A damning special audit report has revealed sweeping financial irregularities in the operations of Sri Lanka’s Parliament during the Eighth and Ninth sessions, exposing unchecked privileges, outdated regulations, and millions in questionable expenditure.

The Auditor General’s Department found that Parliament continues to operate under the Parliamentary Staff Act of 1953, last amended in 1959, bypassing the Public Financial Management Act No. 44 of 2024, which governs all other budgetary entities to ensure transparency.

Unlimited Fuel Privileges

• Speaker: Consumed an average of 3,994 litres per month in 2023 and 6,122 litres per month in 2024, marking increases of 66% and 155% respectively. Fuel expenditure reached Rs. 19.37 million in 2023 and Rs. 26.05 million in 2024.
• Deputy Speaker: Received 21,299 litres of fuel worth Rs. 8.55 million for a private vehicle in 2023–2024, in addition to three official vehicles. These vehicles themselves exceeded allocations by 6,980 litres in 2023 and 1,515 litres in 2024.
• Chairman of Committees: Allocated three official vehicles with unlimited fuel, despite no formal entitlement.
• Secretary-General: Used 15,063 litres of fuel worth Rs. 6.07 million between 2022–2024, averaging 2,300 litres more annually than a Ministry Secretary, the highest comparable category.

Salary Irregularities

The Secretary-General’s salary, constitutionally required to be fixed by Parliament under Article 65(2), was last approved in 2004 at Rs. 274,920. Since then, it has increased by around 800% without fresh parliamentary sanction, creating a significant charge on the Consolidated Fund.

Transport and Employee Benefits

• Parliament spent Rs. 335.66 million since 2016 on a bus service for employees, operating without a written agreement with the Sri Lanka Transport Board.
• A further Rs. 5.89 million was spent on drivers and conductors from mid‑2021.
• The average cost per travel pass rose from Rs. 27,662 in 2016 to over Rs. 95,000 in 2023.

Foreign Travel Expenditure

• Rs. 208.9 million was spent between 2016–2024 to send 451 MPs overseas.
• Rs. 56.9 million funded 115 staff members for 83 foreign trips.
• No requirement exists for MPs or staff to submit reports on outcomes of these trips.

Other Irregularities

• Discrepancy between 25,103 books in the library register and 34,000 books claimed online.
• Concessionary vehicle permits worth Rs. 10.8 million granted to three employees before completing six years of service.
• 159 approved posts remained vacant as of December 2025 without review.

The Auditor General attributed these issues to Parliament’s reliance on outdated legislation and recommended urgent reforms, including aligning with the Public Financial Management Act, tightening controls on fuel and vehicle privileges, and securing formal approval for the Secretary-General’s salary. (Newswire)

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Global visa processing service, VFS Global, says it had communicated to the Office of the Auditor General in November 2024, offering to provide full support and any information which may be required for its special audit related to the online visa issuance system. 

VFS Global has issued a statement in response to recent media reports on the “Special Audit Report on the Online Visa Issuance Methodology of the Department of Immigration and Emigration”.

“GBS Technology Services & IVS Global FZCO (IVS-GBS), V F Worldwide Holdings Ltd (VFS Global), and the Department of Immigration and Emigration of Sri Lanka entered into an outsourcing Agreement dated 21st December 2023 for the provision of eVisa and other related services. As per the terms of this Agreement, VFS Global had a limited role as a technical partner with IVS-GBS as the prime contractor,” the company said. 

VFS Global further said that globally, VFS is deeply committed to transparency and integrity with all its client governments and has accordingly complied fully with the instructions of the competent authorities of Sri Lanka in good faith. 

“As soon as we came to know that an Audit was to be conducted, VFS Global addressed a communication to the Office of the Auditor General on 7th November 2024, offering to provide full support and any information which may be required. Although no response was received from the Office of the Auditor General on this communication, VFS remains committed to offering its full support to the Office of the Auditor General or any other relevant authority of the Sri Lankan government, as and when it is asked for,” the company added. (Newswire)

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MP Harsha de Silva in Parliament today said that the special audit report on Sri Lanka’s controversial e-visa contract by the Department of Immigration and Emigration has been received by MPs.

