2023-12-12
News Categories : Committee News
The Committee on Ways and Means of the Parliament directed the officials of Excise Department to suspend the liquor production license of the liquor manufacturing company that has not paid the due tax installment on 04.12.2023 according to the installment plan to pay the arrears of excise duty.
Furthermore, the committee asked why the relevant report was not provided by the Inland Revenue Department (IRD) as per the order made by the committee on 24.07.2023 to provide a list of tax payers whose taxes are 100 million rupees or more in arrears as of June 30, 2023. The related report was requested from the IRD in two sessions of the committee meetings, but so far it has not been received, the committee chair said. The IRD officials stated that they have sought the opinion of the Attorney General in that regard and the committee ordered the officials to provide the list to the committee before December 31 2023.
The Committee expressed its displeasure regarding not providing reports related to some of the recommendations given in relation to the Inland Revenue Department, asking for time, and not implementing the recommendations.
This was discussed when the Committee on Ways and Means met recently (06) under the chairmanship of Hon. Patali Champika Ranawaka.
The government had banned the import of wheat flour for companies other than Prima and Serendib, the main wheat importing companies, and during the ban, these two companies had accumulated large stocks of flour, and the committee emphasized that these companies have made a considerable profit by imposing a tax of Rs. 16/- per kg on wheat flour after the ban was lifted.
Furthermore, it was also discussed that by increasing the special commodity tax for sugar from 25 cents to 50 rupees, the relevant companies have earned a considerable amount of unfair profit by releasing nearly 8500 tons of sugar that had been imported and stored in the market. Therefore, in accordance with the provisions of the Inland Revenue Act No. 24 of 2017, the committee again directed to take immediate steps to collect the prescribed tax related to the improper profit thus earned from the relevant parties in the above 3 cases.
In order to recover the arrears of the taxpayers who are evading taxes, the committee advised to prepare a tax collection plan to recover the amount of 173 billion rupees in collectable taxes. The Chairman of the Committee recommended that the Ministry of Finance and the Inland Revenue Department should prepare this together and implement it before December 31.
Among the 39 recommendations made to the Excise Department, the committee questioned why the recommendation of the committee to increase the license renewal fee to a minimum of 10 million rupees has not been implemented so far. Also, the committee questioned the fact that although the committee had ordered to provide the committee with a list of individuals and companies in possession of more than one liquor license in one district, that order had not been implemented. The officials of the Excise Department stated that according to the data system of the Excise Department, it shows that there are no individuals and companies in possession of more than one liquor license in a district, and the Committee directed the Excise Department to inform the Committee in writing.
Furthermore, the Excise Department stated that there are currently 46 toddy production plants and a mobile app has been introduced as per the order made by the committee to prepare a system to monitor the 46 production plants on a daily basis and to calculate their daily production. The committee chair instructed the officers to present the mobile app to the committee.
Emphasizing the need to add artificial intelligence (AI) to scanners in the customs technical system, the chairman of the committee advised the officials to prepare a proposal for this under a public private joint project model under the guidance of IT consultants with the Ministry of Finance.
A follow-up on Disaster Management, Welfare Benefit Scheme and Social Services Department's survey involving urban beggars was also discussed in the Committee on Ways and Means.
Officials from the Ministry of Finance, Ministry of Defense, Inland Revenue Department, Excise Department, Sri Lanka Customs, Welfare Benefits Board were summoned for this committee. Members of Parliament Hon. Ashok Abeysinghe, Hon. Sanjeeva Edirimanna, Hon. Ishaq Rahman and Hon. Sudath Manjula were also present.
