of Human Resources said that Ms. Samaranayaka’s release and promotion was not in order and he knew that she was released for Namal Rajapakse MP for Tharunyata Hetak. Former Chairman went a step further said she was released for MP Namal Rajapakse.

CONCLUSIONS:

(i) The release of Ms. Samaranayaka to Presidential Secretariat in the circumstances set out above and keeping her in that position with special perks and privileges are illegal, causing a loss to the state.

(ii) Release of Ms. Samaranayaka was a widely known fact but SLA human resources and other divisions kept a blind eye, creating a questionable corporate culture. No steps were taken by any officer, except to intentionally cover up and promote her.

(iii) There is prima facie material to investigate into for criminal liabilities of the transaction including possible misappropriation and aiding and abetting a crime based on possible criminal misappropriation/fraud.

RECOMMENDATIONS:

1] The entire payments (salary and other emoluments) made to Ms. Samaranayaka be recovered jointly from Ms. Samaranayaka, Mr. Lalith Weeratunga and those who approved such payments. Steps should be taken under FR 102 of the Financial Regulations. Those who are responsible, at the Secretariat, for authorizing, approving and certifying the above unlawful payments should be dealt with according to law and under FR 105(4).

2] SLA should take appropriate actions against the officers who authorised the promotion of Ms. Samaranayaka and payments, made after her release on full time basis.

3] Criminal Investigation should be considered in respect of, inter alia, fraudulent payments/authorizations and offences against public property.

Bonds & Forex

Sri Lanka rupee closes at 332.53/59 to US dollar spot, bond yields edge up

Monday November 9, 2026 5:05 pm

ECONOMYNEXT – Sri Lanka’s rupee closed at 332.53/59 to the US dollar spot on Monday, from 332.55/60 the previous day, while bond yields closed higher, dealers said.

A bond maturing on 15.09.2029 closed at 190/98 percent, up from 10.85/95 percent.

A bond maturing on 01.08.2030 closed at 11.07/12 percent, up from 11.05/10 percent.

A bond maturing on 01.02.2031 closed at 11.30/40 percent, up from 11.10/15 percent.

A bond maturing on 15.12.2032 closed at 11.65/70 percent, up from 11.55/65 percent.

A bond maturing on 01.11.2033 closed at 11.95/12.00 percent, up from 11.90/95 percent.

A bond maturing on 15.10.2034 closed at 12.10/15 percent, up from 12.05/12 percent.

A bond maturing on 15.08.2036 closed at 12.40/50 percent, up from 12.30/40 percent. (Colombo/Nov9/2026)

Markets

Sri Lanka stocks close up 1.37-pct, banks lead turnover

Monday November 9, 2026 3:29 pm

ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange closed up on Monday, CSE data showed, with the benchmark All Share Price Index moving up 1.37 percent.

The ASPI was up 291.72 points at 21,531.37, while the more liquid S&P SL20 was up 1.67 percent, or 100.96 points, at 6,146.34.

Positive contributors to the ASPI were Commercial Bank of Ceylon (up 2.86 percent at 216.00 rupees), Hatton National Bank (up 1.52 percent at 399.75 rupees), Asiri Hospital Holdings (up 12.86 percent at 31.60 rupees), Tokyo Cement Company (up 5.22 percent at 84.70 rupees), and Access Engineering (up 3.93 percent at 81.90 rupees).

Carson Cumberbatch (down 4.24 percent at 712.00 rupees), Richard Pieris and Company (down 2.43 percent at 28.10 rupees), LOLC Holdings (down 0.62 percent at 400.00 rupees), Renuka Holdings (down 2.63 percent at 37.00 rupees), and Chevron Lubricants Lanka (down 0.61 percent at 204.25 rupees) were top negative contributors.

Market turnover was 3.33 billion rupees. The S&P/CSE Banks Industry Group led turnover with 667.76 million rupees.

The session saw heavy crossings, according to Raynal Wickremeratne, Head of Research and Strategy at NDB Securities. Significant crossings included Keells (23 million rupees), Distilleries Company (27.7 million rupees), Sunshine Holdings (30.6 million rupees), Commercial Bank (32.4 million rupees), Ceylon Tobacco Company (35.6 million rupees), Hatton National Bank (39.5 million rupees), Prime Lands (40.5 million rupees), and HAS Holdings (41.5 million rupees).

In corporate news, Hayleys Retail Holdings Ltd announced it has partnered with supply chain software provider Blue Yonder to build and scale an AI-native grocery supermarket chain across Sri Lanka. (Colombo/Nov09/2026)

Information Technology

Sri Lanka’s Hayleys Retail to launch supermarket chain with Blue Yonder

Monday November 9, 2026 3:12 pm

ECONOMYNEXT — Hayleys Retail Holdings Ltd has selected supply chain software provider Blue Yonder to build its grocery retail operations from the ground up, the two companies said in a joint statement.

Hayleys Retail, a member of Sri Lanka’s diversified conglomerate Hayleys Group, plans to open several stores in the near future to serve consumers across the country. The agreement marks Blue Yonder’s first retail customer in Sri Lanka.

“Our entry into supermarket retail is about bringing that same commitment to quality and reliability closer to everyday Sri Lankan consumers,” Mohan Pandithage, Chairman and Chief Executive of Hayleys PLC said.

