Sridharan’s Shift Toward Government Sparks Talk of Disciplinary Action
London Outreach Fails to Prevent Colombo MC Budget Setback
Sunil Wattegala’s Sudden Absence Raises Questions Within Party Circles
IMF Chief Expected in Sri Lanka for High-Level Review of Monetary Reforms
Colombo Fever
In recent weeks, the budgets of several local government institutions under the control of Malimawa (the Compass) have been defeated in council votes. Despite these setbacks, the government has remained conspicuously silent, behaving as though the defeats carried no political consequence or significance.
By contrast, the Samagi Jana Balawegaya (SJB – United People’s Power), the main opposition, consistently highlighted these budget defeats at each occasion. Yet, until now, they refrained from transforming them into a broader political campaign. The budget vote at the Colombo Municipal Council last Monday, however, marked a turning point. As the date for Colombo’s budget approached, the atmosphere shifted dramatically, with clear signs of a major political operation unfolding behind the scenes.
The Colombo Municipal Council, often regarded as the heart of local government, has long been a coveted prize. Both Malimawa and the SJB-led opposition invested heavily in efforts to secure control during the last local government election. Although Malimawa won a majority, it fell short of outright control. Through negotiations with independent groups and other parties, however, Malimawa managed to secure 61 seats and ultimately seized power via a secret ballot. This was celebrated as a significant political triumph, while the SJB faced sharp criticism. The chief accusation was that by contesting separately from the UNP, the SJB squandered a victory that had been within reach.
When the time came to select the mayor, the SJB-led opposition demanded an open vote. Yet Municipal Commissioner Sarangika Jayasundera rejected this request, opting instead for a secret ballot. The outcome was decisive: Malimawa, which initially held 48 seats, expanded its tally to 61 by attracting support from opposition members. The SJB-led opposition, meanwhile, secured only 54 votes. In the aftermath, the opposition announced its intention to challenge the Commissioner’s decision in court, arguing that the secret ballot disregarded the objections of the majority of councilors.
Mujibar’s Committee
Although the budgets of several councils controlled by Malimawa had been defeated in recent months, the rejection of the Colombo Municipal Council budget last Tuesday struck the government with the force of a sudden dust storm. Few anticipated such an outcome; until the vote was concluded, no one believed Malimawa would suffer defeat in Colombo.
The reason lay in the carefully concealed strategy of the SJB-led opposition. While the Colombo Municipal Council budget vote was scheduled for the 22nd, preparations to defeat it had begun as early as the 15th. At the forefront of this effort was Mujibar Rahman, the Colombo SJB leader. Mujibar informed party leader Sajith Premadasa that the opposition held 54 seats, but with determined effort, this could be expanded to 60—enough to overturn Malimawa’s budget. Sajith agreed, but imposed one critical condition: the operation must remain strictly confidential. He warned that if word leaked, the government would exploit the information and maneuver to secure the budget. Mujibar was instructed never to disclose details of the plan outside the inner circle.
Mujibar himself suspected that the government might attempt to sway certain opposition parties into supporting them. Guided by Sajith’s directive, he launched the campaign in utmost secrecy. His first move was to assign a senior team—including Colombo Municipal Council Opposition Leader Riza Zarook and Roy Bogahawatta—to open discussions with other opposition factions.
These talks revealed crucial intelligence. Several independent councillors who had previously supported Malimawa in the secret ballot were deeply dissatisfied. Their frustration stemmed from Malimawa’s failure to honor promises of committee chairmanships when consolidating power. Moreover, these councillors felt powerless to deliver services to their constituents, further fueling discontent. Recognizing this vulnerability, the SJB’s senior team engaged them directly. In the very first round of negotiations, they succeeded in securing the support of these independents—an achievement that laid the foundation for the eventual defeat of Malimawa’s budget.
Problems within Malimawa
During discussions with frustrated opposition councillors, the SJB senior group uncovered another critical point: discontent was not limited to independents. A faction of councillors within Malimawa itself had grown increasingly dissatisfied with the party’s conduct. These councillors revealed to the SJB seniors that, despite Malimawa holding control, they were unable to deliver services to their party members. Allegations of corruption and fraud further deepened their frustration. They indicated that if approached, they might be willing to lend support against the budget. According to their account, approximately five Malimawa councillors belonged to this disillusioned group.
