2024-04-04
News Categories : Committee News
It was revealed in the Committee on Ways and Means that the profit made by traders for one kilo by selling imported essential food items based on the market price is between Rs 100-1000.
This was revealed when the Committee on Ways and Means met in Parliament on 2nd April 2024 under the chairmanship of Hon. Patali Champika Ranawaka, Member of Parliament.
There was a discussion on the discrepancy between the market price of a kilo of essential food items and the import price. The officials of Central Bank of Sri Lanka, Department of Trade and Investment Policies, Sri Lanka Customs, Import and Export Control Department, Department of Censors and Statistics, Hector Kobbekaduwa Agrarian Research and Training Institute were summoned for the committee meeting.
It was revealed that since 2018, there has been a continuous decline in the tax revenue imposed by the government on imported goods, and this has been caused by the mismatch of the Special Commodity Levy (SCL) imposed on imported essential food items in accordance with the value of the US dollar. Accordingly, it was revealed that the consumers have not benefited from this as it costs a lot of money to buy these goods, but the traders have made a significant profit by selling these imported essential food items. Accordingly, it was revealed that the profit was between Rs 100-1000 per kilo based on the market price.
Also, based on these facts, the huge disparity between the market price of a kilogram of essential food items and the price at which goods are released from customs after the imposition of special commodity tax was also discussed here.
Accordingly, the Chairman of the Committee instructed the Sri Lanka Customs officials to submit all the reports related to the import of essential food items to the Committee on a weekly basis.
The chairman also emphasized to the officials of the Inland Revenue Department the importance of formally registering the importers who import goods under category 2525 in order to collect value added tax (VAT) and streamlining the import process of goods under category 7000. He also instructed to take steps to collect taxes according to the Inland Revenue Act for the undue profits earned by the importers during the importation of essential food items during the period from 2018 to 2023 and to report the progress to the committee by the end of this month.
Also, the importance of the intervention of the Consumer Affairs Authority to prevent consumer exploitation during the festive season was also emphasized here. Also, instead of buying essential food items from importers, the committee also advised that the Ministry of Trade, Commerce and Food Security should prepare a program to directly import and deliver them to the consumer. The committee also advised to prepare a program to inform the public about the price following the customs clearance, market price and maximum retail price of essential food items through websites, mobile applications and social media.
In addition, the progress of the forensic audit conducted by the Auditor General regarding the irregularities in granting licenses to import electric vehicles to Sri Lankans working abroad was discussed in the meeting. The committee instructed the relevant parties to suspend the gazette extending the granting of licenses to import electric vehicles for Sri Lankans employed abroad until the forensic audit conducted by the Auditor General is completed.
Also, the collection of arrears of tax was discussed here and the following instructions were given to the Inland Revenue Department. Accordingly,
• Immediate action (such as acquisition of properties/assets) as per Inland Revenue Act to recover Rs 188 billion in recoverable tax arrears.
• Taking necessary action to recover tax withheld within 3 years due to taking legal action.
• To provide the list of tax evaders and organizations to the committee within a week
• Establishing a public private partnership model through an open tender to maintain the Revenue Administration Management Information System (RAMIS).
• Providing the Attorney General's opinion to the Committee on whether the signed agreement information related to the Revenue Administration Management Information System (RAMIS) can be released to a third party.
• Instead of opening tax files for persons above 18 years of age, taking data of persons earning more than Rs.1 lakh per month (25 lakhs) on a digital platform,
State Ministers Hon. Lasantha Alagiyawanna, Hon. Sisira Jayakodi and Hon. Anuradha Jayaratne, Members of Parliament, Hon. W.D.J Seneviratne, Hon. Dayasiri Jayasekara, Hon. Udayana Kirindigoda, Hon. Wasantha Yapabandara, Hon. Shanta Bandara, Hon. Jayaratne Herath, Hon. Chandima Weerakkodi, Hon. Ali Saheer Maulana, Hon. Asanka Navaratne, Hon. Gamini Valeboda and Hon. Weerasumana Weerasinghe were also present in this committee meeting.
