2025-03-08
News Categories : Committee News
The proposal submitted by the Ministry of Finance to increase the Excise Duty received the approval of the Committee on Public Finance. This approval was granted during the meeting of the Committee on Public Finance held on 06.03.2025 in Parliament, chaired by (Dr.) Harsha de Silva, Hon. Member of Parliament.
The Committee considered Gazette Extraordinary no. 2418/42 published under the Excise Notification No. 01/2025 (Excise Duty of Liquor) issued under the Section 22 of the Excise Ordinance (Chapter 52), Gazette Extraordinary no. 2418/43 published under the Order under the Section 3 of the Excise Special Provisions) Act, and Gazette Extraordinary no. 2415/79 published under the Regulations under section 112 of the Regulation of Insurance Industry Act No. 43 of 2000 at the Committee meeting held.
Accordingly, the Committee deliberated on the Order under Section 3 of the Excise (Special Provisions) Act, No. 13 of 1989, as well as Excise Notification No. 01/2025 issued under Section 22 of the Excise Ordinance (Chapter 52).
Officials who presented their views on the matter stated that under the Order pursuant to Section 3 of the Excise (Special Provisions) Act, No. 13 of 1989, an increase of 5.9% has been proposed for the excise duty imposed on all items subject to a fixed rupee value-based excise duty, including motor vehicles, cigarettes, aerated beverages, and tobacco products. Furthermore, under the Excise Notification No. 01/2025 issued under Section 22 of the Excise Ordinance (Chapter 52), an increase of 5.9% in the excise duty on liquor products has also been proposed, the officials said.
Expressing his views, the Committee Chair stated that the increase in the excise duty on cigarettes cannot be approved without concrete data and emphasized the need for justification regarding the steps taken to increase the excise duty on cigarettes. Furthermore, he pointed out that studies conducted on excise revenue from cigarettes indicate that this calculation method has led to a decline in government revenue while increasing the profits of particular manufacturing companies. Therefore, he stressed the importance of ensuring that this tax revision would indeed be beneficial to government revenue. Consequently, the Chair decided to reconsider the Order issued under Section 3 of the Excise (Special Provisions) Act, No. 13 of 1989 at the next Committee meeting following further clarifications from officials of the Ministry of Finance, regarding the excise duty increase.
Moreover, the proposal to increase the excise duty on liquor under Excise Notification No. 01/2025 issued under Section 22 of the Excise Ordinance (Chapter 52) was considered and approved by the Committee. During the discussions, Members of Parliament raised concerns that such tax increases could potentially drive individuals towards the consumption and production of illicit liquor. In response, officials stated that raids against illicit liquor operations are being conducted systematically. Additionally, they mentioned that within the past two months, the production of liquor in the country had increased by 22%, while revenue had grown by 23%. Furthermore, it was stated that plans are underway to introduce a new category of liquor with the aim of minimizing the consumption of illicit liquor.
Additionally, the Regulations issued under Section 112 of the Regulation of Insurance Industry Act No. 43 of 2000, published in Gazette Extraordinary No. 2415/79, were considered and approved by the Committee. Under this regulation, the annual levy payable by insurance companies to the Insurance Regulatory Commission of Sri Lanka (IRCSL) has been proposed to be increased from 0.125% to 0.2% of the gross written premium in order to cover the increased expenditure of the Commission.
During the discussions, the Chair informed the Committee of certain instances where the Insurance Regulatory Commission of Sri Lanka (IRCSL) had not carried out regulatory functions effectively. He further expressed his dissatisfaction regarding the delayed actions taken by the Commission under the prevailing law concerning the situation at MBSL Insurance. He instructed officials to keep the Committee informed of future measures to be taken in this regard. Moreover, the Committee emphasized the necessity for the Insurance Regulatory Commission of Sri Lanka to develop and present a strategic plan to enhance the insurance sector as an industry in the country.
The Committee also held an extensive discussion on the complexities involved in obtaining claims under third-party insurance. It was highlighted that there is a need for simplified regulations to ensure that claimants can access third-party insurance funds more easily in the event of an accident. The Committee directed the Insurance Regulatory Commission of Sri Lanka to address this matter.
Additionally, the Chair drew the attention of the Committee to the possibility of utilizing funds deposited in insurance reserves through banking mechanisms for development purposes. Consequently, the Director General of the Insurance Regulatory Commission of Sri Lanka was instructed to formulate and submit a regulatory framework for this purpose after engaging in discussions with industry stakeholders.
The Committee also discussed taxation related to casinos. The Chair pointed out that while taxes are imposed on physically established casino establishments, a large number of online casinos operate without any taxation. He stressed the need to address this issue and bring these online casinos under a regulatory framework. Furthermore, he reiterated that the Committee had been working for years to establish a Casino Regulatory Authority and stated that steps would be taken to inform the Attorney General’s Department to expedite the drafting of the necessary legislation.
