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2024-05-08

News Categories : Committee News 

A new electronic platform with all the information about food items imported and produced in Sri Lanka including its procurement process - With the intervention of the Committee on Ways and Means, the relevant proposal to Parliament in three weeks

  • It is also discussed that this digital platform is a permanent solution to the unfair increase in food prices which will be faced by whichever government comes.

 

The Chair of the Committee on Ways and Means Hon. Patali Champika Ranawaka stated that a full proposal related to the creation of a new electronic platform containing all the information including the prices of food items such as potatoes and onions produced in Sri Lanka and imported to Sri Lanka is expected to be submitted to the Parliament in three weeks at the Committee meeting held recently (May 08).

The Committee Chair also pointed out that since some essential food items have to be sold to consumers in Sri Lanka at a much higher price than the imported price, this open digital platform is a very good solution for that.

Mr. Hasitha Abeywardena and Mr. Nalinda Jayawardena, who are experts in the relevant field, made a presentation during the Committee. The Central Bank of Sri Lanka, Ministry of Finance, Economic Stabilization and National Policies, Ministry of Public Administration, Home Affairs, Provincial Councils and Local Government, Sri Lanka Customs, Consumer Affairs Authority as well as representatives of wholesale/import trade associations and experts in the field were also called before this Committee.

It was disclosed that this system is successfully used in many countries of the world and especially in India. In such a way as to ensure the welfare of the consumers, through a digital efficient mechanism, all the data on the need of all essential food items including potatoes, onions and lentils, the quantities of those food items to be produced and imported in Sri Lanka will be taken on an open platform and thereby importers also get the opportunity to import them competitively with transparency. Furthermore, it was disclosed that after importation, the complete data including the prices of these foodstuff wholesalers, middlemen and retailers will be open to all people.

Therefore, through this system, the customer will be able to know all the details including the price of the food items that he buys.

It is proposed to establish the proposed Essential Commodity Commission as a fully empowered commission consisting of representatives of all relevant government agencies, and a mechanism will be set up that will be implemented considering the market and other functions so that importers and traders get a fair profit under an open system. Furthermore, the importers pointed out that the current licensing system is a failure in an open market system, and that this will affect the import of food items.

It was also stated that according to the objectives and powers of the Consumer Affairs Authority, the said authority does not have the legal capacity to set up such a mechanism, and the Consumer Affairs Authority only intervenes after the importation of the goods to provide them to the consumers at a reasonable price.

All the government officials who were present, as well as the representatives of the Food Importers Association in Sri Lanka, expressed positive views regarding this method. Furthermore, the Committee Chair pointed out that the Central Bank should implement an incentive program to make payments through digital methods rather than making payments in cash, and that India's system can be used as a model for that. Emphasizing that tax concerns will be minimized and the income can be doubled, he also said that the Committee on Ways and Means has submitted a detailed report in this regard.

Accordingly, Hon. Patali Champika Ranawaka, Chair of the Committee on Ways and Means, instructed the respective officials to provide insights whether the proposed digital mechanism is practical and its existing problems, solutions and suggestions for progress to the Committee within two weeks.

He also pointed out that the next step is to develop digital infrastructure by bringing the government's main procurement processes like coal, fuel, medicine and fertilizer procurement to a digital platform. The Committee Chair also pointed out that through this transparency, corruption will be fenced off. He further pointed out that through this, not only the price but also the quality and standard will be evaluated.

Accordingly, he further pointed out that within the next three weeks, a series of formal proposals in this regard are expected to be presented to the government and all political parties, and accordingly it will help to recover the country from the current situation.

The Committee also discussed the proposed national tariff policy. Officials of the Department of Trade and Investment Policy were called before the Committee for this purpose.

The department made a presentation on the proposed National Tariff Policy before the House, and this policy was prepared according to the World Bank's proposals to increase export revenue. Committee Chairman Hon. Patali Champika Ranawaka pointed out that the customs revenue can be increased by 100% without raising taxes by preparing a digital platform to implement the customs process as in India. He also pointed out the need to reduce the electricity bill and maintain a low tariff rate for intermediate goods in order to increase the export income.

Members of Parliament Hon. Dayasiri Jayasekara, Hon. Ashok Abeysinghe, Hon. Sanjeeva Edirimanna, Hon. Udayana Kirindigoda, Hon. Wasantha Yapabandara, and Hon. Gamini Waleboda were also present in this Committee meeting held.

 

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