Connect with us

News

2019 tax amendments not the sole reason for economic crisis – Attygalle

Published

on

By Saman Indrajith

It was unreasonable to claim that the country had lost nearly Rs. 500 billion due to the change in tax policies of the new government, Former Secretary to the Ministry of Finance S. R Attygalle said at a meeting of the Committee on Public Finance held in Parliament June 08, under the chairmanship of Anura Priyadarshana Yapa.Attygalle said the revenue loss had been caused by import restrictions, including the suspension of the import of vehicles, and the economic contraction caused by the Covid pandemic.

The former Treasury Secretary said that those decisions, regarding tax policies, had been taken in keeping with the first Cabinet Paper presented by the former Prime Minister Mahinda Rajapaksa on 04 December 2019.Former Secretary to the President, Dr. P.B Jayasundara, former Secretary to the Ministry of Finance S. R. Attygalle, former Governor of the Central Bank Ajith Nivard Cabraal, former members of the Monetary Board, current Governor of the Central Bank Dr. Nandalal Weerasinghe and other senior officials of the Central Bank were summoned before the Committee Meeting.

The Members of the Finance Committee were of the view that when a Cabinet Paper was presented, there should be a background note and a report on the subject matter and that the officials in charge of the subject should take responsibility for those documents.The Committee was of the view that decisions should have been taken after a thorough study by the Central Bank and the Ministry of Finance.The Members of the Committee inquired whether any of the economists and professionals had submitted a report to the Monetary Board with regard to the monetary policy decisions taken by the political authority.

Former Secretary to the President Dr. P.B. Jayasundara said that such decisions would be tabled in Parliament and then referred to Committees.Members of the Committee again asked whether the economists and professionals had informed their superiors of the incorrect policy decisions taken by the political authorities.The current Governor of the Central Bank Dr. Nandalal Weerasinghe said that responsible government officials should refrain from engaging in politics and that the difference between a politician and an official should be properly recognised. He said that it was the responsibility and duty of the officials to inform the politicians when they were not correct and the politicians alone were not responsible for the consequences of such decisions.

The Committee was told that although they had told the responsible officials and the then political authorities on various occasions about the possible side effects of such policies, no one had paid attention to them.The Chairman of the Committee Anura Priyadarshana Yapa MP emphasised that the relationship between the officials of the Central Bank and the Parliament should be enhanced and a proper communication process should be established when making important decisions pertaining to the country.

Accordingly, the Chairman of the Committee stated that the discussion would be held again on 17 June as further discussions were required in that regard.Leader of the Opposition Sajith Premadasa, Dr. Nalaka Godahewa, M.A. Sumanthiran, Mujibur Rahuman, Dr. Suren Raghavan, Gamini Waleboda, Kanchana Wijesekera, Anupa Pasqual, Vijitha Herath, Pramitha Bandara Tennakoon, Indika Anuruddha, Isuru Dodangoda, Prof. Ranjith Bandara, Nalin Fernando and other officials were present at the committee meeting.



Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

News

War-linked power crunch pushes Lanka to four-day week

Published

on

(AFP ) Millions of Sri Lankans enjoyed a government-ordered extra day off on Wednesday as the island nation battles an energy crisis triggered by the Middle East war.

Rail and bus stations were largely deserted as most state institutions, schools and universities shifted to a four-day working week.

“I am really enjoying the mid-week break because it is a fully paid holiday,” said housing ministry official Prarthana Perera, 40.

Her office, like many government departments in Battaramulla — the capital’s main administrative hub — was closed.

Banks operated on shorter hours, while many private firms introduced work-from-home arrangements, industry bodies said, urging members to help curb energy use.

Sri Lanka has already raised fuel prices by a third since the United States and Israel began bombing Iran, triggering retaliatory attacks that have disrupted global energy supplies.

About half of Sri Lanka’s electricity is generated by coal and diesel.

The cabinet has set a target of cutting electricity consumption by 25 percent, ordering street lamps switched off and asking civil servants to use table fans instead of power-hungry air conditioners.

Shipping executive Varuna Perera welcomed the day off but was uncertain of its impact.

“It will not be effective in the long term,” Perera said. “But the government will have a breather for a couple of weeks, to save some energy.”

Environmental lawyer Ravindranath Dabare was more sceptical, arguing the move would have limited impact as those needing government services would have to travel on other days.

