The Government of the Democratic
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THE GOVERNMENT OF THE DEMOCRATIC SOCIALIST REPUBLIC OF SRI LANKA FINANCIAL STATEMENTS OF THE GOVERNMENT FOR THE YEAR ENDED 31ST DECEMBER 2019 DEPARTMENT OF STATE ACCOUNTS GENERAL TREASURY COLOMBO-01 TABLE OF CONTENTS Page No. 1. Note to Readers 1 2. Statement of Responsibility 2 3. Statement of Financial Performance for the Year ended 31st December 2019 3 4. Statement of Financial Position as at 31st December 2019 4 5. Statement of Cash Flow for the Year ended 31st December 2019 5 6. Statement of Changes in Net Assets / Equity for the Year ended 31st December 2019 6 7. Current Year Actual vs Budget 7 8. Significant Accounting Policies 8-12 9. Time of Recording and Measurement for Presenting the Financial Statements of Republic 13-14 Notes 10. Note 1-10 - Notes to the Financial Statements 15-19 11. Note 11 - Foreign Borrowings 20-26 12. Note 12 - Foreign Grants 27-28 13. Note 13 - Domestic Non-Bank Borrowings 29 14. Note 14 - Domestic Debt Repayment 29 15. Note 15 - Recoveries from On-Lending 29 16. Note 16 - Statement of Non-Financial Assets 30-37 17. Note 17 - Advances to Public Officers 38 18. Note 18 - Advances to Government Departments 38 19. Note 19 - Membership Fees Paid 38 20. Note 20 - On-Lending 39-40 21. Note 21 (Note 21.1-21.5) - Capital Contribution/Shareholding in the Commercial Public Corporations/State Owned Companies/Plantation Companies/ Development Bank (8568/8548) 41-46 22. Note 22 - Rent and Work Advance Account 47-51 23. Note 23 - Consolidated Fund 52 24. Note 24 - Foreign Loan Revolving Funds 52 25. Note 25 - Miscellaneous Funds 52 26. Note 26 - Net Assets Adjustments Account 52-53 27. Note 27 - Bank Balance 53 28. Note 28 - Advance from Central Bank of Sri Lanka 53 29. Note 29 - Government Borrowings 53-54 30. Note 29(I) - Foreign Currency Banking Unit Loan (Project) Balances (9196) 55 31. Note 29(II) - Statement of Foreign Loan Balances (8343) 56-92 32. Note 29 (III) - Foreign Currency Term Financing Facility (9190) 93 33. Note 29(IV) - International Sovereign Bond (9194) 94 34. Note 30 - Deposits 54 35. Note 30 - Deposit Accounts Balances as at 31st December 2019 (6000 & 6003) 95 36. Note 31 - Operating Accounts With Government Departments 54 37. Note 32 - Sundry Accounts 54 38. Note 33(A) - Statement of Bank Guarantees Issued by the General Treasury as at 31.12.2019 96-106 39. Note 33(B) - Statement of Letters of Comfort Issued to Local Banks and the Liabilities as at 31.12.2019 107 40. Explanatory Notes 108-109 Schedules 41. Schedule I - Statement of Capital Investment in Development Projects - 2019 110-128 42. Schedule II - Head Wise Summary of Budgetary Provision and Expenditure - 2019 129-135 43. Schedule III - Statement of Liabilities and Commitments 136-143 44. Schedule IV - Statement of Provincial Councils Revenue and Expenditure Report - 2019 144 45. Face Value of the Treasury Bond (9093) as at 31st December 2019 145 Note to Readers Financial Statements of the Government for the year ended 31st December 2019 comprising the Statement of Financial Performance, Statement of Financial Position, Statement of Cash Flow, Statement of Changes in Net Assets / Equity, applied Accounting Policies and Notes thereto are forwarded herewith. The Statement of Financial Position shows the assets and liabilities of the Government whereas Statement of Financial Performance shows government’s affairs in relation to revenue collection and use of resources as provided by Appropriation Act No. 06 of 05th April 2019 for 2019, of twenty two (22) Special Spending Units, thirty seven (37) Government Ministries, ninety six (96) Government Departments and twenty five (25) District Secretariats and the way that fiscal deficit could be financed. Further, in the Financial Statements, it is reflected the financial support provided to Forty Nine (49) Commercial Public Corporations, ninety (90) Government Owned Companies / Plantation Companies / US Dollar Denominated Companies, three (03) Development Banks in the form of capital contribution or shareholding and also information relating to allocation of financial resources to nine (09) Provincial Councils by the Central Government. As per the provisions provided under the Fiscal Management (Responsibility) Act No. 03 of 2003, Financial Statements should be prepared to reflect financial results and Financial Position of the Democratic Socialist Republic of Sri Lanka. Since these financial statements should be prepared in accordance with the Article 149 and 150 of the Constitution of Democratic Socialist Republic of Sri Lanka in addition, generally accepted accounting