2023-07-24
The ‘Local Loans and Development Fund’ under the Ministry of Public Administration, Home Affairs, Provincial Councils and Local Government was summoned to the Committee on Public Enterprises (COPE) which met on 20.07.2023 under the chairmanship of Member of Parliament Hon. Prof. Ranjith Bandara.
This institution has been established by Ordinance No. 22 of 1916 with the aim of providing financial facilities at a concessional interest rate to the local government bodies for running public utility services as authorized by law. It has been amended on several occasions and has been named as the Local Loans and Development Fund under Act No. 24 of 1993.
The investigation was done through the following basic facts related to the Auditor General's reports for the financial years 2020, 2021 and current performance.
Need to amend the Act
Since this is a financial institution similar to a bank, the need to amend the Act was emphasized by taking into consideration the timely matters. According to the Act, it is not appropriate for the Secretary of the Ministry to act as the Chairman of the Fund, so the Auditor General pointed out the importance of making amendments by focusing on all those matters.
It was discussed that, in 2018 'Asian Foundation' had given a report regarding the restructuring of the institution and if it had been acted upon, great progress could have been achieved.
Since the Prime Minister as the Minister in charge of the subject has also held a discussion to amend the Act, the Secretary of the Ministry of Public Administration, Home Affairs, Provincial Councils and Local Government was informed to take steps promptly.
Need to make the posts of Director General and Internal Auditor full time permanent posts
The committee's attention was drawn to the fact that the position of Director General has been an acting position for many years. It was also discussed about the absence of a permanent Internal Auditor. Accordingly, the COPE ordered to inform within two weeks about the next steps to be taken to appoint a permanent Director General as well as a full-time permanent Internal Auditor.
Absence of a formal system for disbursement of loans, project evaluation, and loan recovery
It was revealed that the fund has received 9 projects worth 249 million rupees in the year 2023, but the board of directors has not considered them yet.
Thus, it was recommended that a formal system and set of guidelines be set up, focusing on issues such as granting and recovery criteria, loan recovery capabilities, projects using loans and productivity. The committee emphasized the need for the loan committee to operate according to that formal system.
Need to streamline the system of loan distribution to each province
The COPE chairman revealed that 691 million rupees of the total loan amount of 847.7 million rupees has been given to the North-Western Province in 2021. The committee recommended that the loan distribution system to each province be streamlined.
Streamline the Internal Audit
The committee discussed about the lack of a permanent Internal Auditor to conduct the internal audit properly. It was recommended to recruit a permanent Internal Auditor and to provide the audit reports for the years 2011 and 2012 to the Auditor General within a month. It was also advised to implement the recommendations of the National Audit Commission.
A Corporate plan has been prepared for the period of 2019-2023, but it was revealed that it has not been approved. Accordingly, the committee advised to approve a corporate plan from 2023 to 2028.
Attention was also paid to the non-recovery of a loan amount of 12 million rupees given to the Dambulla Pradeshiya Saba in 1995, under the multi-crop development project, and the loan amount of 60.9 million rupees given to the Kandy Municipal Council. Accordingly, it was advised to take the relevant legal steps immediately.
The COPE Chairman emphasized that the activities of the ‘Local Loans and Development Fund’, which is the only institution that provides financial assistance to development activities through local government bodies, should be more streamlined. It was also decided to summon this institution in another six months.
State Ministers Hon. Jagath Pushpakumara, Members of Parliament Hon. Anura Priyadarshana Yapa, Hon. Dayasiri Jayasekara, Hon. Nimal Lanza, Hon. S.M Marikkar, Hon. Upul Mahendra Rajapaksa, Hon. Madhura Withanage and Hon. Prof. Charita Herath were present in this committee.
2026-09-15
The wearing of seat belts will be made mandatory from September 20 for all persons travelling in all seats of vehicles operating on expressways. The Order published in Extraordinary Gazette No. 2493/19 dated June 17, 2026, which was introduced to bring an end to the concessionary period granted for compliance with this requirement, has been approved by Parliament.The matter was discussed at length recently at a meeting of the Ministerial Consultative Committee on Transport, Highways and Urban Development, chaired by Hon. Bimal Rathnayake, Minister of Transport, Highways and Urban Development, held at Parliament.An amendment to the Motor Traffic (Expressways) Order dated August 3, 2011, published under Gazette No. 1717/14, was introduced through Gazette Notification No. 2455/29 dated September 25, 2025, making the wearing of seat belts mandatory for all persons travelling in vehicles operating on expressways. The measure was introduced with the objective of reducing the number of fatalities resulting from the increasing number of road accidents and minimizing the severity of injuries caused by such accidents.Accordingly, a three-month concessionary period was granted from the date of publication of the Gazette notification for the installation of seat belts in seats that had not been fitted with seat belts by the vehicle manufacturer. This concessionary period ended on December 25, 2025.However, taking into consideration various public requests to further extend the concessionary period to allow vehicle owners additional time to install seat belts, steps were taken to extend the period again from March 20, 2026, to June 19, 2026.The Committee also discussed the inspection of the minimum standards and specifications relating to the technical condition of vehicles used for passenger transport services regulated by the National Transport Commission, Provincial Road Passenger Transport Authorities, or the Sri Lanka Transport Board. This included passenger transport services, school transport services, office transport services, and vehicles engaged in special tours operated on a hired basis, with the objective of ensuring their roadworthiness.The Orders published in Extraordinary Gazette No. 2489/22 dated May 19, 2026, introduced for this purpose, have also been approved by Parliament.With the increasing number of motor vehicles in Sri Lanka, the need to ensure road safety, environmental protection, and the technical fitness of vehicles has become increasingly important. During the Committee meeting, it was also noted that studies of road accidents occurring in Sri Lanka have revealed that serious traffic accidents are frequently caused not only by driver errors but also by mechanical defects and vehicle maintenance issues.The Chairperson requested Members of Parliament to take steps to raise awareness among vehicle owners and the general public regarding these matters.The meeting was attended by Dr. Prasanna Gunasena, Hon. Deputy Minister of Transport and Highways; Eranga Gunasekara, Hon. Deputy Minister of Urban Development, along with several Members of Parliament and government officials.
