2024-04-04
News Categories : Committee News
It was revealed in the Committee on Ways and Means that the profit made by traders for one kilo by selling imported essential food items based on the market price is between Rs 100-1000.
This was revealed when the Committee on Ways and Means met in Parliament on 2nd April 2024 under the chairmanship of Hon. Patali Champika Ranawaka, Member of Parliament.
There was a discussion on the discrepancy between the market price of a kilo of essential food items and the import price. The officials of Central Bank of Sri Lanka, Department of Trade and Investment Policies, Sri Lanka Customs, Import and Export Control Department, Department of Censors and Statistics, Hector Kobbekaduwa Agrarian Research and Training Institute were summoned for the committee meeting.
It was revealed that since 2018, there has been a continuous decline in the tax revenue imposed by the government on imported goods, and this has been caused by the mismatch of the Special Commodity Levy (SCL) imposed on imported essential food items in accordance with the value of the US dollar. Accordingly, it was revealed that the consumers have not benefited from this as it costs a lot of money to buy these goods, but the traders have made a significant profit by selling these imported essential food items. Accordingly, it was revealed that the profit was between Rs 100-1000 per kilo based on the market price.
Also, based on these facts, the huge disparity between the market price of a kilogram of essential food items and the price at which goods are released from customs after the imposition of special commodity tax was also discussed here.
Accordingly, the Chairman of the Committee instructed the Sri Lanka Customs officials to submit all the reports related to the import of essential food items to the Committee on a weekly basis.
The chairman also emphasized to the officials of the Inland Revenue Department the importance of formally registering the importers who import goods under category 2525 in order to collect value added tax (VAT) and streamlining the import process of goods under category 7000. He also instructed to take steps to collect taxes according to the Inland Revenue Act for the undue profits earned by the importers during the importation of essential food items during the period from 2018 to 2023 and to report the progress to the committee by the end of this month.
Also, the importance of the intervention of the Consumer Affairs Authority to prevent consumer exploitation during the festive season was also emphasized here. Also, instead of buying essential food items from importers, the committee also advised that the Ministry of Trade, Commerce and Food Security should prepare a program to directly import and deliver them to the consumer. The committee also advised to prepare a program to inform the public about the price following the customs clearance, market price and maximum retail price of essential food items through websites, mobile applications and social media.
In addition, the progress of the forensic audit conducted by the Auditor General regarding the irregularities in granting licenses to import electric vehicles to Sri Lankans working abroad was discussed in the meeting. The committee instructed the relevant parties to suspend the gazette extending the granting of licenses to import electric vehicles for Sri Lankans employed abroad until the forensic audit conducted by the Auditor General is completed.
Also, the collection of arrears of tax was discussed here and the following instructions were given to the Inland Revenue Department. Accordingly,
• Immediate action (such as acquisition of properties/assets) as per Inland Revenue Act to recover Rs 188 billion in recoverable tax arrears.
• Taking necessary action to recover tax withheld within 3 years due to taking legal action.
• To provide the list of tax evaders and organizations to the committee within a week
• Establishing a public private partnership model through an open tender to maintain the Revenue Administration Management Information System (RAMIS).
• Providing the Attorney General's opinion to the Committee on whether the signed agreement information related to the Revenue Administration Management Information System (RAMIS) can be released to a third party.
• Instead of opening tax files for persons above 18 years of age, taking data of persons earning more than Rs.1 lakh per month (25 lakhs) on a digital platform,
State Ministers Hon. Lasantha Alagiyawanna, Hon. Sisira Jayakodi and Hon. Anuradha Jayaratne, Members of Parliament, Hon. W.D.J Seneviratne, Hon. Dayasiri Jayasekara, Hon. Udayana Kirindigoda, Hon. Wasantha Yapabandara, Hon. Shanta Bandara, Hon. Jayaratne Herath, Hon. Chandima Weerakkodi, Hon. Ali Saheer Maulana, Hon. Asanka Navaratne, Hon. Gamini Valeboda and Hon. Weerasumana Weerasinghe were also present in this committee meeting.
