The Committee on Public Finance (CoPF) has approved a Rs. 71.7 billion relief package under Supplementary Estimate No. 03 of 2026 to support communities impacted by the economic fallout of the Middle East conflict. 

Meeting in Parliament on 28 July under the chairmanship of MP Harsha de Silva, the Committee reviewed allocations across fuel, electricity, agriculture, fisheries, and social welfare, while stressing that the package represents a reallocation of existing budgetary provisions rather than an increase in expenditure or borrowing limits.

During the discussion, it was revealed that the largest allocation under the Rs. 71.7 billion relief package, amounting to Rs. 52.8 billion, has been earmarked for the petroleum sector. Officials informed the Committee that the allocation was made to offset potential losses arising from increased fuel landing costs and to ensure the uninterrupted supply of fuel, thereby preventing possible shortages in the country.

Officials further explained that the Rs. 71.7 billion allocation consists of two components. The first is Rs. 52.8 billion reallocated to settle payments relating to relief measures, including fuel subsidies provided during May and June 2026. The second is Rs. 18.9 billion reallocated to replenish the annual budget contingency reserve, which had been utilized to finance the April 2026 fuel subsidy for the Ceylon Petroleum Corporation and other fuel suppliers, fertilizer subsidies for smallholder tea growers, and assistance provided to the fisheries sector.

The Committee was informed that, similar to the Rs. 20 billion Supplementary Estimate reviewed on 11 June 2026, this request would not increase either the expenditure ceiling or the borrowing limit for 2026. It was clarified that the proposal represents only a reallocation of already approved budgetary provisions.

It was also disclosed that the entire Rs. 71.7 billion allocation will be financed from the unutilized balance of the Rs. 500 billion Supplementary Estimate No. 01 of 2026, which had been allocated for relief and recovery measures following Cyclone Ditwah. As at 30 June 2026, only Rs. 243.9 billion of that allocation had been utilized.

Accordingly, the Committee noted that the fuel subsidy should be viewed as a consumer relief measure rather than a subsidy granted to fuel companies, and that it is a temporary intervention introduced in response to the prevailing circumstances.

The Committee was further informed that fuel suppliers, including the Ceylon Petroleum Corporation, received subsidies amounting to approximately Rs. 20,507 million for April 2026 alone. Of this amount, Rs. 15,000 million was allocated to the Ceylon Petroleum Corporation, Rs. 2,340 million to Lanka IOC PLC, Rs. 1,501 million to Sinopec, and Rs. 1,666 million to RM Parks.

The Committee also discussed the overall distribution of the Rs. 71.7 billion relief package, under which Rs. 15 billion has been allocated to the Ceylon Electricity Board, Rs. 8.2 billion for the Aswesuma programme, Rs. 3 billion to support agricultural activities during the Yala cultivation season, Rs. 2.2 billion for smallholder plantation farmers, and Rs. 1.2 billion for the fisheries sector.

The Road Development Authority also briefed the Committee on the progress of projects undertaken following the damage caused by Cyclone Ditwah. Officials stated that the Governments of India and China have pledged assistance for the reconstruction of damaged bridges. They further informed the Committee that construction of the Galagedara and Rambukkana interchanges of the Central Expressway is expected to be completed by the end of 2028. It was also noted that tenders have already been called for the electricity supply system for the expressways and that work is expected to commence within the next three months.

The Committee also discussed the potential impact of the El Niño phenomenon. Chair of the Committee, MP Harsha de Silva, emphasized the importance of strengthening the Disaster Management Statutory Fund to enable the country to respond more effectively to future climate-related events.

In addition, the Committee held an extensive discussion on the determination of the salary of the Auditor General. Views were also exchanged on matters relating to the public sector salary structure. The Committee decided to continue deliberations on these matters at a future meeting before reaching a final decision. (Newswire)

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Sri Lanka’s Criminal Investigation Department (CID) has told Parliament that an investigation into fraudulent import transactions has uncovered the illegal transfer of approximately US$715 million (around Rs. 214.7 billion) overseas through 105 companies between January 2023 and March 2026.

Senior Deputy Inspector General of Police Asanka Karawita, who heads the CID, revealed the details before the Committee on Public Finance (COPF), stating that the funds had been remitted via around 24,300 telegraphic transfers (TTs) without the corresponding import of goods into Sri Lanka.

