The Government has taken measures to grant free-hold ownership of lands for the plantation families, Cabinet Spokesman, Transport, Highways and Mass Media Minister Dr. Bandula Gunawardhana said. He was speaking at the weekly Cabinet media briefing held yesterday at the Government Information Department.

Accordingly, the Cabinet of Ministers has granted its consent to the joint proposal forwarded by President Ranil Wickremesinghe and Water Supply and Estate Infrastructure Facilities Development to grant free – hold deeds with immediate effect for the same lands of plantation families that are residing at present.

In order to secure free-hold land rights to the estate community, the President in his capacity as the Minister of Finance, Economic Stabilization and National Policies submitted a proposal under the theme “Awarding land rights to the estate community” by the budget proposals of 2024.

In order to realize this objective, a programme has been planned to be implemented by the Ministry of Water Supply and Estate Infrastructure Facilities Development along with the New Village Development Authority for the estate zone with the assistance of non – Cabinet Ministry of State Plantation Entrepreneurship Rehabilitation.

Under the programme, 4,151 families living in the estates belonging to regional estate companies and State owned estate companies have been identified.

Submission of gazette notifications  to Parliament for approval

The Cabinet approved the proposal submitted by the President in his capacity as the Minister of Finance, Economic Stabilization and National Policies to submit to Parliament for the approval of the terms / orders / regulations, published under the following Acts and the relevant Gazette Notifications.

* Order issued under Excise (Special Provisions) Act, No.13 of 1989 published by Extraordinary Gazette No. 2364/36 dated 31.12.2023

* Order issued under Ports and Airports Development Levy Act, No. 18 of 2011 published by Extraordinary Gazette No. 2364/37 dated 31.12.2023

* Orders issued under the Finance Act No. 25 of 2003, published by Extraordinary Gazettes No. 2369/27 and No. 2374/19 dated 01.02.2024 and 06.03.2024 respectively.

* Notification issued under Finance Act No. 35 of 2018 (Luxury Tax on Motor Vehicles) published by Extraordinary Gazette No. 2368/24 dated 24.01.2024

* Regulations issued under Securities and Exchange Commission of Sri Lanka Act No. 19 of 2021 published by Extraordinary Gazette No. 2366/34 dated 12.01.2024

* Excise Notification No. 03/2023 issued under Excise Ordinance published by Extraordinary Gazette No. 2361/44 dated 08.12.2023

* Excise Notification No. 04/2023 issued under Excise Ordinance published by Extraordinary Gazette No. 2364/35 dated 31.12.2023

* Terms issued under the Casino Business (Regulation) Act No. 17 of 2010, published by Extraordinary Gazettes No. 2366/33 and No. 2369/42 dated 12.01.2024 and 02.02.2024 respectively.

Submission of rules published in gazette notification needs approval of Parliament

It is necessary to obtain the concurrence of the Parliament for the rules published in the gazette notification within the prescribed time frame mentioned in the relevant act for empowering the amendments to special commodities tax imposed when importing certain selected good categories under the Special Commodity Act No. 48 of 2007. Accordingly, the Cabinet approved the resolution submitted by the President in his capacity as the Minister of Finance, Economic Stabilization and National Policies to forward the rules published in the extraordinary gazette notifications mentioned below under the Special Commodity Act No. 48 of 2007 for the concurrence of the Parliament.

* Extraordinary gazette notification No. 2360/52 dated 30.11.2023

Cabinet approves signing of MoU between Ocean University SL and Notre Dame
University in USA

It has been proposed to enter into a Memorandum of Understanding (MoU), between Ocean University of Sri Lanka and Notre Dame University in the United States of America valid for a period of 5 years from

2024-2028 for implementation of a research project on Ocean and Atmospheric Science in the Bay of Bengal. The project is expected to facilitate the development of academic, research, undergraduate and postgraduate students’ skills in other National Universities and higher education institutions including the Ocean University of Sri Lanka.

The total cost of the project is USD 62,000 out of which USD 60,000 has been agreed to be given as a grant by the Notre Dame University and Washington University in the United States of America. Following which, the Cabinet approved the proposal presented by the Minister of Education to sign the MoU between Ocean University of Sri Lanka and Notre Dame University in the United States of America for the implementation of this project.

Setting up of lab for energy efficiency testing of ACs in Sri Lanka

The South Korean government has agreed to provide support under the Greenhouse Gas Emission Reduction Project to establish a laboratory in Sri Lanka for testing the energy efficiency of air conditioners. The project is financed through the Korea Energy Agency and the installation of the laboratory and necessary training of human resources in this project is scheduled to be completed during the year 2024. The agreement of the Department of Foreign Resources, the Ministry of Foreign Affairs and the Attorney General’s Department has been received for the memorandum and referrals to be signed by the Government of South Korea and the Government of Sri Lanka expressing their agreement for the implementation of the proposed project.

