2023-06-19
News Categories : Committee News
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.
2026-06-19
The Ministerial Consultative Committee on Environment focused its attention on the issue of water pollution in the Kelani River when it met in Parliament recently (10th June) under the chairmanship of the Hon. Minister of Environment, Dr. Dammika Patabendi.During the meeting, the Committee was briefed on the progress of discussions being held with companies that have expressed willingness to invest in a project aimed at cleaning the waters of the Kelani River.The Committee also discussed a number of proposals and other issues raised by Hon. Members of Parliament.The meeting was attended by Hon. Members of Parliament and officials.
2026-06-18
A meeting of the Women Parliamentarians Caucus was held in Parliament recently to discuss the importance of incorporating Gender-Responsive Budgeting into Sri Lanka’s national budget formulation process and to examine the challenges associated with its implementation.The meeting was chaired by the Chairperson of the Caucus and Hon. Minister of Women and Child Affairs, Saroja Savithri Paulraj. Hon. Prime Minister Dr. Harini Amarasuriya also participated in the discussion.A key concern raised during the discussion was the lack of adequate data and indicators to accurately assess and measure women’s economic contributions within the budgetary process. Drawing on examples of approaches adopted in India and other countries, members of the Caucus underscored the need to identify and address existing systemic and technical gaps in Sri Lanka’s budgeting framework.The Caucus also emphasized the importance of disaggregating data by gender in project reporting and strengthening digital data management systems to support such efforts. It was further noted that identifying relevant gender-related considerations at the initial stages of project design and implementation at the ministerial level would facilitate more effective project analysis, monitoring, and evaluation of outcomes.The need to move away from existing traditional and time-consuming methods towards formal online systems and data-driven analytical tools was also emphasized.The current progress and challenges in integrating Gender-Responsive Budgeting into Sri Lanka’s public financial policy were discussed in detail during the meeting.It was also emphasized that such budgeting should not be limited to nominal percentages in documents, but that the need to establish a formal framework and data system to ensure it has a real and practical impact was also highlighted.The Hon.Deputy Chairperson of Committees Hemalee Weerasekera, Hon. Deputy Minister Dr. Kaushalya Ariyarathne, Co-Vice Chairpersons of the Caucus, Hon. Members of Parliament Chamindrani Kiriella, Attorney at Law and Samanmalee Gunasinghe, Hon. Members of Parliament Thushari Jayasinghe, Attorney at Law, Krishnan Kaleichelvi, Sagarika Athauda ,Attorney at Law, Nilanthi Kottahachchi, Attorney at Law, Ambika Samivel and Lakmali Hemachandra, Attorney at Law, along with a group of officials from the Ministry of Finance, Planning and Economic Development, also participated in the event.
2026-06-17
The Ministerial Consultative Committee on Public Administration, Provincial Councils and Local Government met recently (Jun. 12) at Parliament under the chairmanship of the Hon. Minister of Public Administration, Provincial Councils and Local Government, Prof. A.H.M.H. Abayarathna.During the meeting, Members of Parliament discussed a range of issues and proposals relating to their respective electorates, as well as several other matters of public importance.Hon. Members of Parliament and officials were present at the meeting.
2026-06-17
The Ministerial Consultative Committee on Buddhasasana, Religious and Cultural Affairs met recently (Jun. 09) at Parliament under the chairmanship of the Hon. Minister of Buddhasasana, Religious and Cultural Affairs, Dr. Hiniduma Sunil Senevi.During the meeting, Members of Parliament discussed a number of proposals and issues, including reviewing the progress of discussions initiated with the Ministry of Education, Higher Education and Vocational Education and the Department of Examinations regarding the formulation of regulations to prevent the conduct of private tuition classes on Sunday mornings, thereby facilitating the holding of Dhamma School classes on Sundays.The meeting was attended by Hon. Deputy Ministers, Hon. Members of Parliament and officials.
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