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DECISIONS TAKEN BY THE CABINET OF MINISTERS AT ITS MEETING HELD ON 20-06-2017

cabinet01)    Improvement of theatres and intensive care units in hospitals under Austrian loan scheme (Document No- 07)




The government of Austria has agreed to grant a concessionary loan of 9.58 million Euros for providing equipments including anesthetic equipment endoscopy machines theatres and mobile lighting systems for selected hospitals. Accordingly, the proposal made by Hon. Niroshan Perera Acting Minister of National policies and Economic Affairs, to enter in to relevant agreements in this regard was approved by the Cabinet of Ministers.


02)     Development and Improvement of the Institute of Engineering and Technology, Katunayake  (Document No -08)


Cabinet of Ministers has granted approval for awarding of contact for the above project on 14 March 2017.Goverment of Austria has agreed to provide a concessionary loan of 9.5 million Euros in this regard and the proposal made by Hon. Niroshan Perera, Acting Minister of National policies and Economic Affairs, to hold negotiations and enter in to relevant agreements in this regard, was approved by the Cabinet of Ministers.


03). Annual Bus fare amendment -2017 (Document no -09)


 According to the powers vested in National Transport Commission, It has   prepared annul bus fare revisions for year 2017. According to the proposal of the commission the proposals made by Hon. Nimal Siripala de Silva, Minister of Transport and Civil Aviation to increase existing bus fares from 6.28 % and to increase the minimum fare of Rs. 9.00 to Rs. 10.00 was approved by the Cabinet of Ministers.


04)  Conducting Feasibility studies for the construction of Yatimahana Reservoir in Ma Oya basin and Vee Oya Reservoir in Kelani River Basin (Document No -16)


Above projects are to be implemented as a solution to water shortage for water supply schemes in dry spells by constructing  Vee oya Reservoir with a capacity of 19 million cubic Meters and  Yatimahana Reservoir with a capacity of 12.7 million cubic meters. The proposal made by Hon. Rauff Hakeem, Minister of City Planning and Water Supply to conduct feasibility studies in this regard and to assign the task to Mahaweli Consultancy Bureau (Pvt) Ltd, was approved by the Cabinet of Ministers.



05. “Divi Udana” concessionary interest loan scheme program -2017 (Document no -22)



 Steps have been taken to implement 08 loan schemes, according to 2017 budget proposals, from 31 March 2017. The program is implemented successfully through commercial banks, the ministry of Finance and Mass media has entered in to agreements with relevant banks, and the public have been made aware of the program through electronic and print media. The information presented by Hon. Mangala Samaraweera, Minister of Finance and Mass media, was noted by the Cabinet of Ministers.



06. Proposal to establish an Offshore Sri Lankan Rupee (LKR) Bond Programme by the International Finance Corporation (Document No. 23)


Above Program Proposed by the IFC, is extra beneficial to Sri Lanka, and the Cabinet Committee on Economic Management has recommended its implementation. Accordingly, the proposal made by Hon.  Managala Samaraweera, Minister of Finance and Mass Media, to implement the above program, subject to the approval of relevant institutions including Central Bank of Sri Lanka, was approved by the Cabinet of Ministers.



07. Establishment of a University College in Trincomalee District. (Document No. 24)



Vocational Training Centers located in Trincomalee District only offers courses in NVQ 3 and 4 levels and students should go to University Colleges in Anuradhapura or Jaffna to follow courses in NVQ 5 or 6. Therefore, the proposal made by Hon. Chnadima Weerakkody, Minister of Skills Development & Vocational Training, to establish a University College in Trincomalee District at a cost of Rs. 434 Million, was approved by the Cabinet of Ministers.



08. Abolition of the 1% import control levy charged on tea imported for re-export (Document No. 29)



Considering the joint proposal made by Hon. Naveen Dissanayake, Minister of Plantation Industries and Hon. Malik Samarawickrema, Minister of Development Strategies and International Trade, the cabinet has decided to abolish the above levy by removing item No – 46 from the schedule 01 of the extraordinary gazette no 1953/28 dated 11.02.2016, and to charge a license fee of Rs. 1000/- for each license issued in this regard.



