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National Policy on Local Government

The Local Government and Provincial Council Ministry has prepared a new National Policy Document on local governments embodying new principles and action plans for developing the local government bodies with greater community participation and coordination with provincial and central governmental institutions. The proposed new policy will feature new approaches including homegrown solutions for community problems and a Jana Sabha a grassroot level body for rural sector also known as village government.

Another salient feature of the new national policy would be 'micro-centres of growth' on modern lines and make them part of the system of representative government.

The Ministry invites public views on the draft and the public could get in touch with the Ministry of Local Government and Provincial Councils, 330 Union Place, Colombo 2; (Tel. 2395326-7, fax: 2347529 or e-mail [email protected])

4.4.2.3 Similarly, at the local government level, planning attention and care will be given to address the needs of women, children, and socially dependent and vulnerable populations such as the marginalized and the semi-abled. 4.4.3 Access to Resources: 4.4.3.1 The Policy recognizes an urgent need to enhance peoples' confidence in the local government system and to improve its image as an effective tier of government. While acknowledging the supreme responsibility of the national and provincial governments to support the local authorities with adequate allocation of resources, the Policy also calls for appropriate measures to further strengthen and galvanize the local government initiative to raise financial and other resources required for local development.

4.4.3.2 The Policy will also set in motion a mechanism for stimulating a continuous policy dialogue to identify innovative means of financing the needs of local authorities. It will reiterate immediate introduction of payment of property rates on self-assessment basis to encourage the ratepayers to assess on their own their due rates and make proactive payments without waiting for official notices.

4.4.3.3 The current overlapping of sources of revenue between the provincial councils and local authorities will be eliminated through a consultative process. Immediate steps will be taken to clarify the relationship and required coordination between the two levels of government 4.4.3.4 Local authorities will be helped to identify new sources of regular revenue. For this, the scope of regulatory functions will be expanded to cover the activities of private enterprises and informal markets. It will help reorient local governments to be a supportive agency for development of the fast expanding informal sector which has displayed a high potential for poverty reduction and local economic development. On application, local authorities will endeavor and provide, common amenities and infrastructure required by the informal sector enterprises to carryout their operations.

4.4.3.5 Adequate safeguards and legal support will be set in place to rationalize and streamline the current revenue channels. This will include arrangements for direct remittance of assigned revenues such as the annual grants from the Finance Commission, the stamp duties and court fines to the local bodies with due and prompt notification to the Provincial Council. 4.4.3.6 Similarly, necessary measures will be set in motion to increase the powers of local authorities to achieve a higher degree of autonomy that guarantees freedom and access to raise adequate human and financial resources that commensurate with their development vision, functions and responsibilities.

4.5 Social Inclusivity, Civil Society Participation and Partnerships 4.5.1 Social Inclusivity 4.5.1.1The policy derives its socio-economic and political vision from the pluralistic realities of the nation and encourages respect and preservation of ethnic, religious and cultural diversity as integral to its social tapestry and providing them with equal opportunity and access to power, justice and resources. Therefore, the policy will promote optimum social inclusion in all matters, political, social and economic. This principle will encompass ethnic, religious and all other minority groups and also the marginalized and vulnerable segments of the nation. 4.5.2Civil society participation for governance: 4.5.2.1 The Policy will encourage conscientious peoples' participation not merely as a tokenist gesture of attending occasional meetings and consultations dominated by the officials and / or political leaders but, as a continuing partnership that is effectively integrated and institutionalized into the local area decision making process as expressed in the Local Government Citizens' Charters. 4.5.2.2 The local government planning process will be refined with appropriate guidelines that will provide for and encourage ward-based, community-level area-planning and participatory budgeting which will engage ward level stakeholders, community-based organizations and voluntary groups under the leadership and guidance of the elected representative/s of the ward. The Policy recognizes the right of local authorities to define and periodically sharpen the modes and mechanisms of civil society participation in local decision making. 4.5.2.3 The Policy will also emphasize the entailing duties that accompany participation rights of the people. Building the institutional capabilities of civil society organizations to take up local responsibility is an integral part of the Policy. Peoples' participation through Working Group mechanisms, City Development Committees, public consultations and through civil society organizations such as the Rate Payers' Associations will be the fulcrum of this participatory process. 4.5.3 Public-Private Partnerships: 4.5.3.1The local authorities will be encouraged to enter into productive partnerships for development activities in the area under their jurisdiction. Appropriate investment portfolios with other agencies, particularly the private sector, will be encouraged in principle and practice, subject to minimum but adequate safeguards and controls at provincial and national levels. 4.5.3.2The Policy will provide for establishment of a local development fund at the national level with a special cess, grants and voluntary contribution by the government, private sector and the international donors to assist local development.

4.6 Management Excellence 4.6.1 Inter Agency Coordination: 4.6.1.1The Policy insists on practical directions to stimulate participatory mechanisms for local authorities to realize the highest possible level of cooperation and coordination with relevant ministries and agencies. It emphasizes the need to strengthen local ownership and cross-sectoral coordination of local governance and development efforts among all involved institutions. 4.6.1.2 The Policy recognizes that local governance requires the highest sense of coordinated ownership and cooperation by all relevant ministries and sectors in order to provide conceptual and technical guidance to local authorities to realize their development vision and goals. For this purpose, in addition to the statutory committees, the Policy recommends and encourages the use of participatory mechanisms such as City and Local Area Watch Groups, Advisory Committees, Residents' Associations, Citizens' Fora, City Development Councils etc., supported by regular inter-departmental and inter-agency progress review and follow-up mechanisms at and among different tiers of government.

