2023-12-09
News Categories : Committee News
The Asia Internet Coalition (AIC), which represents key players in the internet industry and promotes the understanding and resolution of internet policy issues in the Asia-Pacific region, disclosed that the international standard for adopting VAT on software and digital service providers is based on the jurisdiction of the consumer, not the jurisdiction under which a particular business operates.
The afore stated matters were discussed when the Committee on Public Finance (COPF) took into consideration the impact of the implementation of provisions of the Value Added Tax (Amendment) Bill on domestic software and digital operators.
As an extension to a concern raised at the previous CoPF held, domestic and international software & digital service providers such as PickMe, Uber, AIC (representing Meta, Google, X, Booking.com, Amazon, etc) and Daraz were called before the Committee on Public Finance held recently (Dec. 07) Chaired by Member of Parliament Hon. (Dr.) Harsha de Silva.
It was disclosed that all such software and digital service providers are exempted from the application of VAT at present and with the Value Added Tax (Amendment) Bill coming into effect from the 1st of January 2024, all such exemptions will be removed and the applicability of such provisions will put on-shore service providers at a disadvantage as opposed to businesses that operate offshore.
The Committee was of the view that such a policy decision would discourage businesses from operating on-shore and thereby cause such businesses to move off-shore impacting government revenue and deterring new start-ups and digital service providers. Accordingly, the Committee directed the officials of the Ministry of Finance to look into the growing concern with the assistance of The Asia Internet Coalition (AIC) and to report to the Committee on a way forward on or before the 31st of December 2023.
Moreover, the Committee also took into consideration five Orders and a Resolution. Accordingly, the Resolution under Section 10 of the Customs Ordinance published in the Gazette Extra Ordinary No. 2347/06, and five Orders under the Special Commodity Levy Act, No. 48 of 2007 published under the Gazette Extra Ordinary Nos. 2345/64, 2346/16, 2348/44 and 2353/77 were taken up for discussion and approved by the Committee on Public Finance.
The Committee was of the view that the Ministry of Finance must have an in-depth analysis carried out with the assistance of all relevant institutions before making policy decisions related to the increase and decrease of taxes that impact vital essentials such as wheat and green gram.
Furthermore, the Committee also took into consideration the Regulations under the Colombo Port City Economic Commissions Act, No. 11 of 2021 pertaining to the Down – Town Duty Free intended to be established at the Port City Colombo.
Accordingly, the downtown duty-Free mall targets 70% of tourist consumers mainly from China and India, and will consist of premium luxury brands with 25 product categories including global brands.
Upon careful consideration by the Committee on Public Finance, it was observed that certain provisions stating which items can be imported under the Regulation are in the form of rules that are not legally binding. Therefore, the Committee believes that the Regulation needs to be revisited to avoid any gaps that may arise and prevent people from exploiting it. Accordingly, the members of the Colombo Port City Commission were instructed to rectify the discussed issues and present the revised version to the Committee.
State Minister Hon. (Dr.) (Mrs.) Seetha Arambepola and Members of Parliament Hon. Chandima Weerakkody, Hon. Mahindananda Aluthgamage, Hon. Wajira Abeywardana, Hon. Nimal Lanza, Hon. Premnath C. Dolawatte, Hon. Madhura Withanage were present at the Committee meeting held.
2025-11-27
The appointments of three chairmen of state-owned institutions were approved by the Parliamentary Committee on High Posts yesterday (Nov. 26).Accordingly, the appointments of Dr. D.B.P.H. Dissabandara as the Chairman of the Securities and Exchange Commission of Sri Lanka, Mr. M.D.C.A. Perera as the Chairman of the National Lotteries Board, and Eng. P.V.A. Hemalal, as the Chairman of Kahatagaha Graphite Lanka Limited, were approved by the Committee on High Posts.The meeting was chaired by Hon. Prime Minister, Dr. Harini Amarasuriya, and a group of members of the committee participated in this meeting.
