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The Governor of the Central Bank of Sri Lanka, Dr. Nandalal Weerasinghe, says any political or social uncertainties or reversals of hard earned achievements that exerts significant pressure on the economic reforms agenda could lead to a deviation from the intended policy trajectory.

He said this could potentially result in adverse and irreversible impacts on the economy and the recurrence of the economic and social crisis that Sri Lanka experience in the past two years.

He expressed these views while attending the 37th Annual Conference of the Organisation of Professional Associations of Sri Lanka held on Monday (26) at the Shangri-La Hotel in 5Colombo, under the theme of “Towards Sri Lanka’s Sustained Economic Growth”.

“As you all know the ongoing reform agenda comprises measures that are expected to augment the resilience and stability of the economy, which is what is needed for the medium-long-term growth”, he said.

The Central Bank Governor said maintaining macro-economic stability is a prerequisite to ensure sustained growth trajectory in the medium to long term.

He further said, although these reforms are painful in the short term, it is crucial for all stakeholders to remain committed and ensure the swift implementation of this long-overdue reforms to set the economy on the path towards sustain, inclusive and sustainable growth.

“Despite all such efforts any political or social uncertainties or reversals of hard earned achievements that exerts significant pressure on the reforms agenda could lead to a deviation from the intended policy trajectory, potentially resulting in adverse and irreversible impacts on the economy and recurrence of the economic and social crisis that we experience in the past two years”.

At the same time, policies of macroeconomic stability itself could not be sufficient to propel the economy to a high-growth path that would take Sri Lanka to an advanced country status within a short time, Dr. Weerasinghe said.

He stated that with the current sovereign debt crisis, the government does not have any physical space to drive the economic growth through higher spending or lower taxes as in the past since reinstating fiscal and debt sustainability is the need of the hour at present and also for the future.

(adaderana.lk)

President Ranil Wickremesinghe has challenged Sajith Premadasa and Anura Kumara Dissanayake to participate in an open virtual discussion with the International Monetary Fund (IMF).

This will allow the entire nation to assess the truthfulness of their public promises and statements, he said.

The President also highlighted that altering the agreement with the IMF is not feasible.

He emphasized that such changes could lead to another economic collapse, with Premadasa and Dissanayake’s “misleading promises” of reduced prices and taxes potentially worsening the country’s situation.

He stressed the need to prevent such deceptions.

President Wickremesinghe noted that while he wishes to reduce the prices of goods and lower taxes, such actions can only be achieved by strengthening the rupee and adhering to the agreements with the IMF.

He also urged Sajith Premadasa and Anura Kumara Dissanayake to immediately present any alternative solutions and seek their opinion during the discussion with the IMF.

The President made these remarks during the Special Convention of the United National Party (UNP), held yesterday (25) at the Party Headquarters ‘Sirikotha’, Pitakotte.

Recalling on D.S. Senanayake, the founder of the UNP, President Wickremesinghe said that he was dedicated to preserving Sri Lankan identity.

President Wickremesinghe, following the example of Dudley Senanayake, J.R. Jayawardene and Ranasinghe Premadasa, stated that his inspiration from working with these legends is to prioritize the country’s welfare above all else.

A large number of UNP members attended the special convention, expressing their support for President Ranil Wickremesinghe.

They endorsed his candidacy as an independent for the upcoming Presidential Election on September 21, with the aim of advancing Sri Lanka toward development.

The proposal to express the party’s agreement was presented to the conference by UNP General Secretary, Palitha Range Bandara.

The UNP National Organizer Sagala Ratnayaka confirmed the resolution; it was passed unanimously with all attendees raising their hands in agreement.

Additionally, the President inaugurated the newly renovated Sirikotha party headquarters.

The Colombo High Court sentenced former minister A.H.M. Fowzie to two years of hard labor after he pleaded guilty to misusing a government vehicle.

However, Justice Navaratne Marasinghe suspended the sentence for ten years.

The court also imposed a fine of 400,000 rupees on Fowzie.

The charges stemmed from allegations that he used a jeep, donated by the Dutch government to the Disaster Management Center, for personal purposes. Additionally, he was accused of spending nearly 1,000,000 rupees on the vehicle's maintenance.

The case, brought forward by the Bribery Commission, included four charges related to the misuse of the vehicle.

Veteran film director Sugathapala Senarath Yapa has passed away at the age of 89.

He was highly regarded for his contributions as the creative director behind numerous award-winning films, including “Hanthane Kathawa,” “Pembara Madhu,” and “Induta Mal Mitak”.

President Ranil Wickremesinghe visited the Sri Lanka Ramanna Sect in Narahenpita this morning (27), where he met with the Mahanayake of the Ramanna Sect Aggamaha Panditha Most Ven. Makulawe Wimala Thero, and received blessings.

