Sri Lanka govt advised to improve project funding
ECONOMYNEXT – The Asian Development Bank (ADB) has advised the Sri Lankan government to improve the way it allocates and disburses funds for projects supported by the lender.
The government’s increased reliance on external borrowing could lead to insufficiency of budget allocations for project expenditure, affecting the disbursement ratio and delaying project implementation, the ADB said in a new report.
It suggested the project teams discuss with government a more efficient way of allocating and disbursing funds.
“This should be considered in the budget process and in the design of funds flow arrangements to ensure that funds will be available during project implementation,” the ADB said.
“Project teams should ensure that the annual budget allocation, including any supplementary budget allocation, fully incorporates the anticipated expenditure from all sources (including ADB, any cofinancing, and government counterpart funds).”
Budget planning and disbursement projections should be agreed on with the government and the executing agencies, said the report designed to support fiduciary risk assessments of projects financed by the Asian Development Bank.
(COLOMBO, March 19, 2018)