News
Govt., Opposition clash over alleged bid to tax EPF
By Saman Indrajith
Chief Government Whip and Highways Minister Johnston Fernando told Parliament yesterday that there was a cold war within the SJB for the Opposition Leader’s post.
“Incumbent Opposition Leader is so upset and is trying to prove his relevance as other members in his party see a better and qualified leader in Patali Champika Ranawaka. Owing to this pressure, Opposition Leader Sajith Premadasa has lost control of his mind and speaks whatever comes to his mind,” Minister Fernando said.
He said so during a heated debate that ensued in Parliament yesterday following Opposition Leader Premadasa, asking the government to withdraw a gazette announcing the Surcharge Tax Bill, which seeks to tax the Employees’ Provident Fund (EPF).
Opposition Leader Premadasa said that the new Bill was a government plan to help itself to workers’ savings.
The Opposition Leader making a special statement demanded to know the government’s position with regard to the decline of usable foreign reserves to US $ 700 million. He questioned the measures taken by the Finance Ministry to contain the rising cost of goods, reasons for high inflation, among other key economic issues. He asked whether the Minister of Finance Basil Rajapaksa had requested a report on the financial situation under Financial Bill no 58 of 1948. He questioned the gazette notification issued on Monday 07 February 2022, according to which the government proposes a 25 percent tax on EPF. The Opposition Leader insisted that the government should answer his question.
Minister Fernando said that the government would not be able to reply to the gossip spread by the Opposition Leader.
“Opposition Leader Premadasa has come up with gossip. However, the Finance Minister will answer all questions he has raised in writing on another date,” he said.
Opposition Leader Premadasa:
“I only raised concerns about the financial crisis and never gossip.”
Presiding Member Deputy Chairman of Committees Angajan Ramanathan
said that the government would respond to the latter’s questions later. “The Leader of Opposition, the government will answer your question on another day,” he said.
Opposition Leader Premadasa:
“What nonsense is this? I raised pertinent questions which should be answered.”
Presiding Member Angajan Ramadanan:
The government will respond. I cannot allow more time than this. The Opposition Leader is not confining himself to the topic and then the government opposes that. This cannot go on.
SJB MP Dr Harsha de Silva
said that the government was trying to take over the workers’ savings.
SJB MP Kabir Hashim
also said that the government should provide an answer to the questions raised by his leader, and the Chief Government Whip had no brains.
Opposition Leader Premadasa:
I need a microphone. The Finance Minister is not in the House.
Chief Government Whip Fernando:
The Finance Minister and State Minister both are attending another function. We will respond to your questions soon.
Opposition Leader Premadasa:
According to parliamentary tradition, when the Opposition Leader is on his feet, his microphone should be on. But mine has been switched off.
Chief Government Whip Fernando:
We have clearly stated that we would respond. MP Hashim said I have no brains. But the capacity of the brains of those in the Opposition was shown when they had to lose power in four and half years. The Opposition Leader is scared that he would lose his post to Champika Ranawaka.
News
Report on the Final Budgetary Condition (Annual Report) – 2025 submited to parliament
As per the provisions of section 51 of the Public Finance Managaement Act No. 44 of 2024, the public should be issued with a report on the final budgetary situation for each year and, the report is then published in the official website of the Ministry of Finance, Planning and Economic Development.
Thereby the report has to be submitted to the Parliament. The final budgetary situation report (Annual Report) – 2025 has been prepared by the Ministry of Finance, Planning and Economic Development and published. The report contains the Public Finance Policy, strategies and challenges, economic trends in 2025, macro – economic and socio – economic indicators covering all sectors of the economy as well as description on the global economic growth.
Furthermore, it accompanies a detailed description government revenue and expenditure, cash flow management, financing the budget deficit and the loan structure.
Accordingly, the Cabinet of Ministers approved the resolution furnished by the President in his capacity as the Minister of Finance, Planning and Economic Development to submit the Report on the Final Budgetary Condition (Annual Report) – 2025 to Parliament.
Business
Cabinet nod to accept increased Loan Grant provided by the Asian Development Bank under Policy Based Loan Facilities – 2026
Approval of the Cabinet of Ministers was granted at their meeting held on 16.03.2026 to obtain United States Dollars 380 million from the policy – based loan facilities of the Asian Development Bank in the year 2026.
United States Dollars 100 million out of it is allocated for Trade, Investment and Industries Development Programme – Sub Programme 1. However, amidst the economic uncertainty resulting from the current Middle East crisis and the climatic tragedies, the Asian Development Bank has agreed to assist
by increasing a supplementary financing package of United States Dollars 100 million so that it will beMincreased up to United States Dollars 200 million.
Accordingly, the Cabinet of Ministers approved the resolution furnished by the President in his capacity as the Minister of Finance, Planning and Economic Development to take further measures to obtain the said loan grant.
News
Submission of Revenue Protection Order Prepared under the Provisions of the Revenue Protection Act No. 19 of 1962 to the Parliament for its approval.
Approval of the Cabinet of Ministers was given at the meeting held on 23.02.2026 to impose the custom import duty amounts under four (04) categories as 0%, 10%, 20%, and 30% which had been executed only under three (03) categories in order to increase the target export income of the country, to execute the
recommendations of the national customs duty policies committee, and to implement new national sub division customs codes for promoting the local agricultural and industrial sector.
Imposing provisions in relation to the above, the Revenue Protection Order – No. 01/2026 under the Revenue Protection Act No. 19 of 1962 has been published in the extraordinary gazette notification No. 2478/03 of 03.03.2026.
Accordingly, the Cabinet of Ministers approved the resolution furnished by the President in his capacity as the Minister of Finance, Planning and Economic Development to submit the said revenue protection order to Parliament for its concurrence.
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