2023-06-19
Select Committee on Ease of Doing Business Index stated that steps should be taken urgently as there is still no formal mechanism to regulate the business activities conducted via the internet, and to regulate payments of taxes from the companies involved in such businesses.
The above was taken into discussion at the Select Committee of Parliament to study the practical problems and difficulties that have arisen in relation to enhancing the rank in the Ease of Doing Business Index in Sri Lanka and make its proposals and recommendations held recently (June 13) under the Chairmanship of Hon. Madhura Withanage.
There was a wide discussion about an economy known as the gig economy, where a group of freelancers who work freely in the labor market are engaged in various economic activities, apart from the traditional labor services that exist between the employer and the employee.
It was revealed that some foreign companies doing business online are taking large amounts of money to bank accounts abroad without paying taxes. Accordingly, the need to create a common business environment for local companies and international companies engaged in business activities centered on the Internet was emphasized here.
Heads of commercial banks, representatives of local and foreign companies doing business via Internet, representatives of credit card companies, central bank representatives and others participated in this committee meeting.
As the Gig Economy is growing rapidly along with the current technological development, the need to encourage business activities conducted via the Internet was pointed out. It was also suggested that a legal framework to regulate these businesses as well as a digital service tax should be introduced.
It was also discussed that it is necessary to create an environment to attract more companies involved in internet business to the country.
According to the declaration of the two-pillar solution to solve the tax challenges arising from economic digitization (G20 /OECD), out of the 140 member countries, only four countries, namely Sri Lanka, Pakistan, Kenya and Nigeria, have not signed the Global Corporate Tax Agreement.
At the same time, the Committee Chair also pointed out the need to promote digital transactions instead of currency notes and coins. The Chair advised the Committee to submit a report on the plan prepared by the Central Bank to promote digital transactions, which cost 3.2 billion annually for printing and issuing currency notes.
Members of Parliament Hon. Anura Priyadarshana Yapa, Hon. Mohomad Muzammil, Hon. Sanjeeva Edirimanna and Hon. Lalith Varna Kumara were present on this occasion.
Senior officials representing the Central Bank, Attorney General's Department, Ministry of Labor and Foreign Employment, Ministry of Finance, Ministry of Industry, Department of Inland Revenue participated and Registrar General of Companies Registration, Central Bank, Commercial Bank, Sampath Bank, HNB Bank, NDB Bank, Chairman, Chief Executive Officers and Senior Managers representing the Bank of Ceylon participated.
Furthermore, CEOs and directors of Lanka Pay, Pick Me, Uber, Master, Visa, Daraz, representing online service providers in Sri Lanka participated and presented their views to the Committee. The Registrar General of Companies present at the Committee stated that registration cannot be forced or mandated unless specified by law and the Company Registration Department acts as an agency to file information. Furthermore, registration of individual and joint ventures is done by the Regional Secretariat and another section of businesses are licensed by the local authorities.
Mrs. Viveka Siriwardena, Deputy Solicitor General of the Government stated that investment and providing goods and services through online technology are two separate things. It was also revealed that local companies that provide goods and services through online technology in Sri Lanka pay taxes to the government and some foreign companies engaged in the same business do not pay taxes to the government properly.
2026-09-25
The Committee on High Posts of Parliament recently granted approval for the appointment of a new Ambassador, a High Commissioner, and a chairperson of a state institution.The approvals were granted when the Committee on High Posts met under the chairmanship of Prime Minister Dr. Harini Amarasuriya.Accordingly, the Committee approved the appointment of Mrs. Anzul Banu Jhan as the new Ambassador of Sri Lanka to the Republic of the Philippines and Mr. Chandana Rohana Kumara Ambagolla as the new High Commissioner of Sri Lanka to Canada.The Committee also approved the appointment of Mr. Nusith Kumarathunga as the new Chairman of Sri Lanka Insurance Corporation Limited.
2026-09-23
A special committee appointed by the Ministerial Consultative Committee on Transport, Highways and Urban Development, to address the difficulties faced by persons with disabilities in obtaining driving licences, held its first meeting in Parliament recently, with particular attention focused on the steps that should be taken to make the process of obtaining driving licences more accessible and streamlined for persons with disabilities.At the meeting, attended by Hon. Members of Parliament Sugath Wasantha de Silva, Dinesh Hemantha and M.A.C.S. Chathuri Gangani, extensive discussions were held on the practical and legal challenges faced by persons with disabilities both in obtaining driving licences and in modifying and using vehicles to suit their respective disabilities.Attention was drawn to the medical examinations conducted by the National Transport Medical Institute (NTMI), the medical recommendations issued based on the nature of a person’s disability, and the procedure for issuing driving licences accordingly. Discussions also focused on conducting medical examinations at district level, expanding the range of vehicle types for which driving licences may be issued to persons with visual impairments, taking into consideration medical criteria including the field of vision, installing appropriate safety equipment in vehicles, and proposed amendments to the relevant Gazette notifications.The legal framework governing the issuance of driving licences to persons with hearing impairments, the use of special identification signs, and the assistance of sign-language interpreters were also discussed. Attention was also given to procedures for modifying vehicles to suit the individual needs arising from a person’s disability.Proposals were also put forward regarding issuing licences to one individual for multiple vehicles, simplifying the medical examination process, and improving the online system between the National Transport Medical Institute and the Department of Motor Traffic.The need for the necessary amendments to the relevant Gazette notifications, expanding services at the regional level, and creating awareness among relevant institutions to make the process of obtaining driving licences more accessible and streamlined for persons with disabilities was also emphasised. The importance of taking further steps to ensure the transportation rights of persons with disabilities while ensuring road safety was also stressed.Officials of the Ministry of Transport, Highways and Urban Development and other relevant representatives attended the meeting.
