Smart public finance management will ensure SL’s fiscal sustainability: Shah

Suresh Shah, the Director General of the State Enterprise Restructuring Unit, stated that Sri Lanka’s success in managing its public finances would lead to a sustainable fiscal position in the not-so-distant future. 
He emphasised that achieving this, along with efficient resource allocation and effective delivery of essential services to citizens, would reflect smart public finance management.

“If you look at the three aspects of public finance management, it is fair to say that since independence, we have failed. Fundamentally, it is time for all of us to reflect on the history of our country and ask ourselves how we can make a change going forward,” said Shah.

He shared these views as the chief guest at the Chartered Accountants (CA) Public Sector Wing Annual Conference 2023 held in Colombo yesterday. Shah stressed the importance of adopting a different approach to transform the nation, achieve prosperity, economic development, and establish unique interactions in global trade and foreign relations.  He emphasised the need for improvement and innovation, stating that continuing with old practices would yield the same results and would not meet the aspirations of future generations.
“We need to do things better. Simply doing things as we have done in the past is going to end up with the same result. It is not going to see the kind of change we want for the future generation,” he said.

Shah highlighted the efforts of the SOE restructuring unit to create a more efficient government sector and outlined specific focus areas.  First, there is a proposal to publish financial statements quarterly in addition to the annual report, which has received approval from relevant authorities. 
Once the transition period is complete, entities will be required to disclose their financial records within strict timelines. Second, the plan is to consolidate SOEs under a holding company to establish proper governance and accountability. Third, there is a proposal to discontinue supporting SOEs with treasury guarantees, acknowledging that this transition would require time.
In conclusion, Shah emphasised the need for transformative change in public finance management to ensure Sri Lanka’s sustainable fiscal position and progress in the future.