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2025-10-14

News Categories : Committee News 

COPA instructs Colombo Municipal Council to establish a formal mechanism for the collection of assessment tax in arrears in the city of Colombo

The Committee on Public Accounts (COPA) has instructed the Colombo Municipal Council (CMC) to establish a formal mechanism for collecting arrears of assessment tax in the city of Colombo.
Officials of the Colombo Municipal Council informed the COPA that under the KOICA project, a data system is expected to be developed to support several functions, including maintaining assessment tax revenue.

Accordingly, COPA instructed the Colombo Municipal Council to hold discussions with the KOICA project and to inform the committee about the progress made in utilizing the new data system being developed to systematically collect assessment tax revenue and to improve the efficiency of tax collection.

These matters were discussed when the Committee on Public Accounts, chaired by Hon. Kabir Hashim, Member of Parliament, convened on October 8, 2025, to examine the Auditor General’s Reports for the years 2022 and 2023 and the current performance of the Colombo Municipal Council.

During the meeting, COPA inquired from the relevant officials regarding the failure to implement a recommendation made by the Auditor General’s Department to complete, within six months, the collection of arrears in the Fort area of Colombo where the properties had already been identified.

In response, the officials stated that out of the total arrears amounting to Rs. 610.96 million, a sum of Rs. 148 million had already been recovered, and that measures were being taken to recover the remaining amount. However, the COPA Chair instructed the officials to submit a comprehensive report on the plan to systematically recover the outstanding revenue.

Furthermore, the Chair instructed the Colombo Municipal Council to inform the committee regarding the progress of developing a formal data system for collecting other sources of revenue received by the Council and the actions taken regarding properties that could not yet be identified.

Meanwhile, the committee also discussed the progress made in implementing the earlier recommendation by COPA regarding the unauthorized occupation of the Elie House land in Modara. COPA noted that following the planned discussion with the Governor regarding the appeal submitted by those occupying the said property, the committee should be informed about the progress in transferring the property back to the Colombo Municipal Council.

However, the officials from the National Audit Office informed the committee that although the occupants had agreed post discussions with the Governor to pay the arrears and fines due for unauthorized occupation, the necessary actions had not yet been taken.

It was also disclosed that although the total extent of the land was 140 perches, only 40 perches had been leased since 1992, and that the lease agreement had expired in 2022. Officials from the National Audit Office further informed the committee of these facts.

Officials from the Colombo Municipal Council explained that as a charitable organization is currently being operated on the said premises, they were in the process of recovering the arrears and fines through mutual agreement, and that steps were being taken to reclaim the remaining 50 perches of land that were being used without a lease agreement.

However, highlighting that such actions could give rise to various complications, the COPA Chair emphasized the importance of carrying out all procedures in accordance with financial and state administrative regulations. Accordingly, the officials were instructed to submit a report detailing the amount of fines due for the remaining portion of the land being used, and they informed the committee that this report could be submitted by the end of December.

Meanwhile, the committee also held an extensive discussion regarding the unauthorized construction of a funeral parlor on the official residence and land of the Borella Cemetery Supervisor, which had been misused. Although COPA had earlier recommended a full investigation and the submission of a report to the committee, the failure to submit the said report was met with the committee’s dissatisfaction.

However, officials informed the committee that the necessary disciplinary and legal actions were being taken, and the relevant procedures were ongoing.

The meeting was attended by committee members including Hon. Deputy Ministers Aravinda Senarath, Dinindu Saman Hennayake, Major General Aruna Jayasekara (Retd), along with Members of Parliament (Dr.) M.L.A.M. Hizbullah, Rohitha Abeygunawardena, J.C. Alawathuwala, Chamara Sampath Dasanayake, (Dr.) Kavinda Heshan Jayawardhana, Ruwanthilaka Jayakody, Thushari Jayasinghe Attorney-at-Law, Sunil Rathnasiri, and Chandana Sooriyaarachchi, as well as several state officials.



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