2022-07-07
News Categories : Committee News
COPE chaired by Hon. (Prof) Charitha Herath recommended that an investigation be conducted through the Auditor General's Department on the cancellation of the Term Tender, which had been approved by the Cabinet to buy gas from Siam Gas at USD 96 per metric ton and opting to buy 100,000 MT of gas at a cost of USD 129 per metric ton from an Oman company.
This recommendation was given recently (05) when Litro Gas Lanka Ltd, Litro Gas Terminal Lanka (Private) Limited and Sri Lanka Insurance Corporation were summoned before COPE to implement the orders given by the previous Committee on Public Enterprises and to discuss the current performance.
It was disclosed that since the Term tender for the purchase of gas ended last February, tenders were invited for 2,80,000 MT of gas and three gas suppliers have submitted bids accordingly. Siam gas Company has submitted the lowest price as USD 96 per metric ton and accordingly the Cabinet has approved to award the tender.
The Litro officials disclosed that gas could not be obtained from Siam gas Company due to the economic crisis as banks in Sri Lanka were unable to submit the Standby Letter of Credit (SBLC) to Litro as per the conditions announced during the bidding process.
They further said that despite discussions with the concerned company in this regard, the company expressed its unwillingness to supply gas without a Standby Letter of Credit (SBLC) as per the conditions presented during the tender invitation.
Due to this delay, as a temporary solution, Siam gas Company itself has negotiated to obtain 15,000 MT of gas as emergency purchases, which is the gross amount of gas required for two weeks, but it has been informed that they can supply only 6600 MT and thus was unsuccessful.
Litro officials also said that the Oman company, which had sent prices at USD 129 per metric ton for the Term Tender, agreed to provide 100,000 MT of gas for 4 months at 25,000 MT per month.
Accordingly, after notifying the above facts to the cabinet, it was revealed that the term tender given to Siam gas Company was canceled and the cabinet approval was received for the term tender to purchase 100,000 MT of gas from the Omani company. A USD 70 million loan from the World Bank and 20 million of Litro Gas Lanka Ltd amounting to USD 90 million in total was used for this procurement, Mr. Muditha Peiris, Chairman of Litro Lanka said.
The COPE chair instructed the Auditor General's Department to conduct a formal investigation and report whether the loan amount of USD 70 million from the World Bank was effectively used, and added that although the need for gas is a necessary emergency, buying from the Omani company at a higher price instead of the lowest bidder, Siam, may set a bad precedent in the future.
The committee also focused on the inability to purchase gas with the amount of USD 160 million allocated for the purchase of gas under the Indian Credit Line. The Litro chairman said that according to the conditions of the Indian government, it is a problem to buy gas that is not produced in the country. It was also revealed that several rounds of discussions have been held regarding this. The COPE Chairman recommended to the Secretary to the Ministry of Finance to look into this immediately and report within two weeks.
Attention was also drawn to the fact that the number of currently appointed members of Litro's board of directors is only 4. It was revealed that according to the legal status, there should be 5 members. Furthermore, since the Ministry of Finance appoints the members of the Board of Directors, COPE pointed out the need to appoint the Board of Directors to consist of representatives of the parent company. The COPE Chairman recommended the Secretary to the Ministry of Finance to take necessary measures on this regard.
It was also discussed about holding both the positions of the company's Chairman and Chief Executive Officer by the same person. Even if the position of the company's chairman changes, the presence of a permanent chief executive officer position is essential for the good survival of the company, so the committee emphasized the importance of working towards it as soon as possible. Furthermore, Litro Chairman said that the Board of Directors has already taken a decision to deal with this situation as soon as this crisis is resolved. The committee recommended to take necessary steps and submit a report on this regard.
Litro Company's ability to obtain financial support from Sri Lanka Insurance Corporation, the parent company of the Litro Company was also looked into. The Chairman of the Sri Lanka Insurance Corporation, Mr. Vijitha Herath, said that the company was able to purchase gas in the past due to the deposit of nearly 5 billion rupees in a state bank.
Representing the Secretary of the Ministry of Finance, Mr.Saman Fernando. Deputy Secretary to the Treasury, Chairman of the Sri Lanka Insurance Corporation and former Litro Chairman Mr. Vijitha Herath, Litro Chairman Mr. Muditha Peiris were present at this meeting whilst Mr. Thesara Jayawardane, former chairman of Litro Company, joined online.