Upon receiving this intelligence, the SJB seniors immediately briefed Mujibar Rahman. Mujibar cautioned them not to act hastily. He explained that since the budget vote would be conducted openly, any government councillor voting against the budget would immediately alert the administration. Therefore, he advised focusing efforts on persuading opposition councillors who were still aligned with the government to shift their votes. Mujibar added that, at a decisive moment, steps could be taken to bring the five disgruntled Malimawa councillors into the opposition fold.
Champika agreed
While the SJB senior group continued negotiations with frustrated independents, Mujibar pursued a parallel operation to secure the necessary numbers by engaging other opposition leaders. His first discussion was with Patali Champika Ranawaka. Champika’s United Republic Front held one seat in the Colombo Municipal Council, and its representative had abstained during the earlier vote to establish the Council. Mujibar explained the possibility of defeating Malimawa’s budget and requested support. Champika responded that if Mujibar could demonstrate a credible bloc of councillors sufficient to secure victory, he would instruct his representative to back the opposition.
Dilith Supported
Mujibar next turned to Dilith Jayaweera. Dilith’s Sarvajana Balaya had two councillors in the Colombo Municipal Council. In the earlier contest for the mayoral post, one of Dilith’s councillors—a prominent Colombo businessman—had contested but was defeated, creating internal tensions within the party. Ultimately, this councillor resigned his position and left the party. His replacement was a councillor with close ties to the UNP.
Recognizing this shift, Mujibar approached Dilith and explained that an opportunity had arisen to defeat Malimawa’s budget, stressing the importance of securing both councillors’ support. Dilith agreed, pledging his party’s cooperation in the operation.
Anura Intervenes
Although Mujibar and the SJB senior councillor group conducted their negotiations in utmost secrecy, word of their operation eventually reached the government. Following the municipal council election, Malimawa had secured the support of 13 independent councillors from opposition groups during the secret ballot to select the mayor. Once reports of the new maneuver surfaced, the JVP councillor serving as Deputy Mayor promptly informed Palavatha and the President, arranging a special meeting between the independents and the Head of State.
This meeting was convened at the Presidential Secretariat. When nine independent councillors arrived, they were met not with the President’s customary smile but with visible anger. According to the Inside Politics column, at one point the President raised his voice at the JVP Deputy Mayor, declaring: “You cannot even protect the power that was given to you… I cannot always be patching up municipal council problems… You must find a way to win this… You need to know how to hold these councillors.”
News of the meeting quickly spread. Prominent social media activists published photographs, claiming the President had invited opposition independents and offered them biryani in an attempt to secure the Colombo Municipal Council budget. The veracity of this allegation remains uncertain, yet the government notably refrained from denying or rejecting the publicity.
Meanwhile, three to four days into the operation, Mujibar had already calculated that the necessary votes to defeat the budget were within reach. He kept Sajith Premadasa updated almost daily by phone, reporting both the progress of negotiations and the government’s growing awareness of the threat. Mujibar informed Sajith that even the President had now intervened directly, meeting with opposition councillors to counter the move.
Sajith asked whether he too should step into the discussions. Mujibar advised against it, warning that Sajith’s involvement could escalate matters into an unnecessary political confrontation. Instead, Mujibar requested that Sajith quietly consult with several influential political leaders and provide strategic guidance to councillors where necessary.
Issue in Pohottuwa
During these discussions, Mujibur informed the Pohottuwa parliamentary group that one of its members was engaged in a business arrangement with the Municipal Council and maintained a particularly close relationship with Mayor Kelly Balthazar. Mujibur further discovered that this member was scheduled to make a substantial payment to the Municipal Council.
This revelation reached senior SJB municipal councilors through none other than the disgruntled faction of Malaima members referenced earlier in this column. They disclosed to the SJB leadership that two additional Pohottuwa members were aligned with the first, and that all three intended to abstain from voting during the upcoming budget vote.
When senior SJB MPs conveyed this intelligence to Mujibur, he took steps to independently verify its accuracy. His inquiries confirmed that the information provided by the Malaima MPs was entirely correct: three Pohottuwa municipal members were indeed working in close collaboration with the Malaima government.
In response, Mujibur promptly contacted Namal Rajapaksa, the national organizer of the Pohottuwa, to brief him on the situation. He also apprised Namal of the questionable business dealings between the Pohottuwa municipal councillor and the Malaima administration.
Namal assured Mujibur that the Colombo Pohottuwa municipal group would stand firmly in support of defeating the budget. He further pledged to personally investigate the councillors implicated in these dealings with the government.
