In Sri Lanka, local government has been an essential component of the administrative systems even before the colonial period. However, present form of local government structure was introduced during the colonial rule of British with the establishment of Colombo and Kandy Municipal Councils (MCs) by Ordinance No.17 of 1865. Since then there had been several changes and improvements in the form structure and functions of Local Authorities (Las). At the time of independence in 1948, systems of Local Authorities in operation were Municipal Councils (MCs), Town Councils (TCs) and Village Committee (VCs).
After independence, several committees appointed to examine the problems of local government and to recommend the necessary reforms. The Choksy Commission (1953), the Moragoda Committee (1978) and Tennakoon Commission (1979) were among them.
Before introduction of Thirteenth Amendment to the Constitution (1987) and establishment of Provincial Councils (1988) local authorities had been under the direct control of Central Government. The Minister of Local Government was responsible and answerable to the public through parliament for their performances in local authorities. After the establishment of Provincial Councils under the Thirteen Amendment to the Constitution, subject of local governments came under the Provincial Councils.
At present there are three types of local authorities functioning at three different levels:
Municipal Council (MCs) for major cities constituted under MC Ordinance.
Urban Councils (UCs) for developed and semi developed urban areas constituted under US Ordinance.
Pradeshiya Sabha (PCs) for rural areas under Divisional Secretariats divisions- constituted under Pradeshiya Sabha Act.
Structure of Local Authorities
With the introduction of Thirteenth Amendment to the Constitution, matters relating to form, structure, composition and constitution of local authorities became a function of the Central Government. Before constituting the local authorities the Minister in charge of the subject of local government has to declare the area for that purpose (i.e. a Municipality for a Municipal Council, a Town for an Urban Council and Pradeshiya Sabha area for a Pradeshiya Sabha). With regard to the MCs and UCs one of the basic criteria to be considered is the degree of urbanization, density of population, economic development and provision of amenities. In determining the limits of Pradeshiya Sabha area, it is stipulated by law that the area shall, as far as possible correspond to the area of Assistant Government Agents Division. However, it was observed that there was no consistent policy in Sri Lanka in constituting and upgrading local authorities. Today local government elections are held under the mixed system including ward system.
All local authorities are corporate bodies governed under elected councils subject to supervision and guidance by two higher forms of government. They derive their powers and functions from the Constitution, Central and Provincial legislation. Other than the provisions made under main ordinances and Acts, there are many laws which confer powers on local authorities on various aspect of local administration. Some of them are Housing and Town Improvement Ordinance, Urban Development Authority Act. Thoroughfare Ordinance, National Environmental Act, Butchery Ordinance, Burial Ordinance, and Rabies Ordinance. Many of these legal provisions made by through other laws relating to LAs are outdated and need to be updated. In addition LAs are empowered to formulate by-laws on various subjects and functions.
As already known there are some similarities in the composition of local authorities. Each Municipality Councils consist of the Mayor, Deputy Mayor and a number of councilors as prescribed by the Minister by order published in the gazette. Similarly each Urban Council and Pradeshiya Sabha consist of the Chairman, Vice Chairman and such number of members as determined by the Minister by order published in the Gazette. In determining the number of members the Minister shall have regard to the extent, population and the level of development of the area. (The composition of the membership of each Local Authorities is stipulated in section 5 of both MC & UC Ordinances and in section 4 of the PS Act).
Powers and functions
Powers and functions of all three types of local authorities are almost the same and basically charged with matters relating to public health, public utility services and Thoroughfare. Section 4 of the MC Ordinance states ‘The Municipal Council constituted for each Municipality …….charged with the regulation control and administration of all matters relating to the public health, public utility services, public thoroughfare and generally with the protection and promotion of the comfort, convenience and welfare of the people and amenities of the municipality. Provisions in section 4 of the UC Ordinance are almost identical with provisions made in the MC Ordinance. Section 3 of the Pradeshiya Sabha Act also contains similar provision with regard to the functions of PSs. In addition, the PS Act has made some provision for Pradeshiya Sabha to engage in certain social and economic development activities in their respective areas.
Local Authorities have the following powers and functions, as provided in the respective statutes.
i. Powers to acquire, possess and dispose of properties.
ii. Powers to enter into contracts to matters relating to the functions assigned to LAs by-law.
iii. Powers to raise revenues.
iv. Powers to incur expenditures
v. Powers to issue licenses
vi. Powers to frame by laws.
In addition to traditional functions relating to public heath, public utility services, thoroughfare and physical planning, Local Authorities as have the responsibility of taking regulatory measures relating certain activities such as construction, industrial and commercial undertakings, blocking out of lands, parking of vehicles, protection of payments, stray animals etc., in order to ensure orderliness comfort, convenience, environment and to prevent nuisance.
Although the improvements in infrastructure and public utility services facilitate the speedy development of the area, Local Authorities are not assigned the functions, which are directly related to socio-economic development of the country. However, PS Act has made some provision for PS to engage in certain development activities such as agriculture, community development and relief programmes.
