Govt. to close down and suspend 87 PMus

The Cabinet green-light has been granted to close down and suspend 87 Project Management Units (PMUs) of medium and large-scale projects after considering above the average maintenance costs of these units.

Based on recommendations of a committee headed by a former Ministry Secretary H.T. Kamal Padmasiri , President Ranil Wickremesinghe in his capacity as the Minister of Finance, Economic Stabilisation and National Policies sought the approval of the Cabinet of Ministers to close down 55 existing PMUs, to suspend the activities of 32 others and to continue with 46 PMUs with minimum staff.

In the 2022 Interim Budget, President Wickremesinghe proposed that the functions of the Project Offices and PMUs established for various purposes should be reviewed in particular taking into account the cost and recruitment of huge staff. 

Accordingly, a committee under the chairmanship of Padmasiri was appointed to review and make recommendations as to whether the desired objectives of those Project Offices and PMUs have been achieved and whether they should be continued. 
“Under the current environment, we cannot maintain these units, and salaries of the staff are above average in these offices,” Cabinet Spokesperson Minister Bandula Gunawardana noted. 

However, President Wickremesinghe informed the Cabinet that this may not be the final decision following the requests of several members of the Cabinet of Ministers to maintain operations of some of PMUs as efforts have been undertaken to cut costs. 
Accordingly, the Finance Ministry is expected to continue with its  evaluation together with relevant ministries.