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Finance Minister Mangala Samaraweera’s proposal and the UNF government’s attempt to change the existing laws to facilitate modern requirements in goods exchange and naval trade and break the monopoly in the naval trade, has been vehemently opposed by several parties within the government, reports say.

This has caused the Finance Minister disgruntlement, according to internal sources. 

The proposals in his 2018 budget to pave the way for foreign investment into the naval industry and develop it and appoint an independent ports regulator, has been challenged by two companies involved in the naval trade and have spent a fortune in order to create opposition from within the government. 

The former Ports and Shipping Minister Mahinda Samarasinghe had also vehemently opposed Samaraweera’s proposal. 

'Lanka News Web' had earlier reported that two companies dominating the naval trade is initiating political pressure against the efforts taken by the government to demolish this monopoly. 

The website further stated that both of these companies had been closely involved with the former Rajapaksa regime and had funded their political campaigns. 

Now an UNF government!

However, in presenting the budget 2019, Finance Minister Mangala Samaraweera referred to the budget proposals as the first ‘UNF’ budget.

He also referred to the budget 2019 as the ‘first UNP budget’ during a media briefing held at the Finance Ministry yesterday. 

He further said, “Now there is no one within the government to oppose the measures taken by the government to bring down the monopoly by just a few in the naval and shipping trade. This is now a United National Front Government.”

These companies engaged in the monopoly of the naval trade, is said to have pumped millions of dollars into the political campaigns of several leading political parties in the country. 

Marikkar to the fore against the mafia!

Meanwhile, MP- S.M. Marikkar said that as the naval trade is dominated and monopolised by only two companies, it should definitely be opened out to others and this monopoly should be broken. 

He noted that his ;party would give their fullest support to the proposal brought forward by Finance Minister Mangala Samaraweera in his budget to open up the naval trade to foreign investors and establish an independent ports regulator. 

Marikkar noted that it was the government’s stance to relax the ocean trade industry and develop the business sector.

(Sri Lanka Mirror)

All government sector employees will be paid Rs. 2500 as an allowance interim monthly. The proposal was part of the budget presented today (05) by Minister of Finance, Mangala Samaraweera.  

The allowance will be paid until the recommendations of the Wages Commission appointed by President Sirisena comes into effect. According to Ministry sources, the allowance will be paid from July onwards. 
 
Accordingly the government has set aside Rs. 40 Billion for the purpose through the 2019 Appropriation Bill. Since coming into power the Yahapalana government has increased the salaries of government employees by 107%.

Officials from the Ministry of Finance confirmed today that reports alleging the UNF government’s efforts to tax children’s savings accounts in an unfair manner are false.

They point out that a withholding tax of 5% will be imposed only if the interest income from savings exceeds Rs. 5000. A senior ministry official said that one should have at least Rs. 1.2 million to get an interest income of Rs. 5000. If one is making an interest income of Rs. 6000 for instance, that person will be only subject to the 5% withholding tax on the additional Rs.1000 as the tax-free limit is Rs. 5000, they added.
 
Furthermore, the official said that a vast majority of children’s savings accounts in the country do not fall under this category and that this would only affect the savings accounts of ‘child millionaires’.

The Government of Norway is providing NOK 60 million (over Rs. 1.2 billion) over a period of three years for mine action in Sri Lanka.
 
"Sri Lanka has been heavily contaminated by landmines, but the country is now approaching its goal of becoming mine-free. This year, Norway holds the presidency of the Mine Ban Treaty, and intends to help Sri Lanka achieve this important goal," said Minister of Foreign Affairs Ine Marie Eriksen Søreide.
 
State Secretary Marianne Hagen announced Norway's contribution at a meeting with Prime Minister Ranil Wickremesinghe in Colombo yesterday. 
 
With the help of national and international organizations, Sri Lanka has carried out extensive mine clearance activities. In December 2018, 94 percent of the mined areas had been cleared. Norway's contribution will support the vital efforts the authorities are making in this area.
 
"Mine clearance efforts are an important part of the reconciliation process, and mean that families who were forced to leave their homes during the war can return home safely," Ms Søreide said.
 
Supporting mine action is part of Norway's obligations under the Mine Ban Treaty, which was adopted in Oslo in 1997. In 2018, the Government provided NOK 325 million for mine clearance efforts in 18 countries. This level of funding will be maintained in 2019. This is also in line with Norway's new humanitarian strategy.
 
