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Budget lacks creative solutions and exacerbates existing crisis – Dr. Godahewa 

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Nalaka Godahewa

Budget 2024 is like a fairy tale rather than a pragmatic solution to pressing economic issues, SLPP MP Dr. Nalaka Godahewa has said.

Taking part in the current budget debate, former State Minister said: “Two paramount challenges loom large—the persistent economic contraction and the escalating national debt. A practical budget should provide answers to these challenges, addressing how the government plans to revitalize the economy and escape the debt trap. Unfortunately, the 2024 Budget falls short, lacking creative solutions and potentially exacerbating existing conditions.

The government, once again, presents optimistic revenue targets, reminiscent of the previous year. A notable income shortfall in 2023 raises concerns about the feasibility of the projected 45% increase in revenue for 2024, especially given the ongoing economic contraction. The Budget seems to harbor unrealistic expectations, and if history is any guide, the actual revenue may fall short, as evidenced by the 17% income deficit in 2023.

The Budget’s approach to expenditure compounds the issue. Despite potential revenue shortfalls, government expenditure for 2024 is estimated at 6978 billion rupees, reflecting a substantial 34% increase from the latest estimates of 2023. To meet revenue targets, the government resorts to tax hikes, exemplified by the recent VAT increase from 15% to 18%, affecting essential goods like fuel, electricity, and telephone charges.

This tax-heavy approach, a commonly accepted economic principle, can discourage entrepreneurs, decrease investments, and lead to tax evasion. Such consequences contribute to the 17% income deficit in 2023 and may persist in the coming year, rendering the 45% revenue increase target for 2024 unrealistic.

The Budget gap, arising when government revenue falls short of expenditure, is projected to be Rs 2851 billion in 2024. Bridging this gap through further borrowings or printing money is not a sustainable solution, particularly if the borrowed funds are directed toward consumption rather than income-generating development activities.

The breakdown of government expenditure for 2024 reveals a disproportionate focus on recurrent expenditure (Rs 5345 billion) compared to capital expenditure (Rs 1209 billion). This reflects an 11% increase in recurrent expenditure and a 1% decrease in capital expenditure for 2024. Despite promises to prioritize education and human capital development, the budgeted expenditure on education remains stagnant, and expenditure on women and social empowerment is halved.

The looming tax interest of Rs 2,634 billion, almost half of total recurring expenses, underscores the severity of the situation. Excessive borrowings have led the country into this crisis, and the trend continues, with the 2024 Budget proposing to borrow nearly Rs 3 trillion, exacerbating the existing debt burden.

The President’s grand ideas, articulated in the three main pillars of economic recovery—export-oriented competitive economy, environmentally friendly green and blue economy, and a digital economy—have not seen substantial progress after a year. The lack of consistency, evident in the shift towards a gig economy in the latest Budget, is a persistent issue.

Public trust in the government’s economic management and budgetary proposals has eroded. Citizens’ immediate concerns revolve around basic needs, rising utility bills, and the disparity between lofty economic goals and daily struggles. The prevailing crisis demands a unified and committed leadership capable of delivering tangible results.

The lack of coordination between ministries further compounds the challenges. Conflicting government actions, such as advocating for investment while raising production costs, or acknowledging the importance of the small and medium sector while undermining local producers through imports, highlight the need for cohesive decision-making.

To navigate the crisis successfully, the country requires a clear agenda, a consensus-driven roadmap led by competent leaders for effective implementation. Setting clear priorities with measurable targets in crucial areas like tax collection, tourism, export development, renewable energy, and foreign direct investment is imperative.

The proposed Budget for 2024, if implemented, not only fails to address critical issues but may exacerbate economic challenges. The country urgently needs a comprehensive economic development plan with clear goals, timelines, and accountability measures. The government must redirect its focus toward reactivating the economy, strengthening the export sector, fostering tourism, supporting small and medium businesses, attracting new investments, and addressing the root causes of the economic downturn.

In conclusion, at this darkest hour, a collective and committed leadership is essential to guide the nation out of the crisis. The time for experiments and ad hoc solutions has passed. It’s time for an integrated economic development plan to rebuild the country.”



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Govt. confident of 2/3 majority despite NPP split speculation

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Anura / Harini

By Shamindra Ferdinando

The ruling NPP yesterday (21) dismissed claims of a widening rift, within the government, over the proposed 22nd Amendment. Asked whether the NPP was concerned over a section of the Opposition alleging Prime Minister Dr. Harini Amarasuriya and two dozen MPs taking a view contrary to that of the party in this regard, authoritative party sources said some persons were propagating speculation for their own interest.

Declaring that there was absolutely no issue regarding the controversial Amendment, sources emphasised once it was tabled in Parliament, it would be passed with 2/3 majority.

Sources dismissed claims that out of its 159-member parliamentary group a section of NPPers was opposed to the government move. According to an influential Opposition activist, there are 57 JVPers and 66 NPPers in the government group and the rest contested the last parliamentary polls, having aligned with the JVP.

Ministerial sources told The Island that the government was confident of going ahead with the 22nd Amendment and Judicature (Amendment) Bills. Sources said that the NPP was not bothered about the Opposition protests in and outside Parliament.

