PARLIAMENT OF THE DEMOCRATIC

SOCIALIST REPUBLIC OF
SRI LANKA
————————

NATIONAL AUDIT
A

BILL
to provide for the powers, duties and functions of the Audit Service
Commission; the establishment of the office of the National Audit
Office and the Sri Lanka State Audit Service; to specify the role of the
Auditor General over public finance and to make provision for matters
connected therewith or incidental thereto.
————————
Presented by the Prime Minister and Minister of National Policies and
Economic Affairs on 03rd of April, 2018.

(Published in the Gazette on March 16, 2018)

Ordered by Parliament to be printed.

————————
[Bill No. 236]
PRINTED AT THE DEPARTMENT OF GOVERNMENT PRINTING, SRI LANKA
TO BE PURCHASED AT THE GOVERNMENT PUBLICATIONS BUREAU, COLOMBO 5

Price : Rs. 68.00 Postage : Rs. 20.00

2-

This Bill can be downloaded from www.documents.gov.lk

2-2d
 National Audit 1

L.D.—O. 3/2015

AN ACT TO PROVIDE FOR THE POWERS, DUTIES AND FUNCTIONS OF THE

AUDIT SERVICE COMMISSION; THE ESTABLISHMENT OF THE OFFICE OF
THE NATIONAL AUDIT OFFICE AND THE SRI LANKA STATE AUDIT
SERVICE; TO SPECIFY THE ROLE OF THE AUDITOR GENERAL OVER
PUBLIC FINANCE AND TO MAKE PROVISION FOR MATTERS CONNECTED
THEREWITH OR INCIDENTAL THERETO.

BE it enacted by the Parliament of the Democratic Socialist

Republic of Sri Lanka as follows:–

1. (1) This Act may be cited as the National Audit Act, Short title
No. of 2018. and date of
operation.

5 (2) The provisions of this Act shall come into operation

on such date as the President may appoint by Order published
in the Gazette (hereinafter referred to as the “appointed date”).

2. The provisions enshrined in Articles 153, 153A, 153B, Applicable

153 C , 153 D , 153 E , 153 F , 153 G , 153 H and 154 of the law
pertaining to
10 Constitution, the provisions of this Act and any other written audits.
law, as may be applicable, shall apply to audits of auditee
entities and matters connected therewith.

PART I

SCOPE OF AUDITS CARRIED OUT BY THE AUDITOR GENERAL

15 3. (1) The Auditor General shall— Scope of

audit in
relation to
(a) audit all expenditure from the Consolidated auditee
Fund; entities.

(b) ascertain whether the moneys shown in the

accounts of auditee entities as having been
 2 National Audit

disbursed were legally available for and

applicable to, the services or purposes to
which they have been applied for or charged
with;

5 (c) determine whether the expenditure conforms

to the authority which governs it; and

(d) in each audit, report on the expenditure,

transactions and accounts of such audit.

(2) The scope of an audit carried out by the Auditor

10 General includes examining the accounts, finances, financial
position and prudent management of public finance and
properties of auditee entities.

(3) The Auditor General shall be responsible to Parliament

in carrying out the provisions of this Act.

15 4. Subject to the provisions of section 3, the Auditor Public to

General may examine any matter relating to an auditee entity notify
Auditor
brought to his notice by any member of the public in writing General.
along with substantial proof of the matters asserted, and
report thereon to Parliament.

20 5. (1) The Sri Lanka Auditing Standards determined Applicable

by the Auditing Standards Committee established under the auditing
standards.
Sri Lanka Accounting and Auditing Standards Act, No.15
of 1995 shall be applicable to audits undertaken by the
National Audit Office established under section 29.

25 (2) Where there are no auditing standards specified in the

Sri Lanka Auditing Standards for performance audits,
environmental audits, technical audits and any other special
audits, the Audit Service Commission may, by Order
published in the Gazette, specify the provisions of the
30 International Standards of the Supreme Audit Institutions
determined by the International Organization of Supreme
Audit Institutions which shall apply to such audits, with
necessary amendments to suit the local requirements.
 National Audit 3

PART II

POWERS, DUTIES AND FUNCTIONS OF THE AUDITOR GENERAL

6. (1) The Auditor General or any person authorized by Duties and

him in carrying out an audit shall— functions of
the Auditor
General.
5 (a) inspect accounts of any auditee entity including
treasuries and initial or subsidiary accounts of such
auditee entities;

(b) require that any accounts, books, papers and other

documents which deal with or form the basis of or
10 is otherwise relevant to the transactions to which
his duties extend, shall be sent to such place as he
may appoint for his inspection;

(c) question or make such observations as he may

consider necessary, from the Chief Accounting
15 Officer of the auditee entity and call for such
information as he may require for the preparation
of any account or report;

(d) ensure that the set of financial statements presented

for audit by the auditee entity–

20 (i) is in accordance with the applicable financial

reporting standards;

(ii) have been designed to present a true and fair

view of the affairs of the auditee entity for the
year under review;

25 (iii) is consistent with the preceding year; and

(iv) includes any recommendations made by the

Auditor General in the previous year.
 4 National Audit

(2) The Auditor General shall assist the Committee on

Public Accounts and the Committee on Public Enterprises
to carry out their functions more efficiently and effectively.
The Auditor General shall assist all other Committees of
5 Parliament when such assistance is required.

(3) Notwithstanding the provisions of subsection (1) of

section 3, the Minister in charge of any public corporation,
business or other undertaking vested in the Government
under any written law and companies registered or deemed
10 to be registered under the Companies Act, No. 7 of 2007 in
which the Government or a public corporation or a local
authority holds fifty per centum or more of the shares of that
company may, with the concurrence of the Minister assigned
the subject of Finance and in consultation with the Auditor
15 General, appoint a qualified auditor or auditors to audit the
accounts of such auditee entity. Where such appointment
has been made by the Minister, the Auditor General may, in
writing, inform such auditor or auditors that he proposes to
utilise his or their services for the performance and discharge
20 of the Auditor General’s duties and functions in relation to
such auditee entity and thereupon such auditor or auditors
shall act under the direction and control of the Auditor
General.

7. (1) In addition to the powers and functions conferred Powers of the

25 on the Auditor General under Article 154 (5) of the Auditor
General in
Constitution, the Auditor General or any person authorized carrying out
by him may exercise the following powers in respect of an an audit.
audit of an auditee entity—

(a) access or call for any written or electronic records

30 or other information relating to the activities of an
auditee entity;

(b) call any person whom the Auditor General has

reasonable grounds to believe to be in possession
 National Audit 5

of information and documents, as he may consider

necessary to carry on the functions under this Act,
to obtain written or oral statements and require the
production of any document, from any person, who
5 may be either in - service or otherwise;

(c) examine and make copies of or take extracts from

any written or electronic records and search for
information whether or not in the custody of the
auditee entity;

10 (d) after obtaining permission from the relevant

Magistrate’s Court, examine and audit any account,
transaction or activity of a financial institution, of
any person, where the Auditor General has reason
to believe that money belonging to an auditee entity
15 has been fraudulently, irregularly or wrongfully
paid into such person’s account;

(e) require any officer of any financial institution to

produce any document or provide any information
relating to an account, transaction, dealing or
20 activity of any person referred to in paragraph (d)
and to take copies of any document so produced, if
necessary;

(f) obtain the views from the governing body of each

auditee entity, on the results of the audit carried
25 out by such officer;

(g) pay rewards and incentives out of the Audit Fund;

and

(h) do all other matters connected or incidental thereto

to achieve the purposes of this Act.
 6 National Audit

(2) Any information relating to national security of Sri

Lanka the disclosure of which is prejudicial shall be audited
personally by the Auditor General with the concurrence of
the Minister assigned the subject of Defence.

