Financial Times

World Bank efforts to improve Lankan accountability

A draft report assessing Sri Lanka's management of public resources was discussed at a Colombo workshop last week with stakeholders from the government, parliament, academic institutes, media and civil society.

The "Country Financial Accountability Assessment", was undertaken by a team comprising government and World Bank officials. Workshop participants considered how its main findings and recommendations could be integrated into the government's ongoing programme of fiscal and financial management reform.

This assessment is a tool designed by the World Bank to assist its clients.

It assesses risks to the development objectives of a country arising out of any gaps or weaknesses in financial management of public resources. Work on a draft CFAA for Sri Lanka was undertaken from February to October 2002 by a team comprising World Bank staff, government counterparts, and consultants.

The work was carried out through a review of existing studies and ongoing self-assessment reports of the government, desk research, field study in specific areas, and extensive discussion and dialogue with concerned stakeholders in the government, private sector, legislature, media, civil society, and donors.

This assessment emphasizes the importance of taking actions that both stimulate demand for prudent financial management and build capacity of the government to respond to the public's requirements for more efficient and effective delivery of services.

Much stress is placed on an action oriented approach for strengthening public financial accountability and management that is crucial for economic growth and sustaining a strong economy, the bank said in a statement.

It makes a number of recommendations for strengthening the primary institutions of public financial accountability.

The effectiveness of parliamentary committees, such as the Committee on Public Accounts and Public Enterprises, will improve with greater public access to hearings in Parliament. The impact of the Auditor General will improve if it was made independent of the executive. The country's accounts would become more informative if the form and contents were in line with international standards of financial reporting.

A more open and participative form of governance can be accomplished by removing obstacles, such as, certain provisions in the Officials Secrets Act and the Establishment Code.