Speaker Dr. Jagath Wickremaratne is expected to disclose the confidential ruling that he received from the Supreme Court in respect of more than 65 petitions for and against the 22nd Amendment and Judicial Amendment Bills. The enactment of the 22nd Amendment would pave the way for extending the retirement age of Supreme Court judges, from 65 to 67 years, and Court of Appeal judges, from 63 to 65 years.

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Justice Corea appointed Acting President of the Court of Appeal

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Court of Appeal Judge M. Sri Mevan Anthony Edirimannasuriya Corea receives his letter of appointment

President Anura Kumara Dissanayake has appointed Court of Appeal Judge Mayadunna Sri Mevan Anthony Edirimannasuriya Corea as the Acting President of the Court of Appeal.

The appointment has been made as President’s Counsel Nalin Rohantha Abeysuriya, who currently serves as President of the Court of Appeal, will be overseas until the 24th.

Accordingly Justice Mayadunna Corea was sworn in as Acting President of the Court of Appeal before President Anura Kumara Dissanayake at the Presidential secretariat last morning (21).

Secretary to the President Dr Nandika Sanath Kumanayake was also present at the occasion.

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Protest against setting up of cement factory in highly populated area near BIA

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The cement factory premises located in close proximity to a school and the lagoon

… school alleges deception

What began quietly as a single-storey tourist hotel, on the edge of Katunayake-Seeduwa has, five years later, morphed into a looming five-storey cement factory and with it, a storm of fear, anger and unanswered questions.

At a media briefing held on 19 September at St. Thomas International School, Seeduwa, the community finally found its voice. The gathering included priests, school principals, environmental defenders, and parents whose children study within a few hundred metres of the site.

The briefing was led by Rev. Fr. Jude Chrishantha Fernando, Director of National and Archdiocesan Catholic Social Communications, Rev. Fr. Nilantha Heshan, Director of the Archdiocesan Sethsarana Institute, Dinusha Nanayakkara, Convener of the Archdiocesan Committee for the Protection of Muthurajawela, and Attorney-at-Law Ms. Isuri Rodrigo.

Their message was clear: This is not a campaign against development.

“We Are Not Against Cement. We Are Against Deception.”

“Cement is an essential raw material for the country. We have no opposition to any such factory or production plant,” they told the media. “But what we cannot agree to is a project of this magnitude, in this location, without any proper environmental assessment.”

The speakers alleged a textbook case of deception, obtaining approvals for a low-impact tourist hotel, in one of the most densely populated educational zones in the Katunayake-Seeduwa Municipal Council area, and then transforming it into a heavy industrial plant.

“In an area where thousands of schoolchildren study, to show one thing on paper and build another is a highly fraudulent procedure. It is clear that the real environmental damage and the truth have been hidden from the people,” they said.

With the sea and lagoon winds that sweep across Seeduwa, experts fear these fine particles will not stay confined to the factory walls. They will drift across classrooms, homes, and the Katunayake Free Trade Zone, where thousands of workers, representing all 25 districts of Sri Lanka, work every day.

“The risk is not local. It is national. We are talking about a future generation of children with respiratory illnesses, and workers developing chronic breathing disorders,” one speaker warned.

Rev. Fr. Jude Chrishantha Fernando, Director of National & Archdiocesan Catholic Social Communications, responding to journalists

Then there is the proximity that defies logic, just 500 metres from the Bandaranaike International Airport.

The panel presented a scientific concern that has aviation experts worried: a significant drop in air quality around the airport and its runway, and the severe risk to highly sensitive aircraft engines when they ingest air mixed with cement dust. What is at stake, they argued, is not just health but the economy itself.

“When you weigh it deeply, the economic contribution of an international airport is far higher than that of a cement factory. If international airlines start to avoid Katunayake due to safety and air quality concerns, it will be a fatal blow to our country’s economy,” they emphasised.

A few minutes away lies another victim the Negombo Lagoon and the Muthurajawela wetlands, Sri Lanka’s largest and most sensitive coastal ecosystem.

The panel warned that cement dust settling on the mangrove system could degrade water quality, disrupt the delicate salinity balance, and directly interfere with fish breeding grounds. For the fishing communities of Negombo, whose lives depend on the lagoon, this is an existential threat.

“The lagoon is a nursery. If its water quality drops, fish will not breed. If fish do not breed, an entire fishing community collapses,” they said.

The speakers alleged that while the developers claim to have approvals from various state institutions, many of the mandatory clearances, particularly comprehensive Environmental Impact Assessments and feasibility reports, have not been obtained.

They stressed they are not calling for an end to investment, but for it to be done right.

“We have no objection to this factory being started in another suitable location where it will not cause these environmental impacts, based on proper feasibility and assessment reports. Stop this construction here and move it,” was the unanimous demand.

The appeal has now been directed again to the President, the government, and all responsible state institutions and officials.

As the briefing ended, one image lingered — a school playground, a lagoon, and a towering cement structure rising between them. It is a scary picture for the people of Seeduwa; they asks a simple question: What price are we willing to pay for development that doesn’t breathe?

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