CABNIT DECISION

* Draft convention between governments of Sri Lanka and Grand Duchy of Luxembourg for the avoidance of double taxation and prevention of fiscal evasion with respect to taxes on income and on capital -

The above convention has been negotiated and concluded in keeping with the Government Policy to enhance economic relations between Sri Lanka and Luxembourg.

Sri Lanka is expected to be benefitted through the promotion of foreign investments and earning of foreign exchange as a result of this Convention.

The proposal made by the President to sign the draft convention at government level and to present it in Parliament for approval in terms of Section 97(1)(a) of the Inland Revenue Act No.10 of 2006, was approved by the Cabinet.

* Agreement for co-operation between Sri Lanka and USA to provide technical assistance regarding Sri Lanka’s nuclear and other radio active material used in civilian applications

The United States Department of Energy under its global threat reduction initiative programme has initiated a collaborative project with the Atomic Energy Authority to provide Sri Lanka with technical assistance to facilitate physical protection instruments where high radio activity sources are used.

The aim of this project is to enhance public safety and security.

Cabinet approval has been granted to appoint a Committee comprising a team of officers to study the proposal and make recommendation to the Cabinet.

* Vesting of Ariviyal Nagar incomplete building complex to University of Jaffna to re-establish the Faculty of Agriculture and establish the Faculty of Engineering

The building consists of 17 building units including classrooms, lecture theatres, administrative blocks, auditoriums, hostels, staff quarters, library etc. suitable for the university.

The proposal by Higher Education Minister S.B. Dissanayake to take over the building, renovate it and use it for re-establishing the Agricultural Faculty and to temporarily establish the Engineering Faculty of the University of Jaffna was approved by the Cabinet.

* Outer circular highway project - construction of section from Kadawatha to Kerawalapitiya (Northern Section II)

Total length of the highway is 29.1 km and it is planned to construct in three phases as follows: Kottawa-Kaduwela - 11 km. Kaduwela-Kadawatha - 8.9 km. Kadawatha-Kerawalapitiya - 9.2 km.

Colombo-Katunayake Expressway is to be completed by end of 2012 and the first two phases of the OCH is to be completed by end of 2013.

The proposal made by the President in his capacity as Ports and Highways Minister to proceed with the work of the project was approved by the Cabinet.

* Design, supply and installation of steel fabricated fly-over for Veyangoda railway crossing -

The proposal made by the President to construct a fly-over across the railway line at Veyangoda to overcome difficulties encountered by the public due to gate closures very often, was approved by the Cabinet.

* Formulation of combined programme for promotion of tourism in Sri Lanka

The proposal made by Economic Development Minister Basil Rajapaksa to promote Sri Lanka with a single identity in the international market with all relevant public and private agencies jointly launching a combined programme capable of building a sustainable single image of Sri Lanka was approved by the Cabinet.

* Hambantota Port development project - commencement of business ventures

The construction works of the project (phase 1) to develop a sea port at Hambantota on a decision taken by the government as per a proposal submitted by the President, were commenced and completed as scheduled.

A business plan has been prepared by the Sri Lanka Ports Authority to identify the business ventures.

Proposals were called from interested parties for the commencement of business ventures at the Hambantota Port and those have been evaluated by a Cabinet appointed negotiating committee and a project committee.

The proposal to award the contracts for operation of the following on the recommendations of these Committees, was approved by the Cabinet: Sugar refinery plant, Petro chemical plants, Fertilizer storage/processing/bagging plant.