Audit findings reveal systemic mismanagement in fisheries harbours
The fisheries harbour sector in Sri Lanka is increasingly coming to be recognised as a concerned case of the failure of governance, where again and again it has been found wanting in its procurement and financial management procedures by successive audits and inquiries, governance analysts say.
At the forefront of all the concerns are the Ceylon Fishery Harbours Corporation (CFHC) and the Ministry of Fisheries, both of which have been identified by various oversight institutions for numerous violations of regulations.
Over 10 years now, there have been reported breaches in government procurement guidelines by the Auditor General’s Department.
These include consultancy contracts awarded without the requirement for prior approval from the Treasury, the procurement of equipment through unapproved channels, and the disbursement of funds in gross violation of financial guidelines.
The auditors emphasise that it is not a matter of minor administrative mistakes, but rather there are evidences of systematic irregularities, indicative of institutionalised shortcuts, politics, and unclear decision-making.
Among the most worrying discoveries lies in the alteration of projected costs associated with projects.
In one prominent instance, a government investigation forced a necessary reduction of consultancy fees by no less than 50 per cent, despite political pressure to retain the originally established, and inflated, figures. This kind of incident suggests that serious doubts exist about the integrity of project development and approval procedures.
The leasing of fisheries harbour premises has also resulted in significant losses to the state. The Modara Fishery Harbour lease, later terminated due to accounting irregularities, is estimated to have caused a potential loss exceeding Rs. 470 million.
Government Auditors found that state assets were undervalued and rental terms poorly structured, reflecting weak internal oversight and a failure to protect public property entrusted to state institutions.
Procurement failures extend beyond construction and leasing activities. Auditor General’s reports highlight instances where high-value equipment was purchased without proper authorisation, including a fish vacuum packaging machine that reportedly resulted in a loss of nearly Rs. 6 million.
In addition, consultancy payments for harbour projects were released without required clearance from the Treasury, directly contravening established financial regulations.
Perhaps the most cited symbol of flawed planning and governance is the Oluvil Harbour project. Often classified as the ‘white elephant’ project, this scheme swallowed huge amounts of rupees without undertaking comprehensive feasibility studies and serious environmental impact assessments.
Operational challenges, and more specifically coastal erosion, have made the port ineffective and strengthened criticism that political upside sets priorities before professional and environmental realities.
These systemic issues have increasingly been brought to focus by the relevant investigation bodies. In June 2025, the arrest of a past CFHC Chairman on charges of procurement irregularities in relation to an unsolicited proposal highlighted the extent to which systemic weakness pervades this sector, with increased focus from the Commission to Investigate Allegations of Bribery or Corruption.
Hitad.lk has you covered with quality used or brand new cars for sale that are budget friendly yet reliable! Now is the time to sell your old ride for something more attractive to today's modern automotive market demands. Browse through our selection of affordable options now on Hitad.lk before deciding on what will work best for you!