2025-03-08
News Categories : Committee News
The proposal submitted by the Ministry of Finance to increase the Excise Duty received the approval of the Committee on Public Finance. This approval was granted during the meeting of the Committee on Public Finance held on 06.03.2025 in Parliament, chaired by (Dr.) Harsha de Silva, Hon. Member of Parliament.
The Committee considered Gazette Extraordinary no. 2418/42 published under the Excise Notification No. 01/2025 (Excise Duty of Liquor) issued under the Section 22 of the Excise Ordinance (Chapter 52), Gazette Extraordinary no. 2418/43 published under the Order under the Section 3 of the Excise Special Provisions) Act, and Gazette Extraordinary no. 2415/79 published under the Regulations under section 112 of the Regulation of Insurance Industry Act No. 43 of 2000 at the Committee meeting held.
Accordingly, the Committee deliberated on the Order under Section 3 of the Excise (Special Provisions) Act, No. 13 of 1989, as well as Excise Notification No. 01/2025 issued under Section 22 of the Excise Ordinance (Chapter 52).
Officials who presented their views on the matter stated that under the Order pursuant to Section 3 of the Excise (Special Provisions) Act, No. 13 of 1989, an increase of 5.9% has been proposed for the excise duty imposed on all items subject to a fixed rupee value-based excise duty, including motor vehicles, cigarettes, aerated beverages, and tobacco products. Furthermore, under the Excise Notification No. 01/2025 issued under Section 22 of the Excise Ordinance (Chapter 52), an increase of 5.9% in the excise duty on liquor products has also been proposed, the officials said.
Expressing his views, the Committee Chair stated that the increase in the excise duty on cigarettes cannot be approved without concrete data and emphasized the need for justification regarding the steps taken to increase the excise duty on cigarettes. Furthermore, he pointed out that studies conducted on excise revenue from cigarettes indicate that this calculation method has led to a decline in government revenue while increasing the profits of particular manufacturing companies. Therefore, he stressed the importance of ensuring that this tax revision would indeed be beneficial to government revenue. Consequently, the Chair decided to reconsider the Order issued under Section 3 of the Excise (Special Provisions) Act, No. 13 of 1989 at the next Committee meeting following further clarifications from officials of the Ministry of Finance, regarding the excise duty increase.
Moreover, the proposal to increase the excise duty on liquor under Excise Notification No. 01/2025 issued under Section 22 of the Excise Ordinance (Chapter 52) was considered and approved by the Committee. During the discussions, Members of Parliament raised concerns that such tax increases could potentially drive individuals towards the consumption and production of illicit liquor. In response, officials stated that raids against illicit liquor operations are being conducted systematically. Additionally, they mentioned that within the past two months, the production of liquor in the country had increased by 22%, while revenue had grown by 23%. Furthermore, it was stated that plans are underway to introduce a new category of liquor with the aim of minimizing the consumption of illicit liquor.
Additionally, the Regulations issued under Section 112 of the Regulation of Insurance Industry Act No. 43 of 2000, published in Gazette Extraordinary No. 2415/79, were considered and approved by the Committee. Under this regulation, the annual levy payable by insurance companies to the Insurance Regulatory Commission of Sri Lanka (IRCSL) has been proposed to be increased from 0.125% to 0.2% of the gross written premium in order to cover the increased expenditure of the Commission.
During the discussions, the Chair informed the Committee of certain instances where the Insurance Regulatory Commission of Sri Lanka (IRCSL) had not carried out regulatory functions effectively. He further expressed his dissatisfaction regarding the delayed actions taken by the Commission under the prevailing law concerning the situation at MBSL Insurance. He instructed officials to keep the Committee informed of future measures to be taken in this regard. Moreover, the Committee emphasized the necessity for the Insurance Regulatory Commission of Sri Lanka to develop and present a strategic plan to enhance the insurance sector as an industry in the country.
The Committee also held an extensive discussion on the complexities involved in obtaining claims under third-party insurance. It was highlighted that there is a need for simplified regulations to ensure that claimants can access third-party insurance funds more easily in the event of an accident. The Committee directed the Insurance Regulatory Commission of Sri Lanka to address this matter.
Additionally, the Chair drew the attention of the Committee to the possibility of utilizing funds deposited in insurance reserves through banking mechanisms for development purposes. Consequently, the Director General of the Insurance Regulatory Commission of Sri Lanka was instructed to formulate and submit a regulatory framework for this purpose after engaging in discussions with industry stakeholders.
The Committee also discussed taxation related to casinos. The Chair pointed out that while taxes are imposed on physically established casino establishments, a large number of online casinos operate without any taxation. He stressed the need to address this issue and bring these online casinos under a regulatory framework. Furthermore, he reiterated that the Committee had been working for years to establish a Casino Regulatory Authority and stated that steps would be taken to inform the Attorney General’s Department to expedite the drafting of the necessary legislation.
This meeting was attended by Hon. Deputy Ministers (Dr.) Harshana Suriyapperuma and Chathuranga Abeysinghe, along with Hon. Members of Parliament Ravi Karunanayake, Harshana Rajakaruna, (Dr.) Kaushalya Ariyaratne, Nimal Palihena, Wijesiri Basnayake, and (Attorney-at-Law) Lakmali Hemachandra.
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
A meeting of the Parliamentary House Committee was held on 23rd May 2025 under the patronage of the Chairman of the Committee, Hon. Speaker Dr. Jagath Wickramaratne, to review the decision taken at the meeting of the Parliamentary House Committee held on 21st May 2025 to revise the rates charged for meals for the Executive Grade Officers and Non-Executive Staff Members of Parliament.During the Committee meeting, it was decided to revise the prices of meals for the Parliamentary Staff as follows with effect from 01.06.2025. Accordingly, it was decided to charge Rs. 4000 per month for an Executive Grade Officer and Rs. 2500 per month for a Non-Executive Staff Member.The Committee further decided that the current rates charged for meals purchased from the Parliament Staff Cafeteria by the drivers of Hon. Members, Police Officers, President/Prime Minister Security Officials and journalists should remain unchanged.The revision of these rates is a decision taken once every three years on the request of the Parliament Staff based on the recommendations made by the Ministry of Finance regarding the cost of meals provided to the Parliament Staff.This House Committee is a committee consisting of Members of Parliament from the ruling party and the opposition.
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