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.
2026-07-22
The draft Terms of Reference (ToR) prepared for the Parliamentary Caucus for Open Parliament Initiative was approved recently at a meeting held in Parliament with the participation of Parliament's development partner organizations.The approval was granted during a meeting of the Caucus chaired by its Co-Chair, Hon. Member of Parliament Shanakkiyan Rajaputhiran Rasamanickam.The draft Terms of Reference was developed based on proposals and recommendations received during a workshop organized by the Caucus in recent months to gather stakeholder input for its preparation.The meeting also agreed that, following the approval of the Terms of Reference, the document would be submitted to Hon. President, and that a discussion would be held with the President on behalf of the Caucus.
2026-07-22
The Sub-Committee appointed by the Committee on Public Enterprises (COPE) focused its attention on the methodology, implementation timeline and coordination arrangements relating to the research study proposed for the restructuring of the Sri Lanka Institute of Advanced Technological Education (SLIATE), when it met recently, at Parliament under the Chairmanship of Hon. Member of Parliament Ruwan Mapalagama.During the meeting, discussions were held on the establishment of the proposed Institutional Operations Committee and a six-member Coordination Team to facilitate the implementation of the research. Attention was also focused on the proposed Mixed-Methods Design, the preparation of questionnaires and the data collection process.The Sub-Committee further reviewed the progress of obtaining public views on the restructuring of SLIATE. Matters relating to obtaining the contribution of the Human Resources and Management Information Systems (MIS) divisions for the research, the preparation of the research implementation timeline through a Gantt Chart, and the stakeholder consultations to be held with representatives of the industry sector were also considered.The programme to obtain the views of stakeholders, including Chambers of Commerce, industry associations and professional bodies, as well as the conduct of field visits to selected SLIATE institutions across the country, was also discussed.The Sub-Committee decided to proceed with the future activities of the research in accordance with the agreed timeline and to present the relevant progress reports at its next meeting.Hon. Member of Parliament Lieutenant Commander (Retired) Prageeth Madhuranga also attended the meeting.
2026-07-22
The Committee on Public Enterprises (COPE) focused its attention on referring the matters revealed in relation to land misuse, financial irregularities and administrative deficiencies at the National Housing Development Authority (NHDA) to the Criminal Investigation Department (CID) and the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) for a formal investigation.The matter was taken up when the Committee met recently at Parliament under the Chairmanship of Hon. Member of Parliament (Dr.) Nishantha Samaraweera to continue its examination of the Auditor General's Reports for the years 2022 and 2023 and to consider the remaining matters relating to the current performance of the National Housing Development Authority.During the meeting, lengthy discussions were held regarding the leasing of valuable NHDA-owned lands located at Maligawatta, Elvitigala Mawatha and Rangirigama, Dambulla to external parties at low nominal values without Cabinet approval, the use of such lands for purposes contrary to the conditions stipulated in the relevant agreements, and the failure to adequately safeguard the Authority's assets.The Committee observed that many of these transactions had been carried out in contravention of the objectives of the National Housing Development Authority and the relevant legal provisions. Accordingly, the Committee recommended that comprehensive reports on the identified irregularities be referred to the Criminal Investigation Department and the Commission to Investigate Allegations of Bribery or Corruption for the institution of appropriate legal action.The Committee also instructed the officials to expedite internal audit investigations into these matters, identify the officers responsible and initiate disciplinary action against them. Furthermore, the Committee recommended that the necessary measures be taken to strengthen asset management and internal control systems in order to prevent the recurrence of such irregularities in the future.The meeting was attended by Hon. Members of Parliament Attorney-at-Law Dayasiri Jayasekara, S.M. Marikkar, Attorney-at-Law Sujeewa Senasinghe, Mujibur Rahman, Chaminda Wijesiri, Dr. S. Sri Bavanandarajah, Sunil Rajapaksha, Thilina Samarakoon, Chandima Hettiarachchi, Asitha Niroshana Egodavithana, Ruwan Mapalagama, Jagath Manuwarna, Dinesh Hemantha, M.K.M. Aslam and Sudath Balagalla.
2026-07-21
Discussions focus on strengthening disability-inclusive legislation and policy implementationThe Parliamentary Caucus for Persons with Disabilities held discussions with the United Nations Resident Coordinator and representatives of several United Nations agencies at Parliament with a view to strengthening cooperation in promoting the rights of persons with disabilities and advancing disability-inclusive legislation and policies in Sri Lanka.The meeting was held in Parliament under the Chairmanship of the Chair of the Parliamentary Caucus for Persons with Disabilities, Hon. Member of Parliament Sugath Wasantha de Silva recently.Addressing the meeting, the United Nations Resident Coordinator, Mr. Marc-André Franche, commended the Parliament for establishing the Parliamentary Caucus for Persons with Disabilities and emphasized the importance of treating disability inclusion as a national priority across all sectors. He reaffirmed the commitment of the United Nations to provide technical expertise and institutional support in areas including legislative reforms, accessibility, inclusive education, employment, community-based rehabilitation and strengthening national coordination.The UNICEF Representative, Ms. Begoña Arellano, highlighted the need to safeguard the rights of children with disabilities, particularly in relation to health, nutrition and education, while emphasizing the important oversight role of Parliament in ensuring the effective implementation of disability-inclusive policies.Representatives of UNFPA, UNDP, ILO and UN Volunteers also briefed the Caucus on ongoing initiatives relating to youth, education, disability data collection, employment opportunities and social inclusion.During the meeting, the Minister of Rural Development, Social Security and Community Empowerment, Hon. (Dr.) Upali Pannilage, informed the Caucus that the proposed Rights of Persons with Disabilities Bill and the Sign Language Bill are currently with the Attorney General's Department and are expected to be presented to Parliament on September 2026. He further stated that measures are underway to improve accessibility in public institutions, expand employment opportunities, introduce educational grants for university students with disabilities and establish ten day-care centres for children with disabilities within this year.The Caucus also discussed future initiatives, including the preparation of disability-inclusive budget proposals by Government Ministries, the finalisation of a national disability database and the conduct of a sensitisation programme for journalists to promote a rights-based approach to disability related reporting.The meeting concluded with the Chair, Hon. Sugath Wasantha de Silva, reiterating the Caucus's core theme, "An unhindered social life," and calling for continued, unified collaboration to make an inclusive society a reality.The meeting was attended by the Deputy Co-Chairs of the Caucus, Hon. Gayantha Karunathilleka, and Hon. (Dr.) Pathmanathan Sathiyalingam, the Minister of Rural Development, Social Security and Community Empowerment, Hon. (Dr.) Upali Pannilage, Members of Parliament and representatives of the United Nations Resident Coordinator's Office, UNFPA, UNICEF, UNDP, ILO and UN Volunteers.
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