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ManagementServicesCircularNO.33
My Ref:DMS/E/Gen/01
Departmentof ManagementServices
GeneralTreasury
Colombo01

05.04.2007
All Secretariesof Ministries
ChiefSecretariesof ProvincialCouncils
Headsof Departments
Chairmenof PublicCorporations,
StatutoryBoardsandGovernmentOwnedCompanies

RECRUITMENT,
REMUNERATION
ANDMANAGEMENT
OFPROJECT
STAFF

1. Theprocedurein respectof recruitment,

remuneration,
andmanagement
of Projectstaffis given
below.

1.1 ThisCircularwillbeappliedtoProjectswhichhavethefollowingcharacteristics.
1. Projectshouldbe appraisedby the Department of NationalPlanningandapprovedby the
Cabinetof MinistersandobtainingclearancefromDepartment of ExternalResourcesand
Department of Management Servicesregarding funding,budgetaryprovisionsandcreationof
cadre. .

2. Projectperiodshouldbemorethantwoyears.
3. Iftheprojectisassistedbyforeignfinancing:
a) At least50 % of the fundingshouldbe fromforeignfunds(The cost of foreign
consultancyshouldnotbe morethan20%of foreignfunds)withnotmorethan50%
domesticfundsexcludingtaxesandduties.
b) Shouldhaveanagreement betweenGovernment of SriLankathroughDepartment of
ExternalResources andfundingAgencyandshouldcarrya specificnamedefinedin
theagreement referredto above.
c) TotalcostoftheprojectshouldnotbelessthanUS$ 5.0Million.
4. Iftheprojectisfundedbydomesticfinancing:
Totalcostof the projectshouldnot be lessthanUS $ 5.0 Millionequivalentto Sri
Lankanrupees.

2. Recruitment
ofStaffforProjects

2.1Identificationofrequired
cadre

2.1.1No additionalpersonnelshouldbe recruitedfor any projectof which,the activitiescan be carried

out by deployingthe existingstaffof the executing/ implementingagencies.Suchactivitymaybe
organized as a special unit under the supervisionof a senior officer of the executing /
implementingagencies.

2.1.2Whereit is essentialto createa projectandrecruita separatecadretocarryoutprojectactivities,

the requiredcadrefor the management of projectsshouldbe identifiedat the pre-appraisal
/appraisalstageof a projectdependingon the necessityby implementing agency,with the

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 concurrenceof a committee
of theTreasurycomprising
DirectorsGeneralor AdditionalDirectors
Generalof departments
of ExternalResources,
Management Services,NationalBudget,National
PlanningandPublicFinance.Suchapprovedcadreandsalarystructureshouldbe includedin
projectdocuments.

2.2 Recruitment
ofCoreProiectStaff:

2.2.1Toensuresmoothandtimelyimplementation ofa project,a teamidentifiedas'CoreProjectStaff'

consistingof the ProjectDirectorand key staffsubjectto the Para2.1.2maybe deployed/
recruitedpriorto thesigningof theLoan/ GrantAgreement in respectof foreignfundedprojects
or immediately aftertheapprovalof theCabinetin respectof localfundedprojects,as thecase
maybe.

2.2.2CoreProjectStafffor projectsassistedthroughforeignfinancingmayfunctionbeforethe Loan

Agreementis signedto undertakepreparatory activities.Inthecaseof localfundedprojectsthe
Core ProjectStaff may functionsoon after the budgetaryprovisionsare approved.The
functioning
periodofprojectstaffshallbedeterminedattheprojectappraisalstage.

2.2.3TheMinistry/ ProvincialCouncil/Department / Agencyshouldtakeactionto makenecessary

budgetaryprovisions
to incurtheexpenditure
in respectofCoreProjectstaff.

2.2.4Appointmentto all postsincluding"CoreProjectStaff"shall be madeonly aftercallingfor

applications
byopenadvertisementsfollowedbyinterviews.

