Sitting of Thursday, 20 March 2025
Source: Hansard PDF (parliament.lk) ↗ ·No. 1746596381071973 ·English daily/uncorrected Hansard
Order of business
Speeches load per item. Summaries shown here are AI-generated and labelled; verbatim text is on each speech page.
- 1 Opening Opening of Parliament 1 speeches
- 2 Papers Papers Presented: Annual Reports and Regulations 3 speeches
- 3 Committee report Public Finance Committee Report and Procedural Exchanges 6 speeches
- 4 Petitions Citizens' Petitions 3 speeches
- 5 Oral question Oral Question 1: Government Institutions - Security Companies (Q.1/4/2024) 6 speeches
- 6 Oral question Oral Questions 2-5: Second Round (Multiple Questions) 5 speeches
- 7 Oral question Oral Question by Private Notice: Withholding Tax on Senior Citizens' Deposits and Valaichchenai Paper Factory 16 speeches
- 8 Procedural Procedural Motion: Sitting Hours 1 speeches
- 9 Debate Appropriation Bill, 2025 - Committee Stage Debate 63 speeches
- 10 Procedural Insolvency Bill - Postponement of Committee Stage 2 speeches
- 11 Papers Papers Presented: Finance Act Regulation and Annual Reports 4 speeches
- 12 Debate Inland Revenue (Amendment) Bill - Second Reading, Committee and Third Reading 25 speeches
- The Hon. Speaker procedural
- The Hon. (Dr.) Anil Jayantha - Minister of Labour and Deputy Minister of Economic Development JJB
AI summary Moved the Second Reading of the Bill on behalf of the Minister of Finance, Planning and Economic Development. The House proceeded to the question on the motion.
Parliamentary Procedure Full speech → - The Hon. Speaker procedural
- The Hon. (Dr.) Harshana Suriyapperuma - Deputy Minister of Finance and Planning
AI summary The Deputy Minister said the Inland Revenue (Amendment) Bill implements limited Budget changes from 1 April 2025 and clarified that the 15 per cent tax on service export income is a reduced rate negotiated from the 30 per cent rate previously agreed under the IMF framework. He stated that service exporters would be taxed on net profit, receive foreign tax credits under double taxation arrangements, face a 15 per cent cap, and pay through quarterly self-assessment rather than withholding at bank receipt. He also outlined related Budget tax measures, including higher withholding tax in certain cases with exemptions for low-income depositors, a 45 per cent top rate for liquor, tobacco, betting and gaming, and personal income tax relief through a higher tax-free threshold and adjusted slabs.
Public Finance Full speech → - The Hon. Speaker procedural
- The Hon. (Dr.) Harsha de Silva SJB
AI summary Hon. Harsha de Silva disputed the Deputy Minister’s claims on tax relief, arguing that several measures presented as concessions—such as double taxation relief, taxation on net income, and quarterly payments—were standard tax practices. He said the Government had failed to remove food taxes as promised and was still collecting revenue through the Special Commodity Levy, while also imposing higher taxes on domestic software income and small foreign-earning digital creators. He also criticized the Deputy Minister’s attribution of Central Bank interest rate reductions to the Government and called for legal action, rather than repeated allegations, against politicians accused of corruption.
Public Finance Full speech → - The Hon. Speaker procedural
- The Hon. Deputy Speaker procedural
- The Hon. Ravi Karunanayake NDF
AI summary Hon. Ravi Karunanayake sought a scheduling clarification on the Committee of Selection before opposing the proposed 15 per cent tax on foreign-earned service income, arguing that it would discourage foreign exchange inflows from professionals and IT services that were previously exempt. He said the expected Rs. 10.2 billion revenue was small and counterproductive, proposing alternatives such as minor fuel price adjustments and warning that firms and individuals could route income through low- or zero-tax jurisdictions, keep funds offshore, or relocate. He urged the Government to negotiate with the IMF rather than accept measures he described as damaging, cited SLASSCOM’s export and startup targets, and said the policy was inconsistent with tax-free incentives in Colombo Port City. He also questioned the proposed increase in betting and gaming taxes to 45 per cent, calling for a regulator and a more sustainable revenue strategy.
