2022-07-07
News Categories : Committee News
COPE chaired by Hon. (Prof) Charitha Herath recommended that an investigation be conducted through the Auditor General's Department on the cancellation of the Term Tender, which had been approved by the Cabinet to buy gas from Siam Gas at USD 96 per metric ton and opting to buy 100,000 MT of gas at a cost of USD 129 per metric ton from an Oman company.
This recommendation was given recently (05) when Litro Gas Lanka Ltd, Litro Gas Terminal Lanka (Private) Limited and Sri Lanka Insurance Corporation were summoned before COPE to implement the orders given by the previous Committee on Public Enterprises and to discuss the current performance.
It was disclosed that since the Term tender for the purchase of gas ended last February, tenders were invited for 2,80,000 MT of gas and three gas suppliers have submitted bids accordingly. Siam gas Company has submitted the lowest price as USD 96 per metric ton and accordingly the Cabinet has approved to award the tender.
The Litro officials disclosed that gas could not be obtained from Siam gas Company due to the economic crisis as banks in Sri Lanka were unable to submit the Standby Letter of Credit (SBLC) to Litro as per the conditions announced during the bidding process.
They further said that despite discussions with the concerned company in this regard, the company expressed its unwillingness to supply gas without a Standby Letter of Credit (SBLC) as per the conditions presented during the tender invitation.
Due to this delay, as a temporary solution, Siam gas Company itself has negotiated to obtain 15,000 MT of gas as emergency purchases, which is the gross amount of gas required for two weeks, but it has been informed that they can supply only 6600 MT and thus was unsuccessful.
Litro officials also said that the Oman company, which had sent prices at USD 129 per metric ton for the Term Tender, agreed to provide 100,000 MT of gas for 4 months at 25,000 MT per month.
Accordingly, after notifying the above facts to the cabinet, it was revealed that the term tender given to Siam gas Company was canceled and the cabinet approval was received for the term tender to purchase 100,000 MT of gas from the Omani company. A USD 70 million loan from the World Bank and 20 million of Litro Gas Lanka Ltd amounting to USD 90 million in total was used for this procurement, Mr. Muditha Peiris, Chairman of Litro Lanka said.
The COPE chair instructed the Auditor General's Department to conduct a formal investigation and report whether the loan amount of USD 70 million from the World Bank was effectively used, and added that although the need for gas is a necessary emergency, buying from the Omani company at a higher price instead of the lowest bidder, Siam, may set a bad precedent in the future.
The committee also focused on the inability to purchase gas with the amount of USD 160 million allocated for the purchase of gas under the Indian Credit Line. The Litro chairman said that according to the conditions of the Indian government, it is a problem to buy gas that is not produced in the country. It was also revealed that several rounds of discussions have been held regarding this. The COPE Chairman recommended to the Secretary to the Ministry of Finance to look into this immediately and report within two weeks.
Attention was also drawn to the fact that the number of currently appointed members of Litro's board of directors is only 4. It was revealed that according to the legal status, there should be 5 members. Furthermore, since the Ministry of Finance appoints the members of the Board of Directors, COPE pointed out the need to appoint the Board of Directors to consist of representatives of the parent company. The COPE Chairman recommended the Secretary to the Ministry of Finance to take necessary measures on this regard.
It was also discussed about holding both the positions of the company's Chairman and Chief Executive Officer by the same person. Even if the position of the company's chairman changes, the presence of a permanent chief executive officer position is essential for the good survival of the company, so the committee emphasized the importance of working towards it as soon as possible. Furthermore, Litro Chairman said that the Board of Directors has already taken a decision to deal with this situation as soon as this crisis is resolved. The committee recommended to take necessary steps and submit a report on this regard.
Litro Company's ability to obtain financial support from Sri Lanka Insurance Corporation, the parent company of the Litro Company was also looked into. The Chairman of the Sri Lanka Insurance Corporation, Mr. Vijitha Herath, said that the company was able to purchase gas in the past due to the deposit of nearly 5 billion rupees in a state bank.
Representing the Secretary of the Ministry of Finance, Mr.Saman Fernando. Deputy Secretary to the Treasury, Chairman of the Sri Lanka Insurance Corporation and former Litro Chairman Mr. Vijitha Herath, Litro Chairman Mr. Muditha Peiris were present at this meeting whilst Mr. Thesara Jayawardane, former chairman of Litro Company, joined online.
