Chapter 8: Public Finance | Citizens Constitution
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Chapter 8: Public Finance

This section establishes Parliament’s full control over public finances—including taxation, the Consolidated Fund, withdrawals, contingencies, revenue Bills—and outlines the appointment, powers, independence, and oversight functions of the Auditor-General and the Audit Service Commission to ensure transparent and accountable financial governance.

Article 61: Consolidated Fund and Parliamentary Control

i Drafted from public input and research by civic organizations.

61.1

All revenues, loans, grants, and other moneys received by the Government of the Republic shall be credited to a Consolidated Fund, unless otherwise provided by law.

61.2

Parliament shall maintain oversight and control over public finance to ensure—

(a) transparency and accountability in all financial matters;

(b) that expenditure promotes the national interest and sustainable development; and

(c) the equitable sharing of national resources among the Provinces and local authorities.

Article 62: Withdrawal from the Consolidated Fund

i Drafted from public input and research by civic organizations.

62.1

No moneys shall be withdrawn from the Consolidated Fund except under an appropriation made by law or as provided in this Chapter.

62.2

In making appropriations, Parliament must take into account—

(a) the national interest, strategic objectives, and national security;

(b) provisions necessary to service the national debt and other legally binding obligations of the State;

(c) the needs and interests of the national government, as determined by objective and transparent criteria;

(d) the obligation to ensure that Provincial Councils and local authorities are able to provide constitutionally mandated basic services and perform their allocated functions; and

(e) the fiscal capacity, efficiency, and performance of Provincial Councils and local authorities.

Article 63: Public Procurement

i Drafted from public input and research by civic organizations.

63.1

When any organ of State—including any Ministry, Department, Provincial Council, local authority, state corporation, or any other institution identified by law—contracts for goods or services, it must do so in accordance with a system that is fair, equitable, transparent, competitive, and cost-effective.

63.2

Parliament shall by law prescribe a national framework for procurement policy, and establish an independent procurement authority to monitor and regulate compliance.

Article 64: Government Guarantees and Public Debt Management

i Drafted from public input and research by civic organizations.

64.1

The Government, a Provincial Council, or a public corporation may guarantee a loan, or raise a loan, only if such guarantee or loan complies with conditions prescribed by national legislation, which shall include— (a) limits on total debt and guarantees as a percentage of Gross Domestic Product; (b) requirements for parliamentary approval for commitments exceeding a prescribed threshold; and (c) principles of inter-generational equity and fiscal sustainability.

64.2

The Minister of Finance shall submit an annual report to Parliament on public debt and future financial obligations.

Article 65: The National Treasury

i Drafted from public input and research by civic organizations.

65.1

Parliament shall by law establish a National Treasury as the principal department for financial governance.

65.2

The National Treasury, through national legislation, shall prescribe measures to ensure transparency and expenditure control across all spheres of government by enforcing—

(a) generally recognized accounting standards and practices;

(b) uniform expenditure classification; and

(c) uniform treasury norms and standards for budgeting, reporting, and audit.

Article 66: The Central Bank

i Drafted from public input and research by civic organizations.

66.1

The Central Bank of Sri Lanka is the central bank of the Republic and shall be governed by an Act of Parliament.

66.2

The primary objective of the Central Bank is to achieve and maintain price stability in the national interest, thereby supporting balanced and sustainable economic growth.

66.3

The Central Bank shall, in the performance of its functions and pursuit of its primary objective, be independent. It shall perform its functions without fear, favour, or prejudice, subject to regular consultation between the Governor of the Central Bank and the Minister responsible for finance.

66.4

Powers and Functions of the Central Bank:

(a) As determined by an Act of Parliament;

(b) As traditionally exercised by Central Banks.

Article 67: Annual Budget and Appropriation

i Drafted from public input and research by civic organizations.

67.1

The Minister of Finance shall, in respect of every financial year, cause to be prepared and presented to Parliament annual estimates of—

(a) projected revenues of the Government;

(b) the moneys required to meet charges on the Consolidated Fund; and

(c) the moneys required to be appropriated for the public services.

67.2

The annual estimates shall be accompanied by—

(a) a pre-budget policy statement;

(b) a statement of expenses allocated to each Ministry in the previous financial year, with particulars of the objectives of such expenses and the degree to which they were achieved; and

(c) a fiscal and economic policy framework for the medium term

Article 68: The Auditor-General and Independent Audit

i Drafted from public input and research by civic organizations.

68.1

There shall be an Auditor-General who shall be the supreme audit institution of the Republic. The Auditor-General shall be appointed by the President on the recommendation of the Constitutional Council and shall be independent and subject only to the Constitution and the law.

68.2

The Auditor-General shall audit and report on— (a) the accounts of all departments of Government, Provincial Councils, local authorities, and public corporations; (b) the efficiency, economy, and effectiveness of the use of public resources (performance audit); and (c) the extent to which allocated expenditures have achieved their stated social and economic objectives (social audit).

68.3

Reports of the Auditor-General shall be submitted to Parliament and the relevant Provincial Councils, and shall be made public

Article 69: Independent Audit Service Commission

i Drafted from public input and research by civic organizations.

There shall be an Audit Service Commission (in this Chapter referred to as the "Commission"), which shall consist of the Auditor-General who shall be the Chairman of the Commission, and the following members appointed by the President on the recommendation of the Constitutional Council:-

(a) two retired officers of the Auditor-General's Department, who have held office as a Deputy Auditor-General or above;

(b) a retired judge of the Supreme Court, the Court of Appeal or the High Court of Sri Lanka; and

(c) a retired Class I officer of the Sri Lanka Administrative Service

Article 70: Powers and functions of the Commission

i Drafted from public input and research by civic organizations.

70.1

There shall be an Independent Audit Service Commission, which shall be responsible for—

(a) the appointment, promotion, transfer, disciplinary control, and dismissal of auditors within the National Audit Office; and

(b) recommending to Parliament standards and policies for public sector auditing

70.2

The Commission shall consist of five members appointed by the President on the recommendation of the Constitutional Council, who shall be persons of integrity and experience in audit, finance, law, or public administration.

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