2025-09-17
News Categories : Committee News
It was disclosed at the recent meeting of the Committee on Public Enterprises that due to the Geological Survey & Mines Bureau not properly charging the state royalty, a large amount of money has been lost to the government.
This was disclosed during the Committee’s inquiry into the Auditor General’s reports for the years 2022 and 2023 of the Geological Survey & Mines Bureau and its current performance, under the chairmanship of Hon. (Dr.) Nishantha Samaraweera on 2025.09.12 at Parliament.
It was also disclosed that the Bureau had issued a mining license from December 2023 to September 2024 to a private company for sand removal at the Mukkutoduwawa Estate in Puttalam District belonging to Chilaw Plantations Limited. Although the contractor had removed a sand stock ranging from 36,531 to 45,561 cubic meters, the royalty had been paid only for 1,594 cubic meters, amounting to Rs. 686,464. The Auditor General pointed out this matter, based on the report of the GSMB Technical Services (Pvt) Ltd dated 19 December 2024 estimating the sand removed. Accordingly, it was pointed out by the Committee that a royalty of over Rs. 12 million had been lost.
Discussions were also held on the calculation of royalty for stone quarries based on the explosives issued for the quarry. It was pointed out by the Committee that due to the use of explosives in an illegal manner, the actual volume of rock removed could not be calculated, resulting in a large loss of revenue to the government. Even though massive rock excavation takes place from stone quarries in different parts of the country, in reality, only a small revenue is received by the government, as pointed out by the Members of the Committee with examples.
Accordingly, the Committee recommended to the Secretary of the Ministry of Environment and the officials of the Geological Survey & Mines Bureau that a stronger monitoring mechanism should be established beyond the issuance of mining licenses, and that urgent steps should be taken to amend the Act to overcome existing legal shortcomings.
Attention was also drawn to serious shortcomings in the mechanism of issuing Exploration License (EL) prior to mining. It was revealed that under the prevailing system, many institutions obtaining exploration licenses sell them to other persons at higher prices, without actually carrying out exploration or mining activities. Although data is submitted to the Bureau after exploration, there is a serious issue regarding the accuracy of such data. Since 1993, the Bureau has issued more than 450 exploration licenses, but currently only 43 remain active, as revealed.
Accordingly, it was pointed out that the current system does not ensure a proper scientific and transparent exploration process, and that the Bureau does not have a mechanism to properly monitor the activities after the issuance of exploration licenses. Therefore, instead of ad-hoc solutions, a new mechanism and a strategic plan important for sustainable national development should be prepared, as highlighted.
The Committee also drew attention to the fact that although 9 licenses had been issued to 5 companies registered in Sri Lanka for mineral sand exploration in Mannar Island, those companies had not carried out exploration for 10–13 years. It was revealed that all 5 companies registered in Sri Lanka are managed by one company registered in Australia. As a result, the license holders have reserved these areas for long periods without exploration, limiting opportunities for other local and foreign investors who wish to explore minerals. Due to this, an extent of about 195 square kilometers has been blocked, which was pointed out by the Committee Chairman as an obstacle to the country’s development.
According to the Mines and Minerals Act, mining lands should be rehabilitated after mining. However, attention was drawn to the fact that by 2025 August 11, the Bureau had not implemented rehabilitation works for 3,150 licenses. It was discussed that although a bond (deposit) is obtained at the time of license issuance for rehabilitation, miners tend to consider abandoning the deposit more profitable than rehabilitating the land. However, the officials stated that legal action had been taken against license holders who failed to carry out rehabilitation.
Extended attention was also drawn to the issue of Quartz exports. It was discussed that Clear Quartz is being illegally exported along with Quartz, and that certain insiders within the Bureau appear to be supporting this smuggling. The Committee pointed out that a mechanism should be established to hand over the export of Clear Quartz to the National Gem and Jewellery Authority and to allow only other Quartz to be legally exported.
The Committee pointed out that throughout its past history, the Geological Survey & Mines Bureau has not operated with proper planning according to the legal principles of the Act, and that investigations clearly show this. It was further emphasized that this institution, which can perform as a massive national enterprise earning far greater revenue, should act with proper vision and systematic planning. The Committee Chairman also stated that COPE would continuously monitor the progress of the implementation of the recommendations given.
Members of Parliament Dayasiri Jayasekara, Attorney-at-Law, Mujibur Rahman, Chaminda Wijesiri, Dilith Jayaweera, Lieutenant Commander (Rtd.) Prageeth Madhuranga, Jagath Manuwarna, Ruwan Mapalagama, Dharmapriya Wijesinghe, Asitha Niroshana Egoda Vithana and Chandima Hettiaratchi, together with Secretary of the Ministry of Environment Rohitha Uduwawala, Chairman of the Geological Survey & Mines Bureau Saman Jayasinghe and a group of officials, also participated in this Committee meeting.
