News
Remove ban on vehicle imports – Customs…
foreign credit line to facilitate vehicle imports proposed
Revenue shortfall Rs 443 bn:
By Shamindra Ferdinando
Sri Lanka Customs has warned the Finance Ministry that it will fall short of its revenue targets for 2023 by at least Rs. 443 bn unless the government abolishes the ban on vehicle imports as well as restrictions on other imports immediately.
The top Customs management recently told the Sectoral Oversight Committee (SOC) on National Economic and Physical Plans that the Finance Ministry had been appraised of their inability to meet anticipated revenue targets.
The Customs officials appeared before the SOC, headed by SLPP lawmaker Mahindananda Aluthgamage, on 08 June.
Aluthgamage said that only Rs 330 bn had been collected up to May this year though the government projected Rs 1,226 bn in revenue.
Sri Lanka imposed a ban on vehicle imports in early 2020 due to a severe balance of payments crisis that ultimately led to declaration of bankruptcy in April 2022.
The SOC has summoned Customs to ascertain their contribution to the government revenue this year.
The SOC has been told that the maximum Customs could collect this year is Rs 783 bn under the present circumstances.
The all-party committee has also been informed that approximately 20 percent of Customs revenue was earned through taxes imposed on vehicle imports. Therefore, the vital unit couldn’t be expected to succeed unless the government created the much needed requirement.
Customs, Inland Revenue and Excise Departments account for more than 90 % of government revenue.
Customs also pointed out that since 2014 they never collected revenue more than Rs 1,000 bn. During the 2014-2022 period, 2014 had been the best year with Customs revenue collection reaching Rs 923 bn mark at the time the late Mangala Samaraweera served as the Finance Minister. Of this amount, Rs 194 bn had been collected as taxes imposed on vehicle imports, the arliament said. The statement issued by Parliament quoted Customs as having said that Rs 150 bn could be collected by the end of this year if ban on vehicle imports was done away with immediately.
Customs expressed the view that by resumption of vehicle imports immediately in line with their overall proposals, revenue collection for this year could be increased to Rs 1,100 bn from projected Rs 783 bn.
However, SOC and Customs seemed to have agreed that whatever the changes brought in the original estimate of Rs 1,226 couldn’t be met.
SOC Chairman Aluthgamage has assured that discussions were underway and the government would take a decision in this regard soon.
During the proceedings, it was revealed that as a result of issuance of a particular gazette in 2012 any quantity of gems could be imported by just paying USD 200. Customs have requested SOC to restore the system that had been in operation before to permit imposition of duty on the basis of the estimated value.
They also discussed the need to address Customs-related court cases within a specified time. Former minister Aluthgamage said that he would take up this issue with Justice Minister Dr. Wijeyadasa Rajapakse, PC. Customs also revealed that there were approximately 1,200 held by them pending court cases.
SOC also listened to the shocking revelation that approximately 60% percent of imports weren’t subjected to Customs inspections at all. Declaring that sugar, fertiliser and rice that were brought through the green channel never subjected to Customs scrutiny, SOC was told cigarettes, liquor and other items were smuggled in with above mentioned items.
MP Aluthgamage has pointed out that major fraudulent activities took place as Customs officers, based at Bandaranaike International Airport, were not subjected to checks at all. Customs have assured SOC Chairman after having studied the situation a directive would be issued to pave the way for BIA-based Customs officers to be checked.
News
Joint programme between President’s Fund and Janashakthi Foundation to expand healthcare facilities for children
A special collaboration between the Presidents’s Fund and the Janashakthi Foundation, aimed at expanding healthcare facilities available to children under the age of 18, was launched on Wednesday (06) morning.
Implemented under the theme “Building a Healthier Today for a Winning Tomorrow”, this national initiative has been introduced through the joint efforts of the President’s Fund and the Janashakthi Foundation with the objective of reducing the financial barriers associated with children’s healthcare.
Under the President’s Fund, only a portion of the medical expenses incurred by a patient is generally covered. However, under this new collaboration, the Janashakthi Foundation will provide either an equivalent amount or the remaining balance of the treatment cost, whichever is lower.
