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IMF diagnostic on Lanka damning verdict – Harsha

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In a scathing indictment of Sri Lanka’s governance landscape, the International Monetary Fund (IMF) had handed down a damning verdict, Samagi Jana Balawegaya (SJB) MP Harsha de Silva told Parliament on Wednesday.

Discussing the contents of the IMF’s Governance Diagnostic Assessment report, he said that the IMF’s verdict was clear: corruption had eaten into all state institutions from top to bottom.

MP de Silva said that one of the main reasons for the delay in disbursing the second tranche of IMF funds was the shortfall in government revenue as well as the sluggish progress in foreign debt restructuring. However, perhaps the most significant roadblock to financial recovery lies in the government’s persistent failure to address its deep-rooted problem of corruption, he said.

The SJB MP urged the Sri Lankan government to swallow the bitter medicine it so desperately needs. With a history of approaching the IMF for assistance a staggering 16 times without lasting success, Sri Lanka now had to adopt comprehensive reforms. The government must seize the opportunity to eliminate corruption and pave the way for a meaningful change, Dr. de Silva said.

The IMF has laid out a rigorous 16-point plan, a blueprint for Sri Lanka’s revival. Those directives, while formidable in scope, were essential steps towards transparency and accountability, the MP said.

They include establishing an Advisory Committee by November 2023 to nominate commissioners for the Commission to Investigate Allegations of Bribery or Corruption (CIABOC).

Dr. de Silva said: “This committee will ensure that the nominations for key anti-corruption positions are not influenced by political interests, which is a critical step in tackling corruption.”

Another IMF recommendation is publishing asset declarations for senior officials by July 2024, an act that brings much-needed transparency, with only 12 out of 225 MPs having disclosed their assets.

“This move will shed light on potential conflicts of interest among top government officials, promoting accountability and integrity,” said Dr. de Silva.

The following are among the IMF recommendations: Enacting Crime legislation by April 2024 to align with international standards, combating money laundering and illicit financial activities, amending the National Audit Act to hold officials accountable for the use of public resources, finalising and implementing regulations for beneficial ownership information and creating a public registry by April 2024, publishing reports on increasing competitive tendered procurement contracts, targeting agencies with low levels of competition, requiring the publication of all public procurement contracts above LK 1 billion and other critical financial information on a designated website, implementing the State-Owned Enterprise Reform Policy to ensure ethical management, abolishing or suspending the Strategic Development Projects Office Act until a transparent process for evaluating proposals is established, and enacting a Public Procurement Law by December 2024, addressing the alarming procurement and corruption issues.

Harsha de Silva said: “It is quite evident the failure in procurement and corruption with the mess that’s going on in the Ministry of Health with emergency procurement but yet no action was taken. If one may recall what happened at COPF not too long ago, when a tax holiday was given to one company for 17 years, I asked only one question: What is the benefit or revenue generated to the government? But they were unable to answer that; they removed me as the Chair of the COPF. Now, the IMF has made it mandatory to reveal the cost of such tax holidays.”

MP de Silva said Sri Lankan citizens were struggling to make ends meet while corruption remained unchecked. Professionals were fleeing the country; public trust in the government was eroding and that the IMF’s intervention was not a burden but a blessing.

“The ball is now in the court of Ranil Wickremesinghe and his SLPP government. Opposition to these measures is not an option, as they represent the only viable path forward. The IMF’s directives are a lifeline, an opportunity for Sri Lanka to cleanse its system, regain trust, and pave the way for a brighter future,” Dr. de Silva said.



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Cabinet Subcommittee on the Development of 25 Technical and Vocational Colleges meets under the Chairmanship of the Prime Minister

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The third meeting of the Cabinet Subcommittee appointed to oversee the development of 25 Technical and Vocational Colleges under the Department of Technical Education and Training was held today (09) at the Parliament Complex under the chairmanship of Prime Minister Dr. Harini Amarasuriya.

The meeting focused on the proposed development programme for the 25 Technical and Vocational Colleges as a key step towards expanding access to vocational education, implementing plans to strengthen infrastructure, and creating new pathways for technical and vocational education in Sri Lanka. Members held detailed discussions on the measures required to advance these objectives.

The meeting was attended by the Minister of Ports, Civil Aviation and Energy, Anura Karunathilaka,the Minister of Labour and Deputy Minister of Economic Planning, Dr. Anil Jayantha, the Minister of Rural Development, Social Security and Community Empowerment, Dr. Upali Pannilage, as well as senior officials from the Ministries of Education, Higher Education, and Vocational Education.