He said the investigation, launched following complaints from Sri Lanka Customs, found that 105 companies, involving 55 individuals and 227 bank accounts, were linked to the transactions.

According to the CID, the money was transferred using forged invoices and fabricated customs documents submitted to banks. The investigation has also identified the involvement of 13 state and private banks.

Karawita told the committee that one suspect, allegedly connected to 43 companies that transferred around US$43 million overseas, has already been arrested and remanded.

The CID further revealed that investigations indicate the network was linked to an international money laundering operation involving drug traffickers based in Dubai.

He said two key suspects were brought back to Sri Lanka from Dubai with the assistance of INTERPOL and have been remanded in custody, while investigations continue.

The CID’s Financial Crimes Investigation Division and Proceeds of Crime Investigation Division are continuing investigations into the alleged money laundering network. (Newswire)

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The Committee on Public Finance (COPF) today released its final report into the USD 2.5 million cyber fraud linked to Sri Lanka’s foreign debt repayments to Australia, highlighting widespread governance, procedural and operational failures and recommending sweeping reforms.

Key findings from the report:

1. USD 2.5 million stolen – The report concludes that a cybercrime-linked fraud resulted in the loss of USD 2.5 million in public funds during foreign debt repayments to Australia. 
2. Senior officials held responsible – COPF says governance lapses at the level of the Secretary to the Treasury and the Central Bank Governor contributed to the failures that allowed the fraud to occur. 
3. Outdated email system exposed Treasury – The Ministry of Finance was using an outdated Microsoft Exchange Server after security support had ended, while basic cybersecurity measures, including multi-factor authentication, were absent. 
4. Fraud attempts involved multiple countries – The COPF report reveals that suspicious or fraudulent payment instructions were identified in connection with Sri Lanka’s debt repayments involving India, the UK, Germany and Belgium, helping authorities prevent further losses. The USD 2.5 million cyber fraud occurred only in repayments to Australia.
5. Basic verification failures identified – Officials failed to verify lender email domains, relied on unverified email communications and lacked effective internal controls, allowing the fraud to continue for months. 
6. Only four officials suspended – Despite finding system-wide failures across multiple institutions, the report notes that only four mid-level Ministry of Finance officials have been suspended so far. 
7. Special audit and reforms recommended – COPF has called for a special audit of the entire foreign debt repayment process, stronger cybersecurity across government institutions, updated financial regulations and improved public debt management systems. (Newswire)

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The report of the Parliamentary Committee on Public Finance (COPF) on the incident involving the transfer of USD 2.5 million to a third party was tabled in Parliament today.

According to reports, COPF Chairman Harsha de Silva recommended that the National Audit Office conduct an immediate audit of the entire foreign debt repayment process. 

He also called on the Digital Ministry, with the support of the Sri Lanka Computer Emergency Readiness Team (SLCERT), to urgently upgrade the computer systems and digital operations of the institutions affected by the cyberfraud.

Harsha de Silva revealed that COPF inquiries confirmed a cyber fraud had occurred, resulting in the theft of USD 2.5 million. 

He further said that  Parliament itself does not have the authority to conduct an investigation on whether a conspiracy existed within the institutions involved.

The COPF Chair added that the Treasury Secretary, Central Bank Governor, officials from the relevant institutions, SLCERT, and the Attorney General’s Department had fully cooperated with the committee’s inquiries. (Newswire)

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Opposition MP Harsha de Silva has accused the government of pursuing policies that simultaneously burden consumers and farmers, warning that the poorest Sri Lankans are paying the price.

In a post on ‘X’, MP de Silva highlighted two recent decisions: raising taxes on corn imports, which he said has driven up chicken and egg prices for families already struggling to afford protein, and importing 150,000 metric tons of rice, which has left paddy farmers unable to sell their harvest at viable prices.

“The Ministry of Agriculture admitted there is a problem at a recent session of the Parliamentary Committee on Public Finance (COPF),” de Silva noted, adding that the Paddy Marketing Board’s capacity to intervene in the market is limited to just three or four times a year.

He also criticized the 2020 shutdown of the Shakthi Rice Cooperative, established to break the rice oligopoly and support small millers and farmers, without any replacement mechanism.

