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    Cabinet Decisions- 05.06.2023

    June 06, 2023

    Decisions taken by the Cabinet of Ministers on 05.06.2023

     

    1. Establishment of an independent regulatory body for the betterment of the film and
    television industry

    The State Film Corporation was established under the State Film Corporation Act No. 47 of 1971
    for the Promotion of Domestic Cinema and was renamed as the National Film Corporation in
    1980. The film industry is facing a severe setback due to various problems and it has been
    recognized that there is a need to establish an independent regulatory agency to revive the film
    industry. Also, for the advancement of the television industry, it appears desirable to have an
    independent body to provide guidance and regulate the industry. Taking into account the proposal
    made by the Minister of Mass Media, the Cabinet approval was granted to take necessary steps
    to establish an independent regulatory agency to provide necessary facilities and guidance for the
    development of the cinema and television industry.

    2. National Policy and Strategic Framework for the Prevention and Control of Chronic
    Noncommunicable Diseases in Sri Lanka

    Diseases like heart disease, stroke, cancer, chronic respiratory diseases and diabetes are the major
    causes of death due to non-communicable diseases in Sri Lanka. These diseases cause around
    120,000 deaths every year. Tobacco use, unhealthy alcohol consumption, obesity, high blood
    pressure, high blood sugar and high blood cholesterol have been identified as the main
    contributing factors to these diseases. The first national policy for prevention of noncommunicable diseases was published in 2009. The new revised policy has been drafted in
    consultation with all relevant parties by evaluating and reviewing the policy published in 2009.
    The revised National Policy and Strategic Framework for the Prevention and Control of Chronic
    Noncommunicable Diseases in Sri Lanka has been prepared accordingly. The cabinet of Ministers
    approved the proposal made by the Minister of Health to publish the revised strategic framework
    and national policy in the Government Gazette and to implement it.

    3. Ratification of the Comprehensive Nuclear-Test-Ban Treaty (CTBT)

     

    The Comprehensive Nuclear Test Ban Treaty was adopted by the United Nations General
    Assembly on 10.09.1996. By the treaty, member states agreed to ban "any nuclear weapons test
    or other nuclear explosion" anywhere in the world. So far, 186 countries have signed the

     

    agreement and 177 countries have ratified the agreement. Sri Lanka signed the Comprehensive
    Nuclear Test Ban Treaty on 24.10.1996. Sri Lanka is currently cooperating with the
    Comprehensive Nuclear-Test-Ban Treaty Organization in the areas of training, capacity
    development, data and information sharing. Sri Lanka's ratification of the treaty would recognize
    Sri Lanka's diplomatic role as an active proponent of international peace and security in a world
    free of nuclear weapons. Also, this will enable us to obtain useful data for civil and scientific
    purposes that will benefit many developing countries including Sri Lanka, such as tsunami
    warnings, climate change and geographical studies. Accordingly, the Cabinet of Ministers
    approved the proposal presented by the Minister of Foreign Affairs for Sri Lanka to ratify the
    Comprehensive Nuclear-Test-Ban Treaty and to take the necessary steps for legislation to enforce
    the provisions of the said agreement.

     

    4. Under the Companies Act No. 7 of 2007, update of orders applicable to company
    secretaries

    All services are provided online by the Registrar General of Companies Department and in order
    to formalize the provision of those services, it has been recognized the need to amend the
    directives regarding company secretaries issued by the minister in charge under the provisions of
    the Companies Act No. 17 of 1982. Accordingly, Taking into consideration the views and
    suggestions of the relevant stakeholders and the advisory committee, the revised orders related to
    company secretaries have been published by Gazette Notification No. 2323/41 dated 17.03.2023.
    The proposal presented by the Minister of Industries to submit the said amended orders to
    Parliament for approval was approved by the Cabinet of Ministers.

     

    5. The order published under the provisions of the Measurement Units, Standards and
    Services Act No. 35 of 1995

    The main functions of the Measurement Units, Standards and Services Department are to maintain
    national measurement standards in Sri Lanka in accordance with international standards, provide
    measurement services for various fields, and ensure fairness through measurement-based
    regulatory and service activities. The National Metrology Laboratory was established under subsection 3(b) of the Act accordingly. By Gazette Notification No. 2294/54 dated 26.08.2022, the
    Minister of Trade, Commerce and Food Safety has announced the post of Metrology Inspection
    Officer with effect from 16.06.2022 for the activities of the research laboratory. The cabinet of
    Ministers approved the proposal presented by the Minister of Trade, Commerce and Food Safety
    to present the said order in parliament for approval.

