In response to the release of the Central Bank of Sri Lanka’s Annual Report for 2020, Member of Parliament Harsha De Silva expressed his analysis via a series of tweets yesterday (01). He alleges that the Annual Report states that Sri Lanka’s budget deficit for 2020 was 11% even though it should be higher at 14%. According to MP De Silva, the reason for this is that the Report states that the CBSL was directed by the Ministry of Finance to shift 2020 expenses to arrears from 2019. De Silva states that this is evidence of fraudulent cash accounting which cannot be approved by the Auditor General. Additionally, he mentions that the CBSL has placed the responsibility of ‘doctoring’ the figures with the Ministry of Finance, and that the CBSL cannot be blamed as the 2019 Annual Report displayed the correct figures which have now been changed in 2020. He also stressed that the Government of Sri Lanka follows the cash accounting method which has since changed due to political reasons. “The GoSL follows the cash accounting method. This means that any amount received or spent is recorded at that point, immaterial of what period it was for. It has been done this way every year. This year it has been fraudulently doctored for the first time due to political reasons,” he said.