“Restart Shakthi. Stop policy that punishes the poor from both ends,” de Silva urged, calling for urgent corrective measures to protect both consumers and producers. (Newswire)

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Chairman of the Parliamentary Committee on Public Finance (COPF), MP Harsha de Silva, has directed that a regulator be appointed to address the unchecked spread of online betting and casino advertisements across Sri Lanka.

Speaking during a COPF session, de Silva questioned how such platforms were allowed to operate without licences or oversight, despite openly advertising during cricket matches. 

He noted that some online casinos were even using the Sri Lankan government logo in their promotions, claiming to be licensed operators.

“Using the government’s logo they are telecasting online casinos for every ball in cricket matches. If no licence has been issued, then rewind and watch the last overs, you will see advertisements stating ‘licensed’ with the Sri Lanka logo. How is this happening? Who is approving this?” de Silva asked.

He warned that the absence of regulation was creating a massive legal blind spot, with billions in potential tax revenue slipping away from the state. 

De Silva pressed officials to explain how online casino licences were being issued, or if not, why such advertisements were being allowed to continue unchecked. (Newswire)

Online betting sites are advertising openly across Sri Lanka, yet they operate with zero regulation. How is this allowed?

At our COPF session, I questioned officials on this massive legal blind spot and the billions in lost tax revenue bleeding from the state. Watch the full… pic.twitter.com/j97eEdWMqP

— Harsha de Silva (@HarshadeSilvaMP) June 16, 2026

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The Committee on Public Finance (COPF) convened in Parliament this week (08) to deliberate on the Ministry of Finance’s report regarding the disappearance of US$ 2.5 million held by the Treasury for government debt settlement.

Chaired by MP Harsha de Silva, Finance Secretary Dr. Harshana Suriyapperuma, Central Bank Governor Dr. Nandalal Weerasinghe, and officials from the Sri Lanka Computer Emergency Readiness Team (CERT) joined the discussion.

During the meeting, Central Bank officials informed the committee that they would submit a separate report after reviewing the Finance Ministry’s findings.

COPF Chairman Harsha de Silva stated that once both reports are considered, a final report will be prepared and submitted to Parliament.

The session was also attended by Deputy Ministers Chathuranga Abeysinghe, Kaushalya Ariyarathne, Nishantha Jayaweera, and MPs Ravi Karunanayake, Harshana Rajakaruna, Nimal Palihena, Chithral Fernando, Wijesiri Basnayake, and Lakmali Hemachandra. (Newswire)

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The proposed Finance (Amendment) Bill to amend the Finance Act No. 35 of 2018 has been approved by the Committee on Public Finance (CoPF), chaired by MP Dr. Harsha de Silva.

The key amendment aims to expand telecommunications infrastructure and improve digital connectivity in Sri Lanka. Under the proposal, new telecommunications towers that become operational on or after January 1, 2026, will be granted a five-year tax exemption. The measure was first announced in the 2026 Budget.

The committee also considered amendments to the Telecommunications Levy Act No. 21 of 2011, aimed at updating the legal framework governing telecom taxes and improving transparency in tax administration.

However, CoPF did not approve a proposal that would have allowed telecom operators to claim tax deductions on unpaid customer bills. The committee said granting such relief to a limited number of large companies would be unfair, particularly when similar concessions are unavailable to small businesses.

The committee noted that companies are responsible for collecting taxes from customers and that failures in collection should not reduce government revenue. The proposal will be reconsidered after further clarification.

Meanwhile, the committee also raised concerns over the misuse of the Sri Lankan Government emblem in online gambling advertisements claiming to be “licensed.” Officials informed the committee that no licences have been issued to any online gambling operators in Sri Lanka, prompting instructions for an immediate inquiry.

The committee further approved several gazette notifications relating to tax and economic policy, including the replacement of the cess tax on imported textiles with an 18% VAT from April 1, 2026, and a proposal to exempt disaster relief payments from stamp duty charges. (Newswire)

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The Committee on Public Finance (COPF) was informed that the ‘Rebuilding Sri Lanka’ programme currently operates through an account maintained under the Deputy Secretary to the Treasury.

Auditor General Samudika Jayaratne told the COPF that no statutory fund exists under the name “Rebuilding Sri Lanka” and confirmed that no payments have been made through the account to date.

The update came during a COPF meeting held in Parliament on June 2, chaired by MP Harsha de Silva and attended by Deputy Ministers Chathuranga Abeysinghe and Nishantha Jayaweera, along with MPs Ravi Karunanayake, Harshana Rajakaruna, Champika Hettiarachchi, and Lakmali Hemachandra.