principles could not be followed in all the time. However, in such deviations, reasons for deviation and the relevant alternate accounting policies are disclosed in the financial statements. Modified cash basis accounting method is used to prepare the Financial Statements and actions are taken to include the assets and liabilities generated through the cash basis transactions in the financial statements whenever possible. Accordingly, a part of the non-financial assets have been reported in the financial statements and it is expected to record all the non-financial assets by year 2020. The Computerized Integrated Government Accounting System (CIGAS) has been further developed enabling non-financial assets are recorded in the Financial Statements, starting from the year 2015. Similarly, according to the Handbook on Government Finance Statistics (GFS) 2014, actions have been initiated to compile the financial data in the GFS data format with a view to improve comparison of government statistics with those of other countries. 1 Department of State Accounts Statement of Financial Performance for the year ended 31st December 2019 Actual Actual Note 2019 2018 Rs. Rs. REVENUE Tax Revenue 1,734,925,039,071 1,712,317,537,935 Income Tax 1 427,699,517,596 310,449,314,854 Taxes on Domestic Goods & Services 2 973,843,968,827 1,060,158,121,748 Taxes on International Trade 3 333,381,552,648 341,710,101,333 Non Tax Revenue & Others 4 172,271,329,558 222,777,949,292 TOTAL REVENUE (a) 1,907,196,368,629 1,935,095,487,228 Less : EXPENDITURE Salaries, Wages and Other Employment Benefits 5 528,791,109,005 484,758,793,181 Other Goods & Services 6 199,834,301,479 172,293,827,456 Subsidies, Grants and Transfers 7 703,508,610,370 599,461,407,587 Interest Payments 8 888,786,940,392 852,190,046,487 Other Recurrent Expenditure 9 701,758,477 260,316,311 Total Recurrent Expenditure (b) 2,321,622,719,723 2,108,964,391,022 REVENUE DEFICIT (a) - (b) 414,426,351,094 173,868,903,795 Public Investments 10 637,218,885,361 625,310,389,518 BUDGET DEFICIT 1,051,645,236,455 799,179,293,313 FINANCING THE BUDGET DEFICIT Foreign Borrowings 11 935,100,943,059 771,607,799,449 Foreign Debt Repayments (572,337,719,713) (307,015,430,305) NET FOREIGN BORROWINGS 362,763,223,346 464,592,369,144 Foreign Grants 12 7,909,404,110 12,485,519,835 TOTAL FOREIGN FINANCING 370,672,627,456 477,077,888,979 Domestic Borrowings 13 1,067,681,955,163 1,099,262,448,221 Domestic Debt Repayments 14 (544,648,165,984) (929,345,627,582) NET DOMESTIC BORROWINGS 523,033,789,178 169,916,820,639 Recoveries from On-lending 15 18,271,349,279 25,583,642,348 Sale of Capital Assets 2,874,087,532 340,784,642 Divestiture Proceeds 3,111,000,000 107,882,895,275 Net Change in Deposit Accounts and Liabilities 88,024,821,773 20,056,901,975 (Increase)/ Decrease in Cash & Cash Equivalents 45,657,561,237 (1,679,640,545) TOTAL FINANCING 1,051,645,236,455 799,179,293,313 3 Department of State Accounts Statement of Financial Position as at 31st December 2019 Actual Actual Note 2019 2018 Rs Rs Non Financial Assets 16 1,355,270,211,298 1,087,397,624,041 Financial Assets Advances to Public Officers 17 32,142,241,034 30,970,716,088 Advances to Government Departments 18 15,802,235,220 15,303,986,669 Membership Fees 19 2,900,368,322 3,517,179,875 On Lending 20 177,149,514,240 184,160,788,945 Capital Contributions to State Owned Enterprises 21 611,960,626,814 587,320,632,819 Rent & Work Advance 22 2,571,153,887 1,589,016,461 Stamps Stock Account 1,453,500,787 1,357,244,688 Total Financial Assets 843,979,640,304 824,219,565,545 Total Assets 2,199,249,851,602 1,911,617,189,586 Statutory & Other Funds Consolidated Fund 23 (437,631,022,813) (303,948,639,803) Contingency Fund 500,000,000 450,000,000 Foreign Loan Revolving Funds 24 61,044,365,828 33,678,534,101 Miscellaneous Funds 25 1,041,441,212 859,563,802 Net Assets Adjustment Account 26 (10,040,906,102,536) (9,415,813,121,099) Total Funds (10,415,951,318,309) (9,684,773,662,999) Liabilities Bank Overdrafts 27 194,517,381,317 148,859,820,080 Advance from the Central Bank 28 236,608,971,400 198,632,571,400 Government Borrowings 29 12,187,857,608,773 11,276,281,183,366 Deposits 30 81,571,763,673 76,867,205,607 Accounts Operating with Government Departments 31 (85,375,105,978) (104,886,490,795) Sundry Accounts 32 20,550,722 636,562,927 Total Liabilities 12,615,201,169,908 11,596,390,852,585 Total Funds and Liabilities 2,199,249,851,602 1,911,617,189,586 Contingent Liabilities & Commitments 33 858,013,017,019 828,944,872,772 4 Department of State Accounts Statement of Cash Flows for the year ended 31st December 2019 Budget Estimate Actual Actual 2019 2019 2018 Rs.