Colombo, January 28 – After nearly a decade of delays, the Attorney General has formally indicted Parliamentarian Namal Rajapaksa at the Colombo High Court, accusing him of misappropriating Rs. 70 million from the controversial Krish Transaction. But what exactly is this case, and how did a foreign investment deal turn into one of the biggest corruption scandals in Sri Lanka’s political landscape?
What is the Krish Transaction?
The Krish Transaction refers to a multi-million-dollar real estate deal involving Krish Transworks Pvt Ltd, an Indian investment company, which was granted a 99-year lease on prime land at 114 Chatham Street, Colombo Fort, to construct the tallest mixed-use development in South Asia.
The project was initially envisioned as a luxury development consisting of three high-rise towers, set to redefine Colombo’s skyline. The lease agreement was signed between Krish Transworks Pvt Ltd and the Urban Development Authority (UDA), with payments made between 2013 and 2016.
The company behind this project, Krish Transworks Pvt Ltd, was established in 2012 with two key directors – Indian businessman Amit Katyal and Gitanjali Janaki de Zoysa Siriwardena.
In 2017, after facing financial and legal complications, Krish Transworks Pvt Ltd rebranded itself as “The One Transworks Square Pvt Ltd”. However, despite the high-profile nature of the project, construction stalled, and it remains incomplete to this day.
How Did Namal Rajapaksa Get Involved?
The controversy erupted when Wasantha Samarasinghe, the current Minister of Trade, Commerce, Food Security, and Cooperative Development, filed a complaint with the Anti-Corruption Committee on December 26, 2015.
Samarasinghe, who was then the convener of the ‘Voice Against Corruption’ movement, alleged that large-scale financial fraud had taken place in the leasing of the Chatham Street land to Krish Transworks.
Following the complaint, the Police Financial Crimes Investigation Division (FCID) launched an in-depth investigation, uncovering a suspicious transaction linked to Namal Rajapaksa.
The FCID discovered that R.P. Gupta, a director of Krish Transworks Pvt Ltd, had transferred Rs. 70 million to Premium Sports Pvt Ltd, a company owned by businessman Nimal Hemasiri Perera, allegedly at the request of Namal Rajapaksa.
The money was transferred in three separate installments:
- Rs. 40 million was deposited into Perera’s HSBC bank account on October 18, 2012.
- Rs. 10 million was transferred on November 10, 2012.
- Rs. 20 million was sent to Perera’s Sampath Bank account on December 18, 2012.
Namal Rajapaksa later claimed in his statement to the FCID that these funds were intended to sponsor the 2013 Super Seven Rugby Tournament. However, the directors of Premium Sports Pvt Ltd denied receiving any such money, leading to suspicions that the funds were illegally misappropriated.
Arrest and Legal Proceedings
On July 11, 2016, the FCID arrested Namal Rajapaksa, citing financial misappropriation and money laundering concerns. He was remanded in custody for nearly a week before being released on bail on July 18, 2016.
However, despite the arrest and FCID’s findings, no formal legal action was pursued for nearly nine years due to political shifts and the eventual disbanding of the FCID.
Meanwhile, in 2017, Krish Transworks Pvt Ltd rebranded itself as “The One Transworks Square Pvt Ltd,” and a new set of directors took charge of the project. Some critics suspect that the rebranding was an attempt to erase traces of the scandal.
What Happened to the Krish Tower Project?
Despite its grand vision, the Krish Tower project remains incomplete. Only one of the planned three towers was partially built, and construction has been at a standstill for years.
In late 2024, sections of the building collapsed, damaging a nearby vehicle. The Colombo Magistrate’s Court later issued an order demanding that the structure be maintained to prevent further hazards.
Why Has the Attorney General Indicted Namal Rajapaksa Now?
The final FCID report on Namal Rajapaksa’s involvement was submitted to the Attorney General’s Department in 2016. However, legal action stalled for years.
Now, on January 28, 2025, the Attorney General has officially filed an indictment against Namal Rajapaksa, marking a significant development in one of Sri Lanka’s longest-running financial scandals.
Many speculate that the indictment is a result of increasing pressure from anti-corruption watchdogs and renewed efforts by the current government to clean up political corruption.
What Happens Next?
The case will now proceed in the Colombo High Court, where Namal Rajapaksa will face charges of criminal misappropriation under Sri Lanka’s Money Laundering and Financial Crimes laws.
If convicted, he could face severe legal consequences, including heavy fines and potential imprisonment.
As the legal proceedings unfold, Sri Lanka watches closely, waiting to see whether this case will finally bring accountability or fade into political obscurity like many corruption cases before it.
A Decade-Long Scandal That Won’t Go Away
The Krish Transaction scandal serves as a glaring example of how foreign investments in Sri Lanka can turn into massive corruption scandals.
With over Rs. 70 million allegedly misappropriated, a stalled real estate project, and a high-profile political figure facing indictment, the case raises important questions about the country’s legal system, political accountability, and foreign investment policies.
Will this case lead to justice, or will it become another forgotten chapter in Sri Lanka’s long history of political corruption? Only time will tell.
