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Sheer negligence on the part of Treasury, Parliament revealed

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ICTA, a state entity outside public scrutiny; billions of rupees lost

By Shamindra Ferdinando

The Information and Communication Technology Agency (ICTA) of Sri Lanka has not been subjected to proper Treasury or parliamentary oversight though it is a vital state institution, the Committee on Public Enterprises (COPE) has revealed.

The failure on the part of successive governments to ensure proper oversight has revealed massive losses amounting to billions of rupees over the years, recent COPE investigations have found.  

Responding to The Island queries, authoritative sources said that the ICTA, established in terms of the Information and Communication Technology Act No. 27 of 2003, (ICT Act) and amended by Act No. 33 of 2008, had operated outside government scrutiny.

Their response to AG’s query on its operations had been callous with the Chief Executive Officer (CEO) asserting the institution did not have to answer such questions.

The ICTA was set up in 2003-2004 with funds made available by the World Bank, during Ranil Wickremesinghe’s tenure as the Premier received WB backing, in 2011. ICTA has since been funded by taxpayers’ money though the Treasury and Parliament have turned a blind to what was going on, according to sources.

Top ICTA management had been paid outside the public sector salary structure with the CEO entitled for Rs. 755,000 a month, Legal Advisor Rs. 620,000, Senior Project Manager Rs. 525,000, Chief of Projects Rs. 535,000 and eight Project Managers Rs. 245,000 each, sources said.

Parliamentary watchdog committee COPE under the leadership of SLPP National List MP Prof. Charitha Herath recently inquired into the ICTA operations during yahapalana administration. However, the ICTA, during its existence has operated irresponsibly resulting in massive losses, parliamentary sources said.

COPE headed by Prof. Herath includes Mahinda Amaraweera, Mahindananda Aluthgamage, Rohitha Abegunawardena, Susil Premajayantha, Jayantha Samaraweera, Dilum Amunugama, Indika Anuruddha Herath, (Dr.) Sarath Weerasekara, D.V. Chanaka, (Dr.) Nalaka Godahewa, Ajith Nivard Cabraal, Rauff Hakeem, Anura Dissanayaka, Patali Champika Ranawaka, Jagath Pushpakumara, Eran Wickramaratne, Ranjan Ramanayake, Nalin Bandara Jayamaha, S.M. Marikkar, Premanath C. Dolawatte and Shanakiyan Rajaputhrian Rasamanickam.

COPE inquiry has revealed sheer negligence on the part of successive governments, which allowed ICTA to pursue an agenda of its own, causing massive losses though recent media reportage focused on  the UNP-initiated Google Loon project that resulted in over Rs 1 bn loss in addition to a staggering Rs 6,427,941 spent on project promotions.

Parliamentary sources acknowledged that ICTA hadn’t been subjected to scrutiny since the change of government in Nov. 2019. Regardless of change of government, the ICTA had continued the way it had been operating under successive governments, sources said.

Sources said Sri Lanka needed ICTA to be in charge of digital platforms besides the Telecommunication Regulatory Commission (TRC). However, at a time the country was facing a severe financial crisis due to the , the public sector couldn’t be allowed to cause further losses.

The COPE is expected to summon 16 more state enterprises in January and February, 2021 for examination of their status.

Recent revelations by watchdog committees-COPE and COPA (Committee on Public Accounts) had sent shockwaves through Parliament, sources said, adding that the decision to issue statements on behalf of the committees by Communications Department helped efforts to set the record straight. Therefore, there couldn’t be any ambiguity as regards the findings, sources said, underscoring the right of the public to know what was happening.

Recent COPE investigation revealed how ICTA had, in Nov 2013, abandoned a project meant to pay several categories of pensioners, including armed forces in Western Province online after spending a staggering Rs 278.54 mn.

Another failed ICTA project-Lanka Government Network cost the taxpayer Rs 148.33 mn during previous UNP-SLFP administration.

One of the most shocking findings was the rejection of ICTA 2017 Corporate plan after having spent Rs 2,737,000 on it. To the dismay of ICTA, COPE has called for a progress report on ICTA corporate plans since 2003.



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Landslide Early Warnings issued to the Districts of Badulla, Kandy, Matale, Monaragala and Nuwara Eliya

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The Landslide Early Warning Center of the the National Building Research Organaisation [NBRO] has issued landslide early warnings to the districts of Badulla, Kandy, Matale, Monaragala and Nuwara Eliya for a period of 24 hours effective from 1200 noon today [07th January].

Accordingly,
LEVEL III RED landslide early warnings have been issued to the divisional secretaries divisions and surrounding areas of Udadumbara in the Kandy district, and Nildandahinna and Walapane in the Nuwara Eliya district.

