2025-12-09
News Categories : Committee News
The 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 Audits
As 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.
2026-02-24
The Committee on High Posts of Parliament has approved the nominations of two Heads of Mission and a Ministry Secretary.The approvals were granted when the Committee met in Parliament recently (Feb. 20) under the chairmanship of Prime Minister Dr. Harini Amarasuriya.Accordingly, the Committee approved the nomination of Mrs. Nirmala Indumathie Dias Paranavitana as Ambassador of Sri Lanka to the Federal Democratic Republic of Ethiopia and Permanent Representative of Sri Lanka to the African Union.The Committee also approved the nomination of Professor Mohamed Ibrahim Fazeeha Azmi as the new Ambassador of Sri Lanka to the Islamic Republic of Iran.In addition, approval was granted for the appointment of Mr. K.A. Vimalenthirarajah as the Secretary to the Ministry of Trade, Commerce, Food Security and Cooperative Development.
2026-02-24
Committee reviews progress of disaster relief provided to the public affected by Cyclone DitwahAttention drawn to disaster management insuranceReview of the current progress of the Public Debt Management Office (PDMO) programmesThe Committee on Public Finance instructed officials to establish a legal framework for the Rs. 200 daily attendance allowance granted by the Government to estate workers.Clarifying matters at length, the Chairman of the Committee emphasized that the Committee has no objection to increasing the wages of estate workers. However, he stated that the legal basis of the mechanism used to make this payment must be discussed. It was pointed out that the payment is currently being made under a Memorandum of Understanding (MoU) entered into with private plantation companies, without being gazetted, and that such an arrangement could be terminated at any time. Officials further noted that the Rs. 200 allowance does not qualify for contributions to the Employees’ Provident Fund (EPF).Officials informed the Committee that the MoU has been entered into with private plantation companies for a period of three years, and that once this period ends, a policy decision would be required if the Government intends to continue the payments.The Committee Chair pointed out that it is inappropriate to utilize public funds to pay salaries in private institutions without proper financial discipline. Officials stated that the payment is being made as it has been approved by Parliament under the 2026 Budget.According to the approved budget estimates, the allocation for this payment is categorized as a “development subsidy.” As development subsidies are generally intended to support increased production, the Deputy Secretary to the Treasury (DST) suggested that the payment would be more appropriately termed a “production incentive.” However, it was observed that neither the payments already made for January nor the relevant MoUs specify such a requirement in practice. The Committee also questioned whether excluding the Rs. 200 daily allowance from Employees’ Provident Fund (EPF) and Employees’ Trust Fund (ETF) calculations is in compliance with the relevant laws. When asked whether the Attorney General’s advice had been sought regarding the MoUs and related matters, officials stated that such advice had not been obtained.Accordingly, the Committee emphasized that these problematic areas must be rectified and that a proper legal basis should be established for the payment.These matters were discussed when the Committee on Public Finance met in Parliament on 17.02.2026 under the chairmanship of Hon. Member of Parliament Dr. Harsha de Silva, with the participation of Hon. Deputy Ministers Chathuranga Abeysinghe and Nishantha Jayaweera and Hon. Members of Parliament Ravi Karunanayake, Ajith Alahakoon, M.K.M. Aslam, Attorney-at-Law Chitral Fernando, Wijesiri Basnayake, Sunil Rajapaksha, Nimal Palihena, Thilina Samarakoon and Champika Hettiarachchi.The Committee also discussed the progress of disaster relief provided to the public affected by Cyclone Ditwah. Officials stated that approximately Rs. 24.4 billion has so far been released under various relief measures announced for those affected. While the majority of allowances for house cleaning, purchase of household items, and assistance for schoolchildren have already been distributed, officials explained that delays in housing reconstruction and rental assistance payments have occurred due to processes such as damage assessments and land identification. Officials further clarified the verification procedures and accountability mechanisms in place. Committee members highlighted the difficulties faced by those expecting relief payments and stressed that housing assistance in particular should be expedited.Officials of the National Insurance Trust Fund (NITF) also explained their financial position and the reinsurance claims the Fund is required to settle following claims submitted by general insurance companies after Cyclone Ditwah. The estimated reinsurance claims payable by NITF currently amount to approximately Rs. 11 billion. Although NITF has not reinsured its risk exposure with an