News Today: World Bank Fund Misuse by Sri Lankan Politicians: Millions Misallocated

Millions of World Bank funds meant to modernize Sri Lanka’s plantation sector have reportedly been misused by politicians, triggering legal action and repayment demands. Plantation and Community Infrastructure Minister Samantha Vidyarathna revealed in Parliament that funds provided under the Agriculture Sector Modernisation Project (ASMP) were disbursed to relatives, secretaries, and government associates of former ministers rather than for estate development projects.

Significant sums were reportedly allocated improperly: Rs.14 million to former Minister Daya Gamage’s wife Anoma Gamage’s company, Rs.8 million to the son of former Minister Daya Gamage’s secretary, Rs.18 million to former Minister Roshan Ranasinghe’s wife, Rs.18 million to former Navy Commander Wasantha Karannagoda, Rs.37 million to former Minister Lakshman Seneviratne’s son, and Rs.48 million to former Minister Mahinda Amaraweera’s brother.

Follow-up investigations by the World Bank confirmed that recipients did not execute any actual estate development projects. As a result, the World Bank demanded immediate repayment of US$ 508,863. The Finance Ministry communicated the situation to the World Bank, requesting additional time to pursue legal action. However, the World Bank insisted on immediate payment or threatened to halt all grants and development funds to Sri Lanka.

Consequently, the Cabinet approved the release of funds to settle the debt, while the Attorney General’s Department has filed cases against the individuals involved to recover the misused money. This incident highlights the urgent need for stronger accountability measures in managing international development funds and preventing World Bank fund misuse by Sri Lankan politicians.