Advancing Governance: Recent Cabinet Decisions Unveiled

Segregation of Sri Lanka Insurance Corporation's Insurance Business:

The Cabinet, on 13.03.2023, granted approval to initiate measures for the distinct operation of life and general insurance businesses within the Sri Lanka Insurance Corporation. Aligned with the Insurance Industry Regularization (Amendment) Act No. 3 of 2011, and in adherence to Public Enterprise Reforms, the President, in his role as the Finance, Economic Stabilization, and National Policies Minister, proposed the divestiture of Sri Lanka Insurance Corporation Limited's life and general insurance operations to its wholly owned subsidiaries—Sri Lanka Insurance Corporation Life Limited and Sri Lanka Insurance Corporation General Limited.

Value-Added Export of Spices:

Recognizing the potential for increased revenue through value addition, the Cabinet approved the President's proposal, acting as the Investment Promotion Minister, to permit the import and processing of selected spices. Companies with Board of Investment approval aim to transform these spices into high-end value-added products such as oil extracts, oleoresins, and residues for international markets. This move is poised to capitalize on market expansion opportunities and elevate the spice export industry.

Extension of Market Development Facility Programme:

In a strategic collaboration between the Australian Government and the Government of Sri Lanka, an agreement was forged in 2017 for the implementation of the Good Governance for Growth Programme and the Market Development Facility Programme. Acknowledging the positive impact, the Cabinet, under the Finance, Economic Stabilization, and National Policies Ministry, approved the President's proposal to secure an additional grant of Australian dollars 42.1 million. This extension aims to fortify the continued success of these initiatives.

British Council Project for English Teacher Training in Sabaragamuwa:

Furthering educational initiatives, a British Council project has been approved to train English teachers in Sabaragamuwa. The Cabinet's endorsement of this project underscores a commitment to enhancing English language education and professional development in the region.

Empowering English Education in Sabaragamuwa: Capacity Building Initiative with British Council Approved

Enhancing Language Knowledge and Teaching Skills:

A comprehensive capacity-building program is set to unfold in collaboration with the British Council, aimed at elevating language knowledge and teaching skills among English teachers in Sabaragamuwa Province. This initiative entails providing formal training to 700 selected teachers through the Teaching Knowledge Test (TKT) course affiliated with Cambridge University. The Sabaragamuwa Provincial Council is allocating funds amounting to Rs. 51 million for the implementation of this impactful program. The Cabinet has greenlit the proposal, as presented by the Prime Minister in his capacity as the Public Administration, Home Affairs Minister, Provincial Council, and Local Government, paving the way for an agreement between the Sabaragamuwa Provincial Council and the British Council.

Compensation for Yan Oya Reservoir and Left Bank Channel Land Loss:

Acknowledging the challenges faced by families who lost land during the construction of the Yan Oya Reservoir and Left Bank Channel, the Cabinet, on 20.03.2023, granted approval for additional compensation measures. The proposal, presented by the Irrigation Minister, outlines compensation of Rs. 1.8 million for families without alternative irrigated land, settling in outlying areas, and not engaged in farming. Additionally, families unable to receive a 1.5-acre paddy land replacement will be compensated with Rs. 1.8 million. This decision reflects the government's commitment to addressing the needs of those affected by large-scale development projects.

Establishment of Training/Emigration Resource Centres:

In a bid to facilitate foreign job seekers, the Cabinet has approved the establishment of Training/Emigration Resource Centres in Jaffna, Homagama, and Ampara. These centers aim to provide valuable resources and support for individuals seeking employment opportunities abroad. This initiative aligns with the government's commitment to fostering skill development and aiding those pursuing overseas employment.

Empowering Foreign Job Seekers: New Training Centers Approved by Cabinet

Enhancing Foreign Employment Training Facilities:

Acknowledging the critical need for comprehensive training programs tailored to specific destination countries, the Sri Lanka Foreign Employment Bureau is set to establish dedicated training centers. Currently, these programs operate with limited resources in rented facilities nationwide. The Cabinet, responding to the proposal presented by the Labour and Foreign Employment Minister, has approved the establishment of training centers in Jaffna, Homagama, and Ampara Districts under the purview of the Foreign Employment Bureau. These centers aim to provide essential training for individuals preparing for overseas employment opportunities, addressing the current challenges posed by minimal facilities.

