By Ruwan Weerakoon
(Lanka-e-News -2026.July.30, 11.30 PM) Sixteen years after one of Sri Lanka’s most controversial state land transactions, the sale of six acres of prime military headquarters land at Galle Face to the Hong Kong-based Shangri-La Group has re-entered the spotlight. Anti-corruption campaigners are driving renewed calls for investigations into an alleged US$5 million bribery scheme involving former President Mahinda Rajapaksa and members of his family.
The deal, finalized in December 2010, involved the outright sale of the strategically located beachfront property to Shangri-La for US$75 million. From its inception, opposition politicians and civil society groups fiercely contested the transaction. Critics argued that the land was handed over without a competitive open-tender process at a "dirt low" price, resulting in substantial financial losses for the state.
At the core of the fresh inquiry is a complaint alleging that a US$5 million bribe (valued between Rs. 900 million and Rs. 1 billion at the time) was paid to facilitate the sale. According to filings submitted to investigative authorities:
Offshore Routing: The illicit funds were allegedly funneled through two British Virgin Islands-incorporated entities: TPL Inter and Helliard.
Consultancy Cover: These companies were reportedly established under the pretense of providing consultancy services for the Shangri-La Colombo project to mask the gratification payments.
Onshoring the Funds: Portions of the money were subsequently transferred back to Sri Lanka. Investigators claim funds were routed through a prominent local private financial institution and placed into fixed deposits under a company named Amtrad, as well as used to acquire private real estate in Gampaha and Matara for the Rajapaksa family.
Key elements of these claims stem from an affidavit submitted on October 28, 2015, to the former Financial Crimes Investigation Division (FCID) by Chidambaram, a Singaporean businessman and owner of TPL Inter.
Statements attributed to former parliamentarian Sajin Vass Gunawardena, once a key insider in the Rajapaksa administration, further detail how the funds were allegedly deployed. Gunawardena reportedly stated that the money was used to:
Purchase the Tangalle Bay Hotel for two of former President Rajapaksa's sons.
Finance operational expenses for the Carlton Sports Network (CSN) media company.
Adding to the controversy, an unverified audio recording circulating on social media allegedly features a conversation between Gunawardena and former minister Lohan Ratwatte, during which Gunawardena claims to have received death threats from members of the Rajapaksa family.
While investigations into the Shangri-La deal have stalled for nearly a decade, the case has regained traction under intensified anti-corruption drives led by the Commission to Investigate Allegations of Bribery or Corruption (CIABOC).
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by (2026-07-30 19:00:00)
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