By: Staff Writer
May 21, Colombo (LNW): The Committee on Public Enterprises (CoPE) has unveiled a series of concerning revelations regarding the ongoing financial losses and administrative misconduct at Sri Jayewardenepura General Hospital, one of Sri Lanka’s flagship state-run medical institutions.
The findings emerged during a recent COPE session chaired by MP Dr. Nishantha Samaraweera, where the 2022 and 2023 Auditor General’s reports and the hospital’s current performance were examined.
Despite its long-standing reputation and infrastructure, the hospital is reportedly operating at a sustained financial loss. CoPE identified multiple contributing factors, including the provision of treatment to patients without payment and instances where fees that should have been collected were instead waived without proper justification.
One of the more pressing concerns highlighted was the hospital’s inability to generate adequate income from its specialist services, despite paying nearly Rs. 600 million in professional fees to its staff in 2023 alone. It was revealed that the medical equipment used for these services had been sourced from the hospital, yet the institution failed to see a proportional financial return.
Officials also disclosed that the hospital maintains a scheme to offer free treatment to clergy, staff family members, and retired employees—though the latter benefit is capped at Rs. 4,000. While such practices may reflect humanitarian intentions, CoPE members questioned the financial viability of these subsidies without proper cost recovery mechanisms in place.
In addition to financial issues, COPE raised serious concerns about irregular appointments and staffing practices. It was revealed that several individuals were recruited to unauthorised posts during the pre-election period, receiving a 35% salary allowance without legal approval. In stark contrast, no salary was paid for the legally sanctioned position of “Laundry Inspector,” indicating a complete breakdown of internal controls.
The Auditor General’s Department further noted that employee appointments, salary disbursements, and monitoring systems were inadequately managed, allowing for the proliferation of illegal payments. COPE has instructed that a comprehensive internal investigation be launched, with a full report to be submitted within two months.
The committee also scrutinised a contract signed in 2015 to implement an electronic document management system for the hospital’s Board of Directors. It was shockingly revealed that the contract had been awarded to a company in which the wife of a then hospital director was a board member—raising significant conflict of interest concerns. Even more troubling, the company had been registered just one day prior to being awarded the contract.
Mismanagement was further evidenced by a procurement scandal involving television sets intended for the hospital wards. Although approval had been obtained for 25 televisions of 32-inch size, the hospital instead purchased 43-inch sets at a higher price. As of 30 April 2025, only six of these units had actually been installed and used, indicating wasteful expenditure and poor planning.
In light of these troubling disclosures, CoPE has announced plans to summon the hospital’s former chairman and board of directors for further inquiry. The committee stressed the urgent need to enforce accountability and restore both administrative order and fiscal discipline at the hospital.
Members of Parliament who participated in the session included Nalin Bandara, S. M. Marikkar, Samanmalee Gunasinghe, Sunil Rajapaksha, Asitha Niroshana Egoda Vithana, Chandima Hettiarachchi, and Attorney-at-Law Lakmali Hemachandra.
