01. Current status of negotiations on the proposed Sri Lanka-Thailand Free Trade Agreement
The fourth round of talks on the proposed Sri Lanka-Thailand Free Trade Agreement was held in
Colombo from 27.03.2023 to 29. The Hon. President presented the progress of the discussions to
the Cabinet for approval. Both parties have agreed to complete the negotiations and prepare the
relevant agreement for signature by the first quarter of 2024, and to hold the next round of
negotiations on 27.06.2023 and 28 in Colombo. These matters presented were taken into
consideration by the Cabinet of Ministers.
02. Implementation of Social Security Project
Among the proposed activities of the International Monetary Fund's Extended Fund Facility
program, one of the leading measures is to implement a strong social safety net to protect the most
vulnerable groups in society. The World Bank has agreed to provide a loan of USD 200 million to
support the social security project scheduled accordingly. The implementation of the proposed
project is based on 3 components namely financial assistance to target families, pilot program to
improve opportunities for the poor and vulnerable and strengthening the social security system.
Accordingly, the Cabinet of Ministers approved the proposal presented by the Hon. President, to
implement the said project and to conduct the loan negotiation conference with the World Bank to
secure funds for the project.
03. Introduction of paying ward facilities for government hospitals
Parliament has approved the proposal presented by the Hon.President in his capacity as the
Minister of Finance, Economic Stabilization & National Policies through the 2023 budget
regarding the expansion of paid ward facilities in government hospitals throughout the island. At
present, the National Provident Fund provides health insurance coverage to government employees
and pensioners, and a significant number of citizens are entitled to other health insurance coverage
(AGRAHARA). Some citizens are willing to get additional facilities in the government health
service system by paying privately. Accordingly, the Cabinet of Ministers approved the proposal
presented by the Minister of Health Accordingly, the proposal made by the health to provide
Paying Ward facilities in government hospitals for Sri Lankans as well as foreigners.
04. Introducing a new State Financial Management Act
State financial operations are governed by the Financial Management (Responsibility) Act No. 3
of 2003 and subsequent amendments to that Act. The Act provides for non-compliance with the
State's financial rules only with the approval of Parliament in extraordinary cases. However, the
Act does not include provisions for deviating from those terms. The Act does not specify the
measures to be taken in the event that the set goals cannot be met in accordance with the provisions
of the Act. Taking those facts into account, the government has agreed to enact a new Public
Finance Management Act under the International Monetary Fund's Extended Credit Facility
programme. Accordingly, the Cabinet of Ministers approved, the proposal presented by the Hon. President
in his capacity as the Minister of Finance, Economic Stabilization & National Policies to take the
necessary steps to introduce a new State Financial Management Act to be implemented with the 2025
budget, and simultaneously to repeal the Financial Management (Responsibility) Act No. 3 of 2003.
05. Amendments to the Tea, Rubber and Coconut Estates (Control of Fragmentation) Act
The Hon. President presented a proposal in the 2023 budget to limit land fragmentation by allowing
only coconut land of one acre or less to be fragmented. The Cabinet of Ministers approved the
proposal presented by the Minister of Plantation Industries to take measures to amend the Tea,
Rubber and Coconut Estate (Control of Fragmentation) Act to provide for the proposal above.
06. Awarding the contract to obtain Ground Handling Services at the Sydney International
Airport, Australia.
Bids as per limited international competitive bidding system have been called from all the licensed
ground operation suppliers supplying Ground Handling Services at the Sydney International
Airport of Australia at present and two bids have been received. Accordingly, the Cabinet of
Ministers granted approval to the proposal furnished by the Minister of Ports, Shipping and
Aviation for awarding the relevant contract for a period of three (03) years to Menzies Aviation
(Australia) Pty Ltd. as per the recommendation of the Standing Procurement Committee appointed
by the Cabinet of Ministers.
07. Maintaining sufficient Tug vessel system in the ports under Sri Lanka Ports Authority.
Approval of the Cabinet of Ministers has been granted at their meeting held on 13.06.2022 to
obtain four Tug Vessels with the capacity of more than 70 tons for a period of five years on rental
basis adhering to competitive bidding process. Accordingly, international competitive bids have
been invited to obtain Tug Vessels, and two bids have been received. Accordingly, the Cabinet of
Ministers granted approval to the proposal furnished by the Minister of Ports, Shipping and
Aviation for awarding the contract of the procurement of 04 Tug Vessels for a period of 05 years
to M/s Sri Lanka Shipping Company Limited who is the minimum bidder responded substantially
as per the recommendation of the Standing Procurement Committee appointed by the Cabinet of
Ministers.
08. Awarding the contract of repairing CFM Leap-1A category aircraft engines of Sri Lankan
Airlines.
Detailed proposals have been called under limited international competitive bidding system from
qualified suppliers for maintenance services for 03 CFM Leap-1A category aircrafts of Sri Lankan
Airlines and 03 proposals have been received. Accordingly, the Cabinet of Ministers granted
approval to the proposal furnished by the Minister of Ports, Shipping and Aviation for awarding
the contract of repairing 03 CFM Leap-1A category aircrafts of Sri Lankan Airlines to Lufthansa
Technik AG as per the recommendation of the Standing Procurement Committee appointed by the
Cabinet of Ministers.
09. Awarding the contract of supplying fuel required for air crafts of Sri Lankan Airlines at 16
airports worldwide.
International bids as per limited international bidding system have been invited for supplying fuel
required for air crafts of Sri Lankan Airlines at 17 airports. Fifty - two (52) bids have been received
from 12 companies for this while 49 bids have accomplished fundamental qualifications. The bid
of the only bidder submitted bids for Shanghai Pudong International Airport has been rejected.
The Cabinet of Ministers granted approval as per the recommendation of the Cabinet Appointed
Standing Procurement Committee, for the proposal submitted by the Minister of Ports, Shipping
and Aviation to award the relevant contract to bidders submitted the minimum prices that has been
substantially responded for supplying fuel in 16 airports.
10. Establishment of Sri Lanka National Nursing University
A decision was taken at the meeting of the Cabinet of Ministers held on 01.03.2023 to appoint a
committee comprised of officers in order to submit a report to the Cabinet of Ministers after
studying on the proposal furnished in regard to converting the Nursing School governed by the
Ministry of Health at present into a university. The Cabinet of Ministers approved the combined
resolution furnished by the Minister of Transport and Highways as the acting Minister of
Education and the Minister of Health to grant policy approval to establish Sri Lanka National
Nursing University, taking in to account the recommendations furnished by the said committee of
officers, and to formulate the relevant draft bill.
