01. Implementation of pilot project to improve water quality in Beira Lake
The policy approval of the Cabinet of Ministers has been granted on 17.07.2023 to proceed with
the implementation of a pilot project with several government agencies to improve the water
quality of Beira Lake using micro–Nano Bubble Technology, Carbon Fiber Biofilm technology
and environmentally friendly enzymes according to a proposal presented by Groepo Pte. Ltd.
(GPL), a Singaporean company with Japanese ownership. Accordingly, taking into consideration
the further information presented by the project investor, the Cabinet of Ministers approved the
combined proposal presented by Hon. President in his capacity as the Minister of Finance,
Economic Stabilization and National Policies and the Minister of Urban Development and
Housing to implement the proposed pilot project for a period of 5 years, subject to the necessary
guidance of an expert committee consisting of experts on water quality from all universities in the
country, representatives of all relevant testing institutions and other relevant institutions and to
take a decision on the further implementation of the project, based on the results achieved.
02. Allotment of a land owned by the Urban Development Authority on which an apartment
complex has been built to the University of Colombo
The Board of Management of the Urban Development Authority has approved the transfer of the
0.2761 hectare plot of land with the apartment complex consisting of 144 housing units located at
Kalinga Mawatha in Narahenpita to the University of Colombo. Accordingly, the Cabinet of
Ministers approved the proposal presented by the Minister of Urban Development and Housing
to hand over the said plot of land containing the apartment complex as a free grant to be used as
hostal facilities of the University of Colombo.
03. Investment Proposal for a Solar Energy/Battery Storage Project at Kilinochchi Poonakary
Lake
Cabinet approval has been received to invite expression of interest proposals from prospective
investors for developing renewable energy projects with a capacity of 50 MW or more in order to
assist in the implementation of accelerated renewable energy development programs in the
country. Accordingly, United Solar Energy SL Pvt Company has submitted a proposal to develop
a solar power plant of 700 MW with a battery energy storage system at Kilinochchi Poonakary
Lake to provide a power supply of 134 MW. The project is proposed to be implemented with a
total investment of USD 1727 million as a 100% foreign direct investment. From this amount,
USD 500 million will be used for domestic project components. The project proponent company
has proposed to construct 03 anicuts around the Poonakari lake to prevent the ingress of sea water
at a cost of 13.5 million, a part of the proposed project. Instead, the Northern Provincial Council,
the Northern Provincial Irrigation Department and the Agricultural Development Department
have already agreed to grant 1080 acres of the shallow area of the lake to the company on a 35-
year lease agreement to establish the 700 MW power plant. As such the Cabinet of Ministers
approved the proposal presented by the Minister of Power and Energy to accept the project
proposal presented by the, United Solar Energy SL Pvt Company in principle and to appoint a
cabinet appointed negotiation committee to evaluate the proposal and make recommendations.
04. Long term contract for the purchase of 04 shipments of 92 Unl octane petrol over a period
of 4 months.
Bids have been invited from suppliers registered under the Ceylon Petroleum Corporation for a
long-term contract for the purchase of 04 shipments of 92 Unl octane petrol over a period of 4
months from 21.09.2023 to 21.01.2024. The number of companies that have submitted bids for
that is 4. Accordingly the proposal presented by the Minister of Power and Energy to award this
procurement to Vitol Asia Company of Singapore as per the recommendation of Cabinet
Appointed Procurement Committee, was approved by the Cabinet of Ministers.
05. Presenting an order promulgated under the provisions of the Sri Lanka Export
Development Act No. 40 of 1979, in parliament for approval
According to the existing tax structure, certain raw materials used for the production of domestic
printing inks by domestic printing ink manufacturers are subject to higher rates of import duty
than the printing inks imported as finished products. This is a disadvantageous situation for
domestic printing ink manufacturers. In order to rectify the situation, an order has been
promulgated in the Government Gazette on 21.07.2023 in accordance with the Sri Lanka Export
Development Act No. 40 of 1979. As such the Cabinet of Ministers approved the proposal
presented by the Hon. President in his capacity as the Minister of Investment Promotion to
present this order in the parliament for approval.
06. Memorandum of Understanding on the Establishment of a Bilateral Consultative
Mechanism between the Democratic Socialist Republic of Sri Lanka and the State of Kuwait
The Ministry of Foreign Affairs has reached an agreement regarding the establishment of a
bilateral consultation mechanism between the two countries in discussions with the Ministry of
Foreign Affairs of the State of Kuwait. Accordingly the Cabinet of Ministers approved the
proposal presented by the Minister of Foreign Affairs to sign a memorandum of understanding for
the establishment of a bilateral consultative mechanism in conjunction with the 78th session of the
United Nations General Assembly to be held in New York City in September 2023, with the aim
of promoting friendly relations and cooperation in economic and other fields between the two
countries.