During the meeting, Auditor General Jayaratne and officials also briefed members on the progress of the National Audit Office’s Annual Programme for 2026. (Newswire)

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Leader of the Tamil Progressive Alliance (TPA), MP Mano Ganesan, has requested the Parliamentary Committee on Public Finance (COPF) to inquire into the reallocation of funds set aside for the conduct of Provincial Council Elections.

In a letter addressed to COPF Chairman Harsha de Silva, dated June 01, 2026, Ganesan cited remarks reportedly made by Janatha Vimukthi Peramuna (JVP) General Secretary Tilvin Silva, who stated that funds earmarked for Provincial Council Elections had been utilized by the Government for disaster‑rebuilding and related purposes.

Ganesan stressed that, to his knowledge, Parliament had not approved any transfer or reallocation of such funds to other expenditure heads. 

He warned that if the statement attributed to Tilvin Silva is accurate, it may indicate unauthorized use of public finance without parliamentary sanction.

The TPA leader urged the COPF to examine the facts and determine whether any transfer, reallocation, or expenditure of election funds had occurred in violation of parliamentary approval and financial regulations. 

He requested the committee to take appropriate action within its mandate. (Newswire)

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The Committee on Public Finance (COPF) has approved regulations to grant free 30-day electronic tourist visas (ETA) to citizens of 40 selected countries in a move aimed at boosting Sri Lanka’s tourism industry.

The approval was granted during a recent COPF meeting held in Parliament under the chairmanship of MP Harsha de Silva.

According to a statement issued by Parliament, the proposed regulations under the Immigration and Emigration Act will allow eligible foreign nationals to receive free Electronic Travel Authorisation (ETA) permits for a 30-day stay in Sri Lanka.

Officials said the programme is initially proposed for a one-year period, with the possibility of extending it for several more years following review.

The committee also discussed follow-up action related to the Auditor General’s report on Sri Lanka’s electronic visa system tabled in Parliament in 2024.

Immigration officials informed the committee that action would be taken once the relevant reports submitted to Parliament are officially received by the Department of Immigration and Emigration.

Officials also noted that investigations into the visa system remain ongoing by the police.

The committee was further informed that additional security measures have now been introduced to prevent cyber-related vulnerabilities in the visa application process.

According to officials, visa applicants are now required to provide their date of birth and passport number in addition to the previous reference number when checking application status online.

COPF members also questioned officials regarding foreign tourists allegedly engaging in illegal tourism-related businesses in Sri Lanka.

Officials said such foreign nationals are identified through joint operations conducted with the police during the tourism season, after which their visas are cancelled, and they are deported to their home countries. (Newswire)

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The Committee on Public Finance (COPF) has questioned the Central Bank of Sri Lanka over the financial fraud reported at NDB Bank, raising concerns over weaknesses in internal controls, audit mechanisms, and banking sector oversight.

The matter was taken up when the committee met in Parliament on Tuesday (05) under the chairmanship of MP Harsha de Silva.

According to a statement issued by Parliament, Central Bank officials informed the committee that the fraud had directly contributed to a decline in NDB’s share price and credit ratings.

COPF members questioned how the bank’s internal audit committee, external auditors, board audit committee, and the Central Bank’s Banking Supervision Department had all failed to detect the irregularities.

Central Bank officials told the committee that no unusual activity had been flagged during the period in which the fraudulent transactions had allegedly taken place.

The committee also raised concerns over the same audit committee members who served during the fraud period continuing in their roles and effectively overseeing investigations into their own conduct.

During discussions, COPF stressed the need for greater transparency in external audits and stronger accountability within banking institutions.

The committee also focused on outdated banking security standards, warning that existing technological safeguards were insufficient amid evolving cyber threats.

COPF emphasized the importance of maintaining minimum technology and regulatory standards across all banks and highlighted the need to introduce modern artificial intelligence-based systems to prevent future fraud and strengthen overall banking sector security.

Central Bank officials told the committee that discussions are currently underway on introducing new regulations to improve Fraud Management Systems across banks.

The meeting was attended by Deputy Minister Chathuranga Abeysinghe and several MPs, including Ravi Karunanayake and Shanakiyan Rasamanickam. (Newswire)

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Committee on Public Finance (COPF) Chairman Harsha de Silva says he has not been informed of Treasury Secretary Harshana Suriyapperuma’s appearance before the committee today (30) regarding the US$2.5 million cyber theft from the Treasury.