The funding provided by Norway will be channeled through two mine clearance organizations that have been working in the country for a long time - the Mines Advisory Group (MAG) and the HALO Trust. Norway's main focus is on humanitarian mine clearance to protect civilians. (Colombo Page)

Political reports are rife that there are attempts to defeat the 2019 Budget presented by Minister Mangala Samaraweera in order to topple the United National Party Government. 
 
According to sources, the conspirators are attempting to defeat the budget vote and establish a caretaker government. 
 
It is said the same individuals behind the October 26 coup are behind these attempts and are currently in discussion with various parties who are part of the government in order to gain their support. 
 
Sources say the group suspect the people will be favourable to the budget presented and therefore have estimated the situation will be unfavourable for them in the future.

The budget proposal for the year 2019 presented by Finance Minister Mangala Samaraweera has received the unanimous approval of the Cabinet of Ministers today.

The Second Reading of the Budget will commence at 2.00 p.m. today. Refresh the page to get the latest updates.

1.58 p.m. 0- Finance Minister Mangala Samaraweera arrives in Parliament1.58 p.m. 0- Finance Minister Mangala Samaraweera arrives in Parliament

2.06 p.m. - Speaker begins proceedings of Parliament.

2.07 p.m. - Second Reading of the Appropriation Bill begins.

2.10 p.m. - Samaraweera says Sri Lanka was able to record a primary surplus in the budget for the first time in over 50 years in 2017.

2.12 p.m. - Says the incumbent government inherited an economic time bomb from the previous administration but points out they were able to able to bring the economy to a better place amidst severe challenges. 

2.15 p.m. - The rupee had appreciated by 1.5% against the dollar as of late. Butwe now have the opportunity to continue the projects that we brought in. We have been able to keep the budget deficit at 4.5% of the GDP. 

2.16 p.m. - Imports were around 10% of the GDP while exports were 14% of the GDP. We believe in economic growth led by free enterprise and private enterprise which is what we introduced in the previous budget.

2.17 p.m. - Samaraweera says that the aim of the budget is to empower its citizens while nurturing the poor.

2. 19 p.m. - Samaraweera says that the rapid rural infrastructure development programme ‘Gamperaliya’ was the ‘first victim’ of the illegal government during the political crisis as they scrapped it . The first Cabinet paper of the current government was to bring it back

2.21 p.m. - The "Enterprise Sri Lanka” low interest credit scheme will be broadened to accommodate more budding entrepreneurs and would be implemented across the island

2.22 p.m. - Religious places to get LKR 1 million as ppposed to LKR 500,000 from Gamperaliya to improve infrastructure facilities.2.22 p.m. - Religious places to get LKR 1 million as ppposed to LKR 500,000 from Gamperaliya to improve infrastructure facilities.

2.23 p.m. - Enterprise Sri Lanka will become the ecosystem for large scale development and networking and the public is encouraged to call 1929 and inform officials about any bank officers who discourage customers coming to get loans.

2.24 p.m. - We will help farmers in Hambantota and several other districts. LKR 250 million has been allocated for the first phase. Warehouse facilities will be made available in  Jaffna and other districts. 

2.29 p.m. - The "Diri Saviya" loan scheme will be developed further to poultry farmers. LKR 800 million allocated for growing new rubber trees increasing rubber tapping due to the shortage of natural rubber. 

2.30 p.m. -  Ceylon Cinnamon will be subjected to compulsory inspections and we will allow a grace period of 12 months for the producers. Balapitiya and Kosgoda training facility have been allocated LKR 75 million. 

2.31 p.m. - Moragahakanda multipurpose project will be finalised by 2020.

2.33 p.m. -  For the Yala and Maha seasons, LKR 12,000 million has been allocated for the construction of waterways in Wayamba, Maha Ela and Minipe. 

2.31 p.m. - LKR 1300 million to be allocated for the construction of new fisheries harbours in Point Pedro and Pesalai. Fish exports have increased by 14%.

2. 40 p.m. - A free glass of milk for every primary school student in the country.

2.41 p.m. - Even though we have developed with new roads and expressways but there are 1 million people with no sanitary facilities in the country. More than 100,000 in Hambantota district have no sanitary facilities. There are 25,000 houses with no washrooms in Monaragala. When this end we will promise that there will be no house without a washroom we will allocate Rs. 4 billion towards this. Every main bus stations and railway stations will have washrooms for men, women and people with disabilities. We will invite private sector companies to operate and manage these facilities. women and people with disabilities. We will invite private sector companies to operate and manage these facilities.

2.43 p.m. - Labour laws in the country will be amended to encourage more women into the labour force. Only 30% of females are part of the working population. We will develop day care centers across the island. The presence of women in senior roles are limited.

