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Decisions taken by the Cabinet of Ministers at the meeting held on 05-11-2015 Featured

November 06, 2015

01. Financial Assistance from the Asian Development Bank for the implementation of Greater Colombo Water and Waste Water Management Improvement Programme – Tranche 3

 

The Colombo Water and Waste Water Management improvement programme is being implemented in three phases under financial facilities by the Asian Development Bank (ADB) and government funds. It intends to uplift the water supply efficiency in Greater Colombo. Total investment of the third phase of the project is US$ 168.46 million. US$ 40.46 million will be bared by the government. The Proposal made by Hon. Prime Minister Ranil Wickremesinghe, in his capacity as the Minister of National Policies and Economic Affairs to obtain the balance of US$ 128 million form the ADB as concessionary loan, was approved by the Cabinet of Ministers.

02. Gampaha, Attanagalle and Minuwangoda Integrated Water Supply Project

 

The proposal made by Hon. Rauf Hakeem, Minister of City Planning and Water Supply, to implement the above project with a cost of US$ 229.5 million and Rs. 3,910 million benefiting people in Gampaha, Attanagalle and Minuwangoda areas, was approved by the Cabinet of Ministers.

 

03. Amendment of the Fisheries (Regulating of Foreign Fishing Boats) Act No 59 of 1979

 

Regulating, controlling and management of fishing and related activities by foreign fisheries boats in the Sri Lankan waters is done according to the provisions made by Fisheries (Regulating of Foreign Fishing Boats) Act No 59 of 1979. However according to changes occurred in the field regionally and internationally a new act has to be introduced amending the relevant provisions. Accordingly, the proposal made by Hon. Mahinda Amaraweera, Minister of Fisheries and Aquatic Resources Development, to amend the Fisheries (Regulating of Foreign Fishing Boats) Act No 59 of 1979, was approved by the Cabinet of Ministers.

 

04. Domestic production of Smart Electric Meters and introducing to the Sri Lankan electricity field

 

The electricity field in Sri Lanka has gained a massive development in the recent past and has taken steps to give approximately a 100% coverage within the 24 hours continuously. World’s technology in the field is being rapidly developing and, by utilizing higher technological techniques in generation, distribution and usage, many benefits could be obtained for the national economy. In this case, introduction of Smart Electric Meters is a priority need. It helps in electricity demand management and enhance awareness in the consumer in self-control in electricity use. Accordingly, the proposal made by Hon. Ranjith Siyambalapitiya, Minister of Power and Renewable Energy, to commence a joint project of Ceylon Electricity Board and the University of Peradeniya for development and introduction of Smart Electric Meters to the domestic market with a cost of Rs. 49.2 million, was approved by the Cabinet of Ministers.

 

05. Implementation of the National Programme for Food Production 2016-2018

 

Cabinet approval has been granted to implement the above programme which is presented by HE the President on 14-10-2015 and the Ministry of Agriculture has prepared a national programme in fulfilling its objectives. It is proposed to implement the programme in two main aspects related to 14 fields essential for increase of food production and agricultural development. Accordingly, the proposal made by Hon. Duminda Dissanayake, Minister of Agriculture, to implement the programme in 2016-2018 and to obtain requires allocations, was approved by the Cabinet of Ministers.

 

06. Assignment of ownership of state lands on long term lease basis to the National Livestock Development Board (NLDB) which its farms are being established

 

The NLDB is currently operating 13 farms in state lands within the island for the development of the livestock field. The ownership of these lands are not hitherto assigned to the NLDB. The joint proposal made by Hon. P. Harrison, Minister of Rural Economic Affairs and Hon. M.K.A.D.S. Gunawardena, Minister of Lands, to assign the ownership of state lands on long term lease basis to the National Livestock Development Board (NLDB) which its farms are being established, was approved by the Cabinet of Ministers.

 

07. Awarding of contracts for the buildings constructed at the Universities of Kelaniya, Peradeniya and the Postgraduate Institute of Medicine

 

The proposal made by Hon. Lakshman Kiriella, Minister of University Education and Highways, to award the following contracts as per the recommendations made by the Cabinet Appointed Procurement Committees, was approved by the Cabinet of Ministers.

