Annual Report
Total Page:16
File Type:pdf, Size:1020Kb
Annual Report 2008 Report Annual Ministry of Finance and Planning Sri Lanka Sri Planning and Finance of Ministry 2008Annual Report Ministry andPlanning ofFinance Sri Lanka 1 Ministry of Finance and Planning Sri Lanka Annual Report 2008 Ministry of Finance and Planning Sri Lanka Annual Report 2008 2 This Report is Published in terms of Section 13 of the Fiscal Management (Responsibility) Act No. 3 of 2003 Ministry of Finance and Planning Sri Lanka Ministry of Finance and Planning Sri Lanka Annual Report 2008 Annual Report 2008 Ministry of Finance and Planning 3 (as at 31st December 2008) His Excellency the President Mahinda Rajapaksa Minister of Finance and Planning Hon. Ranjith Siyambalapitiya MP Minister of State Revenue and State Finance and Deputy Minister of Finance and Planning PRINCIPAL OFFICIALS S. Abeysinghe Secretary, Ministry of Finance and Planning Secretary to the Treasury Deputy Secretary to the Treasury R.H.S. Samaratunga Additional Secretary U.R. Seneviratne Senior Advisors R.A. Jayatissa- Senior Economic Policy Advisor W.D.Lakshman - Senior Economic Advisor V. Kanagasabapathy - Financial Management R.P.L. Weerasinghe- Taxation Policy Operations and Review N.G. Dayaratne- Director General Ministry of Finance and Planning Sri Lanka Ministry of Finance and Planning Sri Lanka Annual Report 2008 Annual Report 2008 4 Heads of Treasury Departments (as at 31st December, 2008) Department of National Planning H.M. Gunasekara - Director General B.M.S.Batagoda - Chief Executive Officer Project Management Bureau D.S.Jayaweera - Executive Director National Council for Economic Development Department of External Resources Ms. S Cooray - Director General J.H.J Jayamaha - Additional Director General Ms.M Gamage - Additional Director General Ms. D. Senanayaka - Additional Director General Department of National Budget Ms. W.S. Karunarathna - Director General Ms. C.S. Kumarasinghe - Additional Director General Department of Public Enterprises B.M.S. Batagoda - Director General Department of Management Services L.P. Jayampathi - Director General Department of Fiscal Policy S.R. Attygalle - Director General Department of Trade, Tariff and Investment Policy Ms G.D.C. Ekanayake - Director General Department of Development Finance Ms D.De Zoysa - Director General Department of Public Finance W.Ekanayake - Director General D.Abeysooriya - Additional Director General Ministry of finance and Planning Sri Lanka Annual Report 2008 Heads of Treasury Departments (as at 31st December, 2008) Contd. 5 Department of Legal Affairs Ms. H.M.N.S. Gunawardana - Director General Department of Treasury Operations D. Widanagamachchi - Director General K.K.V. Jayaratne - Additional Director General Department of State Accounts Ms. D.P.R. Senadhipathi - Director General Department of Management Audit P.M.P. Fernando - Director General K.M. Jayatilake - Additional Director General K. Mahalingam - Additional Director General Heads of Departments under the Purview of the Ministry of Finance and Planning (as at 31st December, 2008) Department of Inland Revenue S. Angammana - Commissioner General Department of Customs S.A.C.S.W. Jayatilake - Director General Department of Excise D.G.M.V. Hapuarachchi - Commissioner General Department of Import and Export Control L.P. Jayathilake - Controller Department of Valuation P.W. Senarathne - Chief Valuer Department of Census and Statistics Ms. D.B.P.S. Vidyaratne - Director General Ministry of Finance and Planning Sri Lanka Ministry of Finance and Planning Sri Lanka Annual Report 2008 Annual Report 2008 Heads of Statutory Boards / State Banks / Other Institutions under the purview of the 6 Ministry of Finance and Planning (as at 31st December 2008) Central Bank of Sri Lanka Governor A.N. Cabraal Deputy Governor W.A. Wijewardena Deputy Governor Ms. R.Jayamaha Bank of Ceylon Chairman G. Wickramasinghe General Manager B.A.C. Fernando People’s Bank Chairman W. Karunajeewa General Manager M. Wickramasinghe National Savings Bank Chairman K.D.U. Gunaratne General Manager S.P.R. Perera State Mortgage & Investment Bank Chairman C. Weerakkody General Manager A. Weerasinghe Lanka Puthra Development Bank Chairman A.S. de Silva General Manager Ms. S. Wickramasinghe Rajarata Development Bank Chairman A.B. Karunathilaka General Manager R. Siriwardena Sabaragamuwa Development Bank Chairman B.F. Siyambalapitiya General Manager A.B. Ariyarathna Kandurata Development Bank Chairman Ms. J.G.W.K.R.Jayawardane General Manager H.M.K.B.Hellarawa Ruhuna Development Bank Chairman D. Palihakkara General Manager - Uva Development Bank Chairman T.M.W. Mallahawa General Manager U.V. Gunadasa Wayamba Development Bank Chairman I.M R.B. Khombakadawala General Manager W.A. Sirisena Development Lotteries Board Chairman U. Liyanage General Manager J.D.C. Jayasinghe National Lotteries Board Chairman C. Ataluwage General Manager M.S. Karunaratne Ministry of Finance and Planning Sri Lanka Ministry of Finance and Planning Sri Lanka Annual Report 2008 Annual Report 2008 Heads of Statutory Boards / State Banks / Other Institutions under the purview of the Ministry of Finance and Planning (as at 31st December 2008) Contd. 