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Harsha asks govt. not to impose steep tax on professional incomes lest it should worsen brain drain

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Harsha De Silva

MP Dr. Harsha de Silva, the top honcho in the Samagi Jana Balavegaya on matters concerning finances, yesterday told The Island that many professionals from various fields, from the health sector to IT, had written to them seeking their intervention to halt the proposed draconian tax burden on them, especially during these economic hard times. Higher taxes, as much as 36%, is actually contributing to the brain drain of this country, Dr. de Silva said.

As part of the Committee on Public Finance (COPF), Dr. De Silva said they had refused to approve the proposed personal income tax amendment until the Ministry of Finance (MoF) came out with a better alternative/comparative tax scheme.

“When we analyse data given by the MoF, and looking at the Indian tax model, it becomes clear that we can emulate the Indian tax schemes of 5%, 20% and 30% slabs and still generate Rs 62 billion (which is just Rs 6 billion short of what the government expect to raise from the taxes amounting to 6%, 12%, 18%, 24%, 30% and 36%).

“This will certainly give the middle class some breathing space. Moreover, there are numerous ways of meeting the shortfall of Rs. 6 billion. For example, recent data on revenue points out that the Department of Inland Revenue has to collect a massive sum from Casinos that have evaded taxes. Reducing government expenditure in certain non-essential sectors could be another way.

There are alternative ways to gain the expected revenue, while protecting the hard-hit middle class professionals of this country. I urge the government to look at the alternative method proposed by the technical team of the COPF.



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Former first lady Shiranthi Rajapaksa arrested by CIABOC

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Former first lady Shiranthi Rajapaksa, wife of former President Mahinda Rajapaksa was  produced before the Hulftsdorp court, after  being  arrested by officers of the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) and produce

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U.S. Navy ship USS Tulsa arrives in Colombo for replenishment visit

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The U.S. Navy ship USS Tulsa (LCS 16) arrived at the Port of Colombo this morning, 7 October 2026 for replenishment purposes.

The visiting ship was welcomed by the Sri Lanka Navy in accordance with naval traditions.

The 127.7-metre-long platform is a Littoral Combat Ship commanded by Commander BM Wanier. Commissioned on 16 February 2019, USS Tulsa has since been in service with the US Navy.

The ship previously made a port call in Sri Lanka on 27 August 2025.

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Fuel crunch looms

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Govt. tells fuel distributors to maintain stocks to ensure uninterrupted supplies

by Saman Indrajith and Norman Palihawadane

The government had instructed private fuel distributors to maintain minimum stocks and ensure uninterrupted supplies to the market, Energy Minister Anura Karunathilaka told Parliament yesterday (06).

Karunathilaka said the Ministry of Energy Secretary had notified the relevant companies of the requirement, following a reduction in supplies by some private distributors, amid higher international fuel prices.

The Minister said private companies had informed the government that they were facing losses because international prices had risen while fuel was being sold, locally, at prevailing prices. As a result, some companies had reduced the volumes released to the market.

The reduced supplies had increased the burden on the Ceylon Petroleum Corporation (CPC), whose share of the diesel market had risen from about 54% to 82%, the Minister said.

“The CPC currently holds an 82% share of the market,” he said, adding that it had increased its supplies, compared with February, to compensate for the reduction by private distributors.

Karunathilaka said the government could not, under the existing agreements with private companies, specify the quantities they should supply to individual filling stations. However, it could require them to maintain minimum stocks in the country.

The Minister said the Energy Ministry had already instructed companies that had failed to maintain the required stocks to take steps to prevent supply disruptions.

The Minister attributed the queues reported at some filling stations to reduced supplies from private distributors, as well as normal variations in fuel distribution. He also said demand for CPC fuel had increased because private companies generally did not provide fuel to dealers on credit, while the CPC offered a three-day credit facility.

“We expect that, as the Ceylon Petroleum Corporation takes on this additional burden, the problem will ease to some extent by Wednesday or Thursday,” Karunathilaka said.

He said instructions had also been issued to increase supplies to CPC filling stations. A special discussion on the issue is scheduled for today (07), with officials of the Energy Ministry and CPC expected to participate,

along with President Anura Kumara Dissanayake.

Meanwhile, Petroleum Dealers’ Association officials have called for an early solution to the supply issue. Association Chairman D.V. Shantha Silva said queues had been reported at many filling stations, mainly those operated by private distributors.

He said the situation was not due to an overall shortage of fuel, but was linked to reduced orders by Lanka IOC, Sinopec and R.M. Parks amid concerns over losses incurred on fuel sales.

The Ceylon Petroleum Private Tanker Owners Association has urged motorists to refrain from panic buying, saying there was no nationwide disruption to fuel supplies.

The government earlier increased fuel prices and introduced a per-litre diesel subsidy following concerns raised by distributors over rising international prices.

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