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Labour Minister opposes govt. move to tax EPF, ETF

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By Saman Indrajith

Minister of Labour Nimal Siripala de Silva told Parliament yesterday that the Ministry of Labour was opposed to taxing the Employees’ Provident Fund.

Responding to a question raised by Opposition Leader Sajith Premadasa on the proposed surcharge on superannuation funds, demanding that a gazette, announcing the Surcharge Tax Bill be withdrawn, Minister de Silva said: “My stance on this matter is clear and it has already been announced. The origin of this issue is not the gazette. The Inland Revenue Department has said the income earned by investing EPF and ETF money should be taxed. Yet, our ministry’s position is clear: the EPF and ETF should not be taxed and the position of the Inland Revenue Department is wrong. We have informed the Treasury that this definition should be amended. We have also informed the Commissioner of the Department of Inland Revenue. We informed them of our position months ago,” the minister said.

Opposition Leader Premadasa: I am thankful to the minister for his honesty. The minister has told this House that his ministry is opposed to this. Then, how could the Finance Ministry issue a gazette of this nature?

UNP Leader Ranil Wickremesinghe: We must discuss this matter in the party leaders’ meeting and thereafter we can debate it here to prepare a draft to submit for the approval of Parliament to ensure that both EPF and ETF are exempted from the taxes.

Chief Opposition Whip Kandy District MP Lakshman Kiriella: We demand a debate on this matter. This is fundamentally wrong because this leads to double taxation. An EPF beneficiary would be taxed for the amount of his money. Those receiving EPF face double taxation as a tax is imposed when withdrawing the funds and the Fund will be taxed again on investments. Double taxation is against the law. Therefore, we demand a debate on this matter.

Trade Minister Bandula Gunawardena: It is during the Yahapalana time this new income tax law was passed. It is according to that law these regulations are introduced. You passed the wrong law removing the tax exemptions given to these funds.

Sports Minister Namal Rajapaksa: The new circular in question was issued as per the provisions of the Inland Revenue Act No 24 of 2017. It was your government that brought this Act. It is wrong for you to speak as if you do not know the matter. MP Kiriella demands a debate on the economy stating that he does not know of the prevailing economic situation. In the meantime, he tells in the meetings outside parliament that the economy is collapsing.

Chief Opposition Whip Kandy District MP Lakshman Kiriella: Minister Namal Rajapaksa said that it was as per the provisions of an Act passed during our time that the taxation was introduced. I ask him to read to this House the particular section from that Act enabling taxation. I challenge him to show us such a section. Can you do that?

Minister Namal Rajapaksa: Minister Bandula Gunawardena will read out the particular section to this House tomorrow.

The Chief Opposition Whip: He spoke of a section, but he does not know where it is. He does not know what he spoke of.

Earlier in the day, leader of the opposition Premadasa said the country’s current foreign reserves available for importing goods were only sufficient for three weeks. The government had failed to address the matter in the House. The government had imposed a 25 percent tax on Sri Lanka’s largest fund, the Employees’ Provident Fund, which is worth Rs.3 trillion, which generated a profit of around Rs. 250 billion. The Minister of Finance is attempting to misappropriate funds belonging to the public for implementing the ‘100,000 Projects’ through the Budget’s rural development programme.

He demanded to know whether the government was attempting to misappropriate funds amounting to Rs.65 billion from the EPF.



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CJ urged to inquire into AKD’s remarks on May 25 court verdict

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CJ Surasena

‘Bar Association must reveal its stand’

Civil society group ‘Free Lawyers’ has requested Chief Justice Preethi Padman Surasena to probe whether political pressure was brought on a Magistrate, or a High Court Judge, in respect of an ongoing high profile case.

