2024-01-18
News Categories : Committee News
The Committee on Public Finance, led by Hon. (Dr.) Harsha de Silva expressed its deep dissatisfaction with the Ministry of Finance and Inland Revenue Department's failure to collect foregone taxes from major corporations implicated in the Sugar scam, as outlined in the forensic report by the Auditor General.
During the session, the Committee underscored its disappointment with the lack of action taken by relevant authorities despite a 99.5% reduction in the Special Commodity Levy on sugar imports, as stipulated in Gazette 2197/12 dated October 13, 2020. The Committee emphasized that no accountability measures have been implemented, allowing certain large corporations to unfairly benefit from the reduced tax rate at the expense of consumers.
Specifically, the Committee inquired about the extent of tax collection from the implicated companies and directed the Inland Revenue Department to submit a comprehensive report within one week. The Committee aims to gain clarity on the current status of tax collection related to the Sugar scam.
Further addressing the issue, the Committee highlighted its concern over the proposed reversal of the tax policy, which aims to increase the Special Commodity Levy on sugar from LKR 0.25/Kg back to LKR 50/Kg. The Ministry of Finance's intention to collect LKR 30 billion from the average Sri Lankan while allowing implicated corporations to evade responsibility was strongly criticized. The Committee emphasized the need to hold wrongdoers accountable before imposing additional financial burdens on the general public.
Additionally, the Committee engaged with officials from the Consumer Affairs Authority (CAA) to address concerns about the maximum retail price (MRP) not being adhered to by distributors. CAA officials revealed that despite conducting 342 raids and imposing fines on micro, small, and medium businesses exceeding the MRP, challenges persist in penalizing wholesale distributors due to the absence of a maximum wholesale price in the gazette.
The Committee directed the CAA to conduct a comprehensive study on the imposition of MRP, considering factors such as the Special Commodity Levy and importer prices. Furthermore, the Committee requested the CAA to propose a mechanism to address the ongoing issue of wholesale distributors selling above the MRP and engaging in fraudulent activities.
Additionally, the Committee delved into the implications of the Order under Section 22 of the Foreign Exchange Act No. 12 of 2017. This order outlines provisions designed to regulate the movement of funds and foreign exchange transactions for individuals and companies in Sri Lanka, with the overarching objective of sustaining economic stability and effectively managing foreign exchange reserves.
The migration allowance, as stipulated in the order, remains at 50,000 USD, with a reduced allowance of 20,000 USD for temporary visa holders. Officials from the Central Bank apprised the Committee of amendments to the previous gazette, including provisions allowing Sri Lankan individuals to purchase share options in their own overseas companies. Additionally, individuals are now permitted to withdraw 200,000 USD for investment in listed companies and 100,000 USD for unlisted companies.
While acknowledging these changes, the Chairman of the Committee on Public Finance (COPF) raised concerns about the feasibility of maintaining such a low migration allowance. He questioned the officials on the prevalence of individuals resorting to unofficial channels, such as Hawala and cryptocurrencies, due to these restrictions. Furthermore, the Chairman inquired whether the officials were aware of instances where Sri Lankans were converting their rupees to USDT (cryptocurrency) through various platforms such as Binance, and subsequently transferring funds abroad or investing in cryptocurrencies. Notably, cryptocurrencies were recently recognized as an asset class by the US Securities and Exchange Commission, with the approval of Exchange-traded funds just last week.
In response to the Chairman's queries, officials present were unaware of such occurrences and committed to conducting a thorough study into the matter. They emphasized that exchanging rupees into dollars outside formal channels is not permitted, and they will investigate the potential misuse of unofficial avenues for currency exchange and investment.
Members of Parliament Hon. Chandima Weerakkody, Hon. Madhura Withanage, Hon. Duminda Dissanayake, Hon. Sumith Udukumbura 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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