2024-01-11
News Categories : Committee News
The Committee on Public Finance reconsidered the Regulations under Section 71 read with Section 52(5) of the Colombo Port City Economic Commissions Act, No. 11 of 2021. This was reconsidered at the Committee on Public Finance held recently (Jan. 09) under the Chairmanship of Hon. (Dr.) Harsha de Silva.
In the course of examining the legality of Duty-Free Rules issued by the Port City Commission for Duty-Free Malls during a prior Committee meeting, the Committee sought the opinion of the Attorney General. As a result, it was revealed that the Commission lacks the authority to establish such rules, highlighting a policy inconsistency that could lead to market distortion and potential cannibalization.
The officials from the Port City Commission, who were present, acknowledged the error and assured that the rules would be revoked by the end of this week. However, when the Committee sought clarification on the individual responsible for these erroneous decisions, considering that the Port City Commission had entered agreements with four investors based on these rules, there was a noticeable absence of accountability. The Committee expressed strong dissatisfaction during the inquiry, as no official stepped forward to take responsibility.
In light of the evident lack of clarity and accountability and the issues brought to the forefront, the Committee was of the opinion that a thorough reconsideration of the mentioned Regulation was warranted. Consequently, the Committee directed the Ministry of Investment Promotion to identify the responsible party and outline measures to prevent similar errors in the future. This action was deemed essential to safeguard against potential discouragement of future investments.
Furthermore, the Committee on Public Finance considered Gazette Extraordinary No. 2334/39, as per Section 24 of the Board of Investment (BOI) of Sri Lanka Law, No. 4 of 1978. This gazette outlines a proposal by the BOI to amend regulations, permitting non-BOI or Section 16 BOI companies to attain Section 17 approval with exemptions for specific sectors and criteria. Such amendments would expedite Foreign Direct Investments and facilitate collaborations between foreign companies and existing BOI entities, enabling them to benefit from customs duty exemptions.
After meticulous examination, the Committee approved the aforementioned Regulation to be presented to Parliament. This decision was made with confidence, as the proposed amendments maintained consistent thresholds for companies registering for Section 17, ensuring there were no discrepancies introduced.
Furthermore, a discussion ensued regarding the proposed strategy for ensuring equitable VAT treatment for both foreign and domestic providers of software and digital services. It was revealed that, as previously deliberated in the Committee meeting, the Inland Revenue Department (IRD) concurs with the idea of applying VAT to domestic and foreign software and digital service providers based on the jurisdiction of the consumer rather than the jurisdiction in which a particular business operates. However, officials from the IRD highlighted administrative challenges associated with implementing this VAT on foreign providers. Despite these challenges, the Committee on Public Finance directed the IRD to present a comprehensive plan addressing these administrative issues and ensuring the appropriate implementation of the law within one week.
State Minister Hon. (Dr.) Suren Raghavan and Members of Parliament Hon. Patali Champika Ranawaka, Hon. Chandima Weerakkody, Hon. (Dr.) Nalaka Godahewa, Hon. Nimal Lanza, Hon. Premnath C. Dolawatte, Hon. Madhura Withanage, Hon. Mayantha Dissanayake, Hon. Rauff Hakeem, Hon. M. W. D. Sahan Pradeep, Hon. (Dr.) Major Pradeep Undugoda, Hon. Isuru Dodangoda were present at the Committee meeting held.
2025-11-13
The draft report prepared in accordance with Standing Order 121(5)(i) of Parliament regarding the Appropriation Bill for the Financial Year 2026 was considered at the meeting of the Committee on Public Finance (COPF). This discussion took place recently (Nov. 11) in Parliament, under the chairmanship of Hon. Member of Parliament Dr. Harsha de Silva. The report had been prepared by the technical team of the Committee on Public Finance and presented to the Committee for consideration. According to the report, the Appropriation Bill for the Financial Year 2026 has been prepared in line with the requirements stipulated under the Public Financial Management (PFM) Act, the Public Debt Management (PDM) Act, and the International Monetary Fund (IMF) program. It further notes that revenue in 2025 exceeded expectations by Rs. 100 billion due to higher-than-expected income from vehicle import taxes, thereby providing greater ease in preparing financial plans for 2026. However, it is also expected that revenue growth in 2026 will slow down due to a decline in vehicle imports. The report is scheduled to be presented to Parliament. Subsequently, discussions were also held with representatives of civil organizations regarding the Appropriation Bill for 2026. During these discussions, the representatives presented their views on the transparency of the budget, the allocation of funds among various sectors, the issues currently identified, and their related proposals. The Chairman stated that these views and proposals will be referred to the Ministry of Finance for necessary action. Hon. Deputy Ministers Chathuranga Abeysinghe and Nishantha Jayaweera, and Hon. Members of Parliament Ravi Karunanayake, Ajith Agalakada, Attorney-at-Law Chitral Fernando, Wijesiri Basnayake, Sunil Rajapaksha, Thilina Samarakoon, and Attorney-at-Law Lakmali Hemachandra, were present at this committee meeting.
