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Revenue collection remains indomitable challenge – President’s trade union chief

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Ratnapriya

By Shamindra Ferdinando

President Ranil Wickremesinghe’s Director General of Trade Unions Saman Ratnapriya said that the failure on the part of successive governments to efficiently collect due tax revenue had undermined the national economy.

The former UNP National List MP said that uncollected tax revenue, according to parliamentary records, remained over Rs 900 bn. Therefore, uncollected colossal sums left in abeyance remained a problem, Ratnapriya told a regular media briefing at his office on the third floor of the Lake House building on Tuesday (14).

Ratnapriya said that a special unit had been established at the Presidential Secretariat in line with the overall measures to address the issue at hand.

The civil society activist said so when The Island asked him to explain how the Wickremesinghe-Rajapaksa government intended to pay the Rs. 10,000 cost-of-living allowance to 1.3 mn workers, beginning April 2024, and pay the arrears (January to March) in Oct., in stages, unless tangible measures were taken to streamline revenue collection.

At the onset of the briefing Ratnapriya explained the slow turn-around of the economy since the declaration of bankruptcy in April 2022. Ratnapriya recalled at the time UNP leader Ranil Wickremesinghe accepted the Finance portfolio, the Treasury was in two minds about paying the July 2022 public servants’ salary. Some believed the July salary should be paid in two parts, but Wickremesinghe ruled that out. “Today, the government is in a position to increase the public sector monthly cost of living allowance from Rs, 7,800 to Rs. 17,800 and pensioners’ allowance from Rs. 3,525 to Rs. 6025, an increase of Rs 2,500.

Ratnapriya emphasized that the government wouldn’t obtain loans nor print money to pay for the allowances. Instead, taxes would be collected to pay these allowances in line with overall strategy discussed and adopted to address issues at hand in consultation with international lending bodies, including the IMF and the World Bank.

Pointing out that neither President Wickremesinghe, in his capacity as the Finance Minister, nor previous administrations, had taken tangible action to collect unpaid taxes, The Island asked whether trade unions would make representations in this regard. Ratnapriya acknowledged that a country couldn’t move forward unless taxes were collected. According to him, the unit established at the Presidential Secretariat now worked with the Inland Revenue Department to enhance revenue collection efforts.

Ratnapriya alleged that those responsible for the tax collection apparatus resisted attempts to streamline the process. The trade union activist pointed out how tax authorities conveniently failed to tax casinos regardless of Treasury directive.

Ratnapriya said that implementation of digitized tax structure over the next few years would streamline the process and effectively collar those who had been dodging paying their taxes.

The Island also raised the contentious issue of successive governments allowing certain institutions, including the Central Bank and CEB, to pay the PAYE (Pay As You Earn) tax of their employees. Ratnapriya acknowledged that some institutions had done so but President Wickremesinghe stopped that practice. “As of today, institutions do not pay PAYE tax on behalf of their workers. The President’s directive is in operation. This should continue.”

Commenting on political developments, Ratnapriya said that President Wickremesinghe had already declared that presidential and parliamentary polls would be held in 2024 and 2025, respectively. The President also indicated his readiness to conduct Provincial Council polls if the country so desired, Ratnapriya said, claiming that Local Government polls would be a waste of time. Ratnapriya added that the public would have to pay the salaries of 8,700 councillors if Local Government polls were held, but now even without them those councils are functioning smoothly.

Ratnapriya insisted that the latest budget was not meant to promote the government ahead of impending national elections.

Responding to another query, Ratnapriya said that some of those who launched protest campaigns demanding Rs 20,000 actually hoped for Rs 5,000. A smiling Ratnapriya said that he knew what was going on as those trade union leaders happened to be his friends and associates. Ratnapriya insisted that the vast majority of public sector workers were happy with Rs 10,000 cost-of-living allowance. Therefore, those who intended to pursue protest campaigns demanding their original demand for Rs 20,000 wouldn’t receive any public support they required because of the dire circumstances facing the country.



