The cash-strapped and debt-ridden government is pruning funds allocated to foreign missions overseas in the wake of dwindling foreign reserves and a scarcity of US dollars. As a cost cutting exercise, the Foreign Ministry has directed all heads of foreign missions to reduce additional expenses with a view to conserving the country’s much needed foreign [...]

Business Times

Dlr-hit SL prunes diplomatic missions’ spending

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The cash-strapped and debt-ridden government is pruning funds allocated to foreign missions overseas in the wake of dwindling foreign reserves and a scarcity of US dollars.

As a cost cutting exercise, the Foreign Ministry has directed all heads of foreign missions to reduce additional expenses with a view to conserving the country’s much needed foreign reserves and minimising expenditure related to maintenance of Sri Lanka’s missions/posts overseas.

These measures are necessary to save foreign exchange while ensuring the effective conduct of bilateral relations, in the backdrop of the economic challenges posed by COVID-19, Foreign Secretary Admiral (Prof.) Jayanath Colombage said.

Although the Foreign Ministry budgetary allocation in the 2022 budget has slightly increased to Rs. 12.85 billion for recurrent expenditure from Rs.12.36 billion in 2021, it is compelled to reduce spending in diplomatic missions overseas, he said.

In another communique issued on January 12, Mr. Colombage had informed Heads of Foreign Missions that a decision has been taken to temporarily suspend the reimbursement of the representational allowance given to top officials of diplomatic missions.

A sum of US$700 -$3600 was being paid for heads of missions as representational allowance while other ranking officers would get around $200 -$400, provisions estimates revealed.

These allowances are used for activities such as strengthening ties with the authorities of each country, promoting Sri Lanka’s tourism, trade, political, economic and security ties, and presenting official gifts at diplomatic meetings.

This allowance is granted to chiefs of mission, special envoys, permanent delegates or representatives to international bodies, principal officers, and other ranking diplomatic officers, and ranking Foreign Service officers stationed abroad.

The allowance was given to them to enable such officers to uphold the prestige of the island nation, to represent the country with dignity and distinction, and to carry out their functions more effectively, official sources said. The Foreign Ministry has pointed out that while all related expenses are audited, these expenses incurred by the missions are only reimbursed after bills are given to the ministry.

According to the ministry circular, the same set amount has been dispensed to all Sri Lankan missions since 2001.

“For example, the maximum representational allowance granted for the mission in Seoul, South Korea, one of the most expensive cities, is $700 per month but it isn’t sufficient to cover expenses for a week,” one source said.   Meanwhile, although Heads of Foreign Missions had been informed that they are allowed to exceed the limit of the allowance on ‘special occasions’, many had been turned down despite making requests to exceed the allowance when necessary.

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