Parliamentarians Hon. Patali Champika Ranawaka, Hon. Mahindananda Aluthgamage, Hon. Anura Dissanayaka, Hon. (Dr.) Harsha de Silva, Hon. (Dr.) Sarath Weerasekera, Hon. Jagath Pushpakumara, Hon. Indika Anuruddha, Hon. S.M Marikkar, Hon. Jayantha Samaraweera, Hon. (Dr.) Nalaka Godahewa, Hon. Premnath C. Dolawatte and Hon. Madhura Withanage were present at the meeting held.
2026-08-18
The Committee on High Posts has approved the appointments of one Ministry Secretary and three chairpersons to government statutory boards and institutions.Accordingly, the Committee approved the appointment of Dr. Anil Jasinghe as Secretary to the Ministry of Health and Mass Media; Mr. S.A.M. Peiris as Chairman of the Colombo Lotus Tower Management Company (Pvt) Ltd.; Mr. H.M.P. Ratnayake as Chairman of Kurunegala Plantations Limited; and Dr. (Mrs.) W.M.V. Wanasinghe as Chairperson of the National Insurance Trust Fund.The meeting was chaired by the Hon. Prime Minister (Dr.) Harini Amarasuriya and was attended by the Hon. Minister Ramalingam Chandrasekar, the Hon. Members of Parliament Kumara Jayakody, and Dayasiri Jayasekara, Attorney at Law.
2026-08-18
The “Voice to Policy” dialogue programme organized for youth in the Gampaha District by the Parliamentary Caucus for Open Parliament Initiative was held recently (Aug. 16) at Jetwing Blue Hotel in Negombo. The programme provided an opportunity for young people from the Gampaha District to present their policy proposals directly to Members of Parliament. The programme was conducted as the first in a series of workshops organized by the Parliamentary Caucus for Open Parliament Initiative, covering all districts of the country with the aim of further promoting the concept of an Open Parliament. The main objective of the programme was to provide young people with an opportunity to directly present their views, concerns and policy proposals to Members of Parliament. Young men and women representing the Gampaha District participated in the workshop. The event was attended by the Co-Chairs of the Parliamentary Caucus for Open Parliament Initiative, Hon. Minister Prof. Krishantha Abeysena and Hon. Member of Parliament Shanakiyan Rasamanickam, as well as Members of Parliament Chamindranee Kiriella, Attorney at Law, S. M. Marikkar, Retired Lieutenant Commander N. R. Prageeth Maduranga, Retired Major General G. D. Suriyabandara and Champika Hettiarachchi.During the programme, young participants presented their views and proposals on a wide range of issues, including education and higher education, political participation, vocational training, employment opportunities, technology, entrepreneurship, and access to opportunities and information available to young people.Particular attention was given to reducing the time required to complete higher education courses and degree programmes, creating greater opportunities for young people who wish to enter politics, and expanding youth entrepreneurship.A key feature of the programme was that the young participants themselves identified their priority concerns, discussed them, grouped them into common areas, and selected fields requiring policy attention before engaging in direct dialogue with Members of Parliament on those issues.The Parliamentary Caucus indicated that it would give consideration to forwarding the proposals presented by the youth during the programme for further consideration by Parliament. Discussions were also held on providing youth representatives with opportunities to engage in the future with the relevant Sectoral Oversight Committees of Parliament on these matters.In addition, Youth Rapporteurs were appointed to document the recommendations and proposals raised during the programme and submit them to the Parliamentary Caucus for Open Parliament Initiative.The workshop was sponsored by CII (Coalition for Inclusive Impact).
2026-08-14
The Caucus on Climate Parliament of Sri Lanka emphasized the need to move beyond reactive crisis management and establish Anticipatory Crisis Governance mechanisms to strengthen Sri Lanka’s climate resilience in the face of climate change, including El Niño conditions.At the meeting, held recently in Parliament under the joint chairmanship of Hon. Leader of the Opposition Sajith Premadasa and Hon. Member of Parliament Prof. L.M. Abeywickrema, discussions covered a wide range of issues, including climate change, El Niño conditions, agriculture, water management, wildlife conservation, human-elephant conflict, disaster management and environmental management.Delivering the main expert presentation at the meeting, Prof. Charitha Pattiarachchi, Winthrop Professor of coastal oceanography at the University of Western Australia, highlighted the need for early preparedness in the face of climate risks, science-based policymaking and stronger disaster management mechanisms. The disaster management model of the Indian state of Odisha was also discussed. It was noted that, during a cyclone in 2019, the state was able to evacuate approximately one million people to safe locations within 24 hours.The interim report presented by Dr. Sumith Pilapitiya, Chairman of the Subcommittee on Human-Elephant Conflict, pointed out that climate conditions could intensify human-elephant conflict and highlighted the need for short- and long-term measures, including community-based electric fences, seasonal paddy-field fencing, wildlife habitat management and water management.The interim report presented by Prof. Sampath Seneviratne, Chairman of the Independent Expert Advisory Group on El Niño Resilience, analyzed the impacts of climate change on agriculture, biodiversity, water security and the rural economy. The report also proposed a Strategic Climate Resilience Framework based on scientific evidence.With regard to wildlife conservation, attention was drawn to addressing the shortage of veterinary officers, strengthening wildlife management, and reducing environmental damage caused by human activities, plastics and waste in and around national parks. Proposals were also put forward to minimize environmental impacts in sensitive sacred areas, introduce a differential pricing system for the tourism sector, and develop infrastructure in national parks.The meeting also emphasized the need to strengthen science-based policies, institutional coordination and early-preparedness mechanisms in order to enhance Sri Lanka’s resilience to climate change.Members of Parliament, government officials, representatives of international organizations and development partners, researchers, youth representatives and representatives of civil society organizations participated in the meeting.
