The government of Sri Lanka plans to obtain financial assistance from world lenders to strengthen the state institutions dealing with state fiscal management.
The World Bank and the European Union have agreed to provide a loan of US 60 million and a grant of US$10 million respectively for capacity building and enhancing efficiency of state fiscal management institutions.
The government plans to implement the Public Sector Efficiency Improvement Project (PSEP) using these funds to enhance the efficiency of government investments and debt management, improve the operational efficiency of the implementation of the budget proposals and the procurement process, and enhance management, efficiency, and transparency in delivering public services.
The project focuses on developing the sustainable skills and building capabilities of the public sector and enhancing citizen participation. The Cabinet of Ministers approved the proposals submitted by the Minister of Finance and Mass Media Mangala Samaraweera to obtain the financial assistance to facilitate the implementation of the project.