The World Bank yesterday (17) approved a $25 million loan to the Government of Sri Lanka to improve the transparency and efficiency of core government and public financial management functions.

The Public Sector Efficiency Strengthening Project (PSEP) will help strengthen the institutional capacity of the Ministry of Finance to improve efficiency and deliver better services.

The use of information technology and greater human resource capabilities will be the key drivers of this 5-year project.

The European Union will be a partner in PSEP with a technical assistance grant of Euro 10 million to help strengthen core public finance and accountability institutions.

“PSEP builds on long-standing collaborative government and World Bank work in the area of public financial management and supports the priority reform areas of the Government of Sri Lanka” said Idah Z. Pswarayi-Riddihough, World Bank Country Director for Nepal, Sri Lanka and Maldives. “The use of smart technology-based systems such as e-procurement will enhance efficiency, improves transparency and accountability of public institutions through the simplification of procedures,” she further added.

“The project will also leverage international experience in public financial management to increase the impacts of the outcome” said Mohan Gopalakrishnan, Senior Financial Management Specialist and World Bank’s Task Team Leader for the project.

The $25 million loan from the International Bank for Reconstruction and Development (IBRD) has a final maturity of 28 years including a grace period of 11 years.