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Over Rs 900 bn in uncollected taxes worries govt.

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Siyambalapitiya

Budget 2024: Govt. counts on MR to deliver required votes

By Shamindra Ferdinando

State Finance Minister Ranjith Siyambalapitiya yesterday (21) warned that President Ranil Wickremesinghe’s economic recovery plans would be derailed and the country would again plunge into crisis if the Opposition succeeded in defeating the 2024 Budget.

The Kegalle District MP asserted that even the resumption of the IMF’s USD 2.9 bn bailout package and ongoing talks on foreign and local debt restructuring could be jeopardized in the event of the government’s failure to muster the required support in the vote on the Second Reading of the Budget later in the day.

The Minister said so in response to The Island query whether the ruling SLPP decided to vote for the Budget against the backdrop of MP Namal Rajapaksa publicly criticizing the 2024 revenue proposals. The issue was raised at a media briefing held at the President’s Media Division (PMD).

A smiling State Minister declared that SLPP leader Mahinda Rajapaksa had assured support for the Budget. The declaration was made a few hours before the vote on the Budget. The State Minister said that anyone genuinely interested in carrying forward economic recovery plan initiated by President Wickremesinghe wouldn’t dare vote against the Budget. Those who pursued personal agendas would go all out to undermine the government, the State Minister said.

During his introductory remarks, the State Minister emphasized that the country was in such a precarious state, the government had no option but to expand the tax regime in line with its overall strategy to address the developing financial crisis.

According to the State Minister, at the time of the crisis, the revenue had been 8.3 % of the Gross Domestic Product (GDP) but by the end of this year it would reach 10.1% and by Dec next year, the government expected 12.3% revenue.

Dismissing growing criticism of the Budget as irrelevant, MP Siyambalapitiya said that some Opposition lawmakers wanted the government to enhance relief while some opposed the increase in taxes. The State Minister explained that VAT had been greatly expanded by reducing the list of items so far exempted by the indirect tax. The State declined to reveal the 85 items exempted from a list of 138 though he assured VAT wouldn’t be imposed on electricity.

The Island sought an explanation from the State Minister regarding recent statement issued made by the Committee on Public Accounts (COPA) that taxes, penalties and interest amounting to Rs 943 bn were yet to be collected by the Inland Revenue Department (IRD). The refusal by the IRD to fully takeover and operate the Revenue Administration Management Information System (RAMIS) installed a decade ago was also raised. In addition to that The Island pointed out COPA expressing concern over proper collection of VAT (Value Added Tax) against the backdrop of the government’s decision to increase that particular tax from 15% to 18%.

MP Siyambalapitiya said that out of Rs 943 bn in uncollected taxes, 82% had been held up pending the conclusion of the legal process. The State Minister said that though the progress was slow the government couldn’t do anything about it.

“We couldn’t force them to pay. They have an opportunity even to seek the intervention of the Supreme Court,” MP Siyambalapitiya said, adding that the amount referred to by COPA was the amount to be collected during the past two decades.

Referring to the Customs, the State Minister said that out of the Rs 60 bn yet to be collected by Customs, 95% was owed by state institutions.

Commenting further on the RAMIS project, the SLPPer said that the change of tax regime thrice during the past decade affected the operation of the system. The project had been also halted for want of funds, the State Minister said, expressing confidence a fresh initiative meant to complete the project was underway.



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Death toll in violent clashes at Negombo Prison rise to 25

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It has been reported quoting police sources that the death toll from the renewed unrest at the Negombo Prison which  this morning, has  risen from nineteen  to twenty five (25).

A clash initially broke out between two groups of inmates (a group of remand prisoners and a group of convicted inmates serving sentences) at the Negombo Prison at around 1.00 p.m. on Sunday (05).

Two inmates died in yesterday’s clash, while around 40 others sustained injuries and are  receiving treatment at hospital.

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The Government is committed to equipping children with new technology and knowledge – PM

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Prime Minister Dr. Harini Amarasuriya stated that the children of Sri Lanka are well capable of viewing the world with creativity and critical ways of thinking, and that the Government is committed to equipping them with the required knowledge and modern technologies necessary to realize their full potential.

The Prime Minister made these remarks while attending the opening of the ’Arumasiya’ Exhibition and the occasion of laying the foundation stone for a new three-storey building at Balangoda Vidyaloka Central College, on the 4th of July.

During the visit, the Prime Minister officially declared open the exhibition showcasing the students’ innovations and creative talents and commended them for their remarkable achievements. The Prime Minister also participated in the ceremony of laying the foundation stone for the construction of the College’s new three-storey building.

Addressing the occasion, Prime Minister Dr. Harini Amarasuriya stated:

“It is a pleasure to participate in this special event at Balangoda Vidyaloka Central College, the school where Sri Lanka’s first female Prime Minister received her education

I had the opportunity to visit the exhibition featuring the outstanding creations and innovations of the students. What I witnessed was a group of talented young people who have moved beyond textbook learning and are capable of viewing the world with creativity and critical thinking.

We are introducing a new education reform process that moves away from a rote-learning, examination-oriented system towards a practical and skills-based one. The Government is now systematically completing all the necessary preparations to implement the new education reforms scheduled to commence in 2027.

Our objective is to ensure that every child leaving school has access to vocational and technical education that matches their individual talents and meets the demands of the modern labour market. We are committed to transforming vocational education into a field that enjoys the same dignity and recognition as university education.

Finally, I commend the Principal and the academic staff of Balangoda Vidyaloka Central College for organizing this exhibition, and to the students and parents whose dedication made this event a success.”

The event was attended by Members of Parliament for Ratnapura District Wasantha Pushpa Kumara and Sunil Rajapaksha, the Mayor of Balangoda and members of the Municipal Council, the Zonal Director of Education, the Principal and academic staff of Balangoda Vidyaloka Central College, parents, and students.

Prime Minister’s Media Division

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Appointment of SPO to probe AG on hold until establishment of Ind. Public Prosecutor’s Office

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Ajith / Harshana

The appointment of a Special Parliamentary Ombudsman (SPO) to inquire into the complaints against the Attorney General, as promised in the NPP manifesto, is on hold, pending the establishment of an Independent Office of the Public Prosecutor and provincial Sub Officers.

Authoritative sources told The Island that the Justice and National Integration Ministry was awaiting the recommendations, regarding the new legislation for the establishment of such an Office, from a Committee of Technical Experts, chaired by Justice Yasantha Kodagoda, PC.

Responding to a query raised in Parliament by SJB lawmaker Ajith P. Perera about the delay in appointment of SPO, Justice and National Integration Minister Harshana Nanayakkara said the government couldn’t take a decision until the Kodagoda Committee made recommendations.

Nanayakkara said that the positioning of the SPO couldn’t be decided before they differentiate the powers of the Attorney General and the an Independent Office of the Public Prosecutor and provincial Sub Officers.

According to the NPP manifesto, provincial Sub Officers were to be established under a senior Additional Solicitor General.

Opposition sources pointed out that the relevant Cabinet decision was taken on 7 May 2025. According to the Cabinet Office, the government decided to establish an Independent Office of the Public Prosecutor and provincial Sub Officers in line with a proposal made by the United Nations High Commissioner for Human Rights, in her final report on Sri Lanka, submitted in September, 2024.

By Shamindra Ferdinando

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