The Hon. (Dr.) Anil Jayantha - Minister of Labour and Deputy Minister of Economic Development

¶ 01 Thank you very much, Hon. Deputy Chairperson of Committees.

¶ 02 The expenditure of public funds through the Sri Lankan Parliament by way of decentralized funds is a mechanism to channel state funds to the respective districts and areas represented by Members of Parliament. In addition to funds sent by the Central Government, there are also certain decentralized allocations made under Provincial Councils and through local authorities under line ministries. But here, under the specific matter of the Decentralized Programme, we discuss the following.

¶ 03 The question raised is whether we are implementing this year, under the district programme, in the same manner as in previous years. The public elects their representatives based on that seat and area. Accordingly, in addition to nationwide development activities, each MP should be given some decentralized funds to develop and improve their area. We agree with that in principle. We are prepared to implement it that way. Accordingly, this year too, a total of Rs. 2,250 million has been allocated—equating to Rs. 10 million per each of the 225 MPs.

¶ 04 However, we must be mindful of this: if we aim for sustainable development, rather than 225 MPs executing activities according to their own preferences, it is more effective to spend these funds under a programme targeted at district-based economic development. Then it contributes to a productive economy. On that rationale, we submitted the proposal to the districts. Accordingly, any MP in each district can submit project proposals for developing their area to the District Coordinating Committee under the given criteria. These are then discussed through the District Coordinating Committees, bringing everyone together. For 2025 as well, project proposals have been received covering the Rs. 2,250 million. However, we will not promote giving cash and spending those funds informally at the local level. Ultimately, public funds must be spent to take the country forward as a whole. That is our new approach.

¶ 05 Presenting that approach, the Ministry of Finance, by Circular MF/02/2025 dated 2025.01.29, under paragraphs 2.7 and 3, has issued instructions to District Coordinating Committees.

¶ 06 Those guidelines particularly target entrepreneurship, empowerment, group cohesion, and working in an integrated manner rather than implementing scattered, individual projects.

¶ 07 Over the past ten years, various allocations have been made. There is an annex that sets out these allocations. For the Hon. Member’s understanding, I will read part of it. From 2015 to 2025, the allocations made are recorded there: in 2015 Rs. 1,125 million; in 2016 Rs. 3,375 million; in 2017 Rs. 2,317 million; in 2018 Rs. 2,500 million; in 2019 Rs. 2,250 million; in 2020 no allocation; in 2021 Rs. 2,250 million under the Department of National Planning; in 2022 Rs. 3,150 million via the Ministry of Home Affairs (through District Secretariats), later suspended; in 2023 no allocation; in 2024 Rs. 13,250 million via the Presidential Secretariat; and in 2025 Rs. 2,250 million via the Department of National Planning. I table the detailed document.

¶ 08 All these funds are allocated under this criteria-based mechanism.

¶ 09 In 2024, the main objective of assigning the District Decentralized Programme to the District Coordinating Committees was to implement the programme at the ground level. If there is a project, those who truly know what should be done, how it connects to their local economy, and what benefits they can derive, are the people living on the ground. Therefore, within the organisational structure, the lowest tier is the District Coordinating Committee. That is why this was taken there. Those District Coordinating Committees are linked with the relevant Divisional Secretariat divisions and local authority divisions, enabling genuine community ideas and development needs to be brought forward.

¶ 10 Regarding utilisation, allocation, and initiation of these provisions, guidelines have been issued to the District Coordinating Committees. The Ministry has provided instructions under defined criteria for implementing the Decentralized Programme, along with timelines. Project proposals were submitted within those timeframes. Some projects had shortcomings; these were corrected and sent back to the local level and have now been received by the Ministry of Finance. All these projects stand approved. However, there has been some delay in the release of funds. We must expedite this. Since all funds are approved, I take this opportunity to request all relevant institutions to work together to expedite expenditure.

¶ 11 On equitable distribution, we maintain fairness when allocating annually. We know that the number of MPs representing a district is used as a primary basis for allocating provisions to districts, and the number of MPs is itself based on population. Some might argue to add further criteria, but as it stands, this is the method. Allocations are made at Rs. 10 million per elected MP. There are 196 elected MPs and 29 National List MPs, making 225 in total.

¶ 12 To ensure this mechanism is successful, the Government’s monitoring and evaluation framework operates through the District Coordinating Committees and the strengthened regional structures, including local authorities. Progress of each subcommittee is reported monthly, while active working groups, through the District Secretary and officials, conduct supervision. No project succeeds 100 percent at once; obstacles can arise. By responding pragmatically to such challenges and working continuously, we expect to make this a highly successful programme.

¶ 13 Thank you.