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.
2026-06-25
The report submitted by the Central Bank of Sri Lanka to the Committee on Public Finance (COPF) regarding the disappearance of USD 2.5 million that had been held by the Treasury for the repayment of state debt was discussed at a recent meeting of the Committee.The meeting was held in Parliament on the 23rd June under the chairmanship of Hon. Member of Parliament Dr. Harsha de Silva, with the participation of Hon. Deputy Ministers Chathuranga Abeysinghe, Dr. Kaushalya Ariyarathne, and Nishantha Jayaweera, as well as Hon. Members of Parliament Attorney-at-Law Rauff Hakeem, Ravi Karunanayake, Harshana Rajakaruna, Ajith Alahakoon, Nimal Palihena, Attorney-at-Law Chithral Fernando, Wijesiri Basnayake, Champika Hettiarachchi, M.K.M. Aslam, and Attorney-at-Law Lakmali Hemachandra.The report submitted by the Ministry of Finance, Planning and Economic Development to the Committee on Public Finance on the 8th regarding the disappearance of USD 2.5 million was subsequently examined by officials of the Central Bank of Sri Lanka. Following this review, the Central Bank submitted a report containing its observations and views to the Committee.Extensive discussions were held on the report presented by the Central Bank. The Chairman of the Committee on Public Finance stated that, after considering both the report submitted by the Ministry of Finance, Planning and Economic Development and the report submitted by the Central Bank, a final report would be prepared and presented to Parliament in due course.Dr. Harshana Suriyapperuma, Secretary to the Ministry of Finance, Planning and Economic Development; Varuna Sri Dhanapala, Secretary to the Ministry of Digital Economy; Dr. Nandalal Weerasinghe, Governor of the Central Bank of Sri Lanka and officials of the Sri Lanka Computer Emergency Readiness Team (CERT) were also preset at the meeting.
2026-06-23
The Department of the Public Trustee was summoned before the Committee on Public Accounts (COPA) to examine the Auditor General's triennial report for the years 2021–2023, matters raised in the Auditor General’s Report for 2024 and the Department’s current performance. The discussion took place when COPA met recently in Parliament under the chairmanship of Hon. Member of Parliament Kabir Hashim.During the meeting, the Chairman inquired about the implementation of a recommendation made at the Committee’s meeting in May 2024. The recommendation requested a report containing details of the various avenues through which the Department receives assets, the dates on which those assets were received, the parties that transferred them, and the conditions attached to such transfers.Officials informed the Committee that the relevant report had been submitted. The Committee further recommended that a report on the number of trusts and properties currently held by the Department of the Public Trustee be provided.The Committee also questioned officials regarding the tender process to lease 113 acres of land belonging to the Harry Hapugoda property in Suduvelipotha, Baddegama, Galle. Officials stated that a bid exceeding the assessed value of the property had been received. It was also revealed that portions of the land are being occupied without authorization by various parties.Attention was further drawn to the maintenance of the Richmond Castle building. Officials informed the Committee that modernization and renovation work is expected to commence in July. Committee members also observed that although the coconut harvest from the estate is satisfactory, the property is not being maintained adequately.The meeting was attended by committee member and Hon. Deputy Minister of Vocational Education Nalin Hewage, along with Hon. Members of Parliament and committee members Chanaka Madugoda, J.C. Alawathuwala, Oshani Umanga, Sagarika Athauda (Attorney-at-Law), T.K. Jayasundara, Chandana Suriyaarachchi, Ajantha Gammeddage, Lal Premanath, Ruwanthilaka Jayakody and Sunil Ratnasiri.
2026-06-23
The Ministerial Consultative Committee on Education, Higher Education, and Vocational Education met recently in Parliament under the chairmanship of the Hon. Prime Minister and Minister of Education, Higher Education, and Vocational Education, Dr. Harini Amarasuriya. During the meeting, Hon. Members of Parliament raised a range of current issues affecting the education sector.The Committee discussed several matters, including the need to introduce a standardized plan and model for primary school construction, administrative issues in assisted schools, teacher transfer-related concerns, the progress of school construction projects at the provincial level, challenges within the vocational education sector and future development plans.Following discussions with relevant officials, the Hon. Prime Minister instructed them to take immediate action to address the issues raised and to implement the necessary measures without delay.The Committee also reviewed the progress of the subcommittees established under the Ministerial Consultative Committee.The meeting was attended by the Hon. Deputy Minister of Education and Higher Education, Dr. Madhura Seneviratne, the Hon. Deputy Minister of Vocational Education, Nalin Hewage, a group of Hon. Members of Parliament and officials including the Secretary to the Ministry of Education, Higher Education, and Vocational Education, Mr. Nalaka Kaluwewa.
2026-06-19
The Ministerial Consultative Committee on Environment focused its attention on the issue of water pollution in the Kelani River when it met in Parliament recently (10th June) under the chairmanship of the Hon. Minister of Environment, Dr. Dammika Patabendi.During the meeting, the Committee was briefed on the progress of discussions being held with companies that have expressed willingness to invest in a project aimed at cleaning the waters of the Kelani River.The Committee also discussed a number of proposals and other issues raised by Hon. Members of Parliament.The meeting was attended by Hon. Members of Parliament and officials.
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