Inside sources reveal that the Sri Lanka Fisheries Corporation is incurring monthly losses of up to Rs.100 million due to fish purchases through private traders instead of engaging in direct deals with fishermen. This practice, allegedly supported by key bureaucrats, is reportedly benefiting middlemen with strong political connections, leading to significant financial losses for the Corporation. With a three percent market share, mismanagement has taken a toll, resulting in losses reaching Rs.6.8 billion by mid-year.
The Corporation, responsible for purchasing around 250 tonnes of fish, holds a three percent market share and serves as the exclusive supplier of fish to state hospitals, as per an agreement signed 14 years ago during the tenure of Mr. Nimal Siripala de Silva as the health minister. However, pricing issues, including alleged overpricing facilitated by bureaucrats from both the Corporation and the Health Ministry, have led to financial challenges.
The Corporation is currently facing a financial crisis and owes over Rs.600 million to the Employees’ Provident Fund (EPF) and the Employees Trust Fund (ETF). The trade union collective of the Corporation has reportedly informed President Ranil Wickremesinghe in writing about corruption in the supply deal with health authorities, citing issues such as overpricing and the provision of land-frozen fish instead of high-quality sea-frozen food.
The unions have emphasized the importance of supplying hospitals with fish frozen immediately after catching to ensure patients are provided with seafood free of bacterial infection. However, they accuse the current Corporation management of supplying land-frozen fish, potentially posing health risks.
