By: Staff Writer
Colombo (LNW): Conflicting to the primary objective of introducing the ‘Govisetha’ lottery, designed to generate funds for the Farmers’ Trust Fund, the administration of the fund has failed to utilise a substantial sum of Rs 5.4 billion remitted to the fund over the past 28 years, since the lottery’s introduction, National audit office observed.
According to the financial statements submitted to the audit inspection, 10 per cent of the Govisetha lottery revenue credited by the National Lottery Board to the Consolidated Fund of the General Treasury from 1995 to the year 2022 under review was Rs.6,367.3 million rupees.
During the period of 28 years, the Farmers’ Trust Fund for Agricultural Sector had been given an amount of Rs.956 million only to carry out the subjects and functions of the Farmers’ Trust Fund.
The funds of the Trust Fund had continuously invested in Fixed Deposits and Treasury Bills without utilizing the money to implement the main objective of establishing the Farmers’ Trust Fund.
Accordingly Rs.465 million in Fixed Deposits and Rs. 90 million in Treasury Bills were invested and an interest income of Rs.73 million had been earned as of 31 December of the year 2022 under review. National audit office claimed.
Although a portion of the Govisetha lottery income was credited to the Farmers’ Trust Fund, it was not utilised for its intended purposes. Instead, the funds were consistently invested in Fixed Deposits and Treasury Bills.
NLB introduced the Govisetha lottery in 1995 on behalf of the Ministry of Agriculture and Lands to generate funds for the Farmers’ Trust Fund.
The fund aims to promote agriculture and the welfare of the farmers and to provide financial assistance to the farmers whenever necessary.
In thewake of challenging economic situation in the country, the Board of Directors of the Farmers’ Trust Fund has decided not to implement new projects, leading to the non-execution of planned projects.
However, the official sources said the fund’s money, invested in fixed deposits and generating interest income, will be utilised for development and loan programmes in the future.
Despite the present situation, the officials of the Farmers’ Trust Fund assured that development and welfare programmes are scheduled to be implemented in the coming years.
The trust deed specifies that the fund’s primary source of income is 10 per cent of the sales revenue from the Govisetha lottery, subject to discussions and decisions with the National Lotteries Board.
Cabinet Paper No. 95/1317/105/081 stated that 10 per cent of the Govisetha lottery income should be remitted to the Farmers’ Trust Fund through a consolidated fund maintained by the Treasury.
Established with the goal of enhancing agricultural development and farmers’ welfare, the fund provides short-term agricultural credit facilities to smallholder farmers, organises agricultural inputs and offers support for crop and animal production processes.
