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President addresses VAT increase and economic stability at industry excellence awards ceremony
President Ranil Wickremesinghe, on Wednesday night, speaking at the National Industry Awards ceremony, acknowledged the challenging decision to increase the Value Added Tax (VAT) to 18 percent, emphasising the imperative need to maintain economic stability.
National Industry Excellence Awards 2023 was held at the Nelum Pokuna Theatre in Colombo. President Wickremesinghe stressed the importance of leadership built on honesty and transparency with the people.
President Ranil Wickremesinghe went on to announce his intention to propose loan concessions in the upcoming budget, specifically aimed at supporting small and medium-scale industrialists, with the aim of bolstering Sri Lanka’s export-oriented manufacturing sector.
The awards ceremony was held to recognize and honour 300 successful entrepreneurs across various categories, including platinum, gold, silver, and bronze awards, from a pool of over 4,000 industrial entrepreneurs who had competed in 21 major industrial sectors and 61 sub-industrial sectors.
President Wickremesinghe also addressed the challenges faced by industries in 2022, citing issues such as power shortages and difficulties in obtaining bank loans that led to the closure of many businesses. Despite these challenges, he noted the resilience of numerous individuals who managed to revive their industries and achieve success, particularly in the small and medium-scale sector.
The President stressed the importance of addressing ongoing concerns related to bank loans and market access, with a focus on supporting small and medium-scale industries in the upcoming budget.
President Wickremesinghe revealed ongoing discussions with international financial institutions, including the International Monetary Fund (IMF), and creditors to devise comprehensive strategies for revitalizing the nation’s economy.
The President emphasized the significance of consistently increasing income to meet loan repayment commitments and to gain the trust of private and multilateral creditors. He pointed out that a substantial portion of the next year’s budget would be allocated to debt repayment and interest payments, underscoring the paramount importance of safeguarding the country’s currency and fulfilling loan obligations.
President Wickremesinghe also explained the necessity of the decision to raise the VAT to 18 percent, aligning Sri Lanka’s practices with countries like India and Pakistan. He acknowledged that such decisions, while difficult, are essential for the country’s well-being, even if they attract public criticism.
In closing, the President reaffirmed his commitment to rebuilding the nation without reverting to dependency on external support, emphasizing that the path may be challenging, but he is confident that positive results will be achieved in the next two to three years through negotiations with international financial institutions, including the World Bank.
News
PM Harini leads panel to protect public services
The newly appointed Cabinet Committee tasked with ensuring the uninterrupted functioning of Sri Lanka’s public service held its inaugural meeting on Thursday (19) at the Presidential Secretariat under the patronage of Prime Minister Dr Harini Amarasuriya.
The Committee convened to discuss strategies to maintain seamless government operations in the face of potential disruptions caused by the ongoing conflict situation in the Middle East, with particular focus on energy resource management.
According to officials, the discussions emphasised sustaining essential government services, ensuring continued service delivery to the public, and addressing the operational challenges faced by public sector employees during the current circumstances. The Committee also examined measures to mitigate any disruptions that could affect day-to-day administrative and service functions across ministries and departments.
Key attendees at the meeting included the Minister of Public Administration, Provincial Councils and Local Government A. H. M. M. H. Abayaratne; Secretary to the President Dr Nandika Sanath Kumanayake; Secretary to the
Prime Minister Pradeep Saputhanthri; Chief of Staff to the President Prabath Chandrakeerthi; and senior secretaries from key ministries including Health and Mass Media, Transport, Highways and Urban Development, Energy, and Digital Economy.
Representatives from state institutions such as the Ceylon Petroleum Corporation were also present, highlighting the government’s focus on energy security as a central priority. The Committee’s deliberations underscored a coordinated approach to balancing uninterrupted public service delivery with effective management of limited energy resources amid the ongoing geopolitical uncertainties.
Observers note that the formation of this Cabinet Committee reflects the government’s proactive stance in safeguarding national administrative functions and ensuring that critical public services remain resilient during times of external pressures.The Committee is expected to meet regularly to monitor developments, evaluate emerging risks, and implement practical measures to maintain operational continuity across the public sector.
News
Sajith slams President over war conduct and economic missteps
Opposition Leader Sajith Premadasa on Friday lashed out at President Anura Kumara Dissanayake in Parliament, accusing him of failing to uphold international law during wartime.
Premadasa said the President’s claim of neutrality ignored breaches of the UN Charter—including Articles 2.4 and 2.7—and other global conventions. “A neutral stance requires openly acknowledging violations,” he argued, criticizing the absence of ethical mechanisms to safeguard international law.
He also questioned the President’s handling of maritime issues, particularly whether Sri Lanka had been informed of the alleged attack on the Iranian vessel IRIS Dena, stressing that the Exclusive Economic Zone (EEZ) permits only peaceful activity.
On the economic front, Premadasa condemned the government for missing a chance to buy Russian oil during a 30-day U.S. sanctions suspension.
He said attempts to advise the Foreign Ministry, including a meeting with the Russian Ambassador, yielded no progress.
Premadasa further ridiculed the government’s earlier dismissal of the QR code fuel system, noting that officials are now adapting to it.
Turning to broader economic concerns, he called for immediate negotiations with the IMF to secure a new agreement, warning that the current primary balance of 2.3 is unsustainable. He stressed the urgent need for a poverty-reduction program, highlighting that one-third of Sri Lankans live in poverty.
He also demanded that surplus Treasury funds be used to support relief packages, arguing billions in reserves could aid households struggling with income shortfalls.Concluding his address, Premadasa criticized the government for failing to prepare for foreseeable crises, leaving the country vulnerable.
News
Johnston Fernando, sons held in Lanka Sathosa lorry misuse case
Former Minister Johnston Fernando, his two sons, and three others were remanded by the Wattala Magistrate’s Court yesterday (20) until April 2, the court confirmed.
The suspects, including Fernando’s elder son Johan, younger son Jerome, and a former transport manager of Lanka Sathosa, are under investigation by the Police Financial Crimes Investigation Division (FCID).
Authorities allege the Lanka Sathosa lorry was misused for operations linked to an ethanol company reportedly owned by Fernando, causing an estimated Rs. 2.5 million loss to the state.
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