2.44 p.m. - Monthly allowance allocated for differently-abled persons to be increased from LKR 3,000 to LKR 5,000. We have allocated LKR 4,320 million for this purpose which will help more than 72,000 our our citizens.

2.50 - p.m. -  We will make initiate a pilot project in Dompe to teach women prisoners skills that would be usueful such as arts and crafts. We have allocated LKR 50 million towards this initiative.

2.51 p.m. -  Resources have been allocated to ensure that we resettle our Muslim refugees in the North.

2.53 p.m. - A "Home Sweet Home" loan scheme will be available newly married couples. These loans will have a repayment period of 25 years with an interest rate of 6% interest rate.

2. 57 p.m. -  As a measure to bring down cost of living and improve economic competitiveness, in last year’s Budget, it was proposed to phase-out all para-tariffs, starting with 1,200 para-tariffs that were removed in November 2017. This process will continue in 2019, where all HS codes with an import Cess will be subject to a phasing out. . 

2. 57 p.m. -  As a measure to bring down cost of living and improve economic competitiveness, in last year’s Budget, it was proposed to phase-out all para-tariffs, starting with 1,200 para-tariffs that were removed in November 2017. This process will continue in 2019, where all HS codes with an import Cess will be subject to a phasing out. . 

3.01 p.m. - 1,000 art graduates will be trained through internships where LKR 25,000 will be paid by the government. We have allocated LKR 300 million has been allocated for this.  

3.02 p.m. - Our migrant workers are faced with significant issues in building a house. As such, we will introduce the “Sihina Maliga” loan scheme, in order to make their ‘dream home’ a reality, under “Enterprise Sri Lanka”. Migrant workers, registered with the Foreign Employment Bureau and currently working abroad, will be able to get a loan of Rs.10Mn where the Government will bear 75% of the interest cost and where the tenure of the loan will be a maximum of 15 years, with a two year grace period.

3.04 p.m. - We will establish industrial estates under Industrial Development Board (IDB) in KKS, Manthai East, Paranthan, Kondachi, Kinniya, Samanthurai & Trincomalee3.04 p.m. - We will establish industrial estates under Industrial Development Board (IDB) in KKS, Manthai East, Paranthan, Kondachi, Kinniya, Samanthurai & Trincomalee

3.06 p.m. - We are launching the Enterprise Innovation Program, which will support the development of innovative new products and technology by Sri Lankan firms. The Program will be implemented over 3 years, Proposed LKR 250 Mn Proposed LKR 50 Mn providing matching grants for proof of concept, prototyping, R&D and technology adoption.

3.08 p.m. - We will remove the minimum employment requirement imposed on the companies predominantly engaged in the Information Technology Services, to be eligible for the special additional deduction of 35% on the salary expenses incurred. 

3.09 p.m. - A Revenue Intelligence Unit will be established at Ministry of Finance, to take steps to assist our main Revenue Collection Departments, such as, Customs, Inland Revenue and Excise, to broaden their revenue collection bases, increase total revenue collected and minimize leakages & evasion. 

3.11 p.m. - The Gem and Jewelry Industry will be supported with the PAL and Customs Duty on the importation of machinery used in lapidaries and the PAL on the un-cut gems imported, will be reduced from 7.5% to 2.5%.

3.14 p.m. - Tourism is a key sector with high potential to contribute to growth in the short term. Recognizing the costs inherent in the sector, Nation Building Tax (NBT) on foreign currency receipts by tourist hotels registered by the Sri Lanka Tourism Development Authority (SLTDA) will be removed. It is proposed to make it mandatory for travel agents to remit funds to hotels in US Dollars when invoiced in US Dollars. The Central Bank will issue directions in this regard. 

3.17 p.m. - Economic Service Charge (ESC) applicable for export sectors which are subject to Corporate Income Tax of 14%, will be reduced to 0.25% from 0.5%. This will be a major boost to exports, IT and tourism.
To support the local construction companies, no foreign construction company will be allowed to tender for Government projects, unless the project is fully foreign financed, without forming a joint venture with a local construction or consultancy company. This will support the local companies to benefit from the transfer of technology. 

In order to further support the Property Development Sector, I propose to : a. Grant residential visas for 3 years to foreign nationals who invest USD 400,000/= or more in condominiums. This process will be implemented this year. This residential visa will not be valid when the foreigner exits from this investment. b. Cess on imported construction material will be reduced by 30%.  

