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    Cabinet Decisions 06.02.2023 Featured

    February 07, 2023

    Decisions Taken by the Cabinet of Ministers on 06.02.2023

    01. Report of the Committee to Review Project Offices and Project Management Units Review Committee

    In the 2022 Interim Budget, the President has proposed that the functions of the Project Offices and Project
    Management Units established for various purposes should be reviewed, taking into account the Cost and
    recruitment of considerable staff. Accordingly, a committee under the chairmanship of Mr. H.T. Kamal
    Padmasiri a former ministry secretary, was appointed to review and make recommendations as to whether
    the desired objectives of those Project Offices and Project Management Units have been achieved and
    whether they should be continued. The committee has recommended to close down 55 existing Project
    Management Units, to suspend the activities of 32 others and to run 46 Project Management Units with
    minimum staff. 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 implement the
    recommendations of the committee report.


    02. Base year updating of the National Consumer Price Index of Sri Lanka


    The National Consumer Price Index is a key determinant of Gross Domestic Product deflation while being a
    more descriptive indicator of overall inflation in the country.
    The reference year for the first data series of the National Consumer Price Index is 2013. The items contained
    in the goods and services basket and the weights of goods and services should also be updated to reflect the
    current consumption expenditure of households in Sri Lanka.
    The following measures taken by the Department of Census and Statistics were presented by the Hon.
    President to the Cabinet of Ministers and received the approval of the Cabinet of Ministers.
    • Updating the National Consumer Price Index from base year 2013=100 to base year 2021 =100.
    • Processing and publication of new National Consumer Price Index and National Level Inflation Rate
    every 21 days from January 2023.
    • Weighting for the updated National Consumer Price Index based on consumer spending in 2019.
    • Preparation and publication of the inflation rate for the urban areas of the Colombo District by
    updating the Colombo Consumer Price Index for the new base year 2021=100, covering the urban
    areas of the Colombo District from January 2023.


    03. Agreement for Competency Verification Program between the “Takamol Company” of Saudi Arabia
    and the Tertiary and Vocational Education Commission of Sri Lanka


    A program is being implemented by the Tertiary and Vocational Education Commission under the Ministry
    of Education and the Sri Lanka Foreign Employment Bureau in coordination with the relevant stakeholders
    and in consultation with the skill verification officials of foreign countries to equalize the qualifications of
    Sri Lankan skilled workers with foreign countries. It will allow migrant
    workers to join overseas jobs with higher value, respect and greater economic benefits. Accordingly, it has
    been proposed to enter into an agreement between Takamol Company, a government-owned business
    services company under the Ministry of Human Resources and Social Development of Saudi Arabia, and
    the Tertiary and Vocational Education Commission of Sri Lanka. The draft agreement has received the
    clearance of the Attorney General and the approval of the Ministry of Foreign Affairs. The Cabinet of
    Ministers approved the proposal presented by the Minister of Education to sign the relevant agreement
    accordingly.

     

    04. Joint cooperation agreement between the Sri Lanka Rupavahini Corporation and the Turkish Radio
    and Television Corporation


    In the second session of the Sri Lanka-Turkey Joint Committee on Economic and Technical Cooperation
    held in the year 2021, it has been proposed to sign a cooperation agreement between the Ceylon Television
    Corporation and the Turkish Radio & Television Corporation with the aim of further strengthening trade,
    economic and technical cooperation between the two parties. The draft agreement has received the clearance
    of the Attorney General and the approval of the Ministry of Foreign Affairs. The Cabinet of Ministers
    approved the proposal presented by the Minister of Mass Media to sign the relevant agreement accordingly.


    05. Memorandum of Understanding between the Democratic Socialist Republic of Sri Lanka and the
    Republic of Maldives Sri Lanka on Cultural Cooperation


    A cultural cooperation agreement has been proposed to be signed between the Democratic Socialist Republic
    of Sri Lanka and the Maldives. The draft agreement has received the clearance of the Attorney General and
    the approval of the Ministry of Foreign Affairs. The Cabinet of Ministers approved the proposal presented
    by the Minister of Buddha Sasana, Religious and Cultural affairs to sign the relevant agreement accordingly.


    06. Submission of orders enacted under the Colombo Port City Economic Commission Act No. 11 of 2021
    to Parliament for approval


    The Colombo Port City (Offshore Company Registration) Order No. 1 of 2022 enacted under the Colombo
    Port City Economic Commission Act No. 11 of 2021 has been published in the gazette Extraordinary bearing
    No. 2306/54 dated 17.11.2022. The Proposal Presented by the Hon. President in his capacity as the Minister
    of Investment Promotion to present the said orders in the parliament for approval, was approval by the cabinet
    of the Ministers.


    07. Introducing Amendments to the Employees' Trust Fund Act No. 46 of 1980


    A proposal to provide health insurance similar to Agrahara health insurance to private sector employees was
    presented to Parliament by the Honorable President in the 2023 budget speech.. 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 instruct the legal draftsman to prepare a bill to amend the
    Employees' Trust Provident Fund Act No. 46 of 1980 enabling the implementation of said proposal.


