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DECISIONS TAKEN BY THE CABINET OF MINISTERS AT ITS MEETING HELD ON 02-05-2017

cabinet01.    Amendment to the Explosives Ordinance no 21 of 1956 (Document No – 06)





A committee appointed for making recommendations on amending the above act has made several recommendations including provisions for issuing license for suppliers, validity period of licenses and creating a post called 'Additional Controller of Explosives'. Accordingly, the proposal made by HE the President Maithripala Sirisena, in his capacity as the Minister of Defence, to amend the above act by including those recommendations, was approved by the Cabinet of Ministers.


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2.    National Policy on reconciliation and coexistence (Document No – 08)


Above policy was prepared by discussing with all the relevant parties to affirm reconciliation and coexistence in the country and to prevent a future conflict. The joint proposal made by H.E. the President Maithripala Sirisena, and Hon. Mano Ganeshan, Minister of National Coexistence, Dialogue and Official Languages, to implement the above national policy, was approved by the Cabinet of Ministers.


03.    Thalpitigala reservoir project (Document No – 10)


Thalpitigala Reservoir is planned to be constructed by building a dam across Uma Oya in Badulla District. It expects to provide irrigation water to the area as well as to provide drinking water to Wasanagama, Madulla, Thetilla, and Beramada villages in Kandaketiya Divisional Secretary's Division and to generate electricity of 51 GWh annually. Cabinet has already approved the project at an estimated cost of USD 174 million. The EXIM Bank of China has agreed to provide 85% of funds of the estimate and accordingly, the proposal made by Hon. Prime Minister Ranil Wickremesinghe, in his capacity as the Minister of National Policies and Economic Affairs, to enter into an agreement with the China EXIM Bank in this regard, was approved by the Cabinet of Ministers.


04.    Agreement between Sri Lanka and France on establishing an Office of French Agency for Development (AFD) in Sri Lanka (Document No – 11)


AFD serves about 60 countries in 04 continents through grants and concessionary loans. Office of the AFD has been established attached to French Embassy in 2005 and several projects have already been implemented by that office in priority fields. The proposal made by Hon. Prime Minister Ranil Wickremesinghe, in his capacity as the Minister of National Policies and Economic Affairs, to enter into an agreement for establishment of a new office of the AFD in Sri Lanka and to award them the diplomatic status, was approved by the Cabinet of Ministers.


05.    Green energy development and energy efficiency improvement investment programme – Obtaining funds from AFD for tranche 2 (Document No – 12)


AFD has agreed to provide 30 million Euros to bear a portion of the total cost of USD 260 million of the above program, which is implemented under 3 subprojects. Accordingly, the proposal made by Hon. Prime Minister Ranil Wickremesinghe, in his capacity as the Minister of National Policies and Economic Affairs, to enter into agreements with AFD to obtain the said loan amount, was approved by the Cabinet of Ministers.


06.    Pilot project to establish a Groundwater Monitoring network in 3 selected districts (Document No – 13)


Above project has already been approved by the Cabinet. Project aims to cover Anuradhapura, Polonnaruwa and Monaragala Districts. Estimated cost of the project is 20.63 million Euros and 85% of the cost will be borne by Rabobank of Netherland. Accordingly, the proposal made by Hon. Prime Minister Ranil Wickremesinghe, in his capacity as the Minister of National Policies and Economic Affairs, to enter into relevant loan agreements with Rabobank of Netherland to obtain the said amount, was approved by the Cabinet of Ministers.


07.    Rehabilitation of kankesanthurai harbour (Document No – 14)


Rehabilitation of the above harbour will encourage trade activities in the Northern part of the island. Indian EXIM Bank has agreed to provide a loan of USD 45.27 million in this regard and the project will be handled by Sri Lanka Ports Authority. Accordingly, the proposal made by Hon. Prime Minister Ranil Wickremesinghe, in his capacity as the Minister of National Policies and Economic Affairs, to engage in loan negotiations and enter into relevant agreements with EXIM Bank of India, was approved by the Cabinet of Ministers.