LEVEL II AMBER landslide early warnings have been issued to the divisional secretaries divisions and surrounding areas of Kandaketiya in the Badulla district, Wilgamuwa in the Matale district, and Mathurata and Hanguranketha in the Nuwara Eliya district.

LEVEL I YELLOW landslide early warnings have been issued to the divisional secretaries divisions and surrounding areas of Meegahakiwula, Lunugala, Welimada, Passara, Badulla and Hali_Ela in the Badulla district, Doluwa in the Kandy district,Ambanganga Korale in the Matale district, and Bibile in the Monaragala district

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Prez seeks Harsha’s help to address CC’s concerns over appointment of AG

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Chairman of the Committee on Public Finance (CoPF), MP Dr. Harsha de Silva, told Parliament yesterday that President Anura Kumara Dissanayake had personally telephoned him in response to a letter highlighting the prolonged delay in appointing an Auditor General, a vacancy that has remained unfilled since 07 December.

Addressing the House, Dr. de Silva said the President had contacted him following the letter he sent, in his capacity as CoPF Chairman, regarding the urgent need to appoint the constitutionally mandated head of the National Audit Office. During the conversation, the President had sought his intervention to inform the Constitutional Council (CC) about approving the names already forwarded by the President for consideration.

Dr. de Silva said the President had inquired whether he could convey the matter to the Constitutional Council after their discussion. He stressed that both the President and the CC must act in cooperation and in strict accordance with the Constitution, warning that institutional deadlock should not undermine constitutional governance.

He also raised concerns over the Speaker’s decision to prevent the letter he sent to the President from being shared with members of the Constitutional Council, stating that this had been done without any valid basis. Dr. de Silva subsequently tabled the letter in Parliament.

Last week, Dr. de Silva formally urged President Dissanayake to immediately fill the Auditor General’s post, warning that the continued vacancy was disrupting key constitutional functions. In his letter, dated 22 December, he pointed out that the absence of an Auditor General undermines Articles 148 and 154 of the Constitution, which vest Parliament with control over public finance.

He said that the vacancy has severely hampered the work of oversight bodies such as the Committee on Public Accounts (COPA) and the Committee on Public Enterprises (COPE), particularly at a time when the country is grappling with a major flood disaster.

As Chair of the Committee responsible for overseeing the National Audit Office, Dr. de Silva stressed that a swift appointment was essential to safeguard transparency, accountability and financial oversight.

In a separate public statement, he warned that Sri Lanka was operating without its constitutionally mandated Chief Auditor at a critical juncture. In a six-point appeal to the President, Dr. de Silva emphasised that an Auditor General must be appointed urgently in the context of ongoing disaster response and reconstruction efforts.

“Given the large number of transactions taking place now with Cyclone Ditwah reconstruction and the yet-to-be-legally-established Rebuilding Sri Lanka Fund, an Auditor General must be appointed urgently,” he said in a post on X.

By Saman Indrajith

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Govt. exploring possibility of converting EPF benefits into private sector pensions

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The NPP government was exploring the feasibility of introducing a regular pension, or annuity scheme, for Employees’ Provident Fund (EPF) contributors, Deputy Minister of Labour Mahinda Jayasinghe told Parliament yesterday.

Responding to a question raised by NPP Kalutara District MP Oshani Umanga in the House, Jayasinghe said the government was examining whether EPF benefits, which are currently paid as a lump sum at retirement, could instead be converted into a system that provides regular payments throughout a retiree’s lifetime.

“We are looking at whether it is possible to provide a pension,” Jayasinghe said, stressing that there was no immediate plan to abolish the existing lump-sum payment. “But we are paying greater attention to whether a regular payment can be provided throughout their retired life.”

Jayasinghe noted that the EPF was established as a social security mechanism for private sector employees after retirement and warned that receiving the entire fund in a single installment could place retirees at financial risk, particularly as life expectancy increases.

He also cautioned that interim withdrawals from the EPF undermined its long-term sustainability. “Even the interim payments that are given from time to time undermine the ability to give security at the time of retirement,” he said, distinguishing the EPF from the Employees’ Trust Fund, which provides more frequent interim benefits.

Addressing concerns over early withdrawals, the Deputy Minister explained that contributors have been allowed to withdraw up to 30 percent of their EPF balance since 2015, with a further 20 percent permitted after 10 years, subject to specific conditions and documentary proof.

Of 744 applications received for such withdrawals, 702 had been approved, he said.

The proposed shift towards an annuity-based system comes amid broader concerns over Sri Lanka’s ageing population and pressures on retirement financing. While state sector employees receive pensions funded by taxpayers, including EPF contributors, the EPF itself has been facing growing strain as it is also used to finance budget deficits.

Jayasinghe said the government’s focus was to formulate a mechanism that would ensure long-term income security for private sector employees, placing them on a footing closer to a pension scheme rather than a one-time retirement payout.

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