The following decisions were taken by the Cabinet at its meeting held on October 19, 2011.

A dedicated industrial Zone at Kurunegala for Pharmaceutical Products

On a proposal made by Minister of Industry and Commerce Rishad Bathiudeen, measures are underway to construct an Industrial Zone for manufacturing of pharmaceutical products.
A 48 acre block of land in Kurunegala identified in order to promote the local pharmaceutical industry.
The worth of annual consumption of Pharmaceutical Products in the country is Rs 40 billion and the Government is the biggest consumer representing well over 35% of the domestic consumption. It is around Rs.15 billion.

At the moment over 10 reputed pharmaceutical manufacturers' have expressed their willingness to invest in this industry.

Establishment of diplomatic relations with the Republic of Mali

The Cabinet granted approval to a proposal made by Prof. G.L. Peiris, Minister of External Affairs for the establishment of Diplomatic Relations with the Republic of Mali.

Mali a population with 14,159,904 is located in the interior of Western Africa, South West of Algeria. The country is highly dependent on gold mining and agricultural exports for its revenue.

It was observed that out of 54 African Countries. Sri Lanka has diplomatic relations only with 32 States.

Powers of District Secretaries are to be increased

The Cabinet granted approval to increase the powers of District Secretaries enabling the strengthening District administration to suit the necessity of the Government Development Programmes.

All relevant regulations and administrative practices will be revised for taking actions by respective ministries to appoint District Secretaries as Additional Secretaries of their Ministries, vesting powers of the secretaries in them and further for allowing the DS to use the designation as Government Agent concurrently.

Accordingly, Vesting of Powers (to Divisional Secretaries) Act No 58 of 1992 (Special Provisions) Bill prepared by the Legal Draftsman will be presented in Parliament for approval.

Procurement of 140,000 Vials of Rabies Vaccine approved

The Cabinet granted approval to award the tender for the purchase of 140,000 vials of Rabies Vaccine to a company in Germany. This vaccine is recommended by Doctors as first treatment against dog bites.

This procurement based on the recommendation by the Standing Cabinet Appointed Procurement Committee will cost US $ 868,OOO (Rs.97,814,654.00).

Credit Agreement with HSBC and People's Bank to finance the Construction of 210 rural Bridges

The Cabinet granted approval to a proposal made by President Mahinda Rajapaksa for the construction of 210 Permanent Steel Bridges covering the entire Island.

Construction of these bridges connecting the number of villages will greatly facilitate poor communities residing in remote areas to enhance their living standards.

The proposal made by President, in his capacity as the Minister of Finance and Planning to enter into loan agreements with HSBC Bank of UK for sum of Sterling Pounds 28,220,757 and with the Peoples' Bank for a sum of Sterling Pounds 6,779,243.

US Dollars 100 million WB credit for Transforming School Education System as the Foundation of a Knowledge Hub Project

The Cabinet granted approval to enter into financial agreement, with the International Development Association of the WB to obtain a credit of US Dollars 100 million (SDR 64.1 Million) to implement the Education Sector Development Framework and program 2012- 2016.

Under this program it is expected to establish 4,000 well performing primary feeder school networks linking 1,000 secondary school programs to ensure the students’ acquisition of cognitive and soft skills which are demanded by the future knowledge based economy.

320 Secondary Schools and 1200 Primary Schools have been identified for development in 2012 in association with the Provincial Councils and the rest to be developed within a period of five years.