The Sri Lankan government is seeking fresh investment to manage the Mattala Rajapaksa International Airport and establish direct and indirect aviation-related businesses there. This initiative includes a renewed consideration of a joint Indian-Russian venture proposal. The plan is reportedly structured to operate under seven distinct divisions.
This move follows a previous Cabinet decision in April of last year to grant Indian and Russian companies control of the Mattala airport for 30 years.
Meanwhile, recent disclosures have revealed a concerning financial situation for the national carrier, Sri Lankan Airlines. According to the Chairman of the Committee on Public Finance, Dr. Harsha de Silva, 31 out of the airline’s 45 destinations are currently loss-making. Sri Lankan Airlines incurred a loss of 3.4 billion Rupees in the first quarter of this year, despite a decrease in both passenger revenue and fuel costs.
Further details indicate that the airline is burdened with $978 million in liabilities and 51 billion Rupees in domestic debt. Additionally, approximately $200 million in outstanding interest payments led to a recent bond restructuring.
This parallel development of seeking new investment for Mattala Airport while grappling with significant losses at Sri Lankan Airlines raises questions about the future of aviation in the country.
Reports indicate a burgeoning internal crisis within the Samagi Jana Balawegaya (SJB), the main opposition party that aspired to gain national power. Several prominent members have reportedly resigned from their positions, and former Member of Parliament Imtiyās Bakīr Mākār has declined to accept the party chairmanship.
Bakeer Markar had previously resigned from the chairman post following the last general election but was subsequently reappointed by party leader Sajith Premadasa. However, sources within the party now suggest he has decided against taking up the position again.
Adding to the turmoil, Ashok Sepala, the ThalaWakele Co-Organizer for the Nuwara Eliya District, and Anura Buddhika, the organizer for the Horowpothana electorate, have also resigned from their respective roles. Sepala reportedly stepped down in protest over the alleged failure to distribute the promised list of member positions following the recent local government elections. Buddhika is said to have submitted his resignation letter to the party’s General Secretary, Ranjith Madduma Bandara.
Over the past few days, a wave of resignations has apparently begun within the SJB, led by Opposition Leader Sajith Premadasa, with electorate organizers from several districts, including Matale, Galle, and Colombo, having reportedly stepped down.
Minister Bimal Ratnayake has been accused by Parliamentarian Dayasiri Jayasekara of authorizing the release of 323 containers without customs inspection, in what the MP claims is the largest corruption incident under the current government.
Speaking at a press conference in Colombo, Jayasekara stated that there is no information available regarding the fate of these released containers. He alleged that when information was requested, only the countries of origin were provided, and no relevant customs documentation was furnished. According to Jayasekara, customs officials have refused to provide further details, citing privacy concerns.
The Parliamentarian further announced that he is considering taking legal action to obtain the necessary information.
President Anura Kumara Dissanayake has personally intervened to initiate a significant operation aimed at establishing power in local government bodies where no single party secured a majority in the recent elections.
Plans are reportedly underway to form administrations in councils where opposition groups hold a majority. While no discussions have been held with the main opposition parties, it is reported that government local leaders are engaging in discussions with elected councilors.
Independent groups have been given the opportunity to meet with the President and to hold discussions with senior members of the Janatha Vimukthi Peramuna (JVP) at their Pelawatta headquarters. The National People’s Power (NPP) government is reportedly determined to secure control of the Colombo Municipal Council at any cost.
NPP leaders view the failure to gain control of the capital city’s administration as a significant political embarrassment, despite securing the presidency and a two-thirds majority in Parliament. The NPP secured approximately 48 seats in the Colombo Municipal Council with 36.92% of the vote.
The Samagi Jana Balawegaya (SJB) secured 29 seats, the United National Party (UNP) 13, the Sri Lanka Podujana Peramuna (SLPP) 5, the Sri Lanka Muslim Congress (SLMC) 4, the United Peace Alliance 2, Sarvajana Bala 2, and other parties 1 each. The remaining 9 seats are distributed among five independent groups.
The President has reportedly commenced discussions not with the aforementioned political parties but with these independent groups. A former governor is also reportedly involved in mediating discussions with ‘independent’ members in support of the government.
Secret behind-the-scenes discussions are also reportedly taking place with the Sri Lanka Muslim Congress and the Tamil Progressive Alliance led by Mano Ganeshan.
Parliamentarian Namal Rajapaksa has stated that he has received information indicating a plan to arrest him next week.
He further claimed that there was a move to fabricate evidence related to the Krish transaction to facilitate his arrest.
Rajapaksa made these remarks while visiting former ministers Keheliya Rambukwella and Mahindananda Aluthgamage, who are currently in remand prison, at the Welikada Prison.
