2023-11-30
News Categories : Committee News
The Committee on Public Finance took into consideration the Value Added Tax (Amendment) Bill which aims to remove VAT exemptions on certain items and includes provisions to discontinue the Simplified VAT (SVAT) system.
Official representing the Ministry of Finance stated that agricultural machinery and other equipment including chemical fertilizer which was listed as exempted previously will be VAT liable under the said Bill. Adding to the said, officials stated that agricultural seeds, agricultural plants, shrimp feed inclusive of prawn feed and animal feed excluding poultry feed will however be exempted from VAT.
Thus, the Committee questioned the rationale behind including VAT for agricultural items which will impact the domestic agricultural and food industry. The aforesaid was taken up for discussion at the Committee on Public Finance held recently (Nov. 28) in Parliament, Chaired by Hon. (Dr.) Harsha de Silva when the Committee met to consider the Value Added Tax (Amendment) Bill, The Finance Bill to amend the Finance Act, No. 35 of 2018 and the Finance Act, No. 12 of 2012 and the Imports and Exports Control Act pertaining to the Gazette No. 2353/16.
Furthermore, dairy products such as liquid milk and eggs will also be liable for the VAT. However, the Ministry of Finance stated that wheat, wheat flour or powdered milk, pharmaceutical products, drugs will be exempted. The Committee questioning the officials inquired why food products made out of grains cultivated in Sri Lanka, identified as high protein and high energy agro foods falling in the category of “Posha” is subjected to VAT in a context where Child malnourishment is considered to be on the rise.
The Committee questioned the officials as to why ambulances and medical equipment are being subjected to VAT. After thoroughly examining the Value Added Tax (Amendment) Bill, the Committee has granted approval, contingent upon the Ministry of Finance incorporating the amendments proposed by the Committee on Public Finance, provided they are in accord. Nevertheless, the Committee has urged the officials present to reevaluate VAT exemptions for medical equipment, ambulances, fertilizer, and food products derived from grains classified as high-protein agro foods and agricultural items.
The Committee of Public Finance further revealed that the elimination of VAT exemptions will not impact the fares of UBER and PickME. Dr. Harsha de Silva, the Committee Chair, emphasized that as UBER and PickME have included VAT since their inception, contrary to other beliefs, thus the proposed VAT changes will only result in a 3% rise without significantly affecting the ultimate fare that customers are required to pay.
The Committee on Public Finance also took into consideration the Finance Bill to amend the Finance Act, No. 35 of 2018 and the Finance Act, No. 12 of 2012 which propose provisions to release motor vehicles imported into Sri Lanka which were not cleared from customs due to import restrictions or non-payment of taxes. However, given the matters arising from importing and opening LCs post the suspension of motor vehicle imports by Gazette Extraordinary No. 2176/19 dated May 22, 2020, under the Import and Export Control Act, the Committee Chair instructed the Ministry of Finance to submit a report on the provisions to release 119 imported vehicles yet to be cleared from customs. The Committee thus decided to reconsider the said from thereon.
Moreover, following the consideration of the Imports and Exports Control Act pertaining to the Gazette No. 2353/16, the Committee approved the said.
State Ministers Hon. Shehan Semasinghe, Hon. (Dr.) Suren Raghavan, Members of Parliament, Hon. Patali Champika Ranawaka, Hon. Nimal Lanza, Hon. Isuru Dodangoda, Hon. Madhura Withanage, Hon. Mahindananda Aluthgamage, Hon. Wajira Abeywardana, Hon. Harshana Rajakaruna, were present at the Committee meeting held.