5 (3) Every person shall comply with the provisions of this

section, and such compliance shall not be considered as a
violation of any written law pertaining to secrecy,
confidentiality or non-disclosure.

(4) Where any person is called, by the Auditor General or

10 any person authorized by him, for the purposes of paragraph
(b) of subsection (1) and such person is unable to appear in
person due to unavoidable circumstances, he may nominate
a person conversant on the subject to appear before the
Auditor General or any other person authorized by him, on
15 that behalf.

(5) In the performance and discharge of the duties and

functions, the Auditor General or any officer authorized by
him shall not be subject to interference or influence by any
person or authority.

20 8. The Auditor General shall himself exercise, perform Powers,

and discharge the following powers, duties and functions— duties and
functions to
be solely
(a) the appointment of a qualified auditor or an carried out
by the
institution having technical, professional or
Auditor
scientific expertise under Article 154 (4) of the General.
25 Constitution;

(b) reporting to Parliament on the performance and

discharge of his duties and functions under Article
154 (6) of the Constitution;

(c) administering the Audit Fund.

 National Audit 7

9. (1) The members of the Audit Service Commission, Non-

any person appointed to any office under this Act or any disclosure of
information.
other person assisting any such person for the purpose of
carrying out the provisions under this Act or a qualified
5 auditor engaged by the Auditor General for such purpose,
except in the performance of his duties under this Act, shall
not disclose any information received by him in the
performance of his duties under this Act, and shall—

(a) not be compelled by any person to disclose any

10 information except on a request of Parliament or by
an Order of court or subject to paragraph (b) to give
effect to the provisions of any written law;

(b) not disclose any information under any law

requiring the disclosure of information without prior
15 consent given in writing of the relevant person or
institution providing such information and until
the report or statement prepared by the Auditor
General relating to such information has been
presented in Parliament, as may be required; and

20 (c) not enter upon the duties of his office until he makes
and subscribes an oath of secrecy as set out in the
Schedule hereto. The members of the Audit Service
Commission shall subscribe an oath of secrecy
before the Speaker of Parliament, while all other
25 persons specified herein shall subscribe the said
oath before the Auditor General.

(2) Subject to the provisions of subsection (1) of this

section, any such member or person or qualified auditor
who communicates any such matter to any person or suffers
30 or permits any unauthorized person to have access to any
books, papers or other records relating to any such matter,
commits an offence.
 8 National Audit

PART III

SUBMISSION OF REPORTS AND STATEMENTS BY THE

AUDITOR GENERAL

10. (1) The Auditor General shall within three months Auditor
5 after the closure of each financial year submit a report to General to
submit a
Parliament on the results of the audits carried out by him Report to
during the year, and shall also include in such report any Parliament
observation that has been expressed by any auditee entity annually.
in regard to his findings.

10 (2) The submission of the report to Parliament in respect

of a particular year shall be completed by the Auditor General
within the time limits specified under written law.

(3) The report under subsection (1) may be made available

by the Auditor General through the official website of the
15 National Audit Office, after such report has been tabled in
Parliament.

11. (1) The Auditor General shall issue a Summary Summary

Report within five months after the closure of each financial Report and
Annual
year to an auditee entity in respect of any financial statement Detailed
20 or any account submitted by such entity, other than an entity Management
referred to in subsection (2). Audit Report.

(2) The Auditor General shall present an Annual Detailed

Management Audit Report to the governing body of each
auditee entity within the five months after the end of each
25 financial year with a copy each to the Minister to whom the
respective auditee entity is assigned and the Minister
assigned the subject of Finance.

12. The Auditor General shall, within three months of Content of

the Auditor
the receipt of the approved annual financial statements and General’s
30 other relevant documents and information of a public Report
corporation or a company in which the Government or a pertaining to
corporations
public corporation holds fifty per centum or more of the and
shares, present a report to the Chairman of the governing companies.
 National Audit 9

body of such public corporation or company for publication

in its annual report, and such report shall state—

(a) whether the relevant information and explanations

have been obtained reasonably, which in the
5 opinion of the Auditor General were necessary for
the purpose of the audit;

(b) whether the financial statements have been prepared

in accordance with the Sri Lanka Accounting
Standards as may be determined by the Auditing
10 Standards Committee, or Sri Lanka Public Sector
Accounting Standards, as the case may be, so as to
give a true and fair view of the financial position of
the entity and the financial performance and the
cash flows thereof;

15 (c) whether the consolidated financial statements have

been prepared in accordance with the Sri Lanka
Accounting Standards as may be determined by
the Auditing Standards Committee or Sri Lanka
Public Sector Accounting Standards, as the case
20 may be, so as to give a true and fair view of the
financial position of the entity and its financial
performance and the cash flows of such entity and
of its subsidiaries and associates as may be
applicable;

25 (d) whether any member of the governing body of such

entity has any direct or indirect interest in any
contract entered into by such entity, and if so, the
nature of such member’s interest and the Auditor
General’s own views and comments thereon;

30 (e) the reasons for expressing a qualified, disclaimer,

adverse or similar audit opinion on the annual
financial statements examined by the Auditor
General;
 10 National Audit

(f) whether the auditee entity has or has not complied

with any applicable written law or other general or
special directions issued by the governing body of
the auditee entity;

5 (g) whether the auditee entity has performed according

to its powers, functions and duties;

(h) whether the resources of the auditee entity had been

procured and utilized economically, efficiently and
effectively within the time frames and in compliance
10 with the applicable laws; and

(i) any other matter the Auditor General considers

necessary to achieve the purposes of the Act.

13. The Auditor General shall report to Parliament on Special

any audit carried out during any financial year and may Reports.
15 make such report publicly available through the official
website of the National Audit Office and shall not publish
the report if he has or intends to provide any report,
information, document, book, record or computer generated
transcript obtained in the course of the audit to the law
20 enforcement authorities.

14. The Auditor General shall table in Parliament the Triennial

Status Report of every auditee entity, within nine months Reports.
after the end of each period of three financial years. The
Report shall include the major deficiencies identified,
25 recommendations made by him and preventive measures
taken by the auditee entity and the position thereon as at the
submission of the report to the Parliament.

15. (1) The Secretary to the Treasury shall submit the Submissions
of the
financial statements of the Government to the Auditor financial
30 General not later than three months after the close of each statements of
financial year of the Government. the
Government
to the
(2) The annual report of the Ministry of Finance along Auditor
with the audited financial statements of the Government General.
 National Audit 11

and the Auditor General’s opinion thereon shall be tabled in

Parliament by the Minister assigned the subject of Finance
before 31st May of the following financial year.

(3) For the purposes of this section—

5 (a) “financial statement of the Government” shall

include–

(i) the statement of financial performance during

the financial year, a statement of financial
position showing the assets and liabilities of
10 the Government and a cash flow statement
for the financial year, accounting policies
applied and notes thereto, together with a
performance report for such year;

(ii) any other documents which the Auditor

15 General may require to express his opinion
on the said financial statement; and

(iii) a statement listing of the auditee entities

considered in the said financial statement.

(b) “Government” means the Government Institutions

20 for which funds are being allocated by the annual
Appropriation Act. The President may declare by
Order published in the Gazette any other institution
which may be considered as the Government for
the purpose of this section;

25 (c) “Performance report” shall include the objectives

achieved, future goals, key performance indicators
and progress in the use of resources.

