Feb 24, 2021

Rs. 36m loss due to closing of 2 overseas branches of SLIC!

The Committee on Public Enterprises (COPE) has pointed out that Litro Gas Lanka and Litro Terminal Lanka, operating under the Sri Lanka Insurance Corporation have conducted their audits through a private company disregarding the Auditor General’s notice to have the audits conducted through them.

Whilst the Attorney General had instructed the Auditor General that there was no impediment to the audit of the two institutions by the Auditor Generals Department and despite the Auditor General informing of the same in writing, COPE questioned the grounds of conducting an audit by a private company called KPMG based solely on the decision of the Board of Directors.

The loss of Rs. 36 million due to the closure of branches in the Maldives and the Seychelles by the Sri Lanka Insurance Corporation was discussed at the COPE meeting held yesterday (23) under the chairmanship of Prof. Charitha Herath.

COPE directed the Chairman of the Sri Lanka Insurance Corporation to submit an expeditious report on the reasons for the closure of the Maldives and Seychelles branches of the Sri Lanka Insurance Corporation and the financial losses and expenses incurred by the Corporation for opening and closing those branches.

COPE Meeting

The COPE Committee chairman expressed his astonishment regarding as to why Litro Gas Lanka and Litro Terminal Lanka as shareholders of Sri Lanka Insurance Corporation owning 99.94% and 100% of shares respectively conducted an audit through a private company although the Sri Lanka Insurance Corporation themselves is conducting their audit through the Auditor General.

Addressing the Committee, the Chairman of Litro Gas Lanka stated that there is no legal impediment for a private sector company to carry out an audit as decided by the Board of Directors.

Given that the situation could adversely affect other administrative companies, especially those owned by the Sri Lanka Insurance Corporation, in the future, the Chairman highlighted that it is everyone’s responsibility to protect government-affiliated institutions. Accordingly, the COPE committee chairman Prof. Charitha Herath stated that the COPE Committee will inquire into the matter with the Attorney General and will take measures to inform of the findings through the Chief Accounting Officer.

The chairman and CEO of Litro Gas Lanka and Litro Terminal Lanka is Anil Koswatte.

State Ministers Susil Premajayantha, Nalaka Godahewa MPs Jagath Pushpakumara, Patali Champika Ranawaka, Premnath C Dolawatta, S.M Marikkar, S Rasamanikkam and officials representing the Sri Lanka Insurance Corporation and Litro Gas Lanka were present at the meeting.

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