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    Cabinet Decisions 27.03.2023 Featured

    March 28, 2023

    Decisions taken by the Cabinet of Ministers on 27.03.2023

    1. Entering into a Memorandum of Understanding to implement Korea's Saemaul Undong
    Program in Sri Lanka


    The Saemaul Undong Program implemented by the Republic of Korea since 1970 has helped
    transforming the traditional agrarian economy in rural Korea into an industrialized, export-oriented
    economy by improving infrastructure, livelihoods, welfare and education. In 2013, the Republic of
    Korea established the Saemaul Foundation with the aim of spreading the Saemaul concept to other
    countries. In 2015, the Sabaragamuwa Provincial Council entered into a Memorandum of
    Understanding with the Saemaul Foundation and started the Saemaul Program in Sri Lanka. By now,
    the MoU has expired and it has been proposed to sign a new Memorandum of Understanding so that all
    provinces of Sri Lanka can be covered by the respective project. Accordingly, the Prime Minister's
    proposal in his capacity as the Minister of Public Administration, Home Affairs, Provincial Councils
    and Local Government to sign a tripartite Memorandum of Understanding between the Ministry of
    Public Administration, Department of Issued Home Affairs, Provincial Councils and Local
    Government , the Department and the Foundation was approved by the Cabinet of Ministers.

     

    2. Upgrading the existing Siddha Medicine Units as Faculties of Jaffna University and Trincomalee
    Campus of Eastern University.


    On 2023.02.06, the Cabinet of Ministers tabled the proposal regarding the upgrading of the existing
    Siddha Medicine Units to Faculties in Jaffna University and Trincomalee Campus of Eastern
    University. was decided to get a report from the University Grants Commission as to whether there are
    sufficient academic and staff facilities for this purpose. The Minister of Education has explained that
    the report of the University Grants Commission has confirmed that there are sufficient human and
    physical resources to convert the said Siddha Medical Units into Faculties. Taking those facts into
    account, the Cabinet of Ministers approved the necessary steps to be taken for upgrading the relevant
    Siddha Medicine units to faculties in those universities.


    3. Facilitating students to pursue degree courses in non State higher educational institutions under
    the Interest-free Student Loan Scheme.


    Cabinet approval was given on 04.04.2017 for the implementation of a project to provide interest-free
    loan facilities to students those who do not have sufficient cut-off marks for admission to state
    universities to pursue degree courses in Non State degree awarding recognized institutions. Five groups
    of students have benefited under the program and the students who are eligible for the sixth group have
    also been identified by now. Accordingly the Cabinet of Ministers approved the proposal presented by
    the Minister of Education to continue the interest-free student loan scheme following the existing
    method and to facilitate 5000 students in the 7 th group under it.

     

    4. Conversion of National Institute of Business Management into a Company Limited by
    Guarantee


    The National Institute of Business Management (NIBM) was established under the provisions of
    National Institute of Business Management Law No. 23 of 1976 and the National School of Business
    Management (NSBM) was established as a company controlled by the Institute. The institute has now
    been established in Homagama area as a modern university that offers undergraduate and
    postgraduate degrees. Currently, more than 11500 students are studying in this institution, which has
    more than 50 degree courses under 5 faculties. It has been found that if a structure similar to the
    structures of the leading educational institutions in the world is adopted for this institution, it will be
    able to carry out the operations of the institute in a more effective manner in accordance with
    international standards. Accordingly the Cabinet of Ministers Approved the Proposal presented by the
    Minister of Education to take necessary steps to change the registration of the institution into a
    company limited by guarantee in accordance with the provisions of Section 32 of the Companies Act
    No.07 of 2007 so that necessary changes can be made.


    5. Establishment of Road Maintenance Fund


    In the 2023 budget, the President proposed to establish a fund for road maintenance and provide an
    initial allocation of 100 million rupees for it. The Ministry of Transport and Highways has been
    assigned the responsibility of preparing an appropriate system for establishing and maintaining the
    fund. Taking into consideration a proposal presented by the Minister Transport and Highways, the
    Cabinet of Ministers approved the establishment of the proposed fund through an Act of Parliament.


    6. Development of Sigiriya as a sustainable tourism destination


    Sigiriya, which is considered as not only an important archaeological site in Sri Lanka but also a world
    heritage, is a tourist destination with a high level of local and foreign tourist attractions. Considering
    recognized as this background the Cabinet of Ministers approved the combined proposal presented by
    the Minister of Tourism and Lands and the Minister of Buddhasashana, Cultural and Religious Affairs
    to prepare a Master Plan to develop Sigiriya as a sustainable tourist destination with the contribution of
    all relevant parties.


