By Special Correspondent

For decades, Sri Lanka has benefited from substantial international development assistance aimed at addressing our national priorities. From education and agriculture to climate resilience initiatives, donor-funded projects have catalysed progress and innovation across the country. Yet as we navigate our economic recovery, a disturbing pattern undermines the effectiveness of this vital support—one that demands immediate national attention.

The Accountability Gap

Despite formal financing agreements between international donors and the Government of Sri Lanka, our internal oversight mechanisms remain woefully inadequate. Government ministries routinely treat donor-funded Project Management Units (PMUs) as independent entities rather than integrated extensions of their core functions. This systematic detachment creates a dangerous accountability vacuum.

When international funding agencies—bilateral, multilateral, and philanthropic—allocate resources to Sri Lanka, they do so based on trust. These funds represent not gifts but partnerships built on mutual accountability. The funds come from foreign taxpayers who expect their contributions to yield meaningful outcomes for Sri Lanka’s development.

Yet the evidence shows an alarming pattern: even with PMUs embedded within ministries and staffed by qualified professionals, government engagement remains superficial. Many ministries fully delegate responsibilities to PMUs and consultants without conducting data analysis, field verification, or performance reviews. This hands-off approach not only delays implementation but fundamentally undermines the sustainability of outcomes once projects conclude.

The Transparency Crisis

Recent assessments reveal that only approximately 40% of key information on foreign-funded projects is publicly accessible in Sri Lanka. More concerning still, procurement-related disclosures—where corruption risks are highest—hover at a mere 20%. These statistics represent more than technical shortcomings; they signal a critical transparency deficit that threatens future donor partnerships.

If Sri Lanka wishes to maintain the confidence of international partners in this competitive global funding landscape, transparency must become non-negotiable. Our public financial management systems require urgent modernization, including real-time tracking mechanisms, digital performance dashboards, and comprehensive stakeholder reporting.

The Policy Implementation Paradox

Perhaps most troubling is the recurring investment of donor funds into national policies and strategies that never transcend paper. Year after year, substantial resources support the development of sophisticated policy frameworks involving international consultants, local experts, and senior officials. Yet once these documents are finalized, implementation responsibility dissolves. No ministry claims ownership, budgets remain unallocated, and institutional responsibilities remain undefined.

This represents more than inefficiency—it constitutes a fundamental breach of trust. Several longstanding development partners have already withdrawn support from Sri Lanka due to these systemic weaknesses. Projects funded by organizations such as USAID have concluded with limited long-term impact, primarily due to the absence of national vision and political will to implement recommendations.

A Solution: Centralized Coordination and Oversight

The time has come for Sri Lanka to establish a National Donor Project Management and Oversight Unit under the direct authority of the Presidential Secretariat. This entity must be:

• Legally empowered to monitor all donor-funded activities across ministries
• Staffed with monitoring specialists, financial analysts, and data management experts
• Required to publish quarterly performance reports accessible to Parliament and the public
• Authorized to address implementation delays, inefficiencies, and budgetary issues regardless of sector

This unit would serve not to duplicate donor functions but to ensure coherence and accountability across all externally funded initiatives, providing the government with real-time insight into implementation challenges.

Proven Tools for Enhanced Governance

Sri Lanka can adopt globally proven mechanisms to strengthen implementation integrity. Integrity pacts—formal agreements among funders, government entities, and contractors to abstain from corrupt practices—have demonstrated effectiveness in countries facing similar challenges. Additionally, third-party monitoring through civil society organizations and academic institutions can provide independent verification of progress.

These approaches have yielded positive results throughout South Asia and beyond. What Sri Lanka requires is the leadership commitment to implement them systematically.

Ministry Responsibility: Beyond Ceremonial Participation

Government ministries must transition from passive observers to active stewards of donor investments. This means integrating donor-funded initiatives into national planning cycles, aligning them with sectoral strategies, and applying the same rigorous oversight used for government-funded programs.

Donor projects should function as seamless extensions of our national development agenda—implemented through ministries with clear lines of accountability to citizens, Parliament, and the wider public service.

Capacity Building as Strategic Investment

Officials often cite capacity constraints as justification for implementation shortfalls. However, capacity development cannot occur in isolation. Ministries must prioritize training in results-based management, financial reporting, and evaluation methodologies. These skills are essential not only for current project delivery but for building sustainable systems that endure beyond individual funding cycles.

Conclusion: From Symbolism to Stewardship

Sri Lanka stands at a pivotal moment. With fewer international donors active in our country and intensifying global competition for development finance, we can no longer afford to treat external assistance as supplementary funding. Every rupee must generate measurable value for our citizens—a goal achievable only through meticulous planning, oversight, and execution.

The government has a historic opportunity to redefine its relationship with the international development community. This requires taking genuine ownership of every project from conception to completion, ensuring policies translate into action, and rebuilding donor confidence at this critical juncture in our national development.

This is not merely a call for better documentation or retrospective evaluations. It is an urgent appeal for transformative leadership, coordination, and governance reform. The future of Sri Lanka’s development partnerships—and the benefits they bring to our people—depends on our actions today.

---

The views expressed in this article are based on extensive experience in the development sector and do not represent any organization.