2025-12-16
The estimated loss incurred by the Ceylon Electricity Board is approximately Rs.20 billion Officials of the Ministry of Transport and Highways and Urban Development stated that, due to the destruction of roads and bridges caused by the disaster situation that occurred across the island, it has been preliminarily estimated that the Road Development Authority has incurred a loss of approximately Rs. 75 billion.Furthermore, the officials stated that when taking into account the additional rehabilitation work required to fully restore the destroyed roads and bridges, it has been estimated that a sum of approximately Rs. 190 billion will be required for this purpose.This was disclosed at the meeting of the Sectoral Oversight Committee on Infrastructure and Strategic Development, convened to discuss and analyses the nature of the disaster that the country has been struck with and the measures to be taken to assess the resulting social, economic, and environmental damage. The meeting was held recently (Dec. 11) at Parliament under the chairmanship of Hon. Member of Parliament S.M. Marikkar.During the meeting, officials of the Ministry of Transport and Highways and Urban Development pointed out that, as a result of the disaster situation, 316 roads and 40 bridges under the purview of the Road Development Authority have been damaged. However, the Chair of the Committee pointed out that assessments regarding damage to railway lines and regional roads across the island have not yet been carried out. The Chair further emphasized the importance of the Ministry taking the lead in formulating a mechanism to provide financial allocations for the rehabilitation of regional roads.Accordingly, the officials informed the Committee that it is currently expected to obtain a loan of Rs. 2 billion from the World Bank, and that funds required to carry out these rehabilitation works are also expected to be obtained from several other institutions.Meanwhile, officials of the Ceylon Electricity Board informed the Committee that the Board has incurred an estimated loss of approximately Rs. 20 billion due to the disaster situation. They further stated that discussions are underway to obtain a loan from the World Bank for this purpose. Commenting on this, the Chair of the Committee advised the officials of the Ceylon Electricity Board to attempt to obtain these funds as a grant rather than as a loan. He emphasized the importance of securing the funds as a grant, as obtaining them as a loan could result in an increase in electricity bills for consumers.In addition, officials informed the Committee that Lanka Electricity Company (Pvt) Ltd. has incurred an estimated loss of approximately Rs. 252 million due to the disaster situation. Officials representing Lanka Electricity Company (Pvt) Ltd. further stated that since the expenditure required for the repair work can be covered through the budgetary allocations already provided to them, no additional loan or grant is required.Officials also informed the Committee that the National Water Supply and Drainage Board has incurred an estimated loss of approximately Rs. 5.6 billion due to the disaster situation. The Secretary of the Ministry of Housing, Construction and Water Supply stated to the Committee that 156 water supply schemes of the National Water Supply and Drainage Board were damaged, and that all of them have now been restored after carrying out maintenance work. The Secretary further informed the Committee that arrangements are currently underway to obtain the funds required for rehabilitation as a grant from the Asian Development Bank.Accordingly, emphasizing the importance of preparing plans to face potential future disasters, the Chairman of the Committee stated that the Sectoral Oversight Committee on Infrastructure and Strategic Development is prepared to provide the necessary support to the relevant ministries and officials for this purpose.Members of Parliament Nalin Bandara Jayamaha, Ajith P. Perera, and Asitha Niroshana Egoda Vithana, along with a group of officials, were present at this occasion.
2025-12-09
Annual reports and financial reports of several universities and higher education institutions coming under the Ministry of Education, Higher Education and Vocational Education were considered at the Sectoral Oversight Committee on Education, Manpower and Human Capital.This was taken into consideration when the Committee met recently (Nov. 26) at Parliament under the Chairmanship of Hon. Member of Parliament Hesha Withanage.Accordingly, at the meeting of the Committee held, the Annual Reports of the Sri Lanka Maritime University for the years 2022 and 2023, the Annual Reports of the Sri Lanka Institute of Advanced Technological Education for the years 2022 and 2023, the Annual Reports of The Open University of Sri Lanka for the years 2022 and 2023, the Annual Reports of the University of the Visual and Performing Arts for the years 2022 and 2023, and the Annual Report and Accounts Report of the Postgraduate Institute of English of The Open University of Sri Lanka for the year 2023 were considered and approved.Further, matters relating to the recruitment of Development Officers serving in schools to the Teacher Service, as well as issues concerning the recruitment of Principals, were also discussed at the Committee.Hon. Leader of the Opposition Sajith Premadasa, Hon. Members of Parliament (Dr.) V.S. Radhakrishnan, Rohini Kumari Wijerathna, Aboobucker Athambawa, Thurairasa Ravikaran, and Sunil Rajapaksha, along with a group of officials, were among those who participated on this occasion.