2026-07-08
The Committee on Public Finance (CoPF) has approved the submission to Parliament of a Resolution under the Customs Ordinance and two Orders under the Sri Lanka Export Development Act, following its consideration.The decision was taken at a meeting of the Committee held in Parliament on 6th July, chaired by Hon. Member of Parliament Dr. Harsha de Silva.Accordingly, the Committee considered the Resolution published in Extraordinary Gazette No. 2478/03 under the Customs Ordinance (Chapter 235), as well as the Orders published in Extraordinary Gazette Nos. 2478/04 and 2479/38 under the Sri Lanka Export Development Act. Officials representing the Ministry of Finance, Sri Lanka Customs, and the Sri Lanka Export Development Board (EDB) attended the meeting.In line with the 2026 Budget proposal to implement the National Tariff Policy, the existing customs import duty rates of 0%, 15% and 20% on imported goods have been restructured into a four-band system of 0%, 10%, 20% and 30%, effective 1 April 2026.Committee discussions emphasized that these amendments are not merely changes to tax rates, but mark the beginning of implementing a National Tariff Policy that will shape Sri Lanka's trade and investment environment over the coming decade. Officials explained that the principal objective of the policy is to establish a scientific and predictable tariff structure that will enable Sri Lanka to integrate more effectively into global supply chains.Under the policy, a new four-band tariff structure based on the United Nations Broad Economic Categories (BEC Revision 5) classification is proposed, requiring the reclassification of numerous HS tariff codes. The new tariff framework will classify imports under four principal categories—capital goods, intermediate goods, sensitive intermediate goods, and consumer goods—while also balancing the objectives of protecting domestic industries and maintaining stable government revenue.It was also revealed that, to provide relief to the construction sector, the current effective import tax rate on ceramic tiles, which stands at approximately 85–90%, will be reduced in stages to 20% by 2029. This is expected to lower construction costs and encourage investment in housing and infrastructure.The Government also proposes introducing new national tariff sub-categories for various sectors in response to requests from domestic industries.Officials further noted that the Government aims to gradually phase out para-tariffs such as the CESS and the Ports and Airports Levy (PAL) by 2029, moving towards a simpler tariff regime. The Committee also advised officials to consider measures to mitigate any adverse impacts that may arise from tariff liberalization.It was noted that these tax reforms are expected to support the Export Development Board's objective of doubling Sri Lanka's export earnings from US$18 billion to US$36 billion over the next five years. The policy is also expected to provide a strong foundation for integrating Sri Lanka into global supply chains, particularly in the electronics, rubber products, pharmaceuticals, and information technology sectors.The Committee also expressed serious concern over delays in updating trade data. The Chair observed that the Department of Trade and Investment Policy's trade database had not been updated since 2021, and instructed the relevant officials to update all trade data and related information required for evidence-based policymaking within one week.The Gazette notifications are scheduled to be debated in Parliament today (8 July), following which they are expected to be submitted for Parliamentary approval.The meeting was attended by Hon. Deputy Minister Chathuranga Abeysinghe, Hon. Deputy Minister Dr. Kaushalya Ariyarathna, and Hon. Members of Parliament Ravi Karunanayake, Harshana Rajakaruna, and Attorney-at-Law Lakmali Hemachandra.
2026-07-08
Hon. Minister of Transport, Highways and Urban Development Bimal Rathnayake stated that the Government will introduce a Cluster Bus Company System to improve public transportation, adding that Cabinet approval for the initiative was recently granted.The Minister made these remarks yesterday (7th July) while chairing the meeting of the Ministerial Consultative Committee on Transport, Highways and Urban Development in Parliament.He further stated that the scheme will initially be implemented as a pilot project on bus routes 177, 170 and 190.The Minister also said that the previous four categories of bus services; normal, semi-luxury, luxury and super-luxury have been streamlined by removing the semi-luxury and super-luxury categories. Referring to the Semi-Luxury category, the Minister stated that a related court case is currently pending and that the relevant facts will be presented before the court.Minister Rathnayake further pointed out that it is not equitable to apply a single fare formula to both long-distance and short-distance bus services. Given the higher operating costs associated with long-distance services, a separate methodology will be introduced to determine fares for long-distance buses. He emphasized that the Government is committed to safeguarding both the bus industry and passengers.The Chair of the Committee also sought clarification from officials on whether bus fares could be reduced following recent fuel price decreases. Officials explained that although fuel prices have declined, other operating costs remain high, limiting the scope for fare reductions.The Committee also discussed a range of issues including reducing road accidents, establishing dedicated lanes for bicycles and motorcycles, road development projects, and complaints from passengers regarding the failure to receive correct change from bus conductors. Officials were instructed to take the necessary action on these matters.The Chair further directed officials to intervene promptly to resolve issues raised by Members of Parliament relating to the transport and urban development sectors.The Committee also agreed that regulations made by the Minister of Transport, Highways and Urban Development under the Motor Traffic Act (No. 203), and published in Extraordinary Gazette No. 2480/22 dated 19 March 2026, should be submitted to Parliament for approval following the Committee's consideration.The regulations extend the concessionary period granted for fitting seat belts to seats in vehicles travelling on expressways where seat belts were not originally installed by the manufacturer. As the Committee observed that the previous grace period was insufficient, it has been extended from 20 March 2026 until 19 June 2026.The meeting was attended by Hon. Deputy Minister of Urban Development Eranga Gunasekara, several Members of Parliament, and officials representing the Ministry of Transport, Highways and Urban Development.
