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.
2026-06-23
The Department of the Public Trustee was summoned before the Committee on Public Accounts (COPA) to examine the Auditor General's triennial report for the years 2021–2023, matters raised in the Auditor General’s Report for 2024 and the Department’s current performance. The discussion took place when COPA met recently in Parliament under the chairmanship of Hon. Member of Parliament Kabir Hashim.During the meeting, the Chairman inquired about the implementation of a recommendation made at the Committee’s meeting in May 2024. The recommendation requested a report containing details of the various avenues through which the Department receives assets, the dates on which those assets were received, the parties that transferred them, and the conditions attached to such transfers.Officials informed the Committee that the relevant report had been submitted. The Committee further recommended that a report on the number of trusts and properties currently held by the Department of the Public Trustee be provided.The Committee also questioned officials regarding the tender process to lease 113 acres of land belonging to the Harry Hapugoda property in Suduvelipotha, Baddegama, Galle. Officials stated that a bid exceeding the assessed value of the property had been received. It was also revealed that portions of the land are being occupied without authorization by various parties.Attention was further drawn to the maintenance of the Richmond Castle building. Officials informed the Committee that modernization and renovation work is expected to commence in July. Committee members also observed that although the coconut harvest from the estate is satisfactory, the property is not being maintained adequately.The meeting was attended by committee member and Hon. Deputy Minister of Vocational Education Nalin Hewage, along with Hon. Members of Parliament and committee members Chanaka Madugoda, J.C. Alawathuwala, Oshani Umanga, Sagarika Athauda (Attorney-at-Law), T.K. Jayasundara, Chandana Suriyaarachchi, Ajantha Gammeddage, Lal Premanath, Ruwanthilaka Jayakody and Sunil Ratnasiri.
2026-06-23
The Ministerial Consultative Committee on Education, Higher Education, and Vocational Education met recently in Parliament under the chairmanship of the Hon. Prime Minister and Minister of Education, Higher Education, and Vocational Education, Dr. Harini Amarasuriya. During the meeting, Hon. Members of Parliament raised a range of current issues affecting the education sector.The Committee discussed several matters, including the need to introduce a standardized plan and model for primary school construction, administrative issues in assisted schools, teacher transfer-related concerns, the progress of school construction projects at the provincial level, challenges within the vocational education sector and future development plans.Following discussions with relevant officials, the Hon. Prime Minister instructed them to take immediate action to address the issues raised and to implement the necessary measures without delay.The Committee also reviewed the progress of the subcommittees established under the Ministerial Consultative Committee.The meeting was attended by the Hon. Deputy Minister of Education and Higher Education, Dr. Madhura Seneviratne, the Hon. Deputy Minister of Vocational Education, Nalin Hewage, a group of Hon. Members of Parliament and officials including the Secretary to the Ministry of Education, Higher Education, and Vocational Education, Mr. Nalaka Kaluwewa.
2026-06-19
The Ministerial Consultative Committee on Environment focused its attention on the issue of water pollution in the Kelani River when it met in Parliament recently (10th June) under the chairmanship of the Hon. Minister of Environment, Dr. Dammika Patabendi.During the meeting, the Committee was briefed on the progress of discussions being held with companies that have expressed willingness to invest in a project aimed at cleaning the waters of the Kelani River.The Committee also discussed a number of proposals and other issues raised by Hon. Members of Parliament.The meeting was attended by Hon. Members of Parliament and officials.
2026-06-18
A meeting of the Women Parliamentarians Caucus was held in Parliament recently to discuss the importance of incorporating Gender-Responsive Budgeting into Sri Lanka’s national budget formulation process and to examine the challenges associated with its implementation.The meeting was chaired by the Chairperson of the Caucus and Hon. Minister of Women and Child Affairs, Saroja Savithri Paulraj. Hon. Prime Minister Dr. Harini Amarasuriya also participated in the discussion.A key concern raised during the discussion was the lack of adequate data and indicators to accurately assess and measure women’s economic contributions within the budgetary process. Drawing on examples of approaches adopted in India and other countries, members of the Caucus underscored the need to identify and address existing systemic and technical gaps in Sri Lanka’s budgeting framework.The Caucus also emphasized the importance of disaggregating data by gender in project reporting and strengthening digital data management systems to support such efforts. It was further noted that identifying relevant gender-related considerations at the initial stages of project design and implementation at the ministerial level would facilitate more effective project analysis, monitoring, and evaluation of outcomes.The need to move away from existing traditional and time-consuming methods towards formal online systems and data-driven analytical tools was also emphasized.The current progress and challenges in integrating Gender-Responsive Budgeting into Sri Lanka’s public financial policy were discussed in detail during the meeting.It was also emphasized that such budgeting should not be limited to nominal percentages in documents, but that the need to establish a formal framework and data system to ensure it has a real and practical impact was also highlighted.The Hon.Deputy Chairperson of Committees Hemalee Weerasekera, Hon. Deputy Minister Dr. Kaushalya Ariyarathne, Co-Vice Chairpersons of the Caucus, Hon. Members of Parliament Chamindrani Kiriella, Attorney at Law and Samanmalee Gunasinghe, Hon. Members of Parliament Thushari Jayasinghe, Attorney at Law, Krishnan Kaleichelvi, Sagarika Athauda ,Attorney at Law, Nilanthi Kottahachchi, Attorney at Law, Ambika Samivel and Lakmali Hemachandra, Attorney at Law, along with a group of officials from the Ministry of Finance, Planning and Economic Development, also participated in the event.
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