16. (1) Every auditee entity shall maintain proper books Annual
and records of all its income, expenditure, assets and financial
statements of
30 liabilities, to enable annual and periodic financial statements audited
to be prepared in respect of such entity. entities.
 12 National Audit

(2) Annual financial statements including the annual

appropriation account, the revenue account and the accounts
relating to Advance Account Activities in respect of each
Ministry, Department, and any other specified institution
5 and Commission and the annual financial statements in
respect of every other auditee entity, shall be submitted by
the Chief Accounting Officer to the Auditor General along
with the annual performance reports, within such period as
may be provided by rules.

10 17. Every public corporation or company in which the Annual

Government or a public corporation or a local authority report of a
public
holds fifty per centum or more of the shares of that company, corporation
shall include in its annual report— or company.

(a) the report presented by the Auditor General under

15 section 12 to the Chairman of the governing body
of such entity;

(b) the performance report for the relevant year;

(c) annual audited financial statements of the entity

for the relevant year; and

20 (d) a future projection report, based on sustainable

development, which may include details of
activities to safeguard the environment and mitigate
any negative impact on the environment and where
necessary include environment and disaster impact
25 assessment analysis.

18. (1) The Auditor General shall charge a fee for Audit fees.
conducting an audit from the following auditee entities:—

(a) public corporations and statutory Funds or Boards;

(b) businesses and other undertakings vested in the

30 Government by or under any written law; and

(c) any company registered or deemed to be registered

under the Companies Act, No. 7 of 2007 in which
 National Audit 13

the Government or a public corporation or local

authority holds fifty per centum or more of the
shares of that company.

(2) The fee to be charged shall be determined by the

5 Auditor General in consultation with the Secretary to the
Ministry of the Minister assigned the subject of Finance
with the concurrence of the Secretary to the relevant Ministry
of the Minister assigned the respective auditee entity.

(3) The fee received by the Auditor General under this

10 section shall be credited to the Consolidated Fund after
having deducted the cost incurred in carrying out the audit.

(4) An auditee entity shall settle the accounts for audit

fees within thirty days from the date of invoice.

(5) If an auditee entity defaults on the payment of audit

15 fees the Auditor General shall promptly notify the Ministry
of Finance and where applicable, the relevant Provincial
Council to recover such fees.

(6) The Secretary to the Treasury or the Chief Secretary of

the relevant Provincial Council, shall after consulting the
20 relevant parties, direct that the audit fees recoverable from
an auditee entity, be defrayed from a vote on the national or
a provincial budget identified by the relevant Treasury.

PART IV

IMPOSITION OF SURCHARGE

25 19. (1)(a) Unless otherwise specifically provided for, Audit Service

in any other written law, the Audit Service Commission
to impose a
Commission shall report the amount of any surcharge.
deficiency or loss in any transaction of an
auditee entity where the Audit Service
30 Commission has reasonable grounds to
believe that such transaction has been made
 14 National Audit

contrary to any written law and has caused

any deficiency or loss due to fraud,
negligence, misappropriation or corruption
of those involved in that transaction to the
5 Chief Accounting Officer of the auditee entity
for imposition of a surcharge on the value of
the deficiency or loss in every transaction of
such auditee entity;

(b) Any person involved in causing the

10 deficiency or loss referred to in paragraph (a)
shall hereinafter be referred to as the “person
who is responsible for the deficiency or loss”.

(2) The Chief Accounting Officer of the auditee entity

shall charge the surcharge under subsection (1), against any
15 person who is responsible for the deficiency or loss, either
jointly or severally, followed by a formal disciplinary action
by the Disciplinary Authority or a judicial process.

(3) The Chief Accounting Officer of the auditee entity

shall, in charging the amount to be recovered, adopt the
20 following procedure:—

(a) issue a notice to each person in respect of whom the

surcharge is to be imposed specifying the reasons
for such imposition, and afford an opportunity for
each such person to make representation to show
25 cause, in writing in respect of subsections (1) and
(2), within a period of twenty one days from the
date of receipt of the Notice;

(b) consider the representations made under paragraph

(a) prior to making a decision on the surcharge to
30 be imposed;

(c) where no representations have been made within

the time specified, the Chief Accounting Officer of
 National Audit 15

the auditee entity shall proceed to make a decision

on the surcharge to be charged;

(d) the surcharge shall be decided on the cumulative

of the amount of the deficiency or loss and such
5 interest as may have accrued, charged on the rates
for Treasury bills when the deficiency or loss arose;

(e) the decision of the Chief Accounting Officer of the

auditee entity under paragraphs (b) and (c) shall be
communicated forthwith to each person who is
10 responsible for the deficiency or loss by issuing a
Surcharge Certificate, specifying the following:—

(i) the reasons for surcharging;

(ii) the amount to be charged includes the

deficiency or loss of the transaction, the
15 surcharge decided and any interest
percentage, as may be determined, for any
delay of payment of the said amounts
exceeding two months from the date of
payment specified;

20 (iii) the action contemplated for its recovery;

(iv) the date on or before which the amount

specified under item (ii) is to be paid;

(v) the details of the manner in which payment

shall be made.

25 (4) The Chief Accounting Officer of the auditee entity

shall charge the amount specified under subsection (3)(e)(ii)
from the person who is responsible for the deficiency or loss
who may be in-service or not in-service at the time of the
 16 National Audit

audit, within one month of the date of payment as specified

in the Surcharge Certificate.

20. (1) Any person aggrieved by a decision made by the Appeals to be

Chief Accounting Officer of the auditee entity under section made to the
Surcharge
5 19 may, within one month from the date of receiving the Appeal
Surcharge Certificate, appeal against such decision to the Committee.
Surcharge Appeal Committee appointed under section 21.

(2) The said Surcharge Appeal Committee may—

(a) allow the appeal;

10 (b) amend, alter or vary the decision; or

(c) disallow the appeal.

(3) (a) The decision made under subsection (1) shall be

communicated in writing to the appellant and
the Chief Accounting Officer of the auditee
15 entity and the Chairman of the Audit Service
Commission through the Chairman of the
Surcharge Appeal Committee;

(b) The Chief Accounting Officer of the auditee

entity shall immediately execute the decision
20 and report back to the Audit Service Commission
in writing, within one month from the date of
issue of such communication.

(4) Where any person is dissatisfied by the decision of

the Committee, he may appeal to the Court of Appeal within
25 thirty working days from the date of issue of the
communication under subsection (3)(b) of this section.

(5) The Order of the Court of Appeal shall be

communicated by the Chief Accounting Officer of the
 National Audit 17

auditee entity, in writing to the Chairman of the Audit

Service Commission.

21. (1) There shall be a Surcharge Appeal Committee Appointment

of the
(hereinafter referred to as the “Committee”). The
Surcharge
5 Constitutional Council shall appoint the Committee and its Appeals
Chairman. The Committee shall consist of not less than five Committee.
members, from among those having experience in the fields
of auditing, law and public finance management, public
administration and engineering, to hear and determine
10 appeals by any person aggrieved by a decision made under
section 20.

(2) No member of the National Audit Office and the

Sri Lanka State Audit Service shall be a member of the
Committee. The Auditor General shall not be a member of
15 the Committee. The Committee shall act independently of
the Auditor General.

(3) The said Committee shall determine the appeal

procedure and rules pertaining to appeal, which shall be
published in the Gazette.

