(COLOMBO, LANKAPUVATH) –Sri Lanka’s Treasury has commenced issuing confirmation letters verifying the bills due from the government to government contractors and suppliers in various sectors including construction who have not yet been paid their bills for various development activities of the government.
The Treasury has started issuing ‘Letters of Confirmation to Settle Due Bills’ to the respective bank in order for the contractors and suppliers to obtain credit facilities from the banks, the Ministry of Finance and Economic Policy Development said.
Under this program, these letters will be issued in respect of the arrears for the years 2019 and 2020 reported on 31st May 2020 said in a statement.
Accordingly, these letters will be issued only to a licensed commercial bank nominated by the relevant contractors and a special account will have to be opened in the name of the contractor at the so-named commercial bank to pay the relevant arrears.
Action will be taken by the Treasury from time to time to release the money required to pay the arrears to the relevant Ministry/Department. Using the funds, the relevant Ministry/Department will settle the relevant bills only through the special bank account in the name of the contractor.
This facility is implemented as per the decision taken by the Cabinet on 06 June 2020 under the theme ‘Facilitating Economic Revival’.