09. Lease out a land to H.V.A. farms (Pvt.) Ltd. on long term basis for environment friendly Organic Fruits and Vegetable Cultivation (Document No – 33)



The Proposal made by Hon. Gayantha Karunathilaka, Minister of Land and Parliamentary Reforms to provide the above land of 69.9 hectares, which is located in Ralmaduwa Grama Niladhari division in Vanatha villuwa Divisional Secretary's Division in Puttalam District on the above purpose, was approved by the Cabinet of Ministers.



10. Sri Lanka Technological University (Document No 36)



Above University was established with funds of Sri Lanka Telecom and It was recognized as a degree offering institute by the Ministry of Higher Education and Highway in 2017. This will provide degree courses in engineering for 2017 A/L students and it has entered into agreements with university of Lancaster in UK and Deakin University in Australia for exchange of students. It will take further action to commence such programs with Georgia Technological University in USA, Technological   University in Texas, and Lincoln University in New Zealand. A Graduate Studies Unit has also been established under this University. Above information presented by Hon. Harin Fernando, Minister of Telecommunication and Digital Infrastructure, was noted by the Cabinet of Ministers.



11. Construction of a Water Supply Operation Station for Horana Zone of BOI Sri Lanka (Document No – 38)



Horana Industrial Estate has created 2500 employment opportunities by various projects.  A sufficient amount of water supply should be provided to Horan export processing Zone, but the present supply is limited to 2500 cubic meters due to technical reasons. A water supply scheme to  ensure 8000 Cubic meters a day was planned by the BOI and the proposal made by Hon. Malik Samarawickrama, Minister of Development Strategies and International Trade, to transfer a land of 02 Acres, 00 roods and 5.1 perches which is located in Maguruwela area in Horana, to BOI was approved by the Cabinet of Minister.



12. Discussions with China, Singapore and India on new Free Trade Agreements. (Document No 39)



According to recommendations of Cabinet Committee on Economic Management, discussions are being held with above countries and they would be concluded at the end of this year.


The matters included in the report presented by Hon. Malik Samarawickrama Minister of Development Strategies and International Trade, on the progress of these discussions, was noted by the cabinet of Ministers.



13. Establishment of a Research and Training complex in the Faculty of Agriculture of the University of Jaffna. (Document No - 40 )


Cabinet has granted approval to enter into agreements with JICA on the above purpose on 06 April 2016. The proposal made by Hon. Lakshman Kiriella, Minister of Higher Education and Highways, to authorize the Secretary to the Ministry to enter into an agreement with the selected contractor for implementing this project, was approved by the cabinet of Ministers.


14. Supply of 2,900,000 vials of Anti Rabies (TC) Vaccine (Human Use) 1, ml/0.5ml for prevention of rabies disease (Document No – 45)



The Proposal made by Hon. Rajitha Senaratne, Minister of Health, Nutrition and Indigenous Medicine, to award the above tender to the successful bidder, i.e. M/s Smithkline Beechan (pvt) Ltd, as recommended by procurement Appeal Board, was approved by the cabinet of Ministers.


15. Procurement Supervision Performance as at April 2017. (Document No – 47)



According to above report 219 Procurements have been commenced at April 2017 and 151 out of them are related to the 05 Ministries of Higher Education and Highways, City Planning and Water Supply, Health, Nutrition and Indigenous Medicine, Defence, and Transport and Civil Aviation.



Above information presented by Hon. Mangala Samaraweera, Minister of Finance and Mass Media, was noted by the cabinet of Ministers along with its proposals to enhance efficiency of the procurement procedure.



16. Lease out a land of 03 roods and 01 perch at Sir James Peiris Mawatha, Colombo 02 to Superlative Properties Limited for a mixed development Project (Document No- 49)



The Proposal made by Hon. Patali Champika Ranawaka, Minister of Megapolis and Western Development, to lease out the above land for 99 years at a value of Rs. 1,815 million, to the aforesaid successful bidder, was approved by the Cabinet of Ministers.