     

    6. Rationalization of Value Added Tax Exemptions and Abolition of Simplified Value Added
    Tax System

    Two major reformations in regard to the Value Added Tax (VAT) should be introduced according
    to the comprehensive funding facility of the International Monitory Fund. Under that, removing
    most of the releases, the reformation of the Value Added Tax (VAT) scheme and cancellation of
    the Simplified Value Added Tax (SVAT) methodology should be applied. Approximately 1.2%
    of the gross domestic product from the tax income can be increased by reactivating the logic of
    the existing release of Value Added Tax (VAT). Accordingly, the Cabinet of Ministers granted
    concurrence to the resolution forwarded by the Minister of Finance, Economic Stabilization and
    National Policies to remove most of the releases from Value Added Tax (VAT), further retaining
    releases that ease the pressure on low - income families to secure the fundamental sectors of the
    economy as well as the releases for sectors such as education, health and agriculture, as well as
    to revise the provisions applicable for the Value Added Tax (VAT) act so that the Simplified
    Value Added Tax (SVAT) methodology can be canceled with effect from 01.01.2024 by
    introducing a more formal methodology for repaying the Value Added Tax (VAT) and to instruct
    the Legal Draftsman to prepare a draft bill for the purpose.

    07. Draft a bill on contempt of a court, a tribunal or an institution

    Approval of the Cabinet of Ministers was granted at their meeting held on 27.06.2022 for
    introducing legal enactments on “contempt of court” which includes the clear and precise
    provisions and situational circumstances regarding the offense of “contempt of court”, defense
    and easing the penalty as well as the procedure to follow when easing the penalty. Accordingly,
    clearance from the Attorney General has been granted for the draft bill prepared by the Legal
    Draftsman. Therefore, the Cabinet of Ministers granted approval to the proposal submitted by the
    Minister of Justice, Prison Affairs and Constitutional Reforms for publishing the aforementioned
    draft bill in the government gazette, and subsequently to be tabled in the Parliament for its
    concurrence.

     

    08. Enhancing the general wastewater refinery of the Export Processing Zone of
    Horana.

     

    The public experiences constraints of releasing the wastewater to the adjoining cannels due to
    insufficient containing capacity of the general wastewater refinery in operation at present at the
    Horana Export Processing Zone. Therefore, the Board of Investment of Sri Lanka has been
    requested even by the local government institutions to accelerate the construction of the
    wastewater refinery with a capacity of 2000 cubic meters per day under enhancing the general

    wastewater refinery in the Horana Export Processing Zone. The Board of Directors of the Board
    of Investment has agreed to implement this project utilizing its funds. Therefore, the Cabinet of
    Ministers approved the resolution furnished by the Hon. President in his capacity as the Minister
    of Investment Promotion to implement the improvements of the general wastewater refinery at
    the Horana Export Processing Zone utilizing Sri Lankan rupees 1,110 million from the funds of
    the Board of Investment of Sri Lanka.

    09. Awarding the contract for repairing the Honeywell APUs of Sri Lankan Airlines

    Bids have been called through a limited international competitive bid calling methodology for
    repairing the Honeywell Additional Power Units (APUs) of Sri Lankan Airlines. Consequently,
    three bids have been received. Based on the recommendations of the technical evaluation
    committee and the standing procurement committee appointed by the Cabinet of Ministers, the
    Cabinet of Ministers approved the resolution furnished by the Minister of Ports, Shipping and
    Aviation to award the contract for repairing Honeywell Additional Power Units (APUs) of the Sri
    Lankan Airlines to Honeywell International SARL who submitted the minimum price quotation
    for an estimated sum of US dollars 15.3 million for a period of 02 years.

     

    10. Reducing the prices of essential drugs

    The National Medicines Regulatory Authority established under the National Medicines
    Regulatory Authority Act No. 5 of 2015 is responsible for regulating all matters related to
    imposing prices of medicines. Considering the depreciation of Sri Lankan Rupee compared to the
    US dollar, the Ministry of Health has given consent to escalate the maximum retail price of
    medicines up to 97% in several instances. As a result of the economic stabilization programme
    implemented by the government at present, the value of the US dollar has considerably declined.
    Accordingly, the Cabinet of Ministers approved the proposal raised by the Minister of Health to
    reduce the maximum retail price of 60 medicines by 16% with effect from 15.06.2023 and review
    the price of medicines every three months.
    *****
    In the event of any inconsistency between the Tamil and English translations of this
    document, the Sinhala text shall prevail.

     

     

     

     

     

     

     

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