    7. Hosting the Fifth Session of the Forum of Environment Ministers and Authorities of Asia Pacific


    The fifth session of the Forum of Ministers and Environment Authorities of Asia Pacific is planned to
    be held in Sri Lanka in the fourth quarter of 2023 to provide ideas and proposals on the regional
    environmental agenda at the Sixth session of the United Nations Environment Assembly scheduled to
    be held in Nairobi, Kenya in February 2024. Accordingly the Cabinet of Ministers approved the
    proposal presented by the Minister of Environment to host the fifth session of the Forum.


    8. Procedure related to Areca Nut (Karunka) processing industry


    Proposals related to export of locally processed Areca Nut (Karunka) and import of Areca Nut
    (Karunka) and re-export with added value were discussed by the Cabinet of Ministers on 13.03.2023.
    An official committee headed by the President's Senior Economic Adviser was appointed to study the
    facts and submit a report with recommendations. The Cabinet of Ministers approved the procedure for
    exporting locally processed Areca Nut (Karunka) and the procedure for importing Areca Nut (Karunka)
    for value added re-export as recommended by the said committee.

     

    9. Amendment of Section 6(3)(e) of the Civil Aviation Act No. 14 of 2010


    It has been recognized that opening up of the aviation and navigation services sectors for public private
    partnership and investment in these sectors by private terms will help in the rapid development of the
    respective sectors and the improvement of the aviation industry as a whole. Accordingly, the Cabinet of
    Ministers approved the proposal made by the Minister of Shipping and Aviation to advise the legal
    draftsman to draft bill to amend the Civil Aviation Act No. 14 of 2010 enabling to appoint one or
    more persons as service providers for the provision of air navigation services in order to provide space
    for that.

     

    10. Obtain approval for the establishment of Quality Assurance and Accreditation Council


    Cabinet approval was granted on 02.04.2019 to gazette the Higher Education (Quality Assurance and
    Accreditation) Bill and submit it to the Parliament. After studying some of the amendments proposed
    by the Attorney General to be presented at the committee stage of the said bill and the observations and
    suggestions presented by the various parties, it has been recognized that it is appropriate to further
    amend the Higher Education (Quality Assurance and Accreditation ) Bill drafted by the Legal
    Draftsman by including new provisions. Accordingly , the Cabinet of Ministers approved the proposal
    presented by the Minister of Education to instruct the Legal Draftsman to prepare a new bill.

     

    11. Incorporation of the Sri Lanka Institute of Agriculture


    For the agricultural development of Sri Lanka, it is essential to implement an integrated approach in
    various fields such as food crops, plantation crops, export crops, animal products, flowers and
    ornamental plants, environment and forest conservation and farming development. For that, it has been
    observed that it is appropriate to establish a structure to technically bring together agricultural
    professionals with high skills in the relevant subjects under various institutions. Accordingly, the the
    Cabinet of Ministers approved the proposal presented by the Minister of Agriculture to incorporate the
    Sri Lanka Institute of Agriculture, which currently has more than 1000 agricultural professionals as
    members, and to instruct the Legal Draftsman to prepare the bill for the same, so that the quality of
    service and ethics of the agricultural professionals can be widely, efficiently and effectively ensured.

     

    12. Delimitation of Deputy Inspector General of Police (DIG) Divisions


    In the policy statement presented at the beginning of the 4th session of the 9th Parliament Hon.
    President pointed out the need to determine the boundaries of the Deputy Inspector General of Police
    Divisions according to the provinces to avoid practical difficulties and issues in administration due to
    the non-appreciation of the existing Deputy Police Divisional boundaries with the current provincial
    boundaries. Accordingly, the Cabinet of Ministers agreed on the measures taken by the Honorable
    President to appoint a Committee of officers under the chairmanship of the Secretary to the Ministry of
    Public Security for delimitation of Deputy Inspector General of Police Divisions.

     

    13. National program to celebrate International Day of Zero Waste


    The resolution to designate March 30 as Zero Waste Day was announced by the United Nations
    General Assembly on 14.12.2022 at the initiative of the Republic of Turkey. The purpose of declaring
    this day is to promote zero waste initiatives to advance the 2030 Agenda for Sustainable Development.
    Accordingly the Cabinet of Ministers approved the proposal presented by the Minister of Environment
    to hold a national program to celebrate the International Day of Zero Waste on 30.03.2023 with the
    participation of the Ministry of Environment and other relevant stakeholders.


    14. Submission of orders made under the Export Development Act No.40 of 1979 for approval


    The Cabinet of Ministers approved the proposal presented by Hon. President in his capacity as the
    Minister of Investment Promotion to table the orders formed under section 14 of the Export
    Development Act No.40 of 1979 and published in Extraordinary Gazette No. 2312/76 dated
    01.01.2023 in parliament for approval.


