The Right to Information (RTI) Commission has ordered Sri Lanka’s Department of External Resources (DER) to release a 2017 loan agreement linked to the Katana Water Supply Project, ruling that continued secrecy is not justified and that the public interest outweighs potential harm from disclosure.
The Commission directed that the USD 54.8 million loan agreement signed between the China Development Bank and the National Water Supply and Drainage Board be released on or before February 28, 2026. It warned that failure to comply could result in prosecution of the public authority and its information officer under the Right to Information Act.
The order follows an appeal filed by economist Dr. M. Sarvanathan, who sought copies of multiple Chinese-funded infrastructure loan agreements under the RTI Act. While most of the agreements were released during the appeal process, the Katana Water Supply Project loan remained undisclosed, with authorities citing confidentiality and ongoing debt restructuring negotiations.
In its decision, the Commission found that the Department of External Resources had not followed the mandatory procedures under the RTI Act when refusing disclosure, including failing to properly consult the third-party lender within the required timelines. The Commission said the department’s earlier claim that lenders had objected to disclosure was misleading, as the correspondence relied upon predated the information request.
The Commission also rejected arguments that disclosure would harm Sri Lanka’s foreign relations, economic stability, or debt restructuring negotiations, noting that the agreement in question was an outdated original contract that would be superseded by new restructuring agreements. It said the agreement related to an essential public service and that citizens have a right to examine how public funds and foreign loans were managed.
“There is no doubt that the debt restructuring process and the original agreements are of enormous public interest,” the Commission said, adding that access to such information is linked to financial accountability and constitutional rights under Article 14A.
The Commission ruled that the public interest in disclosure outweighed any potential harm and ordered the release of the agreement free of charge, as required under RTI rules. (Newswire)