By Asoka S. Seneviratne –

Prof. Asoka.S. Seneviratne

“Management is doing things right; leadership is doing the right things.” — Peter Drucker

The Sri Lankan public is navigating a period of profound fiscal contraction. Under the stringent IMF Extended Fund Facility (EFF), the government has been compelled to pursue aggressive revenue mobilization. Tax brackets have widened, and the annual turnover threshold for VAT has been slashed from Rs. 60 million to Rs. 36 million. For the average person, these are not just numbers; they are daily battles with the cost of living.

However, there is a “social contract” at play. The government acts as the custodian of these hard-earned public funds, redistributing them as the nation’s primary investor. In 2026, the government has set a massive revenue target of Rs. 5,300 billion. This collection is a monumental task for the Ministry of Finance, often burdening a population already weary from years of crisis. Yet, this capital is the lifeblood of the economy. When the state allocates trillions for capital projects, it is betting on a future where 100% of that investment translates into a 7% growth rate. For 2026, this task is compounded by the shadow of Cyclone Ditwah, which decimated infrastructure and displaced 2.3 million people. The government has secured the funds; now, the spotlight shifts to the engine room of the state—the Ministry Secretaries.

The Treasury’s Zero-Excuse Mandate

In a departure from traditional “silo” governance, the Ministry of Finance has streamlined the disbursement of capital. The common bureaucratic refrain of “funds weren’t released on time” has been systematically dismantled. By securing a framework that ensures liquidity—targeting a primary surplus of 2.3% to 2.5% of GDP—the Treasury has removed the safety net of excuses.

The Ministry of Finance meets the capital requirements of the ministries without the “mounting constraints” typically used to justify delays. If the Treasury can mobilize Rs. 1,400 billion for capital expenditure amidst an international debt restructuring process, the line ministries have no moral or professional ground to stand on when projects stall. The President’s message on January 5th was unmistakable: The money is there. The mandate is clear. The only thing missing is execution.

Breaking the ‘December Rush’ Culture

Historically, the Sri Lankan bureaucracy has suffered from a “non-utilization” syndrome. For decades, billions in capital expenditure were returned to the Treasury at the end of the financial year, or spent in a frantic, uncoordinated “December Rush” on low-quality projects. This is more than inefficiency; it is a denial of public rights.

President Anura Kumara Dissanayake’s (AKD) meeting was a calculated strike against this culture. He noted that previous administrations were often influenced by the notion of “unspent funds”—a self-fulfilling prophecy where planning was done with the expectation of failure. For 2026, the President has mandated that the groundwork be laid now, in January, so that the 4% of national production reserved for capital expenditure is utilized steadily throughout the four quarters.

The Ditwah Factor: A Double Burden of Responsibility

The devastation of Cyclone Ditwah has changed the stakes of 2026. With rebuilding costs estimated at up to $7 billion, the “business as usual” approach is now an act of negligence. The government has presented a request for an additional Rs. 500 billion supplementary budget specifically for this recovery.

In the North-Central and Central provinces, where the damage to irrigation and tea estates was most severe, the “Physical Progress” metric is the difference between food security and a secondary economic collapse. The President reminded Secretaries that the expectations of the people have more than doubled. Every day an irrigation tank like Senanayake Samudraya or Minneriya (allocated a portion of the Rs. 91.7 billion irrigation budget) remains damaged, the state is failing its farmers.

In short, the following information is vitally important.

Lessons from the Ruins: Contrasting Past Failures with the New  Key Performance Indicator (KPI) Model

To understand the President’s urgency, one must look at the graveyard of failed capital projects. In the past, “financial utilization” was the only metric. A project could be “90% spent” while the building was only a concrete shell.

* The New KPI Model: AKD has replaced “spending” with Physical Milestone Tracking.

a) The Rule: No ministry shall report success based on a bank transfer. The Physical Completion Certificate defines success.

b) Specific Targets: The Rs. 10.5 billion for the Central Expressway (Potuhera–Galagedara) and the Rs. 15 billion for Urban Regeneration Housing are not “allocations”—they are “deliverables.”

c) Audit Integration: Discrepancies between cash flow and ground-level progress will now trigger immediate audits.

Beyond the Call of Duty: Why the Minister Met the Secretaries

It is not traditionally expected for the Minister of Finance to call Secretaries to remind them of their basic responsibilities. However, AKD’s intervention was a necessary “system reset.” By addressing them directly, he signaled that the “excuse-based” relationship between the Treasury and line ministries is dead.

The President addressed the secretaries because he wanted to break the past practice of “file-shuffling.” Following the Ditwah disaster, the margin for error has vanished. This wasn’t a meeting of routine; it was a meeting of necessity to ensure the state machinery finally aligns with the urgent needs of a recovering nation.

The ‘Five Clears’: A Scorecard for Public Servants

To ensure there is no room for ambiguity, the 2026 roadmap is built on five pillars of accountability that every Secretary must now implement:

* Clear Persons: No more “committee-based” anonymity. One officer, one project.

* Clear Timelines: If the Digital ID is to be issued by March 2026, the hardware procurement must be finished by February.

* Clear Tasks: Granular breakdowns replace vague project titles.

* Apparent Authority: Secretaries are empowered to bypass red tape, but they own the results.

* Clear Output: Moving from “houses under construction” to “keys in hands.”

In view of the above, any derailment is not expected at all.

Indeed,  to ensure the successful realization of national objectives, it is imperative to establish a Digital Operations Room within the Office of the President. This centralized platform will provide the President with real-time oversight of all government programs at the touch of a button. By streamlining monitoring and evaluation, this system conserves the President’s time and energy, replacing redundant briefings with actionable, data-driven insights.

Depriving the Opposition of Political Ammunition

A government is only as strong as its implementation. When Secretaries fail to deliver on the Rs. 4.2 billion Suwasariya expansion or the Rs. 11 billion university medical faculty upgrades, they provide the Opposition with a ready-made narrative of “failed promises.” This may open the floodgates for the Opposition.

The President’s directive was a stern reminder: the bureaucracy must not become the “Achilles’ heel” of the government. Inefficiency in the ministry translates to political instability. Secretaries are the guardians of the government’s credibility. They must ensure that when the year ends, the only thing the Opposition can criticize is the ambition of the targets, not the failure to meet them.

The Ultimatum: Results or Reassignment

The takeaway from the January 5th meeting was an uncompromising ultimatum. The President has fulfilled the “massive task” of revenue collection and capital allocation under the IMF’s watchful eye. He has provided the tools and the funds. Now, the results must follow.

The message to the Secretaries was clear: The people have paid their taxes, the government has provided the budget, and the country has survived a disaster. There are no more “pretty excuses” to offer. The President wants to see the results so that the people’s expectations—from the farmer in Polonnaruwa to the tech worker in Colombo—will be fulfilled. Deliver the outcomes, or step aside.

*The writer, among many, served as the Special Adviser to the Office of the President of Namibia from 2006 to 2012 and was a Senior Consultant with the UNDP for 20 years, and a Senior Economist with the Central Bank of Sri Lanka (1972-1993). He can be reached at asoka.seneviratne@gmail.com