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Discussion on Sri Lanka Customs’ contribution for National Export Development Plan

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A discussion on the modernisation initiatives required within the Sri Lanka Customs and measures to encourage exporters in support of implementing the National Export Development Plan (NEDP) 2026–2030 was held on Wednesday (17)  morning at the Presidential Secretariat under the patronage of Secretary to the President, Dr. Nandika Sanath Kumanayake.

The meeting, organised by the Revenue Administration Reform and Modernization Bureau established under the Presidential Secretariat, focused extensively on the modernisation measures required within Sri Lanka Customs to facilitate the expansion of exports.

During the discussion, the Secretary to the President instructed Sri Lanka Customs to enhance the capacity, facilities and modernisation of the Export Facilitation Centre, where export containers are inspected, in order to create a more efficient and exporter-friendly environment.

Attention was also drawn to developing a programme aimed at encouraging exporters across the country to enter the export sector. The Secretary to the President further emphasised the need to review the Temporary Import for Export Processing (TIEP) scheme currently operated by the Customs Industrial Facilitation Division and to introduce a programme to support small and medium-sized enterprises (SMEs) that have not yet engaged in export activities.

The meeting also explored the possibility of decentralising customs operations to support the expansion of the export sector, with particular attention given to establishing a Customs Export Centre in Jaffna.

Discussions were also held on removing barriers affecting exports conducted through e-commerce platforms. It was decided to hold further discussions with the Department of Posts on measures that could be taken jointly to streamline these processes.

Participants also discussed introducing digital systems to expedite document processing, thereby reducing both, time and costs, as well as implementing a risk-based assessment mechanism that would provide greater facilitation for low-risk exporters.

It was further decided that Sri Lanka Customs, the Sri Lanka Export Development Board (EDB) and other relevant institutions would meet monthly under the leadership of the Revenue Administration, Reforms and Modernisation Bureau of the Presidential Secretariat to review progress, identify challenges faced by exporters and discuss appropriate solutions.

The National Export Development Plan has been formulated in line with the national vision, “A Thriving Nation – A Beautiful Life”, with the objective of enhancing Sri Lanka’s export competitiveness and achieving an ambitious yet realistic export revenue target of USD 36 billion by 2030.

Director General of Customs Wimal Liyanagama, Chairman of the Sri Lanka Export Development Board (EDB) Mangala Wijesinghe, Additional Directors General of Sri Lanka Customs T. Loganathan and L.K.S.D.K. Arewatta, Director of the Sri Lanka Export Development Board Dr. Sanjeewa Rathnasekara, Director of the Revenue Administration, Reforms and Modernisation Bureau of the Presidential Secretariat W.L.C. Thilakasiri and senior officials from Sri Lanka Customs and the Sri Lanka Export Development Board were also present.

[PMD]

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Military held land: Govt. trying to maintain balance between security and civilian needs

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Deputy Defence Minister Maj. Gen. Jayasekera receiving a field briefing during a recent visit to the Jaffna peninsula (pic courtesy MoD).

The NPP government is trying to maintain a balance between continuing demands for releasing north-east land held by the military and post-war security requirements, says Deputy Defence Minister Major General Aruna Jayasekera (Retd), who has undertaken a series of visits to the northern and eastern provinces in the recent past to explore ways and means of releasing the land, without compromising national security requirements.

Since the armed forces brought the war to a successful conclusion in May, 2009, releasing of both privately- and state-owned land began cautiously in October, 2009, and by now over 90 percent of both categories have been released. At the height of the war, before the launch of Eelam War IV, in August 2006, Jaffna peninsula had the largest concentration of troops assigned to four Divisions.

In the first week of June, Deputy Minister Jayasekera visited the Trincomalee District to ascertain the situation. The Defence Ministry said that the Deputy Minister had assessed the current status of such lands and received briefings from senior military officers and relevant officials on security and administrative aspects regarding the properties.

Following the field inspection, the Deputy Minister chaired a meeting at the Governor’s Secretariat Office where the discussion focused on what the Defence Ministry called a balanced and practical approach to address land-related issues, protect the livelihoods of the people, and ensure that national security requirements were properly managed.