“We can’t close hospitals… the doctors and health officials can’t work from home,” Dabare said.

The influential Chamber of Commerce said it had urged members to follow government guidelines or adopt remote work where possible, if

“business continuity can be effectively maintained”.

And Sri Lanka’s leading technology firm WSO2 made working from home mandatory for its 500 employees on Tuesdays and Thursdays.

“This is our way of contributing to the national cause,” WSO2 spokeswoman Zaithoon Bin-Ahamed told AFP.

Media Minister Nalinda Jayatissa said the government had yet to assess the impact of the energy-saving measures, but expected broad compliance.

Sri Lanka has been running coal and diesel power plants at full capacity to meet electricity demand.

President Anura Kumara Dissanayake urged electric vehicle owners not to charge their cars overnight, as they would add a surge to an already strained grid.

He asked motorists instead to plug in during the day, when excess solar power is available.

Officials said the country’s diesel stocks are sufficient to last until mid-May, while petrol could last a week longer.

The government is seeking oil supplies from Russia and hopes to tap Iran for crude oil, Jayatissa said.

Political commentator Kusal Perera said the crisis also presented scope to boost productivity across the state sector.

“They must use this opportunity to have a national dialogue on improving productivity,” he told AFP. “We have to address the inefficiency in the public sector.”

By Amal JAYASINGHE

Continue Reading

News

Lanka to swelter through April and May, Met Dept warns

Published

on

Sri Lanka is set to experience continued hot weather conditions until May, the Department of Meteorology has warned.

Additional Director General of Meteorology Ajith Wijemanna said the current heatwave is expected to ease only slightly once the southwest monsoon sets in toward the latter part of May.

Wijemanna explained that the island is currently in the first inter-monsoon period, characterised by low wind speeds and shifting wind directions, which contribute to rising temperatures. Reduced cloud cover and the sun’s direct position over the country are causing increased heating of land and sea, generating heat waves and warmer atmospheric conditions.

He cautioned that the hottest period of the day will be between 11:00 a.m. and 4:00 p.m., urging the public to limit outdoor activities during these hours.

Authorities also advised drinking plenty of water, wearing light-colored clothing, and avoiding prolonged exposure to direct sunlight, particularly for children and the elderly.The Meteorology Department further noted that rainfall may remain limited in the coming months, with drier conditions possible due to climate variability.

Continue Reading

News

Pathfinder Foundation launches Proposal for a National Security Strategy for Sri Lanka

Published

on

The Pathfinder Foundation launched a proposal for a National Security Strategy for Sri Lanka—2026, emphasising the urgent need for a comprehensive and state-led national security framework.

The proposed strategy contends that an effective National Security Strategy (NSS) must be based on a robust National Security Policy, which provides the long-term framework for protecting the country’s sovereignty, stability, and development in an increasingly uncertain global environment. The Pathfinder Foundation’s initiative, developed through consultations with academics, retired military officers, legal experts, and policy specialists, seeks to stimulate national discussion and support the formulation of an official state policy. The launch event was attended by those involved in preparing this proposal, heads of local think tanks, and media representatives.

Chairman of the Pathfinder Foundation, Amb. (Retd.) Bernard Goonetilleke, in his presentation of the report, emphasised that many major and middle powers, including the United States, China, the Russian Federation, the United Kingdom, Germany, Sweden, and Japan, have developed formal national security strategies. He pointed out that several South Asian and Southeast Asian countries, including India, Pakistan, Bangladesh, Nepal, Malaysia, Thailand, and Singapore, also rely on NSS, whereas Sri Lanka still lacks a single, officially adopted National Security Policy (NSP) or a National Security Strategy to guide long-term strategic planning.

The report highlights key strategic priorities across several sectors, including good governance, internal security, cybersecurity, energy and food security, health security, human capital development, and environmental protection. It also employs the internationally recognised DIME framework (Diplomacy, Information, Military, and Economy) to guide the coordinated use of national power in advancing Sri Lanka’s interests. Among its main institutional recommendations are establishing a fully legislated National Security Council, creating a National Security Secretariat, and officially appointing a National Security Advisor to coordinate policy and implementation across the government.

 The full text of the report is available https://pathfinderfoundation.org/publications, and your comments a/ welcome via pm@pathfinderfoundation.org

Continue Reading

Trending