2.2.5(a) The selectionof ProjectDirectors(also referredto as Headof Projects)for projectsof which

loan/ grant amountis US $ 30 millionor its equivalentand above,shallbe madeby a committee
headedby Secretary,Ministryof Finance& Planningor DeputySecretaryto the Treasury.The
other membersof the interviewboardshall be the Secretaryof the Line Ministry/ ChiefSecretary
of the ProvincialCouncilandthe Headof the ImplementingAgency.

(b) A Committeeheadedby Secretaryof the line Ministry/ ChiefSecretaryof the Provincial

Councilas thecasemaybeshallhandletheselectionof ProjectDirectorsfor projectsof which
loan/ grantamountis lessthanUS$ 30 millionor itsequivalent.A headof a departmentfrom
theTreasuryandtheheadoftheimplementing agencyshallbeincludedintheboardof interview.

(c)Theboardof interview fortheselectionofotherseniorstaffoftheProject(Category B,C,& D

as specifiedin Para4.2.1)shallbechairedbytheSecretary of thelineMinistry/ ChiefSecretary
of theProvincialCouncilandshallconsistof theProjectDirectorandHeadof theImplementing
Agency

(d)Theinterviewboardfor theselectionof othersupportstaffof theProjectshallbechairedby

the ProjectDirector,consistingof representatives
fromthelineMinistry/ ProvincialCounciland
theImplementing Agency.

2.2.6The appointingauthorityfor the ProjectDirector& seniorstaffof the Projectshallbe the Secretary

to the Ministryor ChiefSecretaryof the ProvincialCouncilfor projectsimplementedby a Ministry/
Provincial Council and Head of the implementingagency for projects implemented by
Departments/Statutory Boards/PublicCorporations.The ProjectDirectorshall be the appointing
authorityfor all otherposts.

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,1' 2.2.7 All appointmentsshould be on contractbasis,for a maximumperiod of three years renewable
h annually subject to satisfactory performance.For this purpose the performanceof each
employeeshallbe appraisedas specifiedin Para 9.1 of this Circular. Suchcontractsmay be

/; extended for further term subject to satisfactoryperformance,by the appointingauthority.

Authorityfor theterminationof contractshallbe the respectiveappointingauthority.

2.2.8Personsabovethe ageof 57 yearsshallnotbe consideredfor the appointmentin the Projects.

2.2.9Educationalandprofessionalqualifications,experienceandcompetenciesrequiredfor the project

staff are given in Annexure I. Educationaland professionalqualifications,experience and
competenciesrequiredfor postswhichare not coveredby this circular,shouldbe determinedby
the committeereferredto Para2.1.2.

3. Appointmentfrom the publicservice. the provincialpublic serviceincludinalocal

authorities.
publiccorporations
andstatutOry
boards

3.1 Officersconfirmedin the PublicService,theprovincialpublicserviceincludinglocalauthorities,

publiccorporations andstatutoryboardscouldbe appointedto a projecton thefollowingbasis
subjectto fulfillmentof relevantqualifications
&experiences
asspecifiedin thePara2.2.9of this
circular. .

(a) Releaseon full time basisto a Project

Releasedfrom the publicservice,the'provincialpublicserviceincludinglocal authorities,public

corporationsand statutoryboardsfor not morethanfive (5) years,duringthe periodof servicein
PublicService.
Or
(b)Onno-pay
leave .

'No-payleave'for a total periodnot exceedingfive yearscould be grantedas per Public

AdministrationCircularNo.13/99dated11th June1999.Therequirementto serveanyobligatory
periodof serviceisnotapplicable
forsuchofficers.
Or

(c) Releaseon parttime basis/coveringup duties

Officerswhileworkingin their substantivepostmay be releasedon a part time basisto coverup
dutiesin a Project.

