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CoPE Raises Alarm Over SLBFE’s Rs. 1.3 Billion in Unauthorised Spending and Governance Failures

The Sri Lanka Bureau of Foreign Employment (SLBFE) has come under sharp criticism from the Committee on Public Enterprises (CoPE) for allocating over Rs. 1.3 billion in 2024 towards unapproved and unplanned initiatives—expenditures made without Cabinet clearance and outside the Bureau’s officially sanctioned annual action plan.

The findings were disclosed during a recent CoPE session chaired by Parliamentarian Dr. Nishantha Samaraweera. According to the Committee, the Bureau had spent a staggering Rs. 1.259 billion on a promotional initiative titled Glocal Fair and a further Rs. 63 million on Vigamanika Harasara, both of which were implemented without the necessary administrative authorisation or strategic justification.

Glocal Fair, launched with the intention of improving public access to foreign employment-related services at the provincial level, was initiated prior to receiving Cabinet approval, a move that CoPE flagged as a serious breach of governance protocols. The programme’s scale also raised eyebrows, as it far exceeded the Bureau’s typical allocation of Rs. 2 million for outreach activities.

Further irregularities were uncovered in the procurement process for trade stalls associated with Glocal Fair, with unit costs increasing from Rs. 170,000 to Rs. 500,000 without a transparent explanation—an issue CoPE members viewed as a possible indicator of procurement malpractice or financial mismanagement.

Dr. Samaraweera, speaking as CoPE Chair, criticised the SLBFE’s decision-making, stating that large sums of public money had been diverted into non-essential, ad hoc projects that lacked long-term value or demonstrable impact. He noted that such actions undermined the Bureau’s credibility and violated its fiscal responsibilities.

In a separate matter, CoPE expressed serious concern over the failure of the Rataviruwo housing loan initiative, a joint project between the SLBFE and the Samurdhi Authority, initiated in 2013. Despite an official Memorandum of Understanding, Rs. 100 million owed to the Bureau remains outstanding. SLBFE officials admitted that they had not maintained records of the programme’s beneficiaries, nor had they conducted any post-disbursement assessments. CoPE has now requested a complete report outlining the programme’s implementation and financial trail.

The Committee also questioned why the Bureau continues to hold approximately Rs. 18 billion in fixed deposits without any tangible plan to channel those funds into productive, worker-focused initiatives. Members urged the SLBFE to formulate a structured investment strategy to better support Sri Lankan migrant workers and their families.

Another key topic was the underutilisation of the Kuwait Compensation Fund, which had a balance of Rs. 5.1 billion at the end of 2023. SLBFE officials informed the Committee that plans were now being considered to use the fund for skills development training and to establish a pension scheme for returning migrant workers—initiatives that the Committee said should have been prioritised far earlier.

CoPE also addressed reports of fraudulent activity involving the registration of migrant workers. According to the Committee, both independent and agency-facilitated workers are required to register with the SLBFE and pay a registration fee, 70% of which is refunded to employment agencies in qualifying cases. However, allegations have surfaced that certain agencies have been falsely categorising self-recruited workers as agency-sponsored in order to claim illegitimate refunds.

In response to these allegations, CoPE has appointed a sub-committee to conduct a detailed investigation into potential financial misconduct by licensed foreign employment agencies.

The meeting was attended by a number of MPs, including Anuradha Jayaratne, Mujibur Rahman, M.K.M. Aslam, Nilanthi Kottahachchi, Samanmali Gunasingha, Mayilvaganam Jegatheeswaran, Dr. S. Sri Bavanandaraja, Sujeewa Dissanayake, Jagath Manuwarna, Ruwan Mapalagama, Sunil Rajapaksha, Darmapriya Wijesinghe, Asitha Niroshana Egoda Vithana, Dr. Pathmanathan Sathiyalingam, Thilina Samarakoon, Chandima Hettiarachchi, Dinesh Hemantha, and Lakmali Hemachandra.

In closing, CoPE underscored the urgent need for enhanced institutional oversight, stronger fiscal management, and greater alignment with the SLBFE’s core mandate of safeguarding the welfare of Sri Lankan migrant workers.

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