Office of Auditor General and its place in fiscal governance framework

SRI Lanka is presently without a substantive Auditor General following the retirement of the previous office holder in April 2025, and this article examines the institutional implications of that circumstance purely from a professional, constitutional, and comparative public-governance perspective, and not otherwise, with reference to established international audit standards and practice.

- By Uditha H. Palihakkara

The office of the Auditor General occupies a central position in Sri Lanka's constitutional architecture. It is intended to provide independent assurance to the Parliament of Sri Lanka on the use of public resources across Government departments, state-owned enterprises (SOEs), provincial councils, local authorities, and statutory bodies. Through audit reports and opinions, the Auditor General supports parliamentary oversight and contributes to transparency, fiscal discipline, and confidence in public financial management.

From an institutional standpoint, the Auditor General's responsibilities extend well beyond transactional verification. Public-sector audit encompasses assessment of compliance with law, evaluation of internal control systems, and identification of financial and governance risks across the public sector. These functions are integral to any modern system of accountability, particularly in environments characterised by complex fiscal arrangements and multi-tiered governance structures.

Sri Lanka's broader experience with public finance management illustrates the relevance of strong audit institutions. Over time, audit reports have drawn attention to matters such as recurring SOE losses, weaknesses in expenditure controls, and governance gaps. Many jurisdictions incorporate these observations into their normal accountability process, aiming to guide corrective action, refine policy, and foster institutional learning. Their effectiveness depends on the strength, authority, and credibility of the institutions that generate them.