Jayasekera, with a career spanning well over three decades, retired in November, 2019, after having last served as the Eastern Commander for about a year.

During his June visit, the Deputy Minister visited various security forces establishments, including the 22 Infantry Division.

A senior retired military official said that those who had been demanding that all security forces held land, both state- and privately-owned, be released, have conveniently forgotten that this was made possible due to the eradication of the LTTE.

The Deputy Defence Minister conducted a series of field visits in the Jaffna and Wanni regions to assess the security situation and operational commitments. According to the Defence Ministry, the Deputy Minister addressed senior tri forces personnel at the Security Forces Headquarters – Jaffna (SFHQ-J) and the Security Forces Headquarters – Wanni (SFHQ-Wanni).

The Deputy Minister chaired civil-military coordination meetings in the Mannar and Jaffna districts to the ongoing land ownership issues, fostering socio economic growth, and streamlining local infrastructure layout in close cooperation with the regional administrative mechanism. The Ministry said that the Deputy Minister inspected agricultural zones, private residences and public common areas, presently placed within the operational infrastructure of the Sri Lanka Navy across several locations, in Mullikulam, Silawathura, Talaimannar, Wankalapadu, and Pallimune.

Members of Parliament for the Vanni Electoral District, Selvam Adaikalanathan, Kader Masthan, Thurairasa Ravikaran and the District Secretary for Mannar were also present at the meeting where matters related to socio economic grievances, local infrastructure demands, and land rights of the local residents were central topic in the agenda.

The Deputy Minister of Defence chaired a second meeting at the Governor’s Office in Jaffna where the main focus was existing land issues in the districts of Vavuniya, Mannar, Mullaitivu, Kilinochchi, and Jaffna.

The Jaffna proceedings were co-chaired by the Minister of Fisheries, Aquatic and Ocean Resources and Chairman of the District Coordinating Committee for the Jaffna and Kilinochchi Districts Ramalingam Chandrasekar and Deputy Minister of Co-operative Development Upali Samarasinghe.

The Defence Ministry said that stability depended on striking an optimal balance between prioritising national security obligations and resolving outstanding issues related to both state owned and privately used lands. “We are implementing a transparent mechanism to swiftly transition designated lands back into the hands of local communities for housing, fishing, and agriculture.”

The participation of the Commander of the Army and the Commander of the Navy underscored the importance of the discussions held in the north.

In the Mannar region the focus was on lands, presently used by the Navy, in the areas of Mullikulam, Silawathura, Talaimannar, Wankalapadu, and Pallimunai.

Authoritative sources said that since the end of the war, the military had given up held areas and what remained occupied were essential for security purposes. The depletion of the area under direct control should be examined taking into consideration gradual overall reduction of combined security forces strength over the years. At the end of the war, the Army had approximately 205,000 officers and men, both regular and volunteer. That figure has been reduced to 150,000 to 160,000. In line with the government thinking the Army strength would be brought down to 100,000 by 2030, a plan first announced by President Ranil Wickremesinghe.

By Shamindra Ferdinando

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Yoshitha granted bail, travel ban imposed

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Ex-Navy officer Yoshitha Rajapaksa, second son of former President Mahinda Rajapaksa, being taken to the Colombo Chief Magistrate's court yesterday.

Colombo Chief Magistrate Lahiru de Silva yesterday granted bail to Yoshitha Rajapaksa, second son of former President Mahinda Rajapaksa, on three sureties of Rs. 5 million each, and imposed an overseas travel ban.

The Commission to Investigate Allegations of Bribery or Corruption (CIABOC) arrested Yoshitha yesterday morning when he called over to make a statement regarding an ongoing investigation into his recruitment to the Sri Lanka Navy and training at the UK Royal Naval Academy.

CIABOC said that the arrest had been made in connection with an investigation into the 2006 recruitment of cadet officers to the executive branch of the Sri Lanka Navy.

It has been alleged that individuals were recruited without meeting the required qualifications and state funds were used outside established procedures for their training at the Royal Naval Academy in the UK.

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