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.
2026-04-09
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.
2026-03-31
A Parliamentary delegation from the Sectoral Oversight Committee on Infrastructure and Strategic Development of the Parliament of Sri Lanka, led by Hon. S. M. Marikkar, Member of Parliament and Chairman of the Committee, undertook a Parliamentary Study Tour to New Delhi and Mumbai from 22nd to 27th March 2026, following an invitation extended by the High Commission of India.The Sri Lankan delegation comprised the Chief Opposition Whip Hon. Gayantha Karunathilleka, Members of Parliament Hon. Nalin Bandara Jayamaha, Hon. Manjula Suraweera Arachchi, Hon. K. Ilankumaran, Hon. Chathura Galappaththi, Hon. Ravindra Bandara, Hon. Asitha Niroshana Egoda Vithana, Hon. Shantha Pathma Kumara Subasingha, Hon. (Mrs.) Geetha Herath, Attorney at Law, Hon. Kins Nelson and Hon. Dharmapriya Wijesinghe. Parliament staff members attached to the office of the Sectoral Oversight Committees who were also present included Assistant Director (Administration) Mr. K. P. Chandana, Principal Officer Ms. S. W. T. R. De Silva and Parliamentary Officer Ms. W. K. A. M. M. M. Arthanayaka. The delegation arrived in New Delhi on 22nd March 2026 and commenced official engagements on the following day. The programme included a meeting with the Foreign Secretary of India and a floral tribute at Prerna Sthal in the Parliament House Complex. The delegation also paid a courtesy call on the Hon. Om Birla, Speaker of the Lok Sabha.An orientation session on the Indian Parliamentary system was conducted, providing valuable insights into institutional structures and legislative processes. The delegation further held productive interactions with the Standing Committee on Transport, Tourism and Culture, as well as the Standing Committee on Housing and Urban Affairs.On 24th March 2026, the delegation participated in a series of technical and policy-focused engagements, including a session on India’s “PM Gati Shakti” National Master Plan. Visits were made to the National Highways Authority of India and the Solar Energy Corporation of India, alongside discussions with the Confederation of Indian Industry. The delegation also engaged with the India-Sri Lanka Parliamentary Friendship Group, further strengthening bilateral Parliamentary relations.Continuing its programme on 25th March 2026, the delegation visited the Delhi Metro Rail Corporation to study urban mass transit systems and best practices in public transportation. This was followed by an interaction with the New Delhi Municipal Council on Smart City initiatives, focusing on urban governance, digital infrastructure, and sustainable urban development. The delegation also met with officials of the Jal Jeevan Mission under the Ministry of Jal Shakti to discuss large-scale water supply management and rural infrastructure development.The programme in Mumbai included visits to key infrastructure and development sites such as the Atal Setu Bridge and the Jawaharlal Nehru Port Trust, as well as the Navi Mumbai Airport. The delegation also visited the Power Exchange India Limited and met with the Hon. Chief Minister of Maharashtra.On 27th March 2026, the delegation visited prominent locations including the Gateway of India and Elephanta Caves. The programme also included a meeting with the Hon. Speaker of the Maharashtra Vidhan Sabha and discussions with senior officials responsible for investment promotion and industries, prior to their departure to Colombo.Sri Lanka’s participation in this Parliamentary Study Tour underscored its continued commitment to strengthening bilateral cooperation with India and advancing institutional capacity, knowledge exchange, and best practices in infrastructure and strategic development through sustained Parliamentary engagement.
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.
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