News

CoPF backs proposal to increase Excise Duty

Published

2 months ago

March 10, 2025

editor

The proposal submitted by the Ministry of Finance to increase the Excise Duty received the approval of the Committee on Public Finance.

This approval was granted during the meeting of the Committee on Public Finance held on March 06 in Parliament, chaired by MP Dr. Harsha de Silva
The Committee considered Gazette Extraordinary no. 2418/42 published under the Excise Notification No. 01/2025 (Excise Duty of Liquor) issued under the Section 22 of the Excise Ordinance (Chapter 52), Gazette Extraordinary no. 2418/43 published under the Order under the Section 3 of the Excise Special Provisions) Act, and Gazette Extraordinary no. 2415/79 published under the Regulations under section 112 of the Regulation of Insurance Industry Act No. 43 of 2000 at the Committee meeting held.

Accordingly, the Committee deliberated on the Order under Section 3 of the Excise (Special Provisions) Act, No. 13 of 1989, as well as Excise Notification No. 01/2025 issued under Section 22 of the Excise Ordinance (Chapter 52).

Officials who presented their views on the matter stated that under the Order pursuant to Section 3 of the Excise (Special Provisions) Act, No. 13 of 1989, an increase of 5.9% has been proposed for the excise duty imposed on all items subject to a fixed rupee value-based excise duty, including motor vehicles, cigarettes, aerated beverages, and tobacco products. Furthermore, under the Excise Notification No. 01/2025 issued under Section 22 of the Excise Ordinance (Chapter 52), an increase of 5.9% in the excise duty on liquor products has also been proposed, the officials said.

Expressing his views, the Committee Chair stated that the increase in the excise duty on cigarettes cannot be approved without concrete data and emphasized the need for justification regarding the steps taken to increase the excise duty on cigarettes. Furthermore, he pointed out that studies conducted on excise revenue from cigarettes indicate that this calculation method has led to a decline in government revenue while increasing the profits of particular manufacturing companies. Therefore, he stressed the importance of ensuring that this tax revision would indeed be beneficial to government revenue. Consequently, the Chair decided to reconsider the Order issued under Section 3 of the Excise (Special Provisions) Act, No. 13 of 1989 at the next Committee meeting following further clarifications from officials of the Ministry of Finance, regarding the excise duty increase.

Moreover, the proposal to increase the excise duty on liquor under Excise Notification No. 01/2025 issued under Section 22 of the Excise Ordinance (Chapter 52) was considered and approved by the Committee. During the discussions, Members of Parliament raised concerns that such tax increases could potentially drive individuals towards the consumption and production of illicit liquor. In response, officials stated that raids against illicit liquor operations are being conducted systematically. Additionally, they mentioned that within the past two months, the production of liquor in the country had increased by 22%, while revenue had grown by 23%. Furthermore, it was stated that plans are underway to introduce a new category of liquor with the aim of minimizing the consumption of illicit liquor.

Additionally, the Regulations issued under Section 112 of the Regulation of Insurance Industry Act No. 43 of 2000, published in Gazette Extraordinary No. 2415/79, were considered and approved by the Committee. Under this regulation, the annual levy payable by insurance companies to the Insurance Regulatory Commission of Sri Lanka (IRCSL) has been proposed to be increased from 0.125% to 0.2% of the gross written premium in order to cover the increased expenditure of the Commission.

During the discussions, the Chair informed the Committee of certain instances where the Insurance Regulatory Commission of Sri Lanka (IRCSL) had not carried out regulatory functions effectively. He further expressed his dissatisfaction regarding the delayed actions taken by the Commission under the prevailing law concerning the situation at MBSL Insurance. He instructed officials to keep the Committee informed of future measures to be taken in this regard. Moreover, the Committee emphasized the necessity for the Insurance Regulatory Commission of Sri Lanka to develop and present a strategic plan to enhance the insurance sector as an industry in the country.

The Committee also held an extensive discussion on the complexities involved in obtaining claims under third-party insurance. It was highlighted that there is a need for simplified regulations to ensure that claimants can access third-party insurance funds more easily in the event of an accident. The Committee directed the Insurance Regulatory Commission of Sri Lanka to address this matter.

Additionally, the Chair drew the attention of the Committee to the possibility of utilizing funds deposited in insurance reserves through banking mechanisms for development purposes. Consequently, the Director General of the Insurance Regulatory Commission of Sri Lanka was instructed to formulate and submit a regulatory framework for this purpose after engaging in discussions with industry stakeholders.

The Committee also discussed taxation related to casinos. The Chair pointed out that while taxes are imposed on physically established casino establishments, a large number of online casinos operate without any taxation. He stressed the need to address this issue and bring these online casinos under a regulatory framework. Furthermore, he reiterated that the Committee had been working for years to establish a Casino Regulatory Authority and stated that steps would be taken to inform the Attorney General’s Department to expedite the drafting of the necessary legislation.

News

2nd phase of bidding for luxury vehicles from Prez Secretariat commences

Published

5 hours ago

May 9, 2025

editor

The second phase of bidding has commenced for the sale of 27 luxury and decommissioned vehicles from the Presidential Secretariat.

These vehicles, manufactured between 1991 and 2016, include a range of high-end and utility models: two BMW cars, two Ford Everest SUVs, one Hyundai Terracan SUV, two Land Rover SUVs, one Mitsubishi Montero, three Nissan petrol cars, two Nissan-type motor cars, one Porsche Cayenne, five SsangYong Rexton SUVs, one Land Cruiser Sahara SUV, six V08 vehicles and one Mitsubishi Rosa air-conditioned bus.