London Lal Joins the Game
Lal Peiris, a long-time figure in local politics who now resides in London, became aware of a covert operation aimed at defeating the budget of the Colombo Municipal Council, currently under the control of the Compass. Lal, known by another well-established alias and leader of his own political party, has two sons serving on the Colombo Municipal Council under that banner. One of them also holds the influential position of Chairman of the Waste Management Committee.
Despite residing abroad, Lal’s reputation in Colombo politics is that of a man who wields considerable influence. It was therefore unsurprising that news of the brewing operation to topple the Compass budget quickly reached him in London. Lal realized that a defeat of the budget would cost his son the chairmanship of the Waste Management Committee. Determined to protect his family’s political foothold, Lal moved swiftly to assert his influence from overseas.
He began contacting MPs representing the SJB, urging them not to support efforts to defeat the budget. Several urban SJB MPs, unsettled by these calls, promptly reported the matter to the party’s senior committee. The committee, in turn, informed Mujibur of Lal’s intervention. It was revealed that Lal’s son had been distributing his father’s phone number among SJB MPs, enabling Lal to make direct overtures and proposals from London.
Mujibur immediately briefed Sajith on this development. Together, they devised a strategy to neutralize Lal’s interference. All SJB municipal councillors were instructed not to answer Lal’s calls and, on the day of the vote, to switch off their phones entirely. This maneuver effectively cut off Lal’s access to the councillors until the election concluded.
As a result, the SJB-led opposition successfully defeated the Compass budget in Monday’s vote, securing victory by 61 to 57. This outcome, engineered through careful behind-the-scenes maneuvering by Sajith, Mujibur, and the senior SJB municipal team, has now raised a pressing question: the future of the Colombo mayoralty. Had the vote been conducted openly rather than by secret ballot, Compass would almost certainly have failed to retain control of the Council, paving the way for an opposition representative to claim the mayor’s chair.
What Happens Now?
The defeat of the Colombo Municipal Council budget has set the stage for a tense political showdown. Legally, Compass still retains the right to present a revised budget on two further occasions. Yet the stakes could not be higher: if both attempts fail, the opposition will inevitably seize control of the Council.
The Council’s power rests largely in its committees, whose chairmanships are held by whichever group commands the majority. Should Compass lose the next two budget votes, those chairmanships—and with them, the machinery of municipal authority—would pass to the opposition led by the SJB. In such a scenario, the Compass mayor would be reduced to little more than a ceremonial figure, stripped of real influence.
Fully aware of this danger, the government is exerting its maximum leverage to ensure the second budget passes. Meanwhile, the SJB opposition is equally determined to block it, viewing the next vote as their opportunity to consolidate power and secure majority control of the Council.
Where is Watagala?
Deputy Minister of Public Security Sunil Watagala was once a central figure in Compass’s rise within the Colombo Municipal Council. With Mayor Kelly Balthasar lacking deep experience in Colombo politics, it was Watagala who stepped in to bridge that gap. He coordinated the mayoral campaign, managed party communications, and became the public face of Compass during the election.
Yet following the budget defeat, Watagala has all but vanished from the political stage. Investigations suggest that he has faced mounting internal problems since Compass took control of the Council. Reports even indicate that Mayor Balthasar has sidelined him, effectively removing him from Colombo’s political equation.
Watagala’s earlier success was not achieved alone. He operated with the backing of a powerful former figure in Colombo politics, whose residence once served as the nerve center of political maneuvering. From that base, Watagala rallied support across party lines to secure the mayoralty for Compass.
Now, however, the defeat of the Compass budget has reignited the influence of this former power broker. Colombo municipal councillors have begun receiving phone calls from him once again—calls that carry echoes of past controversies. During the mayoral election, the opposition alleged that such calls involved offers of money and inducements, with audio recordings of these conversations even surfacing in the media.
This time, councillors have been instructed by party leadership to record all incoming calls. The warning is clear: any discussion of transactions, benefits, or privileges will not remain hidden. If such dealings occur, they are certain to surface before the next budget vote, potentially reshaping the political battlefield once more.
No to Chung
If there was a foreign ambassador who left an indelible mark on Sri Lankan politics in recent years, it was undoubtedly Julie Chung. Few in this country have forgotten the pivotal role she played behind the scenes during the struggle that toppled Gotabaya Rajapaksa’s government and ushered in the Compass administration.
