Concerns Raised Over Potential Conflicts of Interest in NPP Government Appointments

Prominent Sri Lankan commentator Rohan Pethiyagoda has voiced concerns regarding potential conflicts of interest arising from certain senior government appointments under the newly elected NPP government. While acknowledging the perceived integrity of the current cabinet, Pethiyagoda highlighted specific cases that he believes warrant closer scrutiny.

Pethiyagoda focused on two key individuals: Duminda Hulangamuwa and Sarath Ganegoda.

Duminda Hulangamuwa, currently serving as Senior Economic Advisor to the President, also holds the position of Country Managing Partner at Ernst & Young (EY) Sri Lanka & Maldives, and Chairman of the Ceylon Chamber of Commerce. Pethiyagoda argued that this dual role presents a clear conflict of interest, as EY provides financial advisory services to numerous clients, including the government. Hulangamuwa's access to privileged information and influence over economic policy, while simultaneously holding a senior position in a firm that interacts with the government, raises concerns about potential bias.

Sarath Ganegoda, Executive Director of Hayleys PLC and Chairman of Sri Lankan Airlines, was also singled out. Pethiyagoda pointed out that Hayleys, a major player in the air travel industry, had previously bid to purchase Sri Lankan Airlines. Ganegoda's position as Chairman of the airline, coupled with his senior role at Hayleys, creates a perception of preferential treatment, particularly in government tenders.

Pethiyagoda further elaborated on a controversial 50 megawatt wind power project in Mannar, where Hayleys was awarded the contract despite alleged deviations from the tender specifications. He detailed the two envelope tender process and how Hayleys bid guarantee was initially rejected due to flaws. He further detailed the procurement appeals board decision, and the negotiating committee's decision to override the project commitee's rejection of the Hayleys bid. He questioned the transparency of the process, particularly the lack of a legal opinion from the Attorney General.

"The government made a joke of the two-envelope procurement system, which is considered the gold standard of procurement worldwide," Pethiyagoda stated. He questioned whether Ganegoda's close ties to the NPP influenced the decision.

Pethiyagoda emphasized that he has no personal animosity towards Hulangamuwa or Ganegoda, whom he described as "decent, honest, honorable individuals." His concern, he stressed, lies solely with the potential conflicts of interest arising from their dual roles.

He contrasted these appointments with those of Dr. Tilak Siyambalapitiya, Chairman of the Ceylon Electricity Board, and Dr. Hans Wijayasuriya, Chief Advisor to the President on Digital Economy, who publicly distanced themselves from their private sector interests before accepting government positions. Pethiyagoda commended this transparency, urging Hulangamuwa and Ganegoda to follow suit.

"These two gentlemen need to pick a side," Pethiyagoda concluded, emphasizing the importance of maintaining public trust and avoiding even the appearance of corruption. He urged the NPP government to address these concerns promptly to safeguard its reputation for integrity.

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