Sri Lanka's Committee on Public Enterprises has raised multiple concerns regarding the University of Peradeniya's financial management, including irregular research allowance payments and cost overruns on infrastructure projects.

The Committee on Public Enterprises (COPE), led by Parliamentarian Nishantha Samaraweera, has identified significant concerns with the University of Peradeniya's administrative practices following a review of Auditor General reports for 2023 and 2024. The parliamentary committee scrutinized the institution's financial controls, wastewater infrastructure planning, research funding protocols and overall institutional governance during a meeting at Parliament.

Among the committee's key findings was a substantial cost escalation for the university's wastewater connection project. Initially estimated at Rs. 464 million, the project's cost has risen to Rs. 1.4 billion due to delays in connecting to the Kandy Municipal Wastewater Project. The university has secured Rs. 2 billion in JICA funding to address this infrastructure need.

COPE also scrutinized the university's banking arrangements, questioning the necessity of maintaining 68 separate bank accounts and multiple accounts under various funds, particularly those that remained active following project completion. The committee expressed concern that such arrangements may indicate inadequate financial oversight and control mechanisms.

Another significant issue involved the distribution of research allowances. The committee found that 59 non-academic and executive staff members received these payments without approval from the Research Management Committee and without corresponding research reports. COPE emphasized that research allowances must be utilized exclusively for research purposes and cannot serve as supplementary salary payments.

The committee directed the university to regularize all unapproved positions and allowances through the Department of Management Services and align its practices with government financial regulations. COPE also requested that the institution establish clear Key Performance Indicators for future development and accelerate implementation of wastewater, solid-waste management and clinical block construction projects.