The Public Financial Management Bill and the Economic Transformation Bill were passed in Parliament today (25th) with amendments and without a vote.
Amendments were incorporated during the committee stage, and the third reading was subsequently passed without a vote. These two bills were initially presented to Parliament on May 22, 2024.
The government states that these significant bills aim to bolster the country’s economy.
State Minister of Finance Shehan Semasinghe recently explained that the “Economic Transformation Bill” and the “Public Financial Management Bill” are designed to enhance the management of public finances, thereby safeguarding against future economic downturns. He emphasized that the “Economic Transformation Law” is aimed at preventing future economic collapses and originates from the vision of President Ranil Wickremesinghe, rather than being proposed by the International Monetary Fund (IMF).
The recent stabilization of the economy following previous downturns underscores the importance of preserving this stability going forward, Semasinghe said. He added that maintaining optimal levels of public financial management is necessary to avert future economic crises.
The “Public Financial Management Bill” is set to enhance accountability in managing public finances. This legislative initiative aligns with recommendations from a collaborative program with the IMF and holds significant importance for the country’s future financial management, according to the state minister.
Semasinghe noted that these drafts contain numerous technical intricacies aimed at bolstering confidence in the economy and maintaining the trajectory of the new economic direction implemented thus far.
Meanwhile, the Supreme Court recently determined that several clauses of the Economic Transformation Bill are inconsistent with the country’s Constitution. Consequently, these clauses require a special majority in Parliament and, in some cases, approval by a referendum to be passed. However, if the contentious clauses are amended, they can be passed with a simple majority, according to the court’s determination.