3.24 p.m. - Our investment strategy in the educational sector is driven by the twin objectives of ensuring the availability of infrastructure and creating opportunities for students to excel through improvements in the curricula and teacher training. Our Government’s program of ensuring “13 years of Education” for every child will be further supported this year. As such, we have already allocated Rs.32,000 Mn. to improve the laboratories, class rooms, libraries, sanitary & water facilities, teachers’ quarters, etc

3.27 p.m. -  our curricula will be modernized with a focus on more analytical and creative learning, as opposed to rote learning. Our future investments will be guided by the STEM+A master plan, which is being Allocated LKR 32,000 Mn Proposed LKR 100 Mn Knowledge Driven Skilled Society  finalized. This will allow students to pursue a combination of subjects such as Mathematics with Music or Biology with English.

3.30 p.m. -  I am also delighted to announce the launch of the Scholarship for Educational Excellence - SEE Fund, to facilitate the country’s top performers at Physical Science, Biological Science, Technology, Commerce and Arts, at the Advanced Level Examinations held each year to pursue their undergraduate education at top universities, such as Harvard, MIT, Oxford, Cambridge, etc. The first batch will be chosen from the results of the 2019 ‘A’ Levels in August. 14 scholarships will be given this year to those who top their respective areas. Those selected will be required to return and serve at least 15 years in Sri Lanka. We will also expand the scholarships given in the coming years.

3.32 p.m. - Already LKR 25,000 Mn. has been allocated to meet the infrastructure gaps at our universities with investments, in Theatre Complexes, Professorial Units, Departmental Complexes, Libraries and Canteens. To complement the Medical Faculties at the Wayamba and Sabaragamuwa Universities, professorial units will be established at Kuliyapitiya and Ratnapura Hospitals, while a Faculty of Allied Health Science at the Ruhuna University will also be established, which will enable students to pursue careers in medical related services, which is an urgent requirement in our country. A “State of the Art” Laboratory for research in areas such as cancer, diabetes and infectious deseases will be set up at the Medical Faculty of the Sri Jayawardenapura University.

3.34 p.m. -  Only around 30,000 students enter universities from over 300,000 who sit for the ‘A’ Levels. We will introduce a loan scheme, "My Future" under "Enterprise Sri Lanka" which enables our students to pursue Undergraduate Education at Non-State Universities. A student can draw up to LKR 1.1 Mn. at zero interest, with the repayment starting only after 2 years of graduation, to be repaid over a period of 12 years. 

3.27 p.m. -  There is also a requirement to promote Tamil Medium Teacher Training as a matter of priority. I propose Rs.400Mn to be provided to the Ministry of National Integration, Official Languages, Social Progress & Hindu Affairs.

3. 30 p.m. - There is an urgent need to develop relevant skills in the healthcare sector. We encourage, the private sector to offer internationally accredited training courses for Nurses, where the Government will provide a stipend of LKR 10,000/- per month per trainee, for a period of 2 years. These qualified Nurses will be able to seek employment in non- governmental institutions. A similar apprenticeship program will be encouraged for pharmaceutical professionals. Pharmaceutical companies will hire science graduate apprentices for a 1 year program, to be accredited by an appropriate institution, and the Government will provide a stipend of LKR 15,000/- per month per apprentice for that year.

3. 30 p.m. - There is an urgent need to develop relevant skills in the healthcare sector. We encourage, the private sector to offer internationally accredited training courses for Nurses, where the Government will provide a stipend of LKR 10,000/- per month per trainee, for a period of 2 years. These qualified Nurses will be able to seek employment in non- governmental institutions. A similar apprenticeship program will be encouraged for pharmaceutical professionals. Pharmaceutical companies will hire science graduate apprentices for a 1 year program, to be accredited by an appropriate institution, and the Government will provide a stipend of LKR 15,000/- per month per apprentice for that year.

3. 31 p.m. -  The Sri Lanka Army has come forward to support the Government’s drive to effectively train those interested, especially those from low income backgrounds in agriculture, animal husbandry, ornamental fish, use of heavy machines such as Backhoe’s, Motor Graders, Dozers and also undertake training of electricians, welders, air-conditioning technicians, catering assistants, stewards, carpenters, masons and plumbers. These training courses will be NVQ certified and the training will be undertaken at selected Army camps. The trainees will be given the stipend and the concessionary season ticket already made available to VTA trainees.

3.32 p.m. - Towards  creating a more healthier society,  we have allocated LKR 24,750 Mn in improving the quality of infrastructure, with allocations being provided for the investments in new equipment, rehabilitation of buildings and other infrastructure at hospitals and other such facilities. This is an 38% increase in the provision compared to last year.