07. Entering into the Treaty on Prohibition of Nuclear Weapons
Approval of the Cabinet of Ministers was granted at their meeting held on the 20th of December
2021 in order to take necessary measures for signing the Treaty on Prohibition of Nuclear
Weapons. Accordingly, the Cabinet of Ministers granted approval to the proposal submitted by
the Minister of Foreign Affairs for Sri Lanka to sign the Treaty on Prohibition of Nuclear
Weapons at the ceremony to be held in relation to the said treaty parallel to the General Assembly
of the United Nations.
08. Draft bill on the equality of gender socialization
A contretemps is apparent within Sri Lanka regarding the equality of gender socialization and the
Ministry of Women, Child Affairs and Social Empowerment is taking measures to minimize the
gender imbalance of socialization. Accordingly, approval of the Cabinet of Ministers was granted
at their meeting held on 05.09.2022 to draft a bill to introduce required legal provisions with the
objective of empowering equality of gender socialization and women. Accordingly, the Hon.
President in his capacity as the Minister of Women, Child Affairs and Social Empowerment
submitted the said draft bill which was prepared by the Legal Draftsman and the Cabinet of
Ministers decided to grant policy approval to that.
09. Draft bill on the establishment of the National Women’s Commission
Approval of the Cabinet of Ministers was granted at their meeting held on 05.09.2022 to establish
an independent commission under the title of the National Women’s Commission to enable
furnishing necessary recommendations to the Parliament through the subject minister in order to
mediate in the issues related to providing leadership for women’s rights and the activities of
equality of gender socialization. Accordingly, the Hon. President in his capacity as the Minister of
Women, Child Affairs and Social Empowerment submitted the draft bill prepared by the Legal
Draftsman and the Cabinet of Ministers granted their policy approval in regard to the same.
10. Amendments made at the committee stage in relation to the draft Value - added Tax Act No.
14 of 2002.
The concurrence of the Cabinet of Ministers has been granted to submit to the Parliament the
draft bill prepared by the Legal Draftsman in order to revise the Value – Added Tax Act No. 14
of 2002 including the repeal of simplified value - added tax scheme (SVAT) with effect from
01.01.2024. The representations made by the relevant parties point out that drastic issues may
erupt in finance flow in relation to individuals especially the exporters who have been registered
under the system at present if the simplified value – added tariff system is repealed without a
strong value – added tax repayment system. Therefore, it is apparent that it is appropriate to repeal
the simplified value – added tax system step by step until a strong tax repaying mechanism is
established. Accordingly, the Cabinet of Ministers approved the proposal furnished by the Hon.
President in his capacity as the Minister of Finance, Economic Stabilization and National Policies
to submit a proposal for revision of the date of implementation of the relevant provisions to repeal
the simplified value – added tax as 01.04.2025 when it was taken for discussion at the committee
stage of the Parliament for discussing the value – added tax (amended) bill.
11. Encouraging the assembling of electric vehicles
Most Asian countries have followed more convenient access by imposing zero (0%) custom
tariffs for assembling and manufacturing electric vehicles and plug – in hybrid vehicles. Through
this attractive encouragement, investors and manufacturers can be attracted as well and it can be
directed towards future export probabilities which paves the way to act according to the global
criteria on environmental security. Accordingly, the Cabinet of Ministers approved the proposal
forwarded by the Hon. President in his capacity as the Minister of Finance, Economic
Stabilization and National Policies to impose a zero (0%) customs tariff on the CIF value when
importing electric vehicles, electric two - wheelers with a power grade up to 500 kW and modern
partially assembled Semi – Knocked – Down / SKD sets with an engine capacity up to 3000 CC
for assembling plug – in hybrid electric vehicles for the investors that engage them for electric
vehicles and plug – in hybrid electric vehicles for a minimum investment of United States Dollars
50 million by companies already agreed with Sri Lanka Board of Investment or new companies
entering into agreements. aiming to encourage the manufacturing of electric vehicles locally,
12. Granting permission to import rechargeable electric vehicles without customs tariff with the
objective of attracting investments.
The Cabinet of Ministers approved the resolution furnished by the Hon. President as the Minister
of Finance, Economic Stabilization and National Policies to grant permission to import new
rechargeable electric vehicles subject to exemption of custom tariff to an amount not exceeding
the value of United States Dollars 30,000 including insurance and shipping charges for projects
that accomplished the following receivable criteria in order to attract investments under the
programmes “Retaining and extending investors for re – investment of existing board of
investment approved companies” and “The 100 service companies programme that are board of
investment’s information technology / and companies empowered by information technology”.
I. Programme for retaining and extending investors for re – investment of existing
board of investment approved companies
• The relevant companies should have been registered under section 17 of Sri Lanka
Investment Board Act and have been in operation within a period of less than 5
years
• Proposed minimum investment for the extension of the project to be United States
Dollars 3 million
• Creating at least 50 employments to the minimum under the programme of
extending the proposed enterprise.
II. The 100 service companies programme that are board of investment’s
information technology / and companies empowered by information technology
• An enterprise should generate 50 new local employment opportunities and out of
which 15 employees should have been technically qualified.
• The minimum investment to be United States Dollars 250,000.
