Guns, Millions and Questions: Avant Garde Pocketed Floating Armoury Revenue

COLOMBO (News 1st); A Committee on Public Enterprises (COPE) Sub-Committee hearing has revealed that Avant Garde had been receiving approximately US$320,000 per month for several years from revenue generated through floating armoury facilities, income that COPE members noted would otherwise have been due to the State.

The revelation emerged when Rakna Arakshaka Lanka Limited (RALL) was summoned before a COPE Sub-Committee meeting to provide details regarding its operations and its longstanding joint venture agreement with Avant Garde.

Addressing the committee, Rakna Arakshaka Lanka Limited (RALL) Chairman Retired Brigadier Jude Fernando stated that the current management was not responsible for initiating the arrangement, explaining that a joint venture agreement signed by previous officials remains in force.

He explained that weapons carried by ships transiting through Sri Lankan waters are unloaded at the Port of Galle and stored in floating armouries, as international regulations prevent such weapons from being brought ashore. According to Fernando, a fee of approximately US$1,800 is charged to store three weapons, while a further US$1,800 is charged when those weapons are retrieved.

Fernando told the committee that the floating armoury operation had become a key revenue source. However, under the joint venture arrangement, 80 per cent of the profits were allocated to the private company, while the remaining 20 per cent was divided between the Sri Lanka Navy and Rakna Lanka.

Responding to questions from COPE Sub-Committee Chairman Asitha Niroshan regarding the profitability of the operation, Fernando stated that it currently generates approximately US$400,000 per month in revenue, with 80 per cent of that amount going to the private entity involved in the venture.

When asked whether legal obstacles exist to terminating the agreement with Avant Garde, Fernando replied that legal constraints remain because the agreement is valid until 2027.

COPE member MP Prageeth Maduranga questioned who had authorised the arrangement. In response, Rakna Arakshaka Lanka Limited's Head of Legal Himasha Munasinghe stated that there was no evidence to suggest the arrangements initiated in 2009 had received Cabinet approval. Munasinghe added that the matter fell under the purview of the Ministry of Defence rather than being solely a board-level decision.

The committee also raised concerns regarding weapons under Rakna Arakshaka Lanka Limited's custody. Another officer, H.M. Fernando, informed members that records currently account for 219 weapons belonging to the company.

When questioned about the status of those weapons, he revealed that 139 firearms remain stored in overseas armouries and have not been repatriated to Sri Lanka. He further disclosed that the current whereabouts of 13 weapons are unknown.

According to officials, the missing weapons had been placed in floating armouries and efforts are ongoing to locate them through continued engagement with relevant parties.

Responding to questions over responsibility for repatriating the weapons stored abroad, H.M. Fernando stated that those involved were attempting to avoid accepting responsibility. He told the committee that seven weapons are located in Oman, 47 in South Africa, 10 in Tanzania, 51 in the Red Sea region, three in Mauritius, three in Poland and four in France.

When COPE members inquired about who would ultimately be responsible for bringing the weapons back to Sri Lanka, officials acknowledged that no party had yet agreed to take responsibility for the task.

The committee also examined financial obligations between Avant Garde and Rakna Arakshaka Lanka Limited. Officials stated that Avant Garde is required to pay Rakna Arakshaka Lanka Limited five per cent under the agreement, but these payments are frequently delayed by two to three months.

Providing further details, Chief Maritime Security Officer Retired Commodore D.L.S.M. Dias told the committee that Avant Garde currently owes Rakna Lanka approximately Rs. 3.5 million.