2023-11-30
News Categories : Committee News
The Committee on Public Finance took into consideration the Value Added Tax (Amendment) Bill which aims to remove VAT exemptions on certain items and includes provisions to discontinue the Simplified VAT (SVAT) system.
Official representing the Ministry of Finance stated that agricultural machinery and other equipment including chemical fertilizer which was listed as exempted previously will be VAT liable under the said Bill. Adding to the said, officials stated that agricultural seeds, agricultural plants, shrimp feed inclusive of prawn feed and animal feed excluding poultry feed will however be exempted from VAT.
Thus, the Committee questioned the rationale behind including VAT for agricultural items which will impact the domestic agricultural and food industry. The aforesaid was taken up for discussion at the Committee on Public Finance held recently (Nov. 28) in Parliament, Chaired by Hon. (Dr.) Harsha de Silva when the Committee met to consider the Value Added Tax (Amendment) Bill, The Finance Bill to amend the Finance Act, No. 35 of 2018 and the Finance Act, No. 12 of 2012 and the Imports and Exports Control Act pertaining to the Gazette No. 2353/16.
Furthermore, dairy products such as liquid milk and eggs will also be liable for the VAT. However, the Ministry of Finance stated that wheat, wheat flour or powdered milk, pharmaceutical products, drugs will be exempted. The Committee questioning the officials inquired why food products made out of grains cultivated in Sri Lanka, identified as high protein and high energy agro foods falling in the category of “Posha” is subjected to VAT in a context where Child malnourishment is considered to be on the rise.
The Committee questioned the officials as to why ambulances and medical equipment are being subjected to VAT. After thoroughly examining the Value Added Tax (Amendment) Bill, the Committee has granted approval, contingent upon the Ministry of Finance incorporating the amendments proposed by the Committee on Public Finance, provided they are in accord. Nevertheless, the Committee has urged the officials present to reevaluate VAT exemptions for medical equipment, ambulances, fertilizer, and food products derived from grains classified as high-protein agro foods and agricultural items.
The Committee of Public Finance further revealed that the elimination of VAT exemptions will not impact the fares of UBER and PickME. Dr. Harsha de Silva, the Committee Chair, emphasized that as UBER and PickME have included VAT since their inception, contrary to other beliefs, thus the proposed VAT changes will only result in a 3% rise without significantly affecting the ultimate fare that customers are required to pay.
The Committee on Public Finance also took into consideration the Finance Bill to amend the Finance Act, No. 35 of 2018 and the Finance Act, No. 12 of 2012 which propose provisions to release motor vehicles imported into Sri Lanka which were not cleared from customs due to import restrictions or non-payment of taxes. However, given the matters arising from importing and opening LCs post the suspension of motor vehicle imports by Gazette Extraordinary No. 2176/19 dated May 22, 2020, under the Import and Export Control Act, the Committee Chair instructed the Ministry of Finance to submit a report on the provisions to release 119 imported vehicles yet to be cleared from customs. The Committee thus decided to reconsider the said from thereon.
Moreover, following the consideration of the Imports and Exports Control Act pertaining to the Gazette No. 2353/16, the Committee approved the said.
State Ministers Hon. Shehan Semasinghe, Hon. (Dr.) Suren Raghavan, Members of Parliament, Hon. Patali Champika Ranawaka, Hon. Nimal Lanza, Hon. Isuru Dodangoda, Hon. Madhura Withanage, Hon. Mahindananda Aluthgamage, Hon. Wajira Abeywardana, Hon. Harshana Rajakaruna, were present at the Committee meeting held.
2025-07-28
No shortage of very essential medical items – Ministry of Health officials The Sectoral Oversight Committee on Health, Media and Women's Empowerment inquired into the medicine shortage and related matters at the Committee meeting held recently (Jul. 23), under the chairmanship of Hon. Member of Parliament (Dr.) Nihal Abeysinghe. Officials from the Ministry of Health informed the Committee that the current shortage of medicines has arisen due to delays in placing orders in previous years. However, they assured the Committee that procurement process for the year 2026 has already taken commenced, and there will be no shortage in 2026. They further stated that by the end of this year, 80% to 90% of essential medicine items are expected to be available in the country. In response to an inquiry made by the Committee regarding the availability of very essential medical items, the Ministry officials confirmed that there is no shortage of such items at present. Furthermore, the Committee also considered and approved the Annual Reports for the years 2022 and 2023 of the State Pharmaceuticals Corporation of Sri Lanka, the National Medicines Regulatory Authority, the Sri Lanka Ayurvedic Drugs Corporation, and the Wijaya Kumaratunga Memorial Hospital. While reviewing these reports, the Committee raised concerns over unresolved audit queries related to these institutions. The Committee Chair recommended that an internal review mechanism be established within the Ministry to ensure timely and appropriate responses to audit observations. Hon. Deputy Minister Muneer Mulaffer, Hon. Members of Parliament (Attorney-at-Law) Dayasiri Jayasekara, Amirthanathan Adaikkalanathan, (Dr.) Ramanathan Archchuna, Samanmali Gunasingha, (Prof.) Sena Nanayakkara, (Dr.) S. Sri Bavanandarajah and Jagath Manuwarna were present at the Committee meeting. Officials representing the Ministry of Health and Mass Media, including Secretary to the Ministry Dr. Anil Jasinghe, also participated in the meeting.
