Cabinet granted approval to a memorandum submitted by President Mahinda Rajapaksa as the Minister of Defence, Public Security, Law and Order allowing provisions of full pension benefits to the service personnel who have been medically condemned due to disability caused as a result of operational duties, terrorist activities and law enforcement duties.

According to the existing regulations these security personnel are being paid their salaries and allowances until they reach the age of 55 years from the date they have been medically boarded out. With the termination of the payment of salaries and allowances on completion of 55 years of age, they would be entitled for a disability pension or a low pension calculated on a percentage pertaining to the short service discharged by them.

Cabinet granted approval to a memorandum submitted by President Mahinda Rajapaksa as the Minister of Nation Building and Estate Infrastructure Development for the procurement of an interest free loan of Rs. 50 million from the General Treasury to increase the production in paper mills at Valachchenai and Embilipitiya of National Paper Company Limited.

The approval of the Cabinet of Ministers was granted to provide time till December, 2009 to restructure the two mills under the National Paper Company Limited and to direct the Board of Investment to expedite the selection of a potential investor paving way for restructuring of the two paper mills.

Cabinet granted approval to a memorandum submitted by Minister of Agricultural Development and Agrarian Services, Maithripala Sirisena for the establishment of contralized laboratory for quantity analysis of fertilizer.

At present, analysis of fertilizer samples are being carried out through laboratories of the Sri Lanka Standard Institution or Industrial Technology Institute of Sri Lanka, and the cost to be incurred for analysis of fertilizer sample is as high as approximately Rs. 12,000.

Therefore cabinet approval was granted to improve the laboratory of the Ceylon Fertilizer Company and maintain same under the technical supervision of the National Fertilizer Secretariat and management of the Ceylon Fertilizer Company at a cost of Rs. 50 million.

Cabinet granted approval to a memorandum submitted by Minister of Agricultural Development and Agrarian Services, Maithripala Sirisena to establish a fund for regulations of the use of fertilizer by utilizing all income collected by the implementation of the Regulation of Fertilizer Act. No. 68 of 1988 and to include a Section in the said Act to provide legal provision for utilization of the fund for the implementing of the Act.

Cabinet granted approval to a memorandum submitted by Minister of Petroleum and Petroleum Resources Development, A. H. M. Fawzie for the installation of an on-line IT system enabling the management of both Ceylon Petroleum Corporation (CPC) and Ceylon Petroleum Storage Terminals Limited (CPSTL) on a network linked with each other.

Accordingly a Enterprises Resource Planning (EPR) system will be installed and commissioned for the downstream petroleum industry in Sri Lanka.

After installation of the EPR system there will be on-line connectivity between all locations of CPC, CPSTL and LIOC and the required data will be available through an integrated network resulting in better coordination among the relevant branches of the three institutions.

Cabinet granted approval to a joint memorandum submitted by Minister of Highways and Road Development, T. B. Ekanayake and Minister of Trade, Marketing Development, Co-operative & Consumer Services, Bandula Gunawardena to get 3,000 Metric Tons from the Sri Lanka State Trading (General) Corporation (STC), as they have indicated their willingness to supply bitumen to RDA on a one year credit basis.

At present RDA purchase bitumen from the Ceylon Petroleum Cooperation.

Cabinet also approved to instruct the Treasury to make arrangements to issue a guarantee to Sri Lanka State Trading (General) Corporation (STC) against the Budgetary Allocation which will be provided to the RDA for road maintenance, widening & improvement of National Highway Network.

The Road Development Authority (RDA) is maintaining 11,890 km of National Highways in the country. For this year, Rs. 7 billion is allocated only for the maintenance and improvement of National Highways under Consolidated Fund.

There will be about 5,000 km of roads which need attention in the North and the Fast.

Cabinet granted approval to a memorandum submitted by Minister of Agriculture Development and Agrarian Services, Maithripala Sirisena for holding of Asian Productivity Organization (APO) Seminar in Sri Lanka.

Asian productivity Organization based in Japan assist in enhancing the Productivity in industrial and agricultural and agriculture sector of member countries in their capacity as an International Organization. At present 18 countries in the Asia-Pacific region has obtained membership of this organization while Sri Lanka has been a signatory to the convention.

Cabinet approved a memorandum submitted by Minister of Vocational and Technical Training, Piyasena Gamage for the exemption from paying of special levy imposed on National Institute of Business Management (NIBM) and donation of Rs. 20 million from the National Institute of Business Management (NIBM) funds to swimming pool complex at Beliatta Technical College.

Cabinet granted approval to a memorandum submitted by Minister of Healthcare and Nutrition, Nimal Siripala de Silva for the infrastructure development at the Akkaraipattuwa Base Hospital in Batticaloa district.

Accordingly an estimated cost of Rs. 88,388,996 (including VAT) will be spent on the reconstruction and renovation of ward rooms, on call rooms for doctors, and a pharmaceutical storage facility.