Organized crime syndicates, reportedly led by foreign underworld leaders, are manipulating potato tenders at Sri Lanka’s ports, resulting in significant financial losses for the government, according to port sources.
On January 1st, the Port Authority opened tenders for four containers of potatoes imported from China, which had been left unclaimed by the importers. Intermediate buyers, allegedly backed by underworld groups and corrupt officials, submitted a low bid of Rs. 120 per kilo to secure the tender.
This underhanded bid was placed despite the wholesale price of imported potatoes being Rs. 180 per kilo at Sathosa markets and the retail price reaching Rs. 210. After winning the tender, these groups resold the potatoes at a higher price within the port itself, reaping substantial profits.
Port employees and anti-corruption officials have highlighted that this operation involved over 100,000 kilos of potatoes. They estimate that the government incurred a loss exceeding six million rupees due to the low bidding orchestrated by underworld influence.
Officials also point out that if the potatoes had been procured by state institutions, they could have been sold to consumers at a reduced price, easing the burden on the public amidst rising food costs.
The incident underscores a recurring pattern of corruption in port tenders, with underworld gangs exploiting systemic vulnerabilities and colluding with corrupt officials. Calls are mounting for stricter oversight, transparency in tender processes, and immediate action against those involved in such schemes.
This episode serves as yet another reminder of the pressing need to address organized crime’s influence on critical sectors of the economy, which continues to undermine public trust and state revenues.