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.
2026-05-26
The Central Provincial Council was summoned before the Committee on Public Accounts (COPA) to examine the Auditor General’s triennial report for the years 2021–2023, the Auditor General’s report for 2024, and the Council’s current performance.The committee meeting, chaired by Hon. Member of Parliament Kabir Hashim, was held recently at Parliament.During the meeting, attention was drawn to the progress made in implementing recommendations issued at the COPA meeting held on 5th September, 2019. Discussions focused on the incident involving the destruction of files belonging to the Central Provincial Passenger Transport Authority.It was revealed that directives issued by the relevant court and the Presidential Secretary regarding the incident had not been implemented by the responsible authorities. In this regard, the Committee Chairman instructed officials of the Central Provincial Council to submit all reports and correspondence related to the incident to the committee.In addition, the committee discussed an incident involving the unlawful transfer of a rest house owned by the Road Development Authority to a third party in violation of lease conditions. Accordingly, the Chairman instructed officials to identify the officers responsible for making the relevant decisions and to submit a report to the committee on the legal action being taken in connection with the matter.The committee also held extensive discussions on irregularities identified by the National Audit Office in road development and passenger transport services in the Central Province, as well as issues affecting the health sector.Expressing his views during the meeting, the Chairman emphasized the importance of expediting ongoing investigations within institutions and focusing on follow-up action. He further stressed that if a state institution generates profits, such profits should accrue to the government, and if such revenue is used for institutional activities, established legal provisions and procedures must be strictly followed.The meeting was attended by committee members Hon. Members of Parliament Dr. M.L.A.M. Hizbullah, Ruwanthilaka Jayakody, Attorney-at-Law Thushari Jayasinghe, Sunil Rathnasiri, Oshani Umanga, Susantha Kumara Navarathna, Ajantha Gammeddage, Chanaka Madugoda, T.K. Jayasundara and Lal Premanath along with a group of government officials.
2026-05-26
The Parliamentary Select Committee of Parliament to look into and report to Parliament on the matter of selecting the Electoral System under which the Provincial Council Elections should be held and submit its proposals and recommendations in that regard, recently sought views from the Attorney General’s Department and members of the Election Commission.The discussion took place when the committee met in Parliament under the chairmanship of Hon. Minister Vijitha Herath.During the meeting, the Attorney General’s Department briefed the committee on the existing legal obstacles to holding Provincial Council elections and the possible ways in which such obstacles could be removed to facilitate the conduct of the elections.The Election Commission informed the committee that it is prepared to conduct Provincial Council elections at any time under the legal provisions enacted by Parliament based on the committee’s recommendations.The meeting was attended by Hon. Deputy Ministers Arun Hemachandra, Sunil Watagala, Attorney-at-Law and Muneer Mulaffer as well as committee members Hon. Members of Parliament Mano Ganesan, Shanakiyan Rajaputhiran Rasamanickam, Dharmapriya Wijesinghe, Samanmali Gunasinghe and Lakshman Nipuna Arachchi. The committee member M. Nizam Kariapper, P.C also participated virtually.
2026-05-25
The Women Parliamentarians’ Caucus has decided to examine the ongoing legal proceedings and matters relating to the protection of the girl involved in the sexual abuse incident reported from the Anuradhapura area.This decision was taken during the Women Parliamentarians’ Caucus meeting chaired by Hon. Minister Saroja Savithri Paulraj, held in Parliament today (May 25). Accordingly, a special discussion has been scheduled for 05.06.2026 with the participation of relevant institutions including the Sri Lanka Police, the Attorney General’s Department, the National Child Protection Authority and the Department of Probation and Child Care Services.In addition to the incident, which has generated significant public concern, the discussion is also expected to focus extensively on strengthening the laws and empowering the institutions required to prevent all forms of violence against women and children.Meanwhile, it was also decided to appoint a subcommittee under the Women Parliamentarians’ Caucus to oversee the future legal proceedings relating to the Anuradhapura girl’s case and to identify the institutional and legal reforms required in the country to eliminate violence against women and children.The subcommittee will be led by the deputy co-chairs of the Women Parliamentarians’ Caucus Hon. Members of Parliament Samanmali Gunasinghe and Attorney-at-Law Chamindrani Kiriella. The other members of the subcommittee will be Hon. Hemali Weerasekara, Dr. Kaushalya Ariyarathna, Attorney-at-Law Sagarika Athauda, Attorney-at-Law Nilanthi Kottahachchi, Attorney-at-Law Nilusha Lakmali Gamage, Attorney-at-Law Thushari Jayasinghe, Attorney-at-Law Anushka Thilakarathna, Attorney-at-Law Hasara Liyanage, Attorney-at-Law Hiruni Wijesinghe and Attorney-at-Law Lakmali Hemachandra.
2026-05-25
The progress of implementing the new education reforms was reviewed at a recent meeting of the Sectoral Oversight Committee on Education, Manpower and Human Capital, chaired by Hon. Member of Parliament Hesha Withanage Ankumbura Arachchi. During the meeting held in Parliament on the 19th, extensive discussions were held on the implementation of the new education reforms.Secretary to the Ministry of Education, Higher Education and Vocational Education, Mr. Nalaka Kaluwewa, briefed the committee on the manner in which the new education reforms are being implemented.The meeting was attended by Hon. Leader of the Opposition Sajith Premadasa, committee members, provincial education secretaries, school principals, and several other officials.
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