Transforming Sri Lanka Institute of Information Technology into a Fully Private Entity is Illegal – COPE Committee
15-Jul-2025.
The Committee on Public Enterprises (COPE) has instructed that converting the Sri Lanka Institute of Information Technology (SLIIT), owned by the Mahapola Fund, into a fully private entity is illegal. The Committee directed that the necessary legal steps be taken to reestablish it as an institution managed by the Mahapola Trust Fund.
COPE Chairman MP Nishantha Samarasinghe issued this directive to K.E. Vimalendra Raja, Secretary of the Ministry of Trade, Commerce, Food Security and Cooperative Development, and to former Supreme Court Justice Vijitha Malalgoda, Chairman of the Mahapola Trust Fund.
This instruction was given during last week’s COPE session, which examined the Auditor General’s reports for 2022 and 2023 concerning the Lalith Athulathmudali Mahapola Scholarship Trust Fund and the institution’s current functioning.
There was prolonged discussion about how, under a Cabinet decision in 2015, the property had been transferred with the consent of the then Minister, and that this action was illegal.
It was revealed that SLIIT had paid Rs. 408 million to the Mahapola Fund in connection with this transfer, and COPE members pointed out that an institution owned by the Mahapola Fund providing funds in this manner to acquire ownership presented serious issues.
Accordingly, the Chairman emphasized that those responsible should be held accountable and penalized, and measures should be taken to prevent such illegal or fraudulent actions in the future.
Responding to the discussion, Trade Minister Vasantha Samarasinghe, who is ex-officio Trustee of the Fund, stated that there would be no cover-up of such irregularities and that investigations would be pursued.
One official present stated that this institution, which was originally established as a government entity for a noble purpose and had a Board of Directors including ex-officio government officials, was, over time, identified as a highly profitable venture, resulting in greed-driven illegal actions to detach it from state control.
The Committee also discussed concerns that certain parties may attempt to create the false impression that this investigation could cause the downfall of a university that educates many students.
Nonetheless, it was emphasized that SLIIT must be maintained as it is and brought back under Mahapola Fund control to continue offering degree programs to a large number of students at subsidized fees.
The Committee further noted that during the previous administration, key positions such as internal auditors were not properly filled, which is a significant operational problem for an organization managing such large sums of money.
The meeting also discussed the current status of the National Wealth Corporation Ltd. and Wealth Securities Ltd., companies managed by the Mahapola Trust Fund.
Due to the many challenges in reinvesting funds into loss-making enterprises, it was decided to conduct forensic audits and proceed with further actions as appropriate.
Attention was also given to the Mahapola Scholarship’s capacity to reach a greater number of eligible students joining universities.
The Chairman of the Fund indicated that interest income and other revenue generated from capital totaling approximately Rs. 20 billion would be properly managed to operate in a fair and accountable manner.
Additionally, the Committee examined issues such as the appointment in 2023, under contract, of trade exhibition officers for two years and the Rs. 750 million loss suffered when the lottery operator selected via a live draw withdrew.
The Committee instructed officials to conduct forensic audits and take the necessary actions regarding these matters.