2026-05-26
The Central Provincial Council was summoned before the Committee on Public Accounts (COPA) to examine the Auditor General’s triennial report for the years 2021–2023, the Auditor General’s report for 2024, and the Council’s current performance.The committee meeting, chaired by Hon. Member of Parliament Kabir Hashim, was held recently at Parliament.During the meeting, attention was drawn to the progress made in implementing recommendations issued at the COPA meeting held on 5th September, 2019. Discussions focused on the incident involving the destruction of files belonging to the Central Provincial Passenger Transport Authority.It was revealed that directives issued by the relevant court and the Presidential Secretary regarding the incident had not been implemented by the responsible authorities. In this regard, the Committee Chairman instructed officials of the Central Provincial Council to submit all reports and correspondence related to the incident to the committee.In addition, the committee discussed an incident involving the unlawful transfer of a rest house owned by the Road Development Authority to a third party in violation of lease conditions. Accordingly, the Chairman instructed officials to identify the officers responsible for making the relevant decisions and to submit a report to the committee on the legal action being taken in connection with the matter.The committee also held extensive discussions on irregularities identified by the National Audit Office in road development and passenger transport services in the Central Province, as well as issues affecting the health sector.Expressing his views during the meeting, the Chairman emphasized the importance of expediting ongoing investigations within institutions and focusing on follow-up action. He further stressed that if a state institution generates profits, such profits should accrue to the government, and if such revenue is used for institutional activities, established legal provisions and procedures must be strictly followed.The meeting was attended by committee members Hon. Members of Parliament Dr. M.L.A.M. Hizbullah, Ruwanthilaka Jayakody, Attorney-at-Law Thushari Jayasinghe, Sunil Rathnasiri, Oshani Umanga, Susantha Kumara Navarathna, Ajantha Gammeddage, Chanaka Madugoda, T.K. Jayasundara and Lal Premanath along with a group of government officials.
2026-05-26
The Parliamentary Select Committee of Parliament to look into and report to Parliament on the matter of selecting the Electoral System under which the Provincial Council Elections should be held and submit its proposals and recommendations in that regard, recently sought views from the Attorney General’s Department and members of the Election Commission.The discussion took place when the committee met in Parliament under the chairmanship of Hon. Minister Vijitha Herath.During the meeting, the Attorney General’s Department briefed the committee on the existing legal obstacles to holding Provincial Council elections and the possible ways in which such obstacles could be removed to facilitate the conduct of the elections.The Election Commission informed the committee that it is prepared to conduct Provincial Council elections at any time under the legal provisions enacted by Parliament based on the committee’s recommendations.The meeting was attended by Hon. Deputy Ministers Arun Hemachandra, Sunil Watagala, Attorney-at-Law and Muneer Mulaffer as well as committee members Hon. Members of Parliament Mano Ganesan, Shanakiyan Rajaputhiran Rasamanickam, Dharmapriya Wijesinghe, Samanmali Gunasinghe and Lakshman Nipuna Arachchi. The committee member M. Nizam Kariapper, P.C also participated virtually.
2026-05-25
The Women Parliamentarians’ Caucus has decided to examine the ongoing legal proceedings and matters relating to the protection of the girl involved in the sexual abuse incident reported from the Anuradhapura area.This decision was taken during the Women Parliamentarians’ Caucus meeting chaired by Hon. Minister Saroja Savithri Paulraj, held in Parliament today (May 25). Accordingly, a special discussion has been scheduled for 05.06.2026 with the participation of relevant institutions including the Sri Lanka Police, the Attorney General’s Department, the National Child Protection Authority and the Department of Probation and Child Care Services.In addition to the incident, which has generated significant public concern, the discussion is also expected to focus extensively on strengthening the laws and empowering the institutions required to prevent all forms of violence against women and children.Meanwhile, it was also decided to appoint a subcommittee under the Women Parliamentarians’ Caucus to oversee the future legal proceedings relating to the Anuradhapura girl’s case and to identify the institutional and legal reforms required in the country to eliminate violence against women and children.The subcommittee will be led by the deputy co-chairs of the Women Parliamentarians’ Caucus Hon. Members of Parliament Samanmali Gunasinghe and Attorney-at-Law Chamindrani Kiriella. The other members of the subcommittee will be Hon. Hemali Weerasekara, Dr. Kaushalya Ariyarathna, Attorney-at-Law Sagarika Athauda, Attorney-at-Law Nilanthi Kottahachchi, Attorney-at-Law Nilusha Lakmali Gamage, Attorney-at-Law Thushari Jayasinghe, Attorney-at-Law Anushka Thilakarathna, Attorney-at-Law Hasara Liyanage, Attorney-at-Law Hiruni Wijesinghe and Attorney-at-Law Lakmali Hemachandra.
2026-05-25
The progress of implementing the new education reforms was reviewed at a recent meeting of the Sectoral Oversight Committee on Education, Manpower and Human Capital, chaired by Hon. Member of Parliament Hesha Withanage Ankumbura Arachchi. During the meeting held in Parliament on the 19th, extensive discussions were held on the implementation of the new education reforms.Secretary to the Ministry of Education, Higher Education and Vocational Education, Mr. Nalaka Kaluwewa, briefed the committee on the manner in which the new education reforms are being implemented.The meeting was attended by Hon. Leader of the Opposition Sajith Premadasa, committee members, provincial education secretaries, school principals, and several other officials.
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