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National Audit Office reveals NHSL lapses

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Reagent scandal:

Deputy Director of the National Hospital, Dr. Rukshan Bellana, has been interdicted by Health Service Committee (HSC) of the Public Service Commission (PSC) following a preliminary inquiry into several complaints received against him, government sources said.

They said certain matters referred by the Secretary to the Prime Minister Dr. Harini Amarasuriya and Inspector General of Police (IGP) Priyantha Weerasooriya, too, had been taken into consideration.

A Health Ministry official said there was no truth in Dr. Bellana’s claim, as reported in the 30th December edition of The Island, that the Health Ministry had sacked him on the approval of the HSC of the PSC over him taking up the massive Rs 900 mn fraud involving the supply of chemical reagents to the laboratory of the National Hospital of Sri Lanka (NHSL) in Colombo, which is the premier hospital in the country.

Sources said that there was absolutely no basis for this allegation. The official said that Dr. Bellana had been interdicted for issuing statements that caused controversy and turmoil among the public. That’s the most serious offence that had been taken into consideration when the decision to interdict him was taken, sources said. “There will be a spate of charges in the charge sheet to be issued soon.”

The interdiction of medical officers could not be carried out by the Ministry of Health and Mass Media, as the Ministry was not vested with disciplinary authority, sources added.

Dr. Bellana said he stood by what he revealed and had evidence to support his claim.

Health Ministry sources acknowledged that the National Audit Office (NAO) on June 6, 2025, had called for information in respect of chemical reagents procured by the National Hospital Colombo NHSL laboratory from 2022 to 2024.

Responding to another query, sources said that a separate investigation by the Internal Audit of the Ministry of Health was on into issues raised by the Audit query pertaining to the lab of the NHSL.

Having pointed out that the government paid Rs. 894,186,168 (2022), Rs. 713,652,615 (2023) and Rs. 936,152,767, totalling Rs 2,543,991,550 for chemical reagents during that period, NAO sought an explanation from the Health Ministry as to how Rs 12,894,697 worth of chemical reagents past expiry dates were found in six laboratories at NHSL during examination carried out on April 7,8,10,21 and 22 in 2025.

The NAO also raised the failure on the part of the relevant authorities to secure the approval of the Medical Supplies Division (MSD) before placing orders with local suppliers for chemical reagents.

The Health Ministry was questioned over the absence of proper stock keeping regarding Rs 2544 mn worth chemical reagents issued to NHSL laboratories. The NAO ascertained that Financial Regulations 751 had been violated. As a result of the absence of credible stock keeping, the NAO hadn’t been able to ascertain whether shelf-life expired chemical reagents were misused, the government authority stated.

The NAO asked for an explanation regarding the payment of Rs 912,838 over the required amount to a local private supplier (NAO named the supplier) for chemical reagents obtained.

In one of the most serious observations, NAO pointed out that shelf-life expired chemical reagents had been used for tests. The NAO raised this while pointing out the Health Ministry violated a key prerequisite in the procurement of chemical reagents that their shelf life should be at least 85% at the time of receiving consignments. Instead, all stocks procured had less than six months shelf life, NAO stated.

NAO declared that some suppliers refrained from mentioning the date of manufacture and the time of expiry.

The above mentioned were some of the issues that had been raised by Audit Superintendent Y.M. Sugathadasa on behalf of the Auditor General who is the head of the NAO. The post of AG remains vacant since December 8, 2025. Earlier incumbent W.P.C. Wickremeratne retired on April 8, 2025 after having served as AG for several years. President Anura Kumara Dissanayake and the Constitutional Council haven’t been able to reach consensus on a permanent appointment yet.

By Shamindra Ferdinando ✍️



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Cabinet nod for MOU between Sri Lanka and Romania on the cooperation in the Labour Field

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Romania, a country that has maintained diplomatic relationship with Sri Lanka for several decades in various fields, has become an increasingly popular destination among Sri Lankan skilled and semi-skilled Labour categories, especially in the fields of construction, manufacturing, hospitality, and services sectors.

At present, the recruitment of Sri Lankan workers to Romania is carried out by licensed private employment agencies under the
supervision of the Sri Lanka Foreign Employment Bureau. However, since both parties have recognized the need of establishing a more organized and sustainable recruitment method due to increasing  demand, the Cabinet of Ministers has approved the proposal presented by the Minister of Foreign Affairs, Foreign Employment, and Tourism to enter into a Memorandum of Understanding between the Government of the Democratic Socialist Republic of Sri Lanka and the Government of Romania regarding cooperation in the field of the labour sector with the following objectives.

• Establishment of proper mechanism for recruitment and management of workers.
• Promotion of ethical and transparent recruitment practices.
• Protection of rights and welfare of the migrant workers.
• Facilitation of regular discussions between the formal and relevant authorities ofboth countries.
• Improvement of technical cooperation, skills recognition, and capacity building in the labour sector.

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New circular to replace Management Services Circular No. 01/2019

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The Cabinet of Ministers has approved the proposal presented by  the President, in his capacity as the Minister of Finance,
Planning, and Economic Development to repeal Management Services Circular No. 01/2019 , dated 15-03-2019, issued regarding the implementation of development projects, and to issue a new management services circular including updated provisions instead.

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Four Chief Prelates urge President to appoint NAO official as Auditor General

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Anura Kumara

Chief Prelates of the Malwathu, Asgiriya, Amarapura and Ramanna Nikayas, in a joint letter addressed to President Anura Kumara Dissanayake, has expressed concern over the protracted delay in appointing a permanent Auditor General.

The Chief Prelates have said that the appointment of an outsider as the Head of the National Audit Office (NAO) responsible for ensuring transparency and accountability in public finances will be inappropriate.

The Chief Prelates have said that they are of the view that Dharmapala Gammanpila, a senior officer with extensive experience within the Auditor General’s Department, is the ideal candidate for the top post. They have also emphasised that his appointment will strengthen the government’s efforts to promote economic prosperity.

Chulantha Wickramaratne, who served as AG for a period of six years, retired in April 2025. Following his retirement, President Dissanayake nominated H.T.P. Chandana, an audit officer at the Ceylon Petroleum Corporation, as the AG. The CC rejected that nomination. Subsequently, President Dissanayake appointed the next senior-most official at the NAO Dharmapala Gammanpila as Acting Auditor General for a period of six months. Then, the President nominated Senior Deputy Auditor General L.S.I. Jayarathne to serve in an acting capacity, but her nomination, too, was also rejected. Many an eyebrow was raised when the President nominated O.R. Rajasinghe, the Internal Audit Director of the Sri Lanka Army for the top post. That nomination too was rejected. As a result, the vital position remains vacant since 07 December, 2025.

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