3.2 Anofficermayservein projectsduringhisperiodof servicefor a maximumperiodof fiveyears

undertheprovisions
of both3.1(a)& 3,1(b)above.

4 SalariesandBenefits
4.1 Salariesand Benefitsof OfficersRecruitedfrom the PublicService/provincial
public
service/Public
CorporationsandStatutory
boards

4.1.1Remunerationof the Officersreleasedfromthe PublicService/ ProvincialPublicService/ Public

CorporationsandStatutoryBoardsto a Projecton fulltimebasisunderParagraph3.1 (a) shallbe
the salaryof the officer'ssubstantivepost plus an allowanceof 50%of the salaryof his current
postin the project,notexceedingthe salariesgivenin 4.2.1.

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4.1.2 Remunerationof the Public Officers appointedto a Projectunder Paragraph3.1(b) shall be
decidedon the criteriagivenin Para4.2 of this Circular.

/; 4.1.3Foranyprojects,theactivitiesof whichcanbecarriedoutby deployingtheexistingstaffof the

executing/ implementingagenciesonpart-timebasisor oncoveringupbasis,theymaybepaid
with 1/3of thesalaryof hiscurrentpostin theproject.Anysuchofficermayworkonlyin two
projectsat a giventime.However,a qualifiedprojectdirectormayberecruitedfromoutsidefor
suchprojects.

4.2 Remunerationof PMU Staff Recruitedfrom Outsidethe PublicService/provincialpublic

service/PublicCorporations/Statutoryboardsandofficerson No payleave.

4.2.1 Remunerationof theseniorstaffshallbe as indicatedin thefollowingtable.

FixedSalarvfor a Month(Rs.;
Level Position AboveUS$5 AboveUS$10 US$30Millionand
million& lessthan million&lessthan aboveor
US$10millionor US$30million equivalent
equivalent orequivalent
A ProjectDirector 65,000-80,000 85,000-100,000 110,000-125,000

B 55,000-70,000 75,000-90,000 95,000-110,000

c 45,000-60,000 65,000-75,000 75,000-85,000

D 25,000-30,000 30,000-35,000 35,000-40,000

4.2.2All the projectstaffshouldbe placedat the initialstepof the givensalaryrangeuponrecruitment

& based on performancethe salary may be increasedwithin the given range. The respective
appointingauthorityshallbe responsiblefor suchincreaseof salary.

4.2.3SalariesofSupportStaffRecruited
OutsidethePublicService

Salariesof supportstaff, recruitedfrom outsidethe publicservice,shouldbe basedon the initial

stepof salaryscalesat the recruitmentlevelof similarpostsin the PublicService.

4.2.4.SalariesoftheProiectStaffofOn-GoinaProiects

Placementof the incumbentofficers in the new Salary Scale shall be done on the basis of
performance& the periodservedby each personas statedbelow.A renewedcontractshall be
signedfor the balanceperiodof theexistingagreement.
1stYear - At the initialpointof thegivensalaryrange
2ndYear-At the mid-pointof thegivensalaryrangeworkedoutto the nearestRs 100
3 rd Year-Atthemaximum
pointofthegivensalaryrange

4.2.5.PaymentofIncomeTax
ChapterXVof InlandRevenueActNo 10of 2006,Section132,willqpplyfor paymentof income
taxbyemployees whoareattachedto projectsdefinedunder.
thiscircular.

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4.3 Emplovees'and Emplovers'Contribution

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4.3.1 The Projectstaff recruitedfrom outsidethe publicservicelthe provincialpublicserviceincluding
local authoritiesand staff recruited in terms of paragraph3.1 (b) should contribute to the
Employees'ProvidentFund (EPF). The employers'contributionto the EPF and ETFshall be in
termsof the relevantstatutes.

4.3.2TheProjectstaffrecruitedfromthe PublicService1theprovincialpublicserviceincludinglocal
authorities,in termsof Paragraph3.1(a) & (c) shouldcontinueto makehis or her W&OP
Contribution.

