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    Cabinet Decisions - 16.01.2023

    January 17, 2023

    Decisions Taken by the Cabinet of Ministers on 16.01.2023

     

    1. Establishment of the International Trade Office


    The Cabinet has approved the establishment of the International Trade Office on 03.10.2022. It is
    Planned to establish this office under the Ministry of Finance, Economic Stabilization and National
    Policy and then to amalgamate with the Ministry of Foreign Affairs. Accordingly, the approval of
    the Cabinet was given for the proposal presented by the Hon. President to instruct the legal
    draftsman to prepare the International Trade Office Bill based on the preliminary draft already
    prepared.


    2. Memorandum of Understanding between Center for Atmospheric and Oceanographic
    Sciences affiliated to Indian Institute of Science and the National Aquatic Resources Research
    and Development Agency.


    It has been proposed to enter into an MOU between the Center for Atmospheric and Oceanographic
    Sciences affiliated to Indian Institute of Science and the National Aquatic Resources Research and
    Development Agency on mutually agreeable tasks such as research exchange programs, capacity
    building of Sri Lankan scientists for ocean-related disaster forecasting and oceanographic
    forecasting training. The draft agreement prepared for this purpose has received the clearance of the
    Attorney General and the concurrence of the Ministry of Foreign Affairs. Accordingly, the Cabinet
    of Ministers approved the proposal presented by the Minister of Fisheries to sign the proposed
    Memorandum of Understanding.


    3. Provision of a plot of land in the Hambantota for the Ceylon Electricity Board on lease basis


    The Cabinet of Ministers approved the joint proposal presented by the Minister of Urban
    Development and Housing and Minister of Power and Energy to hand over a 3 Acre 1 Rood 10.65
    Perch land at Keliyapura, Hambantota, assigned to the Urban Development Authority under Section
    6(1) of the Government Land Ordinance, to the Ceylon Electricity Board for use as a yard for
    storing electricity poles for a period of 30 years on lease basis.


    4. Host State Agreement between the Government of Sri Lanka and the Global Green Growth
    Institute


    The Global Green Growth Institute was established in 2012 as an intergovernmental organization
    with the agreement of the participating states at the United Nations Rio +20 Conference. The
    purpose of establishing the institution is to promote green growth strategies in developing countries
    and to prepare and support green growth plans with the participation of stakeholders. The institute
    works on the main themes of renewable energy, green cities and sustainable landscapes. The
    Cabinet of Ministers approved the proposal presented by the Minister of Environment to sign the
    respective agreement accordingly.

     

    5. Tax Concession for World Bank Funded Interconnection and Development Project.


    The Interconnection and Development Project is being implemented to empower identified
    communities in selected districts of Sri Lanka with the aim of providing safe, efficient and climate
    resilient connectivity and strengthening the agricultural supply chain. Under the project, it is
    planned to develop 3000 km of rural roads throughout the island in the first phase. Considering the
    current economic situation, it is recognized that exemption from taxes related to the project is
    desirable. So that, the foreign currency component under the project can be totally utilized for the
    project activities. Accordingly, the Cabinet of Ministers approved the proposal presented by the
    Minister of Transport and Highways for the Minister of Finance, Economic Stabilization and
    National Policies to proclaim this project as qualified for tax exemption.


    6. Amending the name of Sri Lanka Institute of Taxation as Sri Lanka Chartered Taxation
    Institute.


    The Sri Lanka Taxation Office was established by the Sri Lanka Institute of Taxation
    (Incorporation) (Amendment) Act No. 21 of 2000. The institute, which provides tax education to
    the public by conducting courses, grants membership to professionals related to taxation by
    empowering them to act as tax consultants, authorized representatives and authorized agents under
    the Inland Revenue Act No. 24 of 2017. Member of Parliament Hon. Madhura Withana has
    submitted a private member's bill to Parliament to change the name of the institution as the Sri
    Lanka Chartered Taxation Institute. Accordingly the Cabinet of Ministers approved the proposal
    presented by the Hon. President in his capacity as the Minister of Finance, Economic Stabilization
    and National Policies to submit a report to Parliament recommending the relevant Bill as per the
    provisions of Parliamentary Standing Orders 52(6).


    7. Civil Aviation (Charges for Use of Aviation Shipyard) Regulations.


    The section 117(2) (q) of the Civil Aviation Act No.14 of 2010 vests the Minister in charge with the
    power to determine the fees and charges that may be levied by the Civil Aviation Authority of Sri
    Lanka Aviation Shipyard. The fees charged for the use of Aviation Shipyard at the airports have
    been revised and the relevant orders have been published through the Gazette Notification dated
    26.10.2022. By gazette notification dated 02.11.2022, the orders have also been applied to Jaffna
    International Airport. Accordingly, the Cabinet of Ministers approved the proposal of the Minister
    of Ports, Shipping and Aviation to table those orders in the Parliament.


