Corruption

Sri Lanka sees high-profile arrests amid pressure on government to deliver

Sunday May 25, 2025 12:00 pm

ECONOMYNEXT – Amid public grumbling over delay in Sri Lanka President Anura Kumara Dissanayake government’s election promises on political accountability, the authorities have initiated a series of arrests targeting prominent political figures accused of corruption and misappropriation.

The crackdown underscores a commitment to addressing long-standing issues of governance and restoring public trust, analysts say.

President Dissanayake’s ruling National People’s Power before the last year’s presidential election promised investigations into a raft of past alleged corrupt deals, murders, and Easter Sunday attack before holding the wrong doers accountable.

However, delays in fulfilling such promises resulted in public grumbling while opposition parties started a campaign to discredit the government for lying in its election campaign.

Under pressure, the authorities under the new government have been able to arrest at least seven key political figures including top ex-Cabinet Ministers and a former Chief Minister over various charges.

The arrests have led to mixed reactions. Many people view the actions by the authorities as necessary steps toward eradicating corruption; some supporters of the accused argue that the moves are politically motivated.

These developments mark a pivotal moment in Sri Lanka’s political landscape, reflecting a broader push for integrity and accountability within the nation’s governance structures.

Hera are the details of arrests:

Keheliya Rambukwella: Counterfeit Drug Scandal

Former Health Minister Keheliya Rambukwella, who was arrested in February 2024 over allegations of procuring counterfeit intravenous immunoglobulin (IVIG) drugs during his tenure, has been detained amid the ongoing court cases over the scandal.

The scandal involved bypassing standard tender procedures, leading to the importation of substandard medications.

Investigations revealed that forged documents were used for customs clearance, resulting in a misappropriation of funds amounting to 130 million rupees.

Last week, former cricketer Ramith Rambukwella, the only son of the former health minister also was remanded by the Commission to Investigate Allegations of Bribery and Corruption (CIABOC)

Prasanna Ranaweera: State Land Misuse

Former State Minister Prasanna Ranaweera was remanded May 7, 2025 after evading arrests for months for allegedly facilitating the unauthorized sale of state-owned land in Kiribathgoda.

The land, designated for public construction, was reportedly sold to a private buyer, violating the Public Property Act.

Ranaweera had been evading arrest and is an accused in the Kiribathgoda state property fraud case in which former Minister Mervyn Silva is also accused.

Mervyn Silva: Land Deal

Former Minister Mervyn Silva has also been implicated in the state land misuse case alongside Prasanna Ranaweera – a fraudulent scheme related to a plot of land in Kiribathgoda.

The land, measuring 6 acres, 3 roods, and 11 perches, was transferred to the Kelaniya Divisional Secretariat for the new town plan.

The Kelaniya Pradeshiya Sabha was responsible for developing and implementing the town plan, which included allocating 0.2137 hectares for a children’s park and a water way.

It was uncovered that Mervyn Silva, along with three others, forged documents to sell the land for 3 million rupees.

Mahindananda Aluthgamage: Substandard Fertilizer Import

Former Agriculture Minister Mahindananda Aluthgamage under Gotabaya Rajapaksa Presidency was remanded until May 26 by the Colombo Magistrate’s Court in connection with the controversial payment made to a Chinese firm for a consignment of substandard organic fertiliser in 2021.

His arrest warrant was issued upon a request made by the CIABIC, pertaining to his alleged involvement in the procurement of substandard organic fertiliser during his tenure as Minister of Agriculture in the previous administration.

Chamara Sampath Dassanayake: Financial Misconduct

Current Member of Parliament Chamara Sampath Dassanayake was arrested in March 2025 on charges stemming from his tenure as Chief Minister of Uva Province.

He faces allegations of misappropriating 2.5 million rupees by redirecting funds from state banks to his foundation and personally receiving 1 million rupees intended for the provincial council.

Additionally, he is accused of causing a 23 million rupee loss to the government by withdrawing all fixed deposits of the provincial council after a bank refused his request for additional funds.

S.M. Ranjith: Fuel Allowance Misappropriation

Former North Central Province Chief Minister S.M. Ranjith and his private secretary Shanthi Chandrasena — the spouse of former Minister S.M. Chandrasena — were sentenced for 16 years of rigorous imprisonment after being found guilty of corruption charges.

Both convicts were also ordered to pay a fine of Rs. 200,000 each in addition to their prison charges.

The two accused were convicted on charges filed by CIABOC. The case was initiated based on allegations that as the Chief Minister of the North Central Province, Ranjith facilitated his private secretary unlawfully obtaining a fuel allowance of 2.68 million rupees for more than two year between September 2012, and December 2014.

Despite already receiving a salary-based fuel allowance, the second accused allegedly obtained an additional fuel allowance for her official vehicle through undue influence. The Bribery Commission prosecuted the case based on these charges.

S.M. Ranjith is a brother of former Minister of Lands S.M. Chandrasena, a powerful cabinet minister under both former presidents Mahinda and Gotabaya Rajapaksa.

Duminda Dissanayake – Using Illegal Weapon

Former Minister Duminda Dissanayake was arrested over the detection of an assembled T-56 weapon without a licence under the Firearms Act.

The arrest came after police found that the particular weapon with gold plate had been assembled, and one of the former minister’s employees had handed it over to a woman in the neighbourhood. (Colombo/May 25/2025)

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)