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.
2026-03-30
Progress on the implementation of recommendations issued by the COPA on 06th January 2026 was reviewed Matters relating to the 2024 Auditor General’s Report and current performance were also examined The Department of Archaeology was summoned before the Committee on Public Accounts (COPA), where attention was drawn to the progress made in implementing the recommendations issued at the COPA meeting held on 06th January 2026, as well as to the current performance of the Department.These matters were discussed at the COPA meeting held in Parliament on 19th March 2026 under the chairmanship of Hon. Member of Parliament Kabir Hashim, to examine the Auditor General’s triennial report for the years 2021–2023, the 2024 Auditor General’s Report, and the current performance of the Department of Archaeology.At its meeting on 06th January 2026, it was recommended that a report on the gazetted and ungazetted antiquities identified by the Department of Archaeology be submitted to the Committee within a month. However, the Auditor General’s Department pointed out that data relating to antiquities not declared by Gazette had still not been submitted to the Committee. Accordingly, the Chair of the Committee instructed that a report be submitted within two weeks, including details of such antiquities, reasons for not publishing them by Gazette, and a proposed timeline for their gazetting.The Committee also focused on the lack of progress in implementing the recommendation to establish a centralized data system for the Department of Archaeology, and instructed that a progress report on this matter be submitted to the Committee.Furthermore, it was revealed that although Cabinet approval stipulates that 25% of the revenue generated by the Central Cultural Fund should be allocated to the Ministry of National Heritage, the Department of Archaeology has been requesting a lower allocation annually. Officials who appeared before the Committee stated that funds allocated through Cabinet approval had remained unutilized, and that there are plans to reduce future allocations requested from the Treasury accordingly.The shortage of vehicles available to the Department was also discussed, with officials noting that this has significantly affected the institution’s performance. The Committee stated that it would take steps to raise this matter with the relevant authorities.The meeting was attended by Committee Member Hon. Deputy Minister Dinindu Saman Hennayake and Hon. Members of Parliament (Dr.) M.L.A.M. Hizbullah, Hector Appuhamy, Chanaka Madugoda, Chandana Sooriyaarachchi, and Ruwanthilaka Jayakody.
2026-03-30
The Ministerial Consultative Committee on Youth Affairs and Sports has granted approval for the regulations under the “Convention Against Doping in Sports Act.” These regulations have been published in the Extraordinary Gazette No. 2471/51 dated 16 January 2026.The approval was granted at a meeting of the Committee held recently (Mar. 20) in Parliament, under the chairmanship of the Hon. Minister of Youth Affairs and Sports, Sunil Kumara Gamage, with the participation of the Hon. Deputy Minister, Dinindu Saman Hennayake.A number of Member Parliamentarians of the Committee, as well as non-member Parliamentarians, were present at the meeting. Officials, including the Secretary to the Ministry of Youth Affairs and Sports, also attended the occasion.
2026-03-30
The Sectoral Oversight Committee on Environment, Agriculture and Resource Sustainability has instructed officials to immediately prepare a plan for the environmentally friendly disposal of ash emitted from the Norochcholai Lakvijaya Power Plant.These instructions were given at a meeting of the Committee held in Parliament on the Mar. 17th, under the chairmanship of Hon. Member of Parliament Hector Appuhamy.It was revealed during the meeting that, due to issues related to the quality of coal imported to Sri Lanka for power generation, the volume of ash emitted during electricity generation has increased significantly. The Committee noted that if this ash is not properly disposed of, there is a risk of future environmental damage. Accordingly, officials were directed to formulate a plan under the leadership of the District Secretary of the Puttalam District to take the necessary measures.It was also proposed that the possibility of reusing the removed ash for production purposes be studied, and that any revenue generated from such products be utilized for welfare projects benefiting the communities affected by the power plant.In addition, the Committee instructed the Central Environmental Authority to submit a comprehensive report on whether water and air pollution have occurred as a result of the Norochcholai Power Plant. Furthermore, the North Western Provincial Environmental Authority was also recommended to provide responses within two weeks regarding the questionnaire and related matters submitted by the Committee in connection with the Norochcholai Power Plant.Officials of the North Western Provincial Environmental Authority stated that although the volume of ash emitted from the plant has increased, the filtration system in use at the plant is sufficient to absorb these particles. Several matters, including the issuance of environmental protection licenses for the power plant, were discussed in detail.The meeting was attended by Committee Members, Hon. Members of Parliament Kings Nelson, Roshan Akmeemana, Attorney-at-Law Chithral Fernando, Susantha Kumara Navaratne, Kitnan Selvaraj and Upul Kithsiri.
2026-03-24
The Select Committee of Parliament to conduct a comprehensive study on the lack of preparedness to face Cyclone Ditwah and report to Parliament and submit its proposals and recommendations in that regard, met for the first time on 19.03.2026 at Parliament under the chairmanship of Hon. Minister (Dr.) Nalinda Jayatissa.Addressing the meeting, the Chair emphasized the importance of gaining a clear understanding of how the relevant responsible institutions operate during natural disasters such as Cyclone Ditwah, in order to effectively carry forward the work of the Committee. Accordingly, it was decided to summon officials from the Disaster Management Centre, the Department of Meteorology, the Department of Irrigation, and the Mahaweli Authority of Sri Lanka to the next two committee meetings to obtain the necessary preliminary briefings.It was also proposed that, given the subject-specific scope of the Committee, officials possessing technical expertise and specialized knowledge in relevant fields should be called before the Committee from time to time to assist in understanding complex technical matters. The Chair noted that the Committee is required to submit its report to Parliament within three months from the date of its first meeting by 19.06.2026. Accordingly, efforts will be made to hold meetings promptly and prepare the report, including relevant recommendations, within this timeframe. He further stated that, in addition to proposals related to the Committee’s scope, the report is expected to include recommendations aimed at establishing a stronger mechanism to effectively respond to future events similar to Cyclone Ditwah.The meeting was attended by Hon. Members of Parliament Anuradha Jayaratne (Attorney-at-Law), Hector Appuhamy, Rohini Kumari Wijerathna, M.K.M. Aslam, Anushka Thilakaratne (Attorney-at-Law), Kanthasamy Prabhu, Ruwan Mapalagama, and (Dr.) Pathmanathan Sathiyalingam. Hon. Leader of the Opposition Sajith Premadasa also attended with the special permission of the Chair.
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