3.33 p.m. - LKR 1,625 Mn. has been already allocated to strengthen the Primary Health-care Units, especially in the Uva, Sabaragamuwa Central and the North Central Provinces, with the introduction of systems to coordinate patient-care over time and through the referral networks, facilitating the ability to follow up on patients at risk, which will also support to avoid duplication between providers.3.33 p.m. - LKR 1,625 Mn. has been already allocated to strengthen the Primary Health-care Units, especially in the Uva, Sabaragamuwa Central and the North Central Provinces, with the introduction of systems to coordinate patient-care over time and through the referral networks, facilitating the ability to follow up on patients at risk, which will also support to avoid duplication between providers.

3.34 p.m. - Suwaseriya ambulance service to be expanded islandwide where 300 Base Stations will be set up in 2 years, at a cost of LKR 600 Mn. 100 Base Stations will be set up this year and I propose to allocate LKR 200 Mn for this in 2019.

3.36 p.m. -  We will provide Home Dialysis Machines, while also strengthening the Hemo-Dialysis Centres in 45 hospitals, together with RO Water Plants.

3.38 p.m. - Sports is an integral part of a healthy society and also builds leadership and team spirit. We have already allocated LKR 3800 Mn. towards sports.

3.39 p.m. - In addition, LKR 300 million allocated over two years to upgrade sports stadiums and playgrounds to support our rural youth. The Bernard Aluwihare Sports Stadium in Matale, and the Weerasinghe Mallimarachchi Playground in Kolonnawa, will be upgraded.

3.40 p.m. - We will introduce the “Science at Work” Challenge, where challenges in the following 5 themes will be posed to the Scientific Community to work on, and viable solutions will be supported to be implemented with the allocation of the required finances.  (a) Reducing post-harvest losses in agriculture and fisheries  
(b) Creating global benchmark yields in Paddy and Minor crops  
(c) Addressing Human-Elephant conflict  
(d) Create a 1,500 sq.ft. low-cost livable Housing Units 
(e) Value addition to local medicinal plants and bio- products to position them as Nutra-ceuticals.

3.42 p.m - Under the Urban Re-generation Project (URP), over 8,000 houses have already been completed and over 7,500 houses are being constructed while another 5,000 houses will commence construction. LKR 8,000 million is allocated towards this.
3.43 p.m. - Sukithapurawara" Township Development Program which covers all 9 Provincesis being implemented to enhance inclusive and sustainable urbanization in the country. Rs.3,000 Mn. has been already allocated. I propose to allocate a further Rs.2,000 Mn. to facilitate this Programme.

3.45 p.m. -  Flood and Drainage Management, Enhancement of Drainage Capacity in the Colombo Water Basin, Beira Lake Linear Park & Beddagana Park and the Weras  Ganga Projects are designed to mitigate floods within Colombo and the Greater Colombo areas, for which, LKR 10,900 million is already allocated.

3.46 p.m. - The iconic old Town Hall building in Jaffna was destroyed during the conflict. It is now a timely requirement to reconstruct the Jaffna Town Hall. I propose LKR 700 million for this effort.

3.48 p.m - All Government and Private commercial buildings in the country will be “Disability Friendly” by 2023. It is envisaged that this will be a mandatory requirement for new building approvals from 1st January 2020. All State buildings will be made “Disability Friendly” by 2022.

3.50 p.m.- The “Sahasara” Bus Modernization Program will get priority in the next 5 years to transform bus services across the country. Private Sector Bus Employees will now have better job security with EPF and ETF contributions being made and being eligible to get loan facilities as an incentive for better service towards passengers. A Revenue Support Fund will be established as a transitional arrangement to enable bus owners to be paid on a monthly basis for the kilometer operated, rather than the highly unsatisfactory competition that exists, causing inconvenience to the public, accidents and chaos on our roads. We also commit to introducing within the next few months, starting with the Central and the Western Provinces, pre-paid fare cards, electronic tracking of buses, using GPS and information on next bus and bus schedules, delivered to the palm of the passenger through mobile applications. We have allocated LKR 1000 million towards this.3.50 p.m.- The “Sahasara” Bus Modernization Program will get priority in the next 5 years to transform bus services across the country. Private Sector Bus Employees will now have better job security with EPF and ETF contributions being made and being eligible to get loan facilities as an incentive for better service towards passengers. A Revenue Support Fund will be established as a transitional arrangement to enable bus owners to be paid on a monthly basis for the kilometer operated, rather than the highly unsatisfactory competition that exists, causing inconvenience to the public, accidents and chaos on our roads. We also commit to introducing within the next few months, starting with the Central and the Western Provinces, pre-paid fare cards, electronic tracking of buses, using GPS and information on next bus and bus schedules, delivered to the palm of the passenger through mobile applications. We have allocated LKR 1000 million towards this.

