Professor Wasantha Athukorala of the Department of Economics at the University of Peradeniya has raised serious concerns regarding the conduct of financial authorities, stating that it is highly suspicious that the Secretary to the Ministry of Finance did not immediately inform the President or Parliament after information about the misappropriation of funds in the Treasury came to light.
The professor further highlighted several critical weaknesses within the country’s financial system.
Deficiencies in the Debt Data System
He pointed out that although the International Monetary Fund (IMF) intervened in 2021 to establish a formal data system for tracking loans, a significant issue remains. The government still lacks comprehensive and reliable data on loans obtained prior to 2021, including details on how those loans were repaid. This gap, he noted, poses a serious challenge to the integrity of the financial system.
Concerns Over Past Financial Transactions
Professor Athukorala also stressed the urgent need to investigate whether similar financial irregularities or misappropriation of funds occurred in the settlement of foreign loan installments before 2021, in addition to the currently reported incident.
He emphasized that responsible officials must act promptly in such situations to safeguard financial discipline and ensure transparency. The failure to disclose critical information in a timely manner, he implied, has contributed to a decline in public confidence in the country’s financial governance.
