Cabinet Decisions

DECISIONS TAKEN BY THE CABINET OF MINISTERS AT ITS MEETING HELD ON 13-09-2016

01.   Establishing accelerated economic transformation in Sri Lanka – Setting up a central Programme management Unit (Document No – 07)

It is important to establish a separate unit to supervise and take corrective measures on development activities for achieving the objectives of gain an accelerated economic development and to convert the country's economy into a sustainable socio-economic market.

Accordingly, the proposal made by Hon. Prime Minister Ranil Wickremesinghe, in his capacity as the Minister of National Policies and Economic Affairs, to obtain the assistance of a the Mackenzie Institute of USA who have experience in setting up such units in rapidly transforming economies such as in Malaysia for setting up a Central Programme Management Unit in Sri Lanka, was approved by the Cabinet of Ministers.

02.   Increasing the compensation payment for damages caused by wild elephants (Document No – 08)

The above compensation was last amended in 2004. Accordingly, the total compensation payment is around Rs. 25-35 million. It has been proposed to increase these compensation as Rs. 200,000 for a death caused by wild elephant attack and Rs. 200,000 for a permanent disabilities (without considering the age limit as at present), Rs. 75,000 for physical injuries, and Rs. 100,000 for house and property damages, and to assign the payment to a committee chaired by the District Secretary to minimize delays in payment and to establish a Committee of Appeal chaired by the Director General of Wildlife to consider appeals forwarded by those who are not satisfied with the decisions of the above committee.

The above proposal made by Hon. Gamini Jayawickrama Perera, Minister of Sustainable Development and Wildlife, was approved by the Cabinet of Ministers.

03.   National Occupational safety Week (Document No – 11)

The National Occupational Safety Week which is organized annually by the National Institute of Occupational Safety and Health with the view contributing in increasing national production through minimizing all kinds of occupational accidents is to be held from 07th to 14th October 2016. This time an international conference and a national conference and a National Occupational Safety and Health – Awards of Excellence for admiring institutes that are committed to make a safer environment for employees will be held in line with the National Occupational Safety Week. Accordingly, the proposal made by Hon. W.D.J. Seneviratne, Minister of Labour and Trade Union Relations, to implement this programme with the association of public and private institutions, considering it as a national programme, was approved by the Cabinet of Ministers.

04.   Amendment of the Sri Lanka Disaster Management Act No. 13 of 2005 (Document No – 12)

The National Council for Disaster Management and the Disaster Management Centre was established in 2005 under the provisions of the above act and a separate ministry for disaster management was established in 2010. The tendency of disasters has increased in recent times. Considering the difficulties faced by the Disaster Management Centre and the Ministry of Disaster Management in discharging responsibilities and activities assigned by the act, the proposal made by Hon. Anura Priyadarshana Yapa, Minister of Disaster Management, to amend the Sri Lanka Disaster Management Act for maintaining the above tasks with better coordination and cooperation, was approved by the Cabinet of Ministers.

05.   Introduction of a contributory pension scheme for artistes (Document No – 19)

Funds have been allocated by the Budget 2016 to introduce a contributory pension scheme for artistes with the view of affirming their social recognition and social security. Accordingly, the proposal made by Hon. S.B. Navinna, Minister of Internal Affairs, Wayamba Development and Cultural Affairs, to establish a contributory pension scheme for selected applicants selected by the Department of Cultural Affairs according to a marking scheme based on their age and to implement it through the Social Security Board, was approved by the Cabinet of Ministers.

06.   Construction of a new building for National Design Centre (Document No – 20)

The National Design Centre which is implemented for the improvement of indigenous craftsmen is situated in a building older than 40 years. As the building is in deteriorated status it could not be modified to meet present day needs. Accordingly, the proposal made by Hon. Rishad Bathiudeen, Minister of Industry and Commerce, to remove the old building and to build a new one consisting of workshops, design planning units, library, handicrafts showroom, and administration branch at an estimated cost of Rs. 80 million, was approved by the Cabinet of Ministers.

07.   Acquisition of required lands for Angunakolapelessa town development activities (Document No – 22)

The Urban Development Authority (UDA) has planned to develop Angunakolapelessa town which connects cities in Hambantota District with a regular plan. Therefore, the proposal made by Hon. Patali Champika Ranawaka, Minister of Megapolis and Western Development, to acquire a land of 9 acres 2 roods and 10 perches belonging to the Mahaweli Development Authority to the UDA for the constructions of tourist bungalows, banks, commercial complex, buildings for public institutions, car park, and for town centre and bus stand development, was approved by the Cabinet of Ministers.

08.   Town centre re-development project at Mihintale (Document No – 23)

The Urban Development Authority (UDA) has prepared a plan to develop Mihintale town to facilitate about 8000 people who come to the town for their daily needs and seasonal pilgrims and visitors. Under this plan it is proposed to build commercial buildings and public market, storm water drainage, children's parks, common areas with parking facilities, and street furniture. Accordingly, the proposal made by Hon. Patali Champika Ranawaka, Minister of Megapolis and Western Development, to implement the above project at an estimated cost of Rs. 200 million within the period of 2016-2019, was approved by the Cabinet of Ministers.

