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.
2026-03-10
The caucus will intervene to the fullest extent to bring Parliament closer to the people through transparency, accountability, participation, and inclusivity – Co-Chairs emphasizeSteps taken to develop a set of future programme proposals and a working terms of referenceA two-day residential workshop for Members of the Parliamentary Caucus for Open Parliament Initiative was successfully held on 06 and 07 March in Kalutara.The workshop was organized with the support of the Westminster Foundation for Democracy (WFD) and the Coalition for Inclusive Impact (CII).Members of the caucus, including its Co-Chairs Hon. Minister of Science and Technology (Prof.) Krishantha Abeysena and Hon. Member of Parliament Shanakiyan Rajaputhiran Rasamanickam, as well as several officials of the Parliament Secretariat, participated in the workshop.During the workshop, discussions were held on planning future programmes to be implemented by the Parliamentary Caucus for Open Parliament Initiative, drawing on the views of the caucus members and expert resource persons.Accordingly, a detailed introduction to the concepts of Open Government and Open Parliament was presented. The National Consultant, Ms. Angelina Herman, outlined the steps required to make Parliament a more accessible institution to the public through the key principles of the Open Parliament process: Transparency, Accountability, Participation, and Inclusivity. Discussions were also held on practices adopted by various countries around the world in implementing the Open Parliament concept.Furthermore, Assistant Secretary-General of Parliament Mr. Hansa Abeyratne explained the steps taken by the Parliament of Sri Lanka since the initial establishment of this caucus in 2015 to bring Parliament closer to the people.In addition, Chief Legal Officer of the Ministry of Public Administration, Provincial Councils and Local Government Ms. Gayani Premathilaka delivered an awareness session on the committee system of local government institutions and ways to enhance public participation in those committees.The workshop also facilitated an exchange of knowledge and ideas between resource persons and caucus members, leading to the development of a working terms of reference and a strategic action plan for the caucus.Speaking at the event, Co-Chairs Hon. Minister (Prof.) Krishantha Abeysena and Hon. Member of Parliament Shanakiyan Rajaputhiran Rasamanickam emphasized that the Parliamentary Caucus for Open Parliament Initiative will continue to take the necessary measures to ensure greater engagement in making Parliament a more people-centred institution.Mr. Sanje Vignaraja, Country Director for the Westminster Foundation for Democracy (WFD), and Ms. Dilashinee Angunawela, Strategy & Governance Specialist representing the Coalition for Inclusive Impact (CII), were also present on the occasion.
2026-03-06
The Third District Consultation aimed at strengthening inclusive service delivery for persons with disabilities was recently (Feb. 27) held in Batticaloa District. The event was organized by the Parliamentary Caucus for Persons with Disabilities of the Tenth Parliament and convened at the Batticaloa Municipal Council Hall . The consultation was held under the patronage of the Chair of the Caucus, Hon. Member of Parliament Sugath Wasantha de Silva and Batticaloa District Secretary J.S. Arulraj. The event was attended by the Deputy Co-Chairman, Hon. Member of Parliament (Dr.) Pathmanathan Sathyalingam, as well as Members of Parliament representing the Batticaloa District Shanakyan Rajaputhiran Rajamanickam, (Dr.) Ilayathambi Sirinath, Gnanamuthu Srinesan, and Kanthasamy Prabu. Senior government officials including Assistant District Secretary G. Praveen, District Social Service Officer Chandrakala Gnaneswaran, police officers, sectoral experts, and social development officers participated in the discussions. The representatives