 

(i). Contract for the development of the Postgraduate Institute for Medicine – Rs. 1,412.4 million.

(ii). Contract for construction of a Building complex at the Department of Industrial Management in the Science Faculty of the University of Kelaniya for facilitating the introduction of new graduate courses in the Information and Communication Technology field – Rs. 430.1 million.

(iii). Contract for the development of the Faculty of Agriculture of the University of Peradeniya – Rs. 342.3 million.

 

08. Implementation of the University of Ruhuna Township Development Project



The government has planned to develop a University Township centralizing the University of Ruhuna situated in Wellamadama in close proximity to the Matara town. Under this project it has been planned to implement two subprojects for development of common facilities, Ocean Aquarium and a Freshwater Aquarium and related infrastructure at a cost of Rs. 2,512.8 million.

 

Following programmes are proposed to be implemented under the first subproject.

 

 Determination and declaring of boundaries of the University Township.
 Construction of an irrigation canal connecting the Kumbalgama Lake and the Dondra lagoon and construction of a walking track on one of its banks.
 Construction of a swimming pool and development of sports and recreation facilities within the University Township.

 

The proposal made by Hon. Lakshman Kiriella, Minister of University Education and Highways, to implement the first subproject of University of Ruhuna Township Development Project at a cost of Rs. 556.6 million, was approved by the Cabinet of Ministers.

 

09. Asian Development Bank assisted Greater Colombo Water and Waste Water Management Improvement Investment Programme – Ambathale Water Supply System Improvement and Energy Saving Project

 

The proposal made by Hon. Rauf Hakeem, Minister of City Planning and Water Supply, to award the contracts for laying of pipelines from Ambathale to Elli House Reservoir of a length of 9km under the above project as recommended by the Cabinet Appointed Standing Procurement Committee, was approved by the Cabinet of Ministers.

 

10. Supply of Official Uniforms and other clothing materials for Sri Lanka Police

 

The proposal made by Hon. Thilak Marapana, Minister of Law and Order and Prison Reforms, to obtain the requirement of clothing materials for the Sri Lanka Police for the year 2015 from local textile manufacturers as per the recommendations of the Local Textile Allocation Committee, was approved by the Cabinet of Ministers.

 

11. Green Power Development and Energy Efficiency Improvement Investment Programme – Construction of Kaluthara, Kesbewa and Old Anuradhapura Grid Substations and augmentation of New Anuradhapura Grid Substation

 

The proposal made by Hon. Ranjith Siyambalapitiya, Minister of Power and Renewable Energy, to award the above contract to the lowest bidder as recommended by the Cabinet Appointed Standing Procurement Committee, was approved by the Cabinet of Ministers.

 

12. Green Power Development and Energy Efficiency Improvement Investment Programme – Construction of Kappalthurai Grid Substation and augmentation of Kerawalapitiya, Trincomalee, and Katunayake Grid Substations

 

The proposal made by Hon. Ranjith Siyambalapitiya, Minister of Power and Renewable Energy, to award the above contract as recommended by the Cabinet Appointed Standing Procurement Committee, was approved by the Cabinet of Ministers.

 

13. Financial Assistance from the International Fund for Agricultural Development (IFAD) for the implementation of the Smallholder Tea and Rubber Revitalization (STARR) Programme

 

Above programme has been commenced by the government with the financial assistance from the IFAD. It intends to assist in improving the tea yields in 5,500 hectares in Matara, Galle, Ratnapura, Badulla and Kandy Districts. Moreover, it will assist in improving the Rubber yields in 3,000 hectares in Monaragala and Ampara Districts. The total investment of the project will be US$ 65.4 million and US$ 25.7 million will be granted by the IFAD. The proposal made by Hon. Prime Minister Ranil Wickremesinghe, in his capacity as the Minister of National Policies and Economic Affairs, to enter into an agreement with the IFAD on the above purpose was, approved by the Cabinet of Ministers.

 

14. Consider the Higher National Diploma in Accountancy (HNDA) as an alternative qualification to the B.Com degree


Students who have followed the HNDA course have faced difficulties in applying for public sector vacancies as the P.A. circular no. 46/90 issued in 1990 considering the HNDA course as an alternative qualification to B.Com degree was nullified by the P.A. circular no. 10/2014 in the last year. Disappointments have been occurred among those diploma holders as the demand from the private sector job opportunities have also been reduced taking this as a precedent.

