Sri Lanka: Technical Assistance Report-Governance Diagnostic Assessment
IMF Staff Country Reports, September 30, 2023
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- Sri Lanka: Technical Assistance Report-Governance Diagnostic Assessment
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Bibliographic details
- Published: September 30, 2023
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400255977.002
Context and purpose
- Recent years saw a confluence of shocks and policy missteps that led to a deep economic and governance crisis in Sri Lanka.
- Sri Lanka continues to face severe economic, social and governance challenges.
- The authorities requested IMF assistance to analyse governance weaknesses and corruption vulnerabilities that are macro-critical and impede the objectives of the reform program.
- The report highlights immediate and short-term measures to address key corruption issues, and structural reforms that require more time and resources to strengthen governance and initiate lasting change.
Major findings on governance weaknesses
- Governance weaknesses and corruption vulnerabilities are macro-critical in their own right and stand in the way of achieving the objectives of the reform program.
- Key areas of concern identified include:
- Lack of clarity of authority and responsibility for core government functions.
- Limited financial and operational independence of essential accountability and law enforcement institutions.
- Insufficient transparency in government practices and performance, particularly relating to the planning, spending, and accounting for the use of public funds and assets.
- Barriers to inclusive, accessible, and rule-based means to enforce private agreements and to challenge official behaviour.
- Weak or inefficient mechanisms for making information public and holding organizations and individuals to account for their performance and behaviour.
Recommendations (design and focus)
- The recommendations form a coherent approach to improving governance through the following focus areas:
- Clarity of authority and responsibility for core functions.
- Financial and operational independence of essential accountability and law enforcement institutions.
- Transparency in government practices and performance, especially relating to the planning, spending, and accounting for the use of public funds and assets.
- Inclusive, accessible, and rule-based means to enforce private agreements and challenge official behaviour.
- Efficient mechanisms for making information public and holding organizations and individuals to account for their performance and behaviour.
Implementation sequencing
- Immediate and short-term measures:
- Target key corruption issues that can be addressed quickly to restore confidence and improve accountability.
- Structural reforms:
- Require more time and resources but are essential to strengthen governance and initiate lasting change.
Subject areas and keywords covered
- Subject: Auditing, Budget planning and preparation, Corruption, Crime, International organization, Monetary policy, Public financial management (PFM), Revenue administration, Revenue administration transparency and accountability
- Keywords: Asia and Pacific, Auditing, Budget planning and preparation, Corruption, Global, governance arrangement, governance concern, governance dynamics, governance weakness, revenue administration recommendation, Revenue administration transparency and accountability
Sri Lanka: Technical Assistance Report-Governance Diagnostic Assessment, IMF Staff Country Reports 2023, Issue 340, Pages: 139, DOI: https://doi.org/10.5089/9798400255977.002
Content in this bundle
- 1lkaea2023002