Abstract:
Provincial Councils (PCs) introduced the concept of devolution to Sri Lanka. Establishment of
PCs in 1988 was perceived as constituting a radical departure from the centralized form of
governance Sri Lanka had practiced since emerging from colonial rule. The guiding principle
set out in the constitution for the transfer of finance to provinces is achieving balanced
provincial development specifically defined as the need to reduce social and economic
disparities as well as differences in per capita income between the provinces. The main
objective of this research is to analyze, what extent devolution has been taken place in the
Provincial Council System (PCS) in favour of Provincial Development and also to examine in
institutional and financial capacity of the PCs in Sri Lanka. In Order to achieve these objectives,
different sources were used, including Secondary data from Published and Unpublished books,
Articles, government reports and other relevant documents in relation to PCs. Mixed method
and descriptive analytical method were used to analyze data in this research. The 13th
amendment to the constitution has given adequate financial powers for the PCs to be able to
maintain their financial stability. However, due to various reasons the majority of such
provisions have not been enforced. This was a major setback in financial autonomy in
provinces. As a result, PCs have had to depend on the central government grants. The Study
found that the PCs did not largely contribute to provincial development in Sri Lanka. In
conclusion the process of devolution through PCs system in Sri Lanka has been not in progress
in terms of institutional capacity.