2025-10-29
A discussion aimed at sharing agricultural development experiences and expanding future cooperation opportunities between the Ministerial Consultative Committee on Agriculture, Livestock, Land and Irrigation and a Chinese delegation led by Yan Yalin, Vice Chairman of the Standing Committee of the People’s Congress of Yunnan Province, was held recently (Oct. 24) at the Parliament premises. The meeting was chaired by Hon. Deputy Minister of Agriculture and Livestock Namal Karunaratne, during which discussions focused on strengthening cooperation between the two countries in the fields of tea, coffee, and tobacco cultivation. Expressing his views at the discussion, Hon. Deputy Minister Namal Karunaratne stated that preliminary discussions had already been conducted at the ministerial level and that this meeting aimed to facilitate in-depth dialogue between the delegation and Members of Parliament on these sectors. Appreciating the continuous support extended by China to Sri Lanka’s development process over the years, the Hon. Deputy Minister also emphasized the longstanding friendship between Sri Lanka and China. He further noted that such interactions would contribute to strengthening bilateral cooperation and to the modernization and expansion of Sri Lanka’s agricultural sector. Both parties exchanged views regarding the development of the tea, coffee, and tobacco industries, with particular focus on the application of modern technological innovations. The need to utilize advanced technology to address challenges arising from the declining labor force and to improve the productivity of tea cultivation was also discussed. The Chinese delegation proposed the use of fourth-generation fertilizers as suitable for improving soil fertility and enhancing crop yields. Attention was also drawn to coffee cultivation, where it was noted that Sri Lanka’s coffee industry had demonstrated notable progress over the past decade. The need to expand the allocation of land for coffee cultivation was discussed as well. Officials indicated that currently over 5,000 hectares are under coffee cultivation and that plans are underway to expand it to 10,000 hectares within the next two years. Furthermore, discussions were held regarding Sri Lanka’s tobacco industry, where it was pointed out that exporting value-added finished products to the market instead of raw materials would enable Sri Lanka to gain better access to international markets. It was also highlighted that the tobacco industry in Sri Lanka still operates on a small-scale basis, and the Chinese delegation stressed the importance of developing it into a large-scale, factory-centered industry. Hon. Members of Parliament of the Ministerial Consultative Committee and other Hon. Members, Chinese representatives, and officials from Parliament and the Ministry participated in this meeting.
2025-10-29
The Committee on Public Accounts (COPA) questioned the North Western Provincial Council over its decision to adopt a “Design and Build Procurement Process” for a six-storey office complex, resulting in a higher financial burden on the Council, despite no feasibility study report having been obtained Although the North Western Provincial Council, together with the Kurunegala Municipal Council, had called for tenders and entered into an agreement with a contractor for the construction of the six-storey office building, it was disclosed before COPA that the construction work has now been suspended due to an ongoing supervisory inquiry. It was also disclosed that a feasibility study report, which is a prerequisite for such a project, had not been obtained. Furthermore, COPA emphasized that choosing the Design and Build Procurement Process which shifts the entire design and construction responsibility to the contractor, for a standard six-storey office building (not of a special nature) was problematic, as it imposed an unnecessary financial burden on the Provincial Council. These matters were discussed during the meeting of the Committee on Public Accounts (COPA), chaired by Hon. Kabir Hashim, Member of Parliament, held on 23.10.2025, to examine the Auditor General’s Reports for the years 2023 and 2024 and the current performance of the North Western Provincial Council. Accordingly, COPA decided to summon the respective officials for further examination of this construction project and recommended that within one month, all recommendations, procurement documents, technical committee reports, and all other related records pertaining to the project be submitted to the Auditor General. COPA also inquired into the recovery of loan funds and overdue interest provided by the Department of the Food Commissioner through the Department of Co-operative Development of the North Western Province to paddy-producing co-operative societies. It was recommended that a report including the measures taken to recover these funds, along with a timeline, be submitted to COPA within two months. Further, although the Provincial Land Commissioner’s Department had been instructed to prepare a comprehensive record on state lands, COPA observed that such records were not being properly maintained to allow identification of all state lands, details on lands given on long-term lease with or without approval, and arrears in lease rentals. COPA emphasized that officials must take action without hesitation to recover monies due to the government and assured that the Committee will extend all necessary support to ensure this. Accordingly, the Committee recommended that a report on the total amount expected to be recovered by the end of this year be submitted. It was further revealed that due to ongoing supervisory issues, approximately Rs. 85 million in tax arrears could not be recovered, and COPA directed that a detailed report on this matter also be submitted to the Committee. The meeting was attended by COPA Members including Hon. Deputy Ministers Aravinda Senaratne and Major General Aruna Jayasekara (Retd), and Hon. Members of Parliament (Dr.) Janaka Senarathna, T.K. Jayasundara, Ruwanthilaka Jayakody, Thushari Jayasinghe, Attorney-at-Law Sagarika Athauda, Attorney-at-Law and Sunil Rathnasiri.
