2024-07-17
The Public Financial Management (PFM) Bill was considered and approved by the Committee on Public Finance following a discussion at length on the particulars of the Bill. Accordingly, the Committee acknowledged and praised the efforts of the Ministry of Finance for their efforts in presenting such Bill which aims to establish a modern, transparent, and efficient PFM system fostering public trust, ensuring efficient resource allocation, and supporting sustainable economic growth.
The officials present stated that while the current Financial Regulations are indeed based on a legal framework, they have not been adequately adhered to. Consequently, due to lapses, inherent weaknesses, and transparency and accountability issues in current Public Financial Management practices, the Public Financial Management (PFM) Bill was drafted to establish financial discipline.
This Bill was considered and approved when the Committee on Public Finance met in Parliament recently (July 11) under the Chairmanship of the Hon. (Dr.) Harsha de Silva, Member of Parliament. Officials representing Attorney General’s Department, Ministry of Finance, the Central Bank of Sri Lanka were present at the Committee meeting held.
Addressing the existing public finance issues, this Bill sets provisions for enacting a law on Public Finance which helps consolidate Regulations scattered among several related sectors. Whilst acting as an overarching law, it also sets requirements for specific content on Fiscal Strategy Statement and Medium-Term Fiscal Framework (MTFF).
Furthermore, the Bill also sets provisions for a primary balance target as the medium-term fiscal anchor and a primary expenditure ceiling of the Government - not exceeding 13% of the nominal GDP.
However, the COPF members emphasized that the proposed 13% primary expenditure limit for Sri Lanka hinders the government's capacity to tax and spend in ways that promote growth, efficiency, and social welfare. Additionally, it positions Sri Lanka as the only country to set such a low GDP-based limit on primary expenditure. Chairman stressed that with this constraint, achieving the 10% growth rate necessary to become a high-income country by 2040 is unattainable.
Moreover, measures such as the preparation and publication of a Debt Sustainability Analysis annually, reduction of Guarantee limit - not exceeding 7.5 % of the average GDP, projects to be reviewed & recommended by a Public Investment Committee, etc have also been addressed by the said Bill.
The Committee questioned the officials present regarding the medium-term fiscal framework for the upcoming financial year and the next four years, included in the fiscal strategy statement which must include a primary balance target, a primary expenditure ceiling, fiscal aggregate projections, and economic assumptions.
The Chair questioned as for the last 50 years, the assumptions made on revenue were incorrect, how is this particular Bill going to address this issue. Furthermore, the Chair was of the view that such Bill should focus not only on debt sustainability but also should look into economic growth. Furthermore, The Chair was of the view that the targets of the Public Financial Management (PFM) Bill should align with the Economic Transformation Act.
State Minister Hon. (Dr.) Suren Raghavan, and Members of Parliament Johnston Fernando, Hon. Rauff Hakeem, hon. Wajira Abeywardana, Hon. M. A. Sumanthiran, Hon. Mayantha Dissanayake, Hon. (Dr.) Nalaka Godahewa, Hon. Harshana Rajakaruna, Hon. Madhura Withanage, Hon. Premnath C. Dolawatte, Hon. Duminda Dissanayake were present at the Committee meeting held.
2026-09-25
The Committee on High Posts of Parliament recently granted approval for the appointment of a new Ambassador, a High Commissioner, and a chairperson of a state institution.The approvals were granted when the Committee on High Posts met under the chairmanship of Prime Minister Dr. Harini Amarasuriya.Accordingly, the Committee approved the appointment of Mrs. Anzul Banu Jhan as the new Ambassador of Sri Lanka to the Republic of the Philippines and Mr. Chandana Rohana Kumara Ambagolla as the new High Commissioner of Sri Lanka to Canada.The Committee also approved the appointment of Mr. Nusith Kumarathunga as the new Chairman of Sri Lanka Insurance Corporation Limited.
2026-09-23
A special committee appointed by the Ministerial Consultative Committee on Transport, Highways and Urban Development, to address the difficulties faced by persons with disabilities in obtaining driving licences, held its first meeting in Parliament recently, with particular attention focused on the steps that should be taken to make the process of obtaining driving licences more accessible and streamlined for persons with disabilities.At the meeting, attended by Hon. Members of Parliament Sugath Wasantha de Silva, Dinesh Hemantha and M.A.C.S. Chathuri Gangani, extensive discussions were held on the practical and legal challenges faced by persons with disabilities both in obtaining driving licences and in modifying and using vehicles to suit their respective disabilities.Attention was drawn to the medical examinations conducted by the National Transport Medical Institute (NTMI), the medical recommendations issued based on the nature of a person’s disability, and the procedure for issuing driving licences accordingly. Discussions also focused on conducting medical examinations at district level, expanding the range of vehicle types for which driving licences may be issued to persons with visual impairments, taking into consideration medical criteria including the field of vision, installing appropriate safety equipment in vehicles, and proposed amendments to the relevant Gazette notifications.The legal framework governing the issuance of driving licences to persons with hearing impairments, the use of special identification signs, and the assistance of sign-language interpreters were also discussed. Attention was also given to procedures for modifying vehicles to suit the individual needs arising from a person’s disability.Proposals were also put forward regarding issuing licences to one individual for multiple vehicles, simplifying the medical examination process, and improving the online system between the National Transport Medical Institute and the Department of Motor Traffic.The need for the necessary amendments to the relevant Gazette notifications, expanding services at the regional level, and creating awareness among relevant institutions to make the process of obtaining driving licences more accessible and streamlined for persons with disabilities was also emphasised. The importance of taking further steps to ensure the transportation rights of persons with disabilities while ensuring road safety was also stressed.Officials of the Ministry of Transport, Highways and Urban Development and other relevant representatives attended the meeting.