The President engaged in a brief discussion with the Maha Sangha of the Ramanna Sect led by the Mahanayake and he updated the Maha Sangha on the country's economic recovery and outlined future plans.

Additionally, President Wickremesinghe addressed issues related to education, land concerns in sacred areas, and also briefed the discussions held with Tamil MPs concerning the development of the Northern and Eastern Provinces.

Sri Lankan females have also now been provided with the opportunity to seek employment in South Korea’s fisheries sector, according to the SLBFE.

The Sri Lanka Bureau of Foreign Employment (SLBFE) announced that 120 individuals including three females departed for South Korea yesterday (25) to take up these employment opportunities in the fisheries sector in that country.

This was made possible through a Memorandum of Understanding (MOU) entered into between the South Korean and Sri Lankan governments.

The program is being implemented by the Sri Lanka Bureau of Foreign Employment (SLBFE).

Cabinet approval has been granted to prepare a draft bill introducing a new law concerning the rights of the indigenous community in Sri Lanka.

Approval of the Cabinet of Ministers was granted in May 2024 to the joint proposal by the then Minister of Justice, Prison Affairs and Constitutional Reforms and the Minister of Buddha Sasana, Religious and Cultural Affairs concerning the introduction of the new law.

At that meeting, it was decided to further analyze the concept paper presented to prepare the draft bill with the participation of all parties concerned.

Accordingly, the relevant fundamental draft bill was further improved subsequent to several rounds of discussions with the participation of officers in the Ministries of Lands, Wildlife and Forest Conservation, Environment, and Finance, the Attorney General’s Department, the Department of the Legal Draftsman, and stakeholders interested in the relevant sector headed by the Secretary to the Prime Minister.

Based on the discussions, the Cabinet approved the joint proposal, instructing the Legal Draftsman to prepare a draft bill based on the aforementioned fundamental draft.

The transportation of solid waste by train commenced today (25), for the first time in the country’s history.

The waste, collected from the Wanawasala Garbage Exchange Center, was transported to the Aruvakkadu landfill project in Puttalam by train.

A total of 20 large containers were loaded onto train number 756, which completed the journey to Puttalam before the waste was transferred to the Aruvakkadu landfill.

Incumbent Ranil Wickremesinghe, who contests the presidential election as an independent candidate, has released his official theme song, ‘Puluvan Sri Lanka’.

It is now available on social media.

All postal workers' leave has been suspended until after the elections.

Deputy Postmaster General Rajitha Ranasinghe said that this decision was made due to the crucial responsibilities associated with the presidential election.

He added that if leave is necessary for essential reasons, it can be requested through the Provincial Deputy Postmaster General.

Commissioner General of the Excise Department M.J. Gunasiri dismissed claims of significant arrears in three major government revenue sources—namely the Inland Revenue Department, Sri Lanka Customs, and the Excise Department—as myths.

Speaking at the press briefing titled “Collective Path to a Stable Country” held at the Presidential Media Centre (PMC), today (26), he clarified that the outstanding tax amount for these three institutions totals only Rs.90 billion. He also noted that it is typical for any country to have 3%-5% of its total tax revenue in outstanding taxes.

Commissioner General Gunasiri further highlighted that these three institutions achieved record revenue in 2023, surpassing Rs.3 trillion. Additionally, after 25 years, they succeeded in creating a surplus in the primary account.

Addressing the media personnel, Commissioner General of Excise further explained;

The three institutions under the Ministry of Finance—the Inland Revenue Department, Sri Lanka Customs, and the Excise Department—work within a legal framework to collect state revenue. Despite some groups spreading misinformation about large tax arrears, the actual total unpaid taxes for these institutions are under Rs.90 billion. Most of these arrears are from government entities, and legal actions are underway to recover the funds, meaning these amounts should be considered deferred taxes. Once the judicial process is completed, recovery is possible. Additionally, a tax deficit of 3%-5% of total tax revenue is typical for any country. Nevertheless, overall state tax revenue has seen a significant increase over the past two years.

In 2023, the Inland Revenue Department, Sri Lanka Customs Department, and Excise Department collectively achieved the highest revenue in history, surpassing Rs.3 trillion. Notably, after 25 years, they managed to create a surplus in the primary account.

Focusing on the Excise Department, it generated an income of Rs.179 billion in 2023, with a target set at Rs.232 billion for 2024. By August 22, 2023, the department had earned Rs.106.5 billion, whereas by August 2024, it had earned Rs.132.7 billion. This represents a growth of 24.6% compared to the previous year.

