"Economic Management in Sri Lanka Lacks Compliance" - Verite Research observes

A research conducted by Verite Research observes that economic management in Sri Lanka lacks compliance both by the bureaucracy and Parliament. 

Commenting on the new Public Finance Management Act proposed in September 2022, Verite Research suggests that rather than the lack of fiscal rules, the more critical problem for Sri Lanka may be the lack of compliance with fiscal rules in public finance management. 

The analysis, which was reported in a Verite publication titled Verite Insights, sheds light on how the Parliament of Sri Lanka had consistently revoked rules set out in the Fiscal Management (Responsibility) Act either by blatantly breaching them or by amending the rule whenever it became a constraint.

The three rules that have been flouted include the rule on budgeted deficit, the rule on central government debt and the rule on treasury guarantees. 

The research further states that in order to recover confidence and build the economy, Sri Lanka may need deeper diagnostic and more robust correction mechanisms with regard to the crisis of governance.