    8. Truth and Reconciliation Mechanism.


    Requirement of an independent local mechanism to search for the truth as a meaningful way to
    bring forward the peace achieved after ending the conflicts sustained for 30 years and to secure it is
    apparent. Sri Lanka has established several independent investigation commissions for seeking
    reconciliation after the conflicts. Accomplishment all the recommendations of those commissions is
    vital. Accordingly, the Cabinet of Ministers approved the consolidated resolution furnished by the
    Hon. President, Hon. Prime Minister, Minister of Fisheries, Minister of Education, Minister of
    Justice, Prison Affairs and Constitutional Reforms, Minister of Urban Development and Housing

    and the Minister of Foreign Affairs in order to take necessary actions to implement the concept of
    truth and reconciliation mechanism.


    9. Establishment of the proposed agency for export and investment promotion.


    The Proposal for establishment of one entity for investment and export promotion with a an
    integrated approach in a coherent manner with one another has been presented by the budget
    proposals 2023. Accordingly the Cabinet of Ministers approved the resolution furnished by the
    Hon. President for appointing a supervisory committee to manage and guide the activities for the
    establishment of the said agency.


    10. Government programme to purchase paddy for the Maha season 2022/23.


    The data of both the Department of Agriculture and the Department of Agrarian Services, predict of
    a surplus of harvest of paddy during the Maha season of 2022/23. Accordingly, of the necessity of
    mediation of the Government to purchase a certain portion of paddy apart from the traditional
    method of paddy purchase in order to protect both the paddy farmer as well as the consumer has
    been identified It has been planned to implement the proposed paddy purchase programme to
    enable providing additional relief for maintaining the living standard of the low income earners
    identified under the prevailing economic circumstances. Accordingly, the Cabinet of Ministers
    approved the proposal furnished by the Hon. President to implement the government paddy
    purchase programme for Maha season 2022/23 by District Secretaries and Divisional Secretaries
    with the participation of small and medium scale paddy mills owners so that the production can be
    provided for a period of two (02) months with 10 kilograms of rice per month for one family
    covering two million (02) families identified.


    11. Payment of Government employee salaries.


    Implementation of new revenue proposals of the government is now under way for the year 2023,
    and since a considerable time would be needed for collecting income generating from that,
    government expenditure has to be managed for the next few months from January to cater to the
    government financial flow. Accordingly, the Hon. President as the Minister of Finance, Economic
    Stabilization and National Policies brought to the attention of the Cabinet of Ministers regarding the
    steps taken by the General Treasury to pay the monthly salaries of the non – executive officers on
    the due day whereas to pay the monthly salaries of executive officers after some days from the
    exact salary date to which their concurrence was granted.


    12. Freezing 6% of the recurrent expenditure from the government expenditure estimations
    approved for the year 2023.


    It was decided to suspend 5% of the recurrent expenditure in the government expenditure
    estimations for the year 2023 at the meeting of the Cabinet of Ministers held on 09.01.2023 so that
    sufficient financial provisions can be ensured for the control of government expenditure within the
    existing limited financial space as well as the finances for essential and priority activities. The
    expected actions to be taken by the General Treasury for implementing those decisions were
    submitted to the Cabinet of Ministers by the Hon. President as the Minister of Finance, Economic
    Stabilization and National Policies. Accordingly, the Cabinet of Ministers decided to with hold 6%
    from the recurrent provisions in approved government expenditure estimations instead of 5% from

    the recurrent expenditure decided at the discussion and allocate a portion equal to 1% of that to the
    Ministry of Health as additional provisions for purchase for essential pharmaceutical drugs.


    13. Providing relief for low income families.


    Attention of the Government has been drawn to introduce a new accelerated welfare benefit
    payment scheme and a survey to identify beneficiaries for this utilizing new qualification and
    criteria has been launched and implemented island wide by now. Relevant allocations have been
    made by the budget 2023 to provide financial relief within the first four months of the year 2023 in
    order to circumvent hardships likely to be faced by vulnerable families as a results of the current
    extreme economic circumstances. The Cabinet of Ministers has approved the resolution submitted
    by the Hon. President as the Minister of Finance, Economic Stabilization and National Policies to
    furnish allocations required for extending the period for providing the financial assistance proposed
    by the budget 2023 for the Samurdhi beneficiaries and other vulnerable groups in the society for
    another five months (05) from the month of May to September 2023 until the proposed new
    welfare benefit payment scheme is inaugurated upon completion of the ongoing survey,

    Last modified on Tuesday, 17 January 2023 15:50

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