2026-08-13
The Committee on Public Finance stressed the need to make the security sticker system used on liquor bottles more efficient and cost-effective.The Committee on Public Finance, Chaired by Hon. Member of Parliament (Dr.) Harsha de Silva, met recently in Parliament. The Committee discussed the security sticker system used on liquor bottles, the Regulations issued under the Imports and Exports (Control) Act, No. 1 of 1969, and matters relating to the dissolution of the Shrama Vasana Fund under the Finance Act, No. 38 of 1971. Hon. Deputy Ministers Chathuranga Abeysinghe and Nishantha Jayaweera, Dr. Kaushalya Ariyarathne and Hon. Members of Parliament Ravi Karunanayake, Harshana Rajakaruna and Attorney at Law Lakmali Hemachandra, participated in the meeting. Hon. Wijesiri Basnayake and Hon. Attorney at Law Chithral Fernando, participated online. The Committee paid extensive attention to the cost of the security sticker system, its technical standards and the economic benefits to the Government. It was revealed that the system was introduced in accordance with the 2016 Budget proposals to reduce the use of untaxed liquor, safeguard excise revenue and prevent the circulation of counterfeit liquor. The contract for the system was awarded in 2017 to the Indian company Madras Security Printers (MSP).The Committee also discussed the practical difficulties of using physical stickers in high-speed liquor production processes. Accordingly, permission was granted in 2021 to use digital (inkjet) code printing. The Committee noted that the same fee of US$ 5.99 charged for 1,000 printed paper stickers is also being charged for digital code printing.While the initial infrastructure costs for sticker printing machines at bottling plants need to be considered, a digital sticker would generally cost less than a paper sticker. Therefore, the Committee stressed the need to review the existing cost structure and the benefits received by the Government.The Committee also discussed the need to adequately adopt international ISO standards for the security sticker system, introduce a Track and Trace system to monitor the movement of liquor products from production to the consumer, and provide a facility for consumers to verify the authenticity of products through a mobile application.The Committee further stressed that the new tender process should consider not only the price but also quality, data security and technical standards. It was also emphasized that officers with the necessary technical expertise should be involved in the tender evaluation process to prevent counterfeit stickers and imitation.The Excise Department was instructed to study global best practices followed by other countries and prepare a report for submission to the Committee.Meanwhile, the Committee also considered the new Regulations issued under the Imports and Exports (Control) Act, No. 1 of 1969. The Regulations, published in Extraordinary Gazette Notification No. 2496/38 dated 10 July 2026, prohibit the importation into Sri Lanka of goods manufactured wholly or partly using forced labour. The objective is to strengthen the legal framework for responsible trade and compliance with international labour standards.The relevant Gazette Notification has been submitted to Parliament for approval in terms of Section 20 of the Act. It was also noted that the Gazette Notification prohibiting the importation of goods manufactured using forced labour enabled Sri Lanka to be included in the lowest and more favourable 10% category, instead of the initially applicable 12.5% category, under the United States’ forced-labour-related tariff measures implemented under Section 301, which were concluded on 23 July 2026.The Committee also considered matters relating to the dissolution of the Shrama Vasana Fund established under the Finance Act, No. 38 of 1971. It was stated that the Fund, established under the Act of 1998 and amended by the Act of 2019, had been identified for dissolution due to its lack of relevance to the present context, poor performance and underutilisation of its assets.Officials explained to the Committee that following the closure of the Fund, its essential services would continue to be provided through the Ministry of Labour. This is expected to reduce the cost of maintaining a separate institutional structure and enable public resources to be utilized more effectively.
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