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Auditor General Special Queries & NAO Reports

Authoritative findings from the National Audit Office (NAO) on public procurement violations, cost escalations, and unrecovered public funds.

National Audit Office Portal
Ministry of Finance & Sri Lanka CustomsYear: 2022
UNDER ACTION

Foregone Revenue of Rs. 16.76 Billion via Sugar SCL Reduction

Responsible Ministry: Ministry of Finance

Special Audit on the reduction of the Special Commodity Levy on sugar from Rs. 50/kg to 25 cents/kg in October 2020 revealed that the state forfeited Rs. 16,763 Million in import tax revenues within 4 months without the consumer receiving corresponding price reductions.

Quantified Loss / ImpactRs. 16.76 Billion(Rs. 16,763 M)
Auditor General's Recommendation

Enforce clawback mechanism on windfall profits of speculative importers and establish rigorous price surveillance prior to gazetting tax concessions.

Special Audit Report on the Imposition of Special Commodity Levy on Sugar (No. MOF/2022/01)View Details
Department of Immigration and EmigrationYear: 2024
RESOLVED

VFS Global / IVS Outsourcing Service Fee Queries ($18.50 per visa)

Responsible Ministry: Ministry of Public Security

Auditor General flagged outsourcing of online tourist visa processing to private foreign consortium VFS/GBS/IVS without competitive public tender, resulting in $18.50 convenience fees per traveler that could have accrued to the national treasury.

Quantified Loss / ImpactRs. 6.20 Billion(Rs. 6,200 M)
Auditor General's Recommendation

Immediate restoration of the state-owned ETA platform operated by Mobitel and Mobitel-SLT infrastructure.

Special Audit on the Electronic Travel Authorization (ETA) System Modernization 2024View Details
Ceylon Fertilizer Co. & Colombo Commercial FertilizersYear: 2022
UNRESOLVED

Disbursement of $6.9 Million for Rejected Chinese Organic Fertilizer

Responsible Ministry: Ministry of Agriculture

Payment of $6.87 Million released under irrevocable Letter of Credit for 20,000 MT of organic fertilizer from Qingdao Seawin Biotech despite Sri Lanka National Plant Quarantine Service detecting harmful Erwinia bacterial pathogens in samples.

Quantified Loss / ImpactRs. 1.45 Billion(Rs. 1,450 M)
Auditor General's Recommendation

Legal recovery proceedings through maritime arbitration and accountability for authorizing officials.

Special Audit Report on Emergency Importation of Organic Fertilizer (No. AGR/2022/04)View Details
SriLankan Airlines LtdYear: 2018
RESOLVED

US$ 115.7 Million Paid as Penalty for A350-900 Aircraft Lease Cancellations

Responsible Ministry: Ministry of Ports, Shipping and Aviation

SriLankan Airlines paid $115.7 Million in cancellation penalties to AerCap for terminating four A350-900 long-haul aircraft leases entered in 2013 without a viable business case for ultra-long routes.

Quantified Loss / ImpactRs. 17.36 Billion(Rs. 17,355 M)
Auditor General's Recommendation

Strengthen fleet acquisition corporate governance to prevent unhedged long-term liabilities without cabinet/parliamentary sanction.

Special Audit Report on Re-Fleeting Process of SriLankan Airlines LtdView Details