2023-06-19
Select Committee on Ease of Doing Business Index stated that steps should be taken urgently as there is still no formal mechanism to regulate the business activities conducted via the internet, and to regulate payments of taxes from the companies involved in such businesses.
The above was taken into discussion at the Select Committee of Parliament to study the practical problems and difficulties that have arisen in relation to enhancing the rank in the Ease of Doing Business Index in Sri Lanka and make its proposals and recommendations held recently (June 13) under the Chairmanship of Hon. Madhura Withanage.
There was a wide discussion about an economy known as the gig economy, where a group of freelancers who work freely in the labor market are engaged in various economic activities, apart from the traditional labor services that exist between the employer and the employee.
It was revealed that some foreign companies doing business online are taking large amounts of money to bank accounts abroad without paying taxes. Accordingly, the need to create a common business environment for local companies and international companies engaged in business activities centered on the Internet was emphasized here.
Heads of commercial banks, representatives of local and foreign companies doing business via Internet, representatives of credit card companies, central bank representatives and others participated in this committee meeting.
As the Gig Economy is growing rapidly along with the current technological development, the need to encourage business activities conducted via the Internet was pointed out. It was also suggested that a legal framework to regulate these businesses as well as a digital service tax should be introduced.
It was also discussed that it is necessary to create an environment to attract more companies involved in internet business to the country.
According to the declaration of the two-pillar solution to solve the tax challenges arising from economic digitization (G20 /OECD), out of the 140 member countries, only four countries, namely Sri Lanka, Pakistan, Kenya and Nigeria, have not signed the Global Corporate Tax Agreement.
At the same time, the Committee Chair also pointed out the need to promote digital transactions instead of currency notes and coins. The Chair advised the Committee to submit a report on the plan prepared by the Central Bank to promote digital transactions, which cost 3.2 billion annually for printing and issuing currency notes.
Members of Parliament Hon. Anura Priyadarshana Yapa, Hon. Mohomad Muzammil, Hon. Sanjeeva Edirimanna and Hon. Lalith Varna Kumara were present on this occasion.
Senior officials representing the Central Bank, Attorney General's Department, Ministry of Labor and Foreign Employment, Ministry of Finance, Ministry of Industry, Department of Inland Revenue participated and Registrar General of Companies Registration, Central Bank, Commercial Bank, Sampath Bank, HNB Bank, NDB Bank, Chairman, Chief Executive Officers and Senior Managers representing the Bank of Ceylon participated.
Furthermore, CEOs and directors of Lanka Pay, Pick Me, Uber, Master, Visa, Daraz, representing online service providers in Sri Lanka participated and presented their views to the Committee. The Registrar General of Companies present at the Committee stated that registration cannot be forced or mandated unless specified by law and the Company Registration Department acts as an agency to file information. Furthermore, registration of individual and joint ventures is done by the Regional Secretariat and another section of businesses are licensed by the local authorities.
Mrs. Viveka Siriwardena, Deputy Solicitor General of the Government stated that investment and providing goods and services through online technology are two separate things. It was also revealed that local companies that provide goods and services through online technology in Sri Lanka pay taxes to the government and some foreign companies engaged in the same business do not pay taxes to the government properly.
2026-10-15
The Ministerial Consultative Committee on Plantation and Community Infrastructure Affairs met recently under the chairmanship of its Chairman, Hon. Minister of Plantation and Community Infrastructure Affairs Samantha Vidyarathna.During the meeting, Members of Parliament brought various issues affecting the plantation sector to the attention of the Minister. A range of matters were discussed, including the utilization of unused portions of plantation lands, land-related issues faced by plantation communities, and the provision of housing facilities for these communities.Hon. Deputy Minister of Plantation and Community Infrastructure Sundaralingam Pradeep and several other Members of Parliament attended the committee meeting.
