2023-11-30
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.
2026-09-07
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.
2026-09-07
The 13th meeting of the Parliamentary Caucus for Persons with Disabilities was held recently at Parliament under the chairmanship of Hon. Sugath Wasantha de Silva, Chair of the Caucus.The meeting focused on the draft action plan of the Caucus prepared for the period from July 2026 to June 2027, and discussions were held on its implementation going forward.Prepared with the technical assistance of the International Foundation for Electoral Systems (IFES), the action plan has been developed under four key areas: parliamentary coordination and oversight; budget advocacy and accountability; legal and policy reforms; and accessible and inclusive public services. The meeting discussed future actions relating to each of these areas.IFES Sri Lanka Deputy Director Mr. Indraka Ubesekara, Senior Programme Officer Ms. Anojitha Sivaskaran, and National Council for Persons with Disabilities member Mr. Tikiri Kumara Jayawardena briefed the Caucus on the work carried out to date and the plans for the future.The importance of incorporating the views and needs of persons with disabilities into planning at the local level was also highlighted. Based on the experiences of district-level consultation programmes conducted in Kilinochchi, Mullaitivu, Kalutara and Polonnaruwa, it was noted that a similar programme is scheduled to be held in the Hambantota District in the future.Discussions were also held on establishing an appropriate mechanism to ensure the active participation of the disability community in the preparation of local development plans through district-level accessibility audit committees and district coordinating committees. It was further pointed out that incorporating accessibility features from the initial stages of building and urban planning can help minimize the costly modifications that may otherwise be required at a later stage.The meeting was also informed that a report comprising 234 policy and practical proposals, prepared with the participation of nearly 60 organizations representing the disability community for the 2027 National Budget, has already been submitted to the Presidential Secretariat, the Ministry of Finance and relevant government institutions. The Caucus decided to closely monitor how these proposals are implemented and whether they result in tangible benefits for persons with disabilities.Attention was also drawn to further strengthening the existing legal and policy framework to safeguard the rights of persons with disabilities and ensure accessibility. It was decided to hold a special discussion with officials of the relevant ministries and the Legal Draftsman’s Department to inquire into the progress of the proposed “New Bill on the Rights of Persons with Disabilities” and the “Sign Language Bill”, which are currently being drafted.The meeting also discussed the need to update existing legal provisions and standards relating to accessibility for persons with disabilities in line with international best practices. Proposals were put forward to introduce accessibility guidelines for private-sector institutions and gradually incorporate them into the legal framework, as well as to implement a pilot project with several selected private institutions.Special attention was also given to making public services more accessible and inclusive. The meeting discussed the findings of accessibility audits conducted at the Ministry of Labour’s “Mehewara Piyasa” building and Sethsiripaya Buildings Phases I and II. It was also noted that steps have been taken to ensure that the construction of Sethsiripaya Phase III is designed to be accessible to persons with disabilities from the outset.In addition, programmes such as low-floor bus services, accessible tourism for persons with disabilities, and the “Friendly Cities” programme were identified as models for improving accessibility within public services. Attention was also drawn to removing accessibility barriers faced by persons with disabilities when accessing healthcare services.Addressing the meeting at its conclusion, the Chair of the Caucus, Hon. Sugath Wasantha de Silva, stated that one of the Caucus’s primary objectives is to create an environment in which the disability community can lead free, independent and dignified lives without fear or uncertainty.The Chair further stated that Parliament would continue to fulfil its role in giving priority to the voices of persons with disabilities when making decisions concerning them, and in ensuring their participation in every sector of society. He also expressed his appreciation to all Members of Parliament, IFES and other stakeholders who have contributed to this work.The meeting was attended by Hon. Members of Parliament, including (Dr.) Nihal Abeysinghe, Attorney-at-Law Susantha Dodawatte, Padmasiri Bandara, (Dr.) Elayathamby Srinath, Attorney-at-Law Bhagya Sri Herath and Chandima Hettiarachchi, among others.
2026-09-03
The Committee on Ways and Means of Parliament recently reviewed the operations of Sri Lanka Customs, including its revenue performance. The matter was considered when the Committee met recently under the chairmanship of Hon. Member of Parliament Wijesiri Basnayake.Officials, including the Director General of Customs, informed the Committee that the expected Customs revenue as of June 30, 2026, was Rs. 1,060,559 million, while actual revenue collected by that date amounted to Rs. 1,379,084 million. This represented 130% achievement against the expected revenue target. Officials further informed the Committee that Customs had generated revenue exceeding the monthly targets in every month of the year to date, and that, compared with 2025, higher revenue performance had been recorded in each month.Providing information on vehicle imports in 2026, officials stated that 316,000 vehicles had been imported as of June 30, 2026, generating Rs. 512,547 million in tax revenue. According to the information presented to the Committee, the highest amount of tax revenue, Rs. 386,726 million, had been generated through the importation of motor vehicles.Furthermore, among the categories of commodities generating the highest Customs revenue, petrol motor cars less than 1,000cc ranked first, generating Rs. 137.4 billion. This represented 9.96% of total revenue.The Committee also focused on matters including the volume of imported containers and the procedures followed for their inspection, the introduction of modern technology to improve the efficiency of Sri Lanka Customs operations, challenges in revenue administration, and future plans.Several Members of the Committee on Ways and Means, together with officials representing the Ministry of Finance, Planning and Economic Development and Sri Lanka Customs, participated in the Committee meeting.
2026-09-03
The Ministerial Consultative Committee on Public Security and Parliamentary Affairs focused its attention on a number of matters relating to ensuring public security, curbing illegal activities, and enhancing the efficiency of the police service.This was discussed when the Ministerial Consultative Committee on Public Security and Parliamentary Affairs met in Parliament on the Aug. 21st, under the chairmanship of Hon. Minister Ananda Wijepala.The Committee paid particular attention to measures taken by the Police to combat cybercrime, illegal online gambling activities and fraud. Officials stated that steps had been taken to block websites associated with illegal gambling and other unlawful activities.It was also revealed that legal action had been taken against foreign nationals residing in Sri Lanka who were engaged in illegal activities related to cybercrime. Officials further stated that arrangements had been made to deport such foreign nationals in coordination with the embassies of the respective countries.Officials appearing before the Committee stated that steps had been taken to recruit software engineers and lawyers to strengthen the human resources required for cybercrime investigations, particularly in terms of technical and legal expertise. They also noted that arrangements were being made to provide newly recruited officers with field training as well as the necessary overseas training.Discussions were also held on the need to introduce new technological systems and establish a centralized system capable of operating in real time in order to make investigations into cybercrime and financial fraud more efficient. It was particularly noted that necessary coordination measures were being undertaken to minimize existing barriers to sharing data with foreign institutions in relation to crimes involving the use of cryptocurrencies.Furthermore, extensive discussions were held on the current status of information received through Community Security Committees, measures to prevent sensitive information received through these committees from being disclosed externally, and further strengthening community policing services.In addition, the Committee emphasized the importance of expediting police investigations to curb illegal activities while upholding the rule of law, making greater use of modern technology, and obtaining further public support.A number of officials, together with Members of the Committee, participated in the Committee meeting.
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