The United Workers’ Federation, along with several other organizations, has submitted a joint letter to President Anura Kumara Dissanayake, demanding the removal of Mr. Duminda Hulangamuwa from his position as Economic Affairs Advisor to the President. The request highlights a serious conflict of interest linked to Mr. Hulangamuwa’s role as the managing partner of the auditing firm Ernst & Young in Sri Lanka, which was previously found guilty of undervaluing the Sri Lanka Insurance Corporation during its privatization.
The organizations claim that Mr. Hulangamuwa’s advisory role could significantly influence state policies, particularly those related to economic matters. Furthermore, reports suggest that Mr. Hulangamuwa is likely to be appointed as the successor to Siriwardena as Secretary to the Ministry of Finance. If appointed, his new position would grant him considerable authority over economic decision-making and policy implementation, raising concerns about the potential erosion of state oversight over the private sector.
The letter warns that such an appointment could create another wave of conflicts of interest, resulting in undue benefits being directed toward the private sector at the expense of the Sri Lankan public. Citing findings by the Auditor General, the organizations highlight the alarming increase in private sector tax arrears from Rs. 904 billion in 2022 to Rs. 1,066 billion in 2023. Additionally, tax arrears in the excise and tobacco sectors rose from Rs. 5.56 billion to Rs. 7.27 billion over the same period.
The 2023 annual report further reveals that the amount of VAT arrears and fines imposed as of December 31, 2023, amounted to Rs. 455 billion. It is alleged that the private sector has unlawfully retained a large portion of the VAT paid by the public, contributing to financial hardship for low-income earners who are already struggling to afford essential goods due to soaring prices.
The letter also accuses the Sri Lanka Chamber of Commerce, chaired by Mr. Hulangamuwa, of persistently defending private sector entities involved in tax-related fraud.
The appeal to the President has been signed by various organizations, including the United Workers’ Federation, the National Land and Agricultural Reform Movement, the Social Institute for Estate Development, the Shramabhimana Kendra, Stand-Up Moment Lanka, Estate People’s Voice, the United Families of the Disappeared, the Organization for the Advancement of Human Status, and the People’s Movement for Land Rights, among others.
Hulangamuwa’s current position is Economic Advisor to the President.
His succeeding the current Secretary Fiancé is an anticipation.
But if appointed, in the normal circumstances he has to resign from all positions in Earnst and Young before assuming duties as Secretary, Finance.