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Parliament flays FM, etc., for revenue shortfalls: Siyambalapitya says situation not properly assessed

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Ranjith Siyambalapitiya

by Shamindra Ferdinando

Some declarations made by various parliamentary committees about public finance often didn’t represent the actual situation, says State Finance Minister Ranjith Siyambalapitiya.

Siyambalapitiya said so when The Island sought his response to criticism against the Finance Ministry and three revenue collection authorities namely the Inland Revenue, Customs and Excise department, for their failure to meet revenue targets.

The Committee of Public Enterprises (COPE), Sectoral Oversight Committee on Alleviating the Impact of the Economic Crisis, Committee on Ways and Means, Committee on National Economic and Physical Plans and Committee on Public Finance (COPF) respectively headed by Lasantha Alagiyawanne, Gamini Waleboda, Patali Champika Ranawaka, Mahindananda Aluthgamage and Dr. Harsha de Silva, have recently sought explanation from the relevant authorities regarding their failure to carry out specific instructions issued by Parliament.

The State Finance Minister emphasised that those who had been entrusted with revenue collection tasks were in overdrive. When The Island pointed out that the parliamentary committees always based their assessments on the latest available data provided by relevant revenue collection authorities, lawmaker Siyambalapitiya said of the Rs 943 bn mentioned by them as the total amount of uncollected taxes as much as 60 % to 65% had been held up in the legal process at different levels. “The Inland Revenue Department cannot be held responsible for delays caused by lengthy legal processes,” the State Finance Minister said.

Siyambalapitiya said that he wouldn’t deny the possibility of unscrupulous elements resorting to legal measures, including the appeal process to deliberately delay payments.MP Siyambalapitiya said that of the remaining 35% uncollected taxes, about 15% had been collected so far and they were keen to continue with ongoing efforts to bring the operation to a successful conclusion.

Asked whether the Attorney General’s Department had been consulted as regards inordinate legal delays, the State Minister said that there were three rounds of talks with them as well as with Justice Minister Dr. Wijeyadasa Rajapakse, PC.

Siyambalapitiya pointed out that those who had been trying to avoid taxes enjoyed the services of the best lawyers. “We cannot do anything about citizens resorting to legal measures. That is the ground reality,” MP Siyambalapitiya said, urging the parliament to instead explore ways and means to overcome the problem.

Commenting on the massive sugar duty scam perpetrated in Oct 2020, State Minister Siyambalapitiya said that so far Rs 310 mn had been recovered from six importers though altogether 12 businesses were investigated. MP Siyambalapitiya said that the CID conducted a thorough investigation into the sugar tax scam and submitted a report to the AG and was awaiting his instructions to take legal action.

The Auditor General has declared that the government suffered a loss of over Rs 16 bn due to the reduction of sugar tax from Rs 50 to 25 cents by way of a gazette issued on Oct 13, 2020.

Siyambalapitiya acknowledged that deterioration of desired standards couldn’t be rectified overnight. “However, we are making a determined effort to turn around the situation,” the SLPPer said, accusing the Opposition of attempting to exploit the current economic crisis to their political advantage.

At the recent meeting chaired by State Transport Minister Alagiyawanne, in his capacity as the Chairman of COPE, the lawmakers found fault with the Finance Ministry for neglecting its primary duties and responsibilities. The Finance Ministry representatives had been told that a proposal made in 2016 to the Finance Ministry to improve and enhance IT setups at revenue collection authorities wasn’t implemented. Therefore a committee headed by Secretaries to the President and the Premier was established to look into this matter and take whatever steps necessary to expedite the process.



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‘Investigations won’t be stopped due to protests’

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Easter Sunday carnage:

Investigations into the 2019 Easter Sunday terror attacks will not be halted due to protests, demonstrations or Satyagraha campaigns, Minister of Public Security Ananda Wijepala told Parliament yesterday (10), while alleging that investigators had gathered sufficient evidence to establish the involvement of former State Intelligence Service (SIS) Director, retired Major General Suresh Sallay, in a conspiracy linked to the attacks.

Making a special ministerial statement in the House, the Minister said that evidence uncovered during ongoing investigations indicated that Sallay had prior knowledge of the planned attacks and related extremist activities before the coordinated bombings that claimed more than 270 lives and injured hundreds of others, on April 21, 2019.

Wijepala claimed that three weeks before the attacks, Sallay had deployed four Muslim individuals to gather intelligence, including information on the number of worshippers attending mass at a church in Negombo.

According to the Minister, the principal individual among the four had been identified by witnesses to the CID as an ISIS extremist and had subsequently gone missing following the Easter Sunday attacks.

“There is evidence suggesting that Major General Sallay met the informant who had tipped off Army Intelligence regarding the attacks at a hotel in Colombo,” Wijepala said.

The Minister maintained that investigators had uncovered evidence indicating that Sallay had taken steps to prevent the disclosure of information that could have revealed crucial details relating to the attacks and the events leading up to them.

Referring to allegations that Sallay had been subjected to inhumane treatment while in custody, Wijepala rejected such claims, describing them as false and misleading.

He told Parliament that the former intelligence chief had been afforded all facilities and privileges due to a primary suspect under the law, including unrestricted access to legal counsel.

