Cabinet grants approval to introduce a new Public Financial Management Act

Cabinet Spokesperson Bandula Gunawardana stated in parliament that the Fiscal Management (responsibility) Act No. 3 of 2003 could have successfully curbed the financial crisis, however, because of several amendments, today the budget gap has risen to 10-12 percent and state debt has increased to over 125% of GDP and guarantees for state debt have gone up to 15%. 

The new Financial Management Act approved by Cabinet is correct the situation. It will oversee public financial management within a legal framework, by making changes to the old act, ensuring that it cannot be amended unless submitted through a special proposal in Parliament.