COLOMBO — Parliamentary investigators uncover losses in the hospital’s lightning protection system, underused medical facilities and weaknesses in financial controls, reviving concerns about the university’s governance and its earlier restrictions on civilian medical admissions.
Parliament’s Committee on Public Enterprises (COPE) has called for urgent reforms at General Sir John Kotelawala Defence University (KDU) after uncovering a Rs. 8.44 million loss from stolen copper strips, inadequate asset controls, shortages of medical personnel and the underutilisation of expensive hospital facilities.
The findings emerged during a meeting held on October 21, 2026, under the chairmanship of Member of Parliament Dr. Nishantha Samaraweera. KDU officials were summoned to answer questions arising from the Auditor General’s reports for 2023 and 2024 and the institution’s operational performance.
Among the matters examined were the theft of 2,199 metres of copper strips from the hospital’s lightning protection system, discrepancies in police recovery records, insufficient maintenance arrangements and uncertainty over whether the hospital should operate under a government or private healthcare model.
COPE also reviewed administrative and financial issues involving CUE Technologies Lanka (Private) Limited, a company affiliated with the university, and emphasised the need to amend KDU’s governing legislation.
The findings revive broader concerns about an institution originally established to provide higher education and professional training for members of Sri Lanka’s armed forces, but which has expanded into civilian degree programmes and a large teaching hospital.
That expansion has brought questions about legal authority, institutional accountability, financial sustainability and the effective use of public resources.
Civilian Medical Admissions and the Legal Dispute
KDU operates under the Sir John Kotelawala Defence Academy Act, No. 68 of 1981, as subsequently amended.
Originally established to provide higher education for members of the armed forces, the institution expanded its academic activities to include civilian students and professional degree programmes.
Its Faculty of Medicine began operating in 2009, primarily to address the shortage of medical officers within the armed forces.
According to a Ministry of Defence statement issued in June 2024, KDU began admitting civilian students from Sri Lankan expatriate families to its MBBS programme in 2013.
The university also absorbed 864 students previously enrolled at the South Asian Institute of Technology and Medicine (SAITM) in 2017 and admitted another 87 students referred through the University Grants Commission in 2022.
Fee-paying domestic civilian students, commonly known as day scholars, subsequently became an important part of the university’s medical education arrangements.
Questions about the legal and policy basis for those admissions became particularly contentious in May 2025.
On May 22, Deputy Defence Minister Major General (Retired) Aruna Jayasekara announced in Parliament that the 2025/2026 medical intake would be restricted to military cadets and foreign students.
The decision excluded fee-paying domestic civilian applicants, despite the university having already advertised opportunities for them.
Critics questioned why an institution that had accepted civilian medical students for years was suddenly restricting admissions without adequate notice or a clearly explained transition.
The Government’s position was that the arrangements required review, including consideration of the legal framework and the country’s future medical workforce requirements.
The dispute exposed the uncertainty surrounding the expansion of civilian medical education within a defence university operating under legislation originally designed for a different institutional purpose.
Government Reversed the Admissions Restriction
The initial decision prompted opposition from prospective students, parents and politicians.
Nine parents and guardians submitted a complaint to the Human Rights Commission of Sri Lanka on May 29, 2025, alleging that the restriction unfairly denied eligible applicants access to educational opportunities.
The complainants referred to constitutional protections concerning equality before the law and the State’s responsibility to promote equitable access to education.
Opposition parliamentarians also criticised the measure, arguing that it could drive prospective medical students towards overseas universities and increase expenditure on foreign education.
During subsequent parliamentary discussions, Deputy Education Minister Madhura Seneviratne described the restriction as temporary rather than permanent.
The Government maintained that medical education requirements and the future availability of clinical training opportunities were being reviewed.
In early July 2025, however, the decision was reversed.
KDU resumed accepting applications from fee-paying domestic civilian students for its MBBS programme, with applications for the 2025/2026 intake reopening on July 5.
The university’s published admissions material also confirmed the availability of the programme to eligible day scholars.
A subsequent 2026/2027 admissions announcement included the MBBS degree among the programmes available to civilian applicants.
The reversal resolved the immediate exclusion of domestic applicants, although the original decision and its abrupt implementation remain relevant to questions about policy consistency and administrative accountability.
