Govt to speed up development projects; eases process to pay contractors

Govt to speed up development projects; eases process to pay contractors

Govt to speed up development projects; eases process to pay contractors

Written by Zulfick Farzan

13 Oct, 2020 | 7:46 pm

Colombo (News 1st);  Sri Lanka’s Cabinet of Ministers approved a proposal to simplify the systems and procedures in place to accelerate the implementation of development activities.

The proposal was put forward to the Cabinet of Ministers by Prime Minister Mahinda Rajapaksa in the capacity of the Finance Minister.
In order to minimize delays, the Prime Minister’s resolution proposed for reports to be submitted to the Cabinet of Minister once in three months on the development projects which could be implemented in an expeditious manner with the approval of the Secretary to the Treasury and the other relevant authorities.
The proposal will also introduce a new procedure to ensure continuous cash flow which enables a payment to contractors for the work completed without delay.
This process would be followed by issuing Treasury Guarantee or Facilitation Letters to the respective banks.
Another proposal by the Prime Minister was given the green light by the Cabinet of Ministers for the incorporation of a company solely owned by the Secretary to the Treasury with all the expressways moved under the particular Company.
‘The new administrative process would allow taking necessary decisions without delay as the Government solely owns the company,” said Sri Lanka’s Joint-Cabinet Spokesperson Keheliya Rambukwella.
The particular company would come under the scope of an audit, he added.

The Cabinet Paper noted this move was approved so that the proposed company is eligible of collecting funds required by itself for the construction of the expressways.

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