As such, the Cabinet approved the proposal presented by the Minister of Power and Energy to sign the MoU and referrals between the two countries so that the proposed project can be implemented.

Establishing facility for radio active based cyclotron pharmaceuticals on basis of BOO gets Cabinet nod

Approval of the Cabinet has been granted at their meeting held on 29.03.2021 to implement a cyclotron based radioactive pharmaceuticals in Sri Lanka with the loan and grants from local banks.

Accordingly, on the basis of Building, Ownership and Operating (BOO), EOI has been called and five (05) resolutions in this regard have been received. The Cabinet approved the proposal furnished by the Electricity and Power Minister to award the related contract to M/s Access International (Pvt.) Ltd that has furnished the resolution with all required technical requirements based on the recommendations of the project committee and the Cabinet appointed negotiation committee.

Permits for Black Gram imports gets Cabinet nod

Sri Lanka’s annual Black Gram requirement is Around 20,000 MT. Due to the fact that the harvest reaches the market only during a certain period, there is a shortage of Black Gram in the market during the festive season of April and December every year. Therefore, measures should be taken to prevent the shortage of Black Gram in the market during the upcoming festival season and to control the increase in the price of Black Gram.

As such, the Cabinet approved the proposal presented by the Minister of Agriculture and Plantation Industries to lift the temporary ban on the importing of Black Gram and to import 2,000 metric tons of Black Gram only through the State Trading (General) Corporation, the National Food Promotion Board and the Hadabima Authority of Sri Lanka subject to the Special Commodity Tax imposed by the Special Commodities Act No. 48 of 2007.

Cabinet nods for Sports Minister’s proposal seeking annual gazetting of Anti-Doping (Prohibited List)

According to the provisions of the Convention against Doping in Sport Act, No. 33 of 2013, the list of prohibited substances should be published in the Gazette annually.

Since it has been reported that doping is given to athletes as well as animals used in sports, a list of doping substances has also been published for horse sports and horse racing from this year.

Following which, the Cabinet approved the proposal presented by the Minister of Sports and Youth Affairs to submit to Parliament for approval the Anti-Doping (Prohibited List) Regulations No.09 of 2023 published under the provisions of Convention Against Doping in Sport Act No. 33 of 2013, in the Extraordinary Gazette Notification No.2373/14 dated February 27, 2024.

Fulfilment of National commitments consistent with the Kigali Amendment to Montreal Protocol on gradual phase out of Hydro-fluorocarbon importation and consumption of it being mindful of not having any adverse effects in the process.

In 2018, Sri Lanka ratified the Kigali Amendment of the Montreal Protocol on the phase down of Hydro-fluorocarbon. As a result, Sri Lanka is legally bound to restrict the import, export, trade and consumption of Hydro-fluorocarbon on a phased basis from January 01, 2024. 

As such, the Cabinet approved the proposal presented by the President in his capacity as the Minister of Environment to adhere the legal obligation of the National obligations related to the Kigali Amendment of the Montreal Alliance by limiting the importation and consumption of pure Hydro-fluorocarbon and products containing Hydro-fluorocarbon to Sri Lanka on a phasing out basis and by implementing the Hydro-fluorocarbon import trade under an annual import quota system so that the hydro-fluorocarbon consuming sectors such as agriculture, fishing, health, tourism, transport, industry, housing, and construction do not have adverse effects.

Establishment of an inter-Ministerial tourism committee

It is recognised that the current revival of Sri Lanka’s tourism industry will play an important role in the country’s economic recovery and growth.

Therefore, many measures have been proposed in the 2024 budget, including the implementation of a long-term programme to promote the tourism sector and bring at least five million tourists annually.

Due to the multifaceted nature of the tourism industry and its various assets, laws and responsibilities are divided among several government agencies, it is essential to maintain efficient coordination and cooperation among the relevant agencies to achieve the desired benefits.

As such, the Cabinet approved the proposal presented by the President to establish an inter-ministerial tourism committee chaired by the Secretary to the President and with representatives from relevant government agencies.

MoU between DSRSL and Govt. of Hungary on Sports and Sport Education

It has been proposed to sign a Memorandum of Understanding (MoU) between the Democratic Socialist Republic of Sri Lanka (DSRSL) and the Republic of Hungary in order to develop and strengthen cooperation between the two sides by promoting the fields of sports and sports education. The draft MoU has received the Attorney General’s clearance and as such, the Cabinet approved the proposal presented by the Minister of Sports and Youth Affairs to obtain the relevant signatures.

