Govt. directs to draft State Finance Management Act

The Government directed the Legal Draftsman to draft the Bill of the State Finance Management Act, based on the fundamental draft that has been prepared in this regard. 

Additionally, powers have been entrusted to the Treasury Secretary to appoint a specialist committee to initiate the formulation of financial regulations. The committee will facilitate the process till the Legal Draftsmen finalise the proposed draft Bill.

“The proposed State Financial Management Act is expected to streamline financial processes, mitigate risks and strengthen fiscal discipline across Government agencies,” Cabinet Co-Spokesman and Minister Bandula Gunawardena said at the post-Cabinet meeting media briefing yesterday.

On 8 May 2023 Cabinet approved to draft a new framework of financial rules and to include those rules in the proposed State Financial Management Act. 

The draft has been developed with the expertise and guidance of a supervisory committee, co-chaired by representatives from two budget departments and Deputy Treasury Secretaries by the State Finance Department which comes under the Finance, Economic Stabilisation and National Policies Ministry. 

The proposal to this effect presented by President Ranil Wickremesinghe in his capacity as the Finance, Economic Stabilisation and National Policies Minister received the Cabinet of Ministers approval at its meeting on Monday.