The Government has planned development projects worth around Rs.2 trillion for the 2027 financial year, with project planning to begin ahead of the Budget in a bid to prevent delays in implementation, Cabinet Spokesman and Health and Mass Media Minister Dr. Nalinda Jayatissa said.
Speaking at the weekly Cabinet press briefing yesterday (15), Dr. Jayatissa said the awarding of contracts for State development projects typically takes place late in the year, often around September, following completion of the procurement process.
He explained that under the existing system, budget allocations are communicated to institutions around January after Parliament approves the Budget, after which project planning begins. However, appeals against procurement decisions can result in further delays, sometimes pushing the planning process until July.
“In view of these delays, we have informed all State institutions through a circular to begin planning, preparing estimates and initiating procurement activities for their development projects ahead of the passage of the Budget in Parliament. Only the awarding of contracts will be held back until the Budget is passed,” Dr. Jayatissa said.
He said the Government has instructed State institutions to commence the necessary preparatory work in advance, while the Ministry of Finance will oversee the implementation of the new approach.
According to the Minister, the move is intended to eliminate delays in contract awards and enable projects to commence at the beginning of the year rather than having contracts awarded as late as September.
He said the measures were necessary as the Government plans to allocate around Rs.2,000 billion for development expenditure in 2027.
“To meet these targets, we need to plan in advance. We cannot afford to delay contract awarding until September if we are to meet the planned requirements,” the Minister added.