Council Meetings and Committee System
Elected Council is the policy making body of a Local Authority. The Council meets once a month to take decisions. Counsellors are expected to be in close touch with the people and to take decisions to fulfill the desires of the respective communities. The committee system operating in local authorities are very important and is expected to facilitate the council decisions and promote community participation in council affairs. There are two types of committees:
i. Standing Committee
ii. Ad hoc Committees.
MCs have a Standard Committee on Finance and not less than two other committees on other subjects. In case of MCs standing committees are compulsory. All matters which go to the council meetings should be discussed at the relevant standing committee and before they are taken up at Council Meeting. Under the Urban Council the standing committees discuss issues before they are taken up to the council meeting. However, under the Urban Council, standing committees are not compulsory.
The Pradeshiya Sabha Act also provides provisions for appointment of 4 committees for following subjects: Finance and Policy Planning, Housing and Community Development, Technical Services, and Environment and Amenities. These committees also are not compulsory. Except in MCs, committee system is not functioning regularly in UCs and PSs. At present, the committee system in UCs & PCs function as advisory bodies. Generally members of all the committee consist of elected members. However, there is a provision in the UC Ordinance and PS Act to appoint citizens of the area as members of the committees, but in practice it is not happening.
Revenue
Most of Local Authorities in Sri Lanka do not have sufficient financial resources to meet the needs of the communities. The revenue base of Local Authorities, except a few local authorities such as Colombo and Kandy MCs are very poor. There are three major sources of revenue for local authorities:
i. Revenue collected by LAs,
ii. Grants and re-imbursement from the Government and
iii. Loans.
Local Authorities are empowered to levy certain rates, taxes and licensing fees are permitted by Ordinances and Acts. The main source of revenue comes from Assessment Rates. These rates are mostly collectable by Local Authorities in Urban areas. Even the revenue from licensing is also derived mainly from industrial and businesses in urban areas. The principal source of revenue for Local Authorities in rural areas in the acreage tax and it is collectable from land exceeding one hectare in extent. Under the present structure of Local Authorities, there is wide gap between urban and rural Local Authorities in regard to collectable revenue.
Most of Local Authorities are collecting less than 75% of the collectable revenue. Poor performance of Local Authorities in collecting revenue had badly affected the planned development activities of the Local Authorities. At present around 75% LA revenues are spent on meeting administrative and maintenance costs leaving them dependent on grants from Central Government and Provincial Councils for development activities.
At present salaries and allowances of employees in Local Authorities are reimbursed to the Local Authorities by the Central Government through Provincial Council. The stamp duties collected by the Government in respect of land transactions in Local Authorities areas are also reimbursed to the Local Authorities by the Government through Provincial Councils. The government also provides grants to Local Authorities for capital work through Provincial Councils, decentralized budge and foreign funded project.
Devolution of powers
One of the objectives of establishment of Provincial Councils in 1987 through the 13th Constitutional Amendment is to devolve the powers of Central Government to sub national levels and thereby to find the solution to the ethnic problem that has prevailed in the country for a long period of time. It is also expected to accelerate the regional and rural development policies and programmes through the decentralized structures of governance.
Provincial Council together with local authorities constitutes a major component in the country’s administration and local government has become a significant element in the system of governance. Although local governments are recognized by the Constitution, it has been observed that Local Authorities have not been treated as an effective instrument in process of the devolution or in accelerating the local level development. The present debate on the devolution of power would have been much more realistic and meaningful if local government institutions were treated as an essential feature of devolution and local development.
At present, Divisional Secretariat co-ordinates most of the administrative and development functions within the Division. It performs agency functions of Central Government Ministries as well as the Provincial Councils on this basis. Local authorities play a marginal role as the primary tier of sub-national level when compared to the functions of Divisional Secretariat. Under devolves structures, Local Authorities are expected to be main development arm of the PCs. But in practice local authorities that were never in the mainstream of development are further marginalized by placing them under the administrative purview of Provincial Councils.
The role and functions of local government has not been changed sufficiently to meet the socio-economic and political problems that have been occurred over the years especially with the expansion of the economy. Although constitutional recognition has been given to Local Authorities under the Thirteenth Amendment to the Construction, no structural changes were taken place at local authority level to address the issues relating to devolution or local level development. No additional responsibilities were given to Local Authorities by the Government or Provincial Councils to deal with such issues.
Local Government reforms
The report of the Presidential Commission of Inquiry on Local Government Reforms (1999) has addressed the most of the issues identified in the local government sector and made recommendations to overcome the defects in the system. Many of these recommendations are still valid to date for implementation.
• Incorporation of Local Government as a level of governance into the Constitution
• Expansion the powers and functions of Local Authorities and widening of scope of activities
• Strengthening of Committee system of Local Authorities by making it compulsory.
•Making of Local Authorities to be the planning authority at local level.
• Expansion of resource base of Local Authorities
• Introduction of special programmes to develop human resources of Local Authorities.
(The writer is a retired Professor in Law, University of Sri Jayewardenepura)
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