Welcome to Sri Lanka Institute of Local Governance

Financial Management division

Proper Financial Management in Provincial Councils & Local Authorities has become a prime requirement to ensure proper utilization of resources to ensure and achieve expected targets within the existing legal framework. Therefore, the Financial Management Division of the Institute has properly understood those requirements and has planned out its activities to achieve those tasks.


Diploma in Local Government Financial Management (DLGFM)
  • The Financial Management Division of the Institute has been conducting many professional, academic and skill development study courses for Local Authorities & Provincial Councils with the aim of improving the knowledge and skill of various aspects of accounting procedures and financial management in order to ensure proper utilization of scarce resources of funds towards the development targets in the manner of official acceptance and ensuring transparency in all the transactions.
  • In these efforts, the Financial Management Division has pioneered in introducing a Diploma Course in order to give the knowledge and skill on accounting & financial management to the Accounting staff of Local Authorities. As a result, the first program of this Diploma Course was inaugurated in January 2007 and continued for a period of 4 years with different modules relevant to the accounting & financial management. There were a total of 185 participants who have enrolled in this course and have completed the course successfully.
  • The Financial Management Division having gained wide experience in this field has organized to conduct the similar Diploma Course for the batch of approx. 50 participants selected from Local Authorities during each Academic Year, with a modified syllabus with practical training on different modules in the accounting & financial management field.
  • In addition to the subject relevant to accounting & financial management, subjects such as Auditing, Legal Environment, Management processes & Practice Procurement Management and Accounting Information System etc. are included in the Course syllabus of this Diploma Course. A thesis has also been included in the Course syllabus to provide the opportunity for the participants to apply their knowledge to practical situation in order to balance the knowledge on theory and practical application of accounting & financial management.
  • A thesis has also been included in the Course syllabus to provide the opportunity for the participants to apply their knowledge to practical situation in order to balance the knowledge on theory and practical application of accounting & financial management.
Preparation of Financial Statements and On-The-Job Training Program for Backward LAs.
  • A special program has been launched by the Financial Management Division to assist and help backward Local Authorities in the District of Kandy, Moneragala & Badulla in preparation & submission of annual financial statements.
  • Improving the knowledge and developing the skills of the accounting staff have also been included in this program by providing on – the - job training for the accounting staff of these backward Local Authorities for preparation of the financial statements.
  • This program has become very popular among the backward Local Authorities mainly due to the following reasons.
    • Preparation & submission of the required annual financial statements of those Local Authorities in obliging the requirements of the Auditor General without delay.
    • Improving the knowledge & skills of the accounting staff of these backward Local Authorities while gaining experience in preparation and submission of financial statements of their own Local Authorities in a continuous manner.
  • It is planned to continue with this program for Local Authorities which require this service in order to overcome their difficulties in preparation and submission of annual financial statements throughout the Academic year 2013 to 2016.


Practical Training Programme on Preparation & Presentation of Financial Statements for LAs. (PS’s & UC’s) and Introduction of New Sri Lanka Public Sector Accounting Standards for LAs
  • This program will provide ample opportunities to gain practical experience and skill to prepare the financial statements of Local Authorities and also submit this to the proper authorities to fulfill the legal obligations.
  • It became necessary to build up the practical knowledge of the accounting staff of Local Authorities to undertake the above function due to the present difficulties in completing the financial statements annually and submitting them to the Auditor General through the respective Commissioners of Local Government (CLGs) consequent to the inadequate practical experience and knowledge of the relevant staff.
  • This program is planned to be conducted for Local Authorities in selected provinces on monthly basis.
  • The methodology of conducting this program have been decided in such a way to analyze each transaction in appropriate accounting manner to build up the knowledge and skills of the participants in gradual manner. In this connection a practical annual set of accounts will be used for this purpose.
  • Application of the practical knowledge of the participants will be observed and monitored at the end of the program through the exercise given to the individual participants to prepare and submit a set of financial statements for Local Authorities to fulfill the administrative and statutory obligations.
Preparation of new Accounting systems for LAs and Implementation as a by Law
  • In view of the ever increasing demand and requirements for knowledge & skill building in Accounting and Financial Management of the Local Authorities, the Financial Management Division of the Institute is making every effort to provide continuous services with professional standards to the Local Authorities & Provincial Councils to improve their relevant functions efficiently & effectively through the above academic courses, training programs, seminars and symposia and the practical programs.