2023-06-19
News Categories : Committee News
Select Committee on Ease of Doing Business Index stated that steps should be taken urgently as there is still no formal mechanism to regulate the business activities conducted via the internet, and to regulate payments of taxes from the companies involved in such businesses.
The above was taken into discussion at the Select Committee of Parliament to study the practical problems and difficulties that have arisen in relation to enhancing the rank in the Ease of Doing Business Index in Sri Lanka and make its proposals and recommendations held recently (June 13) under the Chairmanship of Hon. Madhura Withanage.
There was a wide discussion about an economy known as the gig economy, where a group of freelancers who work freely in the labor market are engaged in various economic activities, apart from the traditional labor services that exist between the employer and the employee.
It was revealed that some foreign companies doing business online are taking large amounts of money to bank accounts abroad without paying taxes. Accordingly, the need to create a common business environment for local companies and international companies engaged in business activities centered on the Internet was emphasized here.
Heads of commercial banks, representatives of local and foreign companies doing business via Internet, representatives of credit card companies, central bank representatives and others participated in this committee meeting.
As the Gig Economy is growing rapidly along with the current technological development, the need to encourage business activities conducted via the Internet was pointed out. It was also suggested that a legal framework to regulate these businesses as well as a digital service tax should be introduced.
It was also discussed that it is necessary to create an environment to attract more companies involved in internet business to the country.
According to the declaration of the two-pillar solution to solve the tax challenges arising from economic digitization (G20 /OECD), out of the 140 member countries, only four countries, namely Sri Lanka, Pakistan, Kenya and Nigeria, have not signed the Global Corporate Tax Agreement.
At the same time, the Committee Chair also pointed out the need to promote digital transactions instead of currency notes and coins. The Chair advised the Committee to submit a report on the plan prepared by the Central Bank to promote digital transactions, which cost 3.2 billion annually for printing and issuing currency notes.
Members of Parliament Hon. Anura Priyadarshana Yapa, Hon. Mohomad Muzammil, Hon. Sanjeeva Edirimanna and Hon. Lalith Varna Kumara were present on this occasion.
Senior officials representing the Central Bank, Attorney General's Department, Ministry of Labor and Foreign Employment, Ministry of Finance, Ministry of Industry, Department of Inland Revenue participated and Registrar General of Companies Registration, Central Bank, Commercial Bank, Sampath Bank, HNB Bank, NDB Bank, Chairman, Chief Executive Officers and Senior Managers representing the Bank of Ceylon participated.
Furthermore, CEOs and directors of Lanka Pay, Pick Me, Uber, Master, Visa, Daraz, representing online service providers in Sri Lanka participated and presented their views to the Committee. The Registrar General of Companies present at the Committee stated that registration cannot be forced or mandated unless specified by law and the Company Registration Department acts as an agency to file information. Furthermore, registration of individual and joint ventures is done by the Regional Secretariat and another section of businesses are licensed by the local authorities.
Mrs. Viveka Siriwardena, Deputy Solicitor General of the Government stated that investment and providing goods and services through online technology are two separate things. It was also revealed that local companies that provide goods and services through online technology in Sri Lanka pay taxes to the government and some foreign companies engaged in the same business do not pay taxes to the government properly.
