Business
UNDP study shows need for wider public engagement of tax officials with taxpayers in Sri Lanka
By Sanath Nanayakkare
The United Nations Development Programme (UNDP) in Sri Lanka, in collaboration with the Ministry of Finance, Inland Revenue Department, University of Moratuwa, and the National Innovation Agency of Sri Lanka co-convened the first-ever National Tax Dialogue to address contemporary issues surrounding taxation and fiscal policies in the island. The opening was attended by Shehan Semasinghe, State Minister of Finance and Ms. Azusa Kubota, Resident Representative, UNDP in Sri Lanka.
In light of the ongoing economic reforms and the need to bring in citizens’ perspectives, the National Dialogue drew attention to tax morale, social/fiscal contract, fairness in taxation, transparency and accountability of revenue institutions and digitalisation of public service delivery. The Dialogue launched research findings from the first ‘Taxpayer Perception Study’ in Sri Lanka, collaboratively conducted by the Ceylon Chamber of Commerce and UNDP in Sri Lanka. The nationally representative study revealed public perceptions on issues surrounding tax burden, evasion, trust in institutions, and experiences with revenue institutions which are particularly pertinent in the context of institutional reform.
By bringing together over 100 stakeholders representing diverse interests and perspectives including policymakers, legislators, bureaucrats, academia, professional bodies, private sector as well as civil society, the dialogue served as a platform for the exchange of opinions and sharing of insights across various awareness levels. The discussions led to a shared understanding of the importance of taxation for the achievement of SDGs and national development, and the need to enhance transparency and accountability in the use of tax revenue. The knowledge and insights generated through this dialogue will serve as a cornerstone for national policy-making institutions, providing valuable input for informed decision-making processes.
The event featured plenaries of global experts renowned for their exceptional expertise in the realm of taxation. Among them are Alex Cobham, Chief Executive of the Tax Justice Network; Lauren Kahn, Director of Strategy and Research, Public Digital UK; and Sudarshan Kasturirangan, Regional Programme Specialist for Asia Pacific for UNDP Tax for SDGs whose contributions enriched the discussions and provided invaluable perspectives on navigating the complexities of tax policies on a global scale.
Shehan Semasinghe, State Minister of Finance stated, “Taxation equips states with resources to progressively achieve SDGs. These revenues represent public resources that need to be deployed with a view to optimizing social returns. Considering this relationship, a national dialogue on taxation is a necessity and serves a constructive contribution to Sri Lanka’s democratic process.”
UNDP in Sri Lanka, Resident Representative, Ms. Azusa Kubota pointed out that “Sri Lanka’s economic crisis offers a historic opportunity to optimise the use of resources for SDG attainment. This entails concerted efforts to strengthen the linkages among planning, budgeting, monitoring and oversight and citizens’ engagement. Therefore, the National Tax Dialogue is timely to foster a whole-of-society understanding and commitment to improving tax morale for effective SDG attainment. The Dialogue assumes global significance, especially as the UN Secretary-General in February 2023 called for an ‘SDG Push’, a surge in investment of $500 billion annually in affordable long-term finance for developing countries.”
“One of the key recommendations stemming from the Tax Perception Survey is the need for wider public engagement of the tax officials with the taxpayers. UNDP is already supporting the Inland department (IRD) with such efforts in operationalizing solutions which are instrumental towards open and proactive communication and outreach,” she said.
To catalyze bilateral trade and investment and drive regional economic integration, the Consulate General of Sri Lanka in Mumbai facilitated a series of high-level strategic engagements between The Ceylon Chamber of Commerce and leading Indian commercial institutions on May 13 and 14.
The delegation from The Ceylon Chamber of Commerce was led by its Chairman Krishan Balendra, CEO of John Keells Holdings Pvt Ltd and comprised a distinguished group of Sri Lankan industry leaders from Hirdaramani Group, Maliban Biscuit Manufactories (Pvt) Ltd, Sierra Cables PLC, A. Baur & Co. (Pvt) Ltd, Jetwing Travels (Pvt) Ltd, Ceylon Biscuits Ltd, Hayleys PLC, Vidullanka PLC, MAS India Clothing (Pvt) Ltd, Tudawe Brothers (Pvt) Ltd, David Pieris Holdings (Pvt) Ltd, Bank of Ceylon, Aitken Spence PLC, LTL Holdings Ltd. and Orel IT Pvt. Ltd.
On May 13, The Confederation of Indian Industry (CII) and The Ceylon Chamber of Commerce jointly hosted the ‘India–Sri Lanka Business Forum: Partnering in Sri Lanka’s Growth and Investment’ and an exclusive CEO interaction in Mumbai. The forum convened senior government officials, policymakers, and industry leaders from both countries.
These included, among others, High Commissioner of Sri Lanka to India Mahishini Colonne; Consul General of Sri Lanka in Mumbai Priyanga Wickramasinghe; Senior Economic Advisor to the President of Sri Lanka Duminda Hulangamuwa; Secretary (Protocol, FDI, Diaspora & Outreach) and Chief of Protocol Government of Maharashtra Rajesh Ravindra Gawande; Co-chairman, CII Western Region Sub-committee on International Trade & Investment and Chief Executive Officer, Polycab India Ltd. Anurag Agarwal; Chairman, CII Western Region Sub-Committee on Tourism and Hospitality and Executive Director, Kamat Hotels India Ltd Vishal Kamat and Secretary General & CEO of The Ceylon Chamber of Commerce Shiran Fernando.