    15. Conducting the State Vesak Celebrations in the year 2023


    In accordance with the recommendations of the most Rev. Chief Incumbent Theros and All Island
    Shasanarakshaka Mandala (Board), the State Vesak Celebrations 2023 (Sri Buddha Years 2567) have
    been planned to be conducted at the Sri Rathanasiri Piriven Vihara, Kebellewala, Madampe, Chillaw in
    the district of Puttlam as a joint endeavor of the Ministry of Public Administration, Home Affairs,
    Provincial councils, and Local Government, the Ministry of Buddha Sasana, Religious, and Cultural
    Affairs and the Department of Buddhist Activities. Accordingly, the Cabinet of Ministers approved the
    proposal furnished by the Minister of Buddha Sasana, Religious, and Cultural Affairs to declare the
    Vesak week from 02.05.2023 to 08.05.2023 and to implement various religious and social programmes
    parallel to that.


    16. The memorandum of understanding for the cooperation in the renewable energy sector.


    The Government has declared generating 70% of the electricity requirement by 2030 from renewable
    energy sources and becoming independent in power supply and to neutralizing carbon emissions by
    2050. As a policy Aiming at those objectives and reaching the expected levels, the concurrence of the
    government of India has been expressed to promote and strengthen the cooperation in the renewable
    energy sector through operating and / or facilitating power generation projects utilizing solar power and
    wind power including the coastal wind as well as generating power through biomass and continuous
    transmission infrastructure in places where agreed mutually in Sri Lanka including the northern and
    eastern provinces in coorperation with private and state entrepreneurs in India and Sri Lanka.
    Accordingly, the Cabinet of Ministers granted approval for the resolution furnished by the Minister of
    Electricity and Power to enter into a memorandum of understanding on the cooperation in the field of
    renewable energy between the Republic of India and the Government of Sri Lanka.

     

    17. Procurement of coal required for Lakvijaya coal power plant in Norochcholei for the term 2023 /
    2024


    It has been estimated that a stock of 2.25 million metric tons of coal is required for Lakvijaya coal
    power plant in Norochcholei for the term 2023 / 2024. Accordingly, the Cabinet of Ministers granted
    approval for the resolution furnished by the Minister of Electricity and Power to take necessary steps to
    implement the procurement process relevant to that.


    18. Establishment of a Solar Power Station in Sampoor, Trincomalee by Ceylon Electricity Board
    and a joint venture company of the National Thermal Power Corporation of India.


    The National Thermal Power Corporation of India and the Ceylon Electricity Board have entered into
    an agreement to jointly implement a solar power project in two (02) stages in the same venue where the
    previous coal power generation plant was planned to be established in Sampoor, generating 135
    megawatts. As the first stage of this project, it is expected to implement a solar power project of 50
    megawatts with a total estimated investment of United States dollars 42.5 million and to construct a
    220 kilowatts transmission line with 40 kilometers length from Sampoor to Kappalthure spending
    United States dollars 23.6 million. It is expected to complete this stage in two years from 2024 to 2025.
    A solar power generation plant with an additional 85 megawatts is expected to be constructed under a
    total investment of United States dollars 72 million at the stage 02 of this project. Further to this, it has
    been planned to construct a transmission line of 76 kilometers with a capacity of 220 kilowatts from
    Kappalthure to New Habarana with an estimated expenditure of United States dollars 42 million in
    order to the distribution of electricity generated under the above stage 02. Accordingly, the Cabinet of
    Ministers granted approval for the resolution furnished by the Minister of Electricity and Power to take
    necessary steps to implement the said project.


    19. Selection of companies to carry out importation, storage, distribution and sale of petroleum in Sri
    Lanka on long term contracts


    On 27.06.2022 , the Cabinet of Ministers has approved the invitation for expressions of interest for
    importation, storage, distribution, and sale of petroleum in Sri Lanka on long-term contracts and 26
    companies have submitted their proposals for this. Among these, 13 eligible companies have been
    recommended by the special committee appointed by the Cabinet and 7 companies have submitted
    detailed proposals. Accordingly the Cabinet of Ministers approved the proposal presented by the
    Minister of Power and Energy to enter into a contract with the following organizations for the
    importation, storage, distribution and sale of petroleum in Sri Lanka on long term contracts as per the
    provisions of the Petroleum Products (Special Provisions) (Amendment) Act No 33 of 2022, based on
    the recommendations made by the Technology Appraisal Committee, the Cabinet Appointed Special
    Committee and the Procurement Appeal Board.
     Synopec Fuel Oil Lanka (Pvt.) Limited
     United Petroleum Company of Australia
     R. M. Parks Company of the United States of America

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