NEC fulfills the task of last post for economic management
The National Economic Council (NCE), appointed by the President with the cabinet approval in September 2017 as an apex high-level national body to formulate, coordinate and ensure the implementation of economic policies, plans and programmes will be fully operational in the next two months.
The council is an advisory body on economic policy to further strengthen policy consistency and it is a powerful oversight body for economic management.
It’s office will be established at the World Trade Centre in Colombo with an initial professional staff of around 20 and later increased to 40 with a team of experts in different fields who will review, analyse economic policies, programmes and make recommendations if necessary, before submitting such proposals to the cabinet, NCE Secretary General and Chief Economist Prof. Lalith Samarakoon revealed.
A think tank will also be appointed shortly focusing on – economic, social, environment and civil society – and it will seek the assistance of local and global experts as and when necessary, he said adding that an industrial and business advisory group will be established with expertise from business leaders, entrepreneurs, industrialists and SMEs.
Addressing a media conference in Colombo this week, he disclosed that this council is the last post to look at such proposals by an experienced and competent group of professionals and experts, before it is submitted to the cabinet. While there was no mention at the briefing, it appeared to be called due to conflict of opinion between the President and UNP ministers. The President has stated during election rallies that he plans to take over economic management after the election, which has annoyed the UNP.
The new agency headed by President Maithripala Sirisena will sit above the Cabinet Committee on Economic Management (CCEM) which is chaired by Prime Minister Ranil Wickremesinghe.
Decisions taken on proposals submitted to the CCEM will be reviewed by the NEC and its advice, observations and recommendations submitted along with the cabinet paper through the President to the Cabinet for approval, Prof. Samarakoon revealed.
The NEC’s mandate is to advise and guide the government on matters relating to economic policy, policy formulation, coordinate with relevant institutions, review and evaluate existing institutional structure such as ministries, corporations, and state owned enterprises, make recommendations for quality decision-making and efficient implementation of policies and proper monitoring.
It comprises 10 members including Prime Minister Ranil Wickremesinghe, Finance Minister Mangala Samaraweera, Central Bank Governor Indrajit Coomaraswamy, Secretary to the President Austin Fernando, Cabinet Secretary – Sumith Abeysinghe, Treasury Secreta ry Dr. R.H.S. Samaratunga, Secretary to Prime Minister Saman Ekanayaka and Secretary to the Ministry of National Policies and Economic Affairs K.D.S. Ruwanchandra.
NEC will have a broader consultative approach on the government’s economic, fiscal and financial affairs under the mandate given to it by the cabinet, he added. It was also pointed out that this agency is a similar mechanism to what prevailed in earlier governments.