1. The third round of negotiations held in Colombo on February 09 and 10, 2023 regarding
the Free Trade Agreement between Sri Lanka and Thailand
A free trade agreement between Sri Lanka and Thailand has been initiated in 2016 with the aim
of increasing the current bilateral trade value from USD 550 million to USD 1.5 billion by
identifying the economic possibilities and complementary economic structures that can be
further developed through strengthening the economic cooperation between the two countries.
On, 03.07.2018, the consent of the Cabinet of Ministers was received to initiate negotiations on
the proposed Free Trade Agreement covering goods, rules of origin, services, investment,
economic cooperation, trade remedies, customs procedures and trade facilitation and intellectual
property. Accordingly, the first round of negotiations was held in July 2018 in Colombo and the
second round in September 2018 in Bangkok. The third round of negotiations was held in
Colombo on January 09 and 10, 2023 and the Cabinet of Ministers took into account the
information presented by the Hon. President in his capacity as the Minister of Finance, Economic
Stabilization and National Policy regarding the progress of those discussions.
2. Memorandum of Understanding between the National Search and Rescue Agency,
Republic Of Indonesia and the Civil Aviation Authority, Democratic Socialist Republic of
Sri Lanka.
As a signatory to the International Civil Aviation Organization's Chicago Convention, the country
is obligated to provide air navigation services/flight services, flight schedule information services
and warning services for all aircraft flying through the country's airspace, and bears the
responsibility for the same. Sri Lanka and Indonesia are neighboring countries that share the
south-eastern boundary of the Colombo Flight Information Zone. Sri Lanka has been entrusted
with the responsibility of search and rescue operations in that region. According to the
International Civil Aviation Organization's Chicago Convention, neighboring states should enter
into agreements with adjoining states stating the conditions for entering search and rescue units in
their territories to strengthen cooperation and coordination in search and rescue activities.
Accordingly a Memorandum of Understanding between the Civil Aviation Authority of Sri Lanka
and the National Search and Rescue Agency, Republic Of Indonesia was signed in 2018 for a
period of 5 years and that agreement has now expired. Accordingly the Cabinet of Ministers
approved the proposal presented by the Minister of Ports, Shipping and Aviation to extend the
said Memorandum of Understanding for another 5 years from 23.01.2023 so that the cooperation
between the two parties can be continued.
3. Memorandum of Understanding for establishment of Bangladesh-Sri Lanka Joint
Advisory Commission
It is proposed to enter into Memorandum of Understanding to establish the Bangladesh-Sri Lanka
Joint Advisory Commission with the aim of strengthening and expanding bilateral relations
including political economic, technical and scientific consular and cultural cooperation between
the two countries. The proposed Advisory Commission will serve as a mechanism to review,
evaluate and explore new areas of cooperation at the level of Foreign Ministers of the two
countries in all areas of existing bilateral cooperation. The proposed Advisory Commission will
function as a mechanism to review, evaluate and explore new areas of cooperation at the level of
Foreign Ministers of the two countries in all areas of existing bilateral cooperation. Accordingly
the Cabinet of Ministers approved the proposal presented by the Minister of Foreign Affairs to
sign the said Memorandum of Understanding.
4. Memorandum of Understanding on the Establishment of a Political Consultation
Mechanism between the Ministry of Foreign Affairs of Sri Lanka and the Ministry of
Foreign Affairs and Expatriates of the Government of the Hashemite Kingdom of Jordan
It has been proposed to enter into a Memorandum of Understanding between the Ministry of
Foreign Affairs of Sri Lanka and the Ministry of Foreign Affairs and Expatriates of the Hashemite
Kingdom of Jordan to establish a political consultation mechanism. It is expected to strengthen
and expand the promotion of bilateral relations including political, economic, consular, technical
and scientific and cultural cooperation between the two countries. The approval of the Attorney
General has been received for the proposed draft agreement. Accordingly the Cabinet of Ministers
approved the proposal presented by the Minister of Foreign Affairs to sign the said Memorandum
of Understanding.
5. Capacity development project to improve evidence-based strategies and policies on air
quality management within the Colombo Metropolitan Area.
