Ministry of Finance and Planning Sri Lanka Annual Report 2007
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Ministry of Finance and Planning Sri Lanka Annual Report 2007 Ministry of Finance and Planning Sri Lanka Annual Report 2007 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 2007 Annual Report 2007 Ministry of Finance and Planning (as at st March, 008) 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 P B Jayasundera Secretary, Ministry of Finance and Planning Secretary to the Treasury Deputy Secretaries to the Treasury S Abeysinghe R A Jayatissa R H S Samaratunga L R De Silva Additional Secretary U R Seneviratne Administration U G K Samarasekera - Director General Operations and Review N G Dayaratne - Director General Management Audit Department P. M. P. Fernando - Actg. Director General K. M. Jayatillake - Additional Director General K. Mahalingam - Additional Director General Senior Advisors W D Lakshman - Senior Economic Advisor V Kanagasabapathy - Financial Management R P L Weerasinghe - Taxation Policy Fiscal Management Reform Program Ms. G D C Ekanayake - Project Director Ministry of Finance and Planning Sri Lanka Ministry of Finance and Planning Sri Lanka Annual Report 2007 Annual Report 2007 Heads of Treasury Departments (as at st March, 008) National Planning Department B Abeygunawardena - Director General H.M.Gunasekera - Additional Director General B.M.S.Batagoda - Chief Executive Officer Project Management Bureau D S Jayaweera - Executive Director National Council for Economic Development External Resources Department Mrs. S Cooray - Director General J H J Jayamaha - Additional Director General Mrs. M Gamage - Additional Director General National Budget Department Mrs. W S Karunarathna - Director General Mrs. C S Kumarasinghe - Additional Director General Public Enterprises Department B M S Batagoda - Director General Management Services Department P A Abeysekera - Director General L P Jayampathi - Additional Director General Fiscal Policy Department S R Attygalle - Director General Trade, Tariff & Investment Policy Department Ms. G D C Ekanayake - Director General Development Finance Department Mrs. D de Zoysa - Director General Ministry of Finance and Planning Sri Lanka Ministry of Finance and Planning Sri Lanka Annual Report 2007 Annual Report 2007 Heads of Treasury Departments (as at st March, 008) Contd. Public Finance Department W Ekanayake - Director General D Abeysooriya - Additional Director General Legal Affairs Department Mrs. H M N S Gunawardana - Director General Treasury Operations Department L R de Silva - Director General Mrs. D P R Senadhipathi - Additional Director General State Accounts Department D Widanagamachchi - Director General K Indran - Additional Director General Heads of Departments under the Purview of the Ministry of Finance and Planning (as at st March, 008) Inland Revenue Department S.Angammana - Commissioner General Customs Department S A C S W Jayatilake - Director General Excise Department D. G. M. V. Hapuarachchi - Commissioner General Imports and Exports Control Department N B Hapuhinne - Controller Valuation Department P W Senarathne - Chief Valuer Census and Statistics Department Mrs. D B P S Vidyaratne - Director General Ministry of Finance and Planning Sri Lanka Ministry of Finance and Planning Sri Lanka Annual Report 2007 Annual Report 2007 Organizational Chart - Ministry of Finance and Planning (as at st March 008) Ministry of Finance and Planning Sri Lanka Ministry of Finance and Planning Sri Lanka Annual Report 2007 Annual Report 2007 Heads of Statutory Boards / State Banks / Other Institutions under the purview of the Ministry of Finance and Planning (as at st March, 008) Central Bank of Sri Lanka Governor A N Cabraal Deputy Governor W A Wijewardena Deputy Governor Mrs. R Jayamaha Bank of Ceylon Chairman G Wickremasinghe General Manager B A C Fernando People’s Bank Chairman W Karunajeewa General Manager A De Silva National Savings Bank Chairman K D U Gunarane General Manager S H Piyasiri State Mortgage & Investment Bank Chairman C Weerakkody General Manager A Weerasinghe Lanka Puthra Development Bank Chairman A De Vass Gunawardana Chief Executive Officer Mrs. S Wickremasinghe 