2026-02-24
News Categories : Committee News
The 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 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
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.
2026-02-20
The Parliamentary Caucus for Youth discussed its proposed programmes for 2026 at a recent meeting held in Parliament on the February 17th.The meeting was chaired by the Hon. Deputy Minister Eranga Gunasekara, Chair of the Caucus.During the meeting, the Chair emphasized that the activities of the Caucus should be structured to develop policy and conceptual initiatives relating to the country’s youth and to ensure their effective implementation through state sector mechanisms.The proposed National Youth Policy, which is currently being drafted by the Ministry of Youth Affairs and Sports, was also discussed. It was decided to hold further discussions with the Ministry regarding the proposed policy framework.Matters including proposing reforms to youth-related legislation, formulating data-driven programmes, securing support from government and non-governmental organizations for the Caucus, and collaborating with international youth forums were also taken up for discussion.Deputy Co-Chairs of the Caucus Hon. Members of Parliament Lasith Bhashana Gamage and Thanura Dissanayake along with several other member Parliamentarians were present at the meeting.
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