The French Development Agency has agreed to provide a grant to implement a Capacity
development project to improve evidence-based strategies and policies on air quality management
within the Colombo Metropolitan Area. The non-profit organization "Airparif" will provide the
total project cost of 300,000 Euros as the technical partner of the project. The draft agreement of
the project has received the clearance of the Attorney General. Accordingly the Cabinet of
Ministers approved the proposal presented by the Minister of Environment to sign a tripartite
partnership agreement between the French Development Agency, "Airparif" organization and the
Ministry of Foreign Affairs for the implementation of the proposed project and to appoint a
steering committee under the chairmanship of the Secretary to the Ministry of Environment for
the supervision of the project implementation.
6. Single Use Plastic/ Polythene Control
Proposals regarding import, domestic production, sale and local use of 7 Single Use Plastic/
Polythene products were discussed in the Cabinet Meeting held on 30.08.2021 and decided to
appoint a committee of experts to examine the proposals and submit a report with
recommendations. The Cabinet of Ministers approved the proposal presented by the Minister of
Environment to ban the import, domestic manufacture, sale and local use of the following plastic
products with effect from 01.06.2023 as recommended by the said report.
Single-use plastic drinking straws and stirrers
Single-use plastic plates, cups (except yogurt cups), spoons, forks and knives, including
yogurt spoons made of plastic
Plastic garlands
String Hopper molds made of plastic
7. The Central Bank of Sri Lanka Bill
On 19th December 2022, the Cabinet of Ministers approved the preparation of the Central Bank
of Sri Lanka Bill by the legal draftsman. Attorney General’s clearance has been received for the
Central Bank of Sri Lanka Bill prepared accordingly by the legal draftsman and the Cabinet of
Ministers approved the proposal presented by the Hon. President in his capacity as the Minister
of Finance, Economic Stabilization and National Policies to publish the said bill in the
Government Gazette and submit for the parliamentary approval subsequently.
8. Regulations under Sri Lanka Water Aerodromes No. 1 of 2022
Float plane operations has been inaugurated within Sri Lanka in the wake of the year 2000 as an
attractive trade that is useful for the development of the tourism industry. At present only one
private company is engaged in the said water aerodrome operations and it has been observed that
more entities would be interested in the trade in the future. Therefore, the requirement of
regularizing the activities in order to ensure the water aerodrome operations has emerged.
Accordingly, adhering to the obligations of the International Civil Aviation Convention, and as
per the provisions of the Civil Aviation Act No. 14 of 2010, the regulations under Sri Lanka
Water Aerodromes No. 1 of 2022 have been published in the extraordinary gazette notification
dated 09.08.2022. The Cabinet of Ministers approved the resolution furnished by the Minister of
Ports, Shipping, and Aviation to submit the said regulations to the Parliament for its approval.
9. Submission of the new Excise draft bill.
While the appropriateness of revising the Excise Ordinance which was introduced in 1912 to
cater to the current requirements regularizing the use of alcohol and tobacco, and related trades,
issuance of relevant licenses, and imposing taxation has been recognized the Hon. President as
the Minister of Finance, Economic Stabilization, and National Policies submitted a proposal to
the Parliament in the supplementary budget 2022 to introduce a new excise act in place of the
Excise Ordinance and the Tobacco Tax Act. Accordingly, the Cabinet of Ministers approved the
resolution furnished by the Hon. President as the Minister of Finance, Economic Stabilization
and National Policies to instruct the Legal Draftsman to prepare a draft bill for the purpose.
10. Grant provided under the JICA programme for enhancing the health services supplies
system of the Health sector in Sri Lanka ensuring uninterrupted essential services and
transport facilities.
Taking the prevailing economic crisis confronted by Sri Lanka into consideration, the
Government of Japan has agreed to provide Japanese Yen 05 billion as a grant (approximately
USD 38 million) under JICA programme for supplying fuel (mainly diesel) to ensure the
undisturbed functioning of the essential and emergency health services. The Cabinet of Ministers
approved the resolution furnished by the Hon. President as the Minister of Finance, Economic
Stabilization and National Policies for entering into agreements applicable to accepting the
aforementioned grant.