2025-12-09
A special Committee meeting to consider Regulations under Section 71 of the Value Added Tax Act, No. 14 of 2002The Committee on Public Finance (COPF) which met on 03 December 2025, considered several important matters, including the regulations issued under the National Medicines Regulatory Authority Act, No. 05 of 2015, published in Gazette Extraordinary No. 2452/39 of 04 September 2025, the Annual Work Programme for 2026 of the National Audit Office, and the Final Report prepared under Standing Order 121(5)(ii) on the Appropriation Bill for the financial year 2026. The meeting was held under the chairmanship of Dr. Harsha de Silva, Hon. Member of Parliament.During the discussion on the NMRA regulations, the Committee recommended enhancing system transparency and visibility in the medicine registration process. Accordingly, the Regulations under the National Medicines Regulatory Authority Act, No. 05 of 2015 published in the Gazette Extraordinary No. 2452/39 was approved by the Committee following consideration.The Committee also considered the 2026 Annual Work Programme of the National Audit Office. According to the Programme, 3,508 audits will be carried out in 2026. These include 3,484 Financial Audits, 11 Performance Audits, 1 Environmental Audit, 12 Special AuditsAs presented, audits of Samurdhi Community-Based Banks and Samurdhi Community-Based Bank Societies have been newly assigned to the Auditor General from 2026 onwards. The Committee raised concerns regarding the staff capacity required to carry out the Samurdhi audits. The acting Auditor General stated that an additional 10%–15% staff would be required beyond the current cadre. He further informed the Committee that pilot audits are being conducted through regional offices and will continue until the end of February, after which the actual capacity requirements whether through recruitment or outsourcing will be determined.It was further noted that the annual work Programme will be forwarded to Parliament, as provided for in the Audit Act, which requires that any review or recommendation be submitted to the Speaker and the relevant authorities. Followed by extensive discussion, the Committee agreed to make an observation to the Speaker that it supports the possible outsourcing of the additional Samurdhi-related audit work, subject to the Auditor General’s evaluation. Accordingly, the Committee directed the National Audit Office to do a pilot project and report back to the Committee by the end of February 2026.In addition, COPF deliberated on the Final Report prepared under Standing Order 121(5)(ii) relating to the Appropriation Bill for the financial year 2026. The report reflected the Committee’s observations and recommendations following its review of ministerial budget proposals and financial allocations for the upcoming year.In extension, the Committee on Public Finance, under the Chairmanship of Dr. Harsha de Silva, Hon. Member of Parliament also conducted a special meeting today, 05th December 2025 to consider the Resolution for the provision of allocations for restoration of the disrupted lives of the people affected by the emergency disaster situation through a supplementary estimate. This resolves that, an additional sum not exceeding Rupees Fifty Thousand Million (Rs. 50,000,000,000) shall be payable out of the Consolidated Fund of the Democratic Socialist Republic of Sri Lanka or any other fund or finances possessed by the Government or any loan obtained by the Government at the discretion of the Democratic Socialist Republic of Sri Lanka, for the services of the financial year commencing on January 01, 2025 and ending on December 31, 2025 and the manner that, the said sum may be expended.Moreover, Regulations under Section 71 of the Value Added Tax Act, No. 14 of 2002 published in the Gazette Extraordinary No. 2460/44 which was also approved following consideration. Hon. Members of Parliament who are Members of the Committee on Public Finance were present at these Committee meetings held.
2025-12-05
A joint programme by the Ministry of Finance and the banks to provide loan facilities for new entrepreneurs is planned to be launched in January next year, Hon. Minister of Industry and Entrepreneurship Development, Sunil Handunneththi, stated.He expressed these views during the meeting of the Ministerial Consultative Committee on Industry and Entrepreneurship Development, held in Parliament on 25.11.2025, under his chairmanship.Commenting further, the hon. minister pointed that Rs. 80,000 million has been allocated by the Budget for this year to provide loans for new entrepreneurs, and that this joint programme will be implemented to distribute those funds effectively among new entrepreneurs. He further stated that a programme is expected to be held in January next year to inform Hon. Members of Parliament about the sectors for which these loan facilities will be provided, as well as the overall process relating to the provision of these loans.The Hon. Minister also stated that a National Database for Industrialists has been initiated for the purpose of collecting information relating to all industrialists in the country under a single system. Commenting on this, an official of the Ministry of Industry and Entrepreneurship Development said that the necessary promotional activities will be carried out to inform all entrepreneurs about registering in this database, and that registration will enable them to conveniently access the required services.Further, views were expressed during the committee meeting regarding the provision of collateral-free loan facilities to craftsmen registered with the National Crafts Council.The officials of the National Paper Company Limited also presented details to the committee regarding the current progress of the mill. They stated that after rectifying the shortcomings that had existed, the mill has been able to increase its monthly production capacity from the previous 150–180 metric tons to 400 metric tons.In addition, the Hon. Minister of Industry and Entrepreneurship Development, Sunil Handunneththi, presented information regarding the National Advisory Framework that has been developed for issuing excavation permits in the country. He further stated that, with the objective of introducing a more systematic process in place of the currently disorganized issuance of excavation permits, this advisory framework will be introduced in January next year.The meeting of the committee was attended by the Hon. Deputy Chairperson of Committees, (Mrs.) Hemali Weerasekara, Hon. Ministers, Hon. Deputy Ministers, Hon. Members of Parliament, and officials of the Ministry of Industry and Entrepreneurship Development.
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