08.    Establishment of National Road Safety Commission (Document No – 18)


Establishment of the above commission has been approved in 2010 for dealing with the challenge of increasing road accidents but it has not been proceeded. Accordingly, the proposal made by Hon. Nimal Siripala de Silva, Minister of Transport and Civil Aviation, to establish the above commission as a public institution with relevant powers and to draft a bill on this purpose by a committee comprised of representatives of relevant institutions, was approved by the Cabinet of Ministers.


09.    Relocation of Bakamoona Bus stand for quality improvement in transport services (Document No – 19)


It has been proposed to construct a new bus stand in Bakamoona town under Rajarata Navodaya, Polonnaruwa District Development Programme. Bakamoona Pradeshiya Sabha has agreed to provide a suitable land to construct the bus stand with facilities to park 07 buses at a time. Accordingly, the proposal made by Hon. Nimal Siripala de Silva, Minister of Transport and Civil Aviation, to construct the bus stand at a cost of Rs. 50 million, was approved by the Cabinet of Ministers.


10.    Regulations for water services Industry in Sri Lanka (Document No – 21)


A fruitful regulation is required to protect water consumer rights, and to attract investments. Presently, it's economic and technical regulation is vested with the Sri Lanka Public Utilities Commission but water supply services by local government agencies and community based organizations are not under its supervision. Accordingly, the proposal made by Hon. Rauff Hakeem, Minister of City Planning and Water Supply, to instruct Legal Draftsman to draft Water Services Industries Bill for regularising this industry, was approved by the Cabinet of Ministers.


11.    Construction of a Urological unit with surgical intensive care unit at the National Hospital of Sri Lanka (Document No – 28)


Current Urological Unit of NHSL was commenced in 1955 and is located in an old building which could not be renovated. The E.A.M. Maliban Textiles Company has agreed to sponsor the construction of a new three storied building to relocate this unit with 80-100 beds and modern facilities at a cost of Rs. 150 million. Accordingly, the proposal made by Hon. (Dr.) Rajitha Senarathne, Minister of Health Nutrition and Indigenous Medicine, to sign a Memorandum of Understanding between E.A.M. Maliban Textiles Company and Ministry of Health Nutrition and Indigenous Medicine in this regard, was approved by the Cabinet of Ministers.

12.    Memorandum of understanding between Sri Lanka and India on cooperation in traditional systems of medicine and homeopathy (Document No – 29)

The proposal made by Hon. (Dr.) Rajitha Senarathne, Minister of Health Nutrition and Indigenous Medicine, to sign the above MoU for exchange of knowledge and technology and to develop bilateral cooperation in these fields, was approved by the Cabinet of Ministers.

13.    Nation Building Tax (Amendment) bill (Document No – 33)

The proposal made by Hon. Ravi Karunanayake, Minister of Finance, to publish in gazette and present in parliament for approval the bill drafted to amend Nation Building Tax Act No 09 of 2009 by including amendments proposed by budget 2017, was approved by the Cabinet of Ministers.

14.    Construction of a four storied building and providing required equipment and facilities to the regional centre of the Ocean University at Panadura (Document No – 34)

Diploma and Higher Diploma courses of NVQ 05 and 06 levels are conducted in 08 regional centres of Ocean University. As the present centre in Dediyawala, Kalutara could not be expanded further, the proposal made by Hon. Mahinda Samarasinghe, Minister of Skills Development and Vocational Training, to construct a new centre in a land belongs to Ministry of Skills Development and Vocational Training at Uyankele Grama Niladhari Division in Panadura Divisional Secretary's Division and to provide necessary equipment and facilities, was approved by the Cabinet of Ministers.