17. Construction of new Habarana Grid Substation and augmentation of Veyangoda Grid Substation (Document No-51)



The Proposal made by Hon. Ranjith Siyambalapitiya, Minister of Power and Renewable Energy to award the above contract to Siemens Company of India as recommended by the Standing Cabinet Appointed Procurement Committee, was approved by the cabinet of Ministers.



18. Amending the Assistance Agreement for Strengthened Partnership for Democratic Reform & Social Integration signed with USA (Document 53)



The Proposal made by Hon. Prime Minister Ranil Wickremesinghe as the Minister of National Policies and Economic Affairs, to sign the above agreement after amending it to receive a total contribution of USD 26.30 million by increasing the original value of USD 22.70 million from further USD 3.6 million, was approved by the Cabinet Ministers.



19. Regulation of the method of disposing state lands owned by public Institutions (Document No-55)



The Proposal made by H.E. the president Maithripala Sirisena, to appoint a committee chaired by the Secretary to the President and comprised of Secretaries to relevant Ministries and other officials, on the above Matter was approved by the cabinet of ministers.



20. Providing relief for lost passports of the persons distressed due to floods related disaster situation occurred in May 2017. (Document No 57)


A surcharged of Rs. 10,000.00 should be paid to obtain a new passport for lost or destroyed passports which have not been expired.



The proposal made by Hon. S.B. Navinna, Minister of Internal Affairs Wayamba Development and Cultural Affairs to exempt victims of the flood situation from the above surcharge and to charge a concessionary fee of Rs.100.00 from persons who have obtained passports after January 2017, on the recommendation of the Divisional Secretary and to provide these reliefs till 30 August 2017, was approved by the cabinet of ministers.



21. Signing of the MOU between Sri Lanka and India for implementing Most Venerable Maduluwawe Sobhitha Nahimigama Project (Document - 59)



Government of India has agreed to provide a grant of Rs.296.50 million for the above project that aims at developing Elapathagama in Anuradhapura District, including building houses for 153 families. The proposal made by Hon. Sajith Premadasa, Minister of Housing and Construction, to sign the above MOU for implementing this project, was approved by the Cabinet of Ministers.



22. Liability Manage net to improve public debt management (Document No 60)



Sri Lanka’s present debt is Rs.9,387 billion, and it is about 76% of the income in 2016. Accordingly, the Proposal made by Hon. Prime Minister Ranil Wickremesinghe, as the Minister of National Policies and Economic Affairs to, instruct Legal Draftsmen to draft a new act for using liability management for debt management and to take other necessary steps in this regard, was approved by the Cabinet of Ministers.



23. Establishment of a committee to coordinate UN Human Rights Council Recommendations (Document - 62)



Sri Lanka has gained two more years to implement above recommendations agreed in 2015, at the session held in March 2017. Accordingly the proposal made by Hon. Prime Minister Ranil Wickremesinghe, to appoint a committee of ministers chaired by him and a committee of Officials to assist the above commitee in this regard, was approved by the cabinet of Ministers.

24. Revoke of Simplified Value Added Tax (SVAT) (Document No.63)



According, to budget proposals, value Added Tax (Amendment) bill was prepared by amending the effective date of the revocation as 01 January 2018. The proposal made by Hon. Mangala Samaraweera, Minister of Finance and Mass Media, to publish the above bill in gazette and present in parliament for approval, was approved by the Cabinet of Ministers.



25. Waste disposal in Colombo Municipal Council and suburb areas. (Document No.64)



The proposal made by Hon. Prime Minister Ranil Wickremesinghe, for disposal of waste to recognized lands under environmental laws, take judicial action to prevent public protests on waste disposal, waste to be disposed only after grading, provide necessary tools for local government authorities, and increase awareness of the General public for resolving the issues arisen in above areas, was approved by the Cabinet of Ministers.

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