09.   Memorandum of understanding on cooperation in the fields of broadcasting, television and cinema, between Sri Lanka and Bangladesh (Document No – 28)

The proposal made by Hon. Gayantha Karunathilaka, Minister of Parliamentary Reforms and Mass Media, to sign a MoU between the Ministry of Parliamentary Reforms and Mass Media and Ministry of Information of the People's Republic of Bangladesh with the view of exchanging current news and television programmes and successful experiences and technology, was approved by the Cabinet of Ministers.

10.   Acquiring Soranawatta land in Horana to the Department of Prisons in order to relocate Welikada Prison and its supportive units (Document No – 31)

The proposal made by Hon. D.M. Swaminathan, Minister of Prison Reforms, Rehabilitation, Resettlement and Hindu Religious Affairs, to transfer the Soranawatta Land in Horana of 28 acres in extent owned by the UDA to the Department of Prisons to relocate the Welikada Prison, Prison Hospital, Women's Ward, and Prison Quarters, and to transfer the land of 38.5 acres where the Welikada Prison is currently located to the UDA for urban development activities, was approved by the Cabinet of Ministers.

11.   Projects of the Ministry of Telecommunication and Digital Infrastructure for the improvement of the information and communication technology literacy (Document No – 34)

Budget 2016 has allocated funds of Rs. 250 million and Rs. 42 million respectively to the projects of School Computer Laboratory Project implemented with the view of improving ICT related infrastructure and literacy in island wide schools and the District IT Resources Centres Project implemented with the view of maintaining a coordination with the district administration on IT resources management issues. The proposal made by Hon. Harin Fernando, Minister of Telecommunication and Digital Infrastructure, to implement above projects, was approved by the Cabinet of Ministers.

12.   Construction of a new three storied building for the Panadura Divisional Secretariat (Document No – 41)

The Panadura District Secretary Division in Kaluthara District is comprised of 72 Grama Niladhari Divisions and a population of 205,969. Public and staff experience various difficulties due to the lack of space in the building where the office is being located. Accordingly, the proposal made by Hon. Vajira Abeywardana, Minister of Home Affairs, to construct a new building for the Panadura Divisional Secretariat at an estimated cost of Rs. 172.8 million, was approved by the Cabinet of Ministers.

13.   Amendments to the Value added tax (Document No – 44)

As per the budget proposals 2016, the special cabinet decision made on 04-03-2016 and as per the recommendation made by the Cabinet Committee on Economic Management on 15-06-2016 it was decided to amend provisions on Value Added Tax (VAT) in the Value Added Tax Act No. 14 of 2002. Accordingly, the proposal made by Hon. Ravi Karunanayake, Minister of Finance, to publish in the gazette and then presented in the parliament the Value Added Tax (Amendment) Bill including following amendments instead of the previously presented bill, was approved by the Cabinet of Ministers.

(i).   Fixing VAT rate at 15%.

(ii). Reduction of the threshold of registration for VAT from Rs. 3.75 million per quarter or Rs. 15 million per annum to Rs. 3 million per quarter or Rs. 12 million per annum.

(iii). Imposition of VAT on

Wholesale and retail trade which threshold is greater than Rs. 50 million per annum (Rs. 12.5 million per quarter)*

Private health services other than diagnostic tests, dialysis, and OPD services excluding medical consultation.*
   Telecommunication Services*

    Tobacco Products*

    Powdered milk which contains added sugar or other sweetening matter.*

    Air ticketing fee of air passengers moving from an airport in Sri Lanka to an airport outside Sri Lanka.*

(iv).   Restriction of VAT exemption applicable on the supply, lease, or rent of residential accommodation to projects of which the investment cost is not exceeding USD 05 Mn. However, such supplies made by Strategic Development Projects approved prior to 01.11.2015 and other projects where the sales agreement are entered into or project completed before 01.10.2016 will continued to be exempted from VAT.

(v).   Increase of the price rate of garments supplied to the local market by BOI Companies to Rs. 75/- per piece.

14.   Organizing the 69th Independence Day falling on 04th February 2017 (Document No – 45)

The proposal made by Hon. Vajira Abeywardana, Minister of Home Affairs, to appoint a committee presided by the Prime Minister Ranil Wickremesinghe to organize and direct the 69th Independence day falling on 04th February 2017, was approved by the Cabinet of Ministers.

15. Holding the cremation ceremony of Late Most Ven. Nauyane Ariyadhamma Thero, Sub-Chief incumbent of the Ramanya Nikaya (Document No – 46)

The proposal made by Hon. Vajira Abeywardana, Minister of Home Affairs, on holding the cremation of the Late Most Ven. Nauyane Ariyadhamma Thero, Sub-Chief incumbent of the Ramanya Nikaya who has rendered an enormous service to the nation, religion and the religious order, was approved by the Cabinet of Ministers.

16. Extending the service period of experienced clinical consultants up to 63 years of age (Document No – 47-10)

1,164 posts of specialist doctors in hospitals around the island are being vacated. Filling these vacancies under the current method takes a long period. Accordingly, the proposal made by Hon. (Dr.) Rajitha Senarathne, Minister of Health Nutrition and Indigenous Medicine, to extend the age of compulsory retirement of experienced specialist medical officers in curative sector up to 63 years considering their ability to serve further with their experience, was approved by the Cabinet of Ministers.