“I do not know, and I have not been informed. However, I did not accept his refusal to be present today and request for another day. I have written to him and told him that the Committee will meet as planned,” MP Harsha said in a statement on ‘X’.

His comments come as reports emerged that Suriyapperuma, along with senior Finance Ministry officials, will appear before the COPF at 01.00 pm today to provide explanations over the US$2.5 million cyber theft from the Treasury.

Suriyapperuma is reportedly appearing before the COPF today, despite having earlier informed the committee in writing that he was unable to attend today’s session and requested an alternative date after May 5, citing the President’s expected statement in Parliament on the matter.

The COPF meeting is scheduled to proceed this afternoon, with members expected to deliberate on the alleged diversion of USD 2.5 million in Treasury funds, in a case linked to a suspected email scam involving a foreign debt repayment.

The payment, made as part of Sri Lanka’s external debt servicing process, had been redirected to a third party through a fraudulent email resembling that of Australia’s Export Finance Agency. (Newswire)

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Committee on Public Finance (COPF) Chairman MP Harsha de Silva says he intends to summon the Finance Ministry Secretary before the committee regarding the recently reported $2.5 million Treasury cyber fraud. 

Speaking to reporters, MP Harsha de Silva said that the committee is meeting today, during which he intends to propose summoning the Finance Ministry Secretary before the committee. 

“I have summoned the COPF committee members today. I am of the view that the Finance Ministry Secretary must be summoned regarding the Treasury fraud incident. It is essential that he briefs the Parliament. This is a Parliamentary power under the Constitution,” he said. 

MP Harsha de Silva further said that there is no reason for the Finance Ministry Secretary not to appear before the COPF committee. 

“I intend to discuss with committee members today and reach a consensus on summoning the Finance Ministry Secretary and relevant officials before the COPF committee as soon as possible. I believe the government members in the committee will agree to this proposal, as they have no reason to reject,” he added. (Newswire)

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The Department of Motor Traffic has acknowledged that the removal of the Province indication on vehicle number plates was due to the failure of the project. 

During a session with the Parliamentary Committee on Public Finance (COPF), DMT officials revealed that the Province indication on vehicle number plates was introduced during Sri Lanka’s civil war.

“Province indication was introduced to vehicle number plates to enable the Police to identify the origins of the vehicles during the war. This project was introduced together with the Police Department. The number plates were introduced with a Radio Frequency Identification (RFID). However, as the Police did not possess the necessary equipment to read the RFID, we decided to remove the province indicator and RFID from vehicle number plates,” the officials revealed.

They further said that the decision for the removal was also due to the public paying large sums for specified number plates. 

When inquired by the COPF  whether the Police are capable of identifying vehicles now, the DMT officials acknowledged that vehicles cannot be identified in such a manner.

“The Police Department has informed that the system is not required at present, due to no existing war situation. And we do not have any request in this regard,” they added. 

Responding to the disclosure, COPF Chair Harsha de Silva said that the project was considered a total waste of public finance.

He said the project had been introduced by the DMT at a time when the Police Department did not possess the necessary equipment to read Radio Frequency Identification on vehicle number plates. (Newswire)

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The Parliamentary Committee on Public Finance (COPF) has discussed the progress of disaster relief provided to the public affected by Cyclone Ditwah, with officials stating that approximately Rs. 24.4 billion has so far been released under various relief measures announced for those affected. 

While the majority of allowances for house cleaning, purchase of household items, and assistance for schoolchildren have already been distributed, officials explained that delays in housing reconstruction and rental assistance payments have occurred due to processes such as damage assessments and land identification. Officials further clarified the verification procedures and accountability mechanisms in place. Committee members highlighted the difficulties faced by those expecting relief payments and stressed that housing assistance in particular should be expedited.

Officials of the National Insurance Trust Fund (NITF) also explained their financial position and the reinsurance claims the Fund is required to settle following claims submitted by general insurance companies after Cyclone Ditwah. The estimated reinsurance claims payable by NITF currently amount to approximately Rs. 11 billion. Although NITF has not reinsured its risk exposure with an international reinsurer since 2023, officials stated that it has the capacity to settle the existing claims.

