In a dramatic turn of events, the 'deleted' phone conversations belonging to Perpetual Treasuries Private Limited were played before the Presidential Commission of Inquiry Into the Treasury Bonds issue, this morning.

The Criminal Investigations Department (CID) had recovered the conversations which had been deleted from the communications system of the company.

The telephone conversations revealed that Perpetual Treasuries owner Arjuna Aloysius had given inside information to its CEO Kasun Palisena on the Treasury Bonds auction and bids.

They also revealed that Aloysius, the son-in-law of former Central Bank Governor Arjuna Mahendran received confidential and sensitive information on the auction.

During the telephone conversations with Palisena, Aloysius had attributed inside information to his "friends from powerful places."

 It was earlier revealed that the telephone conversations were deleted from the internal system of the company on the instructions of its CEO Palisena.

 PTL Chief Dealer Nuwan Salgado also appeared before the commission to give his evidence.

 It is learnt that Aloysius will be summoned to testify before the Presidential Commission soon.

"Former Army Commander Field Marshal Sarath Fonseka said yesterday that his successor, former Army Commander Jagath Jayasuriya was responsible for alleged crimes during the time of war. 

"Many things happened under him. In fact I wanted to investigate into his conduct. The moment I started the investigation, I was removed from the position as the Army commander," Fonseka said, speaking to the media, in Colombo. 

Although he did not specify the alleged crimes in which Jayasuriya was involved, he said the latter was in charge of supply chains during the final phases of war and the security of LTTE suspects taken into custody. 

"I have information about the crimes he committed. If there is a proper legal process, I am ready to present the information I have," he added. 

The Rajapaksas wanted to use him for various misdeeds. That's why he was made the Army Commander. I categorically stated he was not suitable to be the Army Commander. But the Rajapaksas wanted him," the former Army Commander, now a Minister of the Sirisena-Wickremesinghe government, added. 

"One of the misdeeds he committed was arresting me after the Presidential election in 2010. Everyone knows how it happened."

Fonseka said the Rajapaksa administration overlooked nearly 17 senior Army officer when it appointed Jayasuriya as the Commander.

Indian External Affairs Minister Sushma Swaraj, addressing the 2nd Indian Ocean Conference (IOC) in Colombo yesterday said the vision for the Indian Ocean region was to ‘preserve organic unity’ while ‘advancing cooperation’ between neighbouring countries.

“We will use our capabilities for the collective wellbeing, and the mutual benefit of our maritime neighbours and island states in building their capabilities,” the Indian External Affairs Minister said.

She said India considered it ‘an imperative’ that those who live in this region bear the primary responsibility for the peace, stability and prosperity of the Indian Ocean.

Swaraj said this vision was evident with the concept SAGAR - ‘Security and Growth for All in the Region’ – put forth by Indian Prime Minister Modi in March 2015.

SAGAR includes enhancing capacities to safeguard land and maritime territories and interests, deepening economic and security cooperation in the littoral and promoting collective action to deal with natural disasters and maritime threats, among other proposals.

Swaraj said she looked forward to the rest of the conference, where the “myriad synergies that bring this region together and connect it to the world” would be discussed towards creating a “meaningful cooperative strategy for ensuring peace, progress and prosperity in this region”.

Sri Lanka Police announced today that a special security force of close to 1, 000 officers will be used to maintain order at the 4th One Day International (ODI) against India at the R. Premadasa Stadium tomorrow (31).

Police said that in addition to the 1, 000 strong security force, CCTV cameras would be set up at key locations in order to monitor the behavior of the crowd and to ensure no disruption is made to the game of cricket.

Police requested the public to behave decorously at the 4th ODI against India and said that specifically, those throwing objects onto the ground and those attempting to breach the grounds would be taken to book.

Play was halted at during the 3rd ODI against India when the angry Sri Lankan fans began to throw objects to the ground in protest of the abysmal performance of the Sri Lanka cricket team throughout the series.

Former World Cup cricket captain and current Petroleum Resources Development Minister Arjuna Ranatunga has fired off a four-page missive to President Maithripala Sirisena, highlighting what he has termed the ‘dismal’ state of Sri Lanka cricket.

“I believe people elected me as a politician, not just because my family is linked to politics but also because of the respect and honor I brought the sport,” the Minister said, reminding the President of his 1996 World Cup victory.

“As a cricket player, as a citizen of this country, and man who unconditionally loves the sport, I cannot remain silent when the game of cricket is being pushed to the brink,” he said, drawing attention the policies driven by ‘gamblers’ within the cricket administration.

He pointed out that the new government had come into power ‘on the promise of establishing rule of law, the independence of the judiciary and democratic ideals’ and that ethos must seep into the highly politicized cricket administration as well.

