The era of the devolved system of administration in Sri Lanka was ushered with the introduction of the 13th Amendment
to the Constitution. It replaced the former District Administration with the following 8 Provincial Councils established
under the Provincial Councils Act No. 42 of 1987.

The political head of the Provincial Council is a Chief Minister who assisted by for Ministers who are responsible
to the Council. The Chief Secretary is most senior Provincial Public Servant and is the Chief Accounting Officer.
The devolution power and authority to the sub-national level through Provincial Council constitutes a fundamental
change in the course of the devolution of political and administrative institution in Sri Lanka. It involved the
transfer of legislative and executive powers to manage public functions in respect of specified subjects assigned to
PCs. A Provincial Fund and a Provincial Public Services (PPS) sought to provide the required financial and staffing
autonomy to exercise devolved power.

              Local Authorities form an integral part of the public administration of Sir Lanka. As body corporate,
LAs are vested with power to regulate, control and administer matters relating to public health, public utilities
and public thoroughfares and such other services for the protection and promotion of the comfort, convenience
and welfare of the rate-players in each area.

              With the establishment of the Provincial Councils, " the supervision and the administration of Local
Authorities have been devolved the Provincial Councils. Provincial Councils (Consequential Provisions) Act vests
powers of supervision of administration of LAS with the Provincial Minister of LG, conferring him with th4e necessary
legal authority to draw from the existing laws.

              The Ministry of Provincial Councils & Local government provides necessary guidance and assistance to
Provincial Councils to strengthen the Local Government Sector which include 40 Municipal Councils, 37 Urban Councils
and 258 Pradeshiya Sabhas

The Government annually provides four types of Grants, i.e. Criteria Based Grants, Matching Grants, Provincial Specific
Development Grants and Block Grants to Provincial Councils through this Ministry. The financial provisions for these
Grants are provided under the Annual Estimates of the Ministry. The Block Grants are utilized for Recurrent Expenditure
while other three types of Grants are utilized for Capital Investments.

The Ministry of Provincial Councils and Local Government functions as the executing agency for a number of foreign
funded development projects, which are implemented by the Provincial Councils. For the effective coordination and
monitoring of the implementation of these projects, at the national level a Project Coordinating /Steering Committee
has been set up for each project, under the Chairmanship of the Secretary to the Ministry.