News
Over Rs 900 bn in uncollected taxes worries govt.
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.
News
Gul, Kharote spin Afghanistan to victory over Japan in Asian Games opener
Right-arm wristspinner Arab Gul, took 4 for 8 on T20I debut and left-arm spinner Nangeyalia Kharote picked up 3 for 19 as Afghanistan successfully defended a modest 129 against Japan to open their Asian Games men’s competition campaign with two points in Group A.
Two days after nearly beating India in a rain-shortened game in Sano, hosts Japan made a steady start to the chase and reached 53 for 2 in the eighth over before losing their way.
Gul did much of the damage, taking two wickets apiece in the 12th and 14th overs as Japan slid from 60 for 4 to 63 for 8. Abdollah Ahmadzai and Kharote then finished off the lower order, with Japan bowled out for 81 in 19.3 overs.
Asked to bat first, Afghanistan had posted 129 for 6, with Mohammad Akram making 34, captain Darwish Rasooli 29 and Karim Janat 21.
But it was Mohammad Ishaq’s unbeaten 25 off 17 balls from No. 6 that provided the late impetus after Japan had kept Afghanistan to under six an over for the first 15 overs. Right-arm seamer Shoma Sugaya-Slater and offspinner Ibrahim Takahashi took two wickets apiece for Japan.
The two sides have games against Nepal lined up in Group A. The top two teams from the group will proceed to the quarter-finals.
Scores:
Afghanistan 129 for 6 in 20 overs (Mohhamad Akram 34, Karim Janat 21, Darwish Rasooli 29, Mohammad Ishaq 25*; Reo Sakurano Thomas 1-05, Shoma Sugaya-Slater 2-18, Ibrahim Takanashi 2-19) beat Japan 81 in 19.3 overs (Reo Sakurano- Thomas 23, Kendel Kadowwaki Fleming 14, Benjamin Ito Davis 17; Arab Gul 4-8, Abdullah Ahmadzai 2-13, Nangeyalia Khan 3-19, Najibullah Zadran 1-07 ) by 48 runs
(Cricinfo)
News
BASL calls for conscience vote on 22nd Amendment
The Bar Association of Sri Lanka (BASL) yesterday called on all political parties, represented in Parliament, to allow their members to vote on the proposed 22nd Amendment to the Constitution according to their conscience, stressing that the responsibility for deciding whether the Bill should be enacted now rests with Parliament.
In a statement issued after the Supreme Court’s determination on the 22nd Amendment Bill, BASL President Rajeev Amarasuriya and General Secretary Nalin de Silva have said the SC’s determination should not be interpreted as an endorsement of the proposed constitutional amendment as a matter of policy.
The BASL has said the SC’s jurisdiction, under Articles 120, 121 and 123 of the Constitution, was to determine the constitutional requirements for the enactment of the Bill, including whether the Bill, or any of its provisions, required approval at a referendum under Article 83.
“The determination is therefore not a determination as to whether the proposed amendment is good or bad policy, desirable or undesirable, wise or unwise, or whether Parliament ought to enact it,” the BASL said.
Full text of the BASL statement: The Supreme Court has now delivered its Determination on the Twenty-Second Amendment to the Constitution Bill and determined that the Bill does not require the approval of the People at a Referendum.
In terms of Articles 120, 121 and 123 of the Constitution, the jurisdiction of the Supreme Court in relation to the Bill is to determine the constitutional requirements for its enactment, including importantly whether the Bill, or any provision thereof, requires the approval of the People at a Referendum by virtue of Article 83.
The Determination is therefore not a determination as to whether the proposed Amendment is good or bad policy, desirable or undesirable, wise or unwise, or whether Parliament ought to enact it.
This distinction is also evident from Sri Lanka’s previous constitutional amendments. During the 48 year history of the second republican Constitution there have been many amendments which passed constitutional muster but nevertheless had a negative effect on democracy, constitutionalism, the independence of the judiciary and the rule of law.
The question that now arises is whether Parliament ought to enact the proposed Amendment. That responsibility rests with Parliament and with each individual Member of Parliament when they vote on the Bill.
In making that decision, Members of Parliament should be mindful of the possible and probable consequences the 22nd Amendment will have on our nation. They should also consider the lack of transparency and a proper consultative process in the introduction of the 22nd Amendment. As representatives of the people they should also consider the concerns that have been expressed in relation to the proposed Amendment by a broad cross-section of society including the Maha Nayakes of the Three Nikayas, the Catholic Bishops’ Conference in Sri Lanka, the Church of Ceylon, the Bar Association of Sri Lanka, the Judicial Service Association, the Commonwealth Lawyers Association, LAWASIA, the International Association of Judges, the United Nations Special Rapporteur on the Independence of Judges and Lawyers, the French National Bar Council, and more than 40 Professional Associations and Unions, including the Government Medical Officers’ Association and other leading professional bodies.
Accordingly, the Bar Association of Sri Lanka calls upon all the political parties in Parliament to allow the Members of Parliament to speak and vote on the 22nd Amendment according to their conscience.
The responsibility now lies with Members of Parliament, when called upon to vote, to take a principled position according to their conscience giving due consideration to their constitutional responsibility, their representative capacity and most importantly their duty to the sovereign People of Sri Lanka.
News
IMF: Sri Lanka on course for 2027 market return
SL to regain access to international financial and capital markets next year in line with IMF projections
Sri Lanka is on course to regain access to international financial and capital markets around 2027, in line with the International Monetary Fund’s (IMF) current economic projections, IMF Mission Chief Evan Papageorgiou said yesterday.
Papageorgiou said the IMF’s core assumptions under Sri Lanka’s economic programme continued to envisage the country returning to international capital markets in 2027.
“Our previous assumption that Sri Lanka will go back to capital markets still stands. We still have a good trajectory to achieving this in 2027 or thereabouts, and that should be the goal,” he said.
Papageorgiou stressed that Sri Lanka could not rely solely on domestic sources of financing to build long-term economic resilience and would need a diversified funding strategy.
“Every country needs to have a good ability to access funds both in domestic markets, as it already has, as well as international markets for eurobonds and other modes,” he said.
He said a return to international capital markets would have significant implications for Sri Lanka’s external debt composition, while strengthening foreign exchange reserves would remain essential as the country prepares to meet future debt-servicing obligations.
The IMF’s assessment comes amid improving international investor sentiment towards Sri Lanka and positive developments in the country’s sovereign credit ratings.
Papageorgiou cited Fitch’s recent upgrade of Sri Lanka’s credit rating as a positive development, saying global investors were increasingly viewing the country from a more constructive perspective.
Sri Lanka remains under the IMF’s Extended Fund Facility (EFF) programme, which is scheduled to continue until March 20, 2027. Regaining access to international capital markets remains a key milestone under the country’s broader economic recovery.
The IMF has stressed the importance of rebuilding Sri Lanka’s foreign exchange buffers and maintaining stability in domestic financial markets as the country approaches substantial external debt repayments.
A sustained improvement in these areas would help strengthen the country’s capacity to return to international markets while safeguarding macroeconomic stability, the IMF has indicated.
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