Chinese-Backed Projects Stall as Tourism Slumps, Investments Freeze
‘Colombo Club’ Gains Momentum as SJB–UNP Unity Talks Advance
Prelates Push for Appointment of a “Suitable” Auditor General
Coal-Stained Government
It appears that the honeymoon period of the Malima government has now come to an end, as one issue after another continues to arise for the administration. In recent weeks, the government had to face a serious problem regarding educational reforms. That matter came to a partial conclusion when President Anura Kumara Dissanayake decided to postpone only the Grade 6 educational reforms for one year, after it was revealed that the Grade 6 English module contained the name of an obscene website.
No sooner had the education reform issue subsided than the next grave problem emerged—this time concerning coal imports. The first to reveal this matter outside Parliament was Pubudu Jayagoda, the Education Secretary of the Frontline Socialist Party. However, it was MP D.V. Chanaka of the Sri Lanka Podujana Peramuna (SLPP) who brought the issue into Parliament. On several occasions, Chanaka raised questions regarding the coal matter, pointing out issues such as the change of tenderer, the reduction of tender days, the poor quality of coal, the risk of damage to machinery at the Norochcholai power plant, and the problem of ash disposal. Despite these questions, the coal issue did not gain traction.
SM Marikkar expose inside SJB
The situation escalated dramatically once the Samagi Jana Balawegaya (SJB) took up the matter. The first to raise it within the SJB was MP S.M. Marikkar. Presenting information to the SJB parliamentary group, Marikkar revealed that the government had bypassed established procedures to import coal, deliberately awarding the tender to a favoured party. He further disclosed that all three ships of imported coal contained substandard coal lacking the required calorific value, posing risks of power plant shutdowns. He warned that using this coal could lead to large amounts of ash being released into the environment, causing pollution. Marikkar emphasized that the entire chain of events amounted to a fraud even greater than the bond scam, carried out through coal imports. He also revealed that this could result in power plants becoming inactive, creating a significant risk of an electricity crisis in the near future.
Sujeewa’s Different Approach
Accordingly, the SJB parliamentary group decided to take up the coal issue in Parliament and to pursue it vigorously at the Parliamentary Sectoral Oversight Committee. The first to raise the matter in Parliament was Opposition Leader Sajith Premadasa, who presented relevant reports and informed Parliament that all parties should be summoned before the Oversight Committee.
At that time, SJB MP Sujeewa Senasinghe planned a different approach to draw the public’s attention to the coal issue. He arranged a field inspection tour of the Norochcholai coal power plant together with opposition MPs. Sujeewa also invited D.V. Chanaka, the MP who had first raised the coal issue in Parliament. Thus, before the Oversight Committee discussions, opposition MPs traveled together by bus to Norochcholai.
A notable development during this visit was that engineers and workers at Norochcholai provided the SJB MPs with extensive information on coal imports. This internal support helped to confirm that several ships had indeed imported substandard coal, strengthening the opposition’s case to present these facts to the country.
However, when the MPs first attempted to enter Norochcholai, they faced obstruction from security officers, who informed them that entry with media personnel was not permitted. The opposition MPs refused to accept this restriction, and eventually, they were allowed to enter with the media to report on the situation.
Call to Singapore
Meanwhile, attention shifted to what would happen at the Parliamentary Oversight Committee. At that time, Opposition Leader Sajith Premadasa was engaged in a study tour in Singapore. On the night before the committee meeting, MP Marikkar received a special message. The messenger informed him that certain parties were exerting pressure to prevent the Oversight Committee from being held. He further revealed that senior officials of the Ceylon Electricity Board (CEB) had received instructions from high-level sources regarding this matter.
Marikkar immediately began investigating and confirmed that the information was true. Realizing that a major operation was underway behind the scenes to block the committee meeting, he decided to inform Sajith in Singapore. When Marikkar called Sajith, it was already past midnight in Singapore. Nevertheless, Sajith was briefed on the situation, including reports that the government was planning to prevent holding the Oversight Committee. Sajith advised Marikkar that Parliamentary Secretary-General Kushani Rohanadheera should be informed about this immediately.
