News

CoPF questions about Gazette delays

Published

2 years ago

October 13, 2023

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The Committee on Public Finance (CoPF) questioned the officials of the Ministry of Finance as to why it took the Ministry 15 weeks to submit a Gazette published on the 16th of June 2023 to the Committee on Public Finance for approval.

The Committee Members mentioned that, as a result, the Committee faces criticism for delaying the approval of certain Gazettes. In reality, it is the Ministry that causes these delays by submitting the Gazettes late, leaving the Committee insufficient time for thorough analysis and consideration. The Committee emphatically instructed the officials to ensure that Gazettes intended for consideration are promptly sent to the Committee, without any unnecessary delays, and expressed great dissatisfaction with the current delays.

The aforesaid was stated at the Committee on Public Finance held recently in Parliament, Chaired by Dr. Harsha de Silva when the Committee met to consider and approve a Resolution under the Customs Ordinance, two Orders under the Excise Ordinance and three orders under the Excise (Special Provisions) Act, No. 13 of 1989.

The Committee reconsidered Resolutions under Customs Ordinance (Gazette Extraordinary No. 2336/72, 16th June 2023) at its meeting and noted that ‘soap noodles’ are imported for soap production, with a few companies importing palm oil fatty acids. Due to a new customs duty of 24% on palm fatty acids, certain companies are importing palmitic and lauric acids at lower tax rates in order to produce soap noodles. To maintain market price equality and prevent tax revenue loss, a new tax of 29% is proposed to be imposed on these substituted acids, now categorized under a new HS code. Evidently, the Committee noted its concern regarding the policy inconsistency related to this gazette, as the general policy for importation of raw materials is to implement lower taxes than finished or semi-finished products. However, the Gazette detailing the introduction of new HS codes for these derivatives was approved by the Committee on Public Finance upon further review.

While reviewing the Orders under the Excise Ordinance, the Committee engaged in a thorough discussion regarding the use of counterfeit stickers on liquor bottles and the massive loss of tax revenue to the country, given that 40% of alcohol in the market features counterfeit stickers. The Committee highlighted that since its revelation during the Committee on Ways and Means, numerous raids have been conducted, resulting in a sudden surge in revenue of 2 billion rupees within two weeks for the Excise Department. Consequently, the Committee has decided to further address this issue during a joint meeting with the Committee on Ways and Means and the Committee on Public Accounts. Furthermore, the Committee questioned officials as to why no court cases have been filed to date to pursue such illicit activities. In addition, Dr. Harsha raised concerns about the procurement contract for the digital sticker, as a price discrepancy was observed. A digital sticker costs only 0.20 cents, while the Government is paying the contractor 1.90 rupees per sticker, resulting in an overpayment. Officials stated that this was due to the contract being originally made for the previous physical sticker, and no amendments were made to the contract when stickers were digitalized.

State Minister – Dr. Suren Raghavan, Members of Parliament Chandima Weerakkodi, Nimal Lanza, Dr. Major Pradeep Undugoda, Premnath C. Dolawatte, Madhura Withanage, U.K Sumith Udukumbura, Rauff Hakeem, Patali Champika Ranawaka, Mahindananda Aluthgamage, Mayantha Dissanayake, Harshana Rajakaruna, were present at this Committee meeting held.

News

IMF Executive Board approves Sri Lanka’s fourth review

Published

29 minutes ago

July 2, 2025

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The Executive Board of the International Monetary Fund (IMF) completed the Fourth review under the 48-month Extended Fund Facility (EFF) Arrangement, allowing the authorities to draw about US$350 million, said Evan Papageorgiou, IMF Mission Chief for Sri Lanka.

This brings the total IMF financial support disbursed so far to about US$1.74 billion.

“The EFF arrangement for Sri Lanka was approved by the Executive Board on March 20, 2023 in an amount of SDR 2.286 billion (395 percent of quota or about US$3 billion). The program supports Sri Lanka’s efforts to durably restore macroeconomic stability by (i) restoring fiscal and debt sustainability while protecting the vulnerable, (ii) safeguarding price and financial sector stability, (iii) rebuilding external buffers, (iv) strengthening governance and reducing corruption vulnerabilities, and (v) enhancing growth-oriented structural reforms.”

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Cabinet approval for online traffic fine payment system – Bimal

Published

11 hours ago

July 1, 2025

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Minister of Transport and Highways Bimal Rathnayake has said that Cabinet approval has been granted to implement an islandwide online traffic fine payment system.

He made this statement during a media briefing near the Kottawa Expressway entrance, following a public awareness programme on mandatory seat belt use for vehicles travelling on expressways.

“The Cabinet approved the proposal today. At present, the online fine payment system is available only between Kurunegala and Anuradhapura. Now, we’re providing all police units with mobile devices, so that from this year, traffic fines can be paid from anywhere via mobile phones… Rather than paying fines, we urge everyone to drive carefully, wear seat belts, and avoid violations. Our core message is simple, travel safely,” the minister has said.

News

Indian entrepreneur delegation meets President AKD (Pics)

Published

11 hours ago

July 1, 2025

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Indian entrepreneurs state that they are currently directing their attention towards new investment prospects in Sri Lanka, particularly in sectors like energy, infrastructure, the digital economy, tourism and agriculture, as well as on enhancing entrepreneurial capacity.

A delegation of around 20 Indian entrepreneurs, comprising heads of several prominent Indian companies, is currently engaged in an active programme in Sri Lanka, coordinated by the Confederation of Indian Industry (CII), with the aim of further developing existing investment opportunities and exploring new prospects. These comments were expressed during the delegation’s meeting with President Anura Kumara Disanayake this afternoon (01) at the Presidential Secretariat.

The delegation is visiting Sri Lanka following an invitation extended by President Anura Kumara Disanayake during his recent official visit to India. The Indian delegation held discussions with several Sri Lankan Ministers and with officials from key government institutions, including the Board of Investment of Sri Lanka.

President Disanayake emphasized that the country has now established a more favourable environment for investors, owing to the current economic stability.

The President briefed the Indian business representatives on the constructive measures implemented by the government to create a supportive economic climate and conditions conducive to investment. He further noted that the government has strengthened the legal framework and institutional system necessary to attract and sustain large-scale investments. He assured that under the present administration efforts have been made to eliminate the losses and corruption previously associated with investments.

The President also emphasised that special attention has been given to attracting regional investors and providing them with the necessary facilities. He pointed out that numerous new business opportunities have opened up between India and Sri Lanka across various sectors.

The Indian entrepreneurs stated that Sri Lanka’s strategic location is of great appeal to investors. They appreciated the President’s explanation regarding the current situation of the country, noting that it had inspired confidence and renewed hope in them.

Minister of Labour and Deputy Minister of Economic Development Professor Anil Jayantha Fernando, Senior Additional Secretary to the President, Roshan Gamage, and Indian High Commissioner to Sri Lanka Santosh Jha, along with officials from the Indian High Commission, were present at the occasion. Also in attendance were former Chairman of CII and Chairman and Managing Director of ITC Limited, Sanjiv Puri, and heads of several other major Indian companies.

(President’s Media Division)