SUMMARY
OF THE CABINET DECISIONS Courtesy
- Government Information
Thursday,
26 July 2007
Revision
of Tariff on Imports from Pakistan
The
Cabinet has granted its approval to a Memorandum submitted by
His Excellency the President Mahinda Rajapaksa, who is also the
Minister of Finance and Planning, on the revision of tariff on
imports from Pakistan under Pakistan-Sri Lanka Free Trade Agreement.
The Pakistan-Sri Lanka Free Trade Agreement (PSFTA) was implemented
by both countries with effect from 12.06.2005. Tariff concessions
under the agreement, as in all other preferential trade agreements,
were offered subject to a negative list. Accordingly products
coming under sensitive areas like agriculture, fisheries, small
and medium industries etc. were placed under the Sri Lanka's negative
list. While 697 products are included in Sri Lanka's negative
list, 541 products are included in the Pakistan's negative list.
One hundred percent tariff concession was granted to 102 products
imported by Sri Lanka and 206 products imported by Pakistan on
the date it was implemented.
Since
most of the products currently imported from Pakistan are included
in the Sri Lanka's negative list under PSFTA, resultant revenue
loss due to proposed tariff reduction of 10 percent Margin of
Preference (MOP) on selected number of items will be marginal.
The Cabinet has granted its approval to issue a Revenue Protection
Order (RPO) in order to reduce general tariff by 10 percent on
MOP basis, bringing total MOP to 40 percent) for the products
coming under Sri Lanka's phasing out schedule under the PSFTA
and to place the RPO before Parliament for approval.
Air
Services Agreement with Australia
The
Cabinet has granted its approval to a Memorandum submitted by
Ports and Aviation Minister Hon. Chamal Rajapaksa on the signing
of air services agreement between Sri Lanka and Australia. Delegations
of aeronautical authorities of Sri Lanka and Australia met in
Canberra in May this year to discuss air services arrangements
between them pursuant to the Agreement entered by both countries
on January 1950. At these negotiations common understanding was
reached by the sides. For the operation of combination passenger
and cargo services for the designated air lines of Sri Lanka unrestricted
capacity, frequency and aircraft type to and from all points of
Australia other than Sydney, Melbourne, Brisbane and Perth: for
services to and from Sydney, Melbourne, Brisbane and Perth a total
of up to 11 services per week, provided that no more than seven
services per week are operated to any one of these points. Therefore,
the Cabinet has granted its approval to sign the already initialed
Air Services Agreement by an accredited representative of Sri
Lanka and thereafter take all necessary steps for its entry into
force.
Awarding
of Contract to SEC
The
Cabinet has granted its approval to a Memorandum submitted by
Education Minister Hon. A.D. Susil Premajayantha on the awarding
the contract of design and construction of goods lift and balance
work at "Isurupaya" building to the State Engineering
Corporation (SEC). The SEC is now engaged in design and construction
of fourth and fifth floors of Isurupaya building and the work
is nearing completion. Yet, goods lift and connecting part of
two buildings are to be constructed which were not included in
the original estimate. Therefore, the Cabinet has granted its
approval to award the design and construction of goods lift area
and the balance work to SEC within the financial allocation of
Rs. 18.5 million.
Building
complex for SLIDA
The
Cabinet has granted its approval to a Memorandum submitted by
Public Administration and Home Affairs Minister Hon. Karu Jayasuriya
on the proposed building complex for the Sri Lanka Institute of
Development Administration (SLIDA). In addition to the training
of public and corporation sector managerial cadres, with the upgrading
of SLIDA as a post-graduate degree awarding institution, the service
provision of this institute also has expanded. The existing lecture
hall and auditorium facilities, IT units, students study areas,
library facilities, vehicle parking space, sanitary services etc.
available in the SLIDA are grossly insufficient for providing
a highly qualitative and efficient service for the institute's
expanded and diverse clientele. It is proposed to construct this
building complex linked to the existing SLIDA building. The building,
which costs Rs. 515 million, will be two blocks comprising six
levels.
Sub-Post
Offices in the North and East are to be re-opened
The
Cabinet has granted its approval to a Memorandum submitted by
Posts and Telecommunications Minister Hon. Rauff Hakeem on the
re-opening of 26 Sub-Post Offices in the Northern and Eastern
provinces. During the past few years, 26 sub-post offices which
were operational in the North and East had to be closed down due
to war situation. Since the people who deserted the areas have
now been resettled, requests have been made to recommence the
postal services. Further, the Ministry's Consultative Committee
members have also raised this issue and it has become necessary
to re-open these sub-post offices. The Cabinet has granted its
approval to obtain Rs. 5.7 million from the Treasury for this
year as an additional provision for the payment of salaries of
26 Sub- Post Masters and Rs. 3.8 million for procurement of equipment
which were destroyed.