Secretary-General’s Firm stance
That same night, Sajith called the Secretary-General of Parliament, connecting Marikkar to the call as well. Sajith explained the situation, but the Secretary-General responded that she was unaware of any such plan, and assured them that the Oversight Committee would proceed as scheduled. She emphasized that no party had informed her of any cancellation.
However, it was already understood that certain parties had planned for CEB officials not to attend the committee session scheduled for the following day. Soon after, opposition MPs received further information: a senior CEB official had received a direct call from the highest level of politics. That call instructed the official to attend the committee without fear and to answer questions directly.
The message was clear: “Do not hesitate or avoid answering questions. If you appear fearful, suspicions will arise. Answer Marikkar and others directly. If you speak nervously, that is when problems will arise.”
This revealed the extent of political influence and pressure surrounding the coal import issue.
Next Crisis- Prediction
Although the Sectoral Oversight Committee was held the following day, by Thursday the reports on the quality of the imported coal had still not reached Parliament. Accordingly, it was decided to postpone the committee until the 12th, pending the arrival of the reports. It is customary when such a serious issue arises, we publish a forecast in the ‘Inside politics’ column. Thus, regarding the coal imports, we are prepared to make a major political prediction: if the government fails to properly manage this coal issue, it could escalate into a storm even more destructive than Cyclone Dithwa, one that the government will find extremely difficult to withstand.
With the coal controversy already creating such an atmosphere, the government is simultaneously facing a series of other challenges—both economic and political. Last week, we reported several special details about the sudden visit of Chinese Foreign Minister Wang Yi to Sri Lanka. Though he was traveling from South Africa to China and stopped in Sri Lanka as a transit destination, his initial plan was to come to Colombo and meet the President. However, at the last moment, he changed his schedule, stayed at the Jetwing Lagoon Hotel in Katunayake, and did not meet the President. We reported the reasons for this in last week’s ‘inside Politics’ column.
Anura, avoid the Meeting?
This week, further information has emerged about why the Chinese Foreign Minister, though arriving in Katunayake, did not come to Colombo to meet the President. The truth is that the original plan was indeed to meet the President in Colombo. But after concluding visits to four African countries, Wang Yi received a special report from Beijing. This report detailed the current state of agreements between Sri Lanka and China—some proposals were progressing positively, while others had stalled with no results.
It was this report that overturned all plans for a meeting with the President. The key reason was that the Sri Lankan government had still not granted permission for Chinese research vessels to enter Sri Lankan waters.
During the Gotabaya Rajapaksa administration, Chinese research vessels had entered Sri Lankan waters without issue, despite objections from India, the U.S., and Japan, who accused China of using them to spy in the Indian Ocean. After Ranil Wickremesinghe became President, however, India’s strong pressure led to a one-year ban on Chinese research vessels entering Sri Lankan waters. China viewed this as a major blow to its national pride.
That ban expired in October last year, and China began discussions to restore access for its research vessels. Wang Dongming , Vice Chairman of the National People’s Congress, visited Sri Lanka to discuss the matter with the President and other officials. Later, during the President’s visit to China, even the Chinese President himself intervened in the discussions. Media reports stated that the Sri Lankan President gave verbal approval for Chinese research vessels to re-enter Sri Lankan waters and promised to amend the relevant SOP agreement immediately.
China’s Promises in Return
Following this assurance, China pledged to increase investments in Sri Lanka and to send 6 million Chinese tourists within a year. Until Sri Lanka completed the necessary infrastructure, 3 million tourists would be sent first. The President and government leaders publicly declared that 2025 would be the year Sri Lanka received the highest number of tourists, citing this guarantee from China.
In addition, Sinopec agreed to undertake the largest foreign investment in Sri Lanka’s recent history: a $3.7 billion oil refinery to be built near the Hambantota Port.
Sinopec Stalls
Because the government has delayed granting permission for Chinese research vessels to enter Sri Lankan waters, China has now begun to respond. One step was the unilateral cancellation of the planned meeting between the Chinese Foreign Minister and the Sri Lankan President during his visit. The next step was China’s decision to suspend the massive Sinopec Hambantota oil refinery project worth USD 3.7 billion.
