Sri Lanka Navy reveals Rs. 782 Million unpaid, past security risks in joint venture

The Sri Lanka Navy yesterday (February 25) disclosed that Rs. 782 million owed for floating armoury services remains unpaid, as it resumes full control of maritime security operations and reports earnings of over USD 699,000 in foreign exchange.

At a special media briefing, the Navy clarified issues relating to past and present maritime security operations linked to floating armouries.

Rear Admiral Harsha de Silva, Director General (Operations), stated that around September 10, 2009, the Navy began providing storage and transport services for foreign-owned weapons and equipment used by armed maritime security personnel aboard commercial vessels. He said these activities were conducted in accordance with accepted international standards, and the revenue generated was directed to the Government of Sri Lanka.

He explained that from 2012 to 2015, again from November 2015 to 2021, and later from September 2021 until the recent restructuring of operations, maritime security services were managed as a public-private joint venture, based on decisions taken by successive governments.

Under this arrangement, a private company paid only a limited percentage of its earnings in US dollars to the Navy, with payments made in Sri Lankan rupees. In some instances, contractual payment obligations were not fulfilled. Rear Admiral de Silva noted that permitting the storage and transport of foreign weapons under a public-private structure, given the sensitive nature of such operations, posed potential national security risks.

He further revealed that Rs. 782 million due to the Navy for services rendered remains outstanding from the private partner.

Navy Spokesperson Commander Buddhika Samapath said that under a renewed and legally compliant framework granted to the Navy, maritime security operations have now resumed under full naval control.

From October 3, 2025 to February 25, 2026, the Navy conducted 404 maritime security missions, earning more than USD 699,000 in foreign exchange.

He said the entire amount has been remitted directly to the government to support national economic recovery efforts.