During the meeting, Namal Rajapaksa reportedly mentioned that he might be joining the two former ministers in the coming week.
Former Member of Parliament Bandulal Bandarigoda has resigned from his position as the Samagi Jana Balawegaya (SJB) organizer for the Galle electorate.
Bandarigoda stated that his decision stems from disagreements regarding the nomination of winning candidates to local government councils following the recent elections.
Meanwhile, SJB Parliamentarian Rohini Kaviratne has voiced her dissatisfaction with certain decisions made by the party.
She alleged that prior agreements were violated during the nomination process for local council members. This situation, according to Kaviratne, has left many organizers in a difficult position, unable to face their constituents.
Minister Bimal Rathnayake has stated that a reshuffle of government responsibilities, including ministers, is expected shortly, as reported by InfoSriLanka.lk last week.
Speaking on a television program on Television, Minister Rathnayake indicated that he and other ministers had requested changes to their portfolios, and new appointments were also possible.
Meanwhile, the opposition has lodged a formal complaint with the Speaker following the appointment of a committee to investigate a recent exchange between Member of Parliament Dayasiri Jayasekara and Leader of the House, Minister Bimal Rathnayake. The letter, signed by several MPs from the Samagi Jana Balawegaya, addresses the events of May 20, 2025, in Parliament.
The opposition’s letter highlights concerns regarding the safety of parliamentarians under Standing Order 92 (2) (a), following Mr. Jayasekara’s raising of the issue. It further alleges that MP Kaushalya Ariyarathna challenged the Speaker’s authority, thereby violating standing orders, and that Leader of the House Bimal Rathnayake contravened Standing Order 91 (u) by accusing Mr. Jayasekara.
The opposition MPs have demanded an inquiry into the conduct of the Leader of the House, asserting that the accusations leveled against Mr. Jayasekara – specifically being labeled as someone who defrauded the President’s Fund and stole from the poor – have damaged his reputation.
The Samagi Jana Balawegaya (SJB) is reportedly facing a significant internal crisis, with three key electoral organizers from the Matale district deciding to resign from their positions. Former State Minister Rajith Aluvihare, the organizer for the Ratthota electorate, stated that the organizers for Matale, Vasantha Aluvihare, Dambulla, Champika Wijeratne, and himself have decided to step down due to continuous mistreatment by the party. Rajith Aluvihare further revealed that many others are also expected to submit their resignation letters.
This development follows reports that Badulla District Parliamentarian Chaminda Wijesiri resigned from his position as the Bandarawela electorate organizer for the SJB yesterday (May 23), a decision he has already communicated to the party.
This wave of resignations has cast a shadow over the future political trajectory of the SJB, further substantiating claims made by InfoSriLanka.LK regarding a severe crisis within the party.
The “Dinana Dakuna” (Winning South) collective, aiming to reinstate right-wing politics, held a press conference yesterday (May 22nd) and asserted that the current government, led by the President, has failed to enhance state capacity through public service efficiency and restructure loss-making state institutions/enterprises. They emphasized the nation’s escalating debt crisis.
The press briefing saw the participation of figures including Attorney-at-Law Sudarshana Gunawardena, Attorney-at-Law Dr. Priyankara Mahagamage, Ravi Kumudesh, and Maheel Bandara. Sudarshana Gunawardena shared his views on the reform of state-owned enterprises in the power and energy sectors under the theme “Anura Who Doesn’t Learn,” highlighting the continuous losses of public enterprises and their detrimental impact on the national economy, which peaked in 2022.
Gunawardena pointed out that the Ceylon Petroleum Corporation (CPC) and the Ceylon Electricity Board (CEB) had the most adverse effects on the economy due to persistent losses. He identified two primary reasons for these ongoing losses: the continuous failure to price their products and poor financial management properly.
The simultaneous weakening of the Sri Lankan Rupee against the US Dollar (from 200 to 365) and the rapid increase in global energy prices significantly inflated the cost of fuel imports. However, retail prices for electricity and petroleum did not reflect these rising costs, exacerbating the financial woes of the CEB and CPC, leading to power cuts and fuel queues.
The government’s initial key reform for loss-making state enterprises was the introduction of a cost-reflective pricing mechanism, known as the “price formula,” for fuel and electricity retail. While a price formula for petroleum products was first implemented in 2018 but abandoned in 2019, it was reintroduced in May 2022. Similarly, electricity tariffs were increased based on cost in August 2022 and February 2023, marking the first such increase in the power sector since 2013.
The delay in implementing cost-based pricing resulted in massive losses for the CEB (Rs. 262 billion) and the CPC (Rs. 615 billion) in 2022. These losses necessitated significant fund allocations from the Treasury to bail out these entities.