of the organizations of person with disabilities of Batticaloa districts were also participated in this event. The urgency of the consultation was underscored by the statistics indicating that more than 9,000 persons with disabilities reside in Batticaloa District, supported by 14 active associations. District Secretary J. S. Arulraj highlighted critical service gaps, including the immediate need for 21 trained teachers across 23 special education units currently serving 183 students. He also raised concerns regarding the issuance of formal identification cards for persons with disabilities, difficulties in obtaining driving licences, and widespread accessibility barriers in public buildings.In his address, Hon. Sugath Wasantha de Silva emphasized that the consultation represented a unified, non-partisan effort to foster a compassionate and inclusive society. He stated that services for persons with disabilities must be delivered on the basis of humanity and equality. He further announced that the Caucus plans to engage with the Ministry of Education in March to address systemic barriers in qualifying examinations for government employment. He called upon government officials and political leaders to collaborate with dedication to resolve longstanding challenges faced by persons with disabilities.Deputy Co-Chairman (Dr.) Pathmanathan Sathyalingam stressed the importance of identifying and supporting persons with disabilities in Batticaloa who have not yet received assistance. He highlighted the need for coordinated action through relevant institutions to ensure adequate facilities and services, particularly for individuals affected by conflict and other causes of disability.Members of Parliament representing the district drew attention to persistent shortcomings in service delivery and the practical challenges faced by persons with disabilities in their daily lives. The participants from disability community raised several concerns, including extending deadlines for educational allowances; adapting competitive examinations for visually impaired candidates through Braille-based alternatives; providing priority access in hospitals to reduce waiting times; ensuring that reserved seating on public transportation is respected; and improving accessibility at local government offices, where meetings are often held on upper floors without ramps or elevators.While some matters were addressed immediately through directives issued to relevant officials, others were referred to district authorities and the Parliamentary Caucus for longer-term policy reform, reflecting a commitment to sustainable and systemic change.The Chair of the Caucus reaffirmed that the Union remains committed to conducting district-level visits nationwide to listen directly to the concerns of persons with disabilities and to proposing practical, policy-driven solutions to ensure inclusive governance across Sri Lanka.The event was organized collaboratively by the International Foundation for Electoral Systems (IFES), with funding support from the Government of Australia, in partnership with the Batticaloa District Secretariat.
2026-02-24
The Committee on High Posts of Parliament has approved the nominations of two Heads of Mission and a Ministry Secretary.The approvals were granted when the Committee met in Parliament recently (Feb. 20) under the chairmanship of Prime Minister Dr. Harini Amarasuriya.Accordingly, the Committee approved the nomination of Mrs. Nirmala Indumathie Dias Paranavitana as Ambassador of Sri Lanka to the Federal Democratic Republic of Ethiopia and Permanent Representative of Sri Lanka to the African Union.The Committee also approved the nomination of Professor Mohamed Ibrahim Fazeeha Azmi as the new Ambassador of Sri Lanka to the Islamic Republic of Iran.In addition, approval was granted for the appointment of Mr. K.A. Vimalenthirarajah as the Secretary to the Ministry of Trade, Commerce, Food Security and Cooperative Development.
