Business

Call to ensure credible implementation of budget-2021 proposals

Published

6 years ago

2020/10/29

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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Business

Commercial Bank extends its operations to Port City Colombo

Published

1 min ago

2026/06/8

Thilina Walpola

The Commercial Bank branch at Port City Colombo.

Commercial Bank of Ceylon PLC’s new branch in Port City Colombo is poised to bring world-class banking services to Sri Lanka’s emerging international financial hub.

Located at Building 04 in Area 02 of the Port City Business Centre – Commercial Hub, Commercial Bank’s Port City Colombo branch will function as a fully-fledged banking operation, strengthening the Bank’s presence in one of Sri Lanka’s most strategically significant emerging economic zones. Designed to serve the evolving financial requirements of corporates, investors, businesses, professionals and retail customers within the Port City Colombo ecosystem, the branch offers access to Commercial Bank’s comprehensive portfolio of financial solutions. These include current and savings accounts, fixed deposits, personal and business lending, housing and leasing facilities, credit and debit card services, inward and outward remittances, foreign currency accounts and transactions, trade finance solutions, import and export services, corporate banking, treasury and foreign exchange services, cash management solutions and digital banking facilities.

By combining full-service branch banking with digital capabilities and uninterrupted self-service access, the new branch reflects Commercial Bank’s commitment to delivering future-ready, accessible and internationally aligned financial services in support of Port City Colombo’s growth as a dynamic hub for commerce, investment and innovation.

Business

Credit card interest rates to increase from July 1

Published

1 min ago

2026/06/8

Thilina Walpola

Following the recent decision by the Monetary Policy Board of the Central Bank of Sri Lanka to raise the Overnight Policy Rate by 100 basis points, a corresponding increase in market interest rates has been reported.

In line with this shift, several banks have already taken steps to increase the interest rates charged on credit cards. Banks have begun notifying their customers that the annual interest rate for credit cards will rise from the current 26% to 28%, effective from July 1st.

This rate hike comes at a time when credit card usage is on the rise. According to the Central Bank of Sri Lanka, the total number of active credit cards in the country stood at 2,166,186 at the end of 2025. By the end of the first quarter of 2026, this number had grown to 2,215,853 cards.

The latest data also highlights a significant increase in consumer debt. The total outstanding balance on credit cards was Rs. 189,706 million as of December 31, 2025. By March 31, 2026, this figure had climbed to Rs. 194,105 million, reflecting a growing reliance on credit despite the looming interest rate adjustments.

Business

Peterson Solutions Sri Lanka opens new corporate office at Orion City

Published

1 min ago

2026/06/8

Thilina Walpola

Iwan Rutjens, Deputy Head of Mission of the Embassy of the Kingdom of the Netherlands

ESG performance, and supply chain resilience

Peterson Solutions Sri Lanka, the consultancy and advisory arm of the globally recognized Peterson and Control Union Group, officially opened its new corporate office at Orion City, Colombo, on June 5, 2026. The event marked a significant milestone in the company’s growth journey and its long-term commitment to supporting businesses across Sri Lanka and the wider region.

The inauguration ceremony was attended by distinguished guests, including Iwan Rutjens, Deputy Head of Mission of the Embassy of the Kingdom of the Netherlands in Sri Lanka, who officiated the ribbon-cutting. Representatives from the European Union, UNIDO, Market Development Facility Australia, industry partners, and clients were also present.

Peterson Solutions draws on a century-old legacy dating back to 1920. The parent group operates in over 80 countries, undertakes projects in more than 120 countries, and serves over 40,000 clients through a network of 6,500 professionals. The company helps organizations navigate complex challenges in sustainability, compliance, sourcing, certification, and technology. Its service portfolio includes certification support, sustainable sourcing, ESG services, digital solutions, training through Peterson Academy, and international crop consultancy via Delphy.

The company serves a wide range of industries, including agriculture, food and beverage, textiles, fisheries, tourism, manufacturing, IT, logistics, and export sectors. Across Asia-Pacific, Peterson Solutions operates 14 regional offices, covering markets such as India, Vietnam, Thailand, Indonesia, Japan, China, Australia, and Singapore.

In Sri Lanka, Peterson Solutions began operations in 2023 from a smaller office in Colombo 03. Within just a few years, it has become a trusted partner to over 170 local clients, while also supporting projects in the Maldives, Cambodia, and Myanmar. The move to Orion City reflects continued growth, team expansion, and rising demand for value-added services, including crop consultancy, sustainable agriculture, digital sustainability management, and professional training.

Key clients include Barista, Pelwatte Dairy, Ethimale Plantations, Sysco LABS, INSEE Ecocycle, Ceylon Tobacco Company, Prima, and Ansell. Company representatives noted that the new office symbolizes a broader vision of helping businesses respond to evolving market expectations, regulatory obligations, and technological transformation. As organizations increasingly focus on responsible growth, ESG performance, and supply chain resilience, Peterson Solutions remains committed to being a trusted partner that turns compliance into competitiveness and strategy into measurable impact.