2025-03-20
The Committee on Public Finance questioned why only around 800,000 falling under the tax net when there are approximately 8 million in the workforce. The Officials representing the Ministry of Finance and the Hon. Deputy Ministers (Dr.) Harshana Suriyapperuma stated that the system is as such that only around 800,000 out of the approximated 8 million satisfy the tax thresh-hold.
The Committee on Public Finance met in Parliament on the 18th March 2025, Chaired by of (Dr.) Harsha de Silva, Hon. Member of Parliament to discuss the Inland Revenue (Amendment) Bill to amendment the Inland Revenue Act, No. 24 of 2017.
This matter was discussed when the Committee took into consideration the proposal that PIT (Personal Income Tax) relief to be increased from Rs. 1,200,000 per annum to Rs. 1,800,000 per annum under the Bill.
Accordingly, the said Bill while proposing PIT (Personal Income Tax) relief to be increased from Rs. 1,200,000 per annum to Rs. 1,800,000 per annum, also Income Tax rate on betting and gaming, tobacco and liquor industries to be increased from 40% to 45%.
Furthermore, export of services will be liable for income tax at the rate of 15% and proposals have also been made that Withholding Tax (WHT) rate on interest to be increased from 5% to 10%.
Considering PAYE data analysis in-depth, the Committee on Public Finance concluded that there is an error in the existing data. Accordingly, the Committee Chair directed the officials to provide an accurate data analysis to the Committee.
Moreover, it was also disclosed at the Committee on Public Finance that the implementation of obtaining a Taxpayer Identification Number (TIN) is essential for paying taxes / importing/exporting or obtaining any services from the Inland Revenue is not functioning. The Committee instructed the officials present to update the Committee on the status regarding the smooth execution of the process.
Considering the proposal on Income Tax rate on betting and gaming, tobacco and liquor industries to be increased from 40% to 45% the Committee expressed its dissatisfaction over the failure of the Ministry to duly establish a casino regulator. Furthermore, the Committee Chair also expressed its dissatisfaction given that the Inland Revenue Department had failed to provide proper data requested by the Committee previously on the revenue received from Casino operations of the last 5 years.
The Committee also questioned official present regarding having to pay 25% for tax appeal. The Committee questioned if it is ethical to demand a cash deposit instead of a bank guarantee when making an appeal. The Hon. Deputy Ministers (Dr.) Harshana Suriyapperuma stated that people use the appealing mechanism as a tool to avoid paying revenue due to the government and hence a cash deposit in replace of a bank guarantee has been proposed. Committee directed the officials to provide data analyzing the cases for better understanding to arrive at a conclusion on the matter.
This meeting was attended by Hon. Deputy Ministers (Dr.) Harshana Suriyapperuma along with Hon. Members of Parliament Ravi Karunanayake, Wijesiri Basnayake, Nimal Palihena.
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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