The Excise Department generates revenue through license fees: Rs. 15 million for a municipal council, Rs. 12.5 million for another municipal council, and Rs. 10 million for a Pradeshiya Sabha. Licenses for manufacturing plants are set at Rs. 25 million each. As of August 20 this year, the department has earned Rs. 132.4 billion. In 2023, the department had an outstanding tax amount of Rs. 1.04 billion, with Rs. 609 million collected by February of this year. The remaining tax arrears are currently under court proceedings.

Deputy Commissioner General (Tax Policy, International Affairs and Legal) of the Inland Revenue Department B.K.S. Shantha;

With the country’s recovery, tax revenue targets were surpassed last year. The Inland Revenue Department’s revenue target for 2024 is set at Rs.2, 024 billion, with plans to collect 40% of this amount in the first four months and the remaining 60% over the last six months.

To enhance efficiency, a Risk Management Unit has been established to streamline the tax revenue process. Currently, Rs.1, 066 billion in tax revenue is suspended due to on-going court cases. The department also had Rs.188 billion in tax arrears, of which Rs.104 billion are being recovered thanks to the dedicated efforts of the Excise Department’s employees. The remaining Rs.84 billion in outstanding taxes are in the process of being recovered through legal actions.

The Inland Revenue Department had Rs.188 billion in tax arrears, of which Rs.104 billion are being recovered thanks to the dedication of the Excise Department’s employees. Another Rs.84 billion in outstanding taxes remains, and the necessary legal processes to recover this amount have already been initiated.

In 2023, the number of tax files increased from 450,000 to 1.15 million. Additionally, 4.7 million new TIN numbers were issued this year.
Recently, social media has been spreading rumours that Inland Revenue Department officers are visiting institutions in disguise to collect taxes. However, department officials do not visit institutions to collect taxes; they only go for awareness purposes. Therefore, it is important to note that no one should give money to individuals claiming to be tax collectors in disguise. The police have been alerted to investigate any complaints related to this issue, and security forces have been notified.

Finance Officer of Sri Lanka Customs Department, Anura Muthukude;

The Sri Lanka Customs Department is expected to generate Rs.1, 533 billion in revenue for 2024. By August 25 this year, the department had already collected Rs.963.7 billion. Media reports indicate that the department has Rs.58.6 billion in outstanding taxes, with Rs.57.6 billion owed by government institutions, effectively rendering that amount non-recoverable. The department has taken legal steps to recover the remaining taxes, some of which have been pending for over a decade.

To enhance transparency, the Sri Lanka Customs Department has established a new “Smat Unit,” where the public can submit complaints. It is important to note that despite a workforce shortage of 940 employees, the department’s staffs have ensured that no tax revenue has been evaded.

Colombo, Sri Lanka – 24th August 2024– On the third anniversary of the passing of the late Minister Mangala Samaraweera, his family is honouring his memory by gifting portions of his extensive and cherished personal library to three esteemed institutions: the Bandaranaike Center for International Studies (BCIS), the Jaffna Public Library, and a public library in Matara.

Mangala Samaraweera, the distinguished Sri Lankan statesman who served as both Foreign Minister and Finance Minister, began his career as a fashion designer and teacher after his education at Central St. Martins in London. His appetite for learning and interdisciplinary interests are vividly reflected in his library, which encompasses a wide range of subjects including current affairs, international relations, development studies, historical novels, best-selling fiction, poetry, queer literature, travel, languages, art, crafts, and photography.

The Bandaranaike Center for International Studies, a leading institution in Sri Lanka’s knowledge-sharing in International Relations for over 40 years, will play a key role in the process. The BCIS will assist in inventorying the collection, and receive the books most relevant to their focus on diplomacy and international affairs. This donation is particularly fitting, as it supports the continued education of those engaged in the diplomatic service and representing Sri Lanka in various industries on the global stage.

The decision to contribute to the Jaffna Public Library holds special significance. Mangala Samaraweera was deeply committed to restoring the storied Jaffna Public Library following its burning which he regarded as a tragedy for all Sri Lankans. During former President Bandaranaike Kumaratunga's tenure, he was a proud organiser of the ‘A Brick or a Book’ campaign, which sought to mobilize Sri Lankans countrywide in rebuilding and restoring the Jaffna Library and its invaluable collection. This donation represents a continued effort to redress that historical loss.

Additionally, a portion of the library will be taken to Matara to form a public collection, particularly around the arts and travel benefitting youth in his beloved Southern hometown. This gifting is a tribute to Mangala’s lifelong dedication to knowledge and his belief in its power to bridge communities and foster understanding," said his sister Jayanthi Samaraweera.

"We hope this donation will inspire and educate future generations, continuing Mangala’s legacy of broad intellectual curiosity and commitment to public service."

The donation ceremony will take place in October following the inventory and selection of books by the libraries. A small portion of his collection will remain in the care of his family.