Tender documents are available from the Finance Division, located on the second floor of the Sema Building at the Presidential Secretariat, on working days between 9:00 a.m. and 3:00 p.m. until 14th May. Interested parties may also inspect the vehicles at the Salusala premises, No. 93, Jawatta Road, up to the same date.

This auction follows the successful first phase of the programme, during which 14 luxury vehicles, six decommissioned vehicles and various spare parts were sold. That phase included the auction of 15 vehicles, including nine Defender Jeeps. The initiative reflects the government’s ongoing commitment to reducing public expenditure and ensuring fiscal discipline.

It is important to note that the vehicles on offer were not allocated to the permanent staff of the Presidential Secretariat. They were utilised by advisors and other individuals appointed under Article 41(1) of the Constitution during the tenure of the previous President.

The official notice regarding this auction is shown below :

Notice – English Download

(President’s Media Division)

News

IPL suspended for a week over safety concerns

Published

5 hours ago

May 9, 2025

editor

The Indian Premier League has been suspended for one week amid the ongoing tensions between India and neighbouring Pakistan.

Overnight, India accused Pakistan of attacking three of its military bases with drones and missiles, a claim which Islamabad denied.

Pakistani authorities say 31 people have been killed and 57 injured by Indian air strikes in the country and Pakistan-administered Kashmir since Wednesday morning.

Twenty-six civilians were killed in Indian-administered Kashmir last month and India has accused Pakistan of supporting militants behind the attack – an allegation the neighbouring country has rejected.

The situation escalated on Tuesday evening when India launched a series of strikes in a move named “Operation Sindoor”.

The Board of Control for Cricket in India (BCCI) said: “The decision was taken by the IPL Governing Council after due consultation with all key stakeholders following the representations from most of the franchisees, who conveyed the concern and sentiments of their players, and also the views of the broadcaster, sponsors and fans.

“While the BCCI reposes full faith in the strength and preparedness of our armed forces, the Board considered it prudent to act in the collective interest of all stakeholders.”

On Thursday, the IPL match between Punjab Kings and Delhi Capitals in Dharamsala was abandoned mid-match because of floodlight failure, with players, staff and media set to be evacuated from the city, which lies close to the contested region of Kashmir.

Later on the same day, the remaining matches in the Pakistan Super League were moved to the United Arab Emirates.

The IPL, the richest franchise T20 league in the world, had been set to run until 23 May, with 16 games left to be played.

“Further updates regarding the new schedule and venues of the tournament will be announced in due course after a comprehensive assessment of the situation in consultation with relevant authorities and stakeholders,” said the BCCI.

There are 10 England players – past and present – involved in this year’s tournament. They include former white-ball captain Jos Buttler, fast bowler Jofra Archer and all-rounder Jacob Bethell.

IPL matches have been staged outside India before, with the 2009 edition held in South Africa following an attack on the Sri Lankan national side in Lahore in Pakistan, while the 2020 and second half of the 2021 seasons were staged in the United Arab Emirates during the Covid-19 pandemic.

(BBC News)

News

First capacity-building program under NCGG – SLIDA MoU concludes successfully

Published

8 hours ago

May 9, 2025

editor

A Memorandum of Understanding (MoU) between the National Centre for Good Governance of India (NCGG) and Sri Lanka Institute of Development Administration (SLIDA) was signed during the State Visit of President of Sri Lanka, H.E. Anura Kumara Disanayaka to India in December 2024 for training and capacity building of 1500 Sri Lankan civil service officers over a period of five years.

The first program under the MoU was successfully held at NCGG from 21 April to 02 May 2025, and was attended by 41 officers. Based on the request of the Government of Sri Lanka, the theme of the program was ‘digitization in governance’. The program featured a series of sessions focused on key areas such as digital service delivery, digital public infrastructure, financial inclusion through digital payments, and innovations in public grievance redressal systems. Senior officials and domain experts delivered presentations on flagship Indian initiatives in the digital domain, including Ayushman Bharat Digital Mission, e-Office, GeM, Aadhaar, PM Gati Shakti, among others.

At an interaction session with participants in the inaugural program organized on 08 May 2025 at SLIDA, the High Commissioner of India to Sri Lanka, H.E. Santosh Jha underscored that capacity building is an important pillar of the development cooperation between the two countries, with Sri Lanka being among the largest recipients of scholarships and capacity building initiatives offered by India. He highlighted that, demonstrating India’s continued commitment to enhancing capacity-building opportunities for Sri Lankans, Prime Minister of India had announced additional training avenues to 700 Sri Lankan citizens annually during his recent State visit. In that context, the High Commissioner said that the participants in the first NCGG-SLIDA programme also represented the first set of Sri Lankan nationals to receive training as part of the significantly enhanced capacity-building endeavour of India that will now benefit 1000 Sri Lankans annually.

The interaction session was also attended by Secretary, Ministry of Public Administration, Provincial Councils and Local Government, Mr S. Aloka Bandara; Director General of SLIDA, Mr A.V. Janadara; senior officials and faculty members of SLIDA; among others.

In view of the highly positive feedback from the participants in the inaugural NCGG-SLIDA program, based on request from SLIDA, a second program on the same theme under the MoU is now being planned for another batch of around 40 officers for early June 2025.