Transparency International Sri Lanka (TISL) has expressed serious concern that a provision within the new Public Financial Management Act (PFMA) No. 44 of 2024 may compromise the financial and institutional independence of the Commission to Investigate Allegations of Bribery or Corruption (CIABOC).
The concern centres on Section 21 of the PFMA, which requires all budgetary entities to prepare and submit budget estimates in line with the "budget call circular" issued by the Treasury.
This section grants the Ministry of Finance the power to set binding expenditure ceilings and issue detailed policy guidance to these entities.
The conflict arises because the Anti-Corruption Act No. 9 of 2023 mandates CIABOC, as an independent commission, to submit its annual budget estimates directly to Parliament.
However, the PFMA requires CIABOC to route its budget through the Ministry of Finance for inclusion in the annual budget and also necessitates ministerial approval for any investment programmes.
TISL views this as a serious departure from the safeguards established to protect CIABOC's financial and institutional autonomy.
TISL acknowledges that the PFMA's intent is likely to promote fiscal discipline across government, but it argues the risk to a vital law enforcement body is too high.
CIABOC is Sri Lanka’s apex anti-graft body and must be able to independently plan, allocate, and manage its resources to fulfil its mandate while remaining accountable to Parliament.
Subjecting its budget to Treasury-issued circulars that impose prescriptive guidance effectively places its financial autonomy under executive oversight.
TISL warns that the implementation of Section 21 in its current form risks contravening international commitments:
“The United Nations Convention Against Corruption (UNCAC), to which Sri Lanka is a State Party, requires States to ensure that national anti-corruption agencies have the independence and resources necessary to perform their functions effectively (Articles 6 and 36)... Subjecting CIABOC’s budget to a Treasury-issued circular that imposes ceilings and prescriptive policy guidance effectively places the Commission’s financial autonomy under executive oversight.”
TISL concluded by calling on the government to proceed with caution:
“The introduction of reforms to improve management of public funds, such as the PFMA itself, should aim to reinforce, not restrict, the independence of institutions tasked with upholding financial integrity and combating corruption... The government must proceed with caution when new legislation intersects with the mandates of independent commissions.”
The organisation emphasised the need for greater openness and consultation in Sri Lanka's lawmaking process to prevent reforms intended to strengthen governance from inadvertently weakening crucial institutional independence.
The concern centres on Section 21 of the PFMA, which requires all budgetary entities to prepare and submit budget estimates in line with the "budget call circular" issued by the Treasury.
This section grants the Ministry of Finance the power to set binding expenditure ceilings and issue detailed policy guidance to these entities.
The conflict arises because the Anti-Corruption Act No. 9 of 2023 mandates CIABOC, as an independent commission, to submit its annual budget estimates directly to Parliament.
However, the PFMA requires CIABOC to route its budget through the Ministry of Finance for inclusion in the annual budget and also necessitates ministerial approval for any investment programmes.
TISL views this as a serious departure from the safeguards established to protect CIABOC's financial and institutional autonomy.
TISL acknowledges that the PFMA's intent is likely to promote fiscal discipline across government, but it argues the risk to a vital law enforcement body is too high.
CIABOC is Sri Lanka’s apex anti-graft body and must be able to independently plan, allocate, and manage its resources to fulfil its mandate while remaining accountable to Parliament.
Subjecting its budget to Treasury-issued circulars that impose prescriptive guidance effectively places its financial autonomy under executive oversight.
TISL warns that the implementation of Section 21 in its current form risks contravening international commitments:
“The United Nations Convention Against Corruption (UNCAC), to which Sri Lanka is a State Party, requires States to ensure that national anti-corruption agencies have the independence and resources necessary to perform their functions effectively (Articles 6 and 36)... Subjecting CIABOC’s budget to a Treasury-issued circular that imposes ceilings and prescriptive policy guidance effectively places the Commission’s financial autonomy under executive oversight.”
TISL concluded by calling on the government to proceed with caution:
“The introduction of reforms to improve management of public funds, such as the PFMA itself, should aim to reinforce, not restrict, the independence of institutions tasked with upholding financial integrity and combating corruption... The government must proceed with caution when new legislation intersects with the mandates of independent commissions.”
The organisation emphasised the need for greater openness and consultation in Sri Lanka's lawmaking process to prevent reforms intended to strengthen governance from inadvertently weakening crucial institutional independence.
