2025-02-28
The officials representing the Ministry of Finance recently disclosed at the Committee on Public Finance that revenue and grants have increased by 33.1% in 2024 compared to 2023. They also stated that this represents an achievement, with revenue collection reaching 99.1% of the anticipated target for 2024, the highest recorded percentage in history.
The officials disclosed this information while presenting the state financial performance for the years 2023 and 2024 during a meeting of the Committee on Public Finance held 25.02.2025, Chaired by (Dr.) Harsha de Silva, Hon. Member of Parliament.
According to the officials representing the Ministry of Finance, the increase in VAT rates and the removal of tax concessions on 95 out of 137 previously VAT-exempt items contributed to this outcome. Additionally, maintaining higher fiscal discipline compared to previous years has been a key factor in achieving this success, and emphasized that this discipline could be further strengthened in the future.
Addressing the meeting, the Chair of the Committee on Public Finance emphasized that the reason for this is the financial discipline created through the legal provisions under the Public Financial Management Act. He further underscored the importance of maintaining such fiscal discipline in the long run to ensure economic progress.
The officials of the Ministry of Finance also stated that the revenue and grants-to-GDP ratio, which stands at 13.6% in 2024, is expected to reach 15.3% by 2029. However, the Committee pointed out that this projected figure for 2029 is still insufficient, as the average for middle-income countries is approximately 20%. The need to improve tax administration to enhance this situation was emphasized during the meeting. Moreover, officials highlighted that, in addition to proper tax administration, Key Performance Indicators (KPIs) have been introduced for institutions such as the Inland Revenue Department, Sri Lanka Customs, and the Excise Department, with the expectation of achieving these targets accordingly.
During the meeting, officials also presented a summary of the "Citizen’s Budget" to the Committee, making the current budget more understandable to the general public. This summary detailed the allocation of funds for 12 sectors, including health, education, and transportation etc. Officials stated that the objective of this initiative is to ensure greater transparency, enabling taxpayers to understand how their tax contributions are being utilized by the government. The Committee instructed officials to present this "Citizen’s Budget" report in comparison with 2024 figures under the Public Financial Management Act. Furthermore, the Committee commended the officials of the Ministry of Finance and the Department of Government Printing for preparing the report in a manner that is accessible and engaging to the general public.
Discussions also covered the anticipated tax revenue from vehicle imports. The Committee questioned whether the expected revenue of approximately LKR 330 billion could realistically be achieved, given that only LKR 83 million in Letters of Credit has been opened thus far, as reported in the media. Officials responded that the high taxes imposed on vehicle imports would enable the achievement of this revenue target. The Committee Chair further instructed officials to provide regular updates on this projected revenue to the Committee.
Additionally, the officials provided details on the profits and losses of state-owned enterprises (SOEs) from January to October 2024. It was disclosed that SriLankan Airlines had incurred a significant loss during this period, while the total profit generated by 52 state-owned enterprises amounted to LKR 428 billion. In contrast, the total losses incurred by SOEs in 2022 amounted to LKR 774 billion.
The Committee Chair also raised concerns regarding the agricultural warehouse project in Dambulla, which was initiated in 2019 but has yet to be operational. Despite the completion of all construction work, delays in procuring refrigeration units have caused a setback in launching this project. Officials confirmed that the warehouse was constructed with a grant from India. The Chair of the Committee emphasized that failing to make this facility available to farmers is a significant issue and urged immediate action to operationalize it.
Additionally, attention was drawn to the five-year closure of the National Art Gallery, Colombo. It was revealed that LKR 120 million has been allocated for its renovations, but delays in the procurement process have hindered its reopening. The Committee Chair urged the relevant authorities to expedite the necessary work to reopen the facility to the public as soon as possible.
The Committee also focused on the management of public debt. Given that a separate law has been enacted for debt management, the importance of effectively implementing its provisions was stressed. The Committee Chair, Hon. (Dr.) Harsha de Silva, emphasized the need to recruit highly skilled professionals to ensure efficient public debt management.
The meeting was attended by Hon. Deputy Minister (Dr.) Harshana Suriyapperuma and Hon. Members of Parliament Ravi Karunanayake, (Dr.) Kaushalya Ariyarathne, Arkam Ilyas, Nimal Palihena, Wijesiri Basnayake, Thilina Samarakoon, and Lakmali Hemachandra, Attorney at Law.
2026-09-03
The Committee on Ways and Means of Parliament recently reviewed the operations of Sri Lanka Customs, including its revenue performance. The matter was considered when the Committee met recently under the chairmanship of Hon. Member of Parliament Wijesiri Basnayake.Officials, including the Director General of Customs, informed the Committee that the expected Customs revenue as of June 30, 2026, was Rs. 1,060,559 million, while actual revenue collected by that date amounted to Rs. 1,379,084 million. This represented 130% achievement against the expected revenue target. Officials further informed the Committee that Customs had generated revenue exceeding the monthly targets in every month of the year to date, and that, compared with 2025, higher revenue performance had been recorded in each month.Providing information on vehicle imports in 2026, officials stated that 316,000 vehicles had been imported as of June 30, 2026, generating Rs. 512,547 million in tax revenue. According to the information presented to the Committee, the highest amount of tax revenue, Rs. 386,726 million, had been generated through the importation of motor vehicles.Furthermore, among the categories of commodities generating the highest Customs revenue, petrol motor cars less than 1,000cc ranked first, generating Rs. 137.4 billion. This represented 9.96% of total revenue.The Committee also focused on matters including the volume of imported containers and the procedures followed for their inspection, the introduction of modern technology to improve the efficiency of Sri Lanka Customs operations, challenges in revenue administration, and future plans.Several Members of the Committee on Ways and Means, together with officials representing the Ministry of Finance, Planning and Economic Development and Sri Lanka Customs, participated in the Committee meeting.
