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Controversial Social Security Contribution Bill put off due to resistance from Opposition

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By Saman Indrajith

The government yesterday decided to put off the Social Security Contribution Bill when the JVP and the SJB, in Parliament opposed it vehemently.

The Social Security Contribution Levy Bill had been listed for the second reading debate, and Parliament sources said that the party leaders had agreed to pass the Bill with several other regulations, without debate to save time for another debate, listed for the day, on current nutritional problems of children and women.

When the Leader of the House and Education Minister got up to present the Bill for the approval of the House, JVP leader, Anura Kumara Dissanayake, said that the Bill would place an additional tax burden on people. “The government keeps on levying taxes on people. The government’s excuse is that it does not have money. There is a financial crisis. Then it should first take action against former Central Bank Governor and ex-Finance Minister Basil Rajapaks for bankrupting the country. What action are you going to take against them?” Dissanayake queried.

The JVP leader said that the Bill envisaged introducing a social security tax. “The government keeps shifting the burden on to people. It increased the VAT from 8 percent to 12 percent and then most recently to 15 percent. Prices of all essential commodities including medicines, have gone up. There is a new tax called social security tax of 2.5 percent on the turnover. This turnover tax is on importation, production, selling and services. This tax is applicable to all fields of the economy. One who owns an industry, covering all these aspects, will have to pay 2.5 percent in importing, another 2.5 percent for 85 percent of the production and this tax will be levied again in distribution and selling. Thus, this tax is like a compound tax. With 15 percent VAT, this new addition will result in an increase of tax cost to around 20 percent. People are in great difficulty owing to the existing taxes. This is very unfair and unjust. No action has been taken against those who caused this crisis.”

“We are against this Bill,” Dissanayake said.

SJB MP and Chairman of the Public Finance Committee Dr. Harsha de Silva also opposed the the Bill.

He said it was not proper to enact a Bill without presenting a review of it.

He said that the Public Finance Committee did not approve any Bill without reviewing it. “However, we had to approve the Social Security Contribution Bill as we were informed that it was urgent.”

MP de Silva said that the Bill required some amendments and it could not be approved without perusal.

He said that the amendments to the Bill had been proposed without the approval of the committee.

“In other countries, they have either VAT or Turnover tax. You cannot have both. An accounting firm predicted that this 2.5 percent could go up to seven percent in the process. I agree with MP Dissanayake. This is an unfair tax.”

Dr. De Silva said the property sales business had been taken out of the list of enterprises to be taxed by the social security tax. “That is to help the rich. You are taxing the poor while giving exemptions to the rich. This is an unjust act,” he said.

Responding to the opposition MPs, Leader of the House Minister Susil Premajayantha proposed the postponement of the vote on the Social Security Contribution Bill to Thursday.



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Ex-SriLankan CEO’s death: Controversy surrounds execution of bail bond

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Kapila Chandrasena

Prof. Prathibha Mahanamahewa has emphasised the need to examine the circumstances under which the court staff executed the bail bond, and the release process, in respect of the late Kapila Chandrasena, former Chief Executive Officer of SriLankan Airlines.

Chandrasena’s body was found in a house at Pedris Road, Colombo 03.

In case of any doubt regarding bail condition/s or any other matter (insufficient surety, identity issues, suspicious documents and unclear order), the Registrar had to get in touch with the relevant Magistrate, Mahanamahewa said.

Mahanamahewa was responding to The Island query regarding the acceptance of two Muslims as sureties. Had they followed the time-tested procedure, court registry/registrar staff would never have accepted sureties as blood relatives of Chandrasena, Mahanamahewa said, alleging a major defect in the execution of the bail bond.

They were arrested by police and remanded by the Colombo Magistrate’s court, till 13 May, pending further investigations.

Colombo Chief Magistrate Asanga S. Bodharagama, on 5 May, granted to Chandrasena cash bail of Rs. 500,000 and three surety bails of Rs. 10 million each. But soon after Chandrasena received bail, the court was told that two of the Rs. 10 million sureties had been produced, after payment of Rs. 15,000 each, were made to those two individuals to act as guarantors.

