Article 154 of the Constitution of the Democratic Socialist Republic of Sri Lanka provides the mandate for the Auditor General to audit public sector institutions, which can be reproduced as;

The Auditor General shall audit the accounts of all Departments of Government, the Offices of the secretary to President, the Offices of the secretary to the Prime Ministers, the Offices of the Cabinet of Ministers, the Judicial Service Commission, the Constitutional Council ,the Commissions referred to in the Schedule to Article 41B ,the Parliamentary Commissioner for Administration, the Secretary General of Parliament and the Local Authorities, Public Corporations and business or other undertakings vested in the Government under any written law and companies registered under the companies registered or deemed to be registered under the Companies Act, No.7 of 2007 in which the Government or a public corporation or local authority holds fifty per centum or more of the Shares of that company including the accounts there of.