ECONOMYNEXT – Sri Lanka will review the role of 115 state entities which cost 140 billion rupees a year to maintain, Cabinet Spokesman Nalinda Jayatissa said.

Sri Lanka now has 86 departments, 25 district secretariats, and 339 divisional secretariats; 340 enterprises owned by the government and 115 non-commercial state statutory institutions other than police.

“There are boards, commissions, foundations, universities and statutory entities,” Jayatissa said.

“In the 2024 budget, 140 billion rupees was allocated for these entities.”

The 115 non-commercial state statutory institutions come under the supervision of the Department of National Budget and 51 institutions under the Department of Public Enterprises.

The purpose of these establishments has decreased over time, or the entities have lost its timeliness, and they lack or have very little power to initiate programs, and sometimes overlap with other establishments, Jayatissa said.

There was a timely requirement to conduct a review of these entities, he said, and the Cabinet of Ministers had approved a proposal to appoint an official committee headed by the Prime Minister’s secretary to conduct such a review and submit a report with recommendations.

Any savings made following the review will reduce the tax burden of the state on the people, in a spending based fiscal consolidation move.

Sri Lanka has been operating a ‘revenue based fiscal consolidation’ strategy under the IMF from around 2015 which eventually led to sovereign default after money was printed to target potential output. Technical assistance to target potential output was also given by the IMF.

(UCAN) Cardinal Malcolm Ranjith has called for a Sri Lanka free from corruption and lawlessness, emphasizing the urgent need for systemic change.

“Corruption and lawlessness have spread throughout the country due to the wrong economic practices” of previous governments, Ranjith said, and hoped the new government “would bring about a positive transformation.”

“Nowadays, many people living in our country are wondering how even to celebrate Christmas and find their daily meals,” he added.

Speaking to the media ahead of Christmas on Dec. 19, the cardinal urged Catholics to remember the less fortunate this Christmas, encouraging families to open their homes and embrace the poor during the holiday season.

“I request all our Catholic families to invite a poor family in your neighborhood to your home this Christmas and share a meal,” Ranjith said.

He suggested they could provide lunch to a family or books and clothing for the children of the poor.

The Catholic Bishops’ Conference issued a special Christmas message that said the problem of poverty can only be alleviated by creating a fair economic structure.

“Creating this environment in our country requires the sincere commitment of every individual,” the bishops said in their Dec. 18 statement.

Meanwhile, the Coconut Development Authority announced that Cardinal Ranjith will subsidize the government’s purchase of coconuts from church-owned plantations in response to the national shortage and high coconut prices.

Suranimala Gunawardena, a rights activist campaigning against political corruption, said former politicians had misused millions of rupees from the President’s Fund.

Nalinda Jayatissa, the chief government whip and Minister of Health and Mass Media, revealed this in Parliament on Dec. 17.

He said 36 former parliamentarians had received millions of rupees from the President’s Fund from 2005 to 2024.

“This is the fund for people with critical illnesses, such as those needing heart surgery or cancer treatment. It is very difficult to raise 100,000 rupees [$347] for a patient, but former politicians have taken millions from this President’s Fund,” Gunawardena told UCA News.

By Rathindra Kuruwita

The National People’s Power (NPP) will not enter into any agreement that hampers Sri Lanka’s economic development, and the government will only sign agreements that provide mutual economic benefits, Foreign Minister Vijitha Herath told journalists on Friday (20).

Addressing a press conference at the Government Information Department, Herath clarified that Sri Lanka and India had not agreed to lay an oil pipeline between the two countries or connect their national electricity grids during President Anura Kumara Dissanayake’s recent visit to India.

No new agreements were signed apart from a Memorandum of Understanding (MoU) to avoid double taxation and train Sri Lankan civil administrators in India, he stated.

“There are many proposed and ongoing Indian power and energy projects in Sri Lanka, but some of these face technical challenges. Under the previous administration, the Ceylon Electricity Board (CEB) and an Indian company signed an agreement to implement the Sampur solar power project. During the visit, we agreed that this project should proceed,” Herath said.

The minister further noted that discussions would continue on procuring liquefied natural gas (LNG) from India and advancing joint wind power projects. He stressed the importance of promoting solar and wind energy projects, adding that Sri Lanka must export surplus electricity.

“To export energy, we must collaborate closely with India. We plan to do so within the framework established by the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC). We have agreed to base discussions on this,” he explained.

The government has also agreed to further discussions among India, Sri Lanka, and the UAE on implementing a multi-product pipeline from India to Sri Lanka to ensure the supply of affordable and reliable energy.

“We have not agreed to construct any pipeline. There is a proposal in place, and we have only agreed to participate in discussions. Additionally, we have agreed to continue talks on the joint development of offshore wind power potential in the Palk Strait, with a focus on environmental protection, including the preservation of flora and fauna,” he said.

Herath also mentioned that during Udaya Gammanpila’s tenure as Minister of Power and Energy, Sri Lanka and India agreed to develop 61 oil tanks at the Trincomalee tank farm. Currently, Sri Lanka operates 24 tanks, while 15 are managed by the Indian Oil Corporation (IOC).

“When Gammanpila was the minister, Sri Lanka agreed to jointly develop the remaining 61 tanks. We have agreed to continue discussions on renovating these tanks,” he said.

The foreign minister emphasised that the government had not agreed to sign the Economic and Technology Co-operation Agreement (ETCA). “We will not sign any agreement that hinders our economic development. Agreements will only be signed if they provide economic benefits to both parties,” he asserted.

He added that an early finalisation of the proposed bilateral Social Security Agreement between the two countries was also agreed upon. “Many Indians work here, and many Sri Lankans work in India. We aim to ensure that these individuals have access to their legitimate labour and social rights. This is not a security agreement in a military sense,” he clarified.