SRI LANKA: Showdown at Dambulla: Traders Defy Government Plan to Hand Economic Centers to Private Company
By Lions Roar Aotearoa Economic & Political Desk
DAMBULLA, SRI LANKA (Sunday, February 1, 2026) — Tensions reached a boiling point at the Dambulla Economic Center yesterday as traders vehemently rejected a government proposal to transfer the administration of five major economic hubs to a newly formed private company.
The confrontation occurred during a heated discussion chaired by Minister of Trade, Commerce, Food Security, and Cooperative Development, Wasantha Samarasinghe, alongside Deputy Minister Sunil Biyanwila and senior officials.
🏛️ The Government’s Plan: Corporate Overhaul
Minister Samarasinghe informed the business community that the government intends to shift five economic centers—Dambulla, Nuwara Eliya, Thambuththegama, Keppetipola, and Narhenpita—away from the current Management Trust system.
- New Structure: A new company will be established with seven directors to oversee administration.
- Financial Shift: Starting next month, all monthly taxes and administrative fees must be paid to this new entity.
- Objective: The Minister argued the corporate move is designed to ensure a “fair market” for the public and modernize administration without stripping farmers or traders of their rights.
🔥 The Backlash: “We Built This Without the State”
The traders’ response was immediate and fierce. Business leaders accused the Minister of attempting a “hostile takeover” of institutions they have nurtured for over 35 years.
Key Arguments from Traders:
- Self-Sufficiency: Traders pointed out that the Dambulla Economic Center has operated for 29 years without government funding, even saving Rs. 250 million (25 Crores) in its Management Trust while funding development projects independently.
- Farmer Support: The community reminded the Minister that they provide interest-free loans and seeds to farmers, sustaining the vegetable supply chain themselves.
- Legal Battles: Traders revealed they have already taken legal action against a previous company name submitted to the Cabinet, accusing the Minister of “surreptitiously” changing the company name to bypass the court process.
- Lack of Cabinet Approval: The business community alleged that this specific new company has not yet received formal Cabinet approval.
🤝 Broken Election Promises?
During the heated exchange, traders reminded Minister Samarasinghe of a specific promise made by President Anura Kumara Dissanayake during his campaign in Dambulla.
“The President promised us a 30-year lease agreement to secure our businesses,” a representative shouted. “Now, you are trying to hand us over to an unknown company.”
Minister Samarasinghe reportedly remained silent regarding the President’s campaign promise during the meeting.
📊 The Five Economic Centers Slated for Transfer
| Location | Status | Key Feature |
| Dambulla | Major Hub | Largest in Sri Lanka; Rs. 250m in savings. |
| Nuwara Eliya | Upcountry Supply | Essential for temperate vegetables. |
| Thambuththegama | Paddy & Veg | Crucial for the North Central Province. |
| Keppetipola | Regional Hub | Major link between Uva and Central provinces. |
| Narahenpita | Urban Access | Primary supply point for the Colombo district. |
🔍 The Minister’s Retreat
Faced with overwhelming opposition and accusations of administrative overreach, Minister Samarasinghe softened his stance toward the end of the meeting. He admitted the company name had been changed after the initial Cabinet approval and stated that new approval would be sought.
He has agreed to suspend the immediate handover and schedule a follow-up date to discuss the specific terms and agreements between the proposed company and the traders.