A
new Ayurvedic Act
The
Cabinet has granted its approval to a Memorandum submitted by
Indigenous Medicine Minister Hon. Tissa Karalliyadda on a new
Ayurvedic Act. This processing of a new Ayurvedic Act will replace
the present Ayurvedic Act No. 31 of 1961. The Cabinet Memorandum
submitted by Hon. Minister on 12.01.2007 on this subject was forwarded
to the Cabinet on 07.02.2007. It was decided to make necessary
corrections in view of the observation made by the Hon. Minister
of Finance and Planning and re-submit to the Cabinet. The Cabinet
has granted its approval to the corrected version of the draft
that is to be submitted to the Legal Draftsman.
National
Programme to develop Kithul products
The
Cabinet has granted its approval to a Memorandum submitted by
Rural Industries and Self-Employment Promotion Minister Hon. S.B.
Nawinna on the Kithul products development national programme.
Kithul palm that grows in most of the country has been the main
source of sweetener for centuries. The trunk of the palm has been
used as a hard timber. Until recently products like sweet toddy,
treacle etc. made out of Kithul sap were made for a limited domestic
market. With the market expansion for these products, they have
been identified as a rural industry with great potential to strengthen
the rural economy and enhance the quality of life of rural masses.
The need for a national level Kithul products development programme
is strongly felt in view of its potential contribution to uplift
the rural economy by increasing income and self-employment generation
opportunities at rural level. Therefore, the Cabinet has granted
its approval to appoint a National Committee comprising the Secretary
to the Ministry of Rural Industries and Self-Employment Promotion,
who will also be the Chairman, and Secretary to the Ministry of
Science and Technology or his representative, Secretary to the
Ministry of Agricultural Development and Agrarian Services, Secretary
to the Ministry of Environment and Natural Resources or his representative
and the Secretary to the Ministry to which the Export Development
Board (EDB) has been assigned or an officer of the EDB nominated
by him as members.
'Pilisaru'
programme - a national approach for solid waste management
The
Cabinet has granted its approval to a Memorandum submitted by
Environment and Natural Resources Minister Hon. Patali Champika
Ranawaka on the 'Pilisaru Programme-a national approach for solid
waste management in Sri Lanka. Although solid waste management
is the obligatory function of the local government institutions,
it is being poorly performed by them resulting in numerous environmental,
health and sanitation problems. With the increasing urbanization
coupled with the population increase, the issue of waste management
is likely to be the most critical urban environmental problem.
The waste management involves a spectrum of stakeholders including
households, local authorities, Provincial Councils, Ministry of
Local Government and Provincial Councils, private sector service
providers etc. Therefore, this national approach also should facilitate
involving them at all levels. The Cabinet has granted its approval
to implement Pilisaru programme through the Central Environmental
Authority in partnership with the Ministry of Local Government
and Provincial Councils, Provincial Councils and local government
institutions.
Hostels
for Rajarata University students
The
Cabinet has granted its approval to a Memorandum submitted by
Higher Education Minister Hon. Prof. W.A.Wiswa Warnapala on the
construction of hostels for 800 Rajarata University students at
Mihintale. The total number of students in the Rajarata Universit5ry
is about 2,000 and it is planned to increase the intake up to
3,000 by the year 2010. Out of the five faculties three are in
Mihintale. At present only one-third of the student population
has been provided with hostel facilities within the University
premises. The Cabinet has granted its approval for the construction
of two hostel buildings at a total cost of Rs. 360 million and
entrusting the designing of the project to State Engineering Corporation.
NTC
members appointed
The
Cabinet has granted its approval to a Memorandum submitted by
Transport Minister Hon. Dullas Alahapperuma on the appointment
of Members to the National Transport Commission (NTC). According
to the National Transport Commission Act, the NTC consists of
eight members including three ex-officio members representing
the Ministries of Transport, Policy Planning and Finance. Other
five members are appointed by the Minister of Transport with the
approval of the Cabinet from among persons who have had experience
or have qualifications or shown capacity in the fields of transport,
economics, medicine, administration or engineering. The Cabinet
has granted its approval to appoint Prof. Amal Kumarage, Mr. Upasena
Senanayake, Dr.Anil Jasinghe and Mr. Y.P.R.M. Lafir as Members
of the NTC.
The
Cabinet has granted its approval to a Memorandum submitted by
His Excellency the President Mahinda Rajapaksa, who is also the
Minister of Finance and Planning, on the revision of tariff on
imports from Pakistan under Pakistan-Sri Lanka Free Trade Agreement.
The Pakistan-Sri Lanka Free Trade Agreement (PSFTA) was implemented
by both countries with effect from 12.06.2005. Tariff concessions
under the agreement, as in all other preferential trade agreements,
were offered subject to a negative list. Accordingly products
coming under sensitive areas like agriculture, fisheries, small
and medium industries etc. were placed under the Sri Lanka's negative
list. While 697 products are included in Sri Lanka's negative
list, 541 products are included in the Pakistan's negative list.
One hundred percent tariff concession was granted to 102 products
imported by Sri Lanka and 206 products imported by Pakistan on
the date it was implemented. 