2026-08-18
The Committee on High Posts has approved the appointments of one Ministry Secretary and three chairpersons to government statutory boards and institutions.Accordingly, the Committee approved the appointment of Dr. Anil Jasinghe as Secretary to the Ministry of Health and Mass Media; Mr. S.A.M. Peiris as Chairman of the Colombo Lotus Tower Management Company (Pvt) Ltd.; Mr. H.M.P. Ratnayake as Chairman of Kurunegala Plantations Limited; and Dr. (Mrs.) W.M.V. Wanasinghe as Chairperson of the National Insurance Trust Fund.The meeting was chaired by the Hon. Prime Minister (Dr.) Harini Amarasuriya and was attended by the Hon. Minister Ramalingam Chandrasekar, the Hon. Members of Parliament Kumara Jayakody, and Dayasiri Jayasekara, Attorney at Law.
2026-08-18
The “Voice to Policy” dialogue programme organized for youth in the Gampaha District by the Parliamentary Caucus for Open Parliament Initiative was held recently (Aug. 16) at Jetwing Blue Hotel in Negombo. The programme provided an opportunity for young people from the Gampaha District to present their policy proposals directly to Members of Parliament. The programme was conducted as the first in a series of workshops organized by the Parliamentary Caucus for Open Parliament Initiative, covering all districts of the country with the aim of further promoting the concept of an Open Parliament. The main objective of the programme was to provide young people with an opportunity to directly present their views, concerns and policy proposals to Members of Parliament. Young men and women representing the Gampaha District participated in the workshop. The event was attended by the Co-Chairs of the Parliamentary Caucus for Open Parliament Initiative, Hon. Minister Prof. Krishantha Abeysena and Hon. Member of Parliament Shanakiyan Rasamanickam, as well as Members of Parliament Chamindranee Kiriella, Attorney at Law, S. M. Marikkar, Retired Lieutenant Commander N. R. Prageeth Maduranga, Retired Major General G. D. Suriyabandara and Champika Hettiarachchi.During the programme, young participants presented their views and proposals on a wide range of issues, including education and higher education, political participation, vocational training, employment opportunities, technology, entrepreneurship, and access to opportunities and information available to young people.Particular attention was given to reducing the time required to complete higher education courses and degree programmes, creating greater opportunities for young people who wish to enter politics, and expanding youth entrepreneurship.A key feature of the programme was that the young participants themselves identified their priority concerns, discussed them, grouped them into common areas, and selected fields requiring policy attention before engaging in direct dialogue with Members of Parliament on those issues.The Parliamentary Caucus indicated that it would give consideration to forwarding the proposals presented by the youth during the programme for further consideration by Parliament. Discussions were also held on providing youth representatives with opportunities to engage in the future with the relevant Sectoral Oversight Committees of Parliament on these matters.In addition, Youth Rapporteurs were appointed to document the recommendations and proposals raised during the programme and submit them to the Parliamentary Caucus for Open Parliament Initiative.The workshop was sponsored by CII (Coalition for Inclusive Impact).
2026-08-14
The Caucus on Climate Parliament of Sri Lanka emphasized the need to move beyond reactive crisis management and establish Anticipatory Crisis Governance mechanisms to strengthen Sri Lanka’s climate resilience in the face of climate change, including El Niño conditions.At the meeting, held recently in Parliament under the joint chairmanship of Hon. Leader of the Opposition Sajith Premadasa and Hon. Member of Parliament Prof. L.M. Abeywickrema, discussions covered a wide range of issues, including climate change, El Niño conditions, agriculture, water management, wildlife conservation, human-elephant conflict, disaster management and environmental management.Delivering the main expert presentation at the meeting, Prof. Charitha Pattiarachchi, Winthrop Professor of coastal oceanography at the University of Western Australia, highlighted the need for early preparedness in the face of climate risks, science-based policymaking and stronger disaster management mechanisms. The disaster management model of the Indian state of Odisha was also discussed. It was noted that, during a cyclone in 2019, the state was able to evacuate approximately one million people to safe locations within 24 hours.The interim report presented by Dr. Sumith Pilapitiya, Chairman of the Subcommittee on Human-Elephant Conflict, pointed out that climate conditions could intensify human-elephant conflict and highlighted the need for short- and long-term measures, including community-based electric fences, seasonal paddy-field fencing, wildlife habitat management and water management.The interim report presented by Prof. Sampath Seneviratne, Chairman of the Independent Expert Advisory Group on El Niño Resilience, analyzed the impacts of climate change on agriculture, biodiversity, water security and the rural economy. The report also proposed a Strategic Climate Resilience Framework based on scientific evidence.With regard to wildlife conservation, attention was drawn to addressing the shortage of veterinary officers, strengthening wildlife management, and reducing environmental damage caused by human activities, plastics and waste in and around national parks. Proposals were also put forward to minimize environmental impacts in sensitive sacred areas, introduce a differential pricing system for the tourism sector, and develop infrastructure in national parks.The meeting also emphasized the need to strengthen science-based policies, institutional coordination and early-preparedness mechanisms in order to enhance Sri Lanka’s resilience to climate change.Members of Parliament, government officials, representatives of international organizations and development partners, researchers, youth representatives and representatives of civil society organizations participated in the meeting.
