SL budget’s Rs. 135 bn defence allocation raises transparency concerns:
- CNL Reporter
- February 19, 2025
- Political
- SL budget’s Rs. 135 bn defence allocation raises transparency concerns:
- 0 Comments
A top economist yesterday raised concerns over a potential procurement corruption process or gross misrepresentation in the government’s 2025 budget, particularly regarding public sector salaries and defence expenditure.
Verité Research Executive Director Dr. Nishan de Mel highlighted a staggering Rs. 135 billion allocation under a defence sector budgetary line item, which he termed a possible “systematic concealment of public sector costs” from the general public.
Dr. de Mel referred to the increased budgetary allocation under the defence expenditure procurement category Diets and Uniforms, which rose from Rs. 70.7 billion in 2023 to Rs. 101 billion in 2024 and Rs. 135 billion in 2025, reflecting a 33 percent annual increase this year.
Although this issue was raised last year, he recalled that authorities had justified the allocation as a form of direct cash allowance to defence sector employees.
However, de Mel argued that such allowances should be classified under salaries and emoluments to ensure transparency in employee compensation rather than being disguised under procurement-related expenses.
“So this is either a case of procurement corruption or a gross misrepresentation of the cost in the budget,” de Mel cautioned while addressing the post-budget forum organized by CA Sri Lanka yesterday.