Referring to Sri Lanka Cricket (SLC) President Thilanga Sumathipala, the Petroleum Resources Development Minister said it was no secret that Sumathipala’s family was involved ‘book-keeping’ and other forms of gambling.

“There is a clause within the Sports Act that holds that no person linked to gambling, selling cricket equipment or with ties to the media can hold office, he said, “despite this, Sumathipala was elected as President in direct contravention of the law.”

He said three successive Sports Ministers had rejected Sumathipala’s nomination in keeping with Sports law, but the present Sport Minister and his cronies had approved Sumathipala as President, signaling the downfall of Sri Lanka Cricket.

Volunteering his ‘sincere commitment’ to the sport, the Petroleum Resources Development Minister entreated the President to change cricket’s administration body and to set up a commission or committee to look into the ailing sport.

The draft Local Government Election Bill was passed in Parliament this morning with 120 MPs voting ‘for’, 44 MPs abstaining and none voting against the Bill.

MPs of the Janatha Vimukthi Peramuna (JVP) and the Tamil National Alliance (TNA) abstained from voting the Bill into law.

A tense situation arose in Parliament when members argued on if the draft Bill should be called for a third reading before being passed.

However a vote on the decision was taken and the Bill was passed in Parliament without delay.

Meanwhile, the draft Inland Revenue Bill which was scheduled for debate today, was moved to August 30.

Justice and Buddhasasana Minister Wijeyadasa Rajapakshe had not turned up at the United National Party (UNP) Parliamentary group meeting yesterday, and the Premier had said Rajapakshe’s ‘grace period’ was over and promised a decision ‘today or tomorrow’, Social Empowerment, Welfare and Kandyan Heritage Minister Ranjan Ramanayake told reporters.

 Speaking to reporters at the conclusion of a special meeting of the United National Party (UNP) Parliamentary group at the Temple Trees yesterday, the Minister said, “He was given time until Monday (21). Today is Monday. His time is up, the Prime Minister said he will meet with him and come to a decision today or tomorrow.”

“We have nothing personal against the Minister,” Minister Ramanayake continued, “ And we have no problem with him staying on as Buddhasasana Minister – but we do have a problem with him holding the portfolio of Justice Minister because as a lawyer he is protecting those close to him.

Minister Ramanayake said the Justice and Buddhasasana Minister was protecting his ‘clients’ – “Avant Garde’s Nissanka Senadhipathi, Gotabhaya Rajapaksa – these are his clients, and there is no progress with those cases because he is protecting his clients, so we have lost faith in him,” the Minister explained.

The Development Lotteries Board and the National Lotteries Board were brought back under the Ministry of Finance this morning.

The two lotteries boards had been previously assigned to the Foreign Affairs Ministry.

During the Cabinet reshuffle on May 22, the Development Lotteries Board and the National Lotteries Board were brought under the then newly appointed Foreign Affairs Minister Ravi Karunanyake.

Ravi Karunanyake was previously the Minister of Finance and the two lotteries boards were assigned to him, despite protest from the general public.

Ravi Karunanyake resigned from his post as Foreign Affairs Minister on August 10.

Justice and Buddhasasana Minister Wijeyadasa Rajapakshe this morning defended himself against accusations brought by members of his own United National Party (UNP) who were agitating for a no-confidence motion against him.

Rajapakshe assured party members he would not work to reverse the Hambantota Port agreement and said he ‘could do nothing’ to speed up the legal processes initiated against top members of the previous government.

At least 70 members of the UNP had reportedly aligned themselves against the Justice and Buddhasasana Minister after he made a comment to a weekend newspaper saying he would regain the Hambantota port that was leased for 99-years to China.

Rajapakshe has also been blamed for delays in prosecuting top members of the previous government. Several investigations have been begun against top members of the previous regime but have seen little progress.

The UNP is set to decide on if a no-confidence motion will be brought against the Justice and Buddhasasana Minister although the party's stance remains noncommittal.

The United National Party (UNP) Working Committee is to meet this morning (17) to make a decision on the status of the proposed no-confidence motion against Justice and Buddhasasana Minister Wijeydasa Rajapaksa.

At least 70 UNP parliamentarians have reportedly signed the no-confidence motion against the Minister but the party’s official stance remains that it will not bring a no-confidence motion against the Minister.

The issue is to be thrashed out at the Working Committee meeting and while party stalwarts expect a favourable outcome, a proportion of the party members are calling for the resignation of Rajapaksa over comments he made regarding the Hambantota Port.

In an interview with a vernacular weekend newspaper the Justice and Buddhasasana Minister said he would regain the Hambantota Port that was leased out to China at a publicized event on July 29.