The Committee on Public Enterprises (COPE) has recommended that legal action be taken to restore the Sri Lanka Institute of Information Technology (SLIIT) under the Mahapola Trust Fund, citing that the institution's conversion to a fully private entity was carried out unlawfully.

COPE Chair Nishantha Samaraweera made the recommendation during a committee session on 9 July, highlighting that the 2015 Cabinet-approved ownership transfer lacked proper legal foundation. He stressed that SLIIT had originally been established as a state institution and that its current status must be rectified.

It was revealed that SLIIT paid Rs. 408 million to the Mahapola Fund as part of the ownership change, prompting concerns among MPs about the legality and ethics of such a transaction. The committee emphasised that the institute’s current operations should not be disrupted but its administration must be returned to Mahapola for more affordable higher education.

COPE also flagged serious internal issues within the Fund, including staffing gaps, Rs. 750 million in losses due to a failed lottery operator agreement, and underperforming subsidiaries like NatWealth Securities. A commercial audit has been recommended to investigate these matters further.