Prime Minister orders CB to submit quarterly reports of bond sales to parliament

Wednesday, 25 May 2016 00:00 - - {{hitsCtrl.values.hits}}

Prime Minister Ranil Wickremesinghe has ordered the Monetary Board of the Central Bank to submit detailed quarterly reports on the issue of domestic and foreign bonds to the State Financial Committee of the Parliament.

The PM has noted that although the control of state finances is vested in Parliament under the Clause 148 of the Constitution, many financial activities had taken place in the past without the knowledge of the legislature. Even the procurement of loans and the signing of financial agreements had taken place secretly without the knowledge of Parliament.

According to the PM, the parliament was kept in the dark in signing agreements even on large scale projects, Even the Colombo Port City Agreement had been signed by-passing the Parliament.

The Prime Minister has issued this order based on the need to create a tradition of frequently enlightening Parliament on financial activities.

Accordingly, the Monetary Board should forward to the Parliamentary Supervision Committee once in every three months not only about Monetary Board bonds but also on Foreign Reserves.

The Government intends to set up a Committee on Economic Activities and this Committee should also submit a quarterly report on the economy to Parliament. The Committee will be entrusted in reporting to Parliament on the manner in which foreign resources are utilized.

The Finance Ministry is tasked with submitting to Parliament every quarter a detailed reform on state finances. The report should include all information on the collection of income taxes. The Parliament will also be entrusted with the powers to look into charges on state monitory issues.

This methodology will pave the way to carry out state financial activities in a responsible and transparent manner, the Prime Minister emphasized.