2026-08-13
The Committee on Public Finance stressed the need to make the security sticker system used on liquor bottles more efficient and cost-effective.The Committee on Public Finance, Chaired by Hon. Member of Parliament (Dr.) Harsha de Silva, met recently in Parliament. The Committee discussed the security sticker system used on liquor bottles, the Regulations issued under the Imports and Exports (Control) Act, No. 1 of 1969, and matters relating to the dissolution of the Shrama Vasana Fund under the Finance Act, No. 38 of 1971. Hon. Deputy Ministers Chathuranga Abeysinghe and Nishantha Jayaweera, Dr. Kaushalya Ariyarathne and Hon. Members of Parliament Ravi Karunanayake, Harshana Rajakaruna and Attorney at Law Lakmali Hemachandra, participated in the meeting. Hon. Wijesiri Basnayake and Hon. Attorney at Law Chithral Fernando, participated online. The Committee paid extensive attention to the cost of the security sticker system, its technical standards and the economic benefits to the Government. It was revealed that the system was introduced in accordance with the 2016 Budget proposals to reduce the use of untaxed liquor, safeguard excise revenue and prevent the circulation of counterfeit liquor. The contract for the system was awarded in 2017 to the Indian company Madras Security Printers (MSP).The Committee also discussed the practical difficulties of using physical stickers in high-speed liquor production processes. Accordingly, permission was granted in 2021 to use digital (inkjet) code printing. The Committee noted that the same fee of US$ 5.99 charged for 1,000 printed paper stickers is also being charged for digital code printing.While the initial infrastructure costs for sticker printing machines at bottling plants need to be considered, a digital sticker would generally cost less than a paper sticker. Therefore, the Committee stressed the need to review the existing cost structure and the benefits received by the Government.The Committee also discussed the need to adequately adopt international ISO standards for the security sticker system, introduce a Track and Trace system to monitor the movement of liquor products from production to the consumer, and provide a facility for consumers to verify the authenticity of products through a mobile application.The Committee further stressed that the new tender process should consider not only the price but also quality, data security and technical standards. It was also emphasized that officers with the necessary technical expertise should be involved in the tender evaluation process to prevent counterfeit stickers and imitation.The Excise Department was instructed to study global best practices followed by other countries and prepare a report for submission to the Committee.Meanwhile, the Committee also considered the new Regulations issued under the Imports and Exports (Control) Act, No. 1 of 1969. The Regulations, published in Extraordinary Gazette Notification No. 2496/38 dated 10 July 2026, prohibit the importation into Sri Lanka of goods manufactured wholly or partly using forced labour. The objective is to strengthen the legal framework for responsible trade and compliance with international labour standards.The relevant Gazette Notification has been submitted to Parliament for approval in terms of Section 20 of the Act. It was also noted that the Gazette Notification prohibiting the importation of goods manufactured using forced labour enabled Sri Lanka to be included in the lowest and more favourable 10% category, instead of the initially applicable 12.5% category, under the United States’ forced-labour-related tariff measures implemented under Section 301, which were concluded on 23 July 2026.The Committee also considered matters relating to the dissolution of the Shrama Vasana Fund established under the Finance Act, No. 38 of 1971. It was stated that the Fund, established under the Act of 1998 and amended by the Act of 2019, had been identified for dissolution due to its lack of relevance to the present context, poor performance and underutilisation of its assets.Officials explained to the Committee that following the closure of the Fund, its essential services would continue to be provided through the Ministry of Labour. This is expected to reduce the cost of maintaining a separate institutional structure and enable public resources to be utilized more effectively.
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