Connect with us

News

CoPF gives nod for increased thresholds for local companies to invest overseas

Published

on

CoPF meeting in progress (Pic courtesy parliament)

The Committee on Public Finance recently took into consideration an Order inclusive of updated guidelines on outward investments, introducing increased thresholds for local companies to invest overseas and streamlining processes to facilitate cross-border expansion, the parliament stated in a press release issued yesterday (4).

The text of the press release: “The said Order under Section 22 of the Foreign Exchange Act, No. 12 of 2017 Published in the Gazette Extraordinary No. 2441/14 of 18.06.2025 was thus approved after due consideration.

These matters were discussed at the meeting of the Committee on Public Finance Chaired by Member of Parliament (Dr.) Harsha de Silva on 29.07.2025.

Under the new framework, the investment limit for listed companies has been raised from USD 500,000 to USD 750,000 and the limit for unlisted companies has been increased from USD 150,000 to USD 200,000. Companies seeking to invest beyond these limits can now borrow from foreign sources up to USD 2 million, with Central Bank oversight and any investment exceeding USD 2 million will require special approval.

All outward investments must be routed through a designated Outward Investment Account (OIA) in Sri Lanka before funds can be transferred abroad. The Central Bank of Sri Lanka has granted general permission to licensed banks to facilitate these transactions swiftly, ensuring companies can access opportunities without undue delays.

Officials who attended the meeting emphasized that these reforms aim to encourage Sri Lankan businesses, particularly in the technology and software sectors to pursue global expansion while maintaining oversight of capital flows. The changes come amid concerns that previous restrictions were prompting some firms to relocate overseas.

Speaking on the updated guidelines, Central Bank of Sri Lanka representatives assured that short-term supplier credit (DA terms) remains classified as a current account transaction, with no additional restrictions.

The Committee also took into consideration the Regulation made under Section 35 of the Public Debt Management Act, No. 33 of 2024 published in the Gazette Extraordinary No. 2443/14 of 30.06.2025. Approval for the Regulation was granted following a discussion at length.

The Committee reviewed cross-border letter of credit (LC) and de-registration requirements pertaining to the importation of vehicles. Moreover, the Committee also inquired on the suggested improvements to the Gambling Regulatory Authority Bill and e-commerce platform taxation and related matters.

Reviewing the Regulation under Section 35 of the Public Debt Management Act, No. 33 of 2024, State-Owned Enterprises (SOEs) will no longer have unrestricted access to international borrowing under the new frame work. They must now undergo stress tests using an IMF-introduced tool to qualify for sovereign guarantees from the Treasury. This mechanism determines risk premiums in addition to lender interest rates, making borrowing more expensive while promoting fiscal discipline among SOEs.

Officials further noted that, based on the Public Debt Management Act, Sri Lanka currently operates under a 7.5% of GDP borrowing ceiling, with approximately 5% of GDP already utilized. This leaves only 2.5% borrowing capacity for future growth and development financing.

The Committee also received an update on the cross-border letter of credit (LC) requirements for vehicle imports. Treasury officials informed the Committee that the Cabinet of Ministers has decided to re-export all vehicles imported under cross-border LCs, though this decision is currently under legal challenge, preventing further discussion.

They also discussed proposed improvements to the Gambling Regulatory Authority Bill, with the Committee advocating for the inclusion of the National Lotteries Board and Development Lotteries Board within the regulatory framework, emphasising that lotteries constitute gambling and should not be excluded.

The officials present also stated that concerns pertaining to e-commerce platform taxation has been resolved. They stated that operations are now flowing smoothly following earlier delays caused by the switch back to HS code-based taxation.

The meeting was attended by Deputy Minister Chathuranga Abeysinghe, Members of Parliament Ravi Karunanayake, Rauff Hakeem, and (Dr.) Kaushalya Ariyarathne.”



Latest News

Electricity tariffs to be increased from 1st April

Published

on

By

The Public Utilities Commission of Sri Lanka (PUCSL) has granted approval to increase electricity tariffs with effect from 1st  April .

The Ceylon Electricity Board (CEB) requested a 13.56% electricity tariff revision  for the second quarter of this year.

The revision announced by the PUCSL for  domestic consumers:

0–30 units category, electricity tariffs will rise by 4.3%, 

31–60 units category, tariffs will rise by 6.9%, 

61–90 units category, tariffs will rise by 6.9%, 

91–120 units category, tariffs will rise by 7.2%, 

Above 180 units, electricity tariffs will rise by  25.3% 

The PUCSL has decided not to increase electricity tariffs for religious and charitable institutions that consume below 180 units monthly and a  9.6% increase for institutions that consume above 180 units.

Ectricity tariffs for the general and household consumer categories has been increased by 8%, while the electricity tariff increase for the industrial sector is 8.7%,  the increase in tariff for government institutions is 14.4%.

