📈 CoPF Pushes New Procurement Act Amid Slow Capital Spending

• Overall Utilization: Sri Lanka has utilized only ~Rs. 385 Bn out of its allocated Rs. 1,380 Bn capital expenditure this year, reflecting severe under-utilization of public investment funds needed for economic growth. • Key Operational Bottlenecks: Discussions in the Committee on Public Finance (CoPF) highlighted procurement delays, registration hurdles, legal framework deficiencies, and operational friction in digital systems—particularly affecting critical purchases for pharmaceuticals and essential goods. • Proposed Reforms: Proposals include raising financial limits for committees, establishing long-term framework agreements for repetitive purchases, creating sector-specific guidelines, and expanding the Procurement Management Information System (PROMIS) across all provincial councils and departments by 2027 (currently tracking 394 units across 19 Ministries). • National & Economic Impact: President Anura Kumara Dissanayake noted that over-regulated, anti-corruption rules have created restrictive bottlenecks. Economists warn that persistent shortfalls in deploying funds toward critical infrastructure (transport, power, digital systems) signal poor capital absorption to international partners and risk weakening long-term GDP growth.