When defamation turns into a half-billion rupee bill, even the biggest publishers discover that words are not always cheap.
The Supreme Court of Sri Lanka has delivered a landmark ruling that leaves state-owned publishing giant Lake House nursing one of the most expensive legal defeats in its history. After nearly two decades of courtroom battles, the company has been ordered to pay Rs. 500 million in compensation to former minister Wijayadasa Rajapaksa for defamation.
The ruling came today (14), when the Supreme Court dismissed Lake House’s final appeal, upholding the earlier decisions of the Colombo District Court and the Colombo Civil Appeal Court. This effectively seals the publisher’s fate, forcing it to honor the Rs. 500 million judgment in favor of Rajapaksa.
The saga traces back to November 2007, when Rajapaksa, then a Member of Parliament representing the United People’s Freedom Alliance (UPFA), initiated legal action against United Newspapers Limited, better known as Lake House. He alleged that defamatory and malicious statements targeting him had been published in the widely circulated Silumina newspaper, appearing across two full pages. The case, filed in 2009, sought Rs. 500 million in damages for what Rajapaksa described as a deliberate and hateful attack on his reputation.
In 2010, the Colombo District Court agreed with Rajapaksa, ordering Lake House to pay the colossal compensation. Unsurprisingly, the company challenged the decision, escalating the matter to the Colombo Civil Appeal High Court. However, that attempt backfired in 2013 when the appeal was dismissed.
Refusing to concede defeat, Lake House then took the battle to the Supreme Court, hoping to overturn the costly verdict. But after years of drawn-out legal arguments and hearings, the country’s highest court today dismissed the appeal once and for all. The judgment, delivered by a bench comprising Justices Janak de Silva, Achala Vengappuli and Sobitha Rajakaruna, brings the protracted saga to its dramatic conclusion.
For Rajapaksa, who has long insisted that his character was unfairly tarnished, the decision marks vindication after years of waiting. For Lake House, it is not just a financial disaster but also a damaging blow to its credibility, as the ruling underscores how defamatory journalism can carry monumental consequences.
Legal heavyweights represented both sides in this marathon case. Senior Counsel G. G. Arulpragasam advised President’s Counsel Kuwera de Zoysa, who appeared alongside Attorneys Sajana de Zoysa and Randhivari Arangala on behalf of Rajapaksa. Lake House was represented by President’s Counsel Fais Musthapa.
The Rs. 500 million penalty is not only one of the largest defamation compensations in Sri Lanka’s legal history but also a powerful warning to the media industry. While freedom of expression remains a cornerstone of democratic society, today’s verdict demonstrates that it cannot be weaponized without accountability. Words may influence, inspire, or entertain, but when used recklessly, they can cost dearly—literally half a billion rupees.