2026-09-23
The Promotion of Export Agriculture (Amendment) Bill was considered and approved at a recent meeting of the Sectoral Oversight Committee on Environment, Agriculture and Resource Sustainability.The matter was discussed when the Committee, chaired by Hon. Member of Parliament Hector Appuhamy, met on the occasion under the chairmanship of Hon. Member of Parliament, Attorney-at-Law Bhagya Sri Herath.As part of the restructuring of the institutional structure of the Department of Export Agriculture, new positions were created and existing positions were upgraded, including changing the designation of “Director” to “Director General.” However, the relevant provisions of the Export Agriculture Promotion Act, No. 46 of 1992, had not been amended accordingly. Furthermore, other related designations that required amendment had also not been revised. The necessary amendments have therefore been introduced through this Bill.It was also noted that the definitions of export agricultural crops referred to in the Act as “notified agricultural crops” have become practically incompatible with current production and market conditions. Accordingly, the need has arisen to revise and update the relevant definition so that it is appropriate for the present and future export agriculture sector.Accordingly, the Bill provides that, in place of the definition of the term “Export Agricultural Crop” in Section 19 of the Act, the term shall mean means any crop identified as a crop that have an export potential in addition to the local consumption other than paddy, vegetables, fruits, root crops and additional food crops belonging to the category of food crops and declared by the Minister in charge of the subject as “a notified agricultural crop” under section 2 of this Act. It further provides that any crop identified as a plantation crop shall not be included in this definition.The Committee also inquired into matters relating to the export of crops from Sri Lanka, including pepper. It was revealed that Sri Lanka exported 12,910 metric tonnes of pepper in 2025, with India being the country's largest buyer.Several members of the Committee, along with officials from the Ministry of Agriculture, Livestock, Land and Irrigation, participated in the Committee meeting.
2026-09-23
The Sectoral Oversight Committee on Education, Manpower and Human Capital has decided to appoint a Parliamentary subcommittee to study the salary disparities arising when teachers are appointed to the Principals’ Service, as well as the resulting reluctance among senior teachers to enter the Principals’ Service, and to make recommendations in this regard.These matters were discussed when the Sectoral Oversight Committee on Education, Manpower and Human Capital met in Parliament recently, under the chairmanship of Hon. Member of Parliament, Attorney-at-Law Hesha Withanage.Particular attention was drawn to the salary disparity arising from the fact that, under the Sri Lanka Principals’ Service Minute issued on 22 October 2014, entry into the Principals’ Service from the Teachers’ Service is considered a “new appointment” rather than a “promotion.”Officials pointed out that this situation is further aggravated by the significant difference in salary increments when a teacher is appointed from Grade 1 of the Teachers’ Service to Grade III of the Principals’ Service. They also noted that, although an adjustment allowance was introduced under Circular No. 03/2014 to address the salary difference arising at the time of appointment to the Principals’ Service, a salary gap emerges again as the teacher’s service progresses because they do not receive the higher salary increments that they would have received had they remained in the Teachers’ Service.It was also discussed that, as a result, senior and experienced teachers in Grades 1 and 2-I of the Teachers’ Service are being discouraged from sitting for the Principals’ Service examination and entering the Principals’ Service. Accordingly, attention was drawn to amending the Service Minute so that entry into the Principals’ Service from the Teachers’ Service would be treated as a “promotion” rather than a “new appointment.”The procedure for granting promotions within the Teachers’ Service was also discussed. The Committee pointed out that a newly appointed teacher entering the service with a university qualification takes approximately 19 years of service to reach Grade 1 of the Teachers’ Service.Attention was also drawn to the direct recruitment of Bachelor of Education (B.Ed.) graduates to Grade 2 of the Teachers’ Service in accordance with the Teachers’ Service Minute.Meanwhile, it was revealed that a verbal agreement had been reached with the Public Service Commission to recruit B.Ed. graduates as teachers under the previous system until 2030. Accordingly, it was stated that a Cabinet Memorandum has been submitted to recruit B.Ed. graduates to Grade 2 of the Teachers’ Service during this year.It was also discussed that these recruitments are planned to be carried out separately from the ongoing recruitment process for 23,000 teachers, based on subject-specific vacancies existing at provincial level.The Committee also considered the need to give universities until 2030 to update B.Ed. degree programmes so that they correspond with the actual subject requirements of the school system. In particular, the Committee highlighted the need to introduce specialised B.Ed. programmes in fields such as Science, Mathematics and Primary Education.Meanwhile, the Committee also considered the issue of recovering excess salary payments made to 261 laboratory attendants and security guards in the Southern Province. It was revealed that approximately Rs. 50.8 million had been overpaid as a result of the employees being placed on the 12th salary step instead of the initial salary step of the relevant salary scale in 2008 and 2009.It was stated that the matter was identified in 2016 and was subsequently examined through an audit query in 2022. To date, Rs. 15.1 million has been recovered through the suspension of salary increments and deductions from salaries.The representatives who appeared before the Committee pointed out that the employees were not directly responsible for this administrative error and that their letters of appointment had specified a particular salary scale. Accordingly, the Committee decided to bring the matter to the attention of the Governor of the Southern Province by way of a letter, with a view to obtaining his positive intervention regarding the difficulties faced by the employees.
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