20 22. The Chief Accounting Officer of the auditee entity Crediting of

shall credit, all such sums of money collected as surcharge moneys paid
as Surcharge.
and interest accrued, if any, under section 19 (3)(e)(ii), to the
Consolidated Fund:

Provided that where the surcharge is related to a

25 transaction made in respect of a Provincial Council or a local
authority, the sum collected as surcharge shall be credited to
the Provincial Fund of such Provincial Council or the Fund of
the relevant local authority, as the case may be.

23. (1) Where any sum to be charged under sections Proceedings

for recovery
30 19 (3)(e)(ii) has not been paid within the time specified and before
where the Audit Service Commission is satisfied that Megistrate.
 18 National Audit

immediate action is necessary for the recovery of such sum,

unless an appeal is pending before the Committee under
section 20(1), in the Court of Appeal under section 20(4),
the Audit Service Commission may issue a certificate
5 containing particulars of such sum to be recovered and the
name and last known place of employment or residence of
the person who is responsible for the deficiency or loss, to a
Magistrate having jurisdiction in the division in which such
place is situated within a period of ninety working days.

10 (2) (a) The Magistrate shall thereupon summon such

person who is responsible for the deficiency or
loss to show cause as to why further proceedings
for the recovery of the sum to be recovered shall
not be taken against him.

15 (b) Where the person who is responsible for the

deficiency or loss fails to show sufficient cause,
the sum to be recovered shall be deemed to be a
fine imposed by a sentence of the Magistrate on
such person who is responsible for the deficiency
20 or loss for an offence punishable with fine only
and not punishable with imprisonment.

(3) (a) The certificate issued by the Auditor General

shall be conclusive proof that the sum to be
recovered has been duly assessed and is in
25 default in any proceeding before the Magistrate
under subsection (1).

(b) The proceeding under this section shall be

conducted within thirty days from the date of
issue of the certificate under subsection (1) unless
30 an appeal has been made to the Surcharge Appeal
Committee under section 20 (1) or to the Court of
Appeal under section 20 (4), as the case may be.
 National Audit 19

(4) The provisions of Chapter XXIV of the Code of

Criminal Procedure Act, No. 15 of 1979, shall mutatis
mutandis apply in relation to default of payment of a fine,
and in addition the Magistrate may make any direction
5 which, he could have made at the time of imposing such
sentence.

(5) Nothing in subsection (2) to (5) of section 291 of the

Code of Criminal Procedure Act, No. 15 of 1979, shall apply
in any case referred to in subsection (1).

10 (6) In any case referred to in subsection (2), where in

default of payment of the fine, the person who is responsible
for the deficiency or loss shall be sentenced to imprisonment
for a period not exceeding one year. The Magistrate may
allow time for the payment of the amount of that fine or
15 direct payment of that amount to be made in instalments.

(7) Where a Magistrate directs that the payment be made

in instalments and default is made in the payment of any
one instalment, proceedings may be taken as if default had
been made in payment of all the instalments then remaining
20 unpaid.

(8) Any person aggrieved by the decision of the

Magistrate may appeal to the High Court established under
Article 154P of the Constitution not later than thirty days
from the date of such decision.

25 (9) Wherever the Audit Service Commission issues a

certificate under subsection (1), he shall at the same time
issue to the person who is responsible for the deficiency or
loss, whether resident or non-resident, a notification thereof
by personal service, registered letter sent through the post or
30 tele mail service; and the non- receipt of such notification
by the person who is responsible for the deficiency or loss
shall not invalidate proceedings under this section.
 20 National Audit

(10) For the purpose of Part IV of this Act, in the event the
Audit Service Commission finds that the Chief Accounting
Officer of the auditee entity has caused or has been involved
in causing any deficiency or loss due to fraud, negligence,
5 misappropriation or corruption in a transaction made
contrary to any written law, the President shall charge the
amount as referred to in subsection (3)(e)(ii) of section 19
from the Chief Accounting Officer of the auditee entity.

PART V

10 AUDIT SERVICE COMMISSION

24. (1) There shall be an Audit Service Commission Establishment

(hereinafter referred to as “Commission”) established under of an Audit
Article 153A (1) of the Constitution consisting of the Auditor Service
Commission.
General and four other members appointed by the President
15 on the recommendation of the Constitutional Council.

(2) The Commission shall have its own Secretariat.

25. In addition to the powers and functions of the Powers,

Commission as set out under Article 153C of the Constitution, duties and
functions of
the Commission shall– the
Commission.
20 (a) appoint Committees to assist in the affairs of the
Commission;

(b) introduce schemes to enhance the quality of

performance of the staff of the National Audit Office
referred to in section 31;

25 (c) give directions for carrying out an internal audit;

(d) conduct inquiries when a direction or guideline

issued is violated;

(e) make rules for which specific provision has been

given in this Act.
 National Audit 21

26. (1) The Chairman of the Commission shall preside Meetings of

at all meetings of the Commission and, in his absence, a the
Commission.
member elected by the members present from among
themselves shall preside at such meeting.

5 (2) The quorum for a meeting of the Commission shall be

three members. All decisions of the Commission shall be
made by a majority of the members present at the meeting.
In the event of an equality of votes, the member presiding at
the meeting as Chairman shall have a casting vote.

10 (3) The Commission shall have power to act

notwithstanding any vacancy in its membership, and no act,
proceeding or decision of the Commission shall be or deemed
to be invalid by reason only of any such vacancy or any
defect in the appointment of a member thereof.

15 (4) The Commission shall meet at least once in a month.

(5) In the event a written request is made by at least three

members to summon an urgent meeting of the Commission,
the Chairman of the Commission shall summon such
meeting as soon as possible, but in any case not later than
20 ten days after the receipt of such request.

(6) There shall be a Secretary to the Commission who

shall be appointed by the Commission. The Secretary shall
be responsible for proper recording and maintenance of
minutes of the meetings of the Commission and the common
25 seal of the Commission and its custody.

27. (1) The President may grant any member of the Leave from
Commission leave from the discharge of his functions as a the discharge
of functions
member of the Commission for a period not exceeding two as a member
months and shall for the duration of such period, on the of the
Commission.
30 recommendation of the Constitutional Council and having
 22 National Audit

regard to the provisions of Article 153 A (1) of the

Constitution, appoint a person to be a temporary member of
the Commission, for the period of such leave.

(2) A member of the Commission who without obtaining

5 leave from the President is absent from three consecutive
meetings of the Commission, shall be deemed to have
vacated office with effect from the date of the third of such
meetings, and shall not be eligible thereafter to be
reappointed as a member of the Commission.

10 28. (1) The appointment, promotion, transfer, Commission

disciplinary control and dismissal of the members belonging to appoint,
to the Sri Lanka State Audit Service recruited by the promote &c.
officers and
Commission shall be vested in the Commission. staff.

(2) The Commission may appoint a qualified Secretary

15 and such other officers and Non-Audit Staff to the
Commission and to the National Audit Office on such terms
and conditions as may be determined by the Commission.

(3) The salaries and other allowances and any other

benefits of persons recruited by the Commission, except
20 those who have been attached to the National Audit Office
from the Combined Services, shall be determined by the
Commission, after having obtained the views of the Salaries
and Carders Commission, and shall be charged on the
Consolidated Fund.