The bail application had been submitted by Rienzie Arsecularatne, PC, appearing on behalf of Kapila Chandrasena, when the case was earlier taken up, on 28 April.

Police also arrested an elderly person who arranged for the two persons who hadn’t even seen Chandrasena, even once, to offer themselves as sureties.

As soon as the police revealed the fraudulent manner Chandrasena obtained bail, Chief Magistrate Bodharagama issued an order to arrest and produce him before the court. This order was issued consequent to a request made by the Commission to Investigate Allegations of Bribery or Corruption (CIABOC), on the grounds that the defendant had violated bail conditions. The CIABOC wanted Chandrasena held pending the conclusion of the case.

Sources familiar with the execution of bail bond said that the moment the suspects had submitted their National Identity Cards and letters from Grama Sevakas, the court registry/registrar staff should have rejected them. In a such high-profile case, the failure on the part of the lawyers, representing Chandrasena, to check the gsureties’ relationship with Chandrasena, was another glaring shortcoming, sources said, pointing out that after having submitted bail application on 28 April, the defence team should have come prepared to put forward genuine guarantors.

The Island contacted the Bar Association of Sri Lanka for comment on the manner in which the court staff had handled bail for Chandrasena, but there was no response.

Sri Lanka’s former Ambassador to Moscow, accredited to Kiev, Udayanga Weeratunga, said that a thorough investigation should be conducted to ascertain facts about the execution of the bail bond. Asked whether he had been in touch with Chandrasena, Weeratunga said that he spent his first day at Welikada with Chandrasena and Ranjan Ramanayake in one cell. “That happened on 14 February, 2020. I was arrested when I returned to the country, from the UAE, and produced before the then Magistrate Ranga Dissanayake, the incumbent Director General of CIABOC,” Weeratunga said.

Weeratunga said that a couple of months after the change of government in 2024, the US State Department imposed a travel ban on him and Chandrasena and their families over what the US termed as significant corruption.

Weeratunga said that altogether the US designated 14 persons and, of them, two were Sri Lankan, who happened to be him and Chandrasena, accused of corruption in respect of acquisition of MiG 27s from Ukraine and the Airbus deal, during President Mahinda Rajapaksa’s tenure as the President.

SLPP sources said that Chandrasena’s demise shouldn’t prevent proper investigation on his affidavit that claimed pressure brought on him to name Mahinda Rajapaksa as a recipient of the Airbus bribe.

By Shamindra Ferdinando

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Law applies to all, regardless of power or influence – Prez

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President Anura

President Anura Kumara Dissanayake emphasised yesterday (12) that the law would be enforced equally and no one was allowed to be above the law.

Addressing the Matale District Coordinating Committee meeting, at the Matale District Secretariat, President Dissanayake said, “Do not be afraid to work, but be afraid to engage in irregularities. Everyone must first be subject to the law and secondly, must fear the law. This applies to everyone, from the President down to the Grama Niladhari.”

“If we are to usher in a new era, we must submit to the rule of law. No one can be above it, he said, adding that previous Presidents had even violated the Constitution with impunity.

The President said that if there were any instances of selective law enforcement, they should be brought to his attention for action. Everyone was required to cooperate, if called upon to make statements in an investigation, he said.

By S.K. Samaranayake

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Sri Lanka and Belarus to sign several MoUs

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Minister of Foreign Affairs, Foreign Employment and Tourism, Vijitha Herath, is on an official visit to Belarus, from yesterday to Friday (15), on the invitation of the Foreign Minister of the Republic of Belarus, Maxim Ryzhenkov.

The text of the Foreign Ministry release: “This visit will mark a milestone in the bilateral partnership as the two countries commemorated the 25th Anniversary of the establishment of Diplomatic Relations last year.

During his visit to Minsk, Minister Herath will call on Belarus President Alexander Lukashenko and will hold bilateral discussions with the Minister of Foreign Affairs of Belarus. Minister Herath is also scheduled to meet the Belarus Ministers of Education and Health. Several MoUs and agreements across sectors are envisaged to be signed with the Republic of Belarus during the visit.

In Minsk, Minister Herath will address a business and tourism roundtable, organised by the National Export Centre of Belarus. He is also scheduled to meet Sri Lankan students studying in Belarus.”

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