The recent revelation made by the National Secretariat for Non-Governmental Organisations (NSNGO) that in 2023 the Non-Governmental Organisations (NGOs) registered with the Secretariat had received as much as Rs. 33 billion in foreign funding for their projects in the country while suspecting that the actual amount received by all NGOs (registered and unregistered) could be nearly Rs. 100 billion has raised many eyebrows in Sri Lanka.
The NSNGO Director General has stressed that the money has been spent without any monitoring.
At present there are 1,786 registered NGOs operating at a national level, 1,636 at district level, and 38,524 at divisional level.
The question that arises is not about the existence of non-government or non-profit organisations in the country but the Government’s failure to prepare a monitoring mechanism to assure that these organisations are working for the development of the country and its citizens.
Nowadays, an ordinary citizen of this country can witness a number of organisations mushrooming here and there with some funds coming from a foreign country, but the real objective of these organisations is often opaque.
Mushrooming NGOs
Meanwhile, a senior lawyer working closely with Government institutions to bring in the new laws explained that the issue extended beyond registered organisations to encompass non-registered ones as well.
Speaking on the condition of anonymity to The Sunday Morning, he pointed out that after the war, numerous organisations had been established for peace-building purposes. However, he highlighted a lack of clarity regarding the actual impact of their projects on the country, emphasising on the absence of post-evaluations.
He further elaborated on the situation, citing environmental protection organisations as an example. While acknowledging that some organisations genuinely contributed to the country’s well-being, he expressed concern about others misusing funds.
Drawing from his firsthand experience over the last decade working closely with NGOs, he noted that this field was particularly attractive due to continuous donations in the form of dollars or euros.
NGOs have become pivotal entities in addressing poverty and related issues. In Sri Lanka, they play a prominent role in delivering healthcare and education. However, there are critics who argue that despite receiving increasing amounts of donor aid, NGOs may not be the most suitable actors for genuinely improving people’s lives.
In the past, there have been two draft bills looking to address the issue – one worked out in 2017 and the other in 2020.
The Voluntary Social Service Organisations (Registration and Supervision) amendment bill has been prepared, taking into consideration the recommendations made by the Parliamentary Select Committee (PSC) which studied the operation of NGOs and their impact as well as the views of the relevant stakeholders including the Central Bank of Sri Lanka’s Financial Intelligence Unit (FIU).
As per the 2020 draft, the objectives were to provide for the registration of all the NGOs, to establish the National Secretariat for NGO as a statutory body which is the authorised institution for the regulation and supervision of NGOs, to promote the mutual co‑operation between the State and NGOs, to recognise NGOs in the effort to fulfil the common development requirements of the country, to strengthen and empower the civil society, to facilitate the effective operation of NGOs, and to ensure the transparency and accountability on their finance, policies, and management.
Even though Cabinet approval had been granted for the bill to amend the existing laws on NGOs, the bill is yet to be gazetted and presented to Parliament, with vehement opposition coming from various Civil Society Organisations (CSOs).
Yet again, another draft has been prepared by considering the previous drafts last year and has now been sent for the observations of NGOs.
Concerns about proposed act
The commentary on the proposed Non-Governmental Organisations (Registration And Supervision) Act of 2024, authored by Ermiza Tegal, Attorney-at-Law, and Ruki Fernando, raises significant concerns. It points out a complete lack of meaningful consultation in the legislative process, noting that despite a 2018 request for proposals on amendments to the Voluntary Social Service Organisations Act of 1980, no draft has been made available for review.
The history of politically-motivated State antagonism towards NGOs is highlighted, framing them as threats to national security and sovereignty. The decision to keep voluntary social service and NGOs under the Minister of Public Security rather than the Ministry of Social Services is questioned, raising concerns about potential security-driven influences on legislative reform.
The commentary also criticises the absence of draft review opportunities for civil society groups, indicating a lack of transparency and responsiveness. Additionally, the rushed consultation process is condemned as tokenistic, lacking genuine engagement and comprehensive consultation. Overall, the commentary emphasises on the need for a more transparent, inclusive, and responsive approach to the legislative reform process for NGOs in Sri Lanka.
However, when The Sunday Morning contacted State Minister of Finance Shehan Semasinghe, he stated that he was not aware of the finances received by the country through NGOs and that therefore he could not comment on the exact figures.
“The Government’s action plan was published last week and we have delegated different responsibilities to various Government institutions. As a Government, we ensure transparency to the greatest extent possible. The action plan reflects the Government’s commitment to better governance. This is the stance of Sri Lanka – a commitment to enhancing good governance through measures such as taxation policies, the utilisation of strategic development acts, and procurement. The action plan outlines 16 points that demonstrate the Government’s dedication,” the Minister said.
National Secretariat for Non-Governmental Organisations (NSNGO) Director General Sanjeewa Wimalagunarathna stated that NGOs were opposed to registration that could not be amended, which was the main constitutional aim of the Government.
“Currently, NGOs in Sri Lanka are being registered under different acts. The NGOs cannot claim they were not consulted. When I assumed duties, there was a draft bill focusing more on the security aspect,” he said.
In response to the allegations levelled by NGOs, the Director General emphasised that NGOs had been consulted prior to the preparation of the draft. “At a meeting held on 31 January 2023, the NGOs handed over their proposals. We requested the Legal Draftsman to draft the law together with their proposals. This is the final draft and we asked them to send their proposals. However, they want amendments again. By the time we received their recent amendments, the time period had been exceeded. We have already sent the draft to the Attorney General (AG) and once it comes from the AG, we will see whether we can amend it further,” he said.