Date: December 18, 2024
This report provides a comprehensive summary of key decisions made by the Cabinet of Ministers of Sri Lanka on December 18, 2024. These decisions span areas such as economic development, public welfare, infrastructure enhancement, and international collaboration.
Key Decisions
1. Procurement Guidelines for Goods, Works, and Non-Consultative Services (2024)
The National Procurement Commission proposed updated procurement guidelines to ensure fair, transparent, and cost-effective processes for goods, works, and services. The guidelines have been approved for submission to Parliament.
2. Review of Non-Government Institutions Owned by the Government
A comprehensive review will be conducted on 340 government-owned institutions and 115 non-commercial entities. This initiative addresses inefficiencies, outdated operations, and overlapping responsibilities. An official committee has been appointed to provide recommendations.
3. Memorandum of Understanding on Digital Transformation
A collaborative agreement with India will leverage their expertise in e-governance, artificial intelligence, and digital infrastructure to support Sri Lanka’s digital transformation initiatives.
4. Financial Grant from India for Police Vehicles
The Government of India has provided a financial grant of LKR 300 million to support vehicle requirements for the Sri Lanka Police, particularly in the northern province. The Cabinet approved entering into a memorandum of understanding with India to utilize this grant.
5. Import of High-Quality Cattle for Milk Production
To enhance domestic milk production, Sri Lanka will import seven fertile bulls and 20,000 doses of cow semen from India and Pakistan. This decision resolves procurement delays in acquiring high-quality cattle.
6. Procurement for Sri Lanka Transport Board
The Cabinet approved the procurement of spare parts, tires, lubricants, and engine sets for the Sri Lanka Transport Board to improve operational efficiency. Separate technical committees will oversee these procurements.
7. Water Supply and Sanitation Project
An additional allocation of LKR 1,180 million has been approved to cover increased project costs due to inflation and VAT adjustments. The funds will be allocated from the 2025 budget.
8. Breakfast Program for Preschool Children
The daily allocation for meals provided to 155,000 preschool children has been increased from LKR 60 to LKR 100 to address rising food prices. The program prioritizes areas with high malnutrition rates.
9. Temporary Care Homes for Women
A new care home will be established in Nuwara-Eliya district in 2025 to support victims of domestic violence. The Cabinet allocated LKR 25 million for its operations and future maintenance.
10. Renovation of Sugathadasa Sports Complex
The Cabinet prioritized the resurfacing of the Sugathadasa Sports Complex track and upgrading facilities to meet international standards for hosting competitions.
11. Foreign Exchange Act (Section 22)
New directives extending restrictions under the Foreign Exchange Act until mid-2025 have been approved. These measures aim to safeguard foreign exchange reserves.
12. Export Development Act Directives
The Cabinet approved revisions to the cess duty structure and granite export limits under the Sri Lanka Export Development Act to facilitate trade and construction activities. The proposals will be submitted to Parliament for approval.
13. Amendment of Trust Ordinance
Revisions to the Trust Ordinance were approved to align with international anti-money laundering standards in preparation for the 2025 evaluation of Sri Lanka’s compliance.
14. Salt Import to Address Shortages
To prevent domestic shortages caused by unfavorable weather conditions, a one-time import of 30,000 metric tons of raw non-iodized salt was approved.
15. Special Commodity Levy Act Implementation
The Cabinet approved revisions to the Special Commodity Levy Act to stabilize the prices of essential food items while protecting local farmers from market disruptions.
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