Unique and Special

Board of Trustees

Powers of the Trustees of the Construction Guarantee Fund and Government Controls.

The Trustees of the Fund have been endowed with autonomy and are vested with wide powers and authority to adopt decisions on procedure, administration and operations of the CGF.

The limited areas that are controlled by the Government are essentially, the setting up of maximum limits for the issuing of bonds & guarantees in total (risk exposure), the financial accounts of the Trust in respect of each accounting year, are audited by the Auditor General. The statements of accounts are required to be forwarded to the Treasury and to the Ministers in charge of the subject of Finance & Construction and also a copy are forwarded to Parliament. In the event that the monies of the Trust are exhausted or for any other reason, the Trustees may require the winding up of the Trust, for which the approval of the Secretary to the Treasury must be obtained and all monies lying to its credit must revert to the Treasury.

read more

The controls exercised by the Trust for issuing bonds & guarantees to the contractors have been formulated on the basis of continuing research and studies carried out by the construction industry specialists.

Such studies reveal that the failure of construction contractors in their performances and the consequent claims on bonds & guarantees by the principals / employers, have very seldom been for technical reasons.

The principle reasons for the poor performance of contractors have been that:

        • Construction contractors pay scant regard to the importance of

          • Planning & Control

          • Management

        • Scant regard in respect of financial discipline

        • Contractors are not paid on time

        • Clients call for encashment of Bonds & Guarantees without valid reasons and justification.

Construction Guarantee Trust Fund

Powers Empowered and vested with the Trustees

secretary to the Treasury as settlor established the Construction Guarantee Fund (C.G.F ) as a Trust/Fund with autonomy & as a Special Purpose Vehicle (SPV) and delegated his total authority for proper execution and Management of the Trust/ Fund to a Board of Trustees comprising of Public and Private Sector officials and the present Trustees are;

The object of the Trust is to provide funds in place of Bid Bonds/ Performance Bonds and such other Securities when undertaking Construction Contracts and for matters connected therewith and incidental thereto and to undertake all such ventures without limitation.

2021 Board members

Board of Trustees

+
Trustee/ Chairman
Eng. Keerthi Ranjith Abeysiriwardena
Secretary of State Minister of Rural Housing and Construction & Building Materials Industries Promotion
+
Trustee
Ms. J C Weligamage
Director General, Department of Public Finance
+
Trustee
Mr. Chinthaka Mendis
Director General, Securities and Exchange Commission of Sri Lanka (SEC)
+
Trustee
Eng. (Prof.) N T Sohan Wijesekara
Chairman Construction Industry Development Authority (CIDA)

+
Trustee
Ms. L S J Jayawardhene
President, Federation of Chambers of Commerce and Industry of Sri Lanka (FCCISL)
+
Trustee
Mr. Susantha Liyanaarachchi
Chairman National Construction Association of Sri Lanka (NCASL)

Subscribe to our newsletter

Extra professional input in Construction Management.