CoPF reviews procurement delays, new Procurement Act and $ 4.5 m digitalisation grant

• Committee discusses streamlining medicine purchases, expanding digital monitoring system and strengthening transparency in public contracts 

The Committee on Public Finance (CoPF) has reviewed measures to streamline public procurement process, including progress on a new Procurement Act, efforts to address delays in essential purchases and plans to expand digital monitoring with a $ 4.5 million World Bank grant.

The matters were discussed when the Committee met in Parliament on Tuesday (20) under the Chairmanship of MP Dr. Harsha de Silva.

Discussions on the existing procurement framework focused on delays in purchasing goods and services, registration bottlenecks, shortcomings in the legal framework and challenges in adopting digital systems. Particular attention was paid to expediting the procurement of medicines and other essential goods.

The Committee also considered increasing the financial limits of procurement committees to speed up decisions, introducing long-term framework agreements for recurring purchases and developing sector-specific procurement guidelines.

It also highlighted the need to streamline drug registration procedures over the longer term to minimise delays and improve market competitiveness.

The Committee reviewed the progress of the Procurement Management Information System (PROMIS), which is being implemented to digitise public procurement activities. The system is currently used to monitor procurement processes across 394 active procurement units, including 19 Ministries, with plans to extend coverage to Provincial Councils and all Government Departments by 2027.

The meeting was also briefed on delays in implementing PROMIS and the need to terminate the agreement with the previous contractor. The technical evaluation for selecting a new developer has been completed and forwarded to the World Bank for approval. A $ 4.5 million grant from the Bank is expected to support implementation of the system.

Progress in drafting a new Procurement Act to provide a legal framework for existing procurement guidelines and circulars and streamline the overall process was also discussed.

In addition, issues raised included aligning the draft legislation with the Constitution, delays in obtaining observations from relevant ministries and State institutions, and challenges encountered during revisions to the draft.

The Committee also considered strengthening transparency in public contracts through the disclosure of beneficial ownership information relating to procurement contracts and winning companies, including whether any had previously been blacklisted. Streamlining the appeals process was another area of focus.

Members stressed the importance of better coordination among relevant institutions to minimise administrative and technical obstacles and ensure the efficient use of public funds.

Separately, the Committee approved a proposal submitted under the Public Debt Management Act No. 33 of 2024 and Supplementary Estimate No. 06 for 2026, relating to the loan scheme for micro, small and medium-sized enterprises (MSMEs). Officials said priority would be given to applicants already on the waiting list.

The meeting was attended by Deputy Ministers Chathuranga Abeysinghe and Nishantha Jayaweera, along with MPs Ravi Karunanayake, Nimal Palihena, Rhashana Rajakaruna, Wijesiri Basnayake, Chitral Fernando, Thilina Samarakoon, Ajith Agalakada, Sunil Rajapaksa, Champika Hettiarachchi and Lakmali Hemachandra.