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Call to ensure credible implementation of budget-2021 proposals

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By Sanath Nanayakkare

In the lead up to the highly anticipated 2021 budget, Verité Research recently announced the latest results and recommendations of their annual budget monitoring study, which tracks the government’s performance and openness on key promises made in its recent annual budgets.

According to Verité Research, in the 2018 budget speech, the Minister of Finance announced that an implementation unit would be set up under the ministry to monitor the execution of the proposals. However, in response to an RTI (Right to Information) request, the Ministry of Finance claimed that such a unit did not exist. Yet, in another response, this statement was contradicted by the same ministry.

“These weaknesses in information disclosure and implementation of budget promises suggest that the budget being implemented is inconsistent with the one declared to parliament and that the government is not fully aware of how public funds are spent”, Verité said.

“For the period January – December 2017, 8% of promises tracked by our platform from the 2017 budget speech were categorised as fulfilled. At the end of the first six months of 2018, the pace of progress was slow – only 8% of promises were progressing in line with their targets. Besides, progress on 33% of proposals is categorised as either broken, neglected or undisclosed. This means that the government is either not doing what it is saying or not saying what it is doing for budget promises worth Rs. 60,200 million. The bulk of expenditure proposals in the 2018 budget (59%) is thus categorised as lagging in terms of their implementation”.

“In 2019, the platform tracked 37 promises worth Rs. 100,875 million from the 2019 budget. According to it, there is a divergence in what is said in budget speeches and what is implemented, in both expenditure proposals and policy proposals. Their analyses found that many expenditure proposals have their allocations reduced every year. In 2019, 41% of the policy proposals tracked by the platform were not implemented”,Verité has found.

Speaking at the online briefing, Lahiri Jayasinghe, Assistant Analyst – Verité Research said that the government is going to present the budget for 2021 against a background of weak global economy and challenging domestic fiscal conditions exacerbated by the Covid-19 pandemic, and therefore an effective oversight of the budget implementation process for the Financial Year 2021 would be vital.

“The government has announced its vision for a turnaround of the public sector and elimination of waste and corruption. There’s limited fiscal space for government’s operations. In this background, we suggest that there should be a parliamentary committee or an authoritative body of the Finance Ministry to whom the oversight of the budget implementation process is entrusted in order to ensure a credible implementation process in 2021 and achieve the budget’s intended targets and goals”.

“In 2019, openness on proposals was hindered by the frequent changes to ministerial portfolios. The budget monitoring process revealed that the fragmentation of ministries had resulted in a breakdown of the lines of responsibility. Even those that were tasked with oversight of the budget were not able to provide clarity on the agencies responsible for implementing specific budget proposals”.

“In 2019, no information was available on the implementation of 32% of proposals. This is a significant deterioration from the problem of missing information in the previous year, where only 13% of the proposals fell into this category of ‘no information. For a more credible budget, we recommend the following:

1. Develop and document supporting information and analysis for each proposal prior to including it in the budget.

2. Provide timely and consistent disclosure on budget implementation on ministry websites.

3. Provide better oversight through the executive and legislature (e.g parliamentary committees and structures)

4. Reduce the fragmentation of ministerial portfolios and ensure that a clear line of accountability is maintained on the implementation of each budget proposal”, Lahiri Jayasinghe said.

Deshal de Mel, Research Director joined the session for the Q&A while the presentations were moderated by Chalani Ranwala.



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Foreign Minister defends India pacts, sidesteps transparency demand

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The press conference held at the Foreign Ministry in Colombo yesterday. From left:Arun Hemachandra, Deputy Minister of Foreign Affairs, Vijitha Herath, Minister of Foreign Affairs and Tourism and Prof. Ruwan Ranasinghe, Deputy Minister of Tourism

In a press conference marked by both clarity and pointed omission, Foreign Affairs and Tourism Minister Vijitha Herath, yesterday offered a robust defence of two controversial bilateral agreements with India but conspicuously avoided committing to tabling their full texts in Parliament.

The minister’s appearance, billed as a year-opening briefing, took a sharp turn when questioned on the strategic implications of the India-Sri Lanka Defence Cooperation Agreement and Sri Lanka’s acceptance of the Indian Pharmacopoeia.

“No Indian military camps on our soil”

Responding in Sinhala to a question posed in English, Minister Herath moved first to allay what he suggested were widespread misapprehensions about the defence pact.

“This agreement is especially for data and information exchange purposes regarding drug trafficking, drug mafias, human trafficking, and any terrorist activities that could threaten regional security and peace,” Herath stated.

He emphasised that it would also facilitate “various support related to the defence sector.”

In his most definitive assertion, aimed at quieting a persistent national anxiety, the Minister declared: “We must clearly say that there is no plan or possibility of setting up Indian defence camps on Sri Lankan soil.” He categorised the pact not as a “defence agreement” but a “defence cooperation agreement in its real sense,” claiming it creates an “advantageous position” for Sri Lanka.

He linked recent post-‘Ditwah’ cyclone disaster support from India, as well as U.S. aerial support during recovery efforts, to the frameworks established by such cooperation agreements, arguing they have proven beneficial.

Indian Pharmacopoeia: A reputation-based advantage

On the equally contentious acceptance of the Indian Pharmacopoeia – a standard synopsis for drug manufacturing – Minister Herath framed it as a logical step that formalises existing practice.

“We already import a significant share of medicines from India,” he noted. The agreement, he explained, signifies the acceptance of medicines exported by a “reputed Indian pharmaceutical company” approved by its national regulators.

He assured the public that Sri Lanka’s National Medicine Regulatory Authority (NMRA) will continue to remain the monitor. “By entering into this, no disadvantage will happen to us. Only an advantage will happen… it will only be beneficial to us,” he emphasised.