Speaking to The Island on behalf of ‘Free Lawyers,’ Rajith Keerthi Tennakoon said that they felt the urgent need to seek the CJ’s intervention, following the May Day declaration by President Anura Kumara Dissanayake that the verdict of a case that was heard on 30 April would be given on 25 May. Tennakoon said that addressing the NPP’s main May Day rally at Maharagama, the President asked the people to be ready to celebrate that verdict. The President couldn’t have said so if he hadn’t been aware of the impending verdict, Tennakoon said, while emphasising the responsibility on the part of the Bar Association to state its position on the issue.

‘Free Lawyers’ recently captured pubic attention following its exposure of the theft of USD 2.5 mn from the Treasury.

Responding to a query, Tennakoon said that on behalf of ‘Free Lawyers,’ Maithri Gunaratne, PC, on Monday, 4 April, wrote to both CJ Surasena and President of the Bar Association Rajeev Amarasuriya.

Alleging that President Dissanayake’s declaration caused immense harm to the independence of the judiciary and raised controversy over the judgement that would be given on 25 May, ‘Free Lawyers’ organisation also asked the CJ to inquire into whether the entire judicial process was under political pressure.

Tennakoon said that they expect the Bar Association to reveal its position on President Dissanayake’s statement. Tennakoon pointed out that during the May Day address, President Dissanayake made reference to 15 cases that were to be taken up during this month, whereas Transport, Highways and Urban Development Minister, as well as Leader of the House Bimal Rathnayake, mentioned nearly 10 names of politicians, both sitting and former lawmakers, to be summoned beginning, May.

Tennakoon said that the NPP appeared to have used May Day to counter growing accusations over the Colombo port container controversy, coal scam, Rs 13.2 bn NDB fraud and theft of USD 2.5 mn from the Treasury and USD 625,000 from the Sri Lanka Postal Service.

By Shamindra Ferdinando

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ITAK MPs representing East take their woes to Canadian HC

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The Canadian High Commissioner to Sri Lanka and the Maldives, Isabelle Martin over the last weekend met representatives of the Ilankai Tamil Arasu Kachchi (ITAK) in the East. Tamil Guardian reported that talks focused on the challenges facing the Tamil people.

The meeting was held at the office of ITAK Member of Parliament Kaveendiran Kodeeswaran and brought together parliamentarians representing the Batticaloa and Ampara districts, alongside local government officials including divisional council chairpersons.

Discussions centred on a range of pressing issues, including livelihoods, access to education, employment opportunities and ongoing human rights concerns, as well as the broader state of democratic governance in the region.

High Commissioner Martin sought updates on prevailing socio-economic conditions, particularly the challenges confronting local communities in the East. She noted the concerns raised and indicated that she would follow up on the matters discussed.

Among those present were ITAK MPs Kaveendiran Kodeeswaran, Gnanamuthu Sirinesan and Dr Elayathamby Srinath, along with several local council representatives.

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People demand release of Keppapilavu land

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A section of the protesters

A section of residents of Keppapilavu, in Mullaitivu, on May Day protested. demanding the release of lands still occupied by the military, 17 years after the end of the armed conflict.

They reiterated their longstanding demand for the return of lands seized by the military, in 2009, to establish a camp, sources in the North said. For over 17 years, Keppapilavu residents have sustained a continuous campaign of protests, petitions and advocacy efforts, calling for the right to resettle on their original lands, they said.

Despite limited releases under successive governments, protesters stressed that substantial areas remain under military control. They highlighted that 171 acres were yet to be returned, including 59.5 acres of residential land and 111 acres of agricultural land. The residential areas once supported over 55 families and included homes, schools, places of worship and shared community spaces.

Holding placards and chanting slogans, demonstrators said that their struggle extends beyond land ownership, framing it as a fight for dignity, livelihood and the restoration of a community life disrupted since 2009.

Residents declared that since the current government assumed office, multiple appeals have been made through formal channels, including submissions to the Presidential Secretariat and the Mullaitivu District Secretariat. However, they stated that these efforts have yielded no meaningful progress toward the release of the remaining lands.

Protesters called on Sri Lankan and the local authorities to take immediate and concrete steps to return the entirety of the occupied land, enabling displaced families to resettle and rebuild their lives without further delay.

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