2025-11-27
The Chair of the Sectoral Oversight Committee on Governance, Justice and Civil Protection, Hon. Member of Parliament (Dr.) Najith Indika, stated that the National Dangerous Drugs Control Board must take the lead in streamlining the procurement process and easing existing legal barriers related to importing equipment used to test drivers for drug use.These matters were taken up during the Sectoral Oversight Committee on Governance, Justice and Civil Protection, which met in Parliament on 20th November 2025 under the chairmanship of Hon. MP (Dr.) Najith Indika.The Committee reviewed the progress of the 2025 budget proposals and special project implementations of the Ministry of Public Security & Parliamentary Affairs and the Ministry of Public Administration, Provincial Councils & Local Government.Officials from the Sri Lanka Police Narcotics Bureau highlighted the difficulties in conducting roadside drug tests due to the lack of necessary equipment.The Committee Chair noted that the government has prioritized eliminating drug abuse and stressed the importance of regulating drivers who operate vehicles under the influence of drugs. He further stated that essential equipment required to identify drug users must be made readily available and that legal barriers affecting their procurement process and importation should be addressed promptly.Police officials also informed the Committee that notable progress has been made in implementing budgeted programmes related to drug prevention. Officials from the National Dangerous Drugs Control Board briefed the Committee on the progress achieved under their purview as well.The Committee additionally reviewed the progress of the 2025 budget proposals of the Ministry of Public Administration, Provincial Councils & Local Government. The Ministry Secretary reported significant progress and noted that many suspended development projects have now resumed.Hon. Members of Parliament G.G. Ponnambalam, Mujibur Rahman, Attorney-at-Law Thushari Jayasinghe, and Dharmapriya Wijesinghe were also present at the committee meeting.
2025-11-26
The Sectoral Oversight Committee on Education, Manpower and Human Capital has examined the operation of private universities in Sri Lanka and the issues relating to their recognition by the University Grants Commission (UGC).The matter was discussed when the Committee met in Parliament on 21 November 2025, under the chairmanship of Hon. Member of Parliament Hesha Withanage.During the discussion, the Committee Chair highlighted the emergence of institutions awarding degrees of inadequate quality and the resulting harm caused. He noted that many such institutions operate with profit-making as their primary objective rather than providing quality education. The Chair stressed the importance of ensuring that the entire process, from student admission to awarding of degrees remains under the supervision of the UGC.The Vice Chair of the UGC, expressing his views, underscored the need to establish a Higher Education Commission to regulate and monitor private universities and other degree-awarding institutions. He explained that such a body would enable the creation of comprehensive data systems and facilitate links with universities worldwide, allowing access to essential information on institutional standards and programme quality. This, he noted, would help ensure accurate decision-making when granting approval to prospective private universities. These comments were further supported by the Additional Secretary (Non-State Higher Education) of the Ministry of Education, Higher Education and Vocational Training, and by officials of the UGC.The Committee also focused on issues related to state universities, scholarships offered for foreign degree programmes, and other related matters.Hon. Members of Parliament Krishnan Keleichelvi, Nilusha Lakmali Gamage (Attorney-at-Law), Chanaka Madugoda, Thurairasa Ravikaran, and Sunil Rajapaksha, along with officials from the Ministry of Education, Higher Education and Vocational Training and the UGC, were present at the discussion.
2025-11-26
The Sectoral Oversight Committee on Governance, Justice and Civil Protection recently (Nov. 18) reviewed 12 performance reports and annual reports of institutions functioning under the Ministry of Justice and National Integration.The Committee met in Parliament on the 18th under the chairmanship of Hon. Member of Parliament Dr. Najith Indika.Accordingly, the Committee examined the 2022, 2023 and 2024 performance reports of the Registrar’s Office of the Supreme Court, the 2023 and 2024 performance reports of Judges of Supreme Court, the 2022 Annual Report of the Supreme Court Complex Management Board, the 2022 and 2023 Annual Reports of the National Authority for the Protection of Victims and Witnesses of Crime, and the 2023 and 2024 Annual Reports of the Department of Community Based Corrections.In addition, the Committee reviewed the 2022 and 2023 Annual Reports of the Legal Aid Commission of Sri Lanka, the 2023 and 2024 Annual Reports of the Department of Official Languages, the 2020,2021,2022 & 2023 Annual Reports of the Official Languages Commission, the 2022 and 2023 Annual Reports of the National Institute of Language Education and Training, the 2023 and 2024 Annual Reports of the Department of Prisons, the 2023 and 2024 Annual Reports of the Prisoners’ Welfare Fund, and the 2023 and 2024 Annual Reports of the Debt Conciliation Board.The Committee also inquired into audit observations related to these institutions, and relevant officials presented their explanations. Attention was also drawn to the current activities of these institutions, as well as existing issues and shortcomings. The Committee Chair informed officials to notify the Committee if amendments to the legal framework governing these institutions were necessary to ensure more efficient service delivery, and assured the Committee’s support in facilitating such changes.Further, regarding the 2024 Annual Performance Report of the Department of Community Based Corrections, it was noted that the Auditor General’s report highlighted the incomplete construction of the building for the Legal Aid and Community Correctional Office in Puttalam. The Committee requested a report on this matter.Accordingly, approval of the Committee was granted for all performance and annual reports reviewed, except for the 2023 and 2024 Annual Performance Reports of the Department of Community Based Corrections.Hon. Members of Parliament Mujibur Rahman, Attorney-at-Law Thushari Jayasinghe, and Major General (Retd.) G.D. Sooriyabandara, along with a group of government officials, participated in the Committee meeting.
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