3.52 p.m. - LKR 1300 million allocated for the modern multimodal passenger terminals that will become a reality starting from Makumbura and will include Kandy, Kadawatha, Pettah and Moratuwa. We will ensure the 40% share of the SLTB market and improve efficiency of both the SLTB and private bus operations, by establishing a joint Bus Operation Control Centre connected to live digital data streams throughout the Country, so that bus transport will become an attractive option for the 21st Century.

3.54 p.m. - A concessionary loan “City Ride”, under “Enterprise Sri Lanka”, will be introduced, where the Government will bare 75% of the interest cost for private bus fleet owners to expand their fleets by a total of  1,000 luxury buses.

3.56 p.m. - Three-wheelers will be supported through a concessionary loan "Mini Taxi-Electric Three Wheeler" under “Enterprise Sri Lanka” Loan Scheme to upgrade into electric three- wheelers and small cars that will be more environmentally friendly, safer and more comfortable. Government will bear 75% of the interest rate and the existing three-wheeler should be disposed.

3.58 p.m. - Work on the Colombo City Light Rail Transit (LRT) will commence in 2019, connecting Malabe to Fort, for which LKR 5,000 million is already allocated.

4.00 p.m. - LKR 1175 million allocated for Commando Allowance, Uniform Allowance, Rent Allowance and the Good Conduct Allowance of the Armed Forces, where some have not been increased in some instances, for over 20 years, will be increased from 1st July 2019.

4.02 p.m. -  LKR 500 million allocated for Youth empowerment through enhancement of skills that will be further supported by the ‘Smart Sri Lanka” project.

4.03 p.m. -  I propose to develop an objective, transparent and measurable criteria, to streamline the “Samurdhi” Program in a more effective manner, which will actually facilitate the addition of around 600,000 deserving households. LKR 10,000 million has been allocated for this. Many deserving families have been left out, merely because of their loyalty to other political parties.

4.05 p.m. -  Sri Lanka faces a growing challenge due to its ageing population. To address this issue in a holistic manner, the Government will take steps to introduce a National Pension Plan with a sustainable financing structure.

4.07 p.m. - We will continue investments in creating “Green & Clean” Public Spaces such as, “Haritha Udyana” (eco-friendly parks), which will enable the greening of our cities and villages, whilst facilitating stronger bonds in communities. We will partner the Colombo Municipal Council in its ‘City Beautification’ endeavor. LKR 1000 million has already been allocated.

4.09 p.m. - LKR 2,000 million will be channeled to facilitate the rehabilitation of houses and other infrastructure facilities affected by disasters, while also introducing disaster resilient houses in selected high-risk districts.

4.10 p.m. - We recognize the unique contribution of artists, writers and musicians, towards enriching our society and enhancing Sri Lanka’s cultural value. Thus, our Government has continually supported the development of culture and arts in Sri Lanka. We will also introduce and implement a fair scheme of royalty payments for our artists, so that they continue to benefit from their creations, when such creations are aired/telecast or otherwise publicized. This will protect their creations and provide them with a continuous income source. To further support this initiative, we have made royalty income up to LKR 50,000/- per month, exempt from withholding tax.

4.11 p.m. - The Office for Reparations Bill was passed by this House and work will begin in 2019. We will provide the required resources for the office to be set and staffed adequately and LKR 700 million is allocated for this.

4.13 p.m. -  To fast track development in the North and the East, we will establish the “Palmyrah Fund”, with an investment of LKR 5,000 million spread over 2 years. We invite well-wishers, philanthropists, especially in the Diaspora, to also contribute to this Fund, which will be administered by the Treasury. The funds will be routed through the Government Agents for development activities in the war affected areas. In addition to these development activities, the fund will also channel resources towards programs that addresses alcoholism, drug abuse, youth unemployment, civil society-initiated counseling and support programmes. 

4.14p.m. -  LKR 250 million allocated for the Debt Relief Scheme will be continued through the Cooperative Rural Banks and Thrift and Credit Cooperative Societies.

The tax on cigarettes will be revised from midnight today. All 60mm cigarettes will be subject to a 12% Nation Building Tax (NBT) from June 01. Accordingly the price of a cigarette will increase by LKR 5. 

Tax on casinos will be increased from LKR 200 million to LKR 400 million. Entrance fee for casinos in Sri Lanka to be increased to USD 50.

Sri Lankan President Maithripala Sirisena said today that he will send his own representatives to attend the United Nations Human Rights Council (UNHRC) session currently underway in Geneva, Switzerland.

