The Hon. (Dr.) Harsha de Silva

¶ 01 Right, so the promise given to the people is being removed. The protection to workers through the Commissioner of Labour will not apply in the Port City. You can try to pass the ball, but if you do not need to do this, you can refrain from it. That is all I will say.

¶ 02 Hon. Deputy Speaker, I must leave now as Central Bank officials are summoned before the Committee on Public Finance. The main point I have is this: the State Minister started the debate saying there is no problem here, that this is a simple matter. It is not so. I informed my Committee colleagues that because we held a closed-door session, only a summary can be presented publicly now. But what we heard indicates there are major procedural problems.

¶ 03 For example, why was the External Resources Department involved? They have no role in this kind of transaction under the law. The Act clearly says ERD may engage only in negotiations for bilateral borrowings, and that, under the Act, government borrowing operations are to be conducted through the Public Debt Management Department. So what is this confusion? There is a serious issue. It is evident they do not know what they are doing.

¶ 04 Another matter: typically, such senior posts are held by career SLAS officers with 30–40 years’ experience, rising to posts like Director-General at the Treasury. But what has happened after “restructuring” is that Sri Lanka Planning Service officers have been placed in these institutions. To my knowledge, both the DG of PDMO and the DG of ERD were from the Planning Service, which does not provide the necessary experience. Even the Treasury Secretary is, for the first time, a former MP who lacks the required management experience.

¶ 05 There is also the delegation of authority: what quantum can a Director approve? The Hon. Anil Jayarante said a US$9 million payment was made. Who approved that? Could a Director approve that? Was there a proper delegation of authority? In any institution, the Secretary must set clear approval limits. Yet a payment of US$9 million was made. How? There has been wrongdoing. The CID is investigating.

¶ 06 Hon. State Minister, you are also in the Committee on Public Finance. In Committee, we identify policy and administrative issues and recommend remedies.

¶ 07 Finally, the Leader of the Opposition’s question was not answered. For three months, neither the Treasury Secretary nor the Deputies came before our Committee. I even wrote to the President. I table that letter now.

¶ 08 Even after that, they said they could not come. We were too lenient. Being professionals must cut both ways. A massive fraud has taken place; millions of dollars are missing; ultimately, taxpayers will pay unless we recover it from the culprits. Otherwise, say plainly you will pass the burden to the people through taxes. That is all I will say now.

¶ 09 The Committee on Public Finance has full powers. Standing Order 121(2)(u) covers “State debt and debt service” for direct examination by COPF. So do not question the Committee’s powers. We will proceed professionally and fairly. Thank you.

¶ 10 (Placed in the Library.)