25 PART VI

ESTABLISHMENT OF THE NATIONAL AUDIT OFFICE AND THE

SRI LANKA STATE AUDIT SERVICE

29. There shall be a National Audit Office (hereinafter Establishment

referred to as the “Audit Office”) to assist the Auditor of the
30 General in the discharge of his duties and functions, which National
Audit Office.
shall consist of the Auditor General and a staff comprising
the members belonging to the Sri Lanka State Audit Service
established under section 30 of this Act and the Non-Audit
Staff (hereinafter referred to as the “staff of the Audit Office”).
 National Audit 23

30. (1) There shall be established a service known as Establishment

the Sri Lanka State Audit Service. of the
Sri Lanka
State Audit
(2) The members of the Sri Lanka Audit Service and the Service.
Audit Examiners’ Service serving on the date immediately
5 prior to the date of operation of this Act, shall be deemed to
be members of the Sri Lanka State Audit Service as at the
date of operation of this Act.

31. Any member of the staff of the Audit Office recruited Resignation
of a member
by the Commission may resign his office by writing under of the Staff
10 his hand, addressed to the Chairman of the Commission. of the Audit
Office.

32. A person aggrieved by the decision of the Appeals to

the
Commission in the exercise of its powers under section 28, Administrative
may appeal against such decision to the Administrative Appeals
Appeals Tribunal as specified under Article 153G. Tribunal.

15 33. (1) The Auditor General may deploy any of the Stationing of
the Officers.
officers of the Sri Lanka State Audit Service or qualified
auditor or any other person lawfully engaged by him,
to carry out any audit of an auditee entity in any part of
Sri Lanka.

20 (2) All auditee entities shall cooperate with the Auditor

General and any officer deployed by him and shall provide
a safe and secure working environment to facilitate the
carrying out of an effective audit.

34. The Commission shall prepare the annual budget The

Commission
25 estimates of the Audit Office within the period as specified to submit
by the Minister assigned the subject of Finance. The said annual
budget
estimates shall be submitted to the Speaker on such date as estimates for
incorporation
may be decided by the Speaker after consultation with the in the
national
Minister of Finance and the Chairman of the Commission. budget.
 24 National Audit

The Speaker shall table the said estimates in Parliament for

its review with the observations of the Minister assigned the
subject of Finance, who shall provide his observations to
the Speaker within ten working days from its receipt of such
5 annual budget estimates from the Speaker. The Parliament
shall after having reviewed the annual budget estimates of
the Audit Office forward the estimates to the Minister
assigned the subject of Finance for incorporation in the
national budget with such modifications, if any, as
10 Parliament thinks fit.

35. (1) At least sixty days before the beginning of each The Auditor
financial year, the Auditor General shall prepare and submit General to
submit
to the Speaker a draft annual work programme that describes annual work
the Auditor General’s proposed work programme for the programme.
15 forthcoming year.

(2) The Speaker shall cause the draft annual work

programme to be reviewed by a committee of Parliament
established under the Standing Orders calling for any
comments or amendments including the programme
20 priorities. The Speaker or the said committee may be required
to forward the said comments or amendments within thirty
days from the date of receipt of the work programme. The
Speaker shall forward the same to the Auditor General.

(3) Where there are no reviews made under subsection (2)

25 the Speaker shall directly table the work programme
submitted by the Auditor General in Parliament.

(4) Where there are reviews made under subsection (2),

the Auditor General may, after considering any comments
or amendments, amend the work programme as suggested
30 by the Speaker or the said committee.

(5) The Auditor General shall present a completed annual

work programme to the Speaker before the beginning of
 National Audit 25

each financial year and the Speaker shall then table the work
programme in Parliament.

36. (1) Notwithstanding the provisions in any other Power to

law to the contrary, the Speaker shall appoint an independent appoint an
independent
5 qualified auditor to carry out the audit of the financial qualified
statements, accounts and other information relating to the auditor to
audit the
financial year of the Audit Office and for this purpose the
Audit Office.
Audit Office shall be deemed an auditee entity under this
Act. Any reference to an auditee entity and the Auditor
10 General shall, mutatis mutandis apply in relation to the Audit
Office and the independent qualified officer.

(2) The appointment of an independent qualified auditor

under subsection (1) shall be subject to such terms and
conditions as the Commission may determine, including
15 the remuneration to be paid to such auditor, which shall be
defrayed as part of the expenses of the Audit Office.

(3) On completion of the audit, such independent

qualified auditor shall be required to submit such report
thereon to the Commission, and the Commission shall cause
20 such report to be tabled in Parliament together with any
observations or views that the Auditor General may have
expressed on such audit at the time of carrying out the same
by the independent qualified auditor.

(4) The report of the independent qualified auditor shall

25 include—

(a) the audited financial statements prepared in

accordance with section 5 of this Act and in
compliance with any other written law; and

(b) an account of the implementation of the annual

30 work programme required under section 35.
 26 National Audit

37. (1) There shall be established a fund to be known as Audit Fund.

the Audit Fund (hereinafter referred to as the “Fund”).

(2) There shall be paid into the Fund-

(a) fifteen per centum of the moneys collected by

5 the Auditor General as Audit fees;

(b) all payments credited by the Government, with

the concurrence of the Parliament;

(c) any cost recovered in any suit or prosecution

under section 50.

10 (3) There shall be paid out of the Fund-

(a) any expense incurred in any suit or prosecution

under section 50;

(b) all expenses incurred in the administration of

the Fund;

15 (c) all payments given as rewards or incentives on

accordance with the rules made in that behalf to
persons who have shown exceptional
performance in the discharge of their duties under
this Act;

20 (4) Any sum not utilized within the financial year shall
be credited to the Consolidated Fund.

(5) The accounts of the Fund shall be audited under

section 36.
 National Audit 27

PART VII

RESPONSIBILITIES OF A CHIEF ACCOUNTING OFFICER AND

ACCOUNTING OFFICER

38. (1) Unless otherwise specified in the provisions of Responsibilities

this Act or any other written law, the Chief Accounting Officer of a Chief
5
Accounting
or an Accounting Officer of an auditee entity, for the purpose Officer or an
of this Act shall:-— Accounting
Officer.
(a) be the Officer responsible within the auditee entity
to co-ordinate with the Auditor General to
10 successfully carry out the audit of such entity;

(b) ensure that financial planning, internal controls,

maintenance of proper books and accounts, financial
management and a mechanism for providing
management information, are effectively in place;

15 (c) ensure that an effective internal control system for

the financial control exists in each such entity and
carry out periodic reviews to monitor the
effectiveness of such systems and accordingly make
any alterations as required for such systems to be
20 effectively carried out;

(d) ensure the timely preparation and submission of

annual and other financial statements and in addition
the Chief Accounting Officer shall be required to
submit annual reports to Parliament pertaining to
25 the auditee entity;

(e) ensure that all audit queries be answered within the

specified time as required by the Auditor General;

(f) ensure that an effective mechanism exists to conduct

an internal audit;
 28 National Audit

(g) ensure that adequate office space and facilities

necessary for the officers authorized by the Auditor
General, be provided to discharge their duties in a
proper manner; and

5 (h) upon receipt of a notice by the Auditor General of

any apparent fraud or any criminal activity, he shall
without delay make a complaint to a law enforcing
authority.

(2) The review to be carried out by a Chief Accounting

10 Officer referred to in paragraph (c) of subsection (1) shall be
in writing and copies of the same shall be made available to
the Auditor General.

39. (1) The Chief Accounting Officer of a Ministry, the Chief

Accounting Officer of a Department, or the governing body Accounting
Officer&c.,
15 or the Head of any other auditee entity concerned shall, on toconsider
receipt of the Annual Detailed Management Audit Report the Detailed
of the Auditor General referred to in section 11, consider Management
such report and inform the Auditor General, the Secretary to Audit Report
submittedby
the Treasury and the appropriate Minister, of the concerns the Auditor-
20 and remedial actions proposed. General.