This meeting was attended by Hon. Deputy Ministers (Dr.) Harshana Suriyapperuma and Chathuranga Abeysinghe, along with Hon. Members of Parliament Ravi Karunanayake, Harshana Rajakaruna, (Dr.) Kaushalya Ariyaratne, Nimal Palihena, Wijesiri Basnayake, and (Attorney-at-Law) Lakmali Hemachandra.
2026-08-25
A special meeting was held yesterday at Parliament to discuss the future work of the Expert Panel appointed to reform Sri Lanka’s electoral system, excluding Provincial Council elections, to make it more efficient, transparent, and responsive to the expectations of the people.The discussion was held under the chairmanship of Hon. Prof. A.H.M.H. Abeyaratne, Minister of Public Administration, Provincial Councils and Local Government, who is also the Chairman of the Select Committee of Parliament to review the laws dealing with Elections (excluding laws dealing with Provincial Council Elections) and report to Parliament and submit its proposals and recommendations in that regard.The meeting included extensive discussions on the role of the Expert Panel, the matters that should be reviewed, and how the next stages of the process should be carried out.The Expert Panel is expected to conduct an in-depth review of 31 proposals submitted by the public and various organizations concerning electoral reforms and to make the necessary recommendations. Relevant studies and research conducted by the university community and research institutions will also be taken into consideration during the review process.The Panel has been given a period of two months to conduct this review. During this period, attention will be focused not only on identifying shortcomings in the existing electoral system, but also, where necessary, on making recommendations for establishing a new electoral system and electoral culture with more constructive and positive features.Accordingly, the ultimate objective of the Committee is not merely to introduce several amendments to the existing system. Rather, it is to present Parliament with a report containing the necessary policy and legislative recommendations for a more credible, democratic, and efficient electoral system that is suited to current needs and the expectations of the people.Committee members Hon. Members of Parliament Ruwanthilaka Jayakody, Attorney-at-Law Thushari Jayasinghe, and Chandima Hettiarachchi also participated in the meeting.
2026-08-25
The Committee on Public Accounts (COPA) paid special attention to the progress of investigations into financial fraud and disciplinary violations that have occurred within the Department of Posts from 2004 to 2025.This was discussed when COPA met at Parliament recently (Aug. 20), under the chairmanship of Hon. Member of Parliament Kabir Hashim, to review the progress made in implementing the recommendations issued by COPA on April 7, 2026, as well as the current performance of the Department of Posts.It was revealed that a new computerized software system has been introduced to streamline the investigation process. The system is being used to update information relating to investigation files and monitor their progress. The Committee stressed the need to expedite investigations by prioritizing significant financial fraud and serious disciplinary violations, rather than spending resources on prolonged investigations into minor incidents.The meeting also discussed the fact that some investigations have remained unresolved for many years, that some individuals facing allegations have disappeared or died, that legal action in certain cases has been delayed, and that the investigation division is experiencing a shortage of human resources.The Committee further emphasized the need to complete investigations and disciplinary proceedings against officers accused of financial fraud within specified timeframes. Instructions were also given to expedite the necessary measures to recover losses from the parties responsible once investigations have been completed.The Committee also focused on the need to further strengthen financial management and internal control mechanisms within the Department of Posts.Meanwhile, the management of overtime payments within the Department of Posts was also discussed. Officials stated that steps are being taken to introduce an Optimum Cadre - the optimal number of employees - based on a work study conducted by the Department of Management Services covering all nine provinces and the Central Mail Exchange. It was noted that fingerprint machines are now being used to accurately verify employee attendance when making overtime payments. Going forward, the Department plans to use this data to further streamline the payment of overtime allowances.The modernization and digitalization of postal services also received the Committee's attention. Discussions covered plans to further expand value-added services such as Speed Post, Cash on Delivery, and International Courier, digitalize postal banking services, and increase the Department of Posts' revenue through the use of new technologies.The Committee also stressed the importance of maintaining sub-post offices in difficult-to-reach areas where they provide essential services to the public, rather than closing them as part of the restructuring of the Department of Posts' network of sub-post offices.The meeting was attended by Committee member and Hon. Deputy Minister Nalin Hewage, as well as Committee members Hon. Members of parliament Chanaka Madugoda, Oshani Umanga, Attorney-at-Law Sagarika Athauda, Manjula Suraweera Arachchi, Chandana Sooriyaarachchi, Ajanta Gammaddege, Lal Premanath, Ruwanthilaka Jayakody and Sunil Ratnasiri.
