Cabinet decisions:

P-TOMS: Govt. to submit objections on SC ruling

CABINET spokesman and Minister Nimal Siripala de Silva said the Government will submit its objections to the Supreme Court on its ruling on P-TOMS after studying the interim order staying certain clauses of the P-TOMS agreement.

He said they hope to canvass for the P-TOMS agreement within the country's legal framework. Nevertheless, the Minister said, as a democratic Government they were ready to abide by the final ruling of the Supreme court, whatever it may be.

US $ 300 m Chinese credit line

The Cabinet gave the green light to go ahead with the US $ 300 million Preferential credit facility extended by the Chinese Government, this week.

Minister de Silva said the Credit facility will be used to fund four mega development projects, the proposed Norochcholai coal power plant, Tank Farm project in Hambantota, Express train link from Ratmalana to Katunayake and the Colombo-Katunayake expressway.

Following the President's forthcoming visit to China, the Government hopes to get the Chinese funding under the credit facility increased upto US $ 500 million, the spokesman said.

Import levy on sugar raised

A proposal submitted by Plantation Minister Anura Priyadarshana Yapa to revive the local sugar industry, the Government decided to raise the import levy on sugar from the current 10 cents to 25 cents per kilo.

The proceeds of the increase will be credited to sugar research and development projects to develop the industry to meet the local demand. The country at present produces only 10 per cent of the annual requirement.

The Cabinet memorandum also proposed capacity building and restructuring of the Sugar Research Institute.

Housing reconstruction: Ultimatum for donors

The Government will issue an ultimatum for donors who have delayed the reconstruction of houses for tsunami victims.

It was disclosed at yesterday's Cabinet briefing that some donors who have been allotted land by the Government to build houses have failed to commence construction.

The district committees will be required to call up meetings of donors and set deadlines to start construction. Failing this, the Government plans to re-allot these lands to tsunami victims and provide financial assistance through the Treasury to build their own houses.

International NGOs are among those who have defaulted. - (MF and UK)

Following a Cabinet memorandum submitted by Prime Minister Mahinda Rajapakse, the Cabinet has approved relief to persons affected by the acquisition of their lands for road development projects. This will benefit people affected as well as who would be affected in future as a result of construction of roads.

Approval has been granted to reserve a five acre land in Katuwana, Homagama to a private firm to build 300 houses for 50 year lease.

A decision was taken to grant relief to the victims affected by the fire at Bogawanthalawa town and reconstruct the Bogawanthalawa town.

The tender for the construction of Oluvil harbour will be awarded to a Danish company.

The consultancy on the Norochcholai coal power project will be awarded to a Swiss consultancy firm.

The Cabinet approved a memorandum submitted by Tourism and Investment Promotion Minister Anura Bandaranaike on his recent investment promotion mission to Singapore where he has identified certain obstacles and made suggestions to implement certain projects.

Approval was granted to a Cabinet memorandum submitted by Finance and Planning Minister Dr. Sarath Amunugama for the assistance under the German Financial Co-operation for Tsunami Recovery Reconstruction of Euro 49 million.

Cabinet approval was granted to Sri Lanka Tourist Board to allocate US$ 1 million for the joint international media campaign. SriLankan Airlines is contributing US$ 2.56 million and the Sri Lanka Tourism Trust will contribute another US$ 1 million to promote and develop tourism in Sri Lanka.