2026-09-14
The Subcommittee on Education Reforms met recently (Sep. 09) in Parliament under the chairmanship of Hon. Dr. Harini Amarasuriya, Prime Minister and Minister of Education, Higher Education and Vocational Education.The meeting focused on the progress of the General Education Reforms and Preschool Education Reforms scheduled to be implemented from 2027.It was stated that, as the initial step in implementing the General Education Reforms, activity books, teacher guides and modules required for Grades 2 and 6 have been prepared, while teacher training programmes are currently being conducted.It was also stated that plans are in place to include seven subjects, including History and Aesthetic Studies, for the G.C.E. Ordinary Level examination; introduce vocational education from Grades 10 and 11; and introduce modules on social cohesion, law and ethics for Grades 12 and 13.It was further announced that a series of awareness programmes on the new education reforms will be conducted in the future.The meeting also revealed that a National Preschool Education Policy has been formulated to formalize preschool education, and that work is underway on activities including the registration of preschools, preparation of curricula and teacher guides, and implementation of teacher training programmes.Hon. Dr. Madura Seneviratne, Deputy Minister of Education and Higher Education, along with Members of Parliament and a group of officials, participated in the meeting.
2026-09-08
The Co-Chairs of the Parliamentary Caucus for Open Parliament Initiative stated that steps will be taken to present to Parliament the views and proposals put forward during the “Voice to Policy” dialogue series organized for youth, with the aim of promoting the concept of an Open Parliament.They made these remarks while participating in the “Voice to Policy” programme held last Saturday (Sep. 05) at the Golden Crown Hotel in Kandy for youth in the Kandy District. The Co-Chairs of the Parliamentary Caucus for Open Parliament Initiative, Hon. Minister Prof. Krishantha Abeyasena and Hon. Member of Parliament Shanakiyan Rajaputhiran Rasamanickam, participated in the programme.The first programme of the “Voice to Policy” dialogue series was held in the Gampaha District, the second in the Batticaloa District, and the third in the Kandy District. Members of the Caucus, Hon. Members of Parliament S.M. Marikkar, Attorney-at-Law Susanta Dodawatte, Attorney-at-Law Chamindrani Kiriella, Attorney-at-Law Thushari Jayasinghe, Lal Premanath, Major General (Retired) G.D. Sooriyabandara and M.K.M. Aslam, as well as Assistant Secretary-General of Parliament Mr. Hansa Abeyratne and others, participated in the programme held in Kandy.The young people who participated in the programme representing the Kandy District identified the challenges they face under five key themes: economic opportunities and employment; public administration and accountability; social inclusion and justice; political participation and representation; and other matters.They also proposed solutions to the identified issues and identified the relevant government institutions that could be held responsible for addressing them. The young participants subsequently presented the issues and proposals to members of the Caucus. Based on these proposals, an extensive dialogue was held between representatives of the Parliamentary Caucus for Open Parliament Initiative and the youth of the Kandy District.Members of the Caucus stated that their objective is to bring the views and proposals of youth to Parliament. They further assured that steps would be taken to submit to Parliament a report containing the views and proposals presented during the “Voice to Policy” programmes conducted to date, and to take the necessary measures to further engage young people with parliamentary processes and activities.The programme was sponsored by CII (Coalition for Inclusive Impact).
2026-09-07
The Select Committee of Parliament to conduct a comprehensive study on the lack of preparedness to face Cyclone Ditwah and report to Parliament and submit its proposals and recommendations in that regard recently questioned senior officials of the Sri Lanka Police who were involved in responding to the disaster at the time.The questioning took place when the Committee met recently at Parliament under the chairmanship of Hon. Minister (Dr.) Nalinda Jayatissa.Accordingly, a group of Senior Superintendents of Police and Superintendents of Police from the districts affected by Cyclone Ditwah were summoned before the Committee.Former Member of Parliament Nimal Piyatissa was also summoned before the Committee. He was called to provide detailed information regarding comments he made to the media concerning the measures taken in response to the cyclone at the time it occurred.Members of Parliament serving on the Committee also participated in the meeting.
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