(2) The remedial actions referred to in subsection (1) shall

be submitted to the Auditor General within three months
from the submission of the reports to the auditee entities,
giving reasons for the ability or inability, if any, to take
25 action on any of the matters pointed out in such Detailed
Management Audit Report.

40. (1) The Chief Accounting Officer of a Ministry shall Internal

appoint an Internal Auditor to such Ministry and the audit.
Accounting Officer of each Department coming under such
30 Ministry shall appoint a competent auditor to carry out the
Internal Audit of such Department, and every other auditee
entity shall have its own Internal Auditor, who is to perform
an internal audit duly appointed by the governing body of
such auditee entity.
 National Audit 29

(2) Where an Internal Auditor has not been appointed

under subsection (1), such appointment shall be made within
a period not exceeding two years from the date of operation
of this Act.

5 (3) The Auditor General shall give directions pertaining

to the scope and functions of an auditor.

(4) An Internal Auditor appointed under subsection (1)

shall directly report to the Chief Accounting Officer, the
Head or the governing body of such auditee entity, as the
10 case may be, for the purposes of this Act.

(5) Copies of all reports submitted by internal auditors

under subsection (4) shall be forwarded to the Auditor
General and also to the Department of Management Audit
of the Ministry of Finance.

15 41. (1) There shall be an Audit and Management Audit and

Committee for every auditee entity specified under Management
Committees.
subsection (2), referred to by that name or by any other name,
appointed by the respective Chief Accounting Officer or
accounting officer or the respective governing body, as the
20 case may be, to assist him by undertaking continuous review
of operations of each auditee entity and, to periodically
report to the said Chief Accounting Officer, accounting
officer or the respective governing body. The said Committee
shall in particular-

25 (a) review all audit and management aspects of the

auditee entity to ensure that its resources, are used
economically and efficiently for the purpose of
achieving the predetermined objectives of such
entity as a whole, or in respect of any specific project
30 or programme undertaken giving priority to the
resources available in Sri Lanka; and
 30 National Audit

(b) ascertain whether such objectives have actually been

achieved within the authorized time limits, for the
disbursement of funds allocated for such activity,
and whether any completed project or programme is
5 in actual operation as envisaged in the plans.

(2) For the purposes of this section an auditee entity

referred to in subsection (1) shall be:–

(a) a Ministry;

(b) a Provincial Council;

10 (c) a public corporation;

(d) a Commission constituted under the Constitution or

a Special Presidential Commission of Inquiry;

(e) the Presidential Secretariat;

(f) the Office of the Secretary General of Parliament;

15 (g) a company registered or deemed to be registered

under the Companies Act, No. 7 of 2007 in which the
Government or a public corporation or a local
authority holds fifty per centum or more of the shares
of that company;

20 (h) any business or other undertaking vested in the

Government under any written Law; and

(i) any body corporate or incorporate established by

law or otherwise.
 National Audit 31

PART VIII

OFFENCES AND PENALTIES

42. (1) An auditee entity shall fulfill any requirement Failure to

of the Auditor General or any person authorized by him, in assist the
Auditor
5 the performance and discharge of the duties and functions
General to be
under this Act and any person who— an offence.

(a) fails or refuses to furnish any information, document,

explanation, report or material when requested to do
so within a period of not less than twenty one working
10 days from the date of receipt of such request;

(b) refuses or fails to nominate a person conversant on

the subject, to appear before the Auditor General or
any person authorized by him, when requested to do
so;

15 (c) makes any statement or submits a document to the

Auditor General or any person authorized by him
knowing it to be false or misleading;

(d) resists or obstructs the functions and duties of the

Auditor General or any person authorized by him,

20 commits an offence and shall on conviction after summary

trial by a Magistrate, be liable to a fine not exceeding one
hundred thousand rupees or to imprisonment of either
description for a term not exceeding six months or to both
such fine and imprisonment.

25 (2) In addition and subsequent to the penalty imposed

under subsection (1) for the offence, every person holding
any public office or being employed as a public officer,
shall be disqualified from holding such office or being so
employed-

30 (a) where an appeal lies to a court of competent

jurisdiction, from the date on which the conviction
is affirmed in appeal; and
 32 National Audit

(b) where no appeal is preferred to a court of competent

jurisdiction, immediately upon the expiry of the
period within which such an appeal may have been
preferred.

5 43. (1) A person who otherwise than in the course of his Influencing
duty, directly or indirectly, in person or through another, or attempting
to influence a
influences or attempts to influence, any decision of the— decision of
the
(a) Commission; Commission
or any
officer of the
(b) any member of the Commission; Sri Lanka
State Audit
Service &c.
10 (c) any officer of the Sri Lanka State Audit Service; to be an
offence.
(d) any Qualified Auditor appointed under section 36;
or

(e) any person as may be appointed by the Commission

or by the Auditor General to undertake any function
15 under this Act,

commits an offence and shall on conviction be liable to a

fine not exceeding one hundred thousand rupees or to
imprisonment for a term not exceeding three years or to both
such fine and imprisonment.

20 (2) Every High Court established under Article 154P of

the Constitution shall have jurisdiction to hear and
determine any matter referred to in paragraph (1).

44. Where an offence under this Act is committed by a Offences by

body of persons, then— bodies of
persons.

25 (a) if such body of persons is a body incorporate or

unincorporate, or a corporation every director or
officer or agent thereof; and
 National Audit 33

(b) if such body of persons is a firm, every partner,

shall be liable to a fine or imprisonment or both as specified

for the respective offences under sections 42 and 43:

Provided however, a director or an officer or agent of

5 such body incorporate, unincorporate or of such corporation
or partner of such firm shall not be deemed to be guilty of
such offence if he proves that such offence was committed
without his knowledge or that he used all such diligence to
prevent the commission of such offence.

10 45. Any person who contravenes the provisions of this Other

Act or any rule made thereunder, commits an offence and offences.
shall on conviction after summary trial before a Magistrate
be liable to a fine not exceeding one hundred thousand
rupees or to imprisonment for a term not exceeding one year
15 or to both such fine and imprisonment.

46. Any person convicted for an offence under the Convicted

provisions of this Act shall not be precluded from being persons to be
punished for
punished for any other offence committed in the process other
under any another written law. offences in
the process.
20 PART IX

GENERAL

47. (1) A Centre for Public Audit Training and Establishment

Development shall be established under the Audit Office of a Centre
for Public
with a view to enhancing the capacity of human resources in Audit
25 the field of public finance and auditing. Training and
Development.
(2) The Commission shall formulate rules pertaining to
the management of the Centre.

48. (1) The Commission may make rules in respect of Power of the
all or any of the matters in respect of which rules are Commission
to make
30 authorized or required to be made under this Act. rules.
 34 National Audit

(2) Every rule made under subsection (1) shall be

published in the Gazette and shall come into operation on
the date of publication or on such later date as may be
specified therein.

5 (3) Every rule made under subsection (1) shall, within

three months from the date of its publication in the Gazette
be placed before Parliament for approval. Every rule which
is not so approved shall be deemed to be rescinded as from
the date of disapproval, but without prejudice to anything
10 previously done there under.

49. The Auditor General may, from time to time, give Auditor
the staff of the Audit Office or any person authorized by him General to
give
such general and special directions, in writing as to the directions.
exercise and discharge of its powers and functions when
15 conducting an audit and the staff or any person authorized
by him shall give effect to such direction.