Parliamentarians Hon. Patali Champika Ranawaka, Hon. Mahindananda Aluthgamage, Hon. Anura Dissanayaka, Hon. (Dr.) Harsha de Silva, Hon. (Dr.) Sarath Weerasekera, Hon. Jagath Pushpakumara, Hon. Indika Anuruddha, Hon. S.M Marikkar, Hon. Jayantha Samaraweera, Hon. (Dr.) Nalaka Godahewa, Hon. Premnath C. Dolawatte and Hon. Madhura Withanage were present at the meeting held.
2025-10-29
A discussion aimed at sharing agricultural development experiences and expanding future cooperation opportunities between the Ministerial Consultative Committee on Agriculture, Livestock, Land and Irrigation and a Chinese delegation led by Yan Yalin, Vice Chairman of the Standing Committee of the People’s Congress of Yunnan Province, was held recently (Oct. 24) at the Parliament premises. The meeting was chaired by Hon. Deputy Minister of Agriculture and Livestock Namal Karunaratne, during which discussions focused on strengthening cooperation between the two countries in the fields of tea, coffee, and tobacco cultivation. Expressing his views at the discussion, Hon. Deputy Minister Namal Karunaratne stated that preliminary discussions had already been conducted at the ministerial level and that this meeting aimed to facilitate in-depth dialogue between the delegation and Members of Parliament on these sectors. Appreciating the continuous support extended by China to Sri Lanka’s development process over the years, the Hon. Deputy Minister also emphasized the longstanding friendship between Sri Lanka and China. He further noted that such interactions would contribute to strengthening bilateral cooperation and to the modernization and expansion of Sri Lanka’s agricultural sector. Both parties exchanged views regarding the development of the tea, coffee, and tobacco industries, with particular focus on the application of modern technological innovations. The need to utilize advanced technology to address challenges arising from the declining labor force and to improve the productivity of tea cultivation was also discussed. The Chinese delegation proposed the use of fourth-generation fertilizers as suitable for improving soil fertility and enhancing crop yields. Attention was also drawn to coffee cultivation, where it was noted that Sri Lanka’s coffee industry had demonstrated notable progress over the past decade. The need to expand the allocation of land for coffee cultivation was discussed as well. Officials indicated that currently over 5,000 hectares are under coffee cultivation and that plans are underway to expand it to 10,000 hectares within the next two years. Furthermore, discussions were held regarding Sri Lanka’s tobacco industry, where it was pointed out that exporting value-added finished products to the market instead of raw materials would enable Sri Lanka to gain better access to international markets. It was also highlighted that the tobacco industry in Sri Lanka still operates on a small-scale basis, and the Chinese delegation stressed the importance of developing it into a large-scale, factory-centered industry. Hon. Members of Parliament of the Ministerial Consultative Committee and other Hon. Members, Chinese representatives, and officials from Parliament and the Ministry participated in this meeting.
2025-10-29
The Committee on Public Accounts (COPA) questioned the North Western Provincial Council over its decision to adopt a “Design and Build Procurement Process” for a six-storey office complex, resulting in a higher financial burden on the Council, despite no feasibility study report having been obtained Although the North Western Provincial Council, together with the Kurunegala Municipal Council, had called for tenders and entered into an agreement with a contractor for the construction of the six-storey office building, it was disclosed before COPA that the construction work has now been suspended due to an ongoing supervisory inquiry. It was also disclosed that a feasibility study report, which is a prerequisite for such a project, had not been obtained. Furthermore, COPA emphasized that choosing the Design and Build Procurement Process which shifts the entire design and construction responsibility to the contractor, for a standard six-storey office building (not of a special nature) was problematic, as it imposed an unnecessary financial burden on the Provincial Council. These matters were discussed during the meeting of the Committee on Public Accounts (COPA), chaired by Hon. Kabir Hashim, Member of Parliament, held on 23.10.2025, to examine the Auditor General’s Reports for the years 2023 and 2024 and the current performance of the North Western Provincial Council. Accordingly, COPA decided to summon the respective officials for further examination of this construction project and recommended that within one month, all recommendations, procurement documents, technical committee reports, and all other related records pertaining to the project be submitted to the Auditor General. COPA also inquired into the recovery of loan funds and overdue interest provided by the Department of the Food Commissioner through the Department of Co-operative Development of the North Western Province to paddy-producing co-operative societies. It was recommended that a report including the measures taken to recover these funds, along with a timeline, be submitted to COPA within two months. Further, although the Provincial Land Commissioner’s Department had been instructed to prepare a comprehensive record on state lands, COPA observed that such records were not being properly maintained to allow identification of all state lands, details on lands given on long-term lease with or without approval, and arrears in lease rentals. COPA emphasized that officials must take action without hesitation to recover monies due to the government and assured that the Committee will extend all necessary support to ensure this. Accordingly, the Committee recommended that a report on the total amount expected to be recovered by the end of this year be submitted. It was further revealed that due to ongoing supervisory issues, approximately Rs. 85 million in tax arrears could not be recovered, and COPA directed that a detailed report on this matter also be submitted to the Committee. The meeting was attended by COPA Members including Hon. Deputy Ministers Aravinda Senaratne and Major General Aruna Jayasekara (Retd), and Hon. Members of Parliament (Dr.) Janaka Senarathna, T.K. Jayasundara, Ruwanthilaka Jayakody, Thushari Jayasinghe, Attorney-at-Law Sagarika Athauda, Attorney-at-Law and Sunil Rathnasiri.