 

As about 23,500 students from 142,000 students who qualify for University entrance are being admitted to state universities many of them who have followed the commerce stream tend to join the HNDA course annually. Considering the above fact the proposal made by Hon. Lakshman Kiriella, Minister of University Education and Highways, to re-enforce the P.A. circular 46/90 with effect from 23-04-2014, was approved by the Cabinet of Ministers.

 

15. Issuance of a stamp to commemorate the 60th year completion of Sri Lanka – Thailand diplomatic relationships

 

Diplomatic relations between Thailand and Sri Lanka completes their 60th anniversary in 2015. As per a proposal made by the Ministry of Foreign Affairs, the Postal Department of Sri Lanka and the Postal Institute of Thailand have taken steps to issue two stamps each to mark the above event. The stamp is issued based on Buddhism, a common theme for the both countries. The Postal Institute of Thailand has issued the stamp on 02 November 2015 in line with the official visit of the Sri Lankan President in Thailand and the Postal Department of Sri Lanka expects to issue the stamp on 20 November 2015. The proposal made by Hon. M.H.A. Haleem, Minister of Posts, Postal Services and Muslim Religious Affairs, to sign a Memorandum of Understanding between the two countries on the above purpose, was approved by the Cabinet of Ministers.

 

16. International Monetary Fund (IMF) / World Bank (WB) Annual Meeting held in Lima, Peru from 08th to 11th October 2015

 

Hon. Ravi Karunanayake, Minister of Finance, has informed the cabinet that a delegation presided by him had participated in the above annual meetings and had discussed on the Global Economic Foresight with especial attention on economic issues of developing countries. The Minister briefed that the main causes for issues faced by developing countries are the slow growth of production sector and political issues, and that the developing countries should apply suitable policies to face risks of financial instability, unemployment, and revenue anomalies etc.

 

Furthermore, the Minister of Finance has informed the Cabinet of Ministers that he has participated in many discussions Finance Ministers of various countries that play an important role in our foreign trade and with senior officials of the IMF.

 

17. Technical Cooperation Grant of Euro 7 million from the Government of Federal Republic of Germany

 

The Government of Federal Republic has agreed to provide technical cooperation grant of Euro 7 million for the implementation of three projects, i.e., the National Park and Buffer Zone Management in Wilpattu, Education for Social Cohesion, and SME Sector Development. The proposal made by Hon. Ravi Karunanayake, Minister of Finance, to sign exchange notes between the two countries on the above purpose, was approved by the Cabinet of Ministers.

 

18. Introduction of a New Protective Label (Sticker) for Liquor Varieties manufactures/imported in Sri Lanka 

 

As the government has imposed a large tax over liquor illegally bottled liquor seem to enter into the market. Under this circumstance many customers have tend to drink unhealthy liquor. Moreover, illegally imported liquor has effected on the governments revenue. Hence, the proposal made by Hon. Ravi Karunanayake, Minister of Finance prepare a programme to stick a sticker in each legally manufactured bottle of arrack under the supervision of the Department of Excise, and to stick the sticker for imported bottles of liquor before releasing from the customs, was approved by the Cabinet of Ministers.

 

19. Government intervention to stabilize the price at Colombo Tea Auction

 

According to crisis situations in Ceylon Tea importing countries from the commencement of the year 2015 it has recorded a low price in tea.

 

Although the production cost of a kilogram of tea is Rs. 450/- the auction recorded a price of Rs. 385.51. A programme to provide a certified price for tea was implemented with an expenditure of Rs. 6,000 million. In this context the government has to intervene in stabilizing the tea price as well as providing subsidies.

 

In 2008 the government has controlled the reducing of tea price by purchasing tea from auction. Based on that experience, the proposal made by Hon. Naveen Dissanayake, Minister of Plantation Industries, to allocate required funds to purchase 1km of quality tea for Rs. 430/- from the auction by the Sri Lanka Tea Board, was approved by the Cabinet of Ministers. The government will suspend purchasing once the price reaches the limit of Rs. 450/-.