Chung was not merely a diplomat; she became a figure woven into the social and cultural fabric of Sri Lanka. Known for her affection toward the island’s environment, traditions, and people, she even went so far as to tattoo the word “Sri Lanka” below her knee after the 2022 uprising—a gesture that sparked controversy but which she never renounced.
Appointed as the U.S. ambassador to Sri Lanka in February 2022, Chung arrived at a time when protest movements were already gaining momentum. Through her outspoken support on Twitter, she became a star of the struggle, applying pressure on Gotabaya not to suppress dissent. Many believe that without her presence, the movement would not have succeeded.
Her influence extended beyond the protests. She was the first U.S. ambassador to visit the JVP headquarters and meet its leaders, breaking a long history of strained relations between the party and Washington. This outreach helped the JVP attract segments of the upper middle class and elite, contributing to Anura Kumara’s eventual victory.
Although Chung was initially expected to leave Sri Lanka before the 2024 general election, the Biden administration extended her tenure to ensure continuity during the electoral period. In May 2024, Elizabeth K. Horst was nominated as her successor. But Trump’s election as U.S. president threw that nomination into uncertainty, allowing Chung to remain in Colombo. Horst was instead briefly appointed acting ambassador to Pakistan.
In July, Trump nominated Eric Meyer as the new U.S. ambassador to Sri Lanka. Yet delays in approval by the Sri Lankan government prolonged Chung’s stay once more. Eventually, following a formal notification from Washington, President Anura Kumara signed the document confirming Meyer’s appointment. With that, Julie Chung’s extended chapter in Sri Lanka came to a close.
Hawaii Forum Cancelled
The chaos triggered by the Ditva disaster in Sri Lanka unexpectedly gave Julie Chung a few more months of influence in Colombo. To extend her stay, she was quietly preparing a plan that few knew about: leveraging the upcoming Indo-Pacific Ambassadors’ Conference in Hawaii.
This annual gathering is a critical forum, bringing together U.S. ambassadors from across the Indo-Pacific, alongside senior security and intelligence officials. Its purpose is to present candid assessments of the countries where they serve and to shape Washington’s future strategy. Chung intended to use the platform to highlight inefficiencies in the Malama government, warn of a looming economic crisis by April–May, and caution of an accompanying political upheaval. Her aim was to argue that the United States should prepare for instability in Sri Lanka—and, in the process, justify her continued presence in Colombo rather than handing over to a successor.
People Who Set This Up
To build the case, Chung reportedly held a series of discreet meetings in recent weeks with influential opposition figures, NGO leaders, and prominent businessmen facing controversy. According to Inside Politics, some even attended these meetings accompanied by their spouses. Discussions touched on strategies to unseat current party leaders, secure funding, and prepare for a possible crisis. Both sides agreed that Sri Lanka faced a high risk of economic turmoil by mid-2026.
The expectation was clear: if such a crisis materialized, Chung’s tenure would be extended, and she would remain the U.S. ambassador in Colombo during the critical months ahead.
Shattered Plan
But the plan collapsed during Chung’s recent visit to Washington. In a sudden move, President Donald Trump cancelled the Hawaii conference altogether. He simultaneously terminated the service of 30 U.S. ambassadors and officials, including those—like Chung—serving on extended terms. A final directive ordered them to return to the United States by January 16.
With that, Chung’s hopes of staying in Sri Lanka until May and shaping further political developments evaporated. She is expected to return to Colombo briefly in the first week of January, where embassy staff are already preparing a farewell event. Invitations, it is said, have gone out to figures across both government and opposition politics.
After January 16, Eric Meyer will formally assume office as the new U.S. ambassador to Sri Lanka. A staunch Republican and Trump loyalist, Meyer previously served as the State Department’s coordinating officer for Central and South Asia, including Sri Lanka. His arrival raises a pivotal question: will he follow the path of Julie Chung, who cultivated ties with opposition and civil society, or will he steer Sri Lankan affairs firmly in line with Trump administration priorities?
And the Cardinal…?
The Inside Politics column has received significant information regarding the Archbishop of Colombo, Cardinal Malcolm Ranjith. Traditionally, the Catholic Church requires its senior figures to retire upon reaching the age of 75. Yet in the aftermath of the Easter Sunday attacks in 2019, Pope Francis extended Cardinal Ranjith’s tenure, recognizing his relentless campaign to uncover the perpetrators and the conspiracy behind the tragedy. Today, the Cardinal is well past 78.
