By: Staff Writer
May 05, Colombo (LNW): The Sri Lankan government plans to impose surcharges on those found guilty. This move follows a recommendation made by the International Monetary Fund (IMF) in its 2023 governance diagnostic assessment report, which called for amendments to the National Audit Act by March 2024.
The revised policy aims to empower the Auditor General to levy surcharges on public officials — including Chief Accounting Officers — who fail in their duties of financial oversight and accountability. These surcharges may be imposed in cases of negligence, misconduct, financial losses, or failure to account for public funds as required by law.
Although no action had been taken since the IMF’s initial recommendation, the current government has now announced an expedited implementation plan. Within two months, a new procedure will be introduced, involving the appointment of an independent five-member committee by the Constitutional Council. This committee will review the Auditor General’s findings and take necessary action against culpable officials.
Previously, the Auditor General’s Department had the authority to disallow expenditures and recommend surcharges for issues such as legal violations in accounts or unreported transactions. However, these powers were limited to a select group of institutions, including local governments and universities. Under the new policy, the scope will expand to include ministries, departments, state-owned enterprises, corporations, and boards.
The independent committee will be led by a retired Supreme Court judge and will also include a retired public finance officer and a representative from the Institute of Chartered Accountants. This panel is expected to bring impartiality and credibility to the process.
The Auditor General’s Department routinely investigates state bodies for financial discrepancies and submits reports to Parliament, recommending necessary corrective actions. These can include disciplinary actions, policy reforms, and strengthened internal controls. However, due to inadequate follow-up and systemic coordination, such measures have often failed to materialize.
This renewed effort reflects the government’s commitment to improve accountability and transparency in public finance, as well as align with international standards on good governance.