It was revealed that the Treasury maintains a significant cash buffer to meet the Government’s daily expenditure requirements, with approximately Rs. 750 billion available by the end of 2025. Due to payments made in December, the cash buffer had declined to this level, leading to increased issuance of Treasury bills from late December to mid-January, which in turn raised interest costs during that period. However, the situation has now stabilized. It was also noted that as the return earned from investing the cash buffer is approximately 2–3 per cent lower than the Government’s annual interest cost, maintaining such reserves entails an opportunity cost.

Attention was also drawn to the progress of the Public Debt Management Office (PDMO), which has been in operation for 14 months. It was observed that 90 percent of total staff recruitment has been completed. Officials have been provided with specialized local and international training to enhance professional capacity.

Although the Central Bank’s auction system is currently used for public debt management activities, steps are being taken to establish an independent system within the PDMO to enable full operational autonomy in the future.

The Committee observed that Sri Lanka’s total domestic debt stock amounts to Rs. 31 trillion, comprising Rs. 15.6 trillion in Treasury bills and Rs. 15.4 trillion in Treasury bonds. The average cost of this total debt is reported at 8.73 percent.

It was further noted that Sri Lanka’s total external debt servicing requirement for 2026 is projected at USD 2,504 million. Expected foreign inflows for that year amount to USD 2,100 million, including USD 858 million in project loans, USD 150 million in World Bank budget support, USD 380 million from the Asian Development Bank (ADB), and USD 800 million from the International Monetary Fund (IMF).

Accordingly, a resource management gap exceeding USD 400 million remains to be addressed for 2026 debt servicing.

The matters were discussed when the Committee on Public Finance met in Parliament last week (17 Feb) under the chairmanship of MP Harsha de Silva, with the participation of Deputy Ministers Chathuranga Abeysinghe and Nishantha Jayaweera and MPs Ravi Karunanayake, Ajith Alahakoon, M.K.M. Aslam, Chitral Fernando, Wijesiri Basnayake, Sunil Rajapaksha, Nimal Palihena, Thilina Samarakoon and Champika Hettiarachchi. (Newswire)

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The Parliamentary Committee on Public Finance (COPF) has instructed officials to establish a legal framework for the Rs. 200 daily attendance allowance granted by the Government to estate workers.

Clarifying matters at length, the Chairman of the Committee emphasized that the Committee has no objection to increasing the wages of estate workers. However, he stated that the legal basis of the mechanism used to make this payment must be discussed. 

It was pointed out that the payment is currently being made under a Memorandum of Understanding (MoU) entered into with private plantation companies, without being gazetted, and that such an arrangement could be terminated at any time. Officials further noted that the Rs. 200 allowance does not qualify for contributions to the Employees’ Provident Fund (EPF).

Officials informed the Committee that the MoU has been entered into with private plantation companies for a period of three years, and that once this period ends, a policy decision would be required if the Government intends to continue the payments.

The Committee Chair pointed out that it is inappropriate to utilize public funds to pay salaries in private institutions without proper financial discipline. Officials stated that the payment is being made as it has been approved by Parliament under the 2026 Budget.

According to the approved budget estimates, the allocation for this payment is categorized as a “development subsidy.” As development subsidies are generally intended to support increased production, the Deputy Secretary to the Treasury (DST) suggested that the payment would be more appropriately termed a “production incentive.” However, it was observed that neither the payments already made for January nor the relevant MoUs specify such a requirement in practice. 

The Committee also questioned whether excluding the Rs. 200 daily allowance from Employees’ Provident Fund (EPF) and Employees’ Trust Fund (ETF) calculations is in compliance with the relevant laws. When asked whether the Attorney General’s advice had been sought regarding the MoUs and related matters, officials stated that such advice had not been obtained.

Accordingly, the Committee emphasized that these problematic areas must be rectified and that a proper legal basis should be established for the payment.

The matter was discussed when the Committee on Public Finance met in Parliament last week (17 Feb) under the chairmanship of MP Harsha de Silva, with the participation of Deputy Ministers Chathuranga Abeysinghe and Nishantha Jayaweera and MPs Ravi Karunanayake, Ajith Alahakoon, M.K.M. Aslam, Chitral Fernando, Wijesiri Basnayake, Sunil Rajapaksha, Nimal Palihena, Thilina Samarakoon and Champika Hettiarachchi. (Newswire)

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The Microfinance and Credit Regulatory Authority Bill was approved by the Committee on Public Finance (COPF) at a meeting held in Parliament on Feb. 10, 2026.