 

Continue Reading

News

A QR code system to be introduced for agricultural lands and other sectors requiring fuel

Published

on

By

It was decided at the committee appointed to oversee the distribution of essential goods to appoint five officials from the Ceylon Petroleum Corporation to cover all ministries in order to examine fuel-related issues and undertake the necessary interventions.

It was further discussed that the responsibility of these officials would be to examine fuel-related issues arising in institutions under each ministry and to intervene in providing solutions by maintaining coordination with the Corporation.

These matters were discussed at a meeting of the committee appointed to oversee the distribution of essential goods, chaired by Minister of Transport, Highways and Urban Development Bimal Rathnayake held on Friday (27) at the Presidential Secretariat.

It was also noted, with particular attention, that requests have been made by industrialists indicating that the current fuel quota allocated to vehicles for the distribution of their products across the country is insufficient. It was further discussed that, if these concerns are not addressed, there is a likelihood of an increase in the prices of goods, which could in turn cause significant hardship to the public during the festive season.

The committee also discussed the issuance of fuel for the distribution of essential food items by state and private institutions, including supermarkets such as Sathosa, wholesale importers, tourism-related service providers, hotels and other service-providing organisations.

Accordingly, it was discussed that requests for fuel quotas submitted by these institutions should be carefully considered and prompt action taken as necessary and that such requests should be forwarded to the Ministry of Energy through the relevant ministries.

Attention was also drawn to the need for the swift implementation of a QR code system for the issuance of fuel to other sectors, including agriculture and the fisheries industry, based on letters issued on the recommendations of the relevant government officials, including agricultural research officers, instead of the previous method of direct fuel allocation.

Minister Bimal Rathnayake emphasised the need to ensure a continuous and properly managed fuel supply, with particular focus on providing goods to the public without shortages and preventing excessive price increases during the forthcoming Sinhala and Hindu New Year season.

The discussion was attended by a group of government officials, including Minister of Trade, Commerce, Food Security and Cooperative Development Wasantha Samarasinghe, Deputy Minister of Power Arkam Ilyas, Senior Additional Secretary to the President, Kapila Janaka Bandara and Chairman of the Ceylon Petroleum Corporation, D. J. Rajakaruna.

Continue Reading

News

Inquiry into female employee’s complaint: Retired HC Judge’s recommendations ignored

Published

on

Speaker Wickramaratne receiving the report from retired HC Judge Alahapperuma. Secretary General of Parliament Rohanadeera stands next to the Speaker (file photo)

Parliament:

… sexual harassment claims dismissed

Recommendations made by retired High Court Judge Ms. Sujatha Alahapperuma, following an inquiry into claims by a female employee of the Department of Information Systems and Management of Parliament, regarding sexual harassment, denial of due salary increments and other forms of harassment, were yet to be implemented, sources familiar with the investigation said.

The retired HC Judge handed over the report to Speaker Dr. Jagath Wickramaratne on 24 November, 2025. Secretary General of Parliament Kushani Rohanadeera was also present on that occasion.

The retired judge has recommended that administrative decisions be taken expeditiously to grant her salary increments due for 2024 and 2025, reevaluation of all employees attached to the Department of Information Systems and Management and keep them under close scrutiny and strengthening of the ‘Helpdesk’ to meet the requirements.

Sources said that none of the recommendations have been implemented and the concerned employee in spite of still being the Senior Helpdesk coordinator remained attached to the Supplies and Services Office. She had been ordered to report to the Supplies and Services Office in January 2025 following a continuing dispute with the top management of the Department of Information Systems and Management.

Parliamentary Staff Advisory Committee on 25.07.2025 decided to conduct an external investigation into the issue after the employee refused to accept the outcome of the internal inquiry conducted in the wake of SJB lawmaker Mujibur Rahman raising the issue in Parliament.

The retired judge has emphasised the urgent need to take tangible measures to address administrative issues with a view to enhance discipline and human resources management among other issues.

However, the retired judge has declared that the complainant or any other female employee attached to the of Department of Information Systems and Management hadn’t been subjected to any form of sexual harassment as alleged.

The retired judge further asserted that the complainant had been prejudicially treated by two interview boards when she appeared before them seeking posts of Database Administrator and Parliament Officer.

The retired judge has also asserted that the Supplies and Services Office where the complaint continued to serve even now was not suitable and not in line with her qualifications. Some of those who had appeared before the retired judge during the inquiry claimed that was a temporary transfer. However, the report dismissed that claim declaring that transfer appeared to have been done outside acceptable procedure and her increments stopped without giving any justifiable reason.

The retired judge has stated that for want of proper procedures and systems, the administration seems to be in turmoil.

 By Shamindra Ferdinando

Continue Reading

Trending