2026-08-24
The Sectoral Oversight Committee on Governance, Justice and Civil Protection focused on obtaining the views and proposals of the Police Department on measures that could be taken to reduce overcrowding in prisons.At a recent meeting of the committee held at Parliament under the chairmanship of Hon. Member of Parliament Dr. Najith Indika, discussions focused particularly on the Police Department’s procedures from the arrest of suspects in connection with drug-related offences through to the filing of cases, as well as on removing existing legal obstacles affecting these processes.The committee also discussed delays in proceedings relating to drug-related cases, delays in obtaining reports from the Government Analyst, and the resulting increase in the number of suspects being held in remand custody.It was emphasized that, in combating drug-related offences, it is necessary not only to arrest individuals but also to use modern technology to identify and control drug-trafficking networks and the illegal financial transactions associated with them. The need to introduce appropriate regulatory mechanisms to prevent the misuse of digital money-transfer systems operated by telecommunications companies by drug traffickers for illegal financial transactions was also highlighted.The meeting also discussed the need to strengthen community-based rehabilitation programmes as an alternative to imprisoning persons addicted to drugs, increase public participation in crime prevention, and amend existing laws to bring them in line with current requirements.Views were also expressed on the need to establish a modern forensic laboratory within the Police Department in order to expedite criminal investigations. It was pointed out that speeding up the analysis of scientific evidence could accelerate court proceedings and thereby help reduce prison overcrowding.In addition, attention was given to improving the welfare of police officers, enhancing their professional training and investigative skills, and strengthening mechanisms for evaluating police performance.Members of the committee who attended the meeting included Hon. Members of Parliament Ajith P. Perera, G.G. Ponnambalam, Mujibur Rahman, M.K.M. Aslam, Dr. Sellathamby Thilakanathan, Dharmapriya Wijesinghe, Chandana Suriyaarachchi, and Major General (Retired) G.D. Sooriyabandara.Secretary to the Ministry of Public Security and Parliamentary Affairs D.W.R.B. Seneviratne, Inspector General of Police Attorney-at-Law Priyantha Weerasuriya, and a number of senior officers of the Police Department were also present at the meeting.
2026-08-24
Focus on financial administration, wastewater management, and research allowancesThe Committee on Public Enterprises (COPE) of the Parliament met recently (Aug. 19) at Parliament, chaired by Hon. Member of Parliament Dr. Nishantha Samaraweera, to examine the Auditor General’s reports relating to the University of Peradeniya for 2023 and 2024, as well as its current performance. The University of Peradeniya had also been summoned before the COPE on the 5th of this month for discussions on these matters, and the committee met again for a second day as a continuation of those discussions.During the meeting, extensive discussions were held on the University’s financial administration, wastewater management, payment of research allowances, institutional governance, and future development plans.Particular attention was given to the University’s wastewater system, including the environmental impact caused by the discharge of wastewater from several student hostels. It was also revealed that, due to delays in the project to connect the University’s wastewater system to the Kandy Municipal Wastewater Project, the original estimated cost had increased from Rs. 464 million to Rs. 1.4 billion. Officials informed the committee that Rs. 2 billion in funding had been obtained through JICA to proceed with the project.The committee also focused on the 68 bank accounts maintained by the University, as well as a large number of accounts associated with various funds. The committee questioned the continued maintenance of certain accounts even after the completion of the projects to which they related, as well as the absence of centralized monitoring of information concerning the funds.Special attention was also given to the payment of research allowances. It was revealed during the discussion that research allowances had been paid to 59 officers belonging to the non-academic and executive staff without approval from the Research Management Committee and without obtaining research reports. It was further stated that, as of 30 June 2023, 28 of those officers had still not submitted the relevant research reports. The committee emphasized that research allowances must be used exclusively for research activities and that research proposals, progress reports, and final reports must be obtained in accordance with the prescribed procedures. While research activities should be encouraged, the committee pointed out that the use of research allowances as an additional salary or remuneration could not be approved under any circumstances.The committee also questioned the existence of positions and the payment of allowances without the approval of the Department of Management Services (DMS). The committee instructed the University to take steps to legally regularize all positions and payments that do not comply with government financial regulations and existing laws and regulations.Meanwhile, COPE emphasized the need for the University’s future development plans to be prepared with clear Key Performance Indicators (KPIs). The committee also instructed that development programmes, including wastewater and solid-waste management and the construction of a new clinical block, be implemented expeditiously.The committee further stressed the need to provide specific and direct responses to audit queries, properly disclose financial information relating to all funds and accounts, and promptly implement the recommendations made by the Auditor General.The meeting was attended by Members of Parliament Attorney-at-Law Dayasiri Jayasekara, Attorney-at-Law Lakmali Hemachandra, Sunil Rajapaksha, Chandima Hettiarachchi, Dinesh Hemantha, Samanmali Gunasinghe, Attorney-at-Law Nilanthi Kottahachchi, Thilina Samarakoon, Sudath Balagalla, and retired Lieutenant Commander Prageeth Maduranga.
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