2025-05-20
The Airports and Aviation Services (Sri Lanka) (Private) Limited (AASL) has paid Rs. 37 billion to Taisei Corporation for the Passenger Terminal Building & Associated Works construction contract, Package A, at an actual progress of about 5.44%, compared to the expected physical progress of 30%.
This was revealed when the Committee on Public Enterprises (COPE) of Parliament met in Parliament recently under the chairmanship of Hon. Member of Parliament (Dr.) Nishantha Samaraweera, to examine the Auditor General’s reports for the years 2022 and 2023 and the current performance of the Airports and Aviation Services (Sri Lanka) (Private) Limited (AASL).
Officials present said that due to the circular issued by the Ministry of Finance on 12 April 2022 titled “Interim Policy on Servicing of Sri Lanka's External Public Debt”, JICA had suspended the release of loan installments for the project and as a result, the contractor had stopped construction work on 09 December 2022 and had to make a payment of Rs. 37 billion, including the loss incurred as a result.
The Committee questioned how reasonable it was to pay such a large amount to Taisei Company for an actual progress of about 5.44%, even after two years of the contract period had elapsed in a project for a period of 3 years. Furthermore, the COPE discussed at length the award of contracts to a company other than the ‘Taisei’ Company to minimize the damage to the construction after the construction work was stopped, and the additional cost of Rs. 1,328.7 million was incurred for those contracts.
After the construction work of the said project was stopped, the materials and equipment purchased by the contractor in relation to the project were to be taken over by AASL, and the materials and equipment worth Rs. 1,550 million were stored in private warehouses under the contract with the local subcontractors of the contractor who stopped the project.
In this regard, the Chairman of AASL had appointed nine committees, and according to the evaluation and recommendations of the said committees, it was informed that Rs. 392,904 could be saved monthly by moving their incinerator to another warehouse. However, the Committee also drew attention to the fact that the company had to incur additional storage costs of Rs. 3.9 million from March 2023 to December 2024 due to non-implementation of those recommendations.
The COPE also questioned the construction of the Minuwangoda double-lane road. The Committee emphasized that the construction of the multi-storey car park has been hampered due to the construction of these lanes and that there are many design and construction issues in the projects of the Airports and Aviation Services (Sri Lanka) (Private) Limited.
Hon. Members of Parliament Samanmali Gunasinghe, Dharmapriya Wijesinghe, Asitha Niroshana Egoda Withana, Chandima Hettiarachchi, Lieutenant Commander (Rtd) Prageeth Madhuranga and Attorney-at-Law Lakmali Hemachandra were present in this Committee meeting.
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.
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