Public Finance Data and Analysis
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The 2023 edition of the Open Budget Survey (OBS), the world’s only index which assesses the transparency of national budget cycles, has given Sri Lanka's budget transparency a score of 37 out of 100, placing the country 80th out of 125 globally, and third in South Asia.
This score, while showing moderate improvement, still underscores significant gaps in the accessibility, timeliness, and comprehensiveness of key budget documents, highlighting the urgent need for better public access to fiscal information.
The OBS also assessed budget oversight and public participation. Budget oversight examines the role that the Parliament and National Audit Office (NAO) play in the budget process and the extent to which they provide oversight. Sri Lanka scored 63 out of 100 in this area, surpassing the global average, reflecting the combined efforts of the Parliament and the National Audit Office.
This score marks the first instance of Sri Lanka achieving an adequate level of oversight since oversight was added to the OBS in 2012. However, while audit oversight is deemed adequate, legislative oversight is still limited, indicating the need for stronger legislative involvement in the budget cycle.
Public participation in Sri Lanka's budget process is notably lacking, with a score of just 7 out of 100. This dismal figure indicates that there are minimal opportunities for citizens to engage in budget discussions from formulation to oversight stages.
Effective public participation is essential for creating an inclusive budget process that reflects the needs and priorities of all segments of society, including marginalized and vulnerable groups. To improve, it is crucial for the government to establish formal mechanisms for public involvement at all stages of the budget cycle, encouraging active engagement from the community.
To recover from the ongoing crisis and achieve sustainable growth, Sri Lanka must strengthen its Public Financial Management (PFM) system. Budget transparency, oversight, and public participation in the budget cycle are critical components of effective PFM. Improved performance in these areas is essential to ensure the sustainability of the PFM reforms that are enacted. The recent findings from the Open Budget Survey highlight the importance of addressing these shortcomings, particularly as the country faces significant economic challenges that require robust and transparent financial management.
The Open Budget Survey is the world's only independent, comparative, and fact-based research instrument that assesses public access to central government budget information, opportunities for public participation, and the role of budget oversight institutions. It uses internationally accepted criteria to provide a comprehensive evaluation of how well governments manage and disclose their budgetary processes.
In conclusion, while the OBS 2023 report highlights some progress in Sri Lanka’s budget transparency and oversight, it also points to significant challenges, especially in public participation. Enhancing these aspects is crucial for fostering a transparent, accountable, and inclusive governance framework.
You can access the full country summary report for Sri Lanka here: https://internationalbudget.org/open-budget-survey/country-results/2023/sri-lanka
