EU supports Sri Lanka public sector financial reforms
The European Union (EU) is set to continue financial contributions to the Sri Lankan government towards strengthening Public Financial Management (PFM) and Accountability, improving public services, addressing poverty and stimulating economic growth.
Despite the challenging context in a time of political and economic uncertainty in the country, the EU strives to resume its ongoing projects and implement the projects in the pipeline, EU Ambassador to Sri Lanka Tung-Lai Margue said.
The EU has pledged Euro 10 million towards strengthening PFM and accountability in Sri Lanka, he revealed to the Business Times.
It is expected to contribute to sustainable and inclusive economic growth, social development and good governance by supporting the Government in improving the collection, allocation, utilisation and control of public resources.
The programme aims at strengthening fiscal sustainability by promoting an efficient PFM which enhances transparency, accountability and oversight in the use of public funds with a gender equality perspective, he pointed out.
A sum of Euro 40 million has been allocated to improve the capacity of elected institutions for development, service delivery and reconciliation and strengthen citizen’s participation in local government through partnership, joint planning for development and dialogue.
The programme has a component to reinforcing existing mediation mechanisms for dispute resolution. The programme is expected to start implementation in 2019 in partnership with the World Bank, UNDP and the British Council, he disclosed.
The EU-Sri Lanka Trade-Related Assistance project aims to increase the trade competitiveness of Sri Lankan Small and Medium Scale Enterprises (SMEs) in regional and European Union (EU) markets. The four-year EU funded project, worth Euro 8 million, contributes to Sri Lanka’s inclusive trade-led growth and regional integration. It supports SME export competitiveness and value addition in sectors with high potential for economic growth and development.
The project addresses compliance standards and efficiencies in cross-border procedures, which are key constraints to market access, especially for SMEs. Specific attention is given to enhancing value chains in the spice, food and Information Technology/Business Process Outsourcing (IT/BPO) sectors.
The project provides trade capacity building and technical assistance, with a strong focus on training and skills development. Women are heavily involved in trade and are therefore a target group when it comes to capacity building of SMEs and exporters, he added.