2025-11-13
Eleven performance Reports and seven Annual Reports pertaining to institutions falling under the Ministry of Defence were considered and approved by the Sectoral Oversight Committee on Governance, Justice and Civil Protection. The said Committee met in Parliament recently (Nov. 11) under the chairmanship of, Hon. Member of Parliament (Dr.) Najith Indika. Accordingly, the consideration of Annual Performance Report of the Department of Meteorology for the year 2023, consideration of Annual Performance Reports of the Sri Lanka Air Forces for the Years 2023 & 2024, consideration of Annual Performance Reports of the Sri Lanka Army for the Years 2023 & 2024, consideration of Annual Performance Reports of the Sri Lanka Navy for the Years 2023 & 2024, consideration of Annual Performance Reports of the Department of Sri Lanka Coast Guard for the Years 2023 & 2024, consideration of Performance Reports of the Department of the Civil Security for the Years 2023 &2024, consideration of Annual Reports of the General Sir John Kotelawala Defence University for the Year 2022 & 2023, consideration of Annual Report of the Defence Service Command and Staff College for the year 2023, consideration of Annual Reports of the Disaster Management Centre for the Years 2022 & 2023, consideration of Annual Report of the Ranaviru Seva Authority for the Year 2023, consideration of Annual Report of the Rakna Arakshaka Lanka Ltd for the year 2020/2021 were approved post discussions held. The Hon. Members of Parliament, Thushari Jayasinghe, Attorney at Law, Chandana Sooriyaarachchi, Anushka Thilakarathne, Attorney at Law, Major General (Rtd.) G.D. Sooriyabandara were also present in this meeting.
2025-11-13
Hon. Member of Parliament Chandana Sooriyaarachchi stated that an interim report containing the proposals and ideas formulated for establishing a proper plan and a formal institution aimed at preparing a formal salary scheme for the public service and elevating professionalism is scheduled to be submitted to the Ministerial Consultative Committee on Public Administration, Provincial Councils and Local Government on the 13th of this month. This was stated at the meeting of the Sub-Committee on Establishing a Formal Salary Scheme for the Public Service by Reviewing the Entire Public Service and Elevating Professionalism, appointed by the Ministerial Consultative Committee on Public Administration, Provincial Councils and Local Government, held on 10.11.2025 in Parliament under the chairmanship of Hon. Member of Parliament Chandana Sooriyaarachchi. Expressing his views at the meeting, the Chair stated that discussions had been held with various parties regarding the preparation of a formal salary structure and the enhancement of professionalism in the public service, and that their ideas and proposals had been obtained. He further stated that through these discussions, the committee was able to gain a comprehensive understanding of the existing issues and salary disparities within their respective services. Accordingly, the Chair further stated that the interim report, which includes the ideas and proposals aimed at preparing a more formal and scientific salary scheme for all employees engaged in the public service, as well as making the existing service constitutions, recruitment procedures, promotions, and allowances fairer with a view to enhancing professionalism, will be submitted to the Ministerial Consultative Committee on Public Administration, Provincial Councils and Local Government. Hon. Members of Parliament Ajantha Gammeddage and Geetha Herath, Attorney at Law, other officials were present at this meeting.
2025-11-13
Committee expresses dissatisfaction over inefficiency in certain institutions – instructs that when they are summoned again, officials should present a specific time-bound action plan instead of vague technical explanations. Committee emphasizes the need for efficient implementation of budget proposals to meet public expectations. The Sectoral Oversight Committee on Infrastructure and Strategic Development has reviewed the financial and physical progress of the 2025 budget proposals of four ministries. This discussion took place recently (Nov. 11th) in Parliament, under the chairmanship of Hon. Member of Parliament S.M. Marikkar. Accordingly, the Committee examined the financial and physical progress of the budget proposals for the year 2025 relating to the Ministry of Energy, the Ministry of Ports, Shipping and Civil Aviation, the Ministry of Housing, Construction and Water Supply, and the Ministry of Transport, Highways and Urban Development. Secretaries of these ministries and heads of relevant institutions were summoned to the meeting. Attention was drawn to the Kelani Valley Railway Line Project, for which Rs. 250 million had been allocated last year, yet its progress remains minimal. The Committee observed that although funds were allocated through the budget in March 2025, satisfactory progress has not been achieved, reflecting inefficiency within the Department of Railways. For the current year as well, Rs. 840 million has been allocated for the Kelani Valley Railway Line. However, the Committee noted that without a proper and efficient plan, it would be impossible to achieve the targeted progress, resulting ultimately in the public expectations not being met in due time.The Committee also reviewed the utilization of funds allocated for the Thambuttegama Railway Station Development Project under the 2025 budget and pointed out that the technical explanations provided by officials were completely unsatisfactory. Expressing regret over the continued delays in project implementation which ultimately leads to unutilized funds being returned to the Treasury, the Committee expressed its dissatisfaction. Accordingly, the Committee instructed the Department of Railways to present specific plans with timelines instead of vague technical responses. It was also decided to summon again the Department of Railways, Sri Lanka Transport Board (SLTB), and other relevant institutions to review the progress of fund utilization under the budget, and officials were directed to attend with accurate and complete data. Further attention was paid to the budget proposals of these four ministries, including highway and rural bridge renovation, procurement of new buses, renovation of Colombo apartment buildings under the Urban Development Authority, and future goals in the energy sector. The Committee also informed the officials of the Ports Authority to take steps to promptly submit the report on the possibility of making the Galle Port profitable, as previously notified. Additionally, the Chairman expressed appreciation for the performance of the National Water Supply and Drainage Board, as revealed during previous Committee sessions. Hon. Members of Parliament Nalin Bandara Jayamaha, Manjula Suraweera Arachchi, Ravindra Bandara, Jagath Vithana, Shantha Padma Kumara Subasinghe, and Attorney-at-Law Geetha Herath were present at this committee meeting.
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