Decisions taken by the Cabinet of Ministers on 17.07.2023 01. Revision of Water and Sewerage Fees The financial viability and sustainability of the National Water Supply and Drainage Boardshould be confirmed in order to achieve the objectives of expanding access to safe water andsanitation, improving the quality of service and sustainable use of water resources. As such,taking in to account the proposal presented by the Minister of Water Supply and EstateInfrastructure Development, the Cabinet of Ministers approved the revision of charges thatminimizes the impact on low-income groups and the social security base provided in connectionwith educational, religious and public water supplies. 02. Extension of Embarkation Levy exemption for Jaffna International Airport In order to promote using Jaffna International Airport, the Cabinet approval has been grantedapproval on 19.12.2022 to charge only 50% of the Embarkation Levy payable by internationalairlines at the airport for a period of six months. The said period has ended on 11.07.2023 andtherefore the Cabinet of Ministers approved the proposal presented by the Minister of Ports,Shipping and Aviation to extend the said period for another 6 months to charge about 50% ofthe Embarkation Levy so that the passengers using the said airport can issue air tickets at anaffordable price. 03. Introduction of a new Prison Administration Act The prison system in Sri Lanka is administrated by the Prisons Ordinance No. 16 of 1877. It hasbeen found that the provisions of the Ordinance are not sufficient for the present needs.Moreover, certain provisions of the ordinance are not in compliance with the international legalobligations and standards to which Sri Lanka is bound. The Law Reforms Committee appointedby the then Justice Minister has prepared preliminary bill for this purpose. Accordingly, theCabinet of Ministers Approved the Proposal presented by the Minister of Justice, Prison Affairsand Constitutional Reforms to advise the legal draftsman to prepare a new PrisonAdministration Bill based on the preliminary bill prepared. 04. Proposed circular economy promotion project in the food sector to be financed by EUgrants A grant of EUR 60 million has been allocated to Sri Lanka for the period 2021-2024 by the"Multi-annual Indicative Program for Sri Lanka 2021-2027" published under the EU StrategicProgram for Sri Lanka. A project called "Project to promote the circular economy in the foodsector" is proposed to be implemented using 15 million of that grant. The primary objective ofthe proposed project is to promote the circular economy of the food sector by building resilienceto food crises and climate change. The project will support the use of efficient food distributionchannels/methods, measures to improve food security for vulnerable people by reducing foodwastage, and converting food waste into agricultural inputs such as organic fertilizers andanimal feed. Accordingly the Cabinet of Ministers approved the proposal presented by the Hon.President in his capacity as the Minister of Finance, Economic Stabilization and NationalPolices to enter into a Grant Agreement with the European Union for the implementation of theproject. 05. Project for strengthening Buddhist relations between Sri Lanka and India A Memorandum of Understanding has been reached between the two countries on 28.03.2022to implement projects under a grant of 15 million USD provided by the Government of India tostrengthen Buddhist relations between Sri Lanka and India. Under this MoU, the two partieshave agreed to allocate 10 million US dollars to provide solar power facilities for Buddhisttemples and pirwens. Accordingly the Cabinet of Ministers approved the proposal presented bythe Minister of Buddhist and Cultural Affairs to amend the existing MOU between the bothcounties and to enter in to a new MOU. 06. Sri Lanka becoming a founding member of the Global Biofuel Alliance At the India Energy Week in February 2023 India has announced that India will take steps toform a global biofuels alliance during India's presidency of the G20. Under this proposedalliance, it is expected that leading biofuel producers and consumers such as Brazil, India andthe United States will collaborate with other interested countries. And it is also expected toencourage sustainable use of biofuels in the energy sector and particularly in transportation.The proposed alliance will also focus on market development and strengthening by facilitatingglobal biofuel trade, sharing best practices to develop optimal policies, and by providingtechnical assistance to national biofuel practices worldwide. India seeks the agreement of allnations to join the new alliance and has invited Sri Lanka to sign the founding document tobecome a founding member of the alliance. Accordingly the Cabinet of Ministers approved theproposal presented by the Minister of Power and Energy for Sri Lanka to become a foundingmember of the Global Biofuel Alliance. 07. Awarding the contract for the supply of Aviation Fuel for Lankan Airlines atKathmandu Airport, Nepal The current contract for the supply of aviation fuel to the aircraft of Lankan Airlines atKathmandu Airport is scheduled to expire on 31.08.2023. Bids have been invited under theLimited International Procurement Procedure for the selection of new aviation fuel suppliersand only one bid has been submitted. Therefore the Cabinet of Ministers approved the proposalpresented by the Minister of Ports, Shipping and Aviation to award this contract to AssociatedEnergy Group LLC, the substantially responsive bidder, for a period of 2 years, upon therecommendation of the Cabinet Appointed Standing Procurement Committee. 08. Contract for Sri Lankan Air Passenger and Mobile Airlift Handling Services at ChennaiInternational Airport, India The existing ground handling service contract for handling Sri Lankan Air passengers andmobile airlifts at Chennai International Airport is scheduled to expire on 31.10.2023. Bids havebeen invited under the Limited International Procurement Procedure for the selection of theseservices and 3 bids have been received. Accordingly, the Cabinet of Ministers approved theproposal presented by the Minister of Ports, Shipping and Aviation to award this contract toBird Airport Services (Chennai) Pvt. Ltd., for a period of 3 years, upon the recommendation ofthe Cabinet Appointed Standing Procurement Committee. 09. Japan Aid Program for Human Resource Development Scholarships 2023 The Japanese government has agreed to provide 284 million Japanese yen (around Rs. Mn. 611)for the second batch of the 4th time frame under the Human Resource Development ScholarshipProgram implemented under Japanese grant aid. Accordingly the Cabinet of Ministers approvedthe proposal presented by the Hon. President in his capacity as the Minister of Finance,Economic Stabilization and National Policies to sign letters of exchange with the Japanesegovernment and enter into an agreement with Japan International Cooperation Agency toreceive the said grant 10. Introducing a standard operating procedure for granting diplomatic clearance to foreignsea vessels and foreign government or military aircrafts visiting Sri Lanka As a result of Sri Lanka's geographical location in the Indian Ocean, foreign vessels and foreigngovernment or military aircraft regularly visit Sri Lanka. Moreover, other states and potentialinternational organizations are interested in conducting marine scientific research within SriLanka's Exclusive Economic Zone and Sri Lanka's continental shelf. Because of this situation,the need to prepare a standard operating procedure has been recognized to enable the granting ofdiplomatic permissions for those activities. Accordingly the Cabinet of Ministers approvedproposal presented by the Hon. President in his capacity as the Minister of Finance, EconomicStabilization and National Policies to submit the approved Standard Operating Procedures havebeen developed after consultation with all parties. 11. Amendments to the Inland Revenue Act No 24 of 2017 Cabinet approval was granted on 28.06.2023 to introduce amendments to the Inland RevenueAct No. 24 of 2017 for revising the income tax rate levied on the income earned by investing intreasury bonds by the funds such as Employees Provident Fund, Employees Trust Fund,Pension Fund or Gratuity Fund and similar funds to facilitate the local debt optimizationprocess. The bill prepared accordingly by the legal draftsman has received the AttorneyGeneral's clearance. Accordingly, the Cabinet of Ministers approved the proposal presented bythe Hon. President in his capacity as the Minister of Finance, Economic Stabilization andNational Polices to publish the said bill in the Government Gazette and submit to the parliamentconsequently. In the event of any inconsistency between the English translations of this document, theSinhala text shall prevail.