Conversations centered on accelerating cross-border cooperation across high-priority sectors, including technology, manufacturing, healthcare, renewable energy, and digital transformation.
On May 14, the delegation engaged in productive Business-to-Business sessions with the IMC Chamber of Commerce and Industry, culminating in the formal renewal of the Memorandum of Understanding between The Ceylon Chamber of Commerce and IMC. The delegation also participated in an interactive session hosted by the World Trade Center (WTC) Mumbai and the All India Association of Industries (AIAI).
The two-day mission concluded with a robust exchange of views cementing a strong foundation for sustained bilateral collaboration and paving the way for a new era of industrial synergy between Colombo and Mumbai. (Consulate General of SL, Mumbai)
Demonstrating its commitment to supporting the nation’s next phase of economic transformation, Commercial Bank of Ceylon has become one of the first banks in Sri Lanka to enter into an agreement to establish a fully-fledged branch at Port City Colombo, marking a significant step in the Bank’s strategic expansion into the country’s emerging international financial hub.
The agreement was signed by Sanath Manatunge, Managing Director/CEO of Commercial Bank, and Xiong Hongfeng, Managing Director of CHEC Port City Colombo (Pvt) Ltd. The partnership further reinforces Commercial Bank’s position at the forefront of Sri Lanka’s evolving financial landscape.
The proposed branch will function as a fully-fledged banking branch, offering a full spectrum of products and services tailored to the needs of corporates, investors, businesses and retail customers operating within the Port City Colombo ecosystem. These will include digital banking facilities, trade services, foreign currency transactions, corporate banking solutions, deposits, lending, card services and remittance facilities.
By establishing a presence within Port City Colombo, the Bank said it aims to further strengthen its ability to support cross-border business and investment flows while positioning itself to meet the sophisticated requirements of global investors, multinational corporates and high-net-worth individuals expected to operate within the Special Economic Zone.
Commenting on this ground breaking initiative, Sanath Manatunge, Managing Director/CEO of Commercial Bank said the Bank’s decision to establish a fully-fledged branch within Port City Colombo reflects both its long-term confidence in the project and its readiness to support the evolving needs of a globally integrated financial ecosystem.
“As Sri Lanka’s largest private sector bank with a strong track record in serving corporates, international clients and high-value businesses, we see Port City Colombo as a pivotal development in the country’s economic future,” he said. “Our presence within this Special Economic Zone will enable us to seamlessly support cross-border transactions, facilitate international trade and investment, and deliver world-class banking solutions backed by advanced digital capabilities. Being one of the first banks to formalise plans for a full-service branch within Port City Colombo reaffirms our role as a pioneer in driving financial innovation and supporting national development.”
A 269-hectare extension of Sri Lanka’s central business district, Port City Colombo is being developed as a multi-service Special Economic Zone designed to serve as a regional financial centre, business and lifestyle hub. One of the largest public-private partnership projects in the country, it is envisioned as a catalyst for high-value investments, underpinned by advanced infrastructure, cutting-edge technology and a progressive regulatory framework.
“Our role as master developer goes beyond building the city itself. It is about creating the foundations for a functioning international business and financial hub,” said Mr Xiong Hongfeng, Managing Director of CHEC Port City Colombo (Pvt) Ltd. “The establishment of institutions such as Commercial Bank within Port City Colombo is an important part of that process, because it brings real operational depth and credibility into the ecosystem from an early stage. It reflects the broader momentum behind the project and the growing shift towards a more globally connected, investment-driven economy in Sri Lanka.”
Sri Lanka’s renowned specialty tea brand “Singharaja Wiry Tips,” produced by Lumbini Tea Valley Ceylon, has won two major accolades at the prestigious “The Leafies International Tea Awards” held recently at Fortnum and Mason in the United Kingdom.
The award-winning low-grown Ceylon tea secured the titles of “Best Ceylon Black Tea” and the overall “Best of All Black Teas,” emerging as the top black tea entered at the international competition.
With these latest honours, “Singharaja Wiry Tips” has now earned its 43rd and 44th international awards, further strengthening its reputation as one of the world’s most highly awarded black teas.
Classified as FBOPF EX SP (Flowery Broken Orange Pekoe Fannings Extra Special), the tea is named after its distinctive golden-tipped wiry leaves and unique flavour profile derived from the ecosystem surrounding the UNESCO World Heritage-listed Singharaja Rainforest, which borders the Lumbini plantation.
Lumbini Tea Valley’s latest innovation, “Lumbini Screw Buds,” also received high commendation at this year’s competition, highlighting the company’s continued excellence in producing premium Ceylon teas.
Chairman and Managing Director Chaminda Jayawardena, who accepted the awards in London, credited the achievement to the dedication of the Lumbini workforce and the support of nearly 1,800 tea farmers supplying high-quality green leaf harvested using the traditional “two leaves and a bud” method.
by SK Samaranayake
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