Against this backdrop, a surprising development unfolded in the Vatican last week. Pope Leo XIV ordered the retirement of Cardinal Timothy Dolan—one of his closest allies and a key supporter in his rise to the papacy—immediately upon Dolan’s 75th birthday. Many had expected the Pope to grant Dolan an extension out of personal loyalty. Instead, he stood firm, even in the face of reported appeals from U.S. President Donald Trump, who is said to have requested Dolan’s continuation.
This decision has sent a powerful message to the Catholic community: under Pope Leo XIV, the retirement age of 75 will be enforced without exception. To underline this policy, the Pope has summoned all Cardinals worldwide to the Vatican for a special meeting on January 7–8. According to information available to Inside Politics, a formal notice will be issued confirming the strict retirement rule.
It is widely believed that Cardinal Malcolm Ranjith will be among those affected. If so, he will be granted six months to step down from his position. In anticipation of this transition, reports suggest that Cardinal Ranjith is planning a European tour, including a visit to Germany, following the Vatican meeting.
One Agreement is Void
As previously reported in the Inside Politics column, the government pushed through a supplementary estimate of Rs. 500 billion in Parliament to provide relief for those affected by the cyclone—despite clear disapproval from the International Monetary Fund. The IMF had advised Sri Lanka to wait until full details of the disaster were available, to delay the allocation until January, and warned that premature disbursement risked plunging the country back into economic crisis.
The government, however, ignored these instructions and proceeded with the allocation. The immediate consequence was severe: the IMF cancelled the staff-level agreement with the government for the release of the fifth tranche. The Fund declared the agreement invalid under current circumstances.
Now, with Rs. 500 billion already committed, the IMF is demanding an economic explanation from the government—specifically, how it intends to recover lost tax revenue and stabilize fiscal policy. Based on that explanation, the IMF will decide its next course of action, including the possibility of negotiating a new staff agreement. A delegation from the IMF is expected to visit Sri Lanka soon to discuss these matters in detail.
Georgieva to Sri Lanka
Meanwhile, significant developments are unfolding at the highest level of the IMF. Managing Director Kristalina Georgieva was scheduled to hold a crucial telephone conversation with the President before the approval of the Rs. 500 billion estimate. Yet, on the advice of his economic advisors, the President abruptly cancelled the call.
In response, Georgieva is now preparing to visit Sri Lanka in person. According to Inside Politics, her visit is likely to take place in February. During this trip, she will meet with the President and government officials to assess the country’s economic situation firsthand. The IMF intends to base its future decisions on the data presented by the government and the realities observed during Georgieva’s visit.
Sajith at the Bribery Commission
Opposition Leader Sajith Premadasa appeared before the Bribery Commission last Monday, where he delivered a lengthy statement lasting several hours. Ordinarily, such appearances by MPs, party leaders, or former politicians attract a swarm of journalists eager to capture their arrival and departure, with politicians themselves often keen to make public remarks.
Yet this time was different. When Premadasa emerged from the Commission, there were no journalists waiting outside. Both sides had deliberately ensured that no news of his visit was released to the media.
So why did Sajith go in such secrecy? He was summoned to provide a statement regarding allegations of financial irregularities in the rental of the “Sabitha Building” in Rajagiriya, which was leased to the Ministry of Agriculture during the Yahapalana government. The Bribery Commission has already recorded statements from former President Maithripala Sirisena, former Prime Minister Ranil Wickremesinghe, and several other cabinet ministers of that era as part of the same investigation.
Sridharan Out
Meanwhile, discontent is mounting against MP S. Sridharan among political parties in the North, within the Tamil community, and inside the Tamil Arasu Katchi Party itself. The criticism stems from Sridharan’s consistent alignment with the government despite being an opposition member. His actions have gone beyond rhetoric: most notably, he endorsed all three names submitted by the President for the post of Auditor General in the Constitutional Council, even as opposition members and civil society representatives strongly objected.
The Tamil Arasu Katchi Party had repeatedly opposed these appointments, but Sridharan appeared unmoved. Last week, civil society activist Ambiga Sathgunanathan and MP Gajendra Kumar Ponnambalam publicly condemned his stance, telling Tamil media that Sridharan owed an apology to the Tamil people.
Adding to the pressure, Batticaloa MP Shanakkanya Rasamanikkam of the Tamil Arasu Katchi Party is reportedly preparing to send a formal letter of protest to the party’s General Secretary this weekend, signaling that Sridharan’s position within the party may soon face serious challenges. Sridharan’s actions and requesting his immediate expulsion from the party.
