Former President, Mrs. Chandrika Bandaranaike Kumaratunga in an affidavit filed in the Supreme Court had said that she did not flout the law or abuse any power vested in her as President, when she presented a cabinet paper to alienate land at Battaramulla to Asia Pacific Golf Course Private Limited.

She denied having misled the cabinet or breached the trust of the people or even obtained any pecuniary benefits.

The BOI had proposed to setup a recreation site for high spending tourists, a site similar to the Digana Golf Course, which is popular among the tourists. The Digana Golf Course had paved the way for a number of tourist hotels in that area. The terrorist attacks of 1997/98, on the Central Bank and the Galadari Hotel, had made it difficult for the BOI to attract investors. The BOI had consequently proposed concessions to the investors. A 99 year lease of state land at Battaramulla was proposed. A cabinet paper was submitted by Mrs. Kumaratunga on a proposal made by the BOI, to lease land at Battaramulla to a foreign investor, for a developmental project, which would draw in foreign exchange. But, what had ultimately turned out at the Waters Edge Golf Club was not what was originally proposed. On 28 July 2004, Mrs. Kumaratunga, on the advice of the Attorney General, had proposed a cabinet paper to terminate the contract with the Asia Pacific Golf Course Pvt Limited.

Mrs. Kumaratunga has requested the Supreme Court to dismiss the petition filed by two public interest litigants, alleging mala fide practice in the alienation of state land to a Japanese entrepreneur to construct the Waters Edge Golf Course at Battaramulla. She had asked for suitable compensation for the pain of mind caused to her by the petitioners.