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 Mrs. J G W K R Jayawardane General Manager - Ruhuna Development Bank Chairman S C J Rathnayake 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 S Gunawardena General Manager J D C Jayasinghe National Lotteries Board Chairman U Liyanage General Manager M S Karunaratne Ministry of Finance and Planning Sri Lanka Ministry of Finance and Planning Sri Lanka Annual Report 2007 Annual Report 2007 Heads of Statutory Boards / State Banks / Other Institutions under the purview of the Ministry of Finance and Planning 8 (as at st March, 008) Contd. Employees’ Trust Fund Board Chairman/CEO K M A Godawatta National Insurance Trust Fund Chairman L R Watawala 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 G Wickramasinghe General Manager Mrs. L Serasinghe Credit Information Bureau of Sri Lanka Chairperson Mrs. 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 2007 Annual Report 2007 Contents Chapter 1 - Macro Economic Perspectives 21 Chapter 2 - Fiscal Developments 57 Chapter 3 - Public Enterprises 147 Chapter 4 - Reform Initiatives 175 Chapter 5 - Foreign Financing of the Budget 213 Chapter 6 - A Sectoral Perspective 245 Chapter 7 - Development Finance 267 Chapter 8 - Financial Statements - 2007 293 Tables Table 1.1 - Medium Term Macro Economic Framework (2006-2009) 33 Table 1.2 - External Trade 39 Table 1.3 - Manufacturing Sector Statistics 42 Table 1.4 - Selected Indicators of Service Sector Expansion 43 Table 1.5 - Sectoral Distribution of GDP Growth (%) 44 Table 1.6 - Gross Domestic Product - Sectoral Composition (2002) Constant Prices 45 Table 1.7 - Balance of Payments 47 Table 1.8 - Poverty Headcount Index 50 Table 1.9 - Movements in the Capital Market 55 Table 2.1 - Loss of Revenue Due to Granting of Duty Waivers on Essential Commodities and Motor Vehicles 59 Table 2.2 - Vehicle Imports for Public Servants under the Concessionary Duty Scheme 60 Table 2.3 - Summary of Government Fiscal Operations 62 Table 2.4 - Excise Duty Rate Revisions on Cigarettes 67 Table 2.5 - Liquor Production 67 Table 2.6 - Excise Tax Performance 67 Table 2.7 - Estimated Shortfalls in Excise Duty Revenue 68 Table 2.8 - Collection of Value Added Tax 68 Table 2.9 - Estimated shortfalls in VAT Revenue 69 Table 2.10 - Special Commodity Levy Structure of Selected Commodities 70 Table 2.11 - Imposition of Specific Duties 71 Table 2.12 - A Summary of Government Revenue 73 Table 2.13 - A Variance Analysis of Government Revenue 74 Table 2.14 - A Variance Analysis of Government Revenue 75 Table 2.15 - Current Expenditure 2005-2007 (1) 84 Table 2.16 - Domestic Petroleum Price Adjustments-2007/2008 89 Table 2.17 - Yield Rates 94 Ministry of Finance and Planning Sri Lanka Ministry of Finance and Planning Sri Lanka Annual Report 2007 Annual Report 2007 0 Contents Contd. Table 2.18 - Key Statistics of Bus Transport (SLCTB) 97 Table 2.19 - Key Statistics of Railway Transport (CGR) 98 Table 2.20 - A Variance Analyses of Government Expenditure(1) 99 Table 2.21 - Welfare Payments to Students 100 Table 2.22 - Welfare Payments and Subsidies 101 Table 2.23 - Gama Neguma Programme 102 Table 2.24 - Maga Neguma Achievements 2005-2007 104 Table 2.25 - Maga Neguma - 2007 104 Table 2.26 - Estate Sector Infrastructure Development 107 Table 2.27 - Minor Irrigation Works Programme - 2007 107 Table 2.28 - Government Expenditure - Economic Classification 108 Table 2.29 - Government Expenditure -Functional Classification (1). 111 Table 2.30 - Enrolment of Trainees for Skills Development Programmes 124 Table 2.31 - Rural Electrification Schemes 141 Table 2.32 - Consolidated Budget 142 Table 2.33 - Outstanding Government Debt 143 Table 2.34 - Debt Indicators 144 Table 2.35 - Debt Service Payments 145 Table 3.1 - Levy/Dividend Income from Public Enterprises 151 Table 3.2 - Financial Performance of the State Banks 152 Table 3.3 - Ratings of State Banks 154 Table 3.4 - Performance of BOC 154 Table 3.5 - Performance of People’s Bank 155 Table 3.6 - Performance of NSB 156 Table 3.7 - Performance of SMIB 156 Table 3.8 - Performance of HDFCB 157 Table 3.9 - Performance of RDBs 158 Table 3.10 - Capital Funds of RDBs 159 Table 3.11 - On-lending to Public Enterprises