The Shady Nano-Fertilizer Deal That Crushed Sri Lanka’s Agriculture under Gotabaya Rajapaksa

-By A Special Correspondent

(Lanka-e-News -31.May.2025, 11.30 PM)

Overpriced Import:

Sri Lanka imported nano-nitrogen fertilizer at USD 12.45 per 500ml—nearly four times the market rate (USD 3.23)—costing USD 29.4 million. The Samagi Jana Balawegaya filed a complaint with CIABOC alleging misappropriation and political profiteering.

Suspicious Payments:

USD 1.275 million was transferred to a new private account at People’s Bank Town Hall branch under United Farmers Trust Limited (UFTL) for 100,000L of fertilizer from IFFCO. Only USD 300,000 went to IFFCO; the rest remains unaccounted. MP Vijitha Herath exposed the discrepancy, pointing to financial mismanagement.

Political Links:

UFTL, formed on 18 Oct 2021 (a day before the import), was led by Mohan Perera and G.M. Weerasinghe, reportedly close to powerful ministers. IFFCO named UFTL its local agent, bypassing established channels. Herath alleged Dr. P.B. Jayasundara, Secretary to the President, pressured People’s Bank to open UFTL’s account—an unusual move deviating from protocol.

Land Allocation:

Minister of Lands at the time S.M. Chandrasena confirmed a large land parcel (up to 100 acres) in Mihintale was given to UFTL for local nano-fertilizer production. The Land Reform Commission’s legal director declared the Rs. 700 million allocation illegal, raising concerns over political favouritism and misuse of public funds.

Lack of Transparency:

UFTL’s rapid formation, opaque financial flows, and privileged access to state land suggest it was a front for politically connected actors. Public disclosures and investigations remain insufficient.

Key Questions for Authorities:

- Why was Mihintale land given to UFTL without transparent vetting, despite LRC's claim the Rs. 700M was illegally allocated?

- How did a one-day-old company with no track record become IFFCO’s official agent?

- What happened to the missing USD 888,000 from the UFTL account?

- Has the alleged intervention by Dr. Jayasundara been properly investigated?

- What steps are being taken against those responsible for the USD 29.4M overpriced deal?

- Why has Mohan Perera faced no legal consequences?

- What’s the current status of the Mihintale land and the organic fertilizer project?

- How will the government ensure transparency and prevent such scandals in the future?

Source: https://www.newsfirst.lk/2021/10/26/govt-already-released-lands-for-private-company-in-indian-fertilizer-scandal-sm

-By A Special Correspondent

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by     (2025-05-31 23:11:13)

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