By Adolf

Duminda Hulangamuwa served as Chairman of the Ceylon Chamber of Commerce for two years—a position that carries both influence and responsibility. During this period, he developed a close working relationship with then-President Ranil Wickremesinghe and positioned himself, according to sources, as an informal advisor on economic restructuring. According to our sources it was within this framework that Suresh Shah was brought in to lead the restructuring of State-Owned Enterprises (SOEs).

However, the outcomes of this initiative remain questionable. Despite an estimated Rs. 200 million in taxpayer funds spent on consultants, there has been little tangible progress in the privatization or reform of SOEs. Shah is now reportedly under scrutiny, and his role in these efforts is increasingly being questioned. His involvement in the leadership upheaval at Hatton National Bank, where the sitting chairman was removed, has further intensified concerns around judgment and governance of position chasing shameless private sector executives .

Hulangamuwa’s positioning across political administrations has also drawn attention. He was closely associated with the failed tax policy of the failed Gota Administration that led to the bankruptcy of the country, where they decided to allow self assessment . The government lost billions in tax revenue and the policy had to be reversed. During the most recent election cycle, he appeared aligned with the current leadership, and following the victory of Anura Kumara Dissanayake, he secured a role as an advisor to the Ministry of Finance. Despite his track record with the previous administrations. This appointment raises concerns about potential conflicts of interest, given his simultaneous position as Managing Partner of Ernst & Young Sri Lanka. How a leading global audit firm reconciles such dual roles invites legitimate scrutiny.

Public Roles

The intersection of public advisory influence and private professional practice creates, at minimum, the perception of compromised independence. His proximity to the Finance Ministry may also raise questions as to whether access could translate into professional advantage.

These concerns have been compounded by recent developments within the Treasury. In an unprecedented episode since independence, the Treasury reportedly incurred a loss of approximately USD 2.5 million (nearly Rs. 800 million) under questionable circumstances. While formal accountability rests with those in office, the influence of advisors operating without clearly defined responsibility structures cannot be overlooked.

Further scrutiny arises from the large-scale irregularities at National Development Bank PLC, estimated at over Rs. 13 billion. Ernst & Young, as the external auditor, faces legitimate questions as to whether audit standards were rigorously applied and whether material weaknesses were identified and escalated in a timely manner.

There are also unverified claims that certain risks may have been known earlier but not disclosed promptly. If substantiated, such lapses would represent serious breaches of professional and governance standards, and would warrant thorough and transparent investigation.

Taken together, these developments point not merely to individual lapses, but to a broader erosion of governance, oversight, and professional discipline. The convergence of political proximity, advisory influence, and private sector interests creates an environment where accountability becomes totally blurred.

Better Governance 

In the final analysis, the issue is not just about one individual like Hulungamuwa , but what his trajectory represents. Sri Lanka’s institutions require competence, independence, and integrity. When these are compromised, the cost is borne not by individuals, but by the country as a whole.

Private sector professionals who engage with politics and politicians like Hulungamuwa must be prepared for rigorous scrutiny and the consequences it follows . They cannot be seen to derive undue advantage from such proximity. Advising private clients on tax matters while simultaneously influencing public tax policy raises clear concerns around conflicts of interest.

It may be prudent and the right thing for Hulangamuwa to step aside from his public advisory role—much like Sarath Ganegoda—and focus on his professional practice that is now at ground zero. Failing to do so risks not only his own credibility, but also that of Ernst & Young globally , which, according to some practitioners, is already facing serious reputational questions in Sri Lanka.

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