1. Fundamental agreement with the global fund for the period of 2022 – 2024

The Global Fund to Fight AIDS, Tuberculosis and Malaria has been established with the objective
of supressing / combating the 03 contagious diseases namely AIDS, Tuberculosis and Malaria
which have become global health crisis. The fund has entered into 24 agreements for funding
United States Dollars 114 million to Sri Lanka by the fund since the year 2003. The Ministry of
Health have entered into 15 agreements among them, while the other agreements have been signed
with Sri Lanka National Sarvodaya Movement, Tropical and Environmental Diseases and Health
Associates (Private) Limited and Sri Lanka Family Planning Association. The Ministry of Health
has entered into agreements worth United States Dollars 88.3 million grants while actions have
been taken to utilize United States Dollars 71 million by 31 st October 2021 out of them. The Global
Fund has agreed upon granting another United States Dollars 9.4 million for the period 2022 –
2024. Accordingly, the Cabinet of Ministers have granted approval to sign the relevant agreements
when the Minister of Health made the Cabinet of Ministers aware of the measures taken to sign the
relevant agreements to obtain the said grant.

2. Engaging the dry stock vessels of Ceylon Shipping Corporation Limited within the South
Western monsoonal period of the year 2022.

Aspirations have been called for engaging / operating the two vessels Mv. Ceylon Breeze and Mv.
Ceylon Princess belongs to Ceylon Shipping Corporation in services within the international rental
market during the South Western monsoonal period of the year 2022. Accordingly, the Cabinet of
Ministers approved the proposal furnished by the Minister of Ports, Shipping and Aviation subject
to the recommendation of the standing procurement committee appointed by the Cabinet of
Ministers, to award the contract for operating the vessels during the said period under the
commercial management methodology to M/s Wallem Shipping Pte Ltd. of Singapore.

3. Payments for the suppliers submitted bids for supplying laboratory equipment, consumer
commodities and reactive.

Approval of the Cabinet of Ministers has been granted at their meeting held on the 25 th April 2022
for making payments for the medicine and clinical equipment to which Letters of Credit (LC) as per
the emergency fluctuation in the exchange rates occurred due to the prevailing economic crisis
within the country. Therefore, the Cabinet of Ministers has granted approval to the resolution
submitted by the Minister of Health for making payments to the suppliers who have opened letters
of credit (LC) for importing clinical equipment, consumer commodities as well as reactive and to
make payments to the other suppliers relevant to those opened bids including those procurers after
calling quotations by the State Pharmaceutical Corporation based on the prices existing to the date
of payments applicable to letters of credit (LC).

4. Amendment of the Termination of Employment of Workmen (Special Provisions) Act No. 45
of 1971 and the Industrial Disputes Act No. 43 of 1950.

Approval of the Cabinet of Ministers has been granted on the 08 th of March 2021 to amend the
Termination of Employment of Workmen (Special Provisions) Act No. 45 of 1971 and the

 
Industrial Disputes Act No. 43 of 1950 to enable imposing provisions as applicable so that a
security can be deposited when filing an application of appeals, amendments and writ applications
against grants and decisions given under them. Accordingly, clearance from the Attorney General
has been granted for the draft bills those have been prepared by the Legal Draftsman. Therefore, the
Cabinet of Ministers granted approval to the resolution furnished by the Minister of Labour and
Foreign Employment Promotion to publish the said draft bills of the acts in the government gazette.

5. Submission of the regulations issued under the Imports and Exports (Control) Act No. 1 of
1969 to the Parliament for approval.

It has been proposed limitations for certain payment methods selected by the Central Bank of Sri
Lanka with the objective of preventing the widening of illegal foreign exchange market activities
and preventing invoices for lower values in regard to the imports. Accordingly, the gazette
notification on 06 th May 2022 has been issued imposing ‘import control regulations for payment
methods No. 07 of 2022’ under Imports and Exports (Control) Act No. 1 of 1969 to enable
limitation of documentation payment methods on open accounts payment methods, the basis of
payment of money after goods are sold, payment methods of documents on payments and payment
methods on recognition. Such a regulation, once published should be submitted to the Parliament
for its approval subject to the approval of the Cabinet of Ministers within a month from the date the
same was issued as per Imports and Exports (Control) Act. Therefore, the resolution furnished by
the Hon. Prime Minister as the Minister of Finance, Economic Stability and National Policies was
approved by the Cabinet of Ministers in order to submit the import control regulations for the
payment methods No. 07 of 2022 to the Parliament to be approved.

6. Submission of Supplementary Estimates to Parliament

The government has introduced a assistance package for Samurdhi Beneficiaries Estate
Communities, Pensioners and Government Servants at the beginning of 2022 to reduce as much as
possible the hardships faced by the public due to the adverse economic conditions. It has been
decided to submit a supplementary estimate to Parliament to cover the cost and secure the necessary
funds to maintain the essential public services without hindrance. Accordingly, the proposal made
by the Prime Minister in his capacity as Minister of Finance, Economic Stabilization, and National
Policies to submit a supplementary estimate to the Parliament for the provision of Rs. 695 billion
under the "Budget Assistance Services and Emergency Responsibilities" project of the National
Budget Department was approved by the Cabinet of Ministers.

7. Increasing the revenue for economic stability

The government has decided to introduce a relaxed tax policy later in 2019 to reduce the rates of
value added tax, personal income tax, corporate income tax and to shrink the tax base on value
added tax and income tax. As a result, government revenue has dropped significantly. In this
context, the cabinet of ministers approved the proposal presented by the Prime Minister in his
capacity as the Minister of Finance, Economic Stabilization, and National Policies to instruct the
legal Draftsmen to prepare the necessary Bills to amend the following Acts with a view to
increasing Government Revenue.

 INLAND REVENUE ACT, No. 24 OF 2017
 Value Added Tax Act, No. 14 of 2002
 Telecommunication Levy Act No21 of 2011
 Betting and Gaming Levy Act, No.40 of 1988
 Fiscal Management (Responsibility) Act No. 3 of 2003

8. Calculation of GDP

The Department of Census and Statistics updates the base year of National Accounts Estimation
every 5 years taking in to account the facts such as, accurate identification of the real structure of
the economy, more accurate estimation of the values of economic growth rate, adaptation to the
new recommendations and procedures put forward by the relevant international bodies on national
accounts. Accordingly, it has been decided to use the year 2015 as the new base year instead of the
year 2010 which is currently based on the preparation of national accounts. The Department of
Census and Statistics has prepared quarterly and annual National Accounts Estimates for the period
2015 to 2021 using the base year 2015. The Cabinet of Ministers approved the proposal made by
the Minister of Finance to publish those reports and to issue National Accounts Estimates under the
new base year 2015 from the first quarter of 2022 onwards.