The Sri Lankan Treasury has initiated a comprehensive review of funds held by various ministries, departments, public enterprises, and other government institutions outside of the government’s Consolidated Fund. This move comes as part of the government’s efforts to ensure better management and accountability of public funds, in line with the provisions of the Public Finance Management Act No. 44 of 2024.
Treasury Secretary Mahinda Siriwardena emphasized that public funds should not be kept outside the Consolidated Fund unless explicitly authorized by law, and only in special circumstances following the passage of a relevant bill in Parliament. He issued a circular to all Ministry Secretaries, Heads of Special Expenditure Units, Department Heads, District Secretaries, Corporations, Statutory Boards, Universities, Higher Education Institutions, and other public institutions, requesting detailed reports on funds they manage, particularly those held outside the official consolidated account.
Reports indicate that there are substantial amounts of both statutory and non-statutory funds under various public institutions. The Treasury has expressed concern about the lack of oversight over these funds, which are often managed separately from the Consolidated Fund.
This action is part of a broader government initiative to streamline the management of public finances, ensuring that funds are used efficiently and in accordance with legal provisions. The new regulations under the Public Finance Management Act require that all non-statutory funds be dissolved within a year of the Act’s commencement. Furthermore, any money previously held in these funds must be redirected to the Consolidated Fund to ensure that public resources are consolidated and managed transparently.
The move to collect details about these funds highlights the government’s commitment to improving financial governance, reducing mismanagement, and enhancing accountability in the use of public funds. It is also seen as an important step in restoring public confidence in the country’s financial systems, particularly amid ongoing efforts to address economic challenges.