2026-10-15
The Committee on Public Finance discussed approvals granted to businesses designated as Businesses of Strategic Importance (BSIs) in Colombo Port City, future investment plans, and the current status of condominium projects.The Committee, which met in Parliament recently (the 8th) under the chairmanship of Hon. Dr. Harsha de Silva, focused on the investment promotion activities of the Colombo Port City Economic Commission, the regulation of foreign investments, and related legal and administrative matters.The meeting was attended by Deputy Ministers Hon. Chathuranga Abeysinghe and Hon. Nishantha Jayawera, as well as Members of Parliament Hon. Ravi Karunanayake, Harshana Rajakaruna, Shanakiyan Rajaputhiran Rasamanickam, Ajith Agalakada, M.K.M. Aslam, Nimal Palihena, Wijesiri Basnayake, Thilina Samarakoon, and Champika Hettiarachchi.During the meeting, members discussed updates on businesses recently gazetted as Businesses of Strategic Importance (BSIs), future investment plans, the current status of condominium projects in Port City, and the marketing and sale of these properties.Officials of the Commission stated that nine land plots, valued at a total of US$1.12 billion, had been leased to promote investment in the area adjoining Colombo’s main commercial district. They also noted that planning activities were under way to lease a further six land plots valued at US$1 billion.Furthermore, officials stated that the Commission was preparing to bring four government-owned land plots to the market, representing approximately one-seventh of the total land allocation. They further clarified that, to date, only land plots belonging to CHEC Port City Colombo (Pvt) Ltd had been leased.The officials explained that the land was leased for a period of 99 years, with an average value of US$3,000 per square meter. They also noted that the Commission had received Rs. 398 million to date, equivalent to 1% of the total lease payments.The Committee also examined the regulatory mechanisms in place to identify the beneficial owners of companies investing in Port City, ensure transparency in foreign investments, and prevent money laundering and the financing of terrorism.The issuance of visa recommendations for foreign workers and the monitoring of their activities were also discussed. Taking into consideration information that approximately 14,300 visas had been issued to foreign nationals on the recommendation of the Commission, the Committee considered the practical feasibility of monitoring their activities.The importance of strengthening the relevant regulatory measures to prevent illegal activities within Port City and safeguard Sri Lanka’s international reputation was also emphasized.The Committee raised questions regarding the protection of pre-sale deposits paid by investors intending to purchase units in condominium and residential development projects. Particular attention was given to the escrow account mechanism, which is intended to ensure that funds received from foreign investors are used exclusively for the relevant projects and that these funds remain secure.The Committee also discussed the actual volume of foreign investment received by Port City, the current operational status of approved businesses, and whether the anticipated employment opportunities had been created by these businesses.
2026-10-14
The expert committee report on public views and proposals relating to the review of election laws was recently submitted to the “Select Committee of Parliament to review the laws dealing with Elections (excluding laws dealing with Provincial Council Elections) and report to Parliament and submit its proposals and recommendations in that regard”. The report was handed over to the Chairman of the Select Committee, Hon. Minister of Public Administration, Provincial Councils and Local Government, Prof. A.H.M.H. Abeyrathna, by the expert committee appointed by the Select Committee to review the views and proposals submitted by the public.The expert committee was appointed to conduct an in-depth review of 31 proposals submitted by members of the public, various institutions and organizations on electoral reforms, together with reports of previous parliamentary select committees appointed to examine election-related matters, and to submit a comprehensive report on its findings.The members of the expert committee are Mr. Ashoka Peiris, Chairman of the Salaries and Pensions Commission; Mr. Saman Sri Rathnayake, Chairman of the Delimitation Commission; Prof. Chaminda Abeysinghe, Dean of the Faculty of Social Sciences at the University of Kelaniya; Dr. K. Thavalingam, Member of the Delimitation Commission; and Ms. P.S.M. Charles, former Governor of the Northern Province.Commenting on the matter, the Chairman of the Select Committee, Hon. Minister Prof. A.H.M.H. Abeyrathna, stated that separate reports had been prepared and submitted to the committee on the various issues and themes raised by the institutions and organizations that had presented proposals.He further stated that several registered political parties had also submitted their views and proposals. The Parliamentary Select Committee expects to review all submissions made by the public, various institutions and organizations, as well as political parties, and present an interim report to Parliament within two months.The Chairman added that, even after the interim report is submitted, citizens and members of the public will be given a further opportunity to submit amendments and new proposals.Meanwhile, the committee decided to extend by a further two weeks the deadline granted to registered political parties to submit their views and proposals on the review of election-related laws, excluding legislation governing Provincial Council elections.The committee also emphasized that members of the expert committee appointed to review public submissions would be permitted to submit proposals in their personal capacities, should they wish to do so.Following the meeting, a media briefing was held under the leadership of the Chairman and committee members to inform the public of the decisions taken by the Select Committee.Those who attended the committee meeting included committee members Hon. Minister Dr. Upali Pannilage; Hon. Deputy Ministers Attorney-at-Law Sunil Watagala and Muneer Mulaffer; and Hon. Members of Parliament Ravi Karunanayake, Harshana Rajakaruna, J.C. Alawathuwala, Kathiravelu Shanmugam Kugathasan, Ruwanthilaka Jayakody, Chandima Hettiarachchi and Attorney-at-Law Thushari Jayasinghe, among others.