The collective acknowledged the necessity of a cost-based pricing formula for energy in a country like Sri Lanka, which imports energy and is vulnerable to fluctuations in global energy prices and the exchange rate. However, they also recognized the challenge such a formula poses to consumers, especially the poor and vulnerable, given the prevailing trend of rising global energy prices and the weakening rupee. This had previously led to questions about the government’s role if prices were simply dictated by global market forces.
Past governments had addressed this by subsidizing public utilities like electricity and fuel, selling them below market prices as a welfare measure, with the Treasury covering the losses. However, the 2022 economic crisis made this unsustainable. Instead, the government opted to maintain cost-based pricing at the retail level while providing cash allowances under the “Aswesuma” program to identified low-income groups to mitigate the impact. This approach ensures that all consumers pay the actual cost of energy, discouraging inefficient usage by wealthier segments of society, while supporting the vulnerable.
The press conference further highlighted that implementing cost-based pricing alone was insufficient to resolve the financial distress of the CEB and CPC. The CPC, for instance, faces a significant challenge due to importing fuel with US dollars and selling it in the local market for Rupees. This currency mismatch leads to substantial losses whenever the Rupee depreciates against the Dollar.
To address this, the government transferred the foreign currency-denominated debt of the CPC, and to a lesser extent the CEB, onto the government’s balance sheet. This debt relief is part of a broader exercise to restructure the balance sheets of financially significant state-owned enterprises, including the CPC, CEB, Road Development Authority, and Sri Lankan Airlines.
The government also addressed the issue of “cross guarantees” between state-owned enterprises. For example, the CEB and Sri Lankan Airlines owe substantial amounts to the CPC for fuel, with delays in payments forcing the CPC to borrow from state banks at high interest rates. The previous cabinet had approved measures to eliminate these cross-guarantees.
This balance sheet restructuring is expected to significantly improve the financial health of these key state-owned enterprises while minimizing risks to the financial and banking sectors. However, the collective emphasized the crucial need for long-term solutions to prevent such mismatches from recurring.
With the stabilization of the CEB and CPC’s financial positions, the next imperative is to enhance their efficiency and competitiveness through increased market competition. Steps have already been taken to introduce competition in the petroleum retail market, with Sinopec commencing commercial operations as the first new entrant, followed by RM Parks-Shell. While United Petroleum Australia also entered the market, it later withdrew.
Increased competition in the petroleum retail sector will compel the CPC to streamline operations, reduce costs, and operate more efficiently to remain competitive, ultimately benefiting consumers with better prices and services. Globally, petroleum retail is a competitive business with multiple players, and governments have largely stepped back from direct involvement.
Simultaneously, the previous government initiated the “unbundling” of the CEB’s operations, with the Asian Development Bank playing a significant role. This aims to foster competition within the institution, leading to improved operational efficiency and financial autonomy in power generation and distribution.
The introduction of Bulk Supply Transaction Accounts (BSTA) is expected to enhance transparency, leading to better prices and outcomes for consumers. Automation of meter readings, replacing the current manual system, is another example that can provide timely and predictable meter readings, benefiting consumers and improving the productivity of the CEB’s workforce.
President Anura Kumara Dissanayake’s nomination of H.T.P. Chandana, a board member of the Ceylon Petroleum Corporation, for the position of Auditor General, was rejected for the second time by the Constitutional Council yesterday (21st).
During the vote on the proposal, it received 3 votes in favor and 5 votes against. The President’s initial recommendation also failed to gain consensus in the Constitutional Council the day before, leading to yesterday’s reconvening to reconsider the matter.
Samagi Jana Balawegaya Member of Parliament Mujibur Rahuman alleged that H.T.P. Chandana, nominated by President Anura Kumara Dissanayake for the vacant Auditor General post, was junior to the President during their time at the University of Kelaniya. He argued that an individual with only approximately five years of experience as an audit director at the Ceylon Petroleum Corporation was unsuitable for the position.
Meanwhile, Member of Parliament Dr. Harsha de Silva stated that the government was attempting to appoint an external individual to the Auditor General’s post, despite the presence of the most senior official within the Auditor General’s Department. The Constitutional Council had also previously withheld its consent on a nominee from a private sector audit firm put forward by President Anura Kumara Dissanayake, leading to a postponement of the decision until yesterday.
The Joint Trade Union Alliance of the National Audit Office has strongly protested against the attempt to appoint an external individual instead of Dharmapala Gammanpila, the most senior official in the State Audit Service, to the post of Auditor General.
The Auditor General’s position has been vacant for 42 days since the retirement of the previous holder. Former President Ranil Wickremesinghe also faced a similar predicament during the appointment of Deshabandu Tennakoon as the Inspector General of Police.