international reinsurer since 2023, officials stated that it has the capacity to settle the existing claims.It was revealed that the Treasury maintains a significant cash buffer to meet the Government’s daily expenditure requirements, with approximately Rs. 750 billion available by the end of 2025. Due to payments made in December, the cash buffer had declined to this level, leading to increased issuance of Treasury bills from late December to mid-January, which in turn raised interest costs during that period. However, the situation has now stabilized. It was also noted that as the return earned from investing the cash buffer is approximately 2–3 percent lower than the Government’s annual interest cost, maintaining such reserves entails an opportunity cost.Attention was also drawn to the progress of the Public Debt Management Office (PDMO), which has been in operation for 14 months. It was observed that 90 percent of total staff recruitment has been completed. Officials have been provided with specialized local and international training to enhance professional capacity.Although the Central Bank’s auction system is currently used for public debt management activities, steps are being taken to establish an independent system within the PDMO to enable full operational autonomy in the future.The Committee observed that Sri Lanka’s total domestic debt stock amounts to Rs. 31 trillion, comprising Rs. 15.6 trillion in Treasury bills and Rs. 15.4 trillion in Treasury bonds. The average cost of this total debt is reported at 8.73 percent.It was further noted that Sri Lanka’s total external debt servicing requirement for 2026 is projected at USD 2,504 million. Expected foreign inflows for that year amount to USD 2,100 million, including USD 858 million in project loans, USD 150 million in World Bank budget support, USD 380 million from the Asian Development Bank (ADB), and USD 800 million from the International Monetary Fund (IMF).Accordingly, a resource management gap exceeding USD 400 million remains to be addressed for debt servicing in 2026.
2026-02-24
The Parliamentary Sub-Committee on Energy met in Parliament on 18.02.2026 under the Chairmanship of Hon. Member of Parliament Ajith P. Perera. During the meeting, several matters relating to the energy sector were discussed.Accordingly, attention was drawn to Demand Side Management (DSM) of electricity, the current progress of the Kerawalapitiya Power Plant, future sustainability plans of LTL Holdings (Pvt) Ltd and Lanka Electricity Company (Pvt) Ltd, the “Soorya Bala Sangramaya” programme, and the promotion of hydrogen as an energy source.This Sub-Committee convenes as a body appointed by the Sectoral Oversight Committee on Infrastructure and Strategic Development, chaired by Hon. Member of Parliament S. M. Marikkar.
2026-02-20
Reports of Two Sub-Committees Appointed to Address Issues in the Transport Sector SubmittedThe Ministerial Consultative Committee on Transport, Highways and Urban Development approved two Extraordinary Gazette Notifications issued under the Motor Traffic Act (Chapter 203).Accordingly, approval was granted for the Regulations relating to the revision of fees for driving licences published in Extraordinary Gazette No. 2463/04, and for the Regulations relating to the extension of the validity period of driving licences published in Extraordinary Gazette No. 2467/52.The approval was granted when the Ministerial Consultative Committee met in Parliament on 17.02.2026 under the Chairmanship of Hon. Minister Bimal Rathnayake. Hon. Deputy Ministers (Dr.) Prasanna Gunasena and Eranga Gunasekara were also present at the meeting.During the meeting, reports of two Sub-Committees appointed to identify solutions to issues in the transport sector were also presented to the Ministerial Consultative Committee.The report of the Sub-Committee established to ensure the professional security of workers engaged in the informal transport sector was presented by its Chair, Hon. Deputy Minister H.M. Dinindu Saman Hennayake. The recommendations include providing Employees’ Provident Fund (EPF) and Employees’ Trust Fund (ETF) contributions for private bus drivers and conductors, three-wheeler drivers, and those engaged in the transport sector through electronic platforms (app-based workers).The report of the Sub-Committee appointed to formulate business models for the creation of additional services linked to the transport industry was presented by its Chair, Hon. Deputy Minister Chathuranga Abeysinghe.The Chair of the Ministerial Consultative Committee stated that attention would be given to examining the reports submitted by the Sub-Committees and implementing their recommendations.In addition, Hon. Members of Parliament drew the Committee’s attention to shortcomings in transport services and road development projects in various parts of the country.Hon. Deputy Ministers and several Hon. Members of Parliament representing both the Government and the Opposition participated in the Committee meeting.
Handbook of Parliament
The System of Elections in Sri Lanka
How Parliament Works
Business of Parliament
Copyright © The Parliament of Sri Lanka.
All Rights Reserved.
Design & Developed by TekGeeks