2025-06-02
The Glocal Fair program was initiated before receiving cabinet approval, and the cabinet paper was submitted for cabinet approval during the program. The Sri Lanka Bureau of Foreign Employment has not yet received the Rs. 100 million because the Rataviru Housing Loan Program, jointly implemented with the Samurdhi Authority in 2013, resulted in the non-implementation of the Memorandum of Understanding signed. The Sri Lanka Bureau of Foreign Employment has removed itself from regulatory duties – COPE It was disclosed at the Committee on Public Enterprises (COPE) that the Sri Lanka Bureau of Foreign Employment has spent more than Rs. 1 billion on two programs that were not included in the annual action plan for 2024 and were implemented without any plan. Accordingly, more than Rs. 63 million has been spent on the 'Vigamanika Harasara' program, aimed at organizing three provincial-level meetings with the participation of 5000 members of migrant associations, initiated by the Ministry of Labour and Foreign Employment in 2024. In addition, more than Rs. 1259 million has been spent on the 'Glocal Fair' program, held across the island with the intention of making services provided by all institutions affiliated with the Ministry of Foreign Employment available to beneficiaries at their places of residence. These matters were disclosed at the COPE meeting held on the May 23rd under the chairmanship of (Dr.) Nishantha Samaraweera, Member of Parliament, which met at Parliament to examine the audit reports for the financial years 2022 and 2023 of the Sri Lanka Bureau of Foreign Employment and its current performance. At this meeting, the Chair of the Committee stated that the Glocal Fair program had been initiated prior to receiving Cabinet approval and that the relevant Cabinet memorandum had been submitted for approval while the program was being implemented. He also pointed out that only Rs. 2 million is allocated annually for such programs, raising questions as to whether spending as much as Rs. 1259 million had actually achieved its intended objectives. He questioned the officials on this matter. Further, the Committee inquired into the purchase of a trade stall for Rs. 170,000 during the initial phase of the Glocal Fair program and the subsequent acquisition of a trade stall at a cost of Rs. 500,000. The Chairman of the Committee emphasized that significant funds allocated for productive programs have instead been wasted on unplanned and purposeless programs. Moreover, it was revealed during the Committee that the 'Rataviruwo' housing loan program implemented in collaboration with the Sri Lanka Samurdhi Authority in 2013 had not been carried out in accordance with the five-year Memorandum of Understanding signed, and as a result, Rs. 100 million due to the Bureau has not yet been received. However, officials informed the Committee that the Sri Lanka Samurdhi Authority has now agreed to release the amount. The Committee questioned the number of beneficiaries who received housing loans under this program, but the officials responded that they do not possess such data. Accordingly, the Committee Chairman stated that no follow-up has been conducted on this program and instructed the officials to submit a comprehensive report covering the full timeline of the 'Rataviruwo' housing loan program from inception to date. It was also pointed out by Hon. Members of Parliament participating in the Committee that the Sri Lanka Bureau of Foreign Employment has acted beyond its regulatory mandate. The Committee emphasized the urgent need to devise a plan to utilize the Bureau’s current fixed deposits amounting to Rs. 18 billion more effectively. Furthermore, the Committee inquired about actions taken concerning the inactive Kuwait Compensation Fund, which had a balance of Rs. 5.1 billion as of December 31, 2023. Officials informed the Committee that plans have been made to use this fund to provide necessary training for domestic workers going abroad and to establish a pension scheme for migrant workers. The Committee also discussed financial fraud committed by employment agencies that have charged unjustified fees from migrant workers. It was clarified during the Committee that every migrant worker traveling independently must be registered with the Sri Lanka Bureau of Foreign Employment and pay a registration fee to the Bureau. Similarly, even when employment agencies facilitate foreign employment, the workers must pay the registration fee to the Bureau, of which 70% is refunded to the respective agencies. However, due to fraudulent activities where independently migrating workers are falsely recorded as agency-facilitated workers, the Committee Chairman decided to appoint a sub-committee to investigate the related financial fraud. Hon. Members of Parliament Anuradha Jayaratne, Attorney at Law, Mujibur Rahman, M.K.M. Aslam, (Mrs.) Nilanthi Kottahachchi, Attorney at Law, Samanmali Gunasingha, Mayilvaganam Jegatheeswaran, (Dr.) S. Sri Bavanandaraja, Sujeewa Dissanayake, Jagath Manuwarna, Ruwan Mapalagama, Sunil Rajapaksha, Darmapriya Wijesinghe, Asitha Niroshana Egoda Vithana, (Dr.) Pathmanathan Sathiyalingam, Thilina Samarakoon, Chandima Hettiarachchi, Dinesh Hemantha, and Lakmali Hemachandra, Attorney at Law were present at the Committee meeting held.