Addressing a media briefing in Colombo, President Sirisena said these representatives are to appeal to the UNHRC that Sri Lanka should be allowed to handle its own issues. 

"What I want to tell them is don't dig the past and re-open old wounds. Let us forget the past and ensure that we all live in peace", he said.

The Sri Lankan government had co-sponsored a resolution in 2015 to address war crimes and bring accountability while its progress is to come up for discussion during the ongoing session. The UN has acknowledged that Sri Lanka has taken positive initiatives to address human rights concerns and to introduce a more democratic and accountable government.These include the return of military-held civilian land, the establishment of an Office of Missing Persons and the ratification of the Convention on Enforced Disappearances.

Veering from diplomatic protocol

President Sirisena has named opposition MPs Sarath Amunugama and Mahinda Samarasinghe along with Northern Province Governor Dr.Suren Rāghavan as his special representatives. However, informed sources from the Foreign Ministry suggest that this is a complete break in diplomatic protocol and norms, especially when the country's Foreign Minister is also excluded from the official delegation. 

In January, President Sirisena took a group of SLFP MPs on state visit to the Philippines in which he held bilateral discussions with President Rodrigo Duterte and his delegation. Informed government sources said that the inclusion of SLFP MPs in the bilateral discussions was a “waste of time” as they had no authority to make decisions on behalf of the government nor did they wield any positional power. 


Several SLFP MPs., including Dilan Perera, Nishantha Mutuhettigama, Lasantha Alagiyawanna, Dushmantha Mithrapala, Lasantha Alagiyawanna, Angajan Ramanathan and Sriyani Wijewickrema were seen touring in the Philippines with President Maithripala Sriisena in January.

In the same month, President Sirisena again took SLFP General Secretary Dayasiri Jayasekera and S.B. Dissanayake, both opposition MPs,on an official visit to Singapore where he attended a number of events including a Forum of Asia Pacific Ministers and Environment Authorities.

Government sources point out that Sri Lanka will soon become the laughing stock among the diplomatic community if they resort to only nominating opposition MPs for official government delegations.

Sri Lanka Freedom Party (SLFP) General Secretary and MP Dayasiri Jayasekara says relief cannot be granted to citizens through this year's budget as it will further deteriorate the country. 
 
The MP made these claims while speaking to media following an event held at the SLFP Headquarters yesterday. Commenting on it further the MP said : 
 
“It is questionable if a country that is facing an economic downfall can be helped through a budget. I don't think we are able to provide relief to the people at this time. If we do so it will only deteriorate the country further. Therefore what the country needs now is a new social, cultural and economic vision”. 
 
Government response: Political Hypocrisy 
 
A UNP stalwart responding to these comments said that since 2015 as a result of handling the country’s economy carefully that we have been able to provide assistance to the people despite having significant debts to settle. 
 
He pointed out that the Rajapaksa’s, on the other hand, hid the state's debt in government organizations and added false data to show an inflated development while making the country a Chinese colony. He also added that they are now spreading false rumours due to political hypocrisy.

Allowances of tri-forces increased 

The allowances for members of the tri-forces has been increased under the budget proposal for the year 2019 presented by Finance Minister Mangala Samaraweera in parliament yesterday (05). The Commando Allowance, Uniform Allowance, Rent Allowance, Good Conduct Allowance of the Armed Forces, where some have not been increased for over 20 years, will be increased from July 1.

Accordingly, the Good Conduct Pay Allowance, which will be paid with effect from July 01, 2019, are as follows:
 

The Rate of Housing Rent Allowance paid in the month of January 2019 will be increased by 100% with effect from July 01, 2019.

The Uniform Upkeep Allowance will be increased with effect from July 01, 2019, and are as follows:

 Additionally, the Commando Allowance will be increased from Rs 1,000 to Rs 5,000 per month with effect from July 01, 2019.

The fifth budget of the present government to be presented in parliament at 2 pm today by Finance Minister Mangala Samaraweera is aimed at reducing the budget deficit to 4.5 percent of gross domestic product (GDP) from 5.3% in 2018.

Minister Samaraweera's second budget as Finance Minister is themed under ‘Empowering the people, nurturing the poor’ and will focus on increasing the number of entrepreneurs in the country and eliminating all barriers that hinder this objective.

Samaraweera’s budget will have other tough targets, including maintaining the debt-to-GDP ratio to just 70% and limiting recurrent expenditure to 15% of GDP. Capital expenditure will also be limited to only 3.5% of GDP, the Finance Ministry had said. Total public expenditure is estimated to be Rs. 4.5 trillion while revenue is expected to be Rs. 2.4 trillion.

