The election Commission was due to meet secretaries of political parties at 10.00 am (23) to decide if local government polls could be held on April 25 as scheduled.
The EC was informed some days ago by the Government Press that it could not finish printing postal ballot papers without adequate funds.
This means postal voting cannot take place from the due date of March 28, and holding the election itself is unlikely.
Meanwhile, local government state minister Janaka Wakkumbura said the government had no need to act outside the law with regard to LG bodies.
He is responding to claims about attempts to appoint former heads of LG bodies as their competent authorities.