Royal College SDS fund row escalates after audit observations question Rs. 3.342 million write-off and demand action from Education Secretary.
Royal College SDS funds have come under renewed scrutiny after a letter to Education Secretary Mr. Nalaka Kaluwewa questioned the write-off of Rs. 3.342 million.
The letter, dated May 22, 2026, was sent from 57/14 Vihara Mw, Pita Kotte 10100, by Padmasena Dissanayake, an alumnus of Royal College from 1967 to 1974.
It refers to the National Audit (Amendment) Act, No. 19 of 2025, and cites the amended requirement that where a notice has been received from the Auditor General regarding any fraud, corruption, or maladministration under subsection (6) or subsection (7) of section 7, a complaint shall be filed without delay with a law enforcement agency for legal action.
The letter then raises the observations of the National Audit Office regarding the matter of Rs. 3.342 million in School Development Society funds of Royal College Colombo.
According to the letter, the National Audit Office had observed that the Executive Committee had no authority to decide to write off the unreconciled cash balance of Rs. 3.342 million.
It also stated that the Executive Committee had no power to appoint subcommittees to identify and advise it on the matter.
The letter further claimed that the Executive Committee had failed to seek advice and guidance from the National Schools Branch of the Ministry of Education.
It then identified the Executive Committee of the Royal College School Development Society for the year ending December 31, 2023, which, according to the letter, made the decision arbitrarily, improperly, and without the approval of the Ministry of Education.
The committee members named were President Mr. Thilak Waththuhewa, Principal; Secretary Mr. A.S. Bimalka, Parent; Treasurer Mr. A.V.Sudath Chaminda, Staff; Ms. H.N.Perumbuli, Staff; Mr. P.A.D.P. Nishantha, Staff; Mr. M.A.M. Riyaz, Staff; Ms. T. Nandakumar, Staff; Mr. S.K.Mahinda Samarawickrama, Staff; Mr. G.S.P.Gallage, Staff; Mr. Indika Premarathna, Parent; Ms. Apsara Maranthota, Parent; Mr. Savindra Dias, Parent; Mr. Ravi Kamalendran, Parent; Mr. Harindra Madanayake, Parent; Mr. Charitha De Silva, Parent; Mr. Nalliah Rajan, Parent; Mr. Manju Ariyarathna, RCU; Mr. Mahen Perera, RCU; and Ms. D.N.G. Omali, Zonal Director.
The letter then questioned what it described as “incredulous, if not ludicrous” reasons given by the Executive Committee for writing off Rs. 3.342 million of public money.
It said the committee had claimed that present SDS employees were clueless about the matter, while former employees who had left due to transfers and other reasons had said they had no recollection and did not possess any related documents.
Dissanayake compared that explanation to a famous murder suspect who suddenly lost his memory on the way to hospital.
The letter also said the Executive Committee had claimed it was unable to identify any documents sufficient to investigate the connection between past employees and the loss of money.
It questioned whether that was not precisely why institutions such as the CID, Fraud Bureau, and the National Audit Office existed.
A further explanation cited in the letter was that the accounting software had not been functioning, forcing the accounting process to be carried out manually.
The committee had reportedly argued that, after many years, the accuracy of balances withdrawn or transferred could not be examined.
Dissanayake questioned how a senior and experienced public official such as Mr. Waththuhewa could rely on such explanations over a loss of public funds, adding that such excuses appeared possible only at Royal College, which he described as “the most sacred and the holiest cow in Sri Lanka.”
The letter asked why the Executive Committee acted so arbitrarily when the amount involved came mostly from facilities fees paid by nearly 8,000 parents.
It further questioned why Mr. Waththuhewa acted irresponsibly when the SDS was under the control of the Principal, and whether he was unaware that writing off such a large amount of public money required consultation with the Director National Schools and concurrence.
According to the letter, the issue had begun in 2016, based on the 2023 financial statement.
It claimed that under Principal Abeyrathne in 2016, the difference had been Rs. 1.2 million, and by the time he left in 2021, it had increased to Rs. 3.3 million.
The letter said the same position had continued under Mr. Sanath Jayalath, Mr. Rathnayake, and Mr. Waththuhewa.
Dissanayake then questioned whether Mr. Waththuhewa’s reward for such mismanagement was “a kick upstairs,” asking whether there was any wonder the country was in its present condition.
The letter also stated that none of these Principals, described as the best the Ministry could offer to its flagship school, appeared to have inquired into the loss.
It said they should have been fully aware of the Government’s strict Financial Regulations.
According to Dissanayake, to the best of his knowledge, there had been no internal investigation by the Ministry or Auditor General’s inquiry, and no Principal had reported the loss to the Police, CID, or Fraud Bureau.
The letter alleged that because the SDS had over Rs. 100 million in fixed deposits and excess cash in the bank, the Executive Committee may have treated the missing amount as small change.
It further claimed that the Ministry’s rules, regulations, and circulars appeared to have stopped at the Boake Gate.
The letter referred to a recent statement at the Right to Information Commission, where the Ministry’s Information Officer, representing the Secretary, allegedly said Ministry circulars were not applicable to the Royal College Union because it had been established a hundred years ago, while the circulars were more recent.
Dissanayake argued that, scandal or no scandal, Royal College seemed to be above the law.
He said that now the National Audit Office had declared the write-off ultra vires, it was the responsibility of the Education Secretary to recover the money from the Executive Committee, claiming they were jointly and severally culpable.
He stated that Mr. Waththuhewa and his team were responsible for the matter and should repay every rupee lost.
Calling it public money, he noted that the NPP came to power promising to end corruption and fraud.
The letter ended by expressing hope that the Education Secretary would act without delay and set an example to errant officials.
Above all, Dissanayake said, he hoped the country’s leaders still remembered their promises.
