By: Staff Writer
December 15, Colombo (LNW): Sri Lanka’s fisheries harbour construction sector is once again under scrutiny amid mounting allegations of systematic tender manipulation, official collusion and large-scale misuse of public funds within the Lanka Fisheries Harbours Corporation (LFHC) and the Ministry of Fisheries. Multiple incidents over several years suggest that weaknesses in procurement systems have been deliberately exploited by a small group of officials working in tandem with favoured private contractors.
The most troubling pattern, according to industry analysts and internal sources, is that nearly all major construction projects of the LFHC have, for a prolonged period, been awarded to a single private company. This concentration has raised serious red flags, particularly because the bids submitted by this company consistently fall within about 95% of the official cost estimates prepared by the Corporation itself.
Experts argue that such precision cannot be coincidental. They point to two highly concerning possibilities: either confidential cost estimates are being unlawfully leaked to the bidder, or the technical specifications or pricing frameworks for tenders are effectively being drafted with the involvement of the same company, then circulated through engineers within the authority who allegedly maintain close personal links with it.
These suspicions are reinforced by claims that loopholes in government procurement procedures have been systematically manipulated with the tacit support of certain senior officials. The Beruwala slipway tender has been cited as a notable example. Although the contract was not formally awarded to the controversial firm, it was allegedly later compensated through a 5% discount, raising questions about the integrity of the evaluation process.
Insiders further allege that external influence networks are deeply embedded within the fisheries harbour system. It is widely known among employees that one senior engineer has, for years, been provided with a vehicle, fuel and a driver by the same company. Several other engineers allegedly linked to this network are said to sit on tender boards, undermining impartial decision-making.
Financial losses linked to these practices are substantial. At the Gandara Fisheries Harbour, delayed bill settlements and variation payments reportedly enabled the contractor to extract over Rs. 500 million in additional public funds. Meanwhile, the Wella Mankara harbour project revealed structural defects and deficiencies even at the opening stage, highlighting serious failures in supervision and quality control.
These concerns are not isolated. The arrest of a former LFHC Chairman in June 2025 over an unsolicited sand mining proposal, inflated consultancy fees linked to politically connected firms, irregular leasing of harbour premises, unauthorized procurement of equipment, and the widely criticised Oluvil Harbour project together point to entrenched governance failures
