In a series of moves to bolster Sri Lanka’s socio-economic development, foreign relations, and administrative efficiency, the Cabinet of Ministers met on December 23, 2024, and approved several key proposals. These decisions span a range of sectors, including international cooperation, disaster relief, agriculture, and public administration.
1. MoU between India and Sri Lanka for Multisectoral Grant Aid
The Cabinet gave its approval to sign a Memorandum of Understanding (MoU) between the Government of India and Sri Lanka to implement a grant aid scheme for socio-economic development. Under this agreement, Sri Lanka will receive LKR 2,371.83 million from India to fund 33 development projects in the northern province. These projects will target critical sectors such as education, health, agriculture, fisheries, tourism, and community empowerment. The projects are aimed at improving infrastructure and enhancing livelihoods, fostering long-term economic stability in the region.
2. MoU with UNITAR on Diplomatic Training and Disaster Management
The Cabinet also endorsed an MoU between the United Nations Institute for Training and Research (UNITAR) and Sri Lanka’s Ministry of Foreign Affairs, Foreign Employment, and Tourism. This agreement, valid for three years, will focus on enhancing diplomatic training, crisis management, and the utilization of geo-information technology. It will support the country’s efforts to implement the 2030 Agenda for Sustainable Development, particularly in disaster risk reduction and environmental sustainability.
3. United Nations Convention on Biodiversity Beyond National Jurisdictions
Sri Lanka’s Cabinet approved the signing of the United Nations Convention on the Law of the Sea (UNCLOS) pertaining to biodiversity in areas beyond national jurisdiction. This decision follows the growing concern over the degradation of maritime biodiversity due to increasing human activities. The Convention aims to promote cooperation in securing vast marine areas for conservation, emphasizing global collaboration to protect ocean ecosystems.
4. Agricultural Damage Compensation for Climate-Impacted Farmers
In response to severe climatic conditions that caused widespread damage to agricultural lands, the Cabinet approved a compensation scheme for affected farmers. Approximately 91,300 acres of paddy fields were fully damaged, while an additional 86,225 acres were partially affected. The scheme will allocate up to LKR 40,000 per acre for paddy fields (up to 2 hectares) and for five key crops, including corn, potatoes, and soybeans. Furthermore, the Agriculture Ministry will distribute paddy seeds to help farmers replant their crops.
5. Approval for Rice Importation to Address Shortages
As rice shortages continue to affect Sri Lanka’s market, the Cabinet extended the deadline for private sector rice imports without requiring import control licenses. This extension, approved until January 10, 2025, is intended to alleviate supply disruptions, with the state procurement of 70,000 metric tons of rice continuing as part of the ongoing effort to stabilize rice availability.
6. Solid Waste Management and Economic Revolving System
The Cabinet also approved a proposal to formalize the management of solid waste by local government institutions under the “Clean Sri Lanka” initiative. This project will ensure greater citizen responsibility and active community participation in waste management processes, which is seen as crucial for sustainable urban environments.
7. Capital Grants for Local Government Income-Generating Projects
In a move to strengthen local government institutions’ financial self-sufficiency, the Cabinet approved the provision of capital grants for income-generating projects. These grants will support Pradeshiya Sabhas, with 54 councils identified across the provinces for the 2025-2027 period. The aim is to enhance service delivery and contribute to sustainable development goals.
8. Procurement of Crude Oil Tankers
The Cabinet has approved the procurement of six crude oil tankers under a long-term contract for the period from April 1 to August 31, 2025. The contract will be awarded to M/s Aditya Birla Global Trading (Singapore) Pte. Ltd., following the recommendation of the Special Standing Procurement Committee. This acquisition aims to bolster Sri Lanka’s energy security by ensuring an efficient oil supply chain.
9. Approval of Special Commodity Levy Orders
The Cabinet granted approval for several orders issued under the Special Commodity Levy Act No. 48 of 2007. These orders, published between May and November 2024, will be submitted to Parliament for further review and approval, reflecting ongoing regulatory adjustments in the country’s commodity pricing system.
10. Repeal of Fisheries and Aquatic Resources Act
In line with efforts to tackle illegal, unreported, and unregulated (IUU) fishing, the Cabinet has approved the repeal of the Fisheries and Aquatic Resources Act No. 2 of 1996. The new draft bill, developed with technical assistance from the FAO, aims to strengthen Sri Lanka’s legislative framework for sustainable fisheries management.
11. Efficiency Enhancements in Container Release Operations at Colombo Port
The Cabinet approved a proposal to improve the efficiency of container release operations at Colombo Port. A committee, led by the Minister of Transport, Highways, Ports and Civil Aviation, will review and optimize the current system to ensure timely and efficient clearance of containers, addressing past delays and increasing traffic at the port.
12. New Appointment to Director General of Combined Services
With the recent appointment of Mr. S. Aloka Bandara as the Secretary to the Ministry of Public Administration, the position of Director General of Combined Services became vacant. The Cabinet approved the appointment of Mr. N.U.N. Mendis, a Special Grade officer, to the position to ensure continuity in the management of public services.
13. New Director General of Pensions Appointed
The Cabinet also confirmed the appointment of Mr. Chaminda Hettiarachchi as the new Director General of Pensions. Mr. Hettiarachchi, currently serving as the District Secretary for Trincomalee, will take over the role on January 1, 2025, following the retirement of the current Director General.