2025-07-28
The recommendations of the Committee on High Posts, which met on the July 24th at Parliament approved the appointments of 5 new Ambassadors, a High Commissioner, and a Secretary to the Ministry. Accordingly, Miss. Sumadhurika Sashikala Premawardhane as the Ambassador of Sri Lanka to the Republic of Indonesia, Mrs. C.A. Chaminda Inoka Colonne as the Ambassador of Sri Lanka to the Federative Republic of Brazil, Mr. Mohamed Rizvi Hassen as the High Commissioner of Sri Lanka to the Republic of Maldives, Mr. L.R.M.N.P.G.B. Kadurugamuwa as the Ambassador of Sri Lanka to the Republic of Turkey, Mrs. Ruwanthi Delpitiya as the Ambassador of Sri Lanka to Nepal, and Mr. Marimuththu K. Pathmanaathan as the Ambassador of Sri Lanka to the Republic of South Korea have been recomended by the Committee on High Posts. Furthermore, the name of Miss. Ayesha Jinasena (PC) has also been recommended by the Committee on High Posts for the appointment as the Secretary to the Ministry of Justice and National Integration. The Committee on High Posts, chaired by Hon. (Dr.) Harini Amarasuriya, Prime Minister, comprised of the following Members of Parliament: Hon. Kumara Jayakody, Hon. (Dr.) Anil Jayantha, Hon. Harshana Nanayakkara, Attorney at Law, Hon. (Dr.) Upali Pannilage, Hon. (Mrs.) Saroja Savithri Paulraj, Hon. (Dr.) Hansaka Wijemuni, Hon. Rishad Bathiudeen, Hon. Dayasiri Jayasekara, Attorney at Law, and Hon. M. Nizam Kariapper, PC.
2025-07-28
The proposed Education Reform Plan was taken into discussion at the Sectoral Oversight Committee on Education, Manpower and Human Capital. The discussions were held when the Committee met on the Jul. 25th at Parliament, under the chairmanship of Hon. Hesha Withanage, Member of Parliament. Secretary to the Ministry of Education, Higher Education and Vocational Training, Mr. Nalaka Kaluwewa, representatives of the National Education Commission, the Director General of the National Institute of Education, along with several other senior officials of the Ministry of Education, participated in this meeting. The Ministry officials explained in detail to the Committee the steps taken to prepare the proposed Education Reform Plan and also presented the steps taken in the past in this regard. The Chair of the Committee stated that experts from relevant sectors who have been involved in reforming the education sector in the past are expected to be consulted to examine the proposed Education Reform Plan more comprehensively. He further stated that the full support of the Committee will be extended to ensure the proper implementation of the Education Reform Plan. Committee Members also emphasized the need for properly structuring the syllabus when implementing reforms in the education sector and pointed out the factors that should be considered in that regard. Meanwhile, the attention of the Sectoral Oversight Committee was also drawn to the Samurdhi (Amendment) Bill. The Committee inquired into the operations of the Samurdhi Bank, and the relevant approval was granted to present the said Bill to Parliament for the Second Reading. Hon. Members of Parliament Sunil Rajapaksha, Chanaka Madugoda, Thurairasa Ravikaran, Nilusha Lakmali Gamage, Attorney at Law, and Krishnan Kalaichelvi participated in this Committee meeting.
2025-07-28
A working Committee was appointed pertaining to the future activities of the Parliamentary Caucus on Arts and Cultural Affairs, established for the Tenth Parliament. The purpose of this working Committee is to implement the programmes expected to be carried out by the Caucus for the advancement of the arts and cultural sectors of the country and to obtain ideas and proposals from experts and scholars in the respective fields for that purpose. Hon. Members of Parliament Prof. Sena Nanayakkara, Lakshman Nipuna Arachchi, Hiruni Wijesinghe, Attorney-at-Law, Nilanthi Kottahachchi, Attorney-at-Law, Sugath Wasantha de Silva, Susantha Dodawatta, Attorney-at-Law, Ruwan Mapalagama, and Dinesh Hemantha were appointed as members of this Committee. These appointments were made during the meeting of the Parliamentary Caucus on Arts and Cultural Affairs, held recently (Jul. 22) in Parliament, under the chairmanship of Hon. Member of Parliament Jagath Manuwarna, Chair of the Caucus. At this meeting, lengthy discussions were held regarding the steps that could be taken to uplift the cultural, literary, and arts sectors of the country, to promote the development of artists and professionals engaged in those fields, and on the necessity of fostering an interest among the general public and children in art appreciation. It was also proposed by the Member MPs that programmes should be initiated to create awareness among Members of Parliament and the parliamentary staff regarding the Parliamentary Caucus on Arts and Cultural Affairs. Hon. Members of Parliament Prof. Sena Nanayakkara, Lakshman Nipuna Arachchi, Hiruni Wijesinghe, Attorney-at-Law, Nilanthi Kottahachchi, Attorney-at-Law, Sugath Wasantha de Silva, Susantha Dodawatta, Attorney-at-Law, Ruwan Mapalagama, and Dinesh Hemantha were present at this Committee meeting held.
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