- The Hon. Deputy Speaker procedural
- The Hon. Anura Karunathilaka - Minister of Urban Development, Construction and Housing JJB
AI summary The Minister supported amendments to the Inland Revenue Act, focusing on PAYE reforms intended to improve fairness in personal income taxation following concerns raised by professionals during the 2023 IMF-linked revenue measures. He argued that taxpayers had sought fair taxation, transparency and efficient public spending, and said the proposed relief would reduce or moderate PAYE liabilities despite salary increases. He illustrated the impact with salary and tax examples for university academics, stating that similar relief would apply across professions paying personal income tax.
- The Hon. Deputy Speaker procedural
- The Hon. Ajith P. Perera SJB
AI summary Hon. Ajith P. Perera opposed the Inland Revenue (Amendment) Bill, arguing that increased taxation would discourage IT-sector entrepreneurs and undermine earlier government commitments to support investment and local enterprise. He also raised concerns over the stalled Milleniya Investment Promotion Zone, stating that substantial public funds had already been spent, land had been acquired and infrastructure initiated, yet the BOI was still turning away investors citing lack of suitable land. He alleged that attempts were being made to cancel the acquisition and return the land to Horana Plantations PLC due to private interests, and urged senior Ministers to ensure the project proceeds as a strategic investment hub for Kalutara District.
- The Hon. Anura Karunathilaka - Minister of Urban Development, Construction and Housing JJB
AI summary The Minister stated that the Millaniya development zone referred to under the Urban Development Authority is a separate matter. He indicated that he has views on it but did not provide further details in this intervention.
Land & Housing Full speech → - The Hon. Ajith P. Perera SJB
AI summary Ajith P. Perera distinguished the proposed Milleniya BOI Zone in the Bandaragama electorate from the UDA project at Millawa, Horana, noting that even officials confuse the two. He argued that around 500 acres, including 244 acres already vested, have been prepared for an investment zone, but progress is being obstructed by leasehold claims held by Horana Plantations. He urged the Government and Prime Minister to prioritize industrial and business development in Kalutara, attract investors in line with the Budget’s investment zone proposals, and avoid relying primarily on taxation while productive land remains unused.
- The Hon. Deputy Speaker procedural
- The Hon. (Dr.) Anil Jayantha - Minister of Labour and Deputy Minister of Economic Development JJB
AI summary The Minister said the Amendment Bill supports the 2025 revenue proposals and defended the proposed maximum 15 per cent tax on service export income, arguing that such taxation has a basis in the Inland Revenue Act, No. 24 of 2017 and is not unprecedented. He said the measure is intended to address fairness and compliance concerns, including among digital earners, while avoiding full exemptions that allow some taxpayers to pay no income tax. He also outlined the Government’s approach to direct tax reform, stating that the personal income tax threshold was raised from Rs. 100,000 to Rs. 150,000 per month due to fiscal constraints, while broader tax-base expansion should focus on reducing avoidance and evasion through technology.
- Question put, and agreed to.
AI summary The House agreed to the question, and the Bill was read a Second time.
Parliamentary Procedure Full speech → - The Hon. Chairman procedural
- The Hon. Ravi Karunanayake NDF
AI summary Hon. Ravi Karunanayake stated opposition to Clause 3(2)(c)(a) and (b), specifically the proposed 15 per cent tax component. He clarified that there was no objection to taxes on tobacco and gaming, and that the objection was being recorded without seeking a vote.
Parliamentary Procedure Full speech → - The Hon. Chairman procedural
- The Hon. Ravi Karunanayake NDF
AI summary Hon. Ravi Karunanayake clarified that he did not oppose taxes on tobacco and gaming. He stated that his objection was limited to the other two matters under Clause 3(2)(c)(a) and (b), and asked that this position not be misinterpreted.
Public Finance Full speech → - The Hon. Chairman procedural
- The Hon. (Dr.) Anil Jayantha - Minister of Labour and Deputy Minister of Economic Development JJB
AI summary Moved that the Bill be read a Third time and requested permission to make corrections to language, typographical, grammatical, numerical, and consequential errors in the Bill.
Parliamentary Procedure Full speech → - Question put, and agreed to.
AI summary The House agreed to the question put, and the Bill was read a third time and passed.
Parliamentary Procedure Full speech →
- 13 Adjournment Adjournment 2 speeches