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Prez announces measures to tackle economic crisis

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By Saman Indrajith

President Ranil Wickremesinghe told Parliament yesterday that the government would bring down the primary deficit to 2.3% of GDP by 2025 and increase revenue to 14% of GDP by 2026.

Making a special statement in the House after tabling a copy of the IMF- Extended Fund Facility (EFF) agreement, the President said that the standard corporate income tax rate had been raised to 30%, and sectoral tax holidays had been eliminated. The PAYE tax rate had been raised from 12% to 15%, and the tax exemption limit had been reduced from Rs. 300 million to Rs. 80 million.

The President told Parliament that the government was planning to reduce existing exemptions on VAT by 2024, remove the simplified VAT system, and expedite its reimbursement. Estate Duty would be introduced as a property tax by 2025, with a minimum tax exemption allowance, he said.

President Wickremesinghe said the government was aiming to reduce the inflation rate to 4-6% and bring it to a single digit by mid-2023.

“We are planning to reduce the budget deficit and stop printing money. The forex market thresholds and guidelines will be relaxed while allowing market criteria to determine its activities.

The Central Bank plans to purchase foreign currency to build up foreign reserves,” he said.

The government plans to make public the list of individuals and institutions who enjoy tax concessions and tax holidays, and large-scale government procurement contracts. These measures aim to increase transparency and combat corruption in the country.

The President stated that he had previously requested the support of the opposition to rebuild the economy, but did not receive it. “I made similar requests during the opening of Parliament and Budget debates, but to no avail. Despite my efforts, the opposition refused to extend their support citing various reasons,” he said.

He said that at a time when the country was in chaos in July last year, no one was willing to accept responsibility and he was requested to take over. “I had no power in Parliament, no Members of Parliament from my Party to call my own.” But, He said his strength was his conviction that he was capable of rebuilding the country.

“Some people consider the IMF EFF as just another loan, while others claim that the total debt of the country cannot be paid off with the amount received.”

President Wickremesinghe noted that these statements show either ignorance or a willingness to betray the country for political gain.

The President said that the IMF facility is not a loan given at burning interest but a credit facility given to rebuild a fallen country.

He said that the IMF EFF will restore Sri Lanka’s international recognition, ensure the country is not bankrupt and help banks regain international recognition.

“This will create opportunities for low-interest credit, restore foreign investors’ confidence and lay the foundation for a strong new economy,” he said.

“We are now starting a new journey. We have to introduce many economic reforms throughout the process. The foundation for our success will be through this path,” the President said, adding that some of these reforms have already been proposed and implemented through the interim budget of 2022 and the budget for 2023.



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US Supreme Court rejects Trump mail ballot restrictions ahead of midterms

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US Supreme Court in Washington, DC, on September 1, 2026 [Aljazeera]

The US Supreme Court has rejected President Donald Trump’s bid to allow the US Postal Service to enforce a rule targeting mail-in ballots.

On Monday, the conservative-majority court refused to lift an order by US District Judge Indira Talwani that blocked the measure, dealing a blow to Trump’s efforts to restrict voting by mail before the November midterm elections.

The postal agency adopted the rule after Trump signed an executive order in March seeking to tighten rules around mail-in voting. Under this measure, states were required to send the Postal Service a list of recipients and use ballot mail envelopes previously approved by the agency.

The Postal Service was allowed to deny ballots if they failed to comply with the new standards or were not associated with registered voters on the lists.

Talwani imposed an injunction blocking the rule, saying that it likely violated the US Constitution and would be impossible to apply given the nearing midterms.

Shortly after, the Trump administration issued an emergency request to the Supreme Court urging it to allow an “important federal policy to protect the mails from being used to commit voter fraud”.

In late August, the Supreme Court had temporarily allowed Trump to move ahead with his executive order on procedural grounds, but did not rule on the legality of the plan.

In the latest decision, the court said in an unsigned order that the administration was “unlikely to succeed on the merits” of its challenge. Justice Samuel Alito and Justice Clarence Thomas dissented, with Alito writing that some plaintiffs lacked standing while the rest were pursuing a claim the court had recently called a “Hail Mary pass”.

[Aljaeera]

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Eastern Province Divisional Secretariats recognized for outstanding performance

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The “Mehewara Pasasum” programme to recognise Divisional Secretariats in the Eastern Province that demonstrated the highest level of performance in 2025 was held recently at the Swami Vipulananda Institute of Aesthetic Studies of the Eastern University, under the patronage of Prime Minister Dr Harini Amarasuriya. The programme was held as part of the initiative to decentralise President’s Fund services to the Divisional Secretariat level, with the aim of providing the public with a more efficient and prompt service.

Of the Divisional Secretariats in the three districts of Ampara, Batticaloa and Trincomalee, nine Divisional Secretariats, three from each district, were selected for recognition based on their efficiency in receiving President’s Fund applications and responding to them promptly.

Accordingly, the Sammanthurai Divisional Secretariat secured first place in the Ampara District, while the Addalachchenai Divisional Secretariat secured second place and the Kalmunai Divisional Secretariat third place.

In the Batticaloa District, first place was secured by the Kattankudy Divisional Secretariat, second place by the Manmunai North Divisional Secretariat and third place by the Koralaipattu Central Divisional Secretariat.

In the Trincomalee District, first place was secured by the Trincomalee Town and Gravets Divisional Secretariat, second place by the Kinniya Divisional Secretariat and third place by the Muttur Divisional Secretariat.

The first “Mehewara Pasasum” programme was held in Colombo, the second in Batticaloa, and this was the third programme.

Speaker Dr Jagath Wickramaratne, Minister of Industry and Entrepreneurship Development Sunil Handunnetti, Senior Additional Secretary to the President and Secretary to the President’s Fund Roshan Gamage, and a number of government officials and others were present at the occasion.

(PMD)

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Students of Rahmaniya Maha Vidyalaya Eravur visit Presidential Secretariat and President’s House

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A group of students from Rahmaniya Maha Vidyalaya, Eravur, Batticaloa visited the Presidential Secretariat and President’s House on Monday (14) afternoon .

The students were given this opportunity as part of the “Vision” programme series, jointly implemented by the Presidential Secretariat, the Ministry of Education and the Communication Division of the Parliament of Sri Lanka for schoolchildren.

Prime Minister Dr Harini Amarasuriya stated that nurturing a future generation capable of providing leadership to society and committed to bringing about positive change in the world was an urgent need of the present day. She further stated that the Government’s objective in introducing the new education reforms was to prepare children to acquire knowledge from around the world while nurturing a confident and empowered generation capable of making a meaningful contribution to the country.

Following a visit to the former Parliament building at the Presidential Secretariat, the students were briefed on the history of Parliament.

Senior Additional Secretary to the President Roshan Gamage briefed the students on the role of the President’s Fund and the benefits available to schoolchildren through the Fund.

As part of the programme, valuable plants were also presented to the school as a symbolic gesture highlighting the importance of environmental conservation.

The Director and Assistant Director of the Tri-Forces Security Coordination Unit, the Principal and teachers of Rahmaniya Maha Vidyalaya Eravur and several others were present on the occasion.

(PMD)

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