Cabinet Decisions

Mass Media and Information Minister and Cabinet spokesman Keheliya Rambukwella announced the following Cabinet decisions.

To establish a new financial institution by amalgamating the National Development Trust Fund, the National Development Trust Company, and Sri Lanka Savings Bank as a measure to provide better facilities to small entrepreneurs in obtaining credit facilities and other financial services.

This measure will also immensely reduce the overheads made by the separate institutions.

To empower the Attorney General’s Department to prepare the legal structure necessary to bring the National Building Research Organization of the State Engineering Corporation as a legal institution covered by a Parliamentary Act to provide a better and efficient service by the instituiton in implementing programs such as identifying possible landslides in landslide prone areas, and provision of high standard research and service programs.

To enter into agreement, after obtaining approval from the Attorney General’s Department and the Treasury scrutiny, with Horizon Renewable Energy Private Ltd., to covert the Bloemendhal Road garbage dump as raw material and establish a power supply project utilizing this raw material.

This proposal was submitted by the Environment Minister.

To purchase two new transformers required for the Pannipitiya and Sapugaskanda sub stations. The cost of these transformers will be Rs. 150 million.

To annul the taxes amounting 22 percent being levied as printing tax in importing foreign currencies.

These taxes are Port and Aviation Levy, Nation Building Tax and Vat. This measure will help the importers in establishing LCs on a cheaper cost and will become competitive with the black market operators.

Based on consent arrived at the recent Thimpu SAARC Summit to enter into agreements with SAARC countries on service exchange agreements.

To construct a seven storied car park in a Government land adjacent to the Dehiwela Zoo at a cost of Rs. 325 million.

The park will be capable of housing 300 vehicles at the first stage and will provide facilities to park 189 vehicles.

There has been a need for such a park with the surge in tourist arrivals following the end of the war.

To make the four categories of tax strands into three strands and thereby reduce taxes levied for many categories of imports.

Accordingly instead of the tax strands of 2.5, 6, 15 and 28 percent tax levy in future it will be three strands amounting to five, 15, and 30 percent. The earlier Tax levy applicable to import of raw materials representing 2.5 will become zero percent and the earlier 6 percent will get reduced to 5 percent.

The Excise Special Provisions Levy has been restructured to reduce tax levied for import of vehicles and certain other goods.

Removal of cess tax charged for import of certain raw material required by the local industry and maintain/increase cess tax levied for import of certain goods which could affect the local industry.

Appoint a committee consisting representatives of Government Resources and Entrepreneur Development Ministry, Finance and Planning Ministry, Industry and Commerce Ministry, and Central Bank to look into the loss making Government Institutions and recommend necessary steps.