The
Cabinet has granted its approval to a Memorandum submitted by
Ports and Aviation Minister Hon. Chamal Rajapaksa on the signing
of air services agreement between Sri Lanka and Australia. Delegations
of aeronautical authorities of Sri Lanka and Australia met in
Canberra in May this year to discuss air services arrangements
between them pursuant to the Agreement entered by both countries
on January 1950. At these negotiations common understanding was
reached by the sides. For the operation of combination passenger
and cargo services for the designated air lines of Sri Lanka unrestricted
capacity, frequency and aircraft type to and from all points of
Australia other than Sydney, Melbourne, Brisbane and Perth: for
services to and from Sydney, Melbourne, Brisbane and Perth a total
of up to 11 services per week, provided that no more than seven
services per week are operated to any one of these points. Therefore,
the Cabinet has granted its approval to sign the already initialed
Air Services Agreement by an accredited representative of Sri
Lanka and thereafter take all necessary steps for its entry into
force. 
The
Cabinet has granted its approval to a Memorandum submitted by
Education Minister Hon. A.D. Susil Premajayantha on the awarding
the contract of design and construction of goods lift and balance
work at "Isurupaya" building to the State Engineering
Corporation (SEC). The SEC is now engaged in design and construction
of fourth and fifth floors of Isurupaya building and the work
is nearing completion. Yet, goods lift and connecting part of
two buildings are to be constructed which were not included in
the original estimate. Therefore, the Cabinet has granted its
approval to award the design and construction of goods lift area
and the balance work to SEC within the financial allocation of
Rs. 18.5 million. 
The
Cabinet has granted its approval to a Memorandum submitted by
Public Administration and Home Affairs Minister Hon. Karu Jayasuriya
on the proposed building complex for the Sri Lanka Institute of
Development Administration (SLIDA). In addition to the training
of public and corporation sector managerial cadres, with the upgrading
of SLIDA as a post-graduate degree awarding institution, the service
provision of this institute also has expanded. The existing lecture
hall and auditorium facilities, IT units, students study areas,
library facilities, vehicle parking space, sanitary services etc.
available in the SLIDA are grossly insufficient for providing
a highly qualitative and efficient service for the institute's
expanded and diverse clientele. It is proposed to construct this
building complex linked to the existing SLIDA building. The building,
which costs Rs. 515 million, will be two blocks comprising six
levels. 
The
Cabinet has granted its approval to a Memorandum submitted by
Posts and Telecommunications Minister Hon. Rauff Hakeem on the
re-opening of 26 Sub-Post Offices in the Northern and Eastern
provinces. During the past few years, 26 sub-post offices which
were operational in the North and East had to be closed down due
to war situation. Since the people who deserted the areas have
now been resettled, requests have been made to recommence the
postal services. Further, the Ministry's Consultative Committee
members have also raised this issue and it has become necessary
to re-open these sub-post offices. The Cabinet has granted its
approval to obtain Rs. 5.7 million from the Treasury for this
year as an additional provision for the payment of salaries of
26 Sub- Post Masters and Rs. 3.8 million for procurement of equipment
which were destroyed. 
The
Cabinet has granted its approval to a Memorandum submitted by
Indigenous Medicine Minister Hon. Tissa Karalliyadda on a new
Ayurvedic Act. This processing of a new Ayurvedic Act will replace
the present Ayurvedic Act No. 31 of 1961. The Cabinet Memorandum
submitted by Hon. Minister on 12.01.2007 on this subject was forwarded
to the Cabinet on 07.02.2007. It was decided to make necessary
corrections in view of the observation made by the Hon. Minister
of Finance and Planning and re-submit to the Cabinet. The Cabinet
has granted its approval to the corrected version of the draft
that is to be submitted to the Legal Draftsman.
The
Cabinet has granted its approval to a Memorandum submitted by
Rural Industries and Self-Employment Promotion Minister Hon. S.B.
Nawinna on the Kithul products development national programme.
Kithul palm that grows in most of the country has been the main
source of sweetener for centuries. The trunk of the palm has been
used as a hard timber. Until recently products like sweet toddy,
treacle etc. made out of Kithul sap were made for a limited domestic
market. With the market expansion for these products, they have
been identified as a rural industry with great potential to strengthen
the rural economy and enhance the quality of life of rural masses.
The need for a national level Kithul products development programme
is strongly felt in view of its potential contribution to uplift
the rural economy by increasing income and self-employment generation
opportunities at rural level. Therefore, the Cabinet has granted
its approval to appoint a National Committee comprising the Secretary
to the Ministry of Rural Industries and Self-Employment Promotion,
who will also be the Chairman, and Secretary to the Ministry of
Science and Technology or his representative, Secretary to the
Ministry of Agricultural Development and Agrarian Services, Secretary
to the Ministry of Environment and Natural Resources or his representative
and the Secretary to the Ministry to which the Export Development
Board (EDB) has been assigned or an officer of the EDB nominated
by him as members.