The meeting was chaired by MP Dr. Harsha de Silva, with the participation of Deputy Ministers Chathuranga Abeysinghe, Dr. Kaushalya Ariyaratne and Nishantha Jayaweera, and Members of Parliament Rauff Hakeem and Nimal Palihena.

The Bill seeks to establish the Sri Lanka Microfinance and Credit Regulatory Authority to regulate money lending and microfinance businesses and to protect customers engaged in such activities. It also provides for the repeal of the Microfinance Act, No. 6 of 2016.

The committee chair said the original draft of the Bill, presented in 2024, had been challenged before the Supreme Court. He said constitutional inconsistencies identified by the court appear to have been addressed in the revised draft, which was prepared after consulting stakeholders.

Officials told the committee that the proposed authority will license and regulate individuals and entities engaged in money lending and microfinance businesses. The authority will be governed by a board of directors, and no person will be permitted to conduct a money lending business without a license. Online lending activities will also require licensing.

Officials said customer protection is a primary objective of the Bill. However, certain lenders, including e-commerce operators, will not fall within the scope of the Act.

The committee also discussed whether the Bill sufficiently addresses the social empowerment role of community-based financial institutions, including the possibility of relaxed regulatory fees or simplified compliance requirements. Operational challenges and consumer protection were identified as areas requiring further attention.

Given public concern over legislative reforms, the committee recommended that the Ministry of Finance, Planning and Economic Development conduct awareness programs for stakeholders. As an initial measure, it proposed publishing a set of frequently asked questions.

As the proposed authority will have statutory powers to determine maximum interest rates in lending and deposit sectors, the committee advised that such powers be exercised in a manner that preserves the characteristics of financial instruments used by microfinance institutions.

The delegation of certain powers to Divisional Secretariat offices was also discussed. Officials said small-scale lenders would not be required to travel to Colombo to engage with the authority, as limited administrative functions, including processing applications, would be handled at the Divisional Secretariat level. The committee stressed the need for a robust information technology system to support the process.

At the same meeting, the committee also approved a resolution published in Extraordinary Gazette No. 2464/15 under the Customs Ordinance (Chapter 235) and three orders issued under the Special Commodity Levy Act. (Newswire)

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Opposition MP Harsha de Silva has questioned the legality of delegating spending powers over state funds to political candidates and their representatives by appointing them as chairmen of Praja Shakthi Committees. 

He warned that these committees, which now decide on Samurdhi, roadworks, and local projects, shift control away from neutral public servants to politically aligned figures. 

“This raises serious concerns about impartiality, accountability, and the misuse of public resources. Does this comply with constitutional principles on delegation of powers and public finance?” de Silva asked, in a post on ‘X’.

MP Harsha de Silva further called for clarity and safeguards to protect state institutions from politicization.

The Opposition MP made the inquiries during a recent session of the Parliamentary Committee on Public Finance (COPF).  (Newswire)

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The Parliamentary Committee on Public Finance (COPF) has approved the Regulations Issued under the Imports and Exports (Control) Act, No. 1 of 1969, post consideration.

The COPF Committee took into consideration the Regulations issued under the Imports and Exports (Control) Act, No. 1 of 1969 (as amended) during a meeting of the Committee on Public Finance, chaired by MP Harsha de Silva, in Parliament yesterday (06 Jan).

Accordingly, Regulations issued under the Imports and Exports (Control) Act, No. 1 of 1969(as amended), were presented to the Committee seeking approval to enable tax exemptions, streamlined procedures, and the swift clearance and distribution of relief goods donated by foreign donors to those affected by Cyclone Ditwah, received in the name of the Disaster Management Center or any government institution.

The Committee questioned the Ministry of Finance on the non-establishment of the Disaster Management Fund, despite the existence of the necessary legal provisions and approvals. 

The Committee also raised concerns regarding the delay in establishing the “Rebuilding Sri Lanka Fund” as a statutory fund, noting the potential issues that could arise if further delays persist. 

Accordingly, the Committee urged officials of the Ministry of Finance to take proactive measures in this regard.

Following in-depth deliberations, the COPF Committee approved the Regulations issued under the Imports and Exports (Control) Act, No. 1 of 1969. (Newswire)

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