2024-01-11
News Categories : Committee News
The Committee on Public Finance reconsidered the Regulations under Section 71 read with Section 52(5) of the Colombo Port City Economic Commissions Act, No. 11 of 2021. This was reconsidered at the Committee on Public Finance held recently (Jan. 09) under the Chairmanship of Hon. (Dr.) Harsha de Silva.
In the course of examining the legality of Duty-Free Rules issued by the Port City Commission for Duty-Free Malls during a prior Committee meeting, the Committee sought the opinion of the Attorney General. As a result, it was revealed that the Commission lacks the authority to establish such rules, highlighting a policy inconsistency that could lead to market distortion and potential cannibalization.
The officials from the Port City Commission, who were present, acknowledged the error and assured that the rules would be revoked by the end of this week. However, when the Committee sought clarification on the individual responsible for these erroneous decisions, considering that the Port City Commission had entered agreements with four investors based on these rules, there was a noticeable absence of accountability. The Committee expressed strong dissatisfaction during the inquiry, as no official stepped forward to take responsibility.
In light of the evident lack of clarity and accountability and the issues brought to the forefront, the Committee was of the opinion that a thorough reconsideration of the mentioned Regulation was warranted. Consequently, the Committee directed the Ministry of Investment Promotion to identify the responsible party and outline measures to prevent similar errors in the future. This action was deemed essential to safeguard against potential discouragement of future investments.
Furthermore, the Committee on Public Finance considered Gazette Extraordinary No. 2334/39, as per Section 24 of the Board of Investment (BOI) of Sri Lanka Law, No. 4 of 1978. This gazette outlines a proposal by the BOI to amend regulations, permitting non-BOI or Section 16 BOI companies to attain Section 17 approval with exemptions for specific sectors and criteria. Such amendments would expedite Foreign Direct Investments and facilitate collaborations between foreign companies and existing BOI entities, enabling them to benefit from customs duty exemptions.
After meticulous examination, the Committee approved the aforementioned Regulation to be presented to Parliament. This decision was made with confidence, as the proposed amendments maintained consistent thresholds for companies registering for Section 17, ensuring there were no discrepancies introduced.
Furthermore, a discussion ensued regarding the proposed strategy for ensuring equitable VAT treatment for both foreign and domestic providers of software and digital services. It was revealed that, as previously deliberated in the Committee meeting, the Inland Revenue Department (IRD) concurs with the idea of applying VAT to domestic and foreign software and digital service providers based on the jurisdiction of the consumer rather than the jurisdiction in which a particular business operates. However, officials from the IRD highlighted administrative challenges associated with implementing this VAT on foreign providers. Despite these challenges, the Committee on Public Finance directed the IRD to present a comprehensive plan addressing these administrative issues and ensuring the appropriate implementation of the law within one week.
State Minister Hon. (Dr.) Suren Raghavan and Members of Parliament Hon. Patali Champika Ranawaka, Hon. Chandima Weerakkody, Hon. (Dr.) Nalaka Godahewa, Hon. Nimal Lanza, Hon. Premnath C. Dolawatte, Hon. Madhura Withanage, Hon. Mayantha Dissanayake, Hon. Rauff Hakeem, Hon. M. W. D. Sahan Pradeep, Hon. (Dr.) Major Pradeep Undugoda, Hon. Isuru Dodangoda were present at the Committee meeting held.
2026-06-19
The Ministerial Consultative Committee on Environment focused its attention on the issue of water pollution in the Kelani River when it met in Parliament recently (10th June) under the chairmanship of the Hon. Minister of Environment, Dr. Dammika Patabendi.During the meeting, the Committee was briefed on the progress of discussions being held with companies that have expressed willingness to invest in a project aimed at cleaning the waters of the Kelani River.The Committee also discussed a number of proposals and other issues raised by Hon. Members of Parliament.The meeting was attended by Hon. Members of Parliament and officials.
2026-06-18
A meeting of the Women Parliamentarians Caucus was held in Parliament recently to discuss the importance of incorporating Gender-Responsive Budgeting into Sri Lanka’s national budget formulation process and to examine the challenges associated with its implementation.The meeting was chaired by the Chairperson of the Caucus and Hon. Minister of Women and Child Affairs, Saroja Savithri Paulraj. Hon. Prime Minister Dr. Harini Amarasuriya also participated in the discussion.A key concern raised during the discussion was the lack of adequate data and indicators to accurately assess and measure women’s economic contributions within the budgetary process. Drawing on examples of approaches adopted in India and other countries, members of the Caucus underscored the need to identify and address existing systemic and technical gaps in Sri Lanka’s budgeting framework.The Caucus also emphasized the importance of disaggregating data by gender in project reporting and strengthening digital data management systems to support such efforts. It was further noted that identifying relevant gender-related considerations at the initial stages of project design and implementation at the ministerial level would facilitate more effective project analysis, monitoring, and evaluation of outcomes.The need to move away from existing traditional and time-consuming methods towards formal online systems and data-driven analytical tools was also emphasized.The current progress and challenges in integrating Gender-Responsive Budgeting into Sri Lanka’s public financial policy were discussed in detail during the meeting.It was also emphasized that such budgeting should not be limited to nominal percentages in documents, but that the need to establish a formal framework and data system to ensure it has a real and practical impact was also highlighted.The Hon.Deputy Chairperson of Committees Hemalee Weerasekera, Hon. Deputy Minister Dr. Kaushalya Ariyarathne, Co-Vice Chairpersons of the Caucus, Hon. Members of Parliament Chamindrani Kiriella, Attorney at Law and Samanmalee Gunasinghe, Hon. Members of Parliament Thushari Jayasinghe, Attorney at Law, Krishnan Kaleichelvi, Sagarika Athauda ,Attorney at Law, Nilanthi Kottahachchi, Attorney at Law, Ambika Samivel and Lakmali Hemachandra, Attorney at Law, along with a group of officials from the Ministry of Finance, Planning and Economic Development, also participated in the event.
2026-06-17
The Ministerial Consultative Committee on Public Administration, Provincial Councils and Local Government met recently (Jun. 12) at Parliament under the chairmanship of the Hon. Minister of Public Administration, Provincial Councils and Local Government, Prof. A.H.M.H. Abayarathna.During the meeting, Members of Parliament discussed a range of issues and proposals relating to their respective electorates, as well as several other matters of public importance.Hon. Members of Parliament and officials were present at the meeting.
2026-06-17
The Ministerial Consultative Committee on Buddhasasana, Religious and Cultural Affairs met recently (Jun. 09) at Parliament under the chairmanship of the Hon. Minister of Buddhasasana, Religious and Cultural Affairs, Dr. Hiniduma Sunil Senevi.During the meeting, Members of Parliament discussed a number of proposals and issues, including reviewing the progress of discussions initiated with the Ministry of Education, Higher Education and Vocational Education and the Department of Examinations regarding the formulation of regulations to prevent the conduct of private tuition classes on Sunday mornings, thereby facilitating the holding of Dhamma School classes on Sundays.The meeting was attended by Hon. Deputy Ministers, Hon. Members of Parliament and officials.
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