2023-12-09
News Categories : Committee News
The Asia Internet Coalition (AIC), which represents key players in the internet industry and promotes the understanding and resolution of internet policy issues in the Asia-Pacific region, disclosed that the international standard for adopting VAT on software and digital service providers is based on the jurisdiction of the consumer, not the jurisdiction under which a particular business operates.
The afore stated matters were discussed when the Committee on Public Finance (COPF) took into consideration the impact of the implementation of provisions of the Value Added Tax (Amendment) Bill on domestic software and digital operators.
As an extension to a concern raised at the previous CoPF held, domestic and international software & digital service providers such as PickMe, Uber, AIC (representing Meta, Google, X, Booking.com, Amazon, etc) and Daraz were called before the Committee on Public Finance held recently (Dec. 07) Chaired by Member of Parliament Hon. (Dr.) Harsha de Silva.
It was disclosed that all such software and digital service providers are exempted from the application of VAT at present and with the Value Added Tax (Amendment) Bill coming into effect from the 1st of January 2024, all such exemptions will be removed and the applicability of such provisions will put on-shore service providers at a disadvantage as opposed to businesses that operate offshore.
The Committee was of the view that such a policy decision would discourage businesses from operating on-shore and thereby cause such businesses to move off-shore impacting government revenue and deterring new start-ups and digital service providers. Accordingly, the Committee directed the officials of the Ministry of Finance to look into the growing concern with the assistance of The Asia Internet Coalition (AIC) and to report to the Committee on a way forward on or before the 31st of December 2023.
Moreover, the Committee also took into consideration five Orders and a Resolution. Accordingly, the Resolution under Section 10 of the Customs Ordinance published in the Gazette Extra Ordinary No. 2347/06, and five Orders under the Special Commodity Levy Act, No. 48 of 2007 published under the Gazette Extra Ordinary Nos. 2345/64, 2346/16, 2348/44 and 2353/77 were taken up for discussion and approved by the Committee on Public Finance.
The Committee was of the view that the Ministry of Finance must have an in-depth analysis carried out with the assistance of all relevant institutions before making policy decisions related to the increase and decrease of taxes that impact vital essentials such as wheat and green gram.
Furthermore, the Committee also took into consideration the Regulations under the Colombo Port City Economic Commissions Act, No. 11 of 2021 pertaining to the Down – Town Duty Free intended to be established at the Port City Colombo.
Accordingly, the downtown duty-Free mall targets 70% of tourist consumers mainly from China and India, and will consist of premium luxury brands with 25 product categories including global brands.
Upon careful consideration by the Committee on Public Finance, it was observed that certain provisions stating which items can be imported under the Regulation are in the form of rules that are not legally binding. Therefore, the Committee believes that the Regulation needs to be revisited to avoid any gaps that may arise and prevent people from exploiting it. Accordingly, the members of the Colombo Port City Commission were instructed to rectify the discussed issues and present the revised version to the Committee.
State Minister Hon. (Dr.) (Mrs.) Seetha Arambepola and Members of Parliament Hon. Chandima Weerakkody, Hon. Mahindananda Aluthgamage, Hon. Wajira Abeywardana, Hon. Nimal Lanza, Hon. Premnath C. Dolawatte, Hon. Madhura Withanage were present at the Committee meeting held.
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
Hon. Speaker, (Dr.) Jagath Wickramaratne emphasized that in order to make the legislative process more effective, it is essential that Parliamentary Committees are equipped with the necessary knowledge and tools while safeguarding the principles of good governance.The Hon. Speaker made these remarks at the opening session of a two-day conference held on the 22nd and 23rd, aimed at raising awareness among Members of Parliament serving in Sectoral Oversight Committees on the existing procedures and methods related to the legislative process.The orientation for the members of the Sectoral Oversight Committee was organized by the Parliament of Sri Lanka in collaboration with the Max Planck Foundation for International Peace and the Rule of Law, and was held in Parliament under the patronage of the Hon. Speaker.Expressing his views at the event, Hon. Speaker, (Dr.) Jagath Wickramaratne stated that the experiences gained through this conference would enable Hon. Members of Parliament to carry out the functions of Sectoral Oversight Committees more successfully. He extended his gratitude to the Max Planck Foundation for their continued cooperation in strengthening democratic institutions in Sri Lanka and pointed out that their commitment to promoting the rule of law and good governance has contributed to enhancing the capacity of the Sri Lankan Parliament.The conference featured contributions from Professor Enrico Albanesi of the University of Genoa, Praveen Chacko Ninan, Research Fellow at the Max Planck Foundation, and Legal Advisor Methmini Wijesinghe of the same foundation.Delivering the keynote address, Praveen Chacko Ninan discussed the technical methods applicable to legislative activities and briefed the Members of Parliament on how to analyze and review draft bills. He also introduced practical technical methodologies and standards for evaluating draft legislation.Furthermore, Professor Enrico Albanesi elaborated on how draft legislation should be reviewed in accordance with the rule of law. He educated the Members on relevant legal norms, various guidelines, and fundamental principles applicable to such evaluations.Among those present at the event were Hon. Chief Opposition Whip Gayantha Karunathilleka, Hon. Members of Parliament, Chief of Staff and Deputy Secretary-General of Parliament Chaminda Kularatne, Director Legislative Servises / Director Communication (Acting) M. Jayalath Perera, along with officials representing the Offices of the Leader of the House, the Chief Government Whip, and the Leader of the Opposition.
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