News
Workers must not be taxed to compensate for loss of state revenue due to mismanagement – trade union collective
Opposition to the proposed surcharge tax of 25 percent on workers’ social security and welfare funds is growing with a collective of trade unions representing several sectors alleging that workers are not taxed in any decent society to compensate for the loss of government revenue due to financial mismanagement and lack of clear economic policy.
Anton Marcus, Joint Secretary, Free Trade Zones and General Services Employees Union has issued the following statement on behalf of Free Trade Zones and General Services Employees’ Union (FTZ & GSEU), Sri Lanka Nidahas Sevaka Sangamaya (SLNSS), Ceylon Mercantile and Industrial Workers’ Union (CMU), Ceylon Federation of Trade Union (CFTU), Intercompany Employees’ Union (IEU), Ceylon Bank Employees Union (CBEU), Lanka Jathika Estate Workers Union (LJEWU), National Union of Sri Lankan Seafarers (NUSS), Jathika Seva Sangamaya (JSS), Ceylon Estate Staff Union (CESU), United Federation of Labour (UFL), and the Joint Plantation Trade Union Centre (JPTUC): The Government’s decision by way of a gazette notification issued on 07 February 2022 for a bill to be presented in pPrliament to levy a “one-time” Surcharge Tax of 25 per ent on the gross income of over Rs.02 billion during the revenue year 2020 April 01 to 2021 March 31, will include both the “Employees’ Provident Fund” (EPF) and the “Employees’ Trust Fund” (ETF) as provided for under “Division III: Trusts and Unit Trusts” of the Inland Revenue Act, No. 24 of 2017.
This we say is both immoral and unethical as social security and welfare funds of employees and also the poor are never taxed in any decent society to compensate for the loss of revenue for the State due to financial mismanagement and lack of clear economic policy.
It is calculated the EPF alone would be taxed around Rs.62 billion once again on its already taxed income for the revenue year 2020-2021 that concluded almost a year ago. This massive amount of money that could be taxed from the EPF alone, with more tax from the ETF too is money that should be divided among 2.9 million employees who are active contributing members of the EPF and 19.4 million members in all.
We wish to note, the previous government too imposed a one-time tax levy on the EPF in 2016 that was promised as never to be repeated. Sadly, it is coming back again as another “one time only” Surcharge Tax that now becomes a precedent for all governments in the future for “easy revenue”.
EPF is a social security and welfare fund for private and semi-State sector employees with no monthly retirement salary to tide over their last years out of employment. This fund needs to be further strengthened for the private sector and semi-State sector employees with health benefits and other emergency welfare services. It is disgusting therefore to have governments compensating their inability to manage national finances efficiently, squeezing off large chunks of money from employee benefits, instead.
As a collective of trade unions in the National Labour Advisory Council (NLAC), we wish to demand from this government to immediately withdraw all provisions in the proposed bill gazetted on 07 February (2022) in levying any tax by any name, from employee social security and welfare funds, be it the EPF, ETF or any other and request the government to seek more progressive measures in collecting required revenue for the State.
Latest News
Heat Index at ‘Caution level’ in the Western, Sabaragamuwa, Southern and North-western provinces and in Anuradhapura, Mannar, Vavuniya and Monaragala districts
Warm Weather Advisory
Issued by the Natural Hazards Early Warning Centre of the Department of Meteorology
at 3.30 p.m. on 25 March 2026, valid for 26 March 2026.
The Heat index, the temperature felt on human body is likely to increase up to ‘Caution level’ at some places in the Western, Sabaragamuwa, Southern and North-western provinces and in
Anuradhapura, Mannar, Vavuniya and Monaragala districts.
The Heat Index Forecast is calculated by using relative humidity and maximum temperature and this is the condition that is felt on your body. This is not the forecast of maximum temperature. It is generated by the Department of Meteorology for the next day period and prepared by using global numerical weather prediction model data.

Effect of the heat index on human body is mentioned in the above table and it is prepared on the advice of the Ministry of Health and Indigenous Medical Services.
ACTION REQUIRED
Job sites: Stay hydrated and takes breaks in the shade as often as possible.
Indoors: Check up on the elderly and the sick.
Vehicles: Never leave children unattended.
Outdoors: Limit strenuous outdoor activities, find shade and stay hydrated.
Dress: Wear lightweight and white or light-colored clothing.
Note:
In addition, please refer to advisories issued by the Disaster Preparedness & Response Division, Ministry
of Health in this regard as well. For further clarifications please contact 011-7446491.
News
US dodges question on AKD’s claim SL denied permission for military aircraft to land
By Shamindra Ferdinando
A spokesperson for the US Embassy in Colombo declared that the United States and Sri Lanka maintain a long-standing defence partnership, grounded in transparency, mutual respect, and shared interests.
The official said so in response to The Island query regarding President Anura Kumara Dissanayake’s recent bombshell disclosure, in Parliament, that his government declined to allow the US Air Force to use the Mattala Rajapaksa International Airport, following the eruption of the latest West Asia war.
We sought views of the US on President Dissanayake’s claim against the backdrop of Sri Lanka being a party to the Acquisition and Cross-Servicing Agreement (ACSA) since 2007. Sri Lanka extended the ACSA in 2017, for another 10-year period, and its extension comes up next year.
The President revealed that the US had requested permission to use Mattala, between 04 and 08 March.
Claiming that the request had been made on 26 February, two days before the war began, President Dissanayake said that the US had sought to land two aircraft, carrying eight anti-ship missiles, but that the request had been turned down to maintain Sri Lanka’s neutrality. The President revealed that the aircraft were to come from a US base in Djibouti.
The US embassy pokesperson explained that questions related to operational movements, including ‘Operation Epic Fury’, should be directed to the Department of War (DOW) in Washington.
Camp Lemonnier is the primary base of operations for US Africa Command in the Horn of Africa. China, too, has its only overseas military base in Djibouti in the vicinity.
Military sources said whatever various interested parties said about US-Sri Lanka relations, the former provided significant intelligence support during last phase of the conflict that enabled the Navy to hunt down floating LTTE arsenals in international waters. Of the eight LTTE vessels sunk, the US backed four hits with specific intelligence, sources said.
News
No decrease in remittances from workers due to Gulf conflict, but significant drop in tourist arrivals – CB Governor
Sri Lanka’s worker remittances had not seen a decrease despite the ongoing conflict in West Asia, Central Bank (CBSL) Governor, Dr. Nandalal Weerasinghe said yesterday.
“Based on currently available data, they have not seen a decline in remittances. In fact, according to that we have observed, is a slight increase in remittances in the past few days, ” the Governor said at a media conference held at the Central Bank head office in Colombo.
Governor Weerasinghe also mentioned that he had not seen any reports about Sri Lankans returning to the country from the Middle East due to the ongoing conflict.
The Central Bank Governor, however, acknowledged that there had been a decrease in tourist arrivals. He confirmed that tourist arrivals had decreased by around 17 percent due to the current volatile situation in the Middle East.
Meanwhile, the Central Bank of Sri Lanka has decided to maintain the Overnight Policy Rate (OPR) at the current level of 7.75%, following its latest Monetary Policy Board meeting.
By Hiran H Senewiratne
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