2024-07-17
News Categories : Committee News
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.
2026-01-08
Approval of the Ministerial Consultative Committee on Labour has been granted for the Regulation under Shop and Office Employees (Regulation of Employment and Remuneration) Act (Chapter 129), scheduled for debate in Parliament tomorrow (Jan. 9).This approval was granted at the meeting of the Committee held in Parliament on 2026.01.06, chaired by the Minister of Labour (Dr.) Anil Jayantha and with the participation of the Deputy Minister of Labour Mahinda Jayasinghe.This Regulation, made by the Minister of Labour on 2025.12.12, was presented to Parliament on 2025.12.18. The Regulation amends the current legal provision which states:“Any female employee who has attained the age of eighteen years may be employed in a residential hotel after 6.00 p.m and before 6.00 a.m, on the work of a female reception officer, ladies linen room attendant, ladies cloak room attendant or ladies lavatory attendant.”Accordingly, the Regulation introduces the required legal amendments to allow, in addition to the designated categories already permitted, female workers over the age of 18 employed in residential hotels as Food and Beverage Stewardess to be engaged in employment after 6.00 p.m. or before 6.00 a.m. on the following day.However, officials informed the Committee that under this Regulation, in any instance where the work shift of a female employer employed under this provision ends between 6.00 p.m. and 6.00 a.m., the employer shall be responsible for ensuring her health care, safety and welfare by providing suitable accommodation until 6.00 a.m. or providing transport facilities to her usual residence.Although the current female population in Sri Lanka is approximately 51%, female labour force participation is around 34%. It was discussed that easing existing legal restrictions is a timely need in order to create opportunities to increase female labour contributions, especially to support the rapidly developing tourism sector.A number of proposals on measures that can be taken to safeguard the rights of female workers and other employees, as well as matters relating to increasing the wages of plantation workers, were presented to the Committee by Hon. Members of Parliament. The Hon. Minister of Labour stated that discussions on these matters will be carried out in the future and necessary steps will be taken accordingly.A number of Members of Parliament, the Secretary to the Ministry of Labour, and officials representing the Ministry of Labour and institutions under it also participated in this Committee meeting.
2026-01-08
A meeting of the Ministerial Consultative Committee on Defence was held yesterday (Jan. 07) evening in the Parliament premises under the chairmanship of Hon. President and Minister of Defence Anura Kumara Dissanayaka.At this meeting of the Ministerial Consultative Committee on Defence, Members of Parliament raised several issues such as reviewing the progress of the implementation of decisions reached at previous committee meetings, the release of lands in the Northern and Eastern Provinces, the opening of roads, and the functioning of schools.Accordingly, His Excellency the President issued the necessary instructions to officials to provide feasible solutions to those matters, and discussions were also held regarding existing obstacles and the steps to be taken in carrying out these activities.Matters such as the welfare of members of the defence forces and deploying more personnel for the United Nations peacekeeping forces were also discussed.Deputy Minister of Defence Major General (Rtd.) Aruna Jayasekera was also present at this meeting, along with several Ministers, Deputy Ministers, and Members of Parliament. Likewise, a group including the Secretary to the Ministry of Defence, Heads of the Tri-Forces, several senior officials of the defence sector, the Secretary General of Parliament Mrs. Kushani Rohanadeera, and officials of the Ministry were also present at this meeting.
2026-01-08
The Ministerial Consultative Committee on Transport, Highways and Urban Development has approved the Regulations under the Motor Traffic Act (Chapter 203) scheduled to be presented to Parliament for approval on 08.01.2025.Accordingly, this approval was granted at the recent (Jan. 06) meeting of the Ministerial Consultative Committee on Transport, Highways and Urban Development held in Parliament under the chairmanship of Hon. Minister of Transport, Highways and Urban Development Bimal Rathnayake.As such, the Regulations published in the Extraordinary Gazette bearing No. 2452/40 under the Motor Traffic Act (Chapter 203) state that in an instance where a police officer has reasonable suspicion that a person driving, operating or physically controlling a motor vehicle on any road has used drugs, such police officer shall produce that person to a Government Medical Officer or an officer of a hospital who has been empowered for the purpose, for further examination.Furthermore, the Regulations published in the Extraordinary Gazette bearing No. 2455/29 under the Motor Traffic Act (Chapter 203) state that every person travelling on an expressway must wear a seat belt. Accordingly, the Committee granted approval for the said Regulations.In addition, officials of the Ministry of Transport, Highways and Urban Development briefed the Committee on the damage caused due to the sudden disaster situation that arose within the country and the progress of restoration efforts. Officials of the Road Development Authority stated that approximately 287 road sections belonging to the Authority, covering a distance of around 1481 kilometers, have been damaged. They further informed the Committee that the estimated cost for reconstruction would be around Rs. 86 billion.Officials of the Railway Department stated that the Department has incurred a loss of approximately Rs. 300 billion. Furthermore, officials stated that the Sri Lanka Transport Board has suffered a loss of around Rs. 63 million due to the emergency disaster situation.The Chair of the Committee also stated that a web page has been created to inform the public regarding the damage caused to the road system in various parts of the country. Accordingly, he pointed out that the public may access the page https://road-lk.org/ to obtain information on the relevant damage.Hon. Deputy Chairman of the Committees Hemali Weerasekara, Hon. Leader of the Opposition Sajith Premadasa, Hon. State Minister of Transport and Highways (Dr.) Prasanna Gunasekera, Hon. Deputy Minister of Urban Development Eranga Gunasekara, other Hon. Deputy Ministers, Hon. Members of Parliament and several government officials were present at this occasion.