2025-05-28
Hon. Member of Parliament Ajith P Perera was elected as the Chairman of the Sectoral Oversight Committee on Infrastructure and Strategic Development. The election was held during the inaugural meeting of the Committee for the Tenth Parliament, convened yesterday (May 27) at the Parliament complex. In line with a prior agreement between the ruling party and the opposition, the chairmanship of this particular Sectoral Oversight Committee was to be offered to a member of the opposition. Accordingly, the name of Hon. MP Ajith P Perera was proposed for the chairmanship by Hon. MP Nalin Bandara Jayamaha and seconded by Hon. MP Jagath Vithana. Subsequently, the National Transport Commission (Amendment) Bill, which is scheduled to be debated for the second reading in Parliament on 5th of June, was discussed here and officials from several relevant institutions including the Ministry of Transport, Highways, Ports and Civil Aviation were present. The officials said that this amendment bill was presented by including provisions to solve the practical issues that the Transport Commission had been facing for a long time and the bill was approved by the committee. The basic issues regarding the fundamental changes that should be made in the transport sector were also discussed here. Hon. Members of Parliament Manjula Suraweera Arachchi, Danushka Ranganath, Asitha Niroshana Egoda Vithana and Shantha Pathma Kumara Subasingha were also present in this committee meeting.
2025-05-27
(Dr.) Janaka Senarathna, Hon. Member of Parliament representing the National People's Power, was elected as the Chair of the Sectoral Oversight Committee on Science, Technology and Digital Transformation. Hon. Member of Parliament was elected today (May 27), during the inaugural meeting of the said Sectoral Oversight Committee of the Tenth Parliament, held in Parliament. Among the 7 Sectoral Oversight Committees established for the Tenth Parliament, this Committee is one of the 4 for which the Chair is elected from the governing party. The name of (Dr.) Janaka Senarathna was proposed for the position of Chair by Chathuranga Abeysinghe, Hon. Deputy Minister of Industry and Entrepreneurship Development, and was seconded by Hasara Liyanage, Attorney at Law, Hon Member of Parliament. Furthermore, during this Committee meeting, the Personal Data Protection (Amendment) Bill, scheduled for its Second Reading on 2025.06.03, was reviewed and approved. Accordingly, the debate for the Second Reading of the Personal Data Protection (Amendment) Bill is scheduled to be held on Tuesday, June 03rd. Chathuranga Abeysinghe, Hon. Deputy Minister of Industry and Entrepreneurship Development, and Hon. Members of Parliament Lasith Bhashana Gamage, Hasara Liyanage, Attorney at Law, and Chandima Hettiarachchi were present at this Committee meeting held as members of the Sectoral Oversight Committee on Science, Technology and Digital Transformation.
2025-05-26
A meeting of the Parliamentary House Committee was held on 23rd May 2025 under the patronage of the Chairman of the Committee, Hon. Speaker Dr. Jagath Wickramaratne, to review the decision taken at the meeting of the Parliamentary House Committee held on 21st May 2025 to revise the rates charged for meals for the Executive Grade Officers and Non-Executive Staff Members of Parliament.During the Committee meeting, it was decided to revise the prices of meals for the Parliamentary Staff as follows with effect from 01.06.2025. Accordingly, it was decided to charge Rs. 4000 per month for an Executive Grade Officer and Rs. 2500 per month for a Non-Executive Staff Member.The Committee further decided that the current rates charged for meals purchased from the Parliament Staff Cafeteria by the drivers of Hon. Members, Police Officers, President/Prime Minister Security Officials and journalists should remain unchanged.The revision of these rates is a decision taken once every three years on the request of the Parliament Staff based on the recommendations made by the Ministry of Finance regarding the cost of meals provided to the Parliament Staff.This House Committee is a committee consisting of Members of Parliament from the ruling party and the opposition.
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