A COPE Sub-Committee hearing has revealed that private security firm Avant Garde has been retaining approximately 80 percent of revenues from weapon storage facilities at Sri Lankan ports, raising questions about state finances and contract oversight.

A parliamentary committee inquiry has brought to light a long-standing commercial arrangement between state entity Rakna Arakshaka Lanka Limited (RALL) and private security company Avant Garde involving the storage of weapons aboard vessels in Sri Lankan waters. According to testimony before a Committee on Public Enterprises (COPE) Sub-Committee, the private firm has been collecting the majority of revenues generated through floating armoury operations at the Port of Galle, where international maritime regulations require weapons to be kept offshore rather than brought ashore.

Rakna Arakshaka Lanka Limited Chairman Retired Brigadier Jude Fernando explained that the joint venture arrangement, initiated in 2009, allocates 80 percent of profits to Avant Garde, with the remaining 20 percent shared between the Navy and RALL. The operation currently generates approximately US$400,000 monthly in revenue. However, Rakna's Head of Legal Himasha Munasinghe revealed that no evidence exists of Cabinet approval for the arrangement, and legal constraints prevent termination before 2027. COPE members questioned who had authorized the original agreement, with officials suggesting responsibility fell to the Ministry of Defence.

The hearing also uncovered significant accountability gaps regarding weapons custody. Of 219 weapons recorded as belonging to RALL, 139 remain stored in overseas facilities and have not been returned to Sri Lanka. Thirteen weapons are unaccounted for, with officials attributing their disappearance to placement in floating armouries. Weapons are currently scattered across multiple countries including South Africa, Tanzania, Oman, and Mauritius. Officials acknowledged that no party has accepted responsibility for repatriating these weapons.

Additionally, Avant Garde has fallen behind on payments owed to RALL under the agreement, currently owing approximately Rs. 3.5 million, with payments regularly delayed by two to three months.