2026-01-07
CoPF approves the Colombo Port City Economic Commission (Amendment) Bill and Regulations Issued under the Imports and Exports (Control) Act, No. 1 of 1969 post considerationIn consideration of the Colombo Port City Economic Commission (Amendment) Bill, it was stated that the amendment thus limits income tax exemptions for employees of new entrant authorized persons. However, officials present stated that a 3-year transitional period for existing entities has been given.This was discussed at length at the Committee on Public Finance, chaired by Hon. Dr. Harsha de Silva, held in Parliament on 06.01.2026, when Members of the Committee sought clarity on the rationale for amending tax incentives, particularly the decision to limit income tax exemptions for employees of authorized persons to a transitional period for existing entities, while discontinuing such exemptions for new entrants.The Committee also examined proposed changes to application fees and charges, to reduce upfront costs on the part of investors by deferring certain payments until licensing, while seeking assurance that the revised structure would remain competitive and transparent.The Committee also queried the alignment of foreign exchange provisions with the Foreign Exchange Act No. 12 of 2017, seeking clarification on the treatment of rupee earnings, currency conversion, and safeguards to ensure consistency with national monetary and financial regulations.The offshore banking framework attracted significant attention, with the Committee Members requesting updates on the status of banking licence applications, differences between Port City offshore banking operations and domestic banking activities, and the adequacy of regulatory oversight. The Central Bank’s enhanced supervisory role, including capital, liquidity, governance, and compliance requirements, was discussed in the context of international best practices.Concerns were also raised regarding enforcement and penalties for non-compliance, with Members of Parliament emphasizing the need for deterrent-level sanctions, effective monitoring, and strong reputational safeguards to maintain the integrity of the Port City.Officials noted that the amendments are intended to operationalize the Port City framework, enable approvals of new business activities, and balance investor attractiveness with fiscal discipline, transparency, and international commitments.The Committee also took into consideration the Regulations issued under the Imports and Exports (Control) Act, No. 1 of 1969 (as amended). Accordingly, Regulations issued under the Imports and Exports (Control) Act, No. 1 of 1969(as amended), were presented to the Committee seeking approval to enable tax exemptions, streamlined procedures, and the swift clearance and distribution of relief goods donated by foreign donors to those affected by Cyclone Ditwah, received in the name of the Disaster Management Center or any government institution.The Committee questioned the Ministry of Finance on the non-establishment of the Disaster Management Fund, despite the existence of the necessary legal provisions and approvals. The Committee also raised concerns regarding the delay in establishing the “Rebuilding Sri Lanka Fund” as statutory fund, noting the potential issues that could arise if further delays persist. Accordingly, the Committee urged officials of the Ministry of Finance to take proactive measures in this regard.Following in-depth deliberations, the Committee approved the Colombo Port City Economic Commission (Amendment) Bill and the Regulations issued under the Imports and Exports (Control) Act, No. 1 of 1969. (as amended)The meeting was attended by Hon. Deputy Ministers Chathuranga Abeysinghe, Dr. Kaushalya Ariyaratne, Nishantha Jayaweera, Hon. Members of Parliament Ravi Karunanayake, Rauff Hakeem, Attorney-at-Law, Nimal Palihena, Wijesiri Basnayake, Thilina Samarakoon, Champika Hettiarachchi, Sunil Rajapaksha, Ajith Agalakada, and Lakmali Hemachandra, Attorney-at-Law.
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