Sri Lanka auditor queries payments on road project

ECONOMYNEXT – Sri Lanka’s Auditor General’s Department has queried what it called contention payments made by the Road Development Authority (RDA) to consultants involved in the Southern Road Connectivity Project.

Auditor General Gamini Wijesinghe said income tax amounting to 11.7 million rupees had been paid by the project on behalf of the consultants based on their salaries  Value-added tax amounting to 6 million rupees and nation building tax of 1.2 million rupees had been paid on payments made to the consultants.

But, the RDA had not taken steps to exempt local taxes on payments to foreign consultants, Wijesinghe said in an audit report on the project funded by the Asian Development Bank.

Under the project, the ADB is helping Sri Lanka improve 33.5 kilometers of national highways that link to three interchanges on the Southern Expressway. 

The project, implemented by the RDA, costs $6 million (801 million rupees), of which $5 million was given by the ADB as a loan.
(COLOMBO, Sept 18, 2017)

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