15.    Complete the balance work of the project for enhancing College of Technology Ampara (Document No – 36)


About 1000 students are enrolled annually to this College which offers courses of NVQ 03, 04, 05, and 06 levels. Improvements of this College begun in line with Deyata Kirula Programme in 2013 and has not been completed. The proposal made by Hon. Mahinda Samarasinghe, Minister of Skills Development and Vocational Training, to complete its balance work with 2017 allocations as recommended by the Cabinet Committee on Economic Management, was approved by the Cabinet of Ministers.


16.    Appointment of a committee to decide on fiscal incentives on import of productivity enhancing high-tech automated machinery and equipment (Document No – 40)


Budget 2017 proposed to reduce 75% of PAL from above mentioned imports and the proposal made by Hon. Rishad Bathiudeen, Minister of Industry and Commerce, to appoint a Committee of Officials to make recommendations on received applications in this regard, was approved by the Cabinet of Ministers.


17.    Continue the project on off-shore sand mining and pumping and supplying of sand to the construction industry (Document No – 42)


Sri Lanka Land Reclamation and Development Corporation (SLLRDC) has obtained the permit for above matter and has planned to mine and pump 4 million cubic meters of sand from 10-16 km off the Muthurajawela coast in 2017. Accordingly, the proposal made by Hon. Patali Champika Ranawaka, Minister of Megapolis and Western Development, to follow the procurement procedure to select a suitable institute in this regard, was approved by the Cabinet of Ministers.

18.   Long term solutions for the management of municipal solid waste generated in western region (Document No – 44)


It has been forecasted that about an additional 1300 MT waste will be added daily in 2030 with implementation of Megapolis Master Plan and Port City Project. Accordingly, the proposal made by Hon. Patali Champika Ranawaka, Minister of Megapolis and Western Development, to implement following projects and plans by the Ministry of Megapolis and Western Development, was approved by the Cabinet of Ministers.


•    Take initiatives to stabilize the disturbed land fill at Meethotamulla within 5 months. Develop the area as an urban forest


•    Give powers to Central Environmental Authority to grant environmental approvals

•    Encourage public to dispose segregated waste and to transport only segregated waste to designated centres


•    Start waste disposal and processing centres owned by Local government authorities which more than 50000 families reside.

•    Commence a project to generate electricity from waste


•    Obtain propjet proposals from overseas countries through their Foreign Missions regarding Waste Disposal Project in Aruwakkaru, Puttalam.


•   Transfer the land required for construction of Transfer Station at Kelaniya from Sri Lanka Land Reclamation and Development Corporation (SLLRDC) to the Ministry of Megapolis and Western Development


19.    Conducting a survey to ensure the accuracy for introduction of an analysis equipment using Japanese technology to speedily analyze the ingredients in tea (Document No – 46)


Japan International Cooperation Agency (JICA) and Kawasaki Kiko Company of Japan have agreed to introduce the above equipment. Accordingly, the proposal made by Hon. Navin Dissanayake, Minister of Plantation Industries, to sign an agreement with said institutions for conducting a survey to affirm the accuracy of the equipment with cooperation of Sri Lanka Tea Research Institute and Tea Board, was approved by the Cabinet of Ministers.


20.    A project for provision of solar power systems for public institutions under the programme of Sooryabala Sangramaya (Document No – 50)


Rs. 350 million has been allocated in budget 2017 to convert buildings of public institutions to green energy sources. Accordingly, the proposal made by Hon. Ranjith Siyambalapitiya, Minister of Power and Renewable Energy, to use 75% of these funds for installing solar power systems for selected government hospitals in all districts and the rest 25% for other selected public institutions, was approved by the Cabinet of Ministers.


21.  Buduputh mapiya upahara housing programme to mark Vesak Day Celebrations 2017 of the UN (Document No – 54)


Above programme expects to build houses for homeless parents of Buddhist monks. Accordingly, the joint proposal made by Hon. Wijayadasa Rajapaksa, Minister of Buddha Sasana and Hon. Sajith Premadasa, Minister of Housing and Construction, to identify beneficiaries and to provide assistance subject to a maximum of Rs. 500000 to build houses with maximum 500 square feet for 500 families, was approved by the Cabinet of Ministers.