50. (1) No liability, whether civil or criminal, shall Protection

attach to the Auditor General, any officer of the Sri Lanka from law
suits.
State Audit Service, any officer of the National Audit Office
20 or any other person assisting in the discharge of the duties of
the Auditor General as referred to in section 9(1)(a), for
anything which in good faith is done in the performance or
exercise of any function or power imposed or assigned under
the provisions of this Act.

25 (2) Any expense incurred by the Auditor General, an

officer of the Sri Lanka State Audit Service, any officer of
the National Audit Office or any other person assisting in
the discharge of the duties of the Auditor General as referred
to in section 8(a), as the case may be, in any suit or
30 prosecution brought against him before any court in respect
of any act which is done by him under this Act shall, if the
court holds that such act was done in good faith, be paid out
of the Consolidated Fund, unless such expenses are recovered
by him in such suit or prosecution.
 National Audit 35

51. All members of the Commission, officers and staff Members of

of the Audit Office shall be deemed to be public servants the
Commission,
within the meaning and for the purposes of the Penal Code. officers and
staff of the
Audit Office
deemed to be
public
servants.
52. The Audit Office shall be deemed to be a Scheduled The Audit
5 Institution within the meaning of the Bribery Act, and the Office
deemed to be
provisions of that Act, shall be construed accordingly. a Scheduled
Institution
within the
meaning of
the Bribery
Act.

53. Auditor General’s Fees Act, No. 26 of 1958 is hereby Repeal of

repealed. Act, No.26
of 1958.

54. (1) The Auditor General’s Department shall cease Transitional

10 to be in operation from the date of operation of this Act. provisions.

(2) Notwithstanding the provision of subsection (1),—

(a) all moneys lying to the credit of the Auditor

General’s Department on the day immediately
preceding the date of operation of this Act, shall
15 stand transferred with effect from that date to the
Audit Office established under this Act;

(b) all property and other rights over movable or

immovable owned by the Auditor General’s
Department and used for the purposes of the
20 Department on the day immediately preceding
the date of operation of this Act shall vest in the
Audit Office with effect from that date;

(c) all debts, obligations and liabilities of the

Auditor General’s Department subsisting on the
25 day immediately preceding the date of operation
 36 National Audit

of this Act shall be deemed to be debts,

obligations and liabilities of the Audit Office
with effect from that date;

(d) all contracts and agreements entered into for the

5 purposes of the Auditor General’s Department
and subsisting on the day immediately
preceding the date of operation of this Act shall
be contracts and agreements entered into by the
Audit Office deemed with effect from that date;

10 (e) all actions and proceedings instituted by or

against the Auditor General’s Department and
pending on the day immediately preceding the
date of operation of this Act shall be deemed
with effect from the date of operation of this Act
15 to be actions and proceedings instituted by or
against the Audit Office;

(f) all decrees and orders entered or made by any

competent court in favour of or against the
Auditor General’s Department which remain
20 unsatisfied on the day preceding the date of
operation of this Act shall with effect from that
date be deemed to have been entered or made in
favour of or against the Audit Office and may be
enforced accordingly;

25 (g) every rule in force on the day immediately

preceding the date of operation of this Act and
which are not inconsistent with the provisions
of this Act shall be deemed to be a rule made
under this Act;

30 (h) all audits that are pending shall be continued by

the Auditor General under this Act.
 National Audit 37

(3) Where an Internal Auditor is not appointed to an

auditee entity, the internal auditors function as carried out
immediately before the date of operation of this Act shall
continue until such appointment.

5 (4) Members of the Sri Lanka State Audit Service and the
Audit Examiners’ Service employed in the Auditor General’s
Department immediately before the establishment of the
National Audit Office shall be deemed to be employees of
the National Audit Office and shall be employed under the
10 same terms and conditions as may be applicable to that
employee immediately before that date.

(5) The offer of employment to all officers and staff of the

Auditor General’s Department on the day immediately
preceding the date of operation of this Act, shall be as follows:—

15 (a) The Commission shall, within three months of the

date of operation of this Act, offer all members of the
Sri Lanka Audit Service and the Audit Examiners’
Service serving on the date immediately prior to the
date of operation of this Act in the Auditor General’s
20 Department, employment in the Audit Office on such
terms and conditions of employment as are not less
favourable than were applicable to them on the date
on which the offer is made;

(b) The offer made by the Commission under subsection

25 (1) shall be open until the expiry of a period of two
months from the date on which the offer was made,
and any member of the Sri Lanka Audit Service and
the Audit Examiners’ Service serving on the date
immediately prior to the date of operation of this Act
30 in the Auditor General’s Department, who opts to
join the Audit Office shall become a member of the
Sri Lanka State Audit Service;

(c) Where a member of the Sri Lanka Audit Service and

the Audit Examiners’ Service serving on the date
 38 National Audit

immediately prior to the date of operation of this Act

or an Non-Audit Staff member recruited by the
Auditor General’s Department and employed in the
Auditor General’s Department on the date
5 immediately prior to the date of operation of this
Act, becomes an employee of the Audit Office, his
period of employment in the public service as an
employee of the Auditor General’s Department shall
be counted as a period of employment as a member
10 of the Sri Lanka State Audit Service and the change
in his status of employment shall not break the
continuity of his period of employment in the public
service;

(d) Any member of the Sri Lanka Audit Service and the
15 Audit Examiners’ Service serving on the date
immediately prior to the date of operation of this Act
in the Auditor General’s Department or any Non-
Audit Staff member of the Auditor General’s
Department who does not opt to serve the Audit Office
20 may retire under the provisions of the Minutes on
Pensions. Until the Commission formulates its
procedural rules relating to appointment, promotions
and transfer, the procedural rules formulated and
published in Gazette Extraordinary No.1589/3 on
25 February 20, 2009 by the Public Service Commission
shall mutatis mutandis be applied to the members of
the Staff of the National Audit Office;

(e) A member of the Combined Services or any other

Service employed in the Audit Office shall remain in
30 the Audit Office subject to the terms and conditions
of the Service Minutes of the respective Combined
Services;

(f) A member of a Combined Service employed in the

Auditor General’s Department on the date
35 immediately prior to the date of operation of this Act
shall have the option to serve the Audit Office or to
 National Audit 39

be transferred out of the Audit Office, subject to the

terms and conditions of the respective Combined
Service Minutes;

(g) The Officers who have been directly recruited by the

5 Auditor General and serve in the Auditor General’s
Department at the time of operation of this Act who opt
to remain as the Non-Audit Officers in the Audit Office
within the Department Service shall be distinctly
separate from the Sri Lanka State Audit Service.

