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.
2026-11-14
The financial crisis faced by SriLankan Airlines, frequent flight delays, debt burden and delays in procurement processes for acquiring new aircraft were discussed extensively at the Sectoral Oversight Committee on Infrastructure and Strategic Development.These matters were discussed when the Committee met recently in Parliament under the chairmanship of Hon. S. M. Marikkar, Member of Parliament.During the meeting, concerns were raised over the inadequacy of the airline’s existing fleet of 23 aircraft, which are approximately 12 years old. Technical issues and operational delays arising from the ageing fleet were also discussed. It was pointed out that a technical fault or any other disruption involving a single aircraft could affect the entire flight network due to the limited availability of alternative aircraft.The Committee also focused on the failure of conventional procurement processes previously undertaken to acquire aircraft and the lengthy delays associated with them. It was stated that a special set of procurement guidelines had been prepared for the purchase of aircraft and related equipment, and arrangements were being made to gazette these guidelines. It was further revealed that a dedicated procurement unit had been established at the Ministry level to directly oversee the procurement process.Under the new procurement guidelines, plans are underway to expand the airline’s fleet. It is expected that one new narrow-body aircraft and two wide-body aircraft will be added to the fleet by next June. Officials also stated that increasing the fleet to at least 29 aircraft by 2029 is one of the key targets of the five-year plan.It was explained that several measures had been taken through the General Treasury to improve the financial position of SriLankan Airlines, including the takeover of outstanding bank loans and bond-related debt. Attention was also drawn to reducing aircraft leasing costs, managing fuel expenditure and implementing commercial strategies to increase the airline’s revenue.The impact of the prevailing crisis in the Middle East, rising fuel prices and competition from international airlines on SriLankan Airlines’ operations and revenue was also discussed.Furthermore, it was stated that the committee appointed by the Government to restructure SriLankan Airlines was considering several options, including attracting new investors, establishing a public-private partnership, or retaining the airline under State ownership while bringing its operations to a level where it could cover its costs.Accordingly, the Committee instructed the relevant authorities to submit a comprehensive report to Parliament and the Ministry before November 30, outlining the measures required to bring SriLankan Airlines to a cost-recovery level within the next two to three years.Hon. Members of Parliament Ajith P. Perera, Nalin Bandara Jayamaha, Ravindra Bandara, Manjula Suweera Arachchi, Chathura Galappaththi, Dhanushka Ranganath, Jagath Vithana, Shantha Padma Kumara Subasinghe and Attorney-at-Law Geetha Herath also attended the Committee meeting.
2026-11-14
The Committee on Ways and Means held an extensive discussion on Sri Lanka’s tariff policies and the current status of trade agreements. The meeting was held under the Chairmanship of Hon. Vijesiri Basnayake, Member of Parliament at Parliament recently.Mr. Somasena Mahadiulwewa, Director General (Acting) of the Department of Commerce of Sri Lanka, provided a detailed explanation to the Committee on these matters. The discussion focused on the current status of Sri Lanka’s bilateral and multilateral trade agreements and measures to move them forward.The Committee stressed the importance of conducting feasibility studies on trade agreements that are currently under negotiation and taking the necessary steps to ensure that these discussions continue.Hon. Deputy Ministers Chathuranga Abeysinghe and Eranga Weeraratne, and Hon. Members of Parliament Ashoka Sapumal Ranwala, Thilina Samarakoon, Champika Hettiarachchi and Chathura Galappaththi, among others, also participated in the Committee meeting.
2026-11-13
The Prevention of Foreign Terrorist Fighters Bill received the approval of the Sectoral Oversight Committee on Economic Development and International Relations.The Bill was considered and approved when the Sectoral Oversight Committee met recently in Parliament under the chairmanship of Hon. Member of Parliament (Attorney-at-Law) Lakmali Hemachandra. The Bill has been presented to give effect to United Nations Security Council Resolution 2178, adopted on 24 September 2014, which addresses the prevention and suppression of the threat posed by foreign terrorist fighters, and to provide for matters connected therewith or incidental thereto.The Bill was presented to Parliament for its First Reading on 20 October by the Minister of Foreign Affairs, Foreign Employment and Tourism.Officials explained to the Committee that legal action could be instituted in Sri Lanka under this Act in cases where an offence has been committed within or outside Sri Lanka by a Sri Lankan citizen or a citizen of another country, provided that the act in question also constitutes an offence under the law of the relevant country.Officials further informed the Committee that engaging in terrorist activities, planning or preparing such activities, participating in them, as well as providing or receiving terrorist training, have been defined as offences under the proposed Act.The officials also emphasized that these legal provisions had not been introduced on an ethnic basis or with the intention of targeting Sri Lankans residing overseas.Following an extensive discussion, the Committee approved the Bill. However, Hon. Member of Parliament Sivagnanam Shritharan, a member of the Committee, expressed his opposition to the Bill.Hon. Members of Parliament Suranga Rathnayake, Thilina Samarakoon, Wijesiri Basnayake and Sivagnanam Shritharan, among others, attended the Committee meeting. Government officials representing the Ministry of Foreign Affairs, Foreign Employment and Tourism, the Ministry of Defence, the Attorney General’s Department and the Legal Draftsman’s Department were also present.
2026-11-13
Salary anomalies arising when teachers are appointed to the Sri Lanka Principals’ Service were discussed at length at a subcommittee appointed by the Sectoral Oversight Committee on Education, Manpower and Human Capital.These matters were discussed when the subcommittee met recently under the chairmanship of Hon. Member of Parliament Sunil Rajapaksa.Representatives of trade unions of the Sri Lanka Principals’ Service and officials representing the Ministry of Education, Higher Education and Vocational Education and the Ministry of Finance, Planning and Economic Development participated in the meeting.Trade union representatives pointed out that one of the main reasons for these salary anomalies was the fact that the transition from the Teachers’ Service to the Principals’ Service was treated as a “new appointment” rather than a promotion.They further noted that the situation was exacerbated by the significant difference in salary increments when teachers in Grade I of the Teachers’ Service are appointed to Grade III of the Principals’ Service.They also pointed out that although an adjustment allowance had been granted to compensate for the salary difference arising from the appointment to the Principals’ Service, a further salary disparity emerges over time. This is because officers do not receive the higher salary increments, they would have been entitled to had they remained in the Teachers’ Service.It was further emphasized that this situation has discouraged senior and experienced teachers serving in Grades I and II-I of the Teachers’ Service from sitting for the Principals’ Service examination and joining the Principals’ Service.The Chairman of the Subcommittee stated that, having considered the matters presented to the Committee, steps would be taken to submit the relevant recommendations to the Salaries and Pensions Commission for Public Officers.In addition, the Subcommittee decided to hold discussions with the Ministry of Education, Higher Education and Vocational Education, the Ministry of Finance, Planning and Economic Development, and the Director General of Establishments to address other issues faced by officers serving in the Principals’ Service.Hon. Members of Parliament Abubakar Athambawa, Sugath Wasantha de Silva and Chanaka Madugoda also attended the meeting.
Handbook of Parliament
The System of Elections in Sri Lanka
How Parliament Works
Business of Parliament
Copyright © The Parliament of Sri Lanka.
All Rights Reserved.
Design & Developed by TekGeeks
