President’s budgetary proposal deemed unlawful - COPF

•  COPF, Opposition MP asks how state revenue can be used to pay for private sector workers

Colombo, Nov. 12 (Daily Mirror) - The government is heading for trouble over the budget proposal to pay Rs.200 as a daily allowance for estate workers since such state revenue cannot be used to make payments for those employed by the private sector.

The Committee on Public Finance (COPF) of Parliament discussed the legal implications of this budgetary proposal announced by President Anura Kumara Dissanayake.

The President pledged to increase the daily earnings of estate workers to Rs.1,750. The current minimum wage of an estate worker is 1,350 rupees a day. The President proposed to increase the wage to Rs. 1,550 rupees a day from January 2026. Besides, he said Rs. 200 would be added daily by the government as an incentive for them to report to work daily.

The COPF which met yesterday discussed this proposal and concluded that the payment of such an allowance by the government to estate workers who are employed by private plantation companies is unlawful.

A member of the COPF said that it would be discussed during the budget debate.

The COPF is one of the most powerful parliamentary oversight bodies. It comprises a Chair and eleven members appointed by the Committee of Selection. In keeping with parliamentary convention, the Chair is required to be a member of the Opposition, ensuring bipartisan scrutiny over the management of public finances.

The committee is entrusted with the vital task of examining how the government raises and spends public money. Its scope covers the collection of revenue under Article 148 of the Constitution, payments from the Consolidated Fund, and the use of public funds for purposes approved by law. It also reviews the implementation of the Appropriation Act, including transfers of funds, unutilized allocations, and revisions to expenditure within the fiscal year.

In addition, the COPF keeps a close watch on the country’s public debt and debt servicing obligations, and assesses reports and statements submitted under the Fiscal Management (Responsibility) Act, No. 3 of 2003.

The committee has the discretion to determine its own quorum, allowing it to regulate its internal proceedings as part of its broader mandate to uphold transparency and accountability in the public financial system.

Meanwhile, Samagi Jana Balawegaya (SJB) MP for the Matale District Rohini Kaviratne also disputed the legality of this proposal. She warned bureaucrats against execution of such a proposal since it was not legal.