The wider concern is whether KDU’s governing legislation adequately reflects the scope of its civilian education activities.
COPE’s latest recommendations suggest that the need for legislative reform remains unresolved.
Copper Theft Cost KDU Hospital Rs. 8.44 Million
One of the most serious findings presented to COPE concerned the theft of copper strips belonging to KDU Hospital’s lightning protection system.
Parliament reported that 2,199 metres of copper material, valued at Rs. 8,442,091, had been stolen in incidents occurring during 2022 and 2023.
The theft affected infrastructure intended to protect the hospital’s buildings and electrical systems against lightning-related hazards.
Officials informed the committee that a civilian contract worker and a member of the Sri Lanka Navy had been arrested and produced before court in connection with the incidents.
Their arrests do not, by themselves, establish guilt, and the outcome of the criminal proceedings was not specified in Parliament’s latest account.
COPE questioned discrepancies between the total quantity of copper reported stolen and the amount subsequently recovered by police.
Members also sought explanations for inconsistencies in measurements recorded in documents concerning the material produced as court evidence.
These discrepancies require reconciliation through the original stock records, police recovery documentation and court productions.
They demonstrate weaknesses requiring further examination, but do not conclusively establish that the theft formed part of an organised operation involving senior hospital officials.
Weak Asset Controls and Safety Concerns
The parliamentary examination extended beyond the missing copper.
COPE was informed of shortcomings in the maintenance of hospital asset records, including failures to document equipment and quantities adequately since the institution began operating.
The committee also identified unclear responsibility for maintaining the hospital’s electrical and lightning protection infrastructure.
Scheduled maintenance inspections had reportedly not been carried out consistently.
These weaknesses are particularly concerning in a hospital environment, where the reliability of electrical and safety systems is essential to uninterrupted patient care.
COPE also questioned the decision to replace stolen copper strips with aluminium wires during repairs to the lightning protection system.
Members sought clarification on whether the replacement materials met the relevant technical and safety requirements.
The use of aluminium does not automatically establish that the restored system is unsafe. Its suitability depends on design specifications, applicable standards, installation methods and the electrical characteristics of the complete system.
Nevertheless, the committee considered it necessary for the authorities to demonstrate that the repaired installation provided adequate protection.
The findings indicate that the institution must strengthen asset registers, inspection procedures, maintenance responsibility and technical oversight.
Expensive Hospital Facilities Remain Underused
COPE also examined the operation of the university hospital, which has a capacity exceeding 800 beds.
Despite the scale of the facility, parts of the hospital remain underutilised.
The committee identified concerns involving wards, operating theatres and intensive care units, together with shortages of medical officers and other healthcare personnel.
The availability of sophisticated medical infrastructure does not necessarily mean those facilities can operate effectively without properly trained clinical teams, maintenance support and the necessary medical supplies.
An operating theatre requires surgeons, anaesthetists, nurses, technical personnel and supporting services.
Similarly, intensive care facilities depend on suitably qualified specialists, nursing staff, monitoring equipment and continuous operational support.
Without those resources, expensive hospital infrastructure may remain unused or operate substantially below its intended capacity.
The source account also alleges that medical equipment purchased with public funds has remained unused in storage.
COPE’s official account supports the broader concern about underutilised facilities and weak management, but does not independently establish that every item of equipment described in the source has been abandoned or allowed to deteriorate.
A comprehensive inventory and utilisation audit would be necessary to establish the value and condition of equipment not currently in service.
The committee called for urgent measures to address shortages, improve medicine management and make more productive use of the hospital’s resources.
Government or Private Hospital: COPE Demands a Decision
The uncertainty surrounding KDU Hospital’s operating model was another central issue raised during the parliamentary hearing.
COPE instructed the relevant authorities to decide promptly whether the institution should operate under a government hospital model or a private hospital model.
That decision has implications for service charges, staffing, funding, procurement, patient access and administrative responsibility.
A public hospital model may involve different financial and operational obligations from a commercially managed healthcare institution.
Similarly, a fee-charging model requires clear policies governing tariffs, patient eligibility, financial accountability and the allocation of income.
An unclear operating structure can complicate budgeting and make it more difficult to establish responsibility for service delivery.
COPE warned that failure to settle the issue and implement the necessary administrative measures could worsen the hospital’s existing difficulties.