“With Blue Yonder, our teams will have AI-driven insight to deliver a seamless, consistent shopping experience across every store,” he said.

Hayleys, which accounts for approximately 5 percent of Sri Lanka’s export income and operates across 17 business sectors, is entering the large-scale supermarket space by drawing on its group strengths in manufacturing, logistics, and services.

The company selected Blue Yonder to connect its data across merchandising and shelf space, deploy artificial intelligence agents to catch operational issues early, and scale its business into a national network without changing platforms.

The rollout will begin with merchandise operations to manage suppliers, items, costs, and pricing, followed by machine learning capabilities to forecast demand and balance store inventory during seasonal peaks.

“Hayleys Retail is choosing one where AI is the foundation rather than an add-on—connected data and agentic AI built into core merchandising operations, and planning that learns as the business grows,” Antonio Boccalandro, President, APAC at Blue Yonder said.

The retailer plans to use the platform to automate routine store tasks and adjust inventory according to real-time sales and local market trends as its store footprint grows. (Colombo/Nov09/2026)

Stocks & Companies

Sri Lanka’s Citrus Leisure extends Lotus Tower management pact

Monday November 9, 2026 1:16 pm

ECONOMYNEXT – Sri Lanka listed hospitality firm Citrus Leisure said it has extended an agreement to manage consumer-facing and entertainment spaces at the Colombo Lotus Tower, which includes revolving restaurant Blue Orbit, until June next year.

The initial agreement signed between Citrus Leisure and Colombo Lotus Tower Management Company (Private) Limited (CLTMC) is due to expire on December 11.

“The Board of Directors of CLTMC at meeting held on 2nd November 2026 has resolved to extend the term of the Management Agreement and continue the existing Management Agreement until 30th June 2027, to which the company has given its concurrence,” the company said in a market filing.

Citrus Leisure Plc opened its revolving restaurant at the Lotus Tower in December 2023.

The company signed a 3-year agreement with CLTMC in May 2023 to provide services in the management of (l) the banquet hall 1 on the 25th floor, (2) the banquet hall 2 on the 26th floor, (3) the revolving restaurant on the 27th floor, (4) the 6 suites situated on the 28th floor and the kitchen in the basement floor of the Colombo Lotus Tower.

The 350-meter or 1,150-feet tower, the tallest in South Asia, was built at a cost 104.3 million US dollars with 80 percent of the money borrowed from Exim Bank of China.

Located in the commercial heart of Colombo, the tower has been called a symbolic landmark of Sri Lanka as well as a colossal white elephant and has been mired in controversy for years. (Colombo/Nov9/2026)

Markets

CIC Holdings Sept quarter net profit rises 20-pct to Rs1.7bn

Monday November 9, 2026 11:50 am

ECONOMYNEXT — Sri Lanka conglomerate CIC Holdings recorded a net profit of 1.66 billion rupees for the quarter ended September 30, rising 20.3 percent from 1.38 billion rupees in the same quarter last year, interim accounts showed.

The group posted basic earnings per share of 0.87 rupees for the September quarter, up from 0.73 rupees a year earlier.

Quarterly revenue grew 3.4 percent to 20.89 billion rupees from 20.20 billion rupees, supported by broad-based growth across industrial solutions, livestock, and healthcare segments, which counterbalanced relative demand moderation in agricultural inputs.

Cost of sales rose 5.3 percent to 15.20 billion rupees, outpacing revenue growth and causing gross profit to contract marginally by 1.2 percent to 5.68 billion rupees.

Results from operating activities dropped 7.3 percent to 2.66 billion rupees from 2.87 billion rupees, impacted by higher operating overheads.

Selling expenses expanded 6.8 percent to 2.15 billion rupees, and general and administrative expenses climbed 5.8 percent to 1.07 billion rupees, while other operating income dropped 29.6 percent to 117.40 million rupees.

However, operating profits were cushioned by an impairment reversal on trade receivables of 85.83 million rupees, turning around from an impairment provision of 23.38 million rupees in the corresponding quarter last year.

Net finance costs climbed 35.4 percent to 712.25 million rupees from 526.01 million rupees.

The increase was driven by a 30.8 percent rise in finance expenses to 771.46 million rupees, primarily reflecting higher interest expenses on loans to finance elevated working capital and inventory requirements.

The quarter’s bottom line was strongly bolstered by CIC’s equity-accounted investment in John Keells Holdings PLC (JKH).

Share of profit from equity-accounted investees surged more than fourfold to 590.50 million rupees from 257.87 million rupees, driven by JKH’s strong profit expansion during the period.

The group also recognized a gain on bargain purchase of 55.59 million rupees during the quarter resulting from additional share purchases in JKH where the proportionate net asset value exceeded acquisition cost, compared to no such gain a year earlier.

With associate income gains offsetting operating margin contraction and higher borrowing costs, group pre-tax profit held virtually flat at 2.59 billion rupees, down 0.11 percent.

Income tax expense fell 29.4 percent to 606.24 million rupees from 858.71 million rupees, driving total group profit for the period up 14.1 percent to 1.98 billion rupees.

Total group assets stood at 108.58 billion rupees as of September 30, up from 99.75 billion rupees at the end of March 2026.

Group net asset value per share increased to 25.52 rupees from 22.10 rupees a year earlier.

CIC Holdings’ ordinary voting shares closed at 27.80 rupees at the end of September.(Colombo/Nov09/2026)