Establishment of National Secretariat of Non-Governmental Organizations
Proliferation of NGOs
Along with the growth of the liberal economy in the late 1970s, there was a loosening of foreign exchange regulations, trade and travel restrictions, and a large increase in the number of foreign non-governmental organizations. With the influx of foreign aid and the expansion of community and rural development, there was a further proliferation of non-governmental organizations in the country. Because NGOs were expected to play a major role on behalf of the government and because of their altruistic nature, the existence and functioning of these organizations were accepted by the government.
There were no specific laws and regulations governing the activities of non-governmental organizations in Sri Lanka before. But in 1980, the government enacted the Voluntary Social Service Organizations (Registration and Monitoring) Act, which introduced a system of registration and monitoring of the activities of NGOs. However, this Act was not strictly enforced, and the registration of NGOs was not done properly. As a result, the public and some NGOs themselves raised their voice about the misuse of flexibility and autonomy of their organizations and the misuse of funds. In fact, there have been cases of complaints against some NGOs by their employees and other agencies.