2025-10-27
World Bank representatives have emphasized the importance of maintaining an updated and accurate data system when selecting eligible beneficiaries for the Aswesuma Social Security Programme. They further stated their readiness to provide the necessary technical support and international expertise for this purpose. These observations were made during a joint meeting held recently (Oct. 22) at Parliament, attended by Members of the Ministerial Consultative Committee on Finance, Planning and Economic Development; Members of the Sectoral Oversight Committee on Economic Development and International Relations; other Honourable Members of Parliament; representatives of the World Bank; and officials of the Ministry of Finance, Economic Stabilization and National Policies. The meeting was held with the participation of the Hon. (Dr.) Upali Pannilage, Minister of Rural Development, Social Empowerment and Welfare; and the Hon. (Ms.) Lakmali Hemachandra, Attorney-at-Law, Chairperson of the Sectoral Oversight Committee on Economic Development and International Relations. The World Bank delegation included Ms. Francesca Lamanna, Senior Economist for the Social Security Project, and Mr. Srinivas Varadan, Senior Social Security Specialist, along with several others. During the discussions, the World Bank representatives stated that establishing a comprehensive data system for social Security would enable the accurate identification of genuinely poor and vulnerable individuals and families. They noted that the mere inclusion of citizens’ information in the database would not automatically qualify them as Aswesuma beneficiaries. Instead, the data must be verified and analyzed to correctly identify those eligible for relevant benefits. They further emphasized that such a Social Security data system constitutes a productive investment for the country and, therefore, highlighted the need for continuous updating of the data system. Members of Parliament who took part in the discussion also expressed their views regarding issues encountered in distributing Aswesuma benefits. They suggested that the beneficiaries of Aswesuma be selected through local committees and that the list of selected beneficiaries be publicly displayed within the respective village to ensure transparency in the process. Officials involved in implementing the Aswesuma programme stated that certain challenges had arisen due to inadequate information provided to the implementing officers, Divisional Secretaries, and Grama Niladhari officers. However, they noted that measures are currently being taken to properly inform these officers of their respective roles and to obtain their cooperation in ensuring the successful implementation of the programme. This occasion was also attended by the Hon. Leader of the Opposition, Sajith Premadasa, Hon. Ministers, Hon. Deputy Ministers, Hon. Members of Parliament, Ms. Shalika Subasinghe – Advisor to the World Bank, and officials of the Ministry of Finance, Economic Stabilization and National Policies.
2025-10-24
The Committee on Public Finance has granted its approval for the Appropriation Bill for the year 2026. This approval was given during a committee meeting held in Parliament yesterday (Oct. 23) under the chairmanship of Hon. Member of Parliament Dr. Harsha de Silva. Officials from the Ministry of Finance, who attended the meeting, briefed the Committee on the allocation of funds for various sectors and the targets set for the year 2026. After an extensive discussion on these matters, the Committee granted its approval for the Bill. The Appropriation Bill for the year 2026 is scheduled to be presented to Parliament for the second reading (Budget Speech) by the Hon. President in his capacity as the Minister of Finance on 7th of November.
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