The report includes nine recommendations, which de Silva, as Chairman of the Committee on Public Finance, urged to be implemented immediately. 

The audit report by Acting Auditor General G.H.D. Dharmapala recommends several key reforms, including legal clarity on the visa issuance process under the Immigration and Emigration Act of 1948, and the need for continuous improvement in service delivery through modern technology. 

It also stresses that any outsourcing of services must follow proper tender procedures, include cost-effectiveness studies, and ensure transparency in revenue collection. 

Furthermore, the report calls for investigations into officials involved in approving the controversial contract without necessary financial oversight and for calculating and recovering any losses incurred by the government.

Audit recommendations in the report by Acting Auditor General G.H.D. Dharmapala

1. Identify and act in accordance with legal provisions relating to the visa issuing process for carrying out activities under Immigration and Emigration act 20 of 1948 or amend it as necessary.
2. It is the responsibility and duty of the Department of Immigration and Emigration to provide a more efficient and friendly service to its customers by using improved methods in line with the advancement of technology, and therefore, it is necessary to work continuously towards that end.
3. When outsourcing its services, the Department of Immigration and Emigration should conduct a cost-effectiveness study on the services to be outsourced, follow tender procedures so that all interested parties can participate, and select institutions with conditions that are profitable for the government and beneficial to the country. (Ref.no:
4. When entering into agreement with local/ Foreign service providers, it is necessary to determine the legality of those institutions, how their obligations are implemented within framework of tax, laws and other regulations in Sri Lanka, and the transparent of fees and revenue collected by and on behalf of the government.
5. GBS Technology Service & IVS Global-FZCO, VF Worldwide Holding Ltd. during the short period of its operation, this institution took steps to recover the 18 percent and 2.5 percent SSCL collected from visa applicants on behalf of the Sri Lankan government and to draw the attention of authorized institutions to calculate the income tax payable on the income earned and remit it to the Inland Revenue Department.
6. In the course of the unilateral proposal submitted by GBS Technology Service & IVS Global-FZCO, VF Worldwide Holding Ltd from its inception to its short-term implementation, the officers who participated in the preparation of Cabinet papers, the appointment of committees, the evaluation of committee reports, not obtaining the observations of the Ministry of Finance which has the power to collect state revenue, and who performed basic functions such as allowing visa income to be collected in a bank account in a foreign country without proper permission, should be investigated and appropriate disciplinary and other actions should be taken.
7. Taking steps to calculate the losses and lost revenue incurred by the government through the implementation of the new project proposal and recover them from those responsible.
8. Taking steps to select a service provider through a transparent and appropriate call for bids for a more suitable e-Visa system in the future, subject to the decisions of the case pending in the Supreme Court.
9. This report was conducted within the scope of the Auditor General’s powers, resources, time and information presented, and therefore I did not examine whether there was any illegal or criminal activity beyond the scope of the Auditor General’s powers and resources. Therefore, if it is felt that such an examination should be conducted it and, it is appropriate to seek the assistance of specialized institutions or department for that purpose. (Newswire)

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Cabinet approval has been granted to amend the Samurdhi Act in order to subject Samurdhi Community-Based Banks and Samurdhi Community-Based Banking Societies to audits by the National Audit Office.

According to the government, there are 1092 Samurdhi community-based banks and 335 Samurdhi community-based banking Societies functioning across the country which promote microfinance activities. 

As per the provisions of the Samurdhi Act, the Samurdhi Community-Based banks and Samurdhi Community-Based banking societies are audited annually by the Internal Audit Division of the Samurdhi Development Department. 

However, the Samurdhi Act does not include the provision that they should be audited by the National Audit Office.

Therefore, it has been recognized that auditing Samurdhi banking activities by the National Audit Office will also help maintain transparency in their operations and increase public confidence and acceptance. 

As such, the Cabinet of Ministers approved the proposal presented by the President in his capacity as the Minister of Social Empowerment to amend the Samurdhi Act No.1 of 2013 as amended by Divineguma (Amendment) Act No. 2 of 2017 and to advise the legal draftsman to prepare the respective bill for this purpose. (Newswire)

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