“The Budget will have proposals to expand Enterprise Sri Lanka and improve skills and entrepreneurship opportunities to improve the quality of Sri Lanka’s human resources,” a statement released by the Finance Ministry said on Monday. “Policies needed to empower the poor and reduce poverty will be included in this Budget.” 

The budget deficit in 2015 was 7.6% and improved to 5.3% in 2018 while the government is also currently running a primary surplus.

Finance Minister Mangala Samaraweera presented his second budget titled “Empowering the People, Nurturing the Poor” yesterday in Parliament. Many women’s chambers have commended the many proposals that were included to promote participation of women.

Chiranthi Cooray, Chief Human Resources Officer of Hatton National Bank, at a pre-budget forum organised by Daily FT last year, spoke broadly on human capital-based challenges at national level. She acknowledged the serious lack of women participation in the labour force and highlighted women’s duties as primary caregivers as a key impediment on the participation of women in the labour force.

Samaraweera pointed out that although the female student population at our universities constitute almost 50% or more, women constitute only about 30% of the labour force, often making them financially dependent and thereby dis-empowered. He said that the lack of child and elderly care facilities and inflexible labour laws to be the reasons that women leave the labour force or never enter it at all.

As a solution, Samaraweera said that commercial establishments with more than 250 employees will be directed to provide child-care facilities. Furthermore, selected schools will be supported to establish After-School and Vacation Centres (ACVC) within the school itself, while the private sector will also be facilitated to establish child-care facilities, through the “Rekawarana” Concessionary Loan Schemes of “Enterprise Sri Lanka.

Minister Samaraweera said that the Government will encourage the private sector to support the country’s working mothers, by allowing 50% of the salary cost of the mandatory 3 months maternity leave granted, as an additional deduction, in calculating their corporate taxation, subject to a maximum of Rs. 20,000 per employee per month.

“We will extend this to an additional deduction of 100%, for the 4th month of maternity leave, if so granted. The concession would apply for a 5-year period”, he added.

Samaraweera also said that whilst constituting over 50% of the population, the presence of women in senior positions in business is very limited.

“This has come about due to, numerous social structural and business practices, that result in the exclusion of women from important decision-making roles in society. As such, I propose a sequenced approach to enable greater participation of women in boards of listed companies. The Securities and Exchange Commission will be encouraged to implement this proposal”, he said.

Samaraweera also said that he will lobby the House to support amending the labour laws to allow part- time, flexi hours, home-working, etc., which will facilitate more women to be active participants in our economy.

Last year, for the first time in Sri Lanka,  Samaraweera appointed three women as heads of three leading state media Institutions in the country. He also appointed two women to head the Excise department and Customs department, two of the biggest institutions that bring revenue to the government.

Minister of Foreign Affairs Tilak Marapana visited Italy from 01 – 03 March 2019, and held bilateral discussions on 01 March at the Ministry of Foreign Affairs with Under Secretary of State for Foreign Affairs and International Cooperation of the Italian Republic, Manlio Di Stefano. 

The Foreign Minister stated that Sri Lankan expatriate workers in Italy are required to make a pension contribution amounting to around 9 percent of their salary and that they qualify for a pension after working for 20 years. 

The Minister observed that they collect this contribution together with the employer’s contribution only upon their reaching 68 years of age. He stressed that in such circumstances many of the workers do not get to enjoy this benefit as most of them work only for about 4-5 years in the country.

Minister Marapana requested the Italian authorities to consider adjusting this scheme so that a person would receive his contribution immediately upon relinquishing his employment in Italy, irrespective of the number of years worked and without having to wait until he has reached 68 years. He requested the Italian authorities to consider exempting expatriate workers from contributing to this pension scheme, if there were no legal constraints.

The Minister also brought to the attention of the Italian authorities the difficulties faced by Sri Lankans to submit their visa applications through the outsourced processing agency to obtain visas to enter Italy as tourists or to visit relatives. The Italian Undersecretary agreed to ease the difficulties encountered by Sri Lankan visa applicants.

Minister Marapana further requested that the Italian government consider providing employment to Sri Lankan skilled workers, especially the IT professionals, nurses, and healthcare supporters as Sri Lanka provides special certifications and training in these areas for the workers aimed at foreign employment.

The Foreign Minister later met members of the Sri Lankan community in Italy at a community meeting and discussed a range of issues pertaining to their social and economic aspects of the community members. The Sri Lankan community in Italy presently comprises around 120,000 residing in different parts of the country.