2024-01-18
News Categories : Committee News
The Committee on Public Finance, led by Hon. (Dr.) Harsha de Silva expressed its deep dissatisfaction with the Ministry of Finance and Inland Revenue Department's failure to collect foregone taxes from major corporations implicated in the Sugar scam, as outlined in the forensic report by the Auditor General.
During the session, the Committee underscored its disappointment with the lack of action taken by relevant authorities despite a 99.5% reduction in the Special Commodity Levy on sugar imports, as stipulated in Gazette 2197/12 dated October 13, 2020. The Committee emphasized that no accountability measures have been implemented, allowing certain large corporations to unfairly benefit from the reduced tax rate at the expense of consumers.
Specifically, the Committee inquired about the extent of tax collection from the implicated companies and directed the Inland Revenue Department to submit a comprehensive report within one week. The Committee aims to gain clarity on the current status of tax collection related to the Sugar scam.
Further addressing the issue, the Committee highlighted its concern over the proposed reversal of the tax policy, which aims to increase the Special Commodity Levy on sugar from LKR 0.25/Kg back to LKR 50/Kg. The Ministry of Finance's intention to collect LKR 30 billion from the average Sri Lankan while allowing implicated corporations to evade responsibility was strongly criticized. The Committee emphasized the need to hold wrongdoers accountable before imposing additional financial burdens on the general public.
Additionally, the Committee engaged with officials from the Consumer Affairs Authority (CAA) to address concerns about the maximum retail price (MRP) not being adhered to by distributors. CAA officials revealed that despite conducting 342 raids and imposing fines on micro, small, and medium businesses exceeding the MRP, challenges persist in penalizing wholesale distributors due to the absence of a maximum wholesale price in the gazette.
The Committee directed the CAA to conduct a comprehensive study on the imposition of MRP, considering factors such as the Special Commodity Levy and importer prices. Furthermore, the Committee requested the CAA to propose a mechanism to address the ongoing issue of wholesale distributors selling above the MRP and engaging in fraudulent activities.
Additionally, the Committee delved into the implications of the Order under Section 22 of the Foreign Exchange Act No. 12 of 2017. This order outlines provisions designed to regulate the movement of funds and foreign exchange transactions for individuals and companies in Sri Lanka, with the overarching objective of sustaining economic stability and effectively managing foreign exchange reserves.
The migration allowance, as stipulated in the order, remains at 50,000 USD, with a reduced allowance of 20,000 USD for temporary visa holders. Officials from the Central Bank apprised the Committee of amendments to the previous gazette, including provisions allowing Sri Lankan individuals to purchase share options in their own overseas companies. Additionally, individuals are now permitted to withdraw 200,000 USD for investment in listed companies and 100,000 USD for unlisted companies.
While acknowledging these changes, the Chairman of the Committee on Public Finance (COPF) raised concerns about the feasibility of maintaining such a low migration allowance. He questioned the officials on the prevalence of individuals resorting to unofficial channels, such as Hawala and cryptocurrencies, due to these restrictions. Furthermore, the Chairman inquired whether the officials were aware of instances where Sri Lankans were converting their rupees to USDT (cryptocurrency) through various platforms such as Binance, and subsequently transferring funds abroad or investing in cryptocurrencies. Notably, cryptocurrencies were recently recognized as an asset class by the US Securities and Exchange Commission, with the approval of Exchange-traded funds just last week.
In response to the Chairman's queries, officials present were unaware of such occurrences and committed to conducting a thorough study into the matter. They emphasized that exchanging rupees into dollars outside formal channels is not permitted, and they will investigate the potential misuse of unofficial avenues for currency exchange and investment.
Members of Parliament Hon. Chandima Weerakkody, Hon. Madhura Withanage, Hon. Duminda Dissanayake, Hon. Sumith Udukumbura were present at the Committee meeting held.
2025-11-18
Attention of the Committee on Ways & Means was drawn to the Social Welfare Benefit Payment Scheme, its procedures, and related operational issues. This took place when the Committee met in Parliament on 12.11.2025 under the chairmanship of Hon. Member of Parliament Wijesiri Basnayake. During this meeting, officials of the Welfare Benefits Board briefed the Committee on the manner in which the Social Welfare Benefit Payment Scheme is currently being implemented. The Committee also held an extensive discussion on the criteria used for selecting individuals eligible for the Social Welfare Benefit Payment Scheme. Members of the Committee pointed out to the officials that several issues had arisen in identifying the most appropriate beneficiaries through these criteria. The Committee noted that since individuals are selected under 22 criteria, there should be a change in the mechanism used to implement these criteria. It was further highlighted by the Committee that, at present, individuals are allowed to register only for the purpose of receiving benefits, but what is required is that all individuals in the entire country should enter all their information into a single system (a Social Registry). Once registered in this way, their precise needs can be identified and necessary measures can then be taken to cater to those needs. The Committee also held an extensive discussion regarding the possibility of delivering welfare benefits directly to the homes of senior citizens and persons with disabilities. Officials further informed the Committee that although some individuals are eligible for benefits, they are unable to receive them due to not possessing a National Identity Card. Accordingly, the Committee emphasized the importance of verifying their identities and ensuring that they receive the intended welfare benefits. Hon. Minister Dr. Anil Jayantha, Hon. Deputy Ministers Chathuranga Abeysinghe, (Prof.) Ruwan Ranasinghe, and Nishantha Jayaweera and Hon. Members of Parliament Attorney-at-Law Sujeewa Senasinghe, K. Sujith Sanjaya Perera, Rohana Bandara, Chathura Galappaththi, and Thilina Samarakoon and a group of officials, participated in this meeting.
