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CoPF questions about Gazette delays

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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.

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President AKD returns to SL

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President Anura Kumara Disanayaka has returned to Sri Lanka today (June 15) after a successful visit to the Federal Republic of Germany from June 11 -13.

A statement issued in this regard by the Sri Lankan Ministry of Foreign Affairs, Foreign Employment and Tourism further notes :

President Disanayaka undertook the visit at the invitation of the President of Germany, Frank- Walter Steinmeier, who welcomed him at the Bellevue Palace in Berlin on 11 June 2025, with a ceremonial Guard of Honour accorded by the German Armed Forces.

During the bilateral talks, the two heads of state focused on further strengthening the cordial bilateral relationship and utilizing emerging economic opportunities in areas such as vocational training and the tourism industry. President Disanayaka also briefed the German President on the recent developments in Sri Lanka, including the economic stabilization and reconciliation efforts undertaken and envisaged future action.

During the visit, the German Foreign Minister Dr. Johann Wadephul and German Federal Minister for Economic Cooperation and Development Ms. Reem Alabali-Radovan called on President Disanayake. The discussions with the German Foreign Minister Dr. Wadephul focused on increasing the growing bilateral exchanges between the two countries, economic stabilization efforts, enhancing German investment, the GSP plus trade facility with the European Union, and strengthening cooperation in the multilateral arena.

During the meeting with Minister Alabali-Radovan, President Disanayaka appreciated the development assistance from the German government, which had benefitted the country for more than 65 years, with recent examples being the German-Sri Lanka Friendship Maternity Hospital in Galle and the German Technical Training Institute in Kilinochchi. Discussions also focused on future projects, especially expanding vocational education and training opportunities.

During the visit, the State Secretary of the German Federal Ministry for Economic Affairs and Energy, Dr. Thomas Steffen called on Sri Lanka’s Minister of Foreign Affairs, Foreign Employment and Tourism Vijitha Herath and discussed Sri Lanka’s recent economic progress, improved political stability, and the government’s ongoing efforts to create a more investor- friendly environment.

The visit primarily focused on strengthening economic cooperation between the two countries, including considerable opportunities in emerging areas. Addressing a business forum organized by the Sri Lanka Embassy in Berlin, the German Chamber of Commerce and Industry (DIHK) and the German Asia-Pacific Business Association (OAV) and held at the headquarters of the DIHK, President Disanayake reiterated that Sri Lanka will create a conductive and transparent investment climate and invited the business community to make use of opportunities presented by Sri Lanka’s development potential and strategic location.

At a meeting with key tourism industry associations in Germany focused on outbound tourism, President Disanayake explained the plans of the government to protect the sustainable nature of the tourism industry of Sri Lanka and to address constraints such as human resource development to ensure the continued growth of the vital industry. The President also addressed aspects related to investment in the tourism industry.

The President was accompanied to the meetings by the Minister of Foreign Affairs, Foreign Employment and Tourism Vijitha Herath; Sri Lanka’s Ambassador to Germany Varuni Muthukumarana; Director General for Europe and North America at the Ministry of Foreign Affairs, Foreign Employment and Tourism Sugeeshwara Gunaratna; Chairman of the Board of Investment Arjuna Herath; and other Senior Government officials.

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IMF’s Dr. Gita Gopinath arrives in SL

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Dr. Gita Gopinath, the First Deputy Managing Director (FDMD) of the International Monetary Fund (IMF), has arrived in Sri Lanka for a two-day official visit.

According to the Central Bank of Sri Lanka (CBSL), it is the first time since 2005 that a serving FDMD of the IMF has visited Sri Lanka.

During this visit, Dr. Gopinath will be the guest of honour at the conference on “Sri Lanka’s Road to Recovery: Debt and Governance”, co-hosted by the Ministry of Finance, Central Bank of Sri Lanka and the IMF, scheduled to be held tomorrow (June 16).

At the mid-point of the IMF-supported reform programme, the conference aims to reflect upon the lessons learnt from Sri Lanka’s experience in restoring macroeconomic stability, implementing debt restructuring and governance reforms, and to focus on the challenges ahead.

Dr. Gopinath is also expected to hold bilateral discussions with the Sri Lankan authorities and several key stakeholders on the IMF’s engagement with Sri Lanka.

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Gen Hamilton Wanasinghe’s funeral at Borella today

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General Hamilton Wanasinghe, a former Army Commander and Secretary to the Ministry of Defence, passed away on Friday (June 13) following a brief illness. He was receiving treatment at the Narahenpita Army Hospital at the time of his death.

His funeral, with full military honours, will be held at the new crematorium of the General Cemetery in Borella today (15) at 5.30 pm. The remains of the late senior officer were kept in Malwana from Friday (13) for the public to pay their final respects.

General Wanasinghe served in Sri Lanka’s armed forces for four decades and was appointed as the the country’s 11th Army Commander in 1988. He also held the posts of Joint Operations Commander (from November 19, 1991 to September 6, 1993, and Defence Secretary from September 1993 to February 1995).

He began his military journey in 1954, joining the Ceylon Army as an Officer Cadet. He received his basic training at the Royal Military Academy Sandhurst and was later commissioned as a Second Lieutenant in the Ceylon Artillery.

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