Provinces, development and governance

Wednesday, 30 July 2025 00:22 - - {{hitsCtrl.values.hits}}

In October 2024 the President had requested Governors to improve the living conditions of the people. President Anura Kumara Disanayake instructed the Governors to prepare and submit a new proposal aimed at rationalising the Provincial Council mechanism. The President also stated that, given the current Government’s transitional period, the provincial councils must strive to deliver the best possible services to improve the living conditions of the people.

Recent news reported that although Rs. 574 million has been allocated for the Hambantota District this year under the Southern Province Development Program, only about Rs. 23 million has been spent so far in July, amounting to approximately 4% progress.

Frankly, a couple of heads should have rolled. The Governor, Chief Secretary, District Secretary, Divisional Secretaries, Provincial Ministry Secretaries, Deputy Chief Secretary Finance of the Province and the Finance Commission of Sri Lanka are responsible for fiscal oversight.

The Finance Commission consists of five members including two Ex-officio members, namely the Governor of the Central Bank and Secretary to the Treasury. The other three members are appointed to represent the three major communities.

One does not expect the President to be fully versed on all the structures. It is the responsibility of those serving his office to show him the way

Responsibilities of the Finance Commission

It shall be the duty of the Commission to make recommendation to the President as to: a) The principles on which such funds as are granted annually by the Government for the use of provinces should be apportioned between the various provinces; and b) Any other matter referred to the Commission by the President relating to provincial finance. c) The Commission shall formulate such principles with the objective of achieving balanced regional development in the country, and shall accordingly take into account the population, per capita income, the need progressively to reduce social and economic disparities and the need progressively to reduce the differences between the per capita income of each Province and the highest per capita income among the provinces. Accordingly, the Finance Commission is to apportion such funds between the provinces.

Core functions of the Commission

a. Assessment of provincial needs. b. Apportionment of annually granted funds between provinces. c. Division of total amount allocated to each province between recurrent and capital needs. d. Separation of capital funds between Province Specific Development Grant” (PSDG) and Criteria Based Grant” (CBG). e. Breakdown of PSDG between identified development sectors/agencies. f. Formulation of principles and guidelines with the objective of achieving balanced regional development through proper utilisation of provincial finance.

The legal framework is sufficient to enable responsible use of finances. It requires accountability of mandate holders at every level. One does not expect the President to be fully versed on all the structures. It is the responsibility of those serving his office direct to show him the way. Drawing on the corpus of citizens and those of our descent overseas the country has ample brains and brawn to see a surge in development.

(The writer is former Member Commissioner, Election Commission and former Governor, Northern Province.)

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Provinces, development and governance

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