The Hon. Chandima Hettiaratchi
Hon. Chandima Hettiaratchi discussed the COPE findings on the dairy cattle import project, stating that despite audit warnings in 2018 and losses from earlier imports, authorities continued with the same supplier and paid a Rs. 1,749.6 million advance for 15,000 cattle without a performance bond, resulting in an estimated sunk cost of about Rs. 2,110.3 million by February 2025. He said the policy objective of increasing local milk production and reducing imports was valid, but the procurement process and implementation were flawed. He also referred to COPE concerns regarding alleged misuse of funds at the National Youth Services Council and Sri Lanka Bureau of Foreign Employment, and missing or non-functional equipment at the National Gem and Jewellery Authority, calling for investigations, accountability, restoration of technology, and stronger institutional systems.
Verbatim record (translated)
Machine-translated from Sinhala / Tamil / English¶ 01 Hon. Deputy Chairperson, focusing on the COPE report regarding the dairy cattle imports: the document before us concerns Step 2 of Phase III. The project commenced in 2014; by end-2017, 5,018 cattle were imported under Step 1. Despite the Special Audit Report of 4 May 2018 highlighting issues and losses to the Government—pointing out that the selected supplier, Wellard Rural Exports Pty Ltd, was based on a decade-old procurement—authorities nevertheless proceeded to award further work to the same company.
¶ 02 For 2018, 2,500 cattle were planned at USD 8,099,729. Yet the advance was paid not for that tranche, but as a 20 percent advance for all 15,000 cattle—Rs. 1,749.6 million—without a performance bond. As at 27 February 2025, the Report notes no return or benefit accrued from that advance. Foreign exchange movements further compounded the loss; the total sunk cost is about Rs. 2,110.3 million—public money.
¶ 03 Importing cattle per se is not wrong; it is needed to develop domestic milk and reduce milk powder imports. The problem is the wrongful process—“rogue cattle” intervened in a good objective. The Cabinet paper’s goals—boost local milk, expand milk powder production, and save dollars—were right; the method was wrong. Further, the project relied on two loans totaling over USD 73 million.
¶ 04 COPE is also examining other institutions. The National Youth Services Council reportedly misused Rs. 300–400 million for political campaigns; similar issues are flagged at the Sri Lanka Bureau of Foreign Employment. At the NGJA, gem parcels go missing; technology and labs are defunct—laser marking machines and FTIR units are out of order, with parts allegedly pilfered. COPE recommends investigating missing equipment, identifying culprits, restoring technology, and strengthening systems.
¶ 05 I thank the COPE Chair, Hon. (Dr.) Nishantha Samaraweera, and the Secretariat. Let us, together, root out the “rogue cattle” from our institutions and restore them to serve the public.
¶ 06 Thank you.
¶ 07 Sitting suspended for lunch at 1.00 p.m. and resumed thereafter.
Provenance
- Source
- Hansard, Thursday, 19 June 2025 ·No. 1751430648025512 ·English daily/uncorrected Hansard
- Page · column
- not yet extracted — page/column anchors are not in the current dataset; the source PDF is the citable location.
- Permalink
/lk/speeches/27483
Cite as: The Hon. Chandima Hettiaratchi. 10th Parliament, Parliament of Sri Lanka. Hansard, 19 June 2025. No. 1751430648025512. Politick, https://staging.politick.io/lk/speeches/27483