2026-10-08
The Committee on Public Finance recently summoned officials of the Central Bank of Sri Lanka to Parliament to inquire into the financial irregularities identified at NDB Bank and the final audit report relating to the matter.The Committee meeting, chaired by Hon. Member of Parliament Dr. Harsha de Silva, discussed irregularities identified in NDB Bank’s financial statements, shortcomings in the audit process, and the relevant audit reports.The meeting was attended by Hon. Deputy Ministers Chathuranga Abeysinghe, Dr. Kaushalya Ariyaratne, and Nishantha Jayaweera, as well as Hon. Members of Parliament Attorney-at-Law Rauff Hakeem, Ravi Karunanayake, Ajith Agalakada, Nimal Palihena, Wijesiri Basnayake, M.K.M. Aslam, Champika Hettiarachchi, and Attorney-at-Law Lakmali Hemachandra.The Committee also focused on the findings of the investigation conducted by the Sri Lanka Accounting and Auditing Standards Monitoring Board (SLAAMB), as well as the findings revealed through the investigation conducted by Deloitte Touche Tohmatsu India LLP. In particular, the Committee inquired into the failure of the external auditors to identify irregularities in NDB Bank’s financial statements.The accountability of senior management with regard to corporate governance and risk management in relation to the financial irregularities was also discussed.Furthermore, as a significant proportion of NDB Bank’s shares are held by institutions representing public and state funds, the Committee also considered the potential impact of such financial irregularities on public funds and the general public.The Committee also discussed the progress made by LankaPay in establishing a centralized fraud monitoring system to prevent fraud within the financial system. The need to strengthen fraud monitoring systems at the individual bank level to monitor transactions carried out within each bank was also emphasized.Accordingly, the following observations are included in the final audit report concerning the financial irregularities at NDB Bank:1. The audit covers the period from 1 April 2016 to 31 March 2026. The audit report specifically identifies the financial impact arising from fraudulent transactions amounting to Rs. 13,639,664,684 (Rs. 13.6 billion).2. According to the disclosure made on 29 September 2026, the financial impact arising from the fraudulent transactions is as follows:• Rs. 1.5 billion for the period prior to 1 January 2025;• Rs. 9.6 billion during 2025; and• Rs. 2.5 billion for the quarter ended 31 March 2026.3. Compared with the initial disclosure made by NDB on 6 April 2026, the reported amount of the fraud has increased by Rs. 0.4 billion, from Rs. 13.2 billion to Rs. 13.6 billion. Compared with the amount disclosed by NDB on 26 June 2026, based on the interim report dated 22 June 2026, the additional amount of fraud is Rs. 60 million.4. The final audit report has also confirmed the previous disclosures that no customer accounts were affected as a result of the fraud incident.5. The report has identified several governance failures at NDB relating to the processing of CEFT transactions, user-level activities within the Core Banking System, and the management of user credentials and access information. In addition, shortcomings have been identified in several operational areas, including transaction monitoring, daily account reconciliation, financial compliance, internal audit, branch network management, and operational risk management.6. The audit report has made comprehensive recommendations to strengthen the control mechanisms, governance structures, and processes relating to the above-mentioned activities of the bank.
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