2025-10-22
During a meeting of the Committee on Public Finance (COPF) held on October 21st in Parliament, chaired by Hon. Dr. Harsha de Silva, Member of Parliament, the committee considered and approved an Order under the Special Commodity Levy Act No. 48 of 2007 (Published in the Extraordinary Gazette No. 2451/10 pertaining to the increase of the Special Commodity Levy (SCL) on imported big onions and potatoes to ensure a reasonable price for local farmers for the 2025 Yala season.
It was noted that although the SCL was slated for abolition, the Government continues to use it to protect local producers despite vulnerabilities to corruption. Accordingly, action has been taken to increase the SCL on one kilogram of imported Big Onions by Rs. 10 (from Rs. 40 to Rs. 50) and on one kilogram of imported potatoes by Rs. 20 (from Rs. 60 to Rs. 80), with effect from August 26, 2025.
Officials present stated that Sri Lanka's tariff structure must be sustainable, simple, transparent, and predictable for traders. In line with this, the committee issued broader directives, recommending that the Ministry of Trade and Ministry of Finance integrate existing laws with the National Tariff Policy for comprehensive implementation. The committee also directed the ministries to conduct a full assessment of the impact of proposed tariff regime changes, including the move to a strict four-band import duty and the phasing out of Para tariffs (SCL and CESS) from 2027 to 2030, with an update requested by the end of March 2026.
To reduce dependency on seasonal tariffs, the committee recommended that the Department of Agriculture create a project to expand the use of high-yield technique kits for big onion cultivation, aiming to cover the entire cultivation area within five years. I was recommended that this should be part of a wider strategy that includes humidity and temperature-controlled warehouses such as “Prabashwara”, buy-back agreements, and futures contracts to reduce post-harvest losses and stabilize prices for farmers.
Moreover, the Committee also reviewed and approved Rules under Excise Ordinance (Chapter 52) related to the payment of duty on liquor production. The new rules will stop the production of non-payers after 30 days and halt all distribution and sales after 90 days. This strengthens enforcement, as the current 3% interest penalty on unpaid fees has been an insufficient deterrent due to the lack of stronger recovery mechanisms in the Excise Act.
The meeting was attended by Hon. Deputy Ministers Chathuranga Abeysinghe, Nishantha Jayaweera, Arkam Ilyas, Members of Parliament Rauff Hakeem, Attorney at Law, Harshana Rajakaruna, Nimal Palihena, Chithral Fernando, Attorney at Law, Wijesiri Basnayake, Thilina Samarakoon, Champika Hettiarachchi, and Lakmali Hemachandra, Attorney at Law. Officials including the Secretary to the Ministry of Trade, Commerce, Food Security and Co-operative Development, Mr. K.A. Vimalenthirarajah, and representatives from the Department of Trade and Investment Policy and the Excise Department were also present.
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.
2026-11-12
The Sectoral Oversight Committee on Education, Manpower and Human Capital discussed the operations of state institutions under the education, higher education and vocational education sectors, the progress of development projects, existing challenges and future plans. The Committee met recently (Nov. 06) at Parliament under the chairmanship of Hon. Member of Parliament, Attorney-at-Law Hesha Withanage Ankubura Arachchi. During the meeting, the financial and physical progress of the budgetary allocations made to the Ministry of Education, Higher Education and Vocational Education for 2026 was reviewed.Discussions focused on the development of school buildings and infrastructure, education reforms, the printing and distribution of textbooks, student welfare programmes and progress in teacher education. Delays in procurement and the shortage of technical officers encountered in implementing the relevant development projects were also discussed.Officials also briefed the Committee on the performance of the Department of Examinations of Sri Lanka and the Department of Educational Publications, including the conduct of examinations and plans for the production and distribution of textbooks. The importance of providing necessary educational facilities for children with special needs was also emphasized.Furthermore, discussions were held on the distribution of school uniforms and the payment of student allowances under school welfare programmes. Officials also informed the Committee about the introduction of a new computerized system to expedite the payment of student allowances and the arrangements being made to transfer the funds directly to students' bank accounts.The operations and development plans of institutions in the higher education and vocational training sectors were also reviewed. These included universities, the Tertiary and Vocational Education Commission of Sri Lanka, the National Apprentice and Industrial Training Authority (NAITA), and the Ceylon-German Technical Training Institute (CGTTI).During the meeting, the Committee Chairman instructed all relevant institutions to submit comprehensive reports on their financial and physical progress to the Committee. He also emphasized the importance of submitting these reports within the stipulated timeframes.The Committee further decided to summon the relevant institutions not only at the end of each year but also midway through the year to review the progress of development activities.In addition, the financial and physical progress of the budgetary allocations made to the Ministry of Youth Affairs and Sports and the institutions functioning under it for 2026 was also reviewed.Members of the Committee, Secretaries to the Ministries of Education, Higher Education and Vocational Education, and Youth Affairs and Sports, along with a number of other officials, attended the meeting.
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