Speaking on the occasion, Secretary to the President’s Fund and Senior Additional Secretary to the President, Roshan Gamage, stated that the present Government had taken steps to decentralise and digitalise the operations of the President’s Fund, thereby transforming it into a truly people-centric fund. He noted that this had reinforced public confidence in the Fund’s transparency, accountability and effectiveness and added that the collaboration with the Janashakthi Foundation had further strengthened this process.
Gamage further stated that close and meaningful coordination with the private sector would help enhance healthcare assistance provided to children and minimise the gap between the financial aid available and the actual cost of essential medical treatment.
Also addressing the gathering, Managing Director and Group Chief Executive Officer of the Janashakthi Group, Ramesh Schaffter, stated that difficulties in accessing medical treatment constitute a major obstacle preventing children from progressing towards a better future.
He further stated that the collaboration seeks to reduce that obstacle by extending support to children who are in urgent need of assistance, thereby laying the foundation for future generations to face tomorrow with greater confidence.
Under this programme, applicants seeking additional financial assistance are required, when applying to the President’s Fund, to duly complete and submit a consent form authorising the secure sharing of their information with the Janashakthi Foundation.
The identification of children requiring financial assistance, verification of their information and approval of funds will continue to be carried out by the President’s Fund.
Under this initiative, payments will generally be made to the guardians of children following the completion of treatment. However, in cases involving emergency treatment and treatment conducted overseas, payments will be made in advance.
Applicants submitting medical assistance applications to the President’s Fund from 15 May 2026 onwards will be eligible to apply for additional funding from the Janashakthi Foundation.
The event, held at the Hilton Colombo, was attended by J.M. Wijebandara, Director General of Legal Affairs at the Presidential Secretariat and Advisor to the President (Legal Affairs); C.T.A. Schaffter, Founder and Chairman Emeritus of the Janashakthi Group; Gamika De Silva, Group Chief Marketing Officer; Dilshan Wirasekara, Deputy Chief Executive Officer of the Janashakthi Group; as well as officials of the President’s Fund and the Janashakthi Foundation.
President’s Media Division (PMD)
News
Maldivian President concludes state visit to Sri Lanka
The President of the Republic of Maldives, Dr. Mohamed Muizzu, departed Sri Lanka on Wednesday morning (06) from the Bandaranaike International Airport, Katunayake, concluding a successful state visit to the country.
The visit by the Maldivian President and his delegation further strengthened the longstanding friendship and cooperation between the Maldives and Sri Lanka, while delivering a range of mutual benefits to the peoples of both nations.
This marked President Muizzu’s first state visit to Sri Lanka, during which several mutually beneficial areas of cooperation were agreed upon, underscoring the success of the visit.
Minister of Science and Technology, Krishantha Abeysena, Minister of Youth Affairs and Sports , Sunil Kumara Gamage, Member of Parliament Oshani Umanga, along with senior officials of the Ministry of Foreign Affairs, were present at the airport to bid farewell to the Maldivian President, the First Lady and the accompanying delegation.
(President’s Media Division)
News
Govt. draws flak over Rs. 500 mn excess Aswesuma payments
Close on the heels of the USD 2.5 mn theft from the Treasury, the Welfare Benefits Board has reported payment of nearly Rs 500 mn in excess to Aswesuma beneficiaries.
Public action group ‘Free Lawyers’ has raised the latest fiasco to come to light with Speaker Dr. Jagath Wickramaratne, while requesting that the Parliament, in line with its constitutional obligations, initiate an inquiry.
The letter, dated 06 May, signed by Maithree Gunaratne, PC, Attorney-at-Law Athula de Silva, and Rajith Keerthi Tennakoon, on behalf of ‘Free Lawyers’, has alleged that some of the Aswesuma beneficiaries have been paid twice while others received the additional/extra payment.
Responding to The Island queries, Tennakoon said that sheer negligence on the part of those responsible for public finance was shocking.
Alleging that the NPP government seemed to be operating outside basic rules and regulations pertaining to public finances, the former Governor asked the Speaker whether the wrongful Aswesuma payments had been made due to political appointments made at the expense of the experienced and competent staff. (SF)
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