News
Foreign funding for ‘environmental projects’ sans Treasury approval rife
By Shamindra Ferdinando
Former Treasury Secretary Dr. R.H.S. Samaratunga said the Environment Ministry had routinely received foreign funds for projects that had been implemented without prior approval from the External Resources Department (ERD) of the Treasury.
Dr. Samaratunga said so when The Island sought his response to the Auditor General’s disclosure that the Environment Ministry had implemented projects to the tune of USD 9.96 mn and one project worth Euro 1.86 mn in 2017, 2018 and 2019 during his tenure as the Secretary to the Treasury.
The Committee on Public Accounts (COPA) has taken up this issue at a meeting on Nov 19, chaired by Prof. Tissa Vitharana, at the Parliamentary Complex.
Dr. Samaratunga emphasised that other ministries, too, had utilised such funding, sans proper approval and contrary to specific laid down procedures.
According to Dr. Samaratunga who served as Secretary to the Treasury during Ravi Karunanayake and Mangala Samarawee’s tenure as Finance Minister, the funds originated from both governments and INGOs.
Jathika Jana Balavegaya National List MP Dr. Harini Amarasuriya and Samagi Jana Balavegaya (SJB) MP Niroshan Perera who had been present at the meeting presided over by Prof. Vithana underscored the responsibility on the part of ministries and government institutions to adhere with specific instructions pertaining to foreign funding. Lawmaker Niroshan Perera said that the failure on the part of the Environment Ministry to secure approval of the External Resources Department was unacceptable.
During yahapalana administration, President Maithripala Sirisena held the environment portfolio. Former General Secretary of the Communist Party Dew Gunasekera, who had served as the Chairman of the Committee on Public Enterprises (COPE) told The Island that the Treasury should take tangible measures in consultation with relevant authorities to prevent utilization of foreign funds without proper scrutiny.
The former Minister pointed out that the External Resources Department, too, should be on alert and make necessary interventions when required.
Parliamentary watchdog committees have highlighted waste, corruption, irregularities and negligence in public sector enterprises though the government was yet to take action on their findings, Gunasekera said.
The Ministry of Industries and Entrepreneurship Development has recommended the establishment of Sri Lankan Standards, i.e. the import testing methodology for imported tires used for passenger cars and pneumatic tires for three-wheelers with the aim of ensuring a fair competitive environment for local
manufactures and ensuring consumer safety and security.
Taking into the said recommendations, “Import and Export (control regulations N0.08 of the 2026)” has been enacted to amend the existing regulations by means of the Extraordinary Gazette Notification No. 2508/27 dated 2026-10-01, prescribing Sri Lanka standard 1212 for the import of passenger types (HS Code 4011.10.90) and Sri Lanka standard 1347 for the import of
pneumatic tires for three – wheeled vehicles (HS Code 4011.90.10).
Accordingly, the Cabinet of Ministers has approved the resolution furnished by the President in his capacity as the Minister of Finance, Planning, and Economic Development to submit the aforementioned regulations to Parliament for approval.
Approval of the Cabinet of Ministers was granted at their meeting held on 02.06.2025 to introduce a new act to promote and providing legal provisions for facilitating the Public Private Joint Enterprises within Sri Lanka as well as the establishment of the National Agency for Public Private Partnership Joint Enterprises.
Accordingly, the Legal Draftsman has formulated the relevant draft bill and the Attorney General has given his clearance to the said draft bill.
The Cabinet of Ministers approved the resolution furnished by the President in his capacity as the Minister of Finance, Planning and Economic Development to publish the said
draft bill in the government gazette notification and thereby submit it to the Parliament for its concurrence.
Regulation, development and control of indigenous medical sector in Sri Lanka comprised of Ayurvedha, Sidhdha, Unani, Local Therapies are carried out under the provisions of Ayurvedha Act No. 31 of 1961.
Although amendments were made to the act from time to time as per the requirements, the necessity of further amending the Ayurvedha Act has been identified to enable efficiently maintaining all activities of local medical field productively, further formalizing the regulation of the sector, taking actions to providing licenses applicable to export of local medicines, and achieving the progress and sustainable development goals in the local medical sector.
Based on the said factors, the Cabinet of Ministers granted approval to the resolution furnished by the Minister of Health and Mass Media to direct the Legal Draftsman to formulate a draft bill to amend the Ayurvedha Act No. 31 of 1961.
Import and Export (Control) Regulations No. 08 of 2026
Draft Bill of the Public Private Partnership Enterprises Act to be gazzetted
Amendment of the Ayurvedha Act No. 31 of 1961
Cabinet nod to amend the Sri Lanka Development Administration Institute Act No. 9 of 1982
Establishment of the National Higher Performance Centre
State patronage for the cremation ceremony of the late deputy prelate (Anu Nayaka Thero) of the Sri Laka Ramangya Maha Nikaya, Gatambe Rajopawanramadhipatha, Siri Chandawimala Wanshalankara, Chandrakeerthi Sri Amarawansha, Sadhdharmawageeshwara, Shasanashobhanna Most Venerable Keppetiyagoda Siriwimalabhidhana Thero
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