2026-09-03
The Ministerial Consultative Committee on Public Security and Parliamentary Affairs focused its attention on a number of matters relating to ensuring public security, curbing illegal activities, and enhancing the efficiency of the police service.This was discussed when the Ministerial Consultative Committee on Public Security and Parliamentary Affairs met in Parliament on the Aug. 21st, under the chairmanship of Hon. Minister Ananda Wijepala.The Committee paid particular attention to measures taken by the Police to combat cybercrime, illegal online gambling activities and fraud. Officials stated that steps had been taken to block websites associated with illegal gambling and other unlawful activities.It was also revealed that legal action had been taken against foreign nationals residing in Sri Lanka who were engaged in illegal activities related to cybercrime. Officials further stated that arrangements had been made to deport such foreign nationals in coordination with the embassies of the respective countries.Officials appearing before the Committee stated that steps had been taken to recruit software engineers and lawyers to strengthen the human resources required for cybercrime investigations, particularly in terms of technical and legal expertise. They also noted that arrangements were being made to provide newly recruited officers with field training as well as the necessary overseas training.Discussions were also held on the need to introduce new technological systems and establish a centralized system capable of operating in real time in order to make investigations into cybercrime and financial fraud more efficient. It was particularly noted that necessary coordination measures were being undertaken to minimize existing barriers to sharing data with foreign institutions in relation to crimes involving the use of cryptocurrencies.Furthermore, extensive discussions were held on the current status of information received through Community Security Committees, measures to prevent sensitive information received through these committees from being disclosed externally, and further strengthening community policing services.In addition, the Committee emphasized the importance of expediting police investigations to curb illegal activities while upholding the rule of law, making greater use of modern technology, and obtaining further public support.A number of officials, together with Members of the Committee, participated in the Committee meeting.
2026-09-02
The Sectoral Oversight Committee on Economic Development and International Relations focused its attention on the “InSA” (Integrated Systematic Approach for the Family Development of Migrant Workers) Project, which is to be implemented to ensure the welfare of families and the protection of children of workers migrating for foreign employment.The matter was discussed at a meeting of the Committee held on the Aug. 21st, under the chairmanship of Hon. Member of Parliament Attorney-at-Law Lakmali Hemachandra.It was revealed at the meeting that the programme, which is to be implemented by the Ministry of Foreign Affairs, is scheduled to commence at the Divisional Secretariat level from October 1, 2026.It was stated that the primary objective of the programme is to develop family development plans focusing on key areas including the long-term financial management of families of migrant workers, child health and protection, employment training, and small business and export development.The Committee particularly emphasized the need to establish a formal plan for the care, protection and education of children when mothers with children between the ages of 2 and 18 migrate overseas, covering the period during which the mothers are abroad. Attention was also drawn to addressing mothers with children below the age of two in accordance with the existing legal and administrative procedures.The programme is expected to obtain the contribution of Child Rights Promotion Officers, who will provide necessary interventions concerning child protection and family welfare at three stages: prior to departure overseas, while the parent is overseas, and following the family's return to Sri Lanka.Accordingly, it was stated that Child Rights Promotion Officers will intervene to ensure that alternative care plans prepared for children can be practically implemented, identify situations involving risks, and prepare special care plans where necessary. Attention will also be given to providing psychosocial support, including strengthening family relationships, to families returning to Sri Lanka after living overseas.Furthermore, “InSA Committees” are to be established at the Divisional Secretariat level. These committees are expected to work under the chairmanship of the Assistant Divisional Secretary, together with Child Rights Promotion Officers, Early Childhood Development Officers and other relevant field officers, it was stated at the Committee meeting.It was also revealed that a Memorandum of Understanding (MOU) has been proposed between the Sri Lanka Bureau of Foreign Employment and the Ministry of Women and Child Affairs concerning child protection-related activities.The Committee also emphasized the importance of all workers leaving the country for foreign employment registering with the Sri Lanka Bureau of Foreign Employment. As there may be difficulties in implementing welfare and protection programmes for the families of individuals who travel overseas through informal channels, including on tourist visas, due to the absence of official data on such persons, the Committee stressed the need to maintain a formal data system on workers departing the country for foreign employment.During the implementation of the programme, progress is to be monitored at the district level through District Secretaries. The relevant parties were instructed to submit a report on the progress of the “InSA” Project to the Committee by February 2027.
2026-09-02
The Chief of Defence Staff (Repeal) Bill was recently considered by the Sectoral Oversight Committee on Governance, Justice and Civil Protection.The matter was discussed when the Committee met recently in Parliament under the chairmanship of Hon. Member of Parliament Dr. Najith Indika. A group of officials, including Secretary to the Ministry of Defence, Air Vice Marshal Sampath Thuyacontha, were summoned to the meeting.The Bill has been introduced to repeal the Chief of Defence Staff Act, No. 35 of 2009. The Act was enacted in 2009 to carry out functions including the coordination of activities between the Armed Forces and the Ministry of Defence, in accordance with the requirements of the time.However, considering the current situation in the country, it has been determined that there is no longer a need to maintain a dedicated office or position for the coordination of the three Armed Forces. Accordingly, under the ongoing restructuring process of the three Armed Forces, such coordination is being carried out through the Ministry of Defence.It was also observed that, given the country’s current economic situation, transferring the functions of the office to the Ministry of Defence could reduce the financial burden on the Government.Accordingly, the Sectoral Oversight Committee approved the Bill, which is scheduled to be taken up for debate in Parliament on September 9 for the Second Reading.Several Members of Parliament serving on the Sectoral Oversight Committee on Governance, Justice and Civil Protection participated in the meeting.
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