The Committee on Public Finance informed the Secretary to the Ministry of the Investment Promotion to intervene with immediate effect to arrive at a decision regarding a duty-free shopping mall to be established in the port city of Colombo, as the opinion of the Attorney General and the opinion of the Commission are contradicting with each other.

This was stated at the Committee on Public Finance Chaired by the Hon. (Dr.) Harsha de Silva, Member of Parliament which met (Mar. 12) in Parliament focusing on the legal authority of the Port City Economic Commission to establish a duty-free shopping mall.

Ms. Anoja Herath, Acting Secretary of the Ministry of Investment Promotion stated that the new regulations related to a duty-free shopping complex have been submitted to the cabinet for approval. The Committee Chair also stated that the Attorney General has informed that the Commission does not have the authority to specify duty-free goods up to 5000 dollars. In such a light, the Chair stated that a private law firm hired by the Port City Commission has informed the Committee on Public Finance in a letter that the Port City Commission has full legal powers to legislate for a duty-free shopping mall and that the opinion of the Attorney General is wrong. It was discussed that it is concerning to have been notified that the opinion of the Attorney General is wrong through a private law firm and that exercise the power to make laws without the approval of the Parliament is also concerning.

Officials of the Attorney General's Department who were present at the meeting stated that although the Commission has the power to make laws, it does not have such unfettered powers.

The Committee was also questioned at length about the process of purchasing goods from the duty-free mall, its practicality and impact. Accordingly, the Chair also informed to conduct a comprehensive study and report on the possible impact on the business entities of the sale of goods in Sri Lanka and the impact on the tax process in relation to the Ministry of Finance.

Furthermore, the Chair of the Committee on Public Finance stated that given the context where the Committee had paid attention to this matter previously, not granting approval, it has paved way for the establishment of the duty-free shopping complex more accurately and that the Committee on Public Finance can be pleased in that regard.

The Committee Chair also expressed his displeasure that the Chairman of the Port City Economic Commission did not appear in the recent meetings of the Committee. The officials of the Commission stated that if the Chairman is specifically informed to attend, the Chairman will attend. They also said that the Chairman did not attend because a ceremony was being held under the patronage of the Prime Minister.

However, the Committee Chairman pointed out that the participation of the Chairman and the members of the Commission is important to discuss certain important issues, and thus, it should be looked into. It was also stated that different Commission members appear before the Committee and at least three members out of the 7 members of the Commission should participate in the Committee on Public Finance.

Furthermore, the attention of the Committee was drawn to the non-appointment of a permanent officer for the position of Director General of the Commission.

Furthermore, the Committee pointed out that although the Attorney General has informed that it is against the law to grant temporary licenses for the land parcels of the city, it will continue to happen. The Committee pointed out that relevant steps should be taken to legalize the process of granting temporary licenses. As the Committee had given related recommendations to take relevant steps previously, it was informed to take relevant measures within a week.

Moreover, after taking into consideration the gazette related to the amendments made in the regulations related to the control of the development of the port city, approval was granted.

State Ministers Hon. Anupa Pasqual, Hon. (Dr.) Seetha Arambepola, Memebrs of Parliament Hon. Duminda Dissanayake, Hon. Mayantha Dissanayake, Hon. (Dr.) Nalaka Godahewa, officials from the Attorney General's Department, Colombo Port City Economic Commission and Ministry of Investment Promotion were also present at this Committee meeting held.