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.
2026-04-29
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, called officials from the Department of Meteorology and the Disaster Management Centre to appear before it.These matters were discussed when the Committee met recently in Parliament under the chairmanship of the Hon. minister (Dr.) Nalinda Jayatissa. The meeting was attended by a group of senior officials from the respective institutions, including the Director General of the Department of Meteorology, Mr. Athula Karunanayake, and the Director General of the Disaster Management Centre, Major General (Retd) Sampath Kotuwegoda.During the meeting, the Committee inquired into how the Department of Meteorology and the Disaster Management Centre operate as primary responding institutions during natural disasters.Officials also clarified the shortcomings in the existing system as well as deficiencies in the relevant technical equipment.It was also decided to summon officials from the Department of Irrigation and the Mahaweli Authority of Sri Lanka before the Committee in the future to examine how those institutions function as primary responding bodies, and subsequently to call these institutions separately to investigate incidents related to Cyclone “Ditwah.”The meeting was attended by the Committee members including Hon. Deputy Ministers Dr. Prasanna Gunasena, Major General (Retd.) Aruna Jayasekara, and Anton Jayakodi, as well as Hon. Members of Parliament Attorney at Law Anuradha Jayaratne, Hector Appuhamy, Rohini Kumari Wijerathna, M.K.M. Aslam, Attorney at Law Anushka Thilakaratne, Kandasamy Prabhu, Ruwan Mapalagama, and (Dr.) Pathmanathan Sathiyalingam.
2026-04-28
The Parliamentary Caucus for Persons with Disabilities held discussions with several ministries regarding the allocations made in the 2026 Budget for persons with disabilities and the progress of related programs. The meeting took place recently in Parliament under the chairmanship of Hon. Member of Parliament Sugath Wasantha de Silva.During the meeting, relevant ministries presented matters related to higher education, religious and cultural sites, accessible housing for persons with disabilities, access to credit for entrepreneurship, and technological innovations.Accordingly, the University Grants Commission stated that 143 students with disabilities were admitted during 2024/2025, and it is expected to increase this number to 203 in 2025/2026. Each university has been allocated between Rs. 25–50 million for infrastructure development. It was also noted that an additional monthly allowance of Rs. 5,000 will be provided to low-income students with disabilities. Officials further stated that a pilot project is being implemented to admit students with disabilities into medical faculties in several universities. Measures will also be taken to recruit permanent sign language interpreters for universities and to develop a program to identify students who become disabled due to accidents and provide them with assistive devices such as wheelchairs.Meanwhile, officials from the Ministry of Buddhasasana, Religious and Cultural Affairs stated that coordinating officers have already been appointed under the ministry to handle matters related to persons with disabilities. The Chair of the Caucus drew attention to the lack of physical accessibility at religious places, especially temples. It was decided to coordinate with the Central Cultural Fund and the Department of Archaeology to improve accessibility infrastructure at religious and historical sites.The Ministry of Housing, Construction and Water Supply has allocated Rs. 500 million to provide sanitary facilities for persons with disabilities in the Western Province and plans to construct 9,700 houses in 2026. The ministry also agreed to adopt a special loan scheme for persons with disabilities and to develop “model plans” to construct houses that meet their specific needs.Officials further informed the Caucus that housing construction will be carried out based on flexible “model plans” designed with consideration for the specific needs of persons with disabilities.The Ministry of Industry and Entrepreneurship Development pointed out that there is a significant “trust gap” between banks and entrepreneurs with disabilities, making it difficult for them to obtain loans. Accordingly, the Chair instructed the ministry to explore the possibility of introducing a Credit Guarantee Scheme for micro and small entrepreneurs with disabilities.In addition, the Ministry of Science and Technology stated that it will pay special attention to research that supports the needs of the disabled community, particularly in the commercialization of innovations. The Caucus advised the ministry to encourage research teams to develop assistive devices and to prioritize bringing such products to market.Officials from the Ministries of Youth Affairs and Sports, Public Security and Parliamentary Affairs, Foreign Affairs, Foreign Employment and Tourism, and Environment also shared their views.The Caucus further decided to review the progress of all the proposed plans by each ministry again in six months.The meeting was attended by the Deputy Co-Chair of the Caucus, Hon. (Dr.) Pathmanathan Sathiyalingam, members of the Caucus including Hon. Members of Parliament Padmasiri Bandara, Chandima Hettiarachchi, and with the permission of the Chair, Hon. Members of Parliament T.K. Jayasundara and Jagath Manuwarna, along with a group of officials.Representatives from several organizations, including the National Forum of Women with Disabilities, the Sri Lanka Central Federation of the Deaf, the Little People Association, and the Youth Network with Disabilities (YND), also attended. Additionally, representatives of the disability community were present as observers at the invitation of the Chair, along with officials from the International Foundation for Electoral Systems (IFES).
2026-04-09
The Committee on Public Finance (CoPF) met on 07th April 2026 under the chairmanship of Hon Member of Parliament Dr. Harsha de Silva.The Governor of the Central Bank of Sri Lanka (CBSL) Dr. Nandalal Weerasinghe, along with members of the Governing Board, the Monetary Policy Board, and senior officials, attended the meeting as part of the Central Bank’s statutory presentation to Parliament conducted once every four months.Hon. Deputy Ministers Chathuranga Abeysinghe, (Dr.) (Ms.) Kaushalya Ariyarathnea and Nishantha Jayaweera, Hon. Members of parliament Rauff Hakeem, Attorney at Law, Ravi Karunanayake, M.K.M. Aslam, Nimal Palihena, Chithral Fernando, Attorney at Law, Wijesiri Basnayake, Thilina Samarakoon, Champika Hettiarachchi and (Ms.) Lakmali Hemachandra, Attorney at Law were also present at the meeting.During the meeting, the Committee took up as a matter of priority the alleged fraud at NDB Bank. The Committee initiated a focused discussion with the Central Bank, underscoring the seriousness of the issue and the need for urgent attention.The Governor informed the Committee that an initial investigation in this regard is currently underway. He further assured that the Central Bank will report back to the Committee at the earliest possible opportunity once the necessary information has been gathered.The Committee observed with serious concern that there appear to have been considerable lapses in corporate governance at the bank, deficiencies in supervision by the relevant departments of the Central Bank of Sri Lanka, and undue delays in the reporting of material information.The Committee firmly underscored that such shortcomings are unacceptable and directed that immediate corrective measures be undertaken. It further emphasized that it will continue to closely monitor this matter and exercise stringent oversight to ensure full accountability, transparency, and the safeguarding of public confidence in the financial system.
2026-04-02
The Committee on High Posts has approved the appointments of four Ministry Secretaries.The approval was granted when the Committee met in Parliament recently (Mar. 20) under the chairmanship of Hon. Prime Minister Dr. Harini Amarasuriya.Accordingly, the Committee approved the appointments of Air Vice Marshall H.S.S Thuyyacontha (Retd.) as the Secretary to the Ministry of Defence, Mr. L Mohamed Navavi as the Secretary to the Ministry of Science and Technology, Mrs. W.M.D.T Wickramasinghe as the Secretary to the Ministry of Women and Child Affairs and Mr. W.W.S Mangala as the Secretary to the Ministry of Ports and Civil Aviation.
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