Urban Development Ministry rejects restructure of 6 units
Sri Lanka’s Urban Development and Housing Ministry is in a tug of war with the Public Expenditure Review Committee (PERC) on the latter’s recommendations to restructure or liquidate six institutions coming under the purview of the ministry.
The committee has submitted a report on August 8 with 14 proposals including recommendations relating to these six state institutions functioning under the ministry to the cabinet of ministers, finance and urban development ministries. These proposals were devised with the aim of rationalising state expenses through a systematic review to strengthen the country’s fiscal consolidation and economic recovery process, the report revealed.
But high officials of the ministry and heads of these institutions have vehemently protested against these proposals alleging that they were not consulted by the committee.
A strong decision has been taken by them at a meeting held at the parliamentary complex recently to inform the cabinet and the Finance Ministry in writing with reasons against the recommendations of the committee report, while demanding the authorities not to implement its proposals.
This meeting chaired by Minister Prasanna Ranatunge has decided not to take any decision on the implementation of committee proposals without a proper review by the high officials of the ministry and relevant six institutions.
The Finance Ministry-appointed 6-member PERC on urban development ministry activities is headed by Deputy Secretary to the Treasury R.M.P Rathnayake
It has recommended to restructure State Engineering Corporation, liquidate National Equipment and Machinery organisation, restructure or liquidate Building Materials Corporation, liquidate the Urban Settlement Development Authority or naming it as a unit under the Urban Development Authority (UDA).
It has also proposed to hand over the Coast Conservation and Coastal Resource Management Department and the Marine Environment Protection Authority as well as land mine clearance to suitable subject ministries.
Minister Ranatunge has noted that the committee or the additional secretary to the ministry who participated at the committee meetings have not discussed the proceedings or proposals of the report with or other state ministers before arriving at a final decision.
Every director board of these institutions is represented by a finance ministry senior official, he said adding that if these state officials have performed their task properly then there was no need of closing down these institutions.
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