We have previously reported several details about this project. One was that during the President’s visit to the United States for the UN General Assembly, strong pressure was exerted by the U.S. to suspend the Sinopec deal. At that time, U.S. Ambassador Julie Chung also traveled to Washington and joined in lobbying against the project. In discussions with Foreign Minister Wijitha Herath, U.S. officials directly urged him to halt the agreement. Wijitha, however, explained that this was Sri Lanka’s largest investment, much of the work was already completed, and the U.S. itself had not yet provided major investments to Sri Lanka.
Thus, Sinopec continued with construction. But now, reports indicate that the team working on the Hambantota refinery has suspended operations and returned to China. It is said that Beijing sent a special message instructing Sinopec leaders not to sign the final agreements. This information is being revealed to the country for the first time through the ‘inside politics’ column.
Although China has not definitively decided to cancel the Hambantota refinery, it has not moved forward either. Many suspect that the suspension is linked to the unresolved issue of Chinese research vessels entering Sri Lankan waters.
Slow Tourism
Another incident two weeks ago reinforced this suspicion. A Chinese company suddenly suspended Sri Lanka’s first cable car project in Ambuluwawa, and its executives abruptly left the country.
In addition, China appears to be playing another subtle game—this time involving tourism. Previously, China promised to send 6 million tourists to Sri Lanka within a year, creating a major boost for the tourism sector. But now, China seems to be reversing that promise.
China wields enormous influence through tourism, able to uplift or weaken economies. Last year, China fulfilled its pledge by sending more tourists, which increased both arrivals and foreign exchange earnings. But current reports suggest that China has reduced the number of tourists coming to Sri Lanka, breaking its earlier promise. Analysts warn this could have a major impact on Sri Lanka’s economy, and again, the research vessel issue appears to be entangled with this.
Central Expressway Also Stalls
The next major concern is the Colombo–Kandy Central Expressway project, which China had pledged to fund. During visits by the President, Transport Minister Bimal Ratnayake, and JVP General Secretary Tilvin Silva to China, Chinese officials promised financial support for the highway. Bimal even publicly announced this weeks ago.
But now, reports suggest China’s interest has waned, and the project may be pushed aside. This indicates that China is increasingly frustrated by Sri Lanka’s failure to grant promised access to Chinese research vessels. That frustration is being expressed in multiple ways—through stalled projects, reduced tourism, and suspended investments.
By last week, China had already delivered several heavy hints, making its displeasure unmistakably clear.
Discussions in Sajith’s Style
With the government’s honeymoon period now over and one issue after another surfacing, the main opposition, the Samagi Jana Balawegaya (SJB), is currently engaged in resolving past disputes with the United National Party (UNP) and creating the environment necessary for unity. The foundation for this was laid at the Taj Samudra Hotel’s Colombo Club, where Sajith Premadasa met with UNP leaders Ruwan Wijewardene, Akila Viraj Kariyawasam, and Navin Dissanayake. Later, Sajith also held a special discussion with Sagala Ratnayake at the same venue. Subsequently, both the UNP and SJB convened their executive committees to brief their members on the progress of these talks.
Since there was no major public announcement about unity between the two parties, many began asking: “Are the talks over? Aren’t the parties coming together? Is this going to be another false start?” In response, last week Mawurata newspaper revealed that Sajith was preparing for another major step toward unity. That report was based on information we had already received about a significant upcoming meeting.
Sajith has carried these discussions forward in his own style—not influenced by anyone else’s preferences, pressures, or methods. Ranil Wickremesinghe’s style is often described as delaying problems rather than solving them quickly—appointing committees, spreading false news, playing games, and dragging matters out. Sajith, however, is different. He acts with honesty. Games and manipulations are not part of his political philosophy. His approach is to understand the views of grassroots supporters and then move forward step by step, carefully and steadily.
Sajith–Thalatha Meeting
As we revealed earlier, Sajith took another significant step last week by meeting UNP General Secretary Thalatha Athukorala at the Colombo Club, Taj Samudra. Alongside Thalatha, Ruwan, Akila, Sagala, and Navin were present. Sajith was joined by SJB General Secretary Ranjith Madduma Bandara. The uniqueness of this meeting was that apart from the participants themselves, no one else from either party knew it was taking place.
