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.
2026-04-09
The Committee on Public Finance (CoPF) met on 07th April 2026 under the chairmanship of Hon Member of Parliament Dr. Harsha de Silva.The Governor of the Central Bank of Sri Lanka (CBSL) Dr. Nandalal Weerasinghe, along with members of the Governing Board, the Monetary Policy Board, and senior officials, attended the meeting as part of the Central Bank’s statutory presentation to Parliament conducted once every four months.Hon. Deputy Ministers Chathuranga Abeysinghe, (Dr.) (Ms.) Kaushalya Ariyarathnea and Nishantha Jayaweera, Hon. Members of parliament Rauff Hakeem, Attorney at Law, Ravi Karunanayake, M.K.M. Aslam, Nimal Palihena, Chithral Fernando, Attorney at Law, Wijesiri Basnayake, Thilina Samarakoon, Champika Hettiarachchi and (Ms.) Lakmali Hemachandra, Attorney at Law were also present at the meeting.During the meeting, the Committee took up as a matter of priority the alleged fraud at NDB Bank. The Committee initiated a focused discussion with the Central Bank, underscoring the seriousness of the issue and the need for urgent attention.The Governor informed the Committee that an initial investigation in this regard is currently underway. He further assured that the Central Bank will report back to the Committee at the earliest possible opportunity once the necessary information has been gathered.The Committee observed with serious concern that there appear to have been considerable lapses in corporate governance at the bank, deficiencies in supervision by the relevant departments of the Central Bank of Sri Lanka, and undue delays in the reporting of material information.The Committee firmly underscored that such shortcomings are unacceptable and directed that immediate corrective measures be undertaken. It further emphasized that it will continue to closely monitor this matter and exercise stringent oversight to ensure full accountability, transparency, and the safeguarding of public confidence in the financial system.
2026-04-02
The Committee on High Posts has approved the appointments of four Ministry Secretaries.The approval was granted when the Committee met in Parliament recently (Mar. 20) under the chairmanship of Hon. Prime Minister Dr. Harini Amarasuriya.Accordingly, the Committee approved the appointments of Air Vice Marshall H.S.S Thuyyacontha (Retd.) as the Secretary to the Ministry of Defence, Mr. L Mohamed Navavi as the Secretary to the Ministry of Science and Technology, Mrs. W.M.D.T Wickramasinghe as the Secretary to the Ministry of Women and Child Affairs and Mr. W.W.S Mangala as the Secretary to the Ministry of Ports and Civil Aviation.
2026-03-31
A Parliamentary delegation from the Sectoral Oversight Committee on Infrastructure and Strategic Development of the Parliament of Sri Lanka, led by Hon. S. M. Marikkar, Member of Parliament and Chairman of the Committee, undertook a Parliamentary Study Tour to New Delhi and Mumbai from 22nd to 27th March 2026, following an invitation extended by the High Commission of India.The Sri Lankan delegation comprised the Chief Opposition Whip Hon. Gayantha Karunathilleka, Members of Parliament Hon. Nalin Bandara Jayamaha, Hon. Manjula Suraweera Arachchi, Hon. K. Ilankumaran, Hon. Chathura Galappaththi, Hon. Ravindra Bandara, Hon. Asitha Niroshana Egoda Vithana, Hon. Shantha Pathma Kumara Subasingha, Hon. (Mrs.) Geetha Herath, Attorney at Law, Hon. Kins Nelson and Hon. Dharmapriya Wijesinghe. Parliament staff members attached to the office of the Sectoral Oversight Committees who were also present included Assistant Director (Administration) Mr. K. P. Chandana, Principal Officer Ms. S. W. T. R. De Silva and Parliamentary Officer Ms. W. K. A. M. M. M. Arthanayaka. The delegation arrived in New Delhi on 22nd March 2026 and commenced official engagements on the following day. The programme included a meeting with the Foreign Secretary of India and a floral tribute at Prerna Sthal in the Parliament House Complex. The delegation also paid a courtesy call on the Hon. Om Birla, Speaker of the Lok Sabha.An orientation session on the Indian Parliamentary system was conducted, providing valuable insights into institutional structures and legislative processes. The delegation further held productive interactions with the Standing Committee on Transport, Tourism and Culture, as well as the Standing Committee on Housing and Urban Affairs.On 24th March 2026, the delegation participated in a series of technical and policy-focused engagements, including a