4.3.3Employershouldpay25%of the consolidatedsalaryof the substantivepostto the Departmentof

pensionsas contributionto pensionof PublicOfficersreleasedto a ProjectunderPara3.1 (a).

4.3.4The other authorizedrecoveriessuch as loansand advancesshall be recoveredat the

appropriateinstallments
1 ratesandremittedto the relevantfundto whichthe recoveriesare
usuallyremitted.

5.OtherBenefitstoProiectStaff

5.1 (a)Theactualcostof accommodation maybe reimbursedwhenmembersof seniorprojectstaff

have to accompanyofficialsof foreignfinancingagenciesfor field visits subjectto prior
concurrence
oftheappointingauthority.

(b) The rateof subsistencepaidfor otherprojectstaffshouldbe parallelto the ratesapplicableto

publicservice.

5.2 TheProjectDirectorsarepermittedtousea vehicleandtheyareentitleda monthlyfuelallocation

of 120litersor maximumRs9,6001= for petrolvehiclesor 145litersor maximumRs7,2501=for
dieselvehicles,asin thecaseof Headsof Departments.

5.3 Additionalfuel requirementfor projectvisitsshouldbe approvedby the Headof the Implementing

Agency.

5.4 Staff of projectrecruitedfrom the publicservice& provincialpublicserviceincludinglocal

authorities
thepubliccorporations& statutoryboardsin termsof paragraph
3.1(a)& (b)andstaff
recruitedoutsidethepublicservicearenotentitledto leaveencashment, medicalencashment,
bonusor anyotherincentiveschemesthatarein practiceattheirpreviousplacesofwork.

6.Leave
6.1 Leavefor staff recruitedfromthe publicservice,provincialpublicserviceincludinglocalauthorities,
publiccorporations& statutoryboardsin termsof paragraph3.1(a) & 3.1(b) andstaffrecruitedfrom
outsidethe publicservice,shouldbe basedon provisionlaiddownin ShopsandOfficeAct.

7. Disciplinary
ControlandRecovery ofLosses
7.1 Disciplinary
authorityforprojectstaffshallbetheirrespective
,appointing
authority.
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8.Trainin~(applicable
onlytoproiectsassisted
throu~hforei~nfinanc!!lg}
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8.1 Projectstaffis allowedfor oneshort-term trainingof whichdurationis lessthanonemonth.The
// ProjectDirectormayrecommend thistrainingongroundsthatit is necessary tocarryoutdutiesat
PMU.Howeverbudgetaryprovisionshouldbeincludedandavailableforsuchtrainingwithinthe
( projectcost.

9. Performance
Appraisal

9.1 All membersof the projectmanagementstaffshallbe subjectedto annualperformanceappraisal.

The AppointingAuthorityshall be responsiblefor the conductof performanceappraisal.In the
case of projectsassistedthroughforeignfinancing,the criteriafor annualperformanceappraisal
maybe developedin consultationwiththe ForeignFinancingAgency.

10Recruitment
ofConsultants
forProiects
AssistedByForei~nFinancin~A~encies

10.1ThisCircularwillnotgoverntheprocedureforrecruitment
ofconsultants
fortheimplementation
of
projectsassistedby ForeignFinancingAgencies.Theprocedure for recruitment
of consultants
shallbe in accordance withtheconditionsof the Loan/Grant
Agreementof theprojectandlor
procurement guidelines.

11.Allowances
forSteerin~Committee
Members

11.1The paymentof allowancesfor participation

in the meetingof the steeringCommitteeto the
membersofthecommittee shallbe-asfollows.

ProjectValue AboveUS$5 million& less AboveUS$10million& US$30Millionandabove

than10millionor lessthanUS$30million or
equivalent orequivalent equivalent
Paymenton Rs1000/= Rs1500/= Rs2000/=
Participation

11.2Onlyone meetingshouldbe heldper monthandthe membersof the projectstaff are not entitled
to this payment.

