No other country follows a hybrid accounting system that Sri Lanka follows: Harsha

Nov 22, 2020 (LBO) – Opposition Parliamentarian Harsha de Silva says that no other country in the world follows a hybrid accounting system that the Sri Lankan government currently follows.

Speaking in Parliament de Silva pointed out that there is an accepted method of accounting for government accounts which is based on the cash basis, not on the accrual basis.

“For example, when the government changed in 2014 and the new government came in 2015, I asked Treasury how much it had to pay in 2014. It was said that there were 240 billion rupees in unpaid bills,” he said.

“However, the government did not transfer them to 2014. Instead accounted for them as 2015 expenditure; because that is the accepted method. It’s the same every year. So is income, so is the expense.”

According to de Silva, what has been done is to fabricate a lie, reduce the budget deficit, and show it to the people.

“If the expenses are transferred to the previous year, the income should be transferred in the same manner as the tax was paid last year. You can not keep only the income for this year and carry the expenditure only for the previous year,” he stressed.

“No other country in the world follows such a hybrid accounting system. Must be either cash basis or accrual basis,”

“I challenge the House to submit the Auditor General’s certificate stating that the accounting system of this government has not been violated.”