“The Magistrate personally visited Sallay to ascertain his health and wellbeing. At no stage did he complained of any inhumane treatment. Neither has he lodged complaints with any other relevant authority in that regard,” the Minister said.

Wijepala also disclosed that Sallay had thus far declined to provide investigators with the passwords to his laptop computer and mobile phone, a move he described as an attempt to obstruct the investigative process.

“He is acting in a manner that hinders the progress of investigations,” the Minister alleged.

The Public Security Minister maintained that the government remained committed to uncovering the full truth behind the Easter Sunday attacks and bringing all those responsible before the law, irrespective of their status or position.

Emphasising that the investigation would continue without interference, Wijepala said attempts to exert pressure through public protests or Satyagraha campaigns would not influence the course of the inquiry.

“The investigations into the Easter Sunday attacks will not be halted by any protests or Satyagraha,” he said.

By Saman Indrajith

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267,138 Lankan children dropped out of school system between 2018 and 2024

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A total of 267,138 children dropped out of the school system between 2018 and 2024, Prime Minister and Minister of Education Dr. Harini Amarasuriya informed Parliament yesterday (10).

Responding to a question raised by SJB Ratnapura District SJB MP Hesha Withanage, the Prime Minister said that the government did not possess definitive data on school dropouts from 2010 to the early part of 2017.

She explained that the figures for the period from 2018 to 2024 had been derived from annual school census reports using an internationally recognised methodology that takes into account student enrolment figures and dropout rates from Grade One to Grade Ten.

According to the statistics presented to Parliament, 38,839 students dropped out of school in 2018,

while the figure increased to 41,503 in 2019. In 2020, the number stood at 32,540 before declining further to 25,492 in 2021.

However, a sharp increase was recorded in 2022, when 52,596 students were identified as having left the school system. The figure remained high in 2023 at 50,345 before declining to 25,823 in 2024.

The Prime Minister cautioned that the figures did not necessarily indicate that all students classified as dropouts had completely discontinued their education.

She noted that some students may have transferred to schools in other provinces, enrolled in international schools, or migrated overseas with their families while continuing their studies.

Dr. Amarasuriya said that such cases could not be separately identified under the methodology used to compile the statistics and were, therefore, included in the overall dropout figures.

Addressing the causes of school dropouts, the Prime Minister said a range of factors contributed to students leaving the formal education system.

These included personal circumstances, school-related issues, family and economic difficulties, social influences, as well as students opting for alternative educational pathways and training opportunities, she said.

By Saman Indrajith

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PM declares PC polls only under new electoral system

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Prime Minister Harini Amarasuriya told Parliament yesterday that Provincial Council elections would not be conducted under the existing proportional representation system and would instead be held under a new electoral system.

Responding to a question raised by MP Ravi Karunanayake, the Prime Minister said there was no justification for holding elections without ensuring adequate representation for women and youth in Provincial Councils.

She said that the government’s position was to first finalise reforms to the electoral system before proceeding with polls.

The Prime Minister also provided a detailed breakdown of when the terms of Provincial Councils expired, noting that all nine councils had been without elected administrations for several years. According to her, the Sabaragamuwa Provincial Council term ended on September 29, 2017, followed by the Eastern and North Central Councils on September 30 and October 1, 2017 respectively.

The Central and North Western Provincial Councils ended their terms on October 08 and 10, 2018, while the Northern Provincial Council term ended on October 24, 2018. The Southern Provincial Council term expired on April 10, 2019, followed by the Western Provincial Council on April 21, 2019, and the Uva Provincial Council on October 8, 2019.

Amarasuriya said that under Section 10(a) of the Provincial Councils Elections Act No. 2 of 1988, the Election Commission was required to publish a notice of intention to hold an election within one week after the dissolution or expiry of a council, following a direction from the President.

However, she noted that the Election Commission had not issued such notices due to the absence of enabling legal provisions following subsequent amendments.

She further explained that under Section 3A of the Provincial Councils Elections (Amendment) Act No. 17 of 2017, the holding of elections is linked to the completion of a delimitation process. This requires the appointment of a Delimitation Committee by the President to define electorates within administrative districts and submit its report to Parliament, with elections to be held only after parliamentary approval.

The Prime Minister said the delimitation process has not yet been completed, which has prevented the conduct of Provincial Council elections under the revised framework.

Amarasuriya also informed Parliament that a parliamentary select committee had been appointed to examine and make recommendations on whether Provincial Council elections could be conducted under the previous electoral system through further amendments to existing legislation.

The committee, titled the “Select Committee of Parliament to look into and report to Parliament on the matter of selecting the Electoral System under which the Provincial Council Elections should be held and submit its proposals and recommendations in that regard,” comprises MPs Vijitha Herath (Chairman), Nizam Kariapper, Chandana Sooriyarachchi, Darmapriya Wijesinghe, Samanmali Gunasingha, Shanakiyan Rasamanickam, Lakshman Nipuna Arachchi, Mano Ganesan, Ranjith Madduma Bandara, Arun Hemachandra, Sunil Watagala and Muneer Mulaffer.

She said further decisions regarding the holding of Provincial Council elections will be taken based on the recommendations of the parliamentary select committee.

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