Economic Transformation Bill and Public Financial Management Bill tabled in Parliament

The Economic Transformation Bill and the Public Financial Management Bill have been presented to the Parliament, a short while ago.

Accordingly, the parliamentary session had commenced at 9.30 a.m. today (May 22) while the Economic Transformation Bill and the Public Financial Management Bill were presented to the Parliament for the first reading. 

The government says the two significant bills are aimed at bolstering the country’s economy.

The “Economic Transformation Bill” and the “Public Financial Management Bill,” are designed to enhance the management of public finances, thereby safeguarding against future economic downturns, the State Minister of Finance Shehan Semasinghe said recently. 

Explaining the bills, he said the “Economic Transformation Law,” is aimed at preventing future economic collapses and that the legislation stems from the vision of President Ranil Wickremesinghe, rather than being proposed by the International Monetary Fund (IMF). 

The recent stabilization of the economy following previous downturns underscores the importance of preserving this stability going forward, he said, adding that it is necessary to maintain optimal levels of public financial management to avert future economic crises. 

The “Public Finance Management Bill” is set to be presented with a focus on enhancing accountability in managing public finances. This legislative initiative aligns with recommendations from a collaborative program with the IMF and holds significant importance for the country’s future financial management, the state minister said.

He said these drafts contain numerous technical intricacies aimed at bolstering confidence in the economy and maintaining the trajectory of the new economic direction implemented thus far.

Further elaborating on the Economic Transformation Bill, he said it holds paramount importance for the country’s economic growth. 

The state minister said: “Furthermore, it is imperative to enhance the economic competitiveness of the nation and adapt the economy to confront global challenges while fostering international cooperation and growth. Additionally, this bill addresses necessary changes in various sectors.

Specifically, the legislation encompasses reforms essential for international trade, trade agreements, and climate change mitigation efforts.

The establishment of a new Economic Commission in Sri Lanka, aimed at attracting investments to enhance competitiveness, fostering a conducive environment for investors, expanding international trade, establishing the National Productivity Commission, and developing export-related institutions, is also outlined in this bill.

A proposed bill will outline specific national goals and actions taken to address economic challenges, providing a roadmap for sustainable economic growth, debt management, agricultural modernization, import-export regulation, and economic governance.

Additionally, considerable attention has been given to the Public Finance Management Bill, aimed at identifying weaknesses in the current legislation and proposing a robust legal framework to meet future needs.”