This transpired at a meeting the committee had with the management, and its investigation report is to be released shortly.
The president appointed the committee after receiving letters of complaint and petitions that level various accusations against chairman Kavan Ratnayake and the management of LH, including that what it was publishing was critical of the government.
However, the committee found that neither was responsible for the problems in the institution.
The decline in sales is due to the substandard content of its publications, with once much-popular Sarasaviya newspaper being cited as a case in point.
Only Daily News has been able to maintain a satisfactory level of sale.