2026-02-24
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.
2026-11-13
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.
2026-11-12
The Sectoral Oversight Committee on Science, Technology and Digital Transformation focused on several key issues, including the introduction of regulations and standards for electric vehicles and their battery technology, improving the performance of state research institutions, and commercializing innovations.At a recent meeting of the Committee, held in Parliament recently under the chairmanship of Hon. Member of Parliament Dr. Janaka Senarathna, the following reports were considered: the Annual Report of the Sri Lanka National Engineering Research and Development Centre (NERDC) for 2022; the Annual Report of the National Science and Technology Commission for 2023; the Annual Report of the Sri Lanka Inventors Commission for 2024; and the Annual Performance Report of the Ministry of Science and Technology for 2025.Discussions focused on the electric vehicle and battery testing facilities available at the Sri Lanka National Engineering Research and Development Centre (NERDC). It was revealed that the institution has the capacity to test a range of battery parameters, including capacity, durability and lifespan.However, attention was also drawn to issues arising from the absence of mandatory regulations and standards governing electric vehicles, batteries, controllers and charging stations imported into the country. Accordingly, officials stressed to the Committee the need to establish relevant standards and make testing and certification compulsory.The Committee also discussed the technology involved in converting fuel vehicles into electric vehicles, the need for training programmes, and the development of standards and regulatory mechanisms to ensure the safety of such vehicles.Attention was further drawn to the shortage of human resources in research and development institutions and the need for appropriate salary and allowance schemes to attract and retain qualified engineers and researchers. Officials also highlighted the importance of improving the performance of state research institutions, addressing existing shortcomings, effectively managing research outcomes, and consolidating institutions carrying out similar functions.The Committee also discussed the Sri Lanka Inventors Commission's electric fencing projects aimed at mitigating the threat posed by wild elephants, the establishment of incubation centres affiliated with universities, and plans to promote innovation through digital platforms. Officials informed the Committee that three of the four electric fencing projects implemented to date were operating successfully.Furthermore, discussions were held on a proposal to amend the Intellectual Property Act to introduce a ‘Petty Patent system’, with the aim of protecting the intellectual property rights of inventors and expediting the commercialization of inventions.Hon. Members of Parliament Lasith Bashana Gamage, Chathura Galappaththi, Thanura Dissanayake, Attorney-at-Law Hasara Liyanage and Chandima Hettiarachchi, along with a number of officials from the Ministry of Science and Technology, attended the meeting.
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