10 55. In this Act, unless the context otherwise Interpretation.

requires—

“any person authorized by the Auditor General” means

any person appointed in writing or whose services
are engaged by the Auditor General by name or office,
15 to discharge the functions assigned to him under this
Act or any rules made thereunder, who are members
of the State Audit Service of the National Audit
Office, qualified auditor or any other person having
expertise in a required field; and shall discharge such
20 functions until he ceases to hold office;

“auditee entity” includes -

(a) Offices of the Cabinet of Ministers;

(b) all Departments of the Government;

(c) the Presidential Secretariat;

25 (d) Office of the Secretary to the Prime Minister;

(e) the Judicial Service Commission;

(f) the Constitutional Council;

 40 National Audit

(g) the Commissions referred to in the Schedule to

Article 41B of the Constitution and the Special
Presidential Commission of Inquiry established
under the special Presidential Commissions of
5 Inquiry (Special Provisions) Act, No. 4 of 1978;

(h) the Parliamentary Commissioner for

Administration;

(i) the Office of the Secretary General of Parliament;

(j) Provincial Councils and local authorities;

10 (k) public corporations and statutory Funds or

Boards;

(l) businesses and other undertakings vested in the

Government by or under any written law;

(m) any company registered or deemed to be

15 registered under the Companies Act, No. 7 of
2007 in which the Government or a public
Corporation or local authority holds fifty per
centum or more of the shares of that company;

“Auditing Standards Committee” means the Auditing

20 Standards Committee established under the
provisions of the Sri Lanka Accounting and Auditing
Standards Act, No.15 of 1995;

“Accounting Officer” includes, except where other

arrangements are made by the Ministry of the Minister
25 assigned the subject of Finance or as provided for in
any other written law, Head of each Department who
shall be immediately responsible to the Chief
Accounting Officer in the manner specified in the
Financial Regulations;

30 “Auditor General” means the Auditor General appointed

under Article 153 of the Constitution;
 National Audit 41

“Concurrent Audit” includes examination of the financial

transactions at the time the transaction takes place
or examining any parallel transaction;

“Chief Accounting Officer” includes, unless otherwise

5 specifically provided for in any other written law-

(a) the Secretary to a Ministry, appointed to be

the Chief Accounting Officer of such Ministry,
by the Minister assigned the subject of Finance;

(b) an officer in charge of a department specified

10 in Article 52(4) of the Constitution; or

(c) an officer in charge of any other department or

entity, not supervised by a Secretary to a
Ministry as specified in paragraph (a);

“Constitution” means the Constitution of the Democratic

15 Socialist Republic of Sri Lanka;

“financial institution” includes –

(a) any licensed commercial bank within the meaning

of the Banking Act, No 30 of 1988;

(b) any licensed specialized bank within the meaning

20 of the Banking Act, No. 30 of 1988;

(c) any banking institution within the meaning of

the Monetary Law Act (Chapter 422);

(d) any registered finance company within the

meaning of the Finance Business Act, No. 42 of
25 2011;

(e) any finance leasing company within the meaning

of Finance Leasing Companies Act, No. 56 of
2000;
 42 National Audit

(f) any money broker within the meaning of the

Money Broking Regulations No.1 of 2013
published in the Gazette Extraordinary No. 1796/
21 dated February 8, 2013 issued under the
5 Monetary Law Act (Chapter 422);

(g) any primary dealer within the meaning of the

Registered Stock and Securities Ordinance
(Chapter 420) and the Local Treasury Bills
Ordinance (Chapter 417);

10 (h) any insurance company within the meaning of

the Regulation of Insurance industry Act, No. 43
of 2000;

(i) any insurance broker and loss adjuster within the

meaning of the Regulation of Insurance industry
15 Act, No. 43 of 2000;

(j) any insurance agent adjuster within the meaning

of the Regulation of Insurance industry Act,
No. 43 of 2000;

(k) any stock exchange within the meaning of the

20 Securities and Exchange Commission of Sri Lanka
Act, No. 36 of 1987;

(l) any stock broker or stock dealer within the

meaning of the Securities and Exchange
Commission of Sri Lanka Act, No. 36 of 1987;

25 (m) any managing company to operate a unit trust

within the meaning of the Securities and Exchange
Commission of Sri Lanka Act, No. 36 of 1987;
and

(n) any person who carries on business as a market

30 intermediary within the meaning of the Securities
and Exchange Commission of Sri Lanka Act,
No. 36 of 1987;
 National Audit 43

“governing body” means the body entrusted with the

administration and management of the affairs of any
statutory body or entity or any company registered
or deemed to be registered under the Companies Act,
5 No. 7 of 2007 in which the Government or a public
corporation or a local authority holds fifty per centum
or more of the shares of that company;

“Head” means the Head of a Department coming under a

Ministry;

10 “information” shall include any oral or written evidence

including data generated by electronic means;

“local authority” means a Municipal Council, Urban

Council or a Pradeshiya Sabha and includes any
authority created or established by or under any law
15 to exercise, perform and discharge powers, duties and
functions corresponding or similar to the powers,
duties and functions exercised, performed or
discharged by any such Council or Sabha;

“Non-Audit Staff” means persons other than members of

20 the Sri Lanka Audit Service and the Audit Examiners’
Service serving on the date immediately prior to the
date of operation of this Act in the Auditor General’s
Department and persons recruited by the
Commission after the operation of this Act and
25 includes persons attached to the Combined Services
Staff;

“Provincial Council” means a Provincial Council

established for a Province by virtue of Article 154A
of the Constitution;

30 “public corporation” means any corporation, board or

other body which was or is established by or under
any written law other than the Companies Act, No. 7
of 2007, with funds or capital wholly or partly
provided by the Government by way of grant, loan
35 or otherwise;

“resources” includes public finance, public property,

human, physical or natural resources and debt;
 44 National Audit

“Sri Lanka Accounting Standards” means the Sri Lanka

Accounting Standards specified under the Sri Lanka
Accounting and Auditing Standards Act, No. 15 of
1995;

5 “Sri Lanka Public Sector Accounting Standards” means

the Sri Lanka Public Sector Accounting Standards
issued from time to time by the Ministry of the
Minister in charge of the subject of Finance, under
section 8 (3) and section 12 of the Finance Act, No.
10 38 of 1971 and as may be specified under the
provisions of the Sri Lanka Accounting and Auditing
Standards Act, No. 15 of 1995;

“Sri Lanka State Audit Service” means the Sri Lanka

State Audit Service established under Article 153B
15 (2) of the Constitution of the Democratic Socialist
Republic of Sri Lanka; and

“transaction” includes any activity connected with a

finance business or non-finance business; and in
relation to property includes:–

20 (a) a purchase, sale, loan, charge, mortgage, lien,

pledge, transfer, delivery, assignment,
subrogation, transmission, gift, donation,
creation of a trust, settlement, deposit including
the deposit of any article, withdrawal, transfer
25 between assets, extension of credit;

(b) any agency or grant of power of attorney;

(c) any other disposition or dealing of property in

whatever form, or whatsoever description or
nature, however described, which results in any
30 right, title, interest or privilege, whether present
or future, or whether vested or contingent, in the
whole or any part of such property being
conferred on any person.

56. In the event of any inconsistency between the Sinhala text

35 Sinhala and Tamil texts of this Act, the Sinhala text shall to prevail in
prevail. case of
inconsistency.
 National Audit 45

SCHEDULE [Section 9 (c)]

Oath of Secrecy

In terms of Section 9 of the National Audit Act, No……. of 2018.

I, ………………………………….................…… being member

of the Audit Service Commission/ an employee of the
………………………………………*, and expert person assisting in
the discharge of the duties of the Auditor General as referred to in
section 8(a), do solemnly declare and affirm / swear that I shall
maintain in utmost secrecy the information whatsoever which is given,
stated, discussed or otherwise gathered in the performance of my
duties and such information will not be disclosed, discussed or stated
in any form whatever to any person in public or private, except–

(a) when required to do so by a Court of Law;

(b) when required by Parliament; or

(c) when specified under any written law, subject to

section 9(b) of the National Audit Act, No. of 2018.

The obligations herein set out shall bind me during my term of

office in the ..................................* and shall continue thereafter
except in relation to any information that has come into public domain
due to no breach of my obligations hereunder.

I append my signature to this oath on this ........... day

of...................... Two Thousand ......................

………………….
Signature

Taken oath on this ……… day of ………………….. 20……

in…………………… before me.

………………………………..
Speaker / Auditor General

* National Audit Office/Auditor General’s Department/Combined

Services
46 National Audit

DEPARTMENT OF GOVERNMENT PRINTING