The unanswered question

Despite the detailed assurances, the Minister pointedly ignored the final and arguably most critical part of the question posed by The Island Financial Review : whether the government would table the full text of the two agreements in Parliament for transparent debate and discussion.

This omission is likely to fuel further controversy, as opposition parties, civil society groups, and independent analysts have repeatedly demanded full parliamentary scrutiny, arguing that agreements touching on sovereignty and public health mandate the highest level of public transparency.

Tourism Pride

Shifting to his tourism portfolio, Minister Herath struck an optimistic note, citing record tourist arrivals and foreign remittances in 2025 as a sign of resilient recovery post-Ditwah.

The conference also touched on global affairs. When asked about the U.S. arrest of Venezuelan President Nicolás Maduro, Herath presented a nuanced governmental position. He stated that while his party, the JVP, condemns the action, the government’s official stance is to urge respect for national sovereignty in line with the UN Charter – a reflection of the coalition’s delicate balancing act between ideological roots and diplomatic pragmatism once in governance.

Minister Herath’s explanations provide the government’s clearest public rationale yet for the India agreements, directly confronting fears over militarisation and pharmaceutical quality. However, the deliberate sidestepping of the transparency query left a communication deficit at the heart of the press conference.

High-stakes diplomacy

It reflected a perception that while the administration is willing to defend its policy outcomes, it remains reluctant to subject the processes of high-stakes diplomacy to the full glare of parliamentary and public scrutiny. As these agreements continue to shape Sri Lanka’s strategic and health landscape, the call for their full disclosure is now accompanied by a louder question about the government’s commitment to open governance.

by Sanath Nanayakkare

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‘Vehicle-Testing Can Save Lives’

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Dharmasiri Gamage, Director, Presidential Secretariat, (4th from left), receiving the proposal from Prasanna De Zoysa (2nd from left), AAC Sectoral Chairman, Road Safety and Devapriya Hettiarachchi (3rd from left), Secretary, AAC at the Presidential Secretariat.

Automobile Association of Ceylon (AAC), in collaboration with the Federation Internationale de L’ Automobile (FIA) and under the UN Decade of Action for Road Safety has been consistently engaging in road safety enhancement programs for all citizens of Sri Lanka.

Current data indicates that while over 08 million vehicles are registered in the country, only heavy vehicles (less than 20% of the vehicle population) are subjected to compulsory road-worthiness tests.

Fatal accidents due to technical failures in vehicles are on the rise and the damage to lives and property is severe.

We also understand that there is a death every three hours and eight deaths per day in road accidents. This amounts to nearly 3000 deaths in road accidents per year.

AA of Ceylon has launched the “Vehicle Testing can Save Lives” project with the advice and support given to execute our campaign by the Minister of Transport, chairman, National Council for Road Safety (NCRC), Deputy Inspector General of Police (Traffic Division), Dr. Indika Jagoda, Deputy Director (Accident Service), National Hospital, president, Lions Club of Boralasgamuwa, Metro(Lions Club International – District 306 D 2) and other stake-holders to find a workable, low / cost solution for mandatory vehicle testing in Sri Lanka.

Therefore, this project aims to educate the public on the necessity of checking essential safety features in all vehicles and the benefits of same to all road users.

AAC has therefore respectfully requested Anura Kumara Dissanayake, President of the Democratic Socialist Republic of Sri Lanka, to consider implementing the proposal we have submitted to him, to minimize fatal accidents, injuries to people and damage to vehicles and property due to road accidents and to also implement a rule to have compulsorily road-worthiness checking of all vehicles. (AAC)

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INSEE Lanka appoints new Chief Executive Officer

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Eng. Thusith C. Gunawarnasuriya

Siam City Cement (Lanka) Limited (INSEE Lanka) has announced the appointment of Eng. Thusith C. Gunawarnasuriya as its new Chief Executive Officer, effective 01 January 2026. He succeeds Nandana Ekanayake, who will continue to serve as Chairman, ensuring leadership continuity and strategic stability for the organisation.

A long-standing contributor to INSEE’s journey, Thusith has worked with the company through its evolution under Holcim (Lanka) Ltd, LafargeHolcim and INSEE, playing pivotal roles that influenced both operational progress and strategic direction.

Rejoining INSEE Lanka in January 2025 as Chief Operating Officer, he has since demonstrated exceptional leadership, driving topline growth, improving EBITDA performance, and strengthening talent development initiatives that enhanced organisational capability and business outcomes.

His expertise in business strategy, operations excellence, and supply chain transformation is well-recognised, supported by over 25 years of multi-industry and multi-country leadership experience. His career includes senior positions at Lion Brewery (Ceylon) PLC, Hemas Manufacturing, Fonterra Brands Lanka, GlaxoSmithKline, MAS Active, and DMS Software Engineering. His international exposure spans India, Bangladesh, and Thailand.

Thusith is a proud alumnus of Dharmaraja College, Kandy, and holds a BSc (Hons) in Electrical & Electronic Engineering from the University of Peradeniya, an MBA from the University of Colombo, and an MSc in Business & Organizational Psychology from Coventry University, UK. He has completed executive leadership programs at IMD (Switzerland) and the National University of Singapore. He is also a member of IEEE (US), CILT (UK), ISMM (Sri Lanka), and IESL (Sri Lanka).

Chairman’s Quote – Nandana Ekanayake:

“Thusith’s deep understanding of our business, strong operational mindset, and proven leadership make him the ideal successor to lead INSEE Lanka into the next phase of growth. His experience within INSEE and across multiple industries, positions him well to deliver on our long-term ambitions and uphold the values that define the organisation.”

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