November 13, Colombo (LNW): Plantation and Community Infrastructure Minister Samantha Vidyarathna revealed in Parliament yesterday that significant sums allocated under a World Bank–backed agricultural modernisation initiative had been misappropriated by associates and relatives of former ministers, rather than being used for genuine development within the plantation sector.
According to the Minister, the Agriculture Sector Modernisation Project (ASMP), designed to revitalise Sri Lanka’s plantation industry, was exploited to channel funds to politically connected individuals. Among the beneficiaries, he claimed, were family members and aides of several ex-ministers, including payments of Rs. 14 million to a company owned by former Minister Daya Gamage’s wife, Rs. 8 million to the son of Gamage’s secretary, Rs. 18 million to former Minister Roshan Ranasinghe’s spouse, Rs. 18 million to former Navy Commander Wasantha Karannagoda, Rs. 37 million to the son of ex-Minister Lakshman Seneviratne, and Rs. 48 million to the brother of former Minister Mahinda Amaraweera.
Vidyarathna noted that a subsequent World Bank audit found no trace of the promised estate improvement projects, confirming that the funds had been misused. In response, the international lender has demanded the Sri Lankan government reimburse the amount immediately, warning that failure to do so could jeopardise future development assistance.
“We appealed for time to pursue legal action and recover the money through proper channels,” Vidyarathna said, “but the World Bank declined, insisting on immediate repayment.”
Consequently, the government was compelled to seek Cabinet approval to release US$ 508,863 to settle the outstanding debt. The Attorney General’s Department, he added, has now initiated legal proceedings to reclaim the misappropriated funds from the individuals concerned.
