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.
2026-01-30
The Sectoral Oversight Committee on Environment, Agriculture and Resource Sustainability focused its attention on the impact of Cyclone ‘Dithwa’ on the agricultural sector and the environment, as well as the measures being taken to restore affected areas to normalcy.These matters were considered when the Sectoral Oversight Committee on Environment, Agriculture and Resource Sustainability met in Parliament on 22.01.2026, under the chairmanship of Hon. Member of Parliament Hector Appuhamy.Officials representing the Ministry of Agriculture, Livestock, Lands and Irrigation, the Ministry of Plantation and Community Infrastructure, the Ministry of Environment, and the Ministry of Finance, Planning and Economic Development participated in the meeting.During the meeting, the Chairman of the Committee inquired whether the officials representing the respective ministries had prepared data-based reports on the damage caused by Cyclone ‘Dithwa’. In response, the officials stated that assessments had been carried out and that reports estimating the damage had already been prepared. The committee was also briefed on these findings. In addition, officials representing the relevant departments and statutory bodies under each ministry presented the data available with their respective institutions to the committee.Following the presentation of data, the Chairman of the Committee sought clarification regarding the compensation to be provided for the damages incurred and the methodology for calculating such compensation. Officials from the Ministry of Plantation and Community Infrastructure stated that compensation payments would be made after the submission of a Cabinet Memorandum, and therefore indicated that they were unable to present further details at that stage.The Committee emphasized the importance of establishing a formal and systematic mechanism for the payment of compensation and instructed that the compensation process be expedited. The Committee further recommended that the reports prepared by each ministry on the impact of Cyclone ‘Dithwa’ be submitted to the Committee.Hon. Members of Parliament Attorney-at-Law Ajith P. Perera, Roshan Akmeemana, Chathuri Gangani, Susantha Kumara Nawaratne, Attorney-at-Law Bhagya Sri Herath, and Upul Kithsiri also participated in the committee meeting.
2026-01-29
The Sub-Committee on Youth Entrepreneurship, appointed by the Sectoral Oversight Committee on Education, Manpower and Human Capital, convened in Parliament on 21.01.2026 under the chairmanship of Hon. Member of Parliament Sunil Rajapaksha, with the objective of taking necessary measures to nurture young entrepreneurs through the National Youth Services Council (NYSC).Officials representing the National Youth Services Council, Sri Lanka Export Development Board, Ministry of Industries and Entrepreneurship Development, Ceylon Chamber of Commerce, and local banks participated in the meeting.During the meeting, extensive discussions were held on the criteria formulated by the National Youth Services Council for the implementation of a program aimed at providing the required support to develop and empower young entrepreneurs. Discussions also focused on the support and collaboration that could be extended by the Sri Lanka Export Development Board, the Ministry of Industries and Entrepreneurship Development, the Ceylon Chamber of Commerce, and local banks for this initiative.In addition, the committee paid attention to measures that could be taken to integrate university graduates into the entrepreneurship sector, as part of broader efforts to strengthen youth entrepreneurship in the country.Hon. Members of Parliament Chanaka Madugoda, Attorney-at-Law Nilusha Lakmali Gamage, and Krishnan Kalaichelvi also participated in the meeting of the sub-committee.
2026-01-29
The Committee on Public Finance of Parliament held extensive discussions on issues related to the gem and jewellery industry.These matters were discussed when the committee met in Parliament on 27.01.2026, under the chairmanship of Hon. Member of Parliament Dr. Harsha de Silva. The meeting was attended by Hon. Deputy Ministers Chathuranga Abeysinghe, Dr. Kaushalya Ariyaratne, and Nishantha Jayaweera, as well as Hon. Members of Parliament Ravi Karunanayake, Harshana Rajakaruna, Nimal Palihena, and Wijesiri Basnayake.Representatives of several organizations representing different segments of the gem and jewellery industry and business sector briefed the committee on the challenges faced by their respective fields. They highlighted that the absence of a long-term national policy for the gem and jewellery industry has resulted in significant difficulties, and strongly emphasized the need to formulate a robust national policy for the sector.They further pointed out that the industry could be strengthened by relaxing existing regulations to encourage exports, reviewing and restructuring the role of the National Gem and Jewellery Authority, introducing safe harbour rules for income tax, implementing VAT reforms specific to the gem and jewellery industry, regulating foreign entities operating informally, and promoting foreign investment.In addition, industry representatives drew the committee’s attention to issues such as the prohibition on the use of scanning equipment during gem mining operations and the declining availability of land for existing mining activities, which pose serious challenges to the sector.In his concluding remarks, the Chairman of the Committee stated that the discussions helped identify key problem areas within the industry, particularly in relation to liberalization (both fiscal and physical), administration, and policy matters concerning mining operations. Accordingly, he emphasized that the committee intends to consolidate these issues into a comprehensive discussion paper and engage in a series of productive discussions with senior officials of the relevant ministries.