Creating a million young entrepreneurs under the ‘Urumaya’ programme

An islandwide programme to gather information about young entrepreneurs covering the entire island obtaining information related to grant of freehold ownership and creating a million young entrepreneurs under the ‘Urumaya’ programme. Almost two million families in the country have been given grants/permits for the land they occupy. Under the Urumaya programme, it is planned to give the absolute right of the government lands to the grantees and permit holders in the year 2024. It is also planned to implement a programme to create one million young entrepreneurs in the entire island. The information required to implement these two programmes is expected to be gathered by deploying the youth force of the National Youth Service Council covering all 14,022 Grama Niladhari Divisions in the island with the support of the Grama Niladhari in the respective divisions. In accordance, the Cabinet approved the proposal presented by the Minister of Tourism and Lands to implement the Urumaya programme and the programme to create a million young entrepreneurs by collecting the necessary information through the existing mechanisms at the divisional secretariat level.

Revision of Sri Lanka Foundation Act No: 31 of 1973

The Sri Lanka Foundation, established under the Sri Lanka Foundation Act No. 31 of 1973, acts as a centre for training and awareness services on subjects related to sustainable development, social integration, socioeconomic development, good governance, entrepreneurship and democracy. At present, the Sri Lanka Foundation runs various courses ranging from Certificate courses to Advanced National Diplomas. However, there is a need to revise not only the goals and objectives of the foundation but also the powers and functions to suit the current needs. Consequently, the Cabinet approved the proposal presented by the Media Minister to amend the Sri Lanka Foundation Act providing scope for the Act to perform accordingly.

Amendments to the Primary Courts Procedure Act

In a dispute affecting land, it is the function of a Civil Court to determine or give a final decision as to title or possession, and until then only preventive or remedial action is taken by a Primary Court. Inevitable delays occur here since the order entered by the Primary Court remains in effect pending a final decision by a District Court in determining rights, and since District Court decisions are subject to two appeals. That situation enables a trespasser or even a squatter to retain possession of the land for a considerable period of time. As such, the Cabinet approved the proposal presented by the Justice, Prison Affairs and Constitutional Reforms Minister to instruct the Legal Draftsman to prepare a Bill to amend the Primary Court Procedure Act so as to achieve the desired objectives section 66 of the Primary Court Procedure Act No. 44 of 1979 as amended by Act No. 49 of 1980 in a more effective manner.

Provision of fertilizer subsidy to farmers for Yala season

As estimated by the National Fertilizer Secretariat, the chemical fertilizers urea, TSP and MOP, respectively, MT 110298.1, MT 27711.1 and MT. 33412.4 each is required for paddy cultivation in 2024 season. Accordingly, taking into consideration the proposals presented by the Agriculture and Plantation Industries Minister, the Cabinet decided as follows.

To import fertilizer through Ceylon Fertilizer Company Limited and Colombo Commercial Fertilizer Company Limited for the 2024 ‘Yala’ season, and sell fertilizer to farmers at concessional prices competitively with the private sector. Provision of a Rs. 15,000 subsidy per hectare for a maximum of twoú hectares cultivated by a farmer during the 2024 Yala season through the Department of Agricultural Development, directly crediting of relevant subsidy to farmers’ bank accounts.

Acceleration of stalled rural development programmes

Due to the economic crisis of the last few years, many development projects that had been commenced at the rural level had to be suspended.

However, since the government has already made significant investment in those projects, those projects should be completed immediately and the expected benefits should be given to the rural people. It has been revealed that the amount of allocation allocated under the decentralized budget programme is not sufficient to continue the implementation of the rural development programmes that have already been suspended midway in the respective areas.

Hence, the Cabinet approved the proposal presented by the President to provide another Rs. 2,000 million allocation under the decentralized budget programme for the re-implementation of the development projects that had to be stopped midway at the rural level, and to increase the allocation for special development initiatives implemented under the supervision of the President’s Office by another 1,000 million rupees.

Rooftop Solar Power Generation Projects for Religious Places

Awarding procurement for the implementation of the Rooftop Solar Power Generation Projects for Religious Places under the funds provided by the Government of India.

On January 08, 2024, the Cabinet had approved the implementation of the Rooftop Solar Power Generation Projects in religious places subject to a limit of 17 million US dollars under the loan facility of 1,000 million US dollars provided by the State Bank of India.

In effect, bids have been invited to select a suitable institution for the implementation of the project, and six bids have so far been received. Considering the recommendations made by the Procurement Appellate Board regarding the recommendation made by the Technical Appraisal Committee and the Standing Procurement Committee appointed by the Cabinet, the Cabinet approved the proposal presented by the Minister of Power and Energy to award the procurement for the implementation of Rooftop Solar Power Generation Project to M/s Premier Energies Ltd., for a contract price of US$ 17 million.

Relief to low income families gets Cabinet nod

In the first half of 2023, the government has taken steps to provide ten kilos of Nadu rice per family for a period of two months covering 2.74 million families in the 25 districts, including Samurdhi beneficiaries.

