ECONOMYNEXT – Sri Lanka’s Samurdhi community-based banks and Samurdhi community-based banking societies will be brought under government audit, cabinet spokesman minister Bandula Gunawardena said.
“There are 1,092 Samurdhi community-based banks and 335 Samurdhi community-based banking societies functioning across the country to promote microfinance activities,” Gunawardena told reporters Tuesday announcing Cabinet decisions.
These banks and societies are audited annually by the Internal Audit Division of the Samurdhi Development Department as per the provisions of the Samurdhi Act, Gunawardena said.
They are not formally recognised as banks as they do not fall under the purview of the Central Bank.
“The Samurdhi Act does not include the provision that they should be audited by the National Audit Office. Auditing these banks and societies by the National Audit Office will help maintain transparency in their operations and increase public confidence and acceptance.”
Gunawardena said the Cabinet approved the proposal to amend the Samurdhi Act No.1 of 2013 as amended by Divineguma (Amendment) Act No. 2 of 2017 and to advise the legal draftsman to prepare the respective bill for this purpose.
Samurdhi, Sri Lanka’s largest welfare programme until the Aswesuma scheme, had some 1.7 million beneficiaries, but critics say that, while it is necessary, a not insignificant number of the beneficiaries are people who don’t meet the criteria and are added to the list through political influence.
Sri Lanka started Aswesuma, its new consolidated welfare payments scheme, after a large number of people were tipped into poverty when the rupee collapsed from the most aggressive macro-economic policy (rate cuts and tax cuts) employed by the country’s economic bureaucrats since a money printing central bank was set up.(Colombo/May28/2024)