[Prime Minister’s Media Division]

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Representatives of the Organization of Professional Associations (OPA) of Sri Lanka meet the Prime Minister

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Representatives of the Organization of Professional Associations (OPA) of Sri Lanka met with Prime Minister Dr. Harini Amarasuriya on Wednesday (08) at the Parliament premises.

During the discussion, the OPA representatives stated that the organization intends to establish a mechanism to provide direct professional advice to members of the public facing issues across various sectors. They also noted that OPA plans to implement special programmes to offer pre-advice and guidance through its member professional associations to people encountering issues in fields such as agriculture, construction, medicine, and law.

The Prime Minister commended the contribution made by professionals towards enhancing professional standards in the country and advancing national development. The Prime Minister further stated that the Government is ready to support efforts aimed at strengthening professionalism and fostering the sense of national service in the country.

The meeting was attended by the President of OPA, Vice President, and other office bearers of the Organization of Professional Associations of Sri Lanka.

[Prime Minister’s Media Division]

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District Secretaries’ Conference Chaired by the President

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President Anura Kumara Dissanayake stated that the Government plans to allocate a separate contingency fund for every district under the forthcoming Budget, enabling District Secretaries to carry out urgent repairs to bridges, roads and public buildings identified at District Coordination Committee meetings without having to wait for approval from the Central Government.

The President also emphasised that the Government’s foremost priority is to address the basic needs of the people without delay.

President Anura Kumara Dissanayake made these remarks while attending the District Secretaries’ Conference held this morning (09) at the Colombo District Secretariat.

The conference was convened with the objective of strengthening coordination among relevant stakeholders to ensure the more efficient and effective delivery of public services, while promoting district-level economic development by discussing local issues and identifying appropriate solutions.

The discussions also focused on reviewing the progress of district development projects, enhancing coordination between ministries and government institutions, identifying issues at the district level, proposing practical solutions, and assigning responsibilities and follow-up actions.

It was further emphasised that, in the interest of public safety, Divisional Secretaries should prevent people from resettling in areas identified as high-risk and refrain from approving basic utility services, including electricity and water, for such locations.

The President also reviewed the progress of efforts to establish a special authority with statutory powers to manage environmentally sensitive land in the Central Hills. It was noted that the relevant draft legislation has already been prepared and that the new authority is expected to commence operations next year.

The President further stressed that resolving the housing issues faced by war-displaced communities remains a Government priority, adding that plans are in place to resettle 13,000 war-displaced families during the coming year.

He also highlighted the need to systematically implement a programme to relocate people living in areas that are repeatedly affected by floods and landslides to safe and secure housing.

The President also drew attention to housing projects that had been initiated in an unplanned manner for various reasons, including political considerations, and subsequently abandoned midway. He stated that the Government intends to conduct a rapid survey to identify only those projects that are genuinely required by the public and implement a housing assistance programme to provide financial support for the completion of those houses.

The President further emphasised the importance of carrying out housing and other construction projects in accordance with a proper planning framework. He pointed out that numerous issues had arisen as a result of unplanned construction in the Southern Province and stressed that development in the Northern and Eastern Provinces should be undertaken in line with a systematic development plan.

He also noted that, while taking public needs into consideration, the Government is focusing on releasing privately owned land currently under the control of military camps. At the same time, attention is being given to making other large tracts of land available for investment. The President further stressed that, when allocating land for cultivation, measures must be taken to safeguard forest reserves and wildlife protection zones.

Reiterating the need for comprehensive public sector reforms to deliver a high-quality public service, the President stated that plans are in place to abolish non-productive institutions in order to improve the efficiency of the public service.

He further noted that steps have already been taken to fill vacancies in essential sectors, including health and education. The President also pointed out that measures are being taken to urgently fill vacancies in the Department of the Government Analyst in order to address delays in the issuance of Government Analyst reports, which have contributed to prison overcrowding.

Minister of Public Administration, Provincial Councils and Local Government Professor Chandana Abeyratne, Deputy Minister of Provincial Councils and Local Government Ruwan Senarath, Secretary to the President Dr Nandika Sanath Kumanayake, Chief of Presidential Staff Prabath Chandrakeerthi, Secretary to the Ministry of Public Administration, Provincial Councils and Local Government Aloka Bandara, Ministry Secretaries, all District Secretaries, Heads of Departments and other senior government officials were also present.

[PMD]

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