2025-10-27
World Bank representatives have emphasized the importance of maintaining an updated and accurate data system when selecting eligible beneficiaries for the Aswesuma Social Security Programme. They further stated their readiness to provide the necessary technical support and international expertise for this purpose. These observations were made during a joint meeting held recently (Oct. 22) at Parliament, attended by Members of the Ministerial Consultative Committee on Finance, Planning and Economic Development; Members of the Sectoral Oversight Committee on Economic Development and International Relations; other Honourable Members of Parliament; representatives of the World Bank; and officials of the Ministry of Finance, Economic Stabilization and National Policies. The meeting was held with the participation of the Hon. (Dr.) Upali Pannilage, Minister of Rural Development, Social Empowerment and Welfare; and the Hon. (Ms.) Lakmali Hemachandra, Attorney-at-Law, Chairperson of the Sectoral Oversight Committee on Economic Development and International Relations. The World Bank delegation included Ms. Francesca Lamanna, Senior Economist for the Social Security Project, and Mr. Srinivas Varadan, Senior Social Security Specialist, along with several others. During the discussions, the World Bank representatives stated that establishing a comprehensive data system for social Security would enable the accurate identification of genuinely poor and vulnerable individuals and families. They noted that the mere inclusion of citizens’ information in the database would not automatically qualify them as Aswesuma beneficiaries. Instead, the data must be verified and analyzed to correctly identify those eligible for relevant benefits. They further emphasized that such a Social Security data system constitutes a productive investment for the country and, therefore, highlighted the need for continuous updating of the data system. Members of Parliament who took part in the discussion also expressed their views regarding issues encountered in distributing Aswesuma benefits. They suggested that the beneficiaries of Aswesuma be selected through local committees and that the list of selected beneficiaries be publicly displayed within the respective village to ensure transparency in the process. Officials involved in implementing the Aswesuma programme stated that certain challenges had arisen due to inadequate information provided to the implementing officers, Divisional Secretaries, and Grama Niladhari officers. However, they noted that measures are currently being taken to properly inform these officers of their respective roles and to obtain their cooperation in ensuring the successful implementation of the programme. This occasion was also attended by the Hon. Leader of the Opposition, Sajith Premadasa, Hon. Ministers, Hon. Deputy Ministers, Hon. Members of Parliament, Ms. Shalika Subasinghe – Advisor to the World Bank, and officials of the Ministry of Finance, Economic Stabilization and National Policies.
2025-10-24
The Committee on Public Finance has granted its approval for the Appropriation Bill for the year 2026. This approval was given during a committee meeting held in Parliament yesterday (Oct. 23) under the chairmanship of Hon. Member of Parliament Dr. Harsha de Silva. Officials from the Ministry of Finance, who attended the meeting, briefed the Committee on the allocation of funds for various sectors and the targets set for the year 2026. After an extensive discussion on these matters, the Committee granted its approval for the Bill. The Appropriation Bill for the year 2026 is scheduled to be presented to Parliament for the second reading (Budget Speech) by the Hon. President in his capacity as the Minister of Finance on 7th of November.
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