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.
2026-07-22
The draft Terms of Reference (ToR) prepared for the Parliamentary Caucus for Open Parliament Initiative was approved recently at a meeting held in Parliament with the participation of Parliament's development partner organizations.The approval was granted during a meeting of the Caucus chaired by its Co-Chair, Hon. Member of Parliament Shanakkiyan Rajaputhiran Rasamanickam.The draft Terms of Reference was developed based on proposals and recommendations received during a workshop organized by the Caucus in recent months to gather stakeholder input for its preparation.The meeting also agreed that, following the approval of the Terms of Reference, the document would be submitted to Hon. President, and that a discussion would be held with the President on behalf of the Caucus.
2026-07-22
The Sub-Committee appointed by the Committee on Public Enterprises (COPE) focused its attention on the methodology, implementation timeline and coordination arrangements relating to the research study proposed for the restructuring of the Sri Lanka Institute of Advanced Technological Education (SLIATE), when it met recently, at Parliament under the Chairmanship of Hon. Member of Parliament Ruwan Mapalagama.During the meeting, discussions were held on the establishment of the proposed Institutional Operations Committee and a six-member Coordination Team to facilitate the implementation of the research. Attention was also focused on the proposed Mixed-Methods Design, the preparation of questionnaires and the data collection process.The Sub-Committee further reviewed the progress of obtaining public views on the restructuring of SLIATE. Matters relating to obtaining the contribution of the Human Resources and Management Information Systems (MIS) divisions for the research, the preparation of the research implementation timeline through a Gantt Chart, and the stakeholder consultations to be held with representatives of the industry sector were also considered.The programme to obtain the views of stakeholders, including Chambers of Commerce, industry associations and professional bodies, as well as the conduct of field visits to selected SLIATE institutions across the country, was also discussed.The Sub-Committee decided to proceed with the future activities of the research in accordance with the agreed timeline and to present the relevant progress reports at its next meeting.Hon. Member of Parliament Lieutenant Commander (Retired) Prageeth Madhuranga also attended the meeting.
2026-07-22
The Committee on Public Enterprises (COPE) focused its attention on referring the matters revealed in relation to land misuse, financial irregularities and administrative deficiencies at the National Housing Development Authority (NHDA) to the Criminal Investigation Department (CID) and the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) for a formal investigation.The matter was taken up when the Committee met recently at Parliament under the Chairmanship of Hon. Member of Parliament (Dr.) Nishantha Samaraweera to continue its examination of the Auditor General's Reports for the years 2022 and 2023 and to consider the remaining matters relating to the current performance of the National Housing Development Authority.During the meeting, lengthy discussions were held regarding the leasing of valuable NHDA-owned lands located at Maligawatta, Elvitigala Mawatha and Rangirigama, Dambulla to external parties at low nominal values without Cabinet approval, the use of such lands for purposes contrary to the conditions stipulated in the relevant agreements, and the failure to adequately safeguard the Authority's assets.The Committee observed that many of these transactions had been carried out in contravention of the objectives of the National Housing Development Authority and the relevant legal provisions. Accordingly, the Committee recommended that comprehensive reports on the identified irregularities be referred to the Criminal Investigation Department and the Commission to Investigate Allegations of Bribery or Corruption for the institution of appropriate legal action.The Committee also instructed the officials to expedite internal audit investigations into these matters, identify the officers responsible and initiate disciplinary action against them. Furthermore, the Committee recommended that the necessary measures be taken to strengthen asset management and internal control systems in order to prevent the recurrence of such irregularities in the future.The meeting was attended by Hon. Members of Parliament Attorney-at-Law Dayasiri Jayasekara, S.M. Marikkar, Attorney-at-Law Sujeewa Senasinghe, Mujibur Rahman, Chaminda Wijesiri, Dr. S. Sri Bavanandarajah, Sunil Rajapaksha, Thilina Samarakoon, Chandima Hettiarachchi, Asitha Niroshana Egodavithana, Ruwan Mapalagama, Jagath Manuwarna, Dinesh Hemantha, M.K.M. Aslam and Sudath Balagalla.
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.
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