An annual audit report for the year 2022 has disclosed that various local government bodies in Sri Lanka have accumulated close to Rs. 21 billion through investments in fixed deposits and other financial instruments. The funds were reportedly earmarked for the provision of public utility services, infrastructure development, and public welfare activities.
Specifically, the audit report delineates that Mahanagarasabha invested Rs. 7,942 million, Nagarasabha allocated Rs. 3,159 million, and local councils committed Rs. 9,850 million to fixed and other deposits with the objective of generating income.
Additionally, the audit findings highlight discrepancies in budget preparation and supplementary estimates among several local government bodies. Some entities allegedly deviated from correct budgetary procedures, leading to the accumulation of funds, subsequently invested for income generation.
This revelation underscores the financial management practices of local authorities, prompting scrutiny and potential discussions on optimizing fund allocation and adherence to budgetary protocols.