22.    Upgrading thondaman vocational training centre at Hatton (Document No –.56)


Government of India has agreed to provide Rs. 199 million on the above purpose and accordingly, the proposal made by Hon. U. Palani Thigambaram, Minister of Hill Country New Villages, Infrastructure and Community Development, to sign the relevant MoU, was approved by the Cabinet of Ministers.


23.    Ratification of United Nations convention on the use of electronic communications in international contracts: amendment to electronic transactions act no. 19 of 2006 (Document No – 61)

The proposal made by Hon. Harin Fernando, Minister of Telecommunication and Digital Infrastructure, to publish in gazette and present in parliament for approval the bill drafted by Legal Draftsman to amend the above act, was approved by the Cabinet of Ministers.


24.    Revision of import cess levy (Document No – 62)


The proposal made by Hon. Malik Samarawickrama, Minister of Development Strategies and International Trade, to present the gazette extra ordinary no. 2011/09 dated 21 March 2017 on revision of Cess Levy, in parliament for approval, was approved by the Cabinet of Ministers.


25.    Procurement of Military logistic support vehicles required for peacekeeping operations in the republic of Mali (Document No – 64)


International bids have been called in this regard and 06 institutions have presented bids. The proposal made by H.E. the President Maithripala Sirisena, in his capacity as the Minister of Defence, to award these bids as recommended by the Standing Cabinet Appointed Procurement Committee, was approved by the Cabinet of Ministers.


26.    Colombo National highways project – rehabilitation and improvement of the road section of 7.06 km from Walgama to Diyagama (B452) (Document No – 69)


The proposal made by Hon. Lakshman Kiriella, Minister of Higher Education and Highways, to award the above contract to the lowest responsible bidder as recommended by Standing Cabinet Appointed Procurement Committee, was approved by the Cabinet of Ministers.


27.    Buildings to be constructed at universities of Moratuwa, Uva Wellassa and the University of visual and performing arts (Document No – 70)


The proposal made by Hon. Lakshman Kiriella, Minister of Higher Education and Highways, to award contracts for construction of buildings for above universities as recommended by the Standing Cabinet Appointed Procurement Committee, was approved by the Cabinet of Ministers.

28.    Construction of eye theatre and wards (Stage ii) at General Hospital Kalutara (Document No – 74)


The proposal made by Hon. (Dr.) Rajitha Senarathne, Minister of Health Nutrition and Indigenous Medicine, to award the above contract to the lowest responsible bidder as recommended by Standing Cabinet Appointed Procurement Committee, was approved by the Cabinet of Ministers.


29.    Purchasing mobile laboratory equipment sets for schools (Document No – 79)

Budget 2016 has proposed to provide mobile laboratory equipments to 3000 schools which do not have laboratory facilities and conducts classes up to G.C.E. OL. Accordingly, the proposal made by Hon. Akila Viraj Kariyawasam, Minister of Education, to award the above contract to the bidder recommended by the Standing Cabinet Appointed Procurement Committee, was approved by the Cabinet of Ministers.


30.    Submission of the annual report of the central bank of Sri Lanka for the year 2016 to the parliament (Document No – 85)


A Hon. Prime Minister Ranil Wickremesinghe, in his capacity as the Minister of National Policies and Economic Affairs, has presented the Annual Report 2016 of the Central Bank of Sri Lanka that includes, state of the economy, account activities of the Central Bank, Major administrative provisions adopted according to the finance policy in the last year, adopted laws and statistics to the Cabinet of Ministers, and the Cabinet of Ministers have approved to submit it in the parliament.


31.    New Inland Revenue act (Document No – 86)


The proposal made by Hon. Ravi Karunanayake, Minister of Finance, to publish in gazette and present in parliament for approval, the new Inland Revenue Bill drafted by the Legal Draftsman as proposed by budget 2016, was approved by the Cabinet of Ministers.

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