12.General
12.1Anyothermattersrelatingto salariesandcadreof projectsnotcoveredbytheprovisionsof this
circularshallbereferredto Department
of ManagementServicesfora ruling.

12.2It shallbe notedthattheSecretaryto thelineministryastheChiefAccountingOfficer,bearsthe

overallresponsibility
forthetimelyandsuccessfulimplementation
of theprojectsfallingwithinthe
purviewof theministryandassuchtheProjectDirectorI Headof theprojectshallberesponsible
to theSecretaryto thelineministryandtheprojectstaffshallbe responsible
to him/herthrough
theProjectDirectorI Headoftheproject.

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12.3TheProjectDirectorI Headof the projectshallbemadeliableto besurcharged for anycos
// timeoverrunof projectsunlessit is established
thatsuchoverrunis dueto reasonsbeyondI
controlof him.Anypossibledelaysin the implementations shouldbe broughtto the notice

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Ministryof Finance& PlanningthroughtherelevantSecretary,in writing. In thecaseof til
overrunthe surchargeshallbe 5% of the salaryof the projectstaffduringfirst 12 month
overrun,10%of thesalaryduringtheperiodbetween13thto 24thmonthsand25%of thesal
for anytimeoverrungreaterthan24months.Thesurchargein respectofcostoverrunhasto
determinedby the Secretaryto the line Ministryin consultationwith the projectstee
committee.

14. The ManagementServicesCircularNo. 10dated26.12.2000is herebyrepealed.

15. Guidelines whichiscoveringtheotheraspectsof projectactivities'

onProjectManagement,
be issuedin due courseby the Ministryof Finance& Planning.

16. Thiscircularwillbeeffectivefrom01.01.2007.

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P.B. yasundera
Secretary
.
<