In order to help maintain the nutritional level of the identified low-income earners, it has been found that it is advisable to implement the same programme this year as well. Following which, the Cabinet approved the proposal presented by the President to provide 10 kgs of rice per family per month for a period of two months covering about 2.74 million low-income families identified through district secretaries/Government Agents by involving small and medium scale mill owners.

The Chief Guest was Fisheries Minister Douglas Devananda. Among the other notable attendees included Director of the Anti-Leprosy Campaign Dr. Prasad Ranaweera and legendary cricketer Muttiah Muralitharan’s father Sinnasamy Muttiah.

Lake House Chairman Prof. Harendra Kariyawasam and the Board of directors and Thinakaran paper and Lake House Staff attended.

Also, students who excelled in an essay competition conducted by the paper also were given awards. Several veteran journalists who contributed to the success of the paper over the years too were felicitated.

The Thinakaran paper was first published in 1932. It was started by founder of the Lake House the late D. R. Wijewardene with an objective of instilling the desire for freedom in the minds of Tamil speaking community from the colonial rulers.

Thinakaran acted as a platform for the development of Tamil literature in Sri Lanka. Thinakaran, Sri Lanka’s premier Tamil language National newspaper with a tradition of more than nine decades, has successfully overcome many risks and hurdles in its history of 92 years.

“The Opposition Leader should understand that the country cannot be developed without the support of International organizations including the IMF and WB, the Minister said.

He said that the government in power is bound to implement the Extended Fund Facility Agreement of the IMF irrespective of the person in the leadership.

The Minister said that the government has entered into agreements with IMF and World Bank and any government that comes into power should comply with the terms of these agreements.

The Minister was speaking at a meeting held at the Ministry Premises yesterday to discuss on the organization of Colombo International Film Festival which is scheduled to be held this year.

He said that a person who has not done a thorough study of these agreements, cannot run a government in the country. “Such individuals cannot build the country nor can they identify the issues faced by the country”, he said.

The Minister added that Sri Lanka faced unprecedented economic recession in 2022. “The country could not pay back loans obtained from local financial sources and the foreign reserves depleted to zero level. He added that government succeeded in reaching an agreement with the IMF securing US$ 3 billion to Sri Lanka within 48 months.

“The country has already received two tranches of this loan and discussions are going on to secure the third tranche,” he said.

Numerous rounds of negotiations spanning a year were conducted to avert what could potentially be the worst economic catastrophe in Sri Lanka’s post-independence history. Consequently, an Extended Fund Facility was agreed with the IMF in late March 2023. This agreement stipulated fulfilling various pre- and post-conditions, demonstrating their efficacy to the global community, thereby securing the second tranche of the IMF loan.

Following the receipt of the second tranche, President Ranil Wickremesinghe, in his capacity as National Policy and Finance Minister invited Opposition Leader Sajith Premadasa and other responsible opposition party leaders to partake in discussions with IMF officials regarding the subsequent tranche. Notably, President Wickremesinghe emphasised this appeal, particularly to opposition leaders, given their claim to be able to modify the agreement as per their requirements. Hence, a prime opportunity has arisen to present alternative proposals to IMF officials, and accountable leaders must contribute meaningfully to these deliberations.

The primary objective of the signed IMF Agreement entails a forty-eight-month program aimed at reforming Sri Lanka’s public financial management processes, particularly concerning debt sustainability. This program is intended to support the state budget and bolster foreign reserves. As per the agreement, maintaining a surplus in the public budget’s primary account is essential to ensure debt sustainability. Accordingly, the budget deficit should be capped at five per cent or lower of the gross domestic product.

By 2032, the total outstanding foreign debt must be reduced to 95% or less of the gross domestic product. The central government’s annual gross financial requirement from 2022 to 2027 should amount to 13% of the average gross domestic product, decreasing to 4.5% from 2027 to 2032. To achieve these targets, foreign debt restructuring programs have been formulated to repay outstanding loans from 2028 onwards. These restructuring programs necessitate the repayment of 37% of the debt stock within the next five to six years, followed by gradual repayment over subsequent years. Failure to adhere to these obligations could jeopardise international agreements and exacerbate the balance of payments crisis, leading to severe repercussions such as shortages of essential goods and transportation disruptions.

Finance Committee Chairman Dr. Harsha de Silva underscores the seriousness of the situation, emphasising that it transcends mere political concerns and demands a rigorous, scientifically informed approach.

However, Opposition Leader Sajith Premadasa and his supporters lack the requisite comprehension of these complex economic issues, opting instead for populist rhetoric. Yet, navigating the current economic crisis requires astute and visionary leadership grounded in reality.

A table detailing the foreign financial gap from 2022 to 2027 accompanies this article, providing further insights into the prevailing economic challenges.