2026-09-23
The Promotion of Export Agriculture (Amendment) Bill was considered and approved at a recent meeting of the Sectoral Oversight Committee on Environment, Agriculture and Resource Sustainability.The matter was discussed when the Committee, chaired by Hon. Member of Parliament Hector Appuhamy, met on the occasion under the chairmanship of Hon. Member of Parliament, Attorney-at-Law Bhagya Sri Herath.As part of the restructuring of the institutional structure of the Department of Export Agriculture, new positions were created and existing positions were upgraded, including changing the designation of “Director” to “Director General.” However, the relevant provisions of the Export Agriculture Promotion Act, No. 46 of 1992, had not been amended accordingly. Furthermore, other related designations that required amendment had also not been revised. The necessary amendments have therefore been introduced through this Bill.It was also noted that the definitions of export agricultural crops referred to in the Act as “notified agricultural crops” have become practically incompatible with current production and market conditions. Accordingly, the need has arisen to revise and update the relevant definition so that it is appropriate for the present and future export agriculture sector.Accordingly, the Bill provides that, in place of the definition of the term “Export Agricultural Crop” in Section 19 of the Act, the term shall mean means any crop identified as a crop that have an export potential in addition to the local consumption other than paddy, vegetables, fruits, root crops and additional food crops belonging to the category of food crops and declared by the Minister in charge of the subject as “a notified agricultural crop” under section 2 of this Act. It further provides that any crop identified as a plantation crop shall not be included in this definition.The Committee also inquired into matters relating to the export of crops from Sri Lanka, including pepper. It was revealed that Sri Lanka exported 12,910 metric tonnes of pepper in 2025, with India being the country's largest buyer.Several members of the Committee, along with officials from the Ministry of Agriculture, Livestock, Land and Irrigation, participated in the Committee meeting.
2026-09-23
The Sectoral Oversight Committee on Education, Manpower and Human Capital has decided to appoint a Parliamentary subcommittee to study the salary disparities arising when teachers are appointed to the Principals’ Service, as well as the resulting reluctance among senior teachers to enter the Principals’ Service, and to make recommendations in this regard.These matters were discussed when the Sectoral Oversight Committee on Education, Manpower and Human Capital met in Parliament recently, under the chairmanship of Hon. Member of Parliament, Attorney-at-Law Hesha Withanage.Particular attention was drawn to the salary disparity arising from the fact that, under the Sri Lanka Principals’ Service Minute issued on 22 October 2014, entry into the Principals’ Service from the Teachers’ Service is considered a “new appointment” rather than a “promotion.”Officials pointed out that this situation is further aggravated by the significant difference in salary increments when a teacher is appointed from Grade 1 of the Teachers’ Service to Grade III of the Principals’ Service. They also noted that, although an adjustment allowance was introduced under Circular No. 03/2014 to address the salary difference arising at the time of appointment to the Principals’ Service, a salary gap emerges again as the teacher’s service progresses because they do not receive the higher salary increments that they would have received had they remained in the Teachers’ Service.It was also discussed that, as a result, senior and experienced teachers in Grades 1 and 2-I of the Teachers’ Service are being discouraged from sitting for the Principals’ Service examination and entering the Principals’ Service. Accordingly, attention was drawn to amending the Service Minute so that entry into the Principals’ Service from the Teachers’ Service would be treated as a “promotion” rather than a “new appointment.”The procedure for granting promotions within the Teachers’ Service was also discussed. The Committee pointed out that a newly appointed teacher entering the service with a university qualification takes approximately 19 years of service to reach Grade 1 of the Teachers’ Service.Attention was also drawn to the direct recruitment of Bachelor of Education (B.Ed.) graduates to Grade 2 of the Teachers’ Service in accordance with the Teachers’ Service Minute.Meanwhile, it was revealed that a verbal agreement had been reached with the Public Service Commission to recruit B.Ed. graduates as teachers under the previous system until 2030. Accordingly, it was stated that a Cabinet Memorandum has been submitted to recruit B.Ed. graduates to Grade 2 of the Teachers’ Service during this year.It was also discussed that these recruitments are planned to be carried out separately from the ongoing recruitment process for 23,000 teachers, based on subject-specific vacancies existing at provincial level.The Committee also considered the need to give universities until 2030 to update B.Ed. degree programmes so that they correspond with the actual subject requirements of the school system. In particular, the Committee highlighted the need to introduce specialised B.Ed. programmes in fields such as Science, Mathematics and Primary Education.Meanwhile, the Committee also considered the issue of recovering excess salary payments made to 261 laboratory attendants and security guards in the Southern Province. It was revealed that approximately Rs. 50.8 million had been overpaid as a result of the employees being placed on the 12th salary step instead of the initial salary step of the relevant salary scale in 2008 and 2009.It was stated that the matter was identified in 2016 and was subsequently examined through an audit query in 2022. To date, Rs. 15.1 million has been recovered through the suspension of salary increments and deductions from salaries.The representatives who appeared before the Committee pointed out that the employees were not directly responsible for this administrative error and that their letters of appointment had specified a particular salary scale. Accordingly, the Committee decided to bring the matter to the attention of the Governor of the Southern Province by way of a letter, with a view to obtaining his positive intervention regarding the difficulties faced by the employees.
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