The question is especially important because substantial public resources and foreign borrowings have been used to develop the facility.
Determining how the hospital should operate is therefore not merely an internal management matter.
It affects the public value obtained from the investment and the healthcare services the institution can sustainably provide.
Affiliated Companies and Financial Controls Examined
COPE also reviewed financial and administrative concerns involving CUE Technologies Lanka (Private) Limited, an entity affiliated with KDU.
The committee referred to observations in audit material concerning the company’s financial management and internal controls.
The supplied source additionally identifies an entity described as CARE Technology Lanka as warranting scrutiny.
The latest official parliamentary release specifically identifies CUE Technologies Lanka, but does not provide equivalent detail about the alleged activities of CARE Technology Lanka.
It would therefore be inappropriate to suggest that both companies have been found responsible for improper transactions without further documentation.
The establishment or operation of a company affiliated with a public institution is not inherently unlawful.
The relevant questions concern its legal authority, ownership, governance, financial reporting and relationship with public funds.
Where a State institution undertakes commercial activities through a separate company, adequate oversight is necessary to ensure that public assets and revenue remain accountable.
Investigators and auditors may need to examine transactions between the university and its affiliated entities, the approval of commercial arrangements and compliance with financial reporting requirements.
COPE’s findings justify stronger oversight, but do not establish that money has been embezzled or concealed through the company structure.
Foreign Loans and Delayed Projects Add to Financial Pressures
The committee also examined the repayment of foreign loans obtained to construct the hospital.
Such borrowing creates long-term financial obligations that must be managed regardless of whether the hospital is operating at its planned capacity.
If the facility remains underutilised, its ability to generate sufficient income or justify continuing expenditure may be affected.
COPE also referred to prolonged delays in the construction of an auditorium.
These matters formed part of its broader examination of the university’s capital spending, project implementation and financial planning.
The committee sought improved financial management and stronger controls to ensure that resources are used efficiently.
Its recommendations reflect the importance of linking future expenditure to realistic operational requirements, available staffing and clearly defined institutional responsibilities.
New Vice Chancellor Faces Governance Challenge
Air Vice Marshal Indika Wickramasinghe assumed duties as KDU’s Vice Chancellor on September 1, 2026.
An aeronautical engineer with senior experience in the Sri Lanka Air Force, he previously served in several major technical and administrative appointments, including Director General of Aeronautical Engineering and Director General of General Engineering.
His appointment came before COPE’s latest examination of the institution.
The new administration therefore faces a substantial programme of governance and operational reform.
Among the immediate priorities are clarifying the hospital’s management model, improving asset security, addressing healthcare staffing shortages, strengthening financial oversight and resolving questions surrounding the university’s legislative framework.
The admissions controversy also demonstrates the importance of transparent policy decisions affecting students and parents.
Although civilian medical admissions were restored in July 2025, the circumstances surrounding the earlier suspension show how uncertainty over institutional authority can disrupt educational planning.
The Vice Chancellor’s role will involve working with the Ministry of Defence, relevant health authorities, university administrators and Parliament’s oversight institutions.
Successful reform will depend on more than identifying weaknesses.
It will require specific decisions, accountable officers, implementation deadlines and measurable improvements.
Parliament Calls for Amendments to KDU Act
COPE has emphasised that amendments to KDU’s governing legislation should proceed without further unnecessary delay.
Officials informed the committee that instructions had already been issued to advance the amendment process in response to shortcomings previously identified.
The objective is to strengthen the university’s governance arrangements and clarify the administrative and management structures necessary for its expanded activities.
Legislative reform could also help address the distinction between KDU’s original defence education responsibilities and its present role in civilian higher education and healthcare.
Any proposed changes would need to account for the interests of military cadets, civilian students, patients, public authorities and taxpayers.
The Government must also ensure that institutional reforms do not interrupt the education of enrolled students or the treatment of patients.
The immediate test will be whether KDU and the responsible ministries act on the committee’s findings.
The recovery and proper accounting of stolen assets, verification of safety systems, fuller utilisation of hospital facilities and stronger controls over affiliated companies are all matters requiring documented follow-up.
For an institution entrusted with substantial public resources, accountability cannot end with the publication of an audit report.
It must be demonstrated through corrective action and transparent reporting on the results.