7 Employees’ Trust Fund Board Chairman/CEO K.M.A. Godawatta National Insurance Trust Fund Chairman A.A. Wijepala Chief Executive Officer B.M.S. Batagoda National Development Trust Fund Chairman J. Wickramasinghe Managing Director H.L.A. de Silva Sri Lanka Accounting and Chairman W.A. Wijewardena Auditing Standards Monitoring Board Director General A.S. Ratnayake Insurance Board of Sri Lanka Chairman U. Kariyawasam General Manager Ms. L. Serasinghe Credit Information Bureau of Sri Lanka Chairperson Ms. R. Jayamaha General Manager N.P.H. Amarasena Securities and Exchange Chairman G Wickramasinghe Commission of Sri Lanka Acting Director General Ms. M.Fernando Sri Lanka Savings Bank Chairman D. Dahanayake General Manager S. Weeratunga Housing Development Finance Chairman S.M.M.Yaseen Corporation Bank General Manager C.A. Sarathchandra Ministry of Finance and Planning Sri Lanka Ministry of Finance and Planning Sri Lanka Annual Report 2008 Annual Report 2008 8 Contents Chapter 1 - Macro Economic Perspectives 20 Chapter 2 - Fiscal Developments 46 Chapter 3 - Performance of Public Enterprises 140 Chapter 4 - Reform Initiatives 174 Chapter 5 - Foreign Financing of the Budget 198 Chapter 6 - A Sectoral Perspective 236 Chapter 7 - Development Finance 260 Chapter 8 - Financial Statements - 2008 286 Tables Table 1.1 - Medium Term Macro Economic Framework (2007-2011) 22 Table 1.2 - Budget Deficits of Selected Countries (% of GDP) 24 Table 1.3 - Price Increases, 2006-2008 June 26 Table 1.4 - External Trade 27 Table 1.5 - Manufacturing Sector Statistics 30 Table 1.6 - Sectoral Distribution of GDP Growth (%) 31 Table 1.7 - Selected Indicators of Service Sector Expansion 33 Table 1.8 - Gross Domestic Product – Sectoral Composition (2002) Constant Prices 34 Table 1.9 - Unemployment Rate by Level of Education 36 Table 1.10 - Movements in the Capital Market 42 Table 2.1 - Loss of Revenue due to Granting of Duty Waivers on Essential Commodities, Petroleum Products and Motor Vehicles 48 Table 2.2 - Summary of Government Fiscal Operations 49 Table 2.3 - Income Tax Performance 50 Table 2.4 - Collection of Value Added Tax 52 Table 2.5 - Estimated Shortfalls in VAT Revenue 52 Table 2.6 - Excise Tax Performance 53 Table 2.7 - Excise Duty Rate Revisions on Cigarettes 54 Table 2.8 - Excise Duty Rate Revisions on Liquor 55 Table 2.9 - Motor Vehicle Imports 55 Table 2.10 - Estimated Shortfalls in Excise Duty Revenue 55 Table 2.11 - Estimated Revenue Loss on Import Duty due to Tariff Concessions Offered by Sri Lanka under Major Trade Agreements during 2008 57 Table 2.12 - Revenue Loss due to the Imposition of Special Commodity Levy to Ease the Cost of Living Considerations during 2008 58 Table 2.13 - Finance & Revenue Related Legislations (2007 November - 2008 December) 61 Ministry of Finance and Planning Sri Lanka Ministry of Finance and Planning Sri Lanka Annual Report 2008 Annual Report 2008 Contents Contents Contd. 9 Table 2.14 - A Summary of Government Revenue 62 Table 2.15 - Variance Analysis of Government Revenue 63 Table 2.16 - Variance Analysis- Estimates vs Actual Revenue Department wise (2004-2008) 64 Table 2.17 - Domestic Petroleum Price Adjustments-2007/2008 66 Table 2.18 - Current Expenditure, 2006 - 2008(1) 66 Table 2.19 - Yield Rates 67 Table 2.20 - Key Statistics of Bus Transportation (SLCTB) 70 Table 2.21 - Key Statistics of Railway Transportation (CGR) 70 Table 2.22 - Fertilizer Subsidy - Paddy Sector (September 2008 ) 71 Table 2.23 - Government Expenditure - Economic Classification 72 Table 2.24 - A Variance Analysis of Government Expenditure 73 Table 2.25 - Welfare Payments and Subsidies 74 Table 2.26 - ”Gama Neguma” - District wise Expenditure in 2008 76 Table 2.27 - Expenditure on “Gamaneguma” - Sector wise Development in 2008 77 Table 2.28 - Financial Allocations under “Jathika Saviya” Programme Main Projects- District wise 78 Table 2.29 - Estate Infrastructure Development - 2008 79 Table 2.30 - Main Programmes Implemented by Samrudhi Authority in 2008. 80 Table 2.31 - Micro Finance Facilities through Samrudhi Banks - 2008 80 Table 2.32 - “Maga Naguma” Rural Road Development Programme – 2008 81 Table 2.33 - Government Expenditure - Functional Classification 82 Table 2.34 - Rural Electrification Schemes Completed in 2008 114 Table 2.35 - Allocations Made during 1st January to 30th December 2008 123 Table 2.36 - Consolidated Budget 133 Table 2.37