Fake Consultants Undermine Investor Confidence: Senior Expert Sounds Alarm

• CNL Reporter
• April 28, 2025
• Business News
• Investor
• 0 Comments

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As Sri Lanka government promotes public and private investment, the role of qualified consultants in guiding projects has become increasingly crucial. However, a concerning trend has surfaced—investors, both local and foreign, are being misled by unqualified individuals posing as professional consultants, a Senior Environmental Specialist cautioned

These self-styled advisors often lack formal credentials, industry experience, or membership in regulatory bodies, yet manage to present themselves convincingly.

By offering exaggerated projections, fast-track approvals, or guaranteed returns, they lure investors into ventures that frequently result in financial loss, regulatory complications, or complete project failure, he added. .

Such incidents not only hurt individual investors but also damage Sri Lanka’s reputation as a secure investment destination,

Authorities including the Board of Investment and the Public-Private Partnership Unit of the finace minis have urged caution, emphasizing the need to verify credentials before engaging consultancy services.

Recognised institutions such as the Institute of Engineers, Institute of Chartered Accountants, and Chartered Institute of Management Accountants also stress the importance of working only with licensed professionals.

Despite these risks, Sri Lanka continues to be home to a wealth of reputable consultancy firms offering expert, cost-effective, and locally grounded guidance, Mr Jayathilake elaborated.

Their understanding of national regulations, cultural dynamics, and sector-specific challenges makes them invaluable partners in ensuring investment success, he pointed out. .

To sustain investor confidence and protect the integrity of the sector, stronger regulation, accreditation mechanisms, and investor awareness are essential.

Only by holding consultants to professional standards can Sri Lanka build a truly investor-friendly environment built on trust, transparency, and competence, he claimed.

To prove this point he disclosed that his company EML Consultants PLC the only firm listed in the Colombo Stock Exchange has recently received top-tier ISO certifications—ISO 14001:2015 for the Environmental Management System and ISO 9001:2015 for the Quality Management System

It has now initiated an AI-driven agriculture project in Australia for enhancing feed and farm management procedures.

This project is focused on integrating artificial intelligence (AI), machine learning, and data analytics to optimize various aspects of agriculture like precision farming, irrigation management, pest and disease prediction, yield estimation, and supply chain management.

This project could not only modernize Australian agriculture but also create opportunities for Sri Lankan professionals to be employed in overseas projects, with knowledge transfer and capacity building.

Beyond Australia. Their overseas operations encompass various regions, including South Asia, West Asia, Central Africa, and the Pacific Islands, he said.

There are around 8-10 reputed investment project consultancy firms in Sri Lanka with consultants possess in-depth knowledge of local regulations, cultural nuances, and market dynamics, ensuring projects are tailored to the country’s specific needs

Engaging local consultants will likely result in lower fees since they offer competitive pricing arrangements compared to foreign firms.

The Mahaweli Consultancy Bureau (MCB), which is a government-linked organisation, has expertise in arranging and negotiating public-private partnership schemes, providing services ranging from project identification to implementation assistance.

The State Engineering Corporation (SEC) provides comprehensive consultancy services, including architectural design, structural engineering, and project management for various civil constructions.

But these institutions have been tainted with political interference, corruption and irregularities although it had tendered a valuable service during their inception and now it has become white elephants under successive governments.

Mr Jayathilake urged the government to involve reputed local consultancy firms in all development projects carefully evaluating credentials of consultants.

The EML Company now works on a broad spectrum of services that span social and economic development, disaster management, climate change, biodiversity, water supply, wastewater, coastal engineering, urban development, and renewable energy.

This multi-disciplined skill base allows it to undertake difficult projects in a broad spectrum of industries.

In the past decade, the firm has conducted nearly 80 environmental audits and more than 25 social surveys of large-scale development projects, with ensuing projects both locally and internationally.

EML’s clientele includes both public and private sector organizations, as well as foreign companies and international donor agencies. The firm’s in-house staff consists of more than 20 professionals and 20 support staff.