totheTreasury

Copies:AuditorGeneral
Secretaryto the President
Chainman,NationalSalaries& CadreCommission
Secretary,PublicServiceCommission
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,\NNEXURE I
{
Basic Qualifications for the Positions at Each Level
Post Project Value above US$ 5
million & less than US$ ]0
million
Project Bachelors Degree in the
Director field of Engineering
Science, Law, Economics,
[Level A] Commerce, Agriculture,
Business Administration /
Management, Accounting or
any other relevant field
With
Minimum of 10 years
experience of which 3 years
should be in Senior
Managerial level.
Or
Bachelor's Degree
And
a Postgraduate Qualification
(Masters/Diploma) in the
relevant field or Corporate
Membership of a recognized
professional institution in
the relevant field
With
Minimum of8 years post
qualification experience in
the Managerial level.
Project Value above US$ 10
million & less than US$30
million
Bachelors Degree in the
field of Engineering
Science, Law, Economics,
Commerce, Agriculture,
Business Administration /
Management, Accounting or
any other relevant field
With
Minimum of ]2 years
experience of which 5 years
should be in Senior
Managerial level.
Or
Bachelor's Degree
And
a Postgraduate Qualification
(Masters/Diploma) in the
relevant field or Corporate
Membership of a recognized
professional institution in
the relevant field
With
Minimum of ]0 years post
qualification experience in
the Managerial level.
Project Value US$ 30
million and above
Bachelors Degree in the
field of Engineering
Science, Law, Economics,
Commerce, Agriculture,
Business Administration /
Management, Accounting or
any other relevant field
With
Minimum of 15 years
experience of which 8 years
should be in Senior
Managerial level.
Or
Bachelor's Degree
And
a Postgraduate Qualification
(Masters/Diploma) in the
relevant field or Corporate
Membership of a recognized
professional institution in
the relevant field
With
Minimum of 12years post
qualification experience in
the Managerial level.
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Post Project Value above US$ 5
(, million & less than US$ ]0
million
Manager Charted / Corporate
I membership of recognized
[Level B) Professional Institution / Professional
post graduate qualifications
in the relevant field
And
Minimum of 5 years of post
qualification experience in
Senior Managerial level.
Or
Class I Officer of a
Government All Island
Services or similar status in
the relevant fiel<l
With
Minimum of 3 years
experience in Class I level
Deputy An officer of the
Manager Government All Island
Services Class 1111 or above Services Class 1111 or above Services Class I or similar
[LevelC] or similar status
With
Minimum of 3 years
experience in Class 1111level experience in Class 1111level experience in Class I level
in the relevant field
Or
Bachelors Degree or Part
qualification in
CIMAIACCAlICASL
And
Minimum of 10 years post
qualification experience in
the relevant field
Project Value above US$ ]0 Project Value US$ 30
million & less than US$30 million and above
million
Charted / Corporate Charted / Corporate
membership of recognized membersh ip of recogn ized I
Institution / Professional Institution /
post graduate degree in the post graduate degree in the I
relevant field relevant field
And And
Minimum of 8 years of post Minimum of 10years of
qualification experience in post qualification experience
Senior Managerial level. in Senior Managerial level.
Or Or
Class I Officer of a Class I Officer of a
Government All Island Government All Island
Services or similar status in Services or similar status in
the relevant field the relevant field
With With
Minimum of 5 years Minimum of 8 years
experience in Class I level experience in Class I level
An officer of the An officer of the
Government All Island Government All Island
or similar status status
With With
Minimum of 5 years Minimum of 8 years
in the relevant field in the relevant field
Or Or
Charted / Corporate Charted / Corporate
membership of recognized membership of recognized
Professional Institution / Professional Institution post
post graduate degree in the graduate degree in the
relevant field relevant field
And And
Minimum of 5 years of post Minimum of 8 years of post
qualification experience in qualification experience in
the relevant field. the relevant field.
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(I Post Project Value above US$ 5
million and less than 10
million
Junior A Bachelors degree or
1allagn Corporate Membership of a
recognized Institution in the
fLevel DJ relevant field
And
Minimum of2 years
experience in the required
area of specialization
Or
Certificate / Diploma of a
duration not less than 2
years in the relevant field
offered by a recognized
institution
And
Minimum 5 years post
qualification experience in
the required area of
special ization.
Project Pass in at least six(6)
Secretary subjects including three (3)
[Level DJ credits for English and
SinhalafTamillanguage
With
a secretarial course from a
recognized institution or
pursuing examinations
leading to Charted Secretary
With
Minimum of2 years
Experience
Or
A Charted Secretary with at
least I year Experience
Project Value US$ ]0
million and above but less
than 30 million
A Bachelors degree or
Corporate Membership of a
recognized Institution in the
relevant field
And
Minimum of 5 years
experience in the required
area of specialization.
Or
Certificate / Diploma of a
duration not less than 2
years in the relevant field
offered by a recognized
institution
And
Minimum 8 years post
qualification experience in
the required area of
specii:lIization.
Pass in at least six(6)
subjects including three (3)
credits for English and
Sinhala ffamillanguage
With
a secretarial course from a
recognized institution or
pursuing examinations
leading to Charted Secretary
With
Minimum of3 years
Experience
Or
A Charted Secretary with 2
years Experience
Project Value US$ 30
million and above
A Bachelors degree or
Corporate Membership of a
recognized Institution in the
relevant field
And
Minimum of 8 years
experience in the required
area of specialization.
Or
Certific?te / Diploma of a
duration not less than 2
years in the relevant field
offered by a recognized
institution
And
Minimum 12 years post
qualification experience in
the required area of
specialization.
Pass in at least six(6)
subjects including three (3)
credits for English and'
Sinhala /Tamillanguage
With
a secretarial course from a
recognized institution or
pursuing examinations
leading to Charted Secretary
With
Minimum of 5 years
Experience
Or
A Charted Secretary with 3
years Experience