4.6.2 Professionalized human resources management: 4.6.2.1 With the emerging new trends, functions and responsibilities, there is an urgent need to upgrade and professionalize the knowledge and skills of the local government cadres and prepare them to take up new challenges with a high sense of responsibility, confidence and competence. The Policy calls for immediate measures to professionalize the human resources capabilities of local government institutions. Local government capacity building will, therefore, receive highest attention and support for skills development training and regular performance assessment.

4.6.2.2 The Ministry will establish a National Strategy on Local Government Capacity Development which will place emphasis on planned development of local government capacity. Emphasis will be placed on skills development of local government personnel networking training institutions, universities, local government experts and the academia in this act. 4.6.2.3 The Policy will also ensure that the technical personnel required for the purpose are provided to the local authorities without delay. Human resource development and management with norms and guidelines for forward planning, recruitment, rigorous performance appraisal, and promotions will form an integral part of this process. 4.6.3 Information Communication Technology for Management Efficiency 4.6.3.1 In compliance to the state policy of 'an efficient and people friendly public administration system will be established in Sri Lanka with the assistance of Information and Communication Technology', 'the automation and process re-engineering' of local government functions will be done in order to improve the efficiency and effectiveness of local governance with the aim of enhancing its contribution towards upgrading the public service delivery and improving socio-economic development. Thereby, it is also expected to rectify the following weaknesses in the present local government system.

4.6.3.1.1 lack of data management system.

4.6.3.1.2 lack of public confidence in Local Government.

4.6.3.1.3 lack of civil society participation.

4.6.3.1.4 obsolete systems and inefficient resource and revenue management.

4.6.3.1.5 lack of accountability and responsiveness in service delivery.

4.6.3.1.6 lack of facilities for a meaningful democratic representation.

4.6.3.2 In this technical transformation, the provincial level capacities will be improved to enable them to provide the technical support services to the local government institutions and the 'Sri Lanka Institute of Local Governance' and other national level institutions also will be mobilized for this purpose. The contribution and support of the national and international resource agencies will be provided, for the purpose of making capacity development and providing necessary computer hardware in line with the applications of new technology. 4.6.3.3 Information Technology Project on Local Government - e Local Government The Ministry of Local Government and Provincial Councils with the assistance of Information and communication Technology Agency (ICTA) has already commenced an information technology project on local Government under the title of 'e-Local Government' to address the above issues. Moreover, by this project, the solutions based on free software which could be provided freely to all local authorities are designed and implemented.

4.6.4.Constructive politico-administrative interface and balance: 4.6.4.1 For the optimal functioning of Local government, political authority and administrative leadership must work hand in hand. Therefore, a consultative exercise will be launched, involving the Ministry of Local Government and Provincial Councils, the Provincial Public Service Commissions and National Association/s of the Heads of Local Authorities to develop and implement suitable mechanisms that can promote and ensure a healthier and more constructive balance and respectful interface between the local level political authority and the administrative staff of local authorities. For this purpose, a Code of Ethics for Elected Representatives of local authorities, will be adopted for voluntary observance.

5. COMMITMENT

5.1 National Commitment: 5.1.1 The objective of this Policy is to remove these inadequacies and impediments that are currently obstructing the local government system in the country from being an effective partner of the government in local development and administration.

5.1.2 The policy aims to empower and strengthen the local self government institutions of the country and create an enabling environment for them to provide authority-backed, goal-oriented, people-friendly and proactive support services for development of their localities and residents.

5.1.3 For this purpose, the Government of Sri Lanka pledges its support, services and resources to ensure immediate implementation of this Policy for which a well articulate implementation plan will be formulated and carried out by the Ministry of Local Government and Provincial Councils. In turn, it will urge the provincial councils to take necessary measures immediately to ensure that the objects and spirit of this policy are fully incorporated in their policies and statutes.

5.1.4. In pursuance of the above, the Ministry shall set up a 'National Council for Local Government' which shall be the focal point for implementation of this Policy and to improve democratic governance. It shall have representation of central government, provincial councils, and local authorities and will meet quarterly, or as required, to review progress of implementation and to recommend necessary corrective measures, reforms and actions. It will provide conceptual and technical guidance and tools to the Provincial Councils and local authorities.

6. REVISION OF POLICY

6.1 In keeping with the spirit of this document, the Policy will be reviewed and updated periodically by the 'National Council for Local Government'. 6.2 In this regard a consultative process will be followed with the involvement of all tiers of government and the civil society.

6.3 It will be done with the view to refining and strengthening the local government system progressively, in consideration with the limitation of the existing state policy, viz-a-viz its structure, powers, functions, duties, resources and the degree of autonomy. 6.4 This will be supported by necessary Policy adjustments and enactment of rules and statutes by the higher level of governments.

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