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    Cabinet Decisions- 30.05.2022 Featured

    May 31, 2022

    Decisions taken at the meeting of the Cabinet of Ministers held on the 30.05.2022


    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.

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