Approval of the National Air Navigation Search and Rescue Plan:

The Civil Aviation Authority has formulated the National Air Navigation Search and Rescue Plan in accordance with the provisions of the Civil Aviation Act No. 14 of 2010. Published in the Extraordinary Gazette Notification No. 2347/02 on 28.08.2023 as a regulation, the Cabinet has approved the proposal presented by the Ports, Shipping, and Aviation Minister to table this regulation in Parliament. This move reflects the government's commitment to enhancing air navigation safety and rescue operations.

Sri Lanka National Commission for UNESCO Bill Advancement:

Following Cabinet approval on 20.03.2023, the Legal Draftsman was directed to prepare the Sri Lanka National Commission for UNESCO Bill. Having received clearance from the Attorney General, the Education Minister's proposal to publish the Bill in the Government Gazette and subsequently present it in Parliament has been approved. This marks a significant step in formalizing the country's commitment to UNESCO initiatives.

Amendments to Social Security Contribution Levy Act No. 25 of 2022:

Responding to evolving economic considerations, the Cabinet approved amendments to the Social Security Contribution Levy Act No. 25 of 2022. The revisions include a reduction in the revenue subject to tax from Rs. 120 million to Rs. 60 million, effective from 01.01.2023. The Attorney General's clearance has been obtained for the draft Bill prepared by the Legal Draftsman. Consequently, the President's proposal, in his capacity as the Finance, Economic Stabilization, and National Policies Minister, to publish the draft Bill in the Government Gazette notification and present it to Parliament for concurrence, has been granted approval. These amendments aim to balance economic considerations and fiscal policies in the evolving landscape.

Amendment of the National Savings Bank Act No. 30 of 1971: [ The text doesn’t provide information about this particular topic.]

Strategic Amendments for Financial Resilience and Digital Advancement

Revamping the National Savings Bank Act:

Recognizing the challenges posed by the evolving financial landscape, the National Savings Bank faces hurdles in adapting to the competitive and rapidly changing market dynamics. Acknowledging the limitations within the National Savings Bank Act No. 30 of 1971, the Cabinet has approved a resolution put forth by the President, acting as the Finance, Economic Stabilization, and National Policies Minister. This mandates the Legal Draftsman to prepare an amended draft Bill, targeting specific sections of the Act. The objective is to empower the bank with enhanced monitoring capabilities, identify new business opportunities, and foster a resilient enterprise structure for sustainable development.

Institutional Reforms for Digital Development:

Recognizing the imperative for a robust institution with expansive powers to drive productive implementation of Sri Lankan Digital Development, revisions to the Information and Communication Technology Act No. 27 of 2003 are on the horizon. The envisioned changes include the establishment of a Digital Development Agency, tasked with strategic and policy leadership, monitoring the government's digital development processes, providing investment instructions and supervision, and establishing a national center for Artificial Intelligence. The Cabinet has granted approval to the proposal submitted by the President, who also serves as the Technology Minister, instructing the Legal Draftsman to prepare an amended draft Bill. This initiative aims to propel the nation's digital transformation and integrate artificial intelligence strategies into the broader digital development framework.

Import of GR 11 Rice to Stabilize Market Prices:

In a bid to stabilize rice prices in the market, the Cabinet, on 20.11.2023, approved the import of 50,000 metric tons of rice. Acting on the recommendation of the Food Policy Committee, the Trade, Commerce, and Food Security Minister submitted a proposal to import the GR 11 rice category, similar to Keeri Samba, by the private sector. This strategic move aims to introduce healthy market competition between Keeri Samba and Samba rice, ultimately benefiting consumers by providing price advantages. The approval reflects the government's commitment to ensuring food security and maintaining stability in essential commodity prices.

In conclusion, the recent Cabinet decisions highlight a proactive approach by the Sri Lankan government in addressing critical areas for the nation's development. The recognition of challenges faced by institutions like the National Savings Bank and the subsequent approval for amendments underscores a commitment to financial resilience and adaptability in a dynamic market. Similarly, the strategic institutional reforms proposed for digital development reflect a forward-thinking perspective, aiming to harness the full potential of Sri Lanka's digital landscape.

Furthermore, the government's response to the market dynamics, as seen in the approval for the import of GR 11 rice, demonstrates a commitment to ensuring food security and stabilizing essential commodity prices. These decisions collectively signify a holistic and strategic approach towards economic sustainability, technological advancement, and the overall well-being of the citizens. As these proposals progress into legislative action, they hold the potential to shape a resilient and forward-looking trajectory for the country's economic and digital future.