## Sri Lanka: Technical Assistance Report-Governance Diagnostic Assessment

_IMF Staff Country Reports, September 30, 2023_

## Source details

**Canonical URL:** [Sri Lanka: Technical Assistance Report-Governance Diagnostic Assessment](https://www.imf.org/en/publications/cr/issues/2023/09/29/sri-lanka-technical-assistance-report-governance-diagnostic-assessment-539804)

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## Bibliographic details
- Published: September 30, 2023
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400255977.002

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### 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*

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_Source: https://www.imf.org/en/publications/cr/issues/2023/09/29/sri-lanka-technical-assistance-report-governance-diagnostic-assessment-539804_