Cabinet approves National Economic Council

The Cabinet yesterday gave the go-ahead to set up the proposed National Economic Council chaired by President Maithripala Sirisena.

The proposal, which was submitted by Sirisena as a note to the Cabinet to establish the high-level policymaking body, was deferred for two weeks until Prime Minister Ranil Wickremesinghe and the President were able to discuss the issue in detail.



Senior SLFP Ministers present at yesterday’s Cabinet Meeting told Daily FT that the proposal was approved without disagreements as there were no “objectionable” features in the note.

According to the note presented by the President, the NEC will include the Prime Minister and the Finance Minister among other top officials.

When the note on the NEC was originally presented there were issues raised on the role of the Cabinet Committee on Economic Management (CCEM) chaired by Prime Minister Ranil Wickremesinghe which functions as the key decision-making unit of the Government for economic affairs.

The proposed body will be the policy-formulating arm of the Government, while the CCEM has concerned itself with specific project-related decision-making, a SLFP senior present at the Cabinet discussion told Daily FT.

“The President wants to make decisions on economic policy-related issues whereas CCEM makes decisions on specific investments or projects once the Ministry puts its forward for discussion. All of these decisions will anyway be directed to the Cabinet for a final decision,” the SLFP Minister said.

The NEC Secretary-General will be represented in the CCEM.

The National Economic Council (NEC) will be an advisory body on economic policy in the country in order to further strengthen policy coherence in the present consensus Government, harnessing the existing talent of this country for national development and meeting the need for such a national body under the head of the Government in the Presidential Secretariat.

The NEC will be a professionally-managed, high-level, national advisory institution reporting directly to the President of Sri Lanka. This body will consist of various divisions in charge of key economic areas related to the development plans and priorities of the Government. The NEC will make recommendations to the Cabinet of Ministers on economic policy.

The principal roles and responsibilities of the NEC, among other functions, include the following:

1. Advise and guide the Government on matters relating to economic policy, plans, programs and management.

2. Advise the Government on the formulation of economic policies and plans that are appropriate to economic development in a holistic and fiscally-sustainable framework.

3. Coordinate economic policies across different institutions to ensure that they are consistent with the Government’s economic plans and priorities.

4. Review and evaluate the institutional structures and quality of economic policymaking across Government ministries and institutions and provide advice on their appropriateness and the changes needed to strengthen policymaking across Government institutions.

5. Advise on appropriate mechanisms to ensure that economic policy decisions and programs are implemented effectively in a timely manner by the responsible implementation agencies.

6. Compile and where appropriate make publicly available information on the economic policies of the country.

The NEC functions as the Secretariat of the President responsible for economic policy formulation, coordination and monitoring of implementation according to the economic and development priorities of the Government. The President may refer any economic matter to the NEC for its review and advice.

The NEC will be headed by the President. The other members of the council will comprise the following nine members:

·         Prime Minister

·         Minister of Finance

·         Secretary to the President

·         Secretary to the Prime Minister

·         Secretary to the Cabinet

·         Secretary-General of the NEC

·         Governor of the Central Bank of Sri Lanka

·         Secretary to the Treasury and Ministry of Finance

·         Secretary to the Ministry of National Policy and Economic Affairs

The NEC will be supported by a competent and experienced staff under a Secretary-General appointed by the President. The Secretary-General represents the NEC in the Cabinet Committee on Economic Management (CCEM) and other relevant bodies in respect to economic and financial matters. The NEC will have a core group of people with expertise in relevant areas of economic policy. (CD)