2025-11-17
The progress of drafting the National Higher Education Policy was discussed at the Subcommittee on Higher Education, appointed under the Ministerial Consultative Committee on Education, Higher Education, and Vocational Training. This discussion took place at the meeting of the Subcommittee held in Parliament on the Nov. 11th, chaired by Hon. Deputy Minister Dr. Madhura Senevirathne. At this meeting, Senior Professor Nilanthi de Silva, Vice Chancellor of the University of Kelaniya, presented her views to the committee regarding the prepared draft and the current progress, noting that the draft document is expected to be completed by the end of November. A follow-up review was also conducted on the matters discussed at the previous committee meeting, including the review of approved university staff structures, the admission of students with disabilities to universities, and improving the quality of external degree programmes. Hon. Members of Parliament and a group of officials, including Mr. Nalaka Kaluwewa, Secretary to the Ministry of Education, Higher Education, and Vocational Training, participated in this meeting.
2025-11-15
An interim report containing proposals and ideas for establishing the necessary framework and formal institution to develop a structured salary scheme and enhance professionalism in the public service was presented to the Ministerial Consultative Committee on Public Administration, Provincial Councils and Local Government by the Chairman of the appointed subcommittee, Hon. Member of Parliament Chandana Sooriyarachchi. This was presented during a meeting of the Ministerial Consultative Committee on Public Administration, Provincial Councils and Local Government, chaired by Hon. Minister (Prof.) A.H.M.H. Abeyrathna, recently (Nov. 13) at Parliament. During the meeting, matters raised by Members of Parliament regarding the issues prevailing in Divisional Secretariats and Local Government institutions were discussed. Accordingly, the committee chairman instructed the relevant officials to take necessary measures regarding these matters. Furthermore, proposals were made concerning the granting of pension benefits related to the positions previously held by individuals who became Members of Parliament after completing more than ten years of service in the public sector. As Members of Parliament who resign from their government positions do not qualify for a parliamentary pension, the necessity of considering this matter was also discussed. The committee chairman stated that further discussions will be held in the future and that attention will be directed towards this matter accordingly. It was also discussed that confusion has arisen within the public service due to changes made by the Public Service Commission to the efficiency bar cut-off marks listed in service minutes, recruitment schemes, and promotion procedures. Ministry officials stated that steps would be taken to reconsider this issue. Hon. Deputy Minister of Provincial Councils and Local Government P. Ruwan Senarath, Members of Parliament who serve on the committee, and several public officials participated in this committee meeting.
2025-11-15
The contractor has claimed Rs. 4,227 million as compensation due to the entire project being delayed by 548 days – COPE disclose Attention of the Committee drawn to the acquisition and disposal of all lands belonging to the Port Authority Extended discussions were held at the Committee on Public Enterprises (COPE) regarding the delay in construction activities of the East Container Terminal of the Colombo Port and the circumstances that arose due to the delay of the entire project. These discussions took place at the meeting held on the Nov. 13th in Parliament under the chairmanship of Hon. Member of Parliament (Dr.) Nishantha Samaraweera, Chair of the Committee on Public Enterprises (COPE), in order to examine the Auditor General’s Reports for the years 2022 and 2023 and the current performance of the Sri Lanka Ports Authority. The Sri Lanka Ports Authority was summoned before the Committee on Public Enterprises (COPE) on the 10th of September and the Auditor General’s Reports of 2022 and 2023 and the current performance were examined, and the matters that could not be discussed on that day were taken up for discussion at the Committee meeting held on this day. The Committee pointed out that Cabinet approval had been granted in November 2021 to award a contract worth Rs. 40,273 million to an institution for the development activities of the East Container Terminal of the Colombo Port. Agreements regarding this had been signed in December 2021, and the construction activities were scheduled to be completed by 03 January 2025. However, due to several reasons, the construction activities were delayed, and it was revealed that after extending the time period, these activities are now scheduled to be completed in July 2026. The Committee pointed out that due to the delay of 548 days, the contractor has claimed Rs. 4,227 million as compensation, and the Chair of the Committee instructed that a report containing all relevant particulars be submitted to the Committee. Officials present pointed out that development activities are currently being carried out very rapidly and that the work will be completed soon. Attention of the Committee was also drawn to the food expenses of the employees of the Authority, and the Committee noted that the recommendations given by COPE in 2023 had not been implemented. Accordingly, the officials stated that measures have now been taken to reduce expenses and that a competitive tender procedure has been introduced to minimize costs. Drawing attention to the taking over and eviction of all lands belonging to the Ports Authority, the Chair of the Committee emphasized that legal action should be taken regarding the lands for which the courts have issued orders to evict or recover. Officials stated that necessary steps have already been taken in this regard. Attention was also drawn to the change of the name of the Seeduwa Raddolugama Sports Club to Sri Lanka Ports Authority Sports Club, as well as the recruitment of players attached to that sports club as employees of the Sri Lanka Ports Authority. Hon. Members of Parliament, Dayasiri Jayasekara, Attorney at Law, S.M. Marikkar, Sujeewa Senasinghe, Attorney at Law, MKM Aslam, (Dr.) Pathmanathan Sathiyalingam, (Dr.) S. Sri Bavanandarajah, Lieutenant Commander (Rtd.) Prageeth Madhuranga, Thilina Samarakoon, Samanmali Gunasingha, Sunil Rajapaksha, Chandima Hettiarachchi, and Dinesh Hemanta participated in this meeting.
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