Hon. Arun Hemachandra - Deputy Minister of Foreign Affairs and Foreign Employment

¶ 01 Hon. Deputy Chairperson, the Companies (Amendment) Bill before the House for Second Reading is very timely and important. Unfortunately, apart from one or two, the Opposition benches are empty; perhaps understandably, given what is being discussed.

¶ 02 Before I proceed, today is a very significant day. In 1983, under the UNP Government led by J.R. Jayewardene, a chauvinistic pogrom was unleashed for political gain, a most unfortunate event. There had been opportunities before 1983 to find a solution to the national question, but those opportunities were shattered. As a Government, we have a duty to build national harmony and ensure such events never recur. As a JJB Government, we are firmly committed to that.

¶ 03 I heard the Opposition Leader earlier link the current amendments to a land issue in Muththunagar, Trincomalee, naming a related company. As the Chair of the Trincomalee District Coordinating Committee, I must respond. Muththunagar, near Kappalthurai, is one of 13 GN divisions affected: from Makkucha Mahamayapura to Singhapura, Kappalthurai, Karachchavattikudda, China Bay, Muththunagar, Sumedhankarapura, Linganagar, etc. These lands were vested in the Port Authority in 1984, when the Opposition Leader’s father was Prime Minister—while people were resident there. The issues escalated during the yahapalana period, particularly under then Ports Minister Arjuna Ranatunga, who engaged with the said companies. We must now inquire whether he stood behind granting lands to those companies then.

¶ 04 These amendments will allow us to change much. The Bill strengthens transparency and addresses “shell companies,” which we saw entering tenders as fake firms—including in the notorious human immunoglobulin procurement in the health sector. If such matters had been exposed earlier, more could have been done. The lack of transparency has caused many problems.

¶ 05 We faced a massive economic and social crisis recently, with fuel queues and social breakdown. Political culture must be held accountable. When reforming that culture, some fear it may affect them—but we should not fear. We must move swiftly with reforms in line with FATF and the 2023 IMF programme. Earlier Governments entered IMF programmes 16 times but failed to complete them due to inability to pass progressive laws.

¶ 06 We are here to change corruption, fraud, waste, malpractice, and a wrong political culture. Using shell companies, tender procedures were abused—whether in the Kheliya Rambukwella incident or Sajin Vaas Gunawardena’s aircraft deals. Through these amendments we can curb such practices and ensure transparency.

¶ 07 We saw black-money operators hide behind “charitable foundations.” The “Siriliya” account, with even a fabricated national ID, was used; under these amendments such abuses will not recur. The “Pushpa Rajapaksa Foundation” also received funds from entities accused of misuse. Carlton too had its hand in many businesses—preschools, sports channels, and more. We can now put an end to such structures.

¶ 08 Internationally, note the US action against HSBC—a US$1.9 billion penalty for links to drug cartels. Organized crime proceeds are parked in companies and hotels here. This Bill allows us to observe and control them, empowers the Registrar of Companies, and strengthens CIABOC and the FIU.

¶ 09 We believe this is a revolutionary transformation. We urge all to support these amendments, to build transparency and deliver real change. Thank you.