2026-02-24
Committee reviews progress of disaster relief provided to the public affected by Cyclone DitwahAttention drawn to disaster management insuranceReview of the current progress of the Public Debt Management Office (PDMO) programmesThe Committee on Public Finance instructed officials to establish a legal framework for the Rs. 200 daily attendance allowance granted by the Government to estate workers.Clarifying matters at length, the Chairman of the Committee emphasized that the Committee has no objection to increasing the wages of estate workers. However, he stated that the legal basis of the mechanism used to make this payment must be discussed. It was pointed out that the payment is currently being made under a Memorandum of Understanding (MoU) entered into with private plantation companies, without being gazetted, and that such an arrangement could be terminated at any time. Officials further noted that the Rs. 200 allowance does not qualify for contributions to the Employees’ Provident Fund (EPF).Officials informed the Committee that the MoU has been entered into with private plantation companies for a period of three years, and that once this period ends, a policy decision would be required if the Government intends to continue the payments.The Committee Chair pointed out that it is inappropriate to utilize public funds to pay salaries in private institutions without proper financial discipline. Officials stated that the payment is being made as it has been approved by Parliament under the 2026 Budget.According to the approved budget estimates, the allocation for this payment is categorized as a “development subsidy.” As development subsidies are generally intended to support increased production, the Deputy Secretary to the Treasury (DST) suggested that the payment would be more appropriately termed a “production incentive.” However, it was observed that neither the payments already made for January nor the relevant MoUs specify such a requirement in practice. The Committee also questioned whether excluding the Rs. 200 daily allowance from Employees’ Provident Fund (EPF) and Employees’ Trust Fund (ETF) calculations is in compliance with the relevant laws. When asked whether the Attorney General’s advice had been sought regarding the MoUs and related matters, officials stated that such advice had not been obtained.Accordingly, the Committee emphasized that these problematic areas must be rectified and that a proper legal basis should be established for the payment.These matters were discussed when the Committee on Public Finance met in Parliament on 17.02.2026 under the chairmanship of Hon. Member of Parliament Dr. Harsha de Silva, with the participation of Hon. Deputy Ministers Chathuranga Abeysinghe and Nishantha Jayaweera and Hon. Members of Parliament Ravi Karunanayake, Ajith Alahakoon, M.K.M. Aslam, Attorney-at-Law Chitral Fernando, Wijesiri Basnayake, Sunil Rajapaksha, Nimal Palihena, Thilina Samarakoon and Champika Hettiarachchi.The Committee also discussed the progress of disaster relief provided to the public affected by Cyclone Ditwah. Officials stated that approximately Rs. 24.4 billion has so far been released under various relief measures announced for those affected. While the majority of allowances for house cleaning, purchase of household items, and assistance for schoolchildren have already been distributed, officials explained that delays in housing reconstruction and rental assistance payments have occurred due to processes such as damage assessments and land identification. Officials further clarified the verification procedures and accountability mechanisms in place. Committee members highlighted the difficulties faced by those expecting relief payments and stressed that housing assistance in particular should be expedited.Officials of the National Insurance Trust Fund (NITF) also explained their financial position and the reinsurance claims the Fund is required to settle following claims submitted by general insurance companies after Cyclone Ditwah. The estimated reinsurance claims payable by NITF currently amount to approximately Rs. 11 billion. Although NITF has not reinsured its risk exposure with an international reinsurer since 2023, officials stated that it has the capacity to settle the existing claims.It was revealed that the Treasury maintains a significant cash buffer to meet the Government’s daily expenditure requirements, with approximately Rs. 750 billion available by the end of 2025. Due to payments made in December, the cash buffer had declined to this level, leading to increased issuance of Treasury bills from late December to mid-January, which in turn raised interest costs during that period. However, the situation has now stabilized. It was also noted that as the return earned from investing the cash buffer is approximately 2–3 percent lower than the Government’s annual interest cost, maintaining such reserves entails an opportunity cost.Attention was also drawn to the progress of the Public Debt Management Office (PDMO), which has been in operation for 14 months. It was observed that 90 percent of total staff recruitment has been completed. Officials have been provided with specialized local and international training to enhance professional capacity.Although the Central Bank’s auction system is currently used for public debt management activities, steps are being taken to establish an independent system within the PDMO to enable full operational autonomy in the future.The Committee observed that Sri Lanka’s total domestic debt stock amounts to Rs. 31 trillion, comprising Rs. 15.6 trillion in Treasury bills and Rs. 15.4 trillion in Treasury bonds. The average cost of this total debt is reported at 8.73 percent.It was further noted that Sri Lanka’s total external debt servicing requirement for 2026 is projected at USD 2,504 million. Expected foreign inflows for that year amount to USD 2,100 million, including USD 858 million in project loans, USD 150 million in World Bank budget support, USD 380 million from the Asian Development Bank (ADB), and USD 800 million from the International Monetary Fund (IMF).Accordingly, a resource management gap exceeding USD 400 million remains to be addressed for debt servicing in 2026.
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