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.
2026-07-21
Discussions focus on strengthening disability-inclusive legislation and policy implementationThe Parliamentary Caucus for Persons with Disabilities held discussions with the United Nations Resident Coordinator and representatives of several United Nations agencies at Parliament with a view to strengthening cooperation in promoting the rights of persons with disabilities and advancing disability-inclusive legislation and policies in Sri Lanka.The meeting was held in Parliament under the Chairmanship of the Chair of the Parliamentary Caucus for Persons with Disabilities, Hon. Member of Parliament Sugath Wasantha de Silva recently.Addressing the meeting, the United Nations Resident Coordinator, Mr. Marc-André Franche, commended the Parliament for establishing the Parliamentary Caucus for Persons with Disabilities and emphasized the importance of treating disability inclusion as a national priority across all sectors. He reaffirmed the commitment of the United Nations to provide technical expertise and institutional support in areas including legislative reforms, accessibility, inclusive education, employment, community-based rehabilitation and strengthening national coordination.The UNICEF Representative, Ms. Begoña Arellano, highlighted the need to safeguard the rights of children with disabilities, particularly in relation to health, nutrition and education, while emphasizing the important oversight role of Parliament in ensuring the effective implementation of disability-inclusive policies.Representatives of UNFPA, UNDP, ILO and UN Volunteers also briefed the Caucus on ongoing initiatives relating to youth, education, disability data collection, employment opportunities and social inclusion.During the meeting, the Minister of Rural Development, Social Security and Community Empowerment, Hon. (Dr.) Upali Pannilage, informed the Caucus that the proposed Rights of Persons with Disabilities Bill and the Sign Language Bill are currently with the Attorney General's Department and are expected to be presented to Parliament on September 2026. He further stated that measures are underway to improve accessibility in public institutions, expand employment opportunities, introduce educational grants for university students with disabilities and establish ten day-care centres for children with disabilities within this year.The Caucus also discussed future initiatives, including the preparation of disability-inclusive budget proposals by Government Ministries, the finalisation of a national disability database and the conduct of a sensitisation programme for journalists to promote a rights-based approach to disability related reporting.The meeting concluded with the Chair, Hon. Sugath Wasantha de Silva, reiterating the Caucus's core theme, "An unhindered social life," and calling for continued, unified collaboration to make an inclusive society a reality.The meeting was attended by the Deputy Co-Chairs of the Caucus, Hon. Gayantha Karunathilleka, and Hon. (Dr.) Pathmanathan Sathiyalingam, the Minister of Rural Development, Social Security and Community Empowerment, Hon. (Dr.) Upali Pannilage, Members of Parliament and representatives of the United Nations Resident Coordinator's Office, UNFPA, UNICEF, UNDP, ILO and UN Volunteers.
2026-07-20
A technical report prepared by the Election Commission on enhancing the representation of women and youth at Provincial Council Elections was presented to the Parliamentary Select Committee to look into and report to Parliament on the matter of selecting the Electoral System under which the Provincial Council Elections should be held and submit its proposals and recommendations in that regard.The Select Committee met recently at Parliament under the chairmanship of Hon. Minister Vijitha Herath. Hon. Minister Saroja Savithri Paulraj, Chairperson of the Women Parliamentarians' Caucus of Sri Lanka, together with the Members of the Caucus, also participated in the meeting.The report presented by the Election Commission outlined a proposed technical framework for increasing the representation of women and youth while retaining the existing Proportional Representation electoral system and preserving the current method of determining election results.The Committee held extensive discussions on the legal and practical issues that may arise in ensuring the representation of women and youth under the proposed electoral system. It was decided to examine these matters further and continue the discussion at a future meeting.During the discussion, the Women Parliamentarians' Caucus unanimously emphasized that women's representation at Provincial Council and Local Government Elections should be increased to at least 33%. The Caucus further stressed that this position should be duly taken into consideration when formulating the proposed electoral system.The meeting was attended by Hon. Deputy Ministers Arun Hemachandra and Attorney-at-Law Sunil Watagala; Hon. Members of Parliament R. M. Ranjith Madduma Bandara, Mano Ganesan, Shanakiyan Rajaputhiran Rasamanickam, Dharmapriya Wijesinghe, Samanmali Gunasinghe, and Lakshman Nipuna Arachchi and the Chairman of the Election Commission, R. M. A. L. Ratnayake, together with the other Members of the Election Commission.
2026-07-20
The Sectoral Oversight Committee on Environment, Agriculture and Resource Sustainability discussed the paddy purchasing process and the measures taken by the Government to ensure an adequate supply of rice to meet the country's requirement.The matter was taken up when the Committee met recently at Parliament under the Chairmanship of Hon. Member of Parliament Hector Appuhamy. During the meeting, the importance of establishing a comprehensive and reliable agricultural data system to minimize the imbalance between agricultural production and market demand was emphasized. The Committee observed that the introduction of an integrated data system capable of providing accurate information on cultivated crop varieties, cultivation extents and market demand would help minimize excess production and price-related issues while ensuring farmers receive a fair price for their produce.The Committee also discussed the production and consumption patterns of rice varieties such as Samba, Keeri Samba, Nadu and Red Rice, and stressed the importance of planning production in line with market demand.Attention was also drawn to the need to strengthen data sharing and coordination between the Ministry of Agriculture, Livestock, Land and Irrigation and other relevant institutions.Meanwhile, at the request of Hon. Member of Parliament Ajith P. Perera, the Committee also considered a proposal referred by the Chair of the Sectoral Oversight Committee on Governance, Justice and Civil Protection regarding amendments to the Survey Act, No. 17 of 2002.The meeting was attended by Hon. Members of Parliament Upul Kithsiri, Kitnan Selvaraj, and Ajith P. Perera. Secretaries to the Ministry of Trade, Commerce, Food Security and Cooperative Development and the Ministry of Agriculture, Livestock, Land and Irrigation, together with a group of officials representing the relevant Ministries, were also present.
2026-07-16
The Ministerial Consultative Committee on Education, Higher Education and Vocational Education recently discussed and approved the final report of the Committee appointed to make recommendations for the establishment of an Education Council in Sri Lanka which had been endorsed by the Sub-Committee on the Establishment of an Education Council.The approval was granted at the meeting of the Ministerial Consultative Committee on Education, Higher Education and Vocational Education held in Parliament under the chairmanship of Hon. Prime Minister Dr. Harini Amarasuriya.During the meeting, the Chair of the Sub-Committee, Hon. Deputy Minister Mahinda Jayasinghe, presented the report to the Committee. The report incorporates the observations and recommendations made following a comprehensive study conducted by the panel of experts appointed by the Ministry to formulate recommendations for the establishment of an Education Council in Sri Lanka.Thereafter, the Committee sought the views and proposals of its members on the contents of the report. Following an extensive discussion, the Ministerial Consultative Committee approved the report.The meeting was attended by Ministers, Deputy Ministers, Members of Parliament, and officials of the Ministry of Education, Higher Education and Vocational Education.
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