The meeting was conducted in a very cordial manner between the two general secretaries and covered several important matters. One key point was that both parties should unite soon and organize a significant event together. Various proposals were presented by representatives of both sides. Sajith’s position, however, was somewhat different.
“Don’t rush. We must do all this in a way that doesn’t harm the unity of the two parties. Let’s move forward slowly, step by step…” Sajith said.
At that point, Navin proposed a plan for how to act during the next election: “If an election comes, we should form a committee to handle nominations jointly, with candidates from both sides…”
Responding immediately, Sajith emphasized again that nominations must reflect ground realities: “When we prepare nomination lists, we must understand the reality at the grassroots level. We must look at parliamentary representation and divide nominations accordingly. But we shouldn’t rush into this, because there’s no talk of an election yet. First, we must unite our grassroots supporters and lift their morale to a victorious level. Only then can we move forward…”
Navin and the others agreed with Sajith’s stance. The discussion ended with positive responses from all participants to the matters raised.
Another Prediction
From the ‘inside politics’ column, we are prepared to make another special revelation. Within the next two to three weeks, although not something massive, an event is certain to take place to demonstrate the unity between the two parties. Representatives of both sides are expected to jointly organize a program, though at this stage we do not know exactly what it will be. What is clear is that both sides have already agreed to such an occasion.
It should also be noted that there are no immediate plans for leader-level discussions tomorrow or the day after. Such decisive talks between party leaders and a formal public ceremony of unity between the UNP and the SJB are expected to take place in line with the government’s electoral timetable. However, within both parties, there remain small groups unfamiliar with these traditions, who spread different stories in various places. Yet, leaving these aside is beneficial for both parties.
The “Spoilers”
We say this because within the UNP, a handful of individuals are attempting to sabotage this unity. Over the years, we have reported many such examples in ‘Inside politics’. This time, information has surfaced about four UNP figures working against the alliance. Out of consideration for the thousands of supporters who hope for unity, we will not reveal their details now. But if a decisive moment arises, we are prepared to expose their names, their conspiracies, manipulations, and games one by one.
After last week’s cordial Sajith–Thalatha discussions, one of these “spoilers” even called Namal Rajapaksa, National Organizer of the SLPP. In that call, he told Namal that the UNP should unite not with the SJB, but with the SLPP.
“They are trying to unite the UNP and SJB. But it should be the UNP and SLPP that come together. We want to form a political journey with the SLPP, to build an alliance with them,” he said.
Namal’s response was the same as what he had already publicly stated: “There is no political journey for the UNP and SLPP together. The UNP must unite with the SJB. That way both sides benefit. If we unite with you, both our parties will disappear.”
Thus, the new game attempted by the spoiler collapsed.
Another spoiler within the UNP has started a big show claiming the party is being reorganized, with the aim of breaking the UNP–SJB unity and keeping UNP members separate. In addition, two more figures are working against the alliance. For now, we will not reveal further details, but when the time comes, we are ready to disclose everything.
Endless Resignations
Since the ‘Malima’ government came to power, a series of resignations by chairpersons has continuously affected its stability. Several chairmen appointed by the government resigned within three to four months. Later, a number of Malima-appointed local government chairmen also stepped down.
The latest wave occurred last week, when three institutional chairmen resigned. First was Arjuna Herath, Chairman of the Board of Investment. Second was Dr. Ramani Jayasundara, Chairperson of the National Women’s Commission. Third was Air Chief Marshal Harsha Abeywickrama, Chairman of Airport and Aviation Services and former Air Force Commander.
Of these, Harsha’s resignation attracted the most public discussion. Social media widely claimed that political pressure forced him out.
The trigger was CCTV footage from his office showing a monk entering the airport terminal area—normally restricted to outsiders. Harsha investigated and learned that it was Ven. Banagala Upatissa Thero of the Sri Lanka Mahabodhi Society, who had entered with a special permit. Further inquiry revealed that about 40 such permits had been issued illegally by ministers in recent times. Harsha discovered that Upatissa Thero’s permit had been newly authorized by Ports and Civil Aviation Minister Anura Karunathilaka.
Is this the Clash?
Ven. Banagala Upatissa Thero had sent a letter requesting special permission to enter the airport terminal for international religious activities, effective from December 31, 2025. Minister Anura Karunathilaka, with his signature and seal, forwarded this letter to Airport and Aviation Services Chairman Harsha Abeywickrama, instructing him to grant the permit.
