2024-02-27
News Categories : Committee News
Hon. Mahindananda Aluthgamage, Committee Chair of the Sectoral Oversight Committee on National Economic and Physical Plans stated that he will convey the need to maintain the Valaichchenai Paper Mill as a public private joint venture without allowing a situation of closure is presented to the concerned ministers and the Hon. President
The Committee Chair stated the above when the National Paper Company Limited annual reports for the years 2013, 2014 and 2015 were taken into consideration by the Sectoral Oversight Committee on National Economic and Physical Plans recently (Feb. 20).
Ms. Thilaka Jayasundara, Secretary to the Ministry of Industry stated that since the machines of the Valaichchenai factory were imported in 1956 and thus 1.2 million dollars are required for repairs. However, since no financial allocation was received from the treasury, a cabinet paper was submitted to run this as a public private joint venture, but was not approved as the land was allocated for tourism.
It was also disclosed that if USD 1.2 million is spent and repairs are made to the machines in the factory, a profit of 22 million rupees per month can be made by producing 5 tons per day. It was also discussed that this entire land, which is spread over an area of 340 acres, could be considered for a tourist zone instead of only a part of it. The Committee Chair stated that if the Valaichchenai Paper Mill is to be closed down, instead of selling it, it is important to run it as a public private joint venture, and thus, the recommendation of the Committee shall be forwarded to the Ministry of Finance and industry and the Hon. President.
Moreover, the Committee emphasized the need to build a manufacturing economy by developing the industries of the country instead of depending on the tourism industry itself. The Secretary to the Ministry of Industries pointed out that the contribution of the manufacturing sector is only 15% of the country's gross domestic product, while in a developed country this figure is 30%. She stated that the land reserved for industries is 0.04 percent of the total land in the country and it is usually 3 percent in a developed country.
Furthermore, attention was paid to the concern of not having a specific region for the leather industry and it was pointed out that plans should be prepared taking into account the development of both industry and tourism sectors.
Moreover, taking into account the 2022 annual report of the Department of Fiscal Policy, the Committee Chair drew attention to the weaknesses in the tax collection process in this country. The Committee pointed out that it is unacceptable for people with large incomes to sneak through the tax net and collect taxes from people with low incomes and advised to conduct a more extensive study on the tax policy and streamline the related mechanism. The Committees emphasized that the Inland Revenue Act should be amended and the officials including the Ministry of Finance should take the initiative for the said.
The Committee Chair expressed his displeasure that although a number of recommendations were made to connect the Land Registry Department and the Motor Transport Department with the Ramis system of the Inland Revenue Department, it has not been done so far. He also stated that the government will lose a considerable amount of tax due to the provision of temporary VAT number by the Inland Revenue Department.
Additionally, the 2022 Annual Report of the Public Accounts Department, the 2020 Annual Report of the HDFC Bank, the 2022 Performance Report of the Ministry of Commerce, the 2021 Annual Report of the Sri Lanka Accreditation Board, the 2022 Performance Report of the Cooperative Employees Commission, the 2022 Annual Report of the Ministry of Urban Development and Housing and Condominiums The management authority's annual report for the year 2021 was also considered at the Committee meeting held.
Members of Parliament Hon. Eran Wickramaratne and Hon. Madhura Withanage, officials from relevant government institutions were also present at the Committee meeting held.
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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