The Sri Lankan government is facing sharp criticism following explosive claims by Wasantha Mudalige of the National People’s Struggle Movement, who alleges that 3071 acres of land across strategic regions—mainly in Trincomalee—are being handed over to Indian investors under a controversial bilateral agreement.
According to Mudalige, the most alarming element of the deal is the designation of 620 square kilometers in Trincomalee—an area comparable to the entire city of Colombo—as an exclusive Indian economic zone. He accuses the government of trading away national territory under the pretense of development.
Mudalige outlines a series of proposed projects, including an expressway from Trincomalee to Mannar and an international cricket stadium. He argues these developments are being driven by Indian interests, while Sri Lankan communities are being pushed aside.
Among the lands involved are 851 acres at the Trincomalee Oil Tank Complex—where 62 tanks are reportedly already leased to India—831 acres for a power plant in Sampur, 900 more acres for an economic zone in the same region, 100 acres in Kuchchaveli for gem mining, and 900 acres in Muthunagar, with 800 dedicated to a solar panel project.
Mudalige also claims India plans to construct an oil refinery in Trincomalee to fuel ships operating at both Colombo and Trincomalee ports, further entrenching Indian control in vital economic corridors.
Perhaps most controversially, he alleges that Trincomalee’s fishing community will be forcibly removed to make way for entertainment zones designed for Indian investors—a move that could displace entire coastal populations.