    08. Submission of the Welfare Benefits Act No 24 of 2002 and the regulations formulated under Electronic
    Transactions Act No. 19 of 2006.


    Regulations for payment of welfare benefits (section of eligible persons for receiving payments) as per the
    provisions No. 1 of 2022 subject to section 27 of Welfare Benefits Act No. 24 of 2002 has been published in
    the extraordinary gazette notification dated 20.10.2022. Furthermore, consolidated welfare management
    systems regulations No. 2 of 2022 under Electronic Transaction Act No. 19 of 2006 has been published to
    prepare electronic reports and documents to perform tasks and activities of the Welfare Benefits Act No. 24
    of 2002 and to maintain an information system related to the same by the gazette extraordinary dated
    29.11.2022. Accordingly, the Cabinet of Ministers approved the resolution furnished by the Hon. President
    as the Minister of Finance, Economic Stabilization and National Policies to submit the aforementioned
    regulations to the Parliament for its concurrence.


    09. Amendment of Fisheries and Aquatic Resources Act No. 2 of 1996.


    Approval was granted at the meeting of the Cabinet of Ministers held on 21.12.2020 for increasing the
    penalties for disturbances caused to authorized officers when implementing the provisions of the Fisheries
    and Aquatic Resources Act No. 2 of 1996 and to prepare a draft bill for revising the said Act including the
    provisions for regulating illegal actions. Accordingly, clearance of the Attorney General was granted for the
    draft bill. The Cabinet of Ministers approved the proposal furnished by the Minister of Fisheries to publish
    the said draft bill in the government gazette and to table the same before the Parliament.


    10. Introduction of amendments to the Partition Law.


    Approval was granted at the meeting of the Cabinet of Ministers held on 05.10.2021 to draft a bill for
    amending the Partition Law including provisions applicable to current requirements. Accordingly, clearance
    of the Attorney General has been granted for the draft bill. The Cabinet of Ministers granted approval to the
    proposal forwarded by the Minister of Justice, Prison Affairs and Constitutional Reforms to publish the draft
    bill in the government gazette and thereby submit to the Parliament.


    11. Submission of regulations issued under the Import and Export (Control) Act No. 1 of 1969 to the
    Parliament for its approval.


    The Cabinet of Ministers approved the resolution furnished by the Hon. President as the Minister of Finance,
    Economic Stabilization and National Policies to submit import control regulations, for payment methods No.
    3 of 2023 which have been published by the extraordinary gazette notification dated 19.01.2023 under the
    Import and Export (Control) Act No. 1 of 1969 to the Parliament for its approval.


    12. Draft Bill of Finance (Special Provisions) Act


    The requirement to introduce a draft bill with the objective of managing funds owned by state establishments
    was tabled in the Parliament by the Hon. President as the Minister of Finance, Economic Stabilization and
    National Policies through a supplementary budget proposal 2022. Accordingly, the Cabinet of Ministers
    approved the resolution submitted by the Hon. President to direct the Legal Draftsman to prepare a draft bill
    to supervise the statutory funds systematically maintained by Ministries, Departments and other state
    institutions and to implement a programme for the purpose.


    13. Maintaining essential government services amidst extreme financial constraints.


    Due to the economic crisis the government revenue has declined to a value as lower as 8.3% of the Gross
    Domestic Product. The Cabinet of Ministers approved the resolution submitted by the Hon. President as the
    Minister of Finance, Economic Stabilization and National Policies to direct the Secretary to the General
    Treasury to take necessary measures to release imprest only for essential recurrent expenditure that is
    essential for maintaining public services until the situation is turned favorable.


    14. Rationalization of state expenses through systematic review


    Hon. President, as the Minister of Finance, Economic Stabilization and National Policies proposed in the
    budget proposals 2023 to introduce the zero based budgeting with the aim of rationalizing state expenditure.
    Through a zero based budgeting methodology, double counting of programmes expenditure wastage, low
    priority activities and efficient and productive methodologies of utilizing the allocation of existing provisions
    will be recognized through a systematic review. Accordingly, the Cabinet of Ministers approved the
    resolution submitted by the Hon. President as the Minister of Finance, Economic Stabilization and National
    Policies to appoint 10 committees comprised of officers chaired by either a Deputy Treasury Secretary or a
    senior officer of the Treasury in order to conduct a systematic review on the following Ministries to which a
    higher portion of allocations are made from the annual budget estimations.


    • Ministry of Transport and Highways
    • Ministry of Public Administration, Home Affairs, Provincial Councils and Local Government
    • Ministry of Education
    • Ministry of Health
    • Ministry of Agriculture
    • Ministry of Plantation Industries
    • Ministry of Defense
    • Ministry of Public Security
    • Ministry of Irrigation
    • Ministry of Urban Development and Housing

     

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