session on India’s “PM Gati Shakti” National Master Plan. Visits were made to the National Highways Authority of India and the Solar Energy Corporation of India, alongside discussions with the Confederation of Indian Industry. The delegation also engaged with the India-Sri Lanka Parliamentary Friendship Group, further strengthening bilateral Parliamentary relations.Continuing its programme on 25th March 2026, the delegation visited the Delhi Metro Rail Corporation to study urban mass transit systems and best practices in public transportation. This was followed by an interaction with the New Delhi Municipal Council on Smart City initiatives, focusing on urban governance, digital infrastructure, and sustainable urban development. The delegation also met with officials of the Jal Jeevan Mission under the Ministry of Jal Shakti to discuss large-scale water supply management and rural infrastructure development.The programme in Mumbai included visits to key infrastructure and development sites such as the Atal Setu Bridge and the Jawaharlal Nehru Port Trust, as well as the Navi Mumbai Airport. The delegation also visited the Power Exchange India Limited and met with the Hon. Chief Minister of Maharashtra.On 27th March 2026, the delegation visited prominent locations including the Gateway of India and Elephanta Caves. The programme also included a meeting with the Hon. Speaker of the Maharashtra Vidhan Sabha and discussions with senior officials responsible for investment promotion and industries, prior to their departure to Colombo.Sri Lanka’s participation in this Parliamentary Study Tour underscored its continued commitment to strengthening bilateral cooperation with India and advancing institutional capacity, knowledge exchange, and best practices in infrastructure and strategic development through sustained Parliamentary engagement.
2026-03-30
Progress on the implementation of recommendations issued by the COPA on 06th January 2026 was reviewed Matters relating to the 2024 Auditor General’s Report and current performance were also examined The Department of Archaeology was summoned before the Committee on Public Accounts (COPA), where attention was drawn to the progress made in implementing the recommendations issued at the COPA meeting held on 06th January 2026, as well as to the current performance of the Department.These matters were discussed at the COPA meeting held in Parliament on 19th March 2026 under the chairmanship of Hon. Member of Parliament Kabir Hashim, to examine the Auditor General’s triennial report for the years 2021–2023, the 2024 Auditor General’s Report, and the current performance of the Department of Archaeology.At its meeting on 06th January 2026, it was recommended that a report on the gazetted and ungazetted antiquities identified by the Department of Archaeology be submitted to the Committee within a month. However, the Auditor General’s Department pointed out that data relating to antiquities not declared by Gazette had still not been submitted to the Committee. Accordingly, the Chair of the Committee instructed that a report be submitted within two weeks, including details of such antiquities, reasons for not publishing them by Gazette, and a proposed timeline for their gazetting.The Committee also focused on the lack of progress in implementing the recommendation to establish a centralized data system for the Department of Archaeology, and instructed that a progress report on this matter be submitted to the Committee.Furthermore, it was revealed that although Cabinet approval stipulates that 25% of the revenue generated by the Central Cultural Fund should be allocated to the Ministry of National Heritage, the Department of Archaeology has been requesting a lower allocation annually. Officials who appeared before the Committee stated that funds allocated through Cabinet approval had remained unutilized, and that there are plans to reduce future allocations requested from the Treasury accordingly.The shortage of vehicles available to the Department was also discussed, with officials noting that this has significantly affected the institution’s performance. The Committee stated that it would take steps to raise this matter with the relevant authorities.The meeting was attended by Committee Member Hon. Deputy Minister Dinindu Saman Hennayake and Hon. Members of Parliament (Dr.) M.L.A.M. Hizbullah, Hector Appuhamy, Chanaka Madugoda, Chandana Sooriyaarachchi, and Ruwanthilaka Jayakody.
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