2026-07-07
The current progress of tourism promotion projects being implemented in various parts of the country, as well as the proposed budgetary allocations for next year aimed at further developing the tourism sector, were discussed at length during the meeting of the Ministerial Consultative Committee on Foreign Affairs, Foreign Employment and Tourism.The discussion took place when the Committee met recently at Parliament under the chairmanship of the Minister of Foreign Affairs, Foreign Employment and Tourism, Hon. Vijitha Herath.During the meeting, the Committee also reviewed the current status of Sri Lanka's trade agreements with foreign countries. The Chair informed members that a special committee has been appointed to review the country's foreign trade agreements, and that necessary policy decisions will be taken after its report is received.Members of Parliament also presented a number of proposals for new projects and programmes that could be implemented in different parts of the island to further promote the tourism industry.The meeting was attended by the Deputy Minister of Foreign Affairs and Foreign Employment, Hon. Arun Hemachandra, the Deputy Minister of Tourism, Prof. Ruwan Ranasinghe, and Members of Parliament serving on the Consultative Committee.
2026-06-25
The report submitted by the Central Bank of Sri Lanka to the Committee on Public Finance (COPF) regarding the disappearance of USD 2.5 million that had been held by the Treasury for the repayment of state debt was discussed at a recent meeting of the Committee.The meeting was held in Parliament on the 23rd June under the chairmanship of Hon. Member of Parliament Dr. Harsha de Silva, with the participation of Hon. Deputy Ministers Chathuranga Abeysinghe, Dr. Kaushalya Ariyarathne, and Nishantha Jayaweera, as well as Hon. Members of Parliament Attorney-at-Law Rauff Hakeem, Ravi Karunanayake, Harshana Rajakaruna, Ajith Alahakoon, Nimal Palihena, Attorney-at-Law Chithral Fernando, Wijesiri Basnayake, Champika Hettiarachchi, M.K.M. Aslam, and Attorney-at-Law Lakmali Hemachandra.The report submitted by the Ministry of Finance, Planning and Economic Development to the Committee on Public Finance on the 8th regarding the disappearance of USD 2.5 million was subsequently examined by officials of the Central Bank of Sri Lanka. Following this review, the Central Bank submitted a report containing its observations and views to the Committee.Extensive discussions were held on the report presented by the Central Bank. The Chairman of the Committee on Public Finance stated that, after considering both the report submitted by the Ministry of Finance, Planning and Economic Development and the report submitted by the Central Bank, a final report would be prepared and presented to Parliament in due course.Dr. Harshana Suriyapperuma, Secretary to the Ministry of Finance, Planning and Economic Development; Varuna Sri Dhanapala, Secretary to the Ministry of Digital Economy; Dr. Nandalal Weerasinghe, Governor of the Central Bank of Sri Lanka and officials of the Sri Lanka Computer Emergency Readiness Team (CERT) were also preset at the meeting.
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