2026-01-29
Agreement to commence operations using existing resources of the Sri Lanka Foundation and the National Film CorporationEstablishment of a technical committee representing all stakeholders to plan next stepsSteps to revive the Colombo International Film Festival this yearDiscussions on constructing a modern, technologically equipped film studio complexPreliminary discussions on establishing a National Film School in Sri Lanka were held recently (Jan. 22) under the leadership of the Parliamentary Caucus on Arts and Cultural Affairs.The meeting was chaired by the Hon. Member of Parliament Jagath Manuwarna, Chairman of the Parliamentary Caucus on Arts and Cultural Affairs, and was attended by the Hon. Deputy Minister of Mass Media, Dr. Kaushalya Ariyaratne. Officials representing the National Film Corporation, the State Cinema Advisory Board, and the Sri Lanka Foundation participated in the meeting, along with representatives from the Film Directors’ Guild, Art Directors’ Guild, Screenwriters’ Guild, SAARC Cultural Center, university academics specializing in film studies, and a number of professionals from the cinema industry.During the meeting, officials, film professionals, and academics presented their views and proposals regarding the establishment of a National Film School. It was emphasized that the institution should go beyond theoretical instruction and offer programs focused on producing practically skilled filmmakers. The need to operate the school in accordance with international standards of film education was also discussed.Although the establishment of a National Film School has been a long-standing discussion aimed at uplifting the local film industry, it has yet to be realized. In this context, the Chairman of the Parliamentary Caucus stressed the importance of initiating the school through the collective involvement of all relevant stakeholders, making use of existing resources, and strengthening the institution progressively over time.Accordingly, discussions were held on taking initial steps to establish the National Film School by utilizing existing resources of the Sri Lanka Foundation, which operates under the Ministry of Mass Media, and the National Film Corporation, which functions under the Ministry of Buddhasasana, Religious and Cultural Affairs. It was also decided to establish a committee to prepare the legal framework, obtain necessary initial approvals, and plan the required preliminary actions.As a result, a technical committee comprising representatives from the Parliamentary Caucus on Arts and Cultural Affairs, the Sri Lanka Foundation, the National Film Corporation, the State Cinema Advisory Board, and representatives of the cinema industry was established.The committee includes the Chairman of the Parliamentary Caucus Hon. MP Jagath Manuwarna, Chairman of the National Film Corporation Sudath Mahadivulwewa, Chairman of the Sri Lanka Foundation Prof. Seetha Bandara, Chairman of the State Cinema Advisory Board Dr. Senesh Dissanayake Bandara, Director of SAARC Cultural Center Dr. Kaushalya Kumarasinghe along with several representatives from the film sector.In addition, another committee consisting of senior professionals in the cinema industry was appointed to plan academic activities, including the curriculum of the film school.Attention was also drawn to reviving the currently inactive ‘International Film Festival, Colombo’ (IFF Colombo) during this year. Accordingly, agreement was reached on securing the necessary funding and establishing an institution to ensure the long-term, sustainable operation of the festival. The Chairman of the Parliamentary Caucus, Hon. MP Jagath Manuwarna, stated that he is prepared to provide the necessary support and intervention for all these initiatives.Furthermore, discussions were held on constructing a modern, technologically advanced studio complex to support film production activities. The need to identify a suitable land area close to Colombo and the future steps required for this project were also considered.Members of Parliament of the Parliamentary Caucus on Arts and Cultural Affairs, including Prof. Sena Nanayakkara, Attorney-at-Law Susantha Dodawatte, Attorney-at-Law Nilanthi Kottahachchi, Ruwan Mapalagama, Sugath Wasantha de Silva, Attorney-at-Law Hiruni Wijesinghe, Dinesh Hemantha, Upul Kithsiri, and several other MPs, also participated in the meeting.
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