However, Harsha responded with a letter to Ven. Upatissa, stating that such permission could not be granted. He explained that certain irregularities had occurred within the institution and that steps were being taken to correct them.
Investigations revealed that Ven. Upatissa had first been granted access to the airport terminal during the presidency of Mahinda Rajapaksa. At that time, Deputy Minister of Civil Aviation Nirupama Rajapaksa, a relative of the Rajapaksa family, had signed the authorization. The current clash between Anura Karunathilaka and Harsha stemmed from the renewal of this Rajapaksa-era permit. The final outcome was Harsha’s resignation from his post. Both Ven. Upatissa’s letter, endorsed by Anura Karunathilaka, and Harsha’s resignation letter are now circulating on social media.
Harsha Abeywickrama is considered close to both the Rajapaksa family and Ranil Wickremesinghe. During Gotabaya Rajapaksa’s presidency, he served as Chairman of Bank of Ceylon. He is also said to have close ties with Ranil’s brother, Channa Wickremesinghe. When the Malima government came to power, then-Minister of Civil Aviation Bimal Ratnayake appointed Harsha as Chairman of Airport and Aviation Services, surprising many due to his Rajapaksa connections. Later, when Bimal was removed and Anura Karunathilaka became Minister, tensions arose between him and Harsha, ultimately leading to Harsha’s resignation. Reports suggest that the President now plans to appoint another close ally to the position.
The Great Power of the Chief Prelates
In Sri Lankan politics, regardless of who governs or who opposes, the Chief Prelates of the Buddhist orders hold an unshakable position. At every critical juncture, leaders first meet these venerable monks to seek their advice. Although the JVP has traditionally been seen as a party not rooted in religion, since coming to power, the President and senior ministers have regularly met the Chief Prelates, sometimes weekly.
Recently, the Prime Minister met them to explain the education reform issue. The Chief Prelates also intervened in the Auditor General appointment dispute. Civil society groups and trade unions had informed the monks that the government had left the Auditor General’s post vacant for ten months, attempting to appoint a less qualified ally of the President, and the groups briefed the Prelate on the request to recommend to the president to appoint the Deputy Auditor General Dharmapala Gammanpila as he is the most suitable candidate.
As a result, the Asgiriya and Malwathu Chief Prelates sent a strong letter to the President, demanding the immediate appointment of Dharmapala Gammanpila. The letter was not made public to avoid embarrassing the President, but three weeks ago, ‘inside politics’ obtained it and hinted at its contents. Last week, with the Constitutional Council agreeing to appoint three civil representatives, the letter surfaced more widely.
Now, the question remains: will Dharmapala Gammanpila be appointed Auditor General as requested by the Chief Prelates? At the first meeting of the new Constitutional Council, the President did not submit a name. Opposition Leader Sajith Premadasa, who was in Singapore, joined via Zoom. If Gammanpila is not appointed, the reaction of the Chief Prelates to the government’s rejection of their demand will be closely watched.
Gotabaya disheartened of ‘Sasara’
In a context where the Chief Prelates have become powerful enough to directly influence government decisions, the ‘inside politics’ column is prepared to make a special revelation regarding former President Gotabaya Rajapaksa.
Gotabaya is remembered as the first President of Sri Lanka to be ousted by a public uprising. He also played a major role in ending the 30-year war, serving as Defence Secretary. His name is closely associated with the beautification of Colombo as well. Having earned recognition both for the war victory and for his presidency, Gotabaya could have maintained a strong reputation. However, due to misguided advice from those close to him, he ultimately faced mass public opposition and fled the country.
After returning to Sri Lanka, Gotabaya has not participated in any political events, nor has he made any political statements.
Reports now indicate that Gotabaya has turned deeply towards Buddhist philosophy in recent times. He is said to spend much of his day engaged in meditation. He avoids meeting outsiders and instead studies Buddhist texts and books on meditation in depth.
Thus, in the twilight of his life, there appears to be a strong possibility that Gotabaya may formally enter the Buddhist order. If so, he would become the first Sri Lankan President in history to renounce worldly life and embrace monasticism.
