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IMF review must precede re-look at taxes: Shehan

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ECONOMYNEXT –Sri Lanka will have to wait till the International Monetary Fund (IMF) has completed its first review of the ongoing IMF programme for the government to review its own fiscal policy, an official said, noting however that it will not step out of the programme’s framework regardless.

State Minister of Finance Shehan Semasinghe told reporters on Sept. 14 that state revenue had not increased to desired levels. He was responding to questions about ongoing protests by university lecturers against an IMF-prescribed tax hike and whether professionals can expect some relief at the end of this quarter.

“Let’s wait and see until the review is over. State revenue is not where it was expected to be. There are several reasons for that. Until the end of the review, we cannot make a clear statement on how we can bring state revenue to adequate levels,” said Semasinghe.

The state minister said the IMF review, which began on September 14, will continue for two week.

“Let’s see what we’re told after that. Regardless, the government is not prepared to work outside the framework of the IMF programme,” he added.

Semasinghe said the government wants the IMF’s 2.9 billion dollar extended fund facility (EFF) to be the last such facility from the international lender.

“The government has already formulated a strong legal framework, instilled fiscal discipline and transparency and accountability that’s needed for that,” he said.

The state minister is also optimistic that there will be no trouble receiving the second tranche of the EFF saying Sri Lanka has fulfilled its obligations and there will be no problem on that score.

At talks on Friday morning, an IMF delegation currently in Sri Lanka have discussed with Finance Ministry and Central Bank officials the challenges ahead both domestically and externally with regard to macroeconomic policy, he said.

“We expect that after this review is over, we can get the second tranche. The second tranche will signal to the world that they can be confident about Sri Lanka’s reforms and reliability.”



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A mechanism that goes beyond the normal state apparatus is needed to restore public life – President

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President Anura Kumara Dissanayake emphasised that a unified operational mechanism, which goes beyond the normal state administration, is required to restore public life after a disaster.

The President stated this while participating in the Kandy District Coordinating Committee meeting held at the Kandy District Secretariat on Saturday  (06).morning

During the meeting, the President separately reviewed the progress of the programmes underway to restore essential infrastructure in the district, including the roadways, electricity, water and fuel supply, irrigation systems and communication facilities.

The President instructed officials to utilise the allocated provisions for the next 25 days to complete road clearing activities swiftly, until the permanent reconstruction of roads is completed.

The President also instructed that water supply in the district be fully restored within three days. Until then, the water requirements of the public should be met through bowsers and such activities must be carried out as an emergency measure beyond the usual procedure, with technical support from the Tri-Forces.

Further, he instructed that the cleaning of household wells be carried out under the coordination of Divisional Secretariats and that electricity supply in the district be restored by 31 December through temporary repairs, while major reconstruction work will be carried into the second phase.

The President pointed out the need to identify arable lands and give priority to cultivation. He instructed that cultivable paddy fields be identified urgently and supplied with the required irrigation water and highlighted the importance of coordinated action by the Department of Irrigation, Provincial Irrigation Department and the Department of Agrarian Development.

He also instructed officials to expedite the payment of the Rs. 200,000 compensation allocated to identified farmers and fields and to submit a report on the extent of vegetable cultivation affected in the district within two weeks. Accordingly, Rs. 150,000 per hectare will be paid as compensation to the affected vegetable farmers and necessary amendments will be made to provide the same compensation for losses incurred in banana cultivation.

The impact on the livestock sector due to the disaster was also broadly discussed. The President highlighted the need to maintain updated data regarding the number of farms and livestock.

He explained the need to restart damaged livestock farms swiftly, to restore income sources for the farmers and to meet the country’s food needs, including milk, poultry and eggs.

Discussions were also held regarding restoring fuel supply in the district. Due to road blockage, fuel supply has been disrupted in Pussellawa and Meetalawa. The President instructed that, through coordination between the Road Development Authority, the Tri-Forces and the Police, fuel be supplied to these areas by Saturday [06] evening.

The resumption of schools in the Kandy District was also discussed. The President instructed officials to minimise delays in reopening schools to ensure that examinations are held as scheduled.

The President also examined in detail the steps taken to restore the district’s health services, railways and communication facilities.

Discussions were held regarding housing damage and the resettlement of affected people. The roles of the Geological Survey and Mines Bureau and the required staffing needs were considered.

The President stated that state-owned lands in adjacent areas will be identified and presented for resettlement activities and necessary interventions will be made to release such lands through discussions with relevant institutions.  He emphasised that the government’s objective is to resettle people safely and continuous assessment must be carried out to ensure that compensation provided for destroyed and partly damaged houses is used properly for reconstruction.

As all compensation payments will be made under the 2025 Budget, the President stressed the need to complete all payments before 31 December, to avoid a burden on the 2026 Budget. He said the dedication of all state officials is essential to successfully implement the programmes initiated to restore public life.

Attention was drawn to the garbage disposal problem in Gampola. As a long-term solution, the President instructed that, until the relevant Mahaweli land is released, land belonging to the Ceylon Electricity Board be temporarily allocated for the purpose.

Attention was also paid to the damage caused to state institutions due to the disaster situation.

While noting that natural disasters such as floods, storms and landslides cannot be prevented, the President emphasised that the loss of lives and property can be minimised. He stated that a proper study of the Central Highlands is needed and a long-term plan must be prepared to restore the eroding ecological system.

He further highlighted the need to enforce the powers of local authorities to prevent similar disasters in the future, stating that no room should be given for illegal constructions hereafter. He also noted that Ceylon Electricity Board should not provide electricity to such unauthorised locations.

The President stated that although some expected it would take a long time for the country to recover after the disaster, the government has already been able to restore public life to normalcy within a very short period. He added that by working together for a little longer, the desired goals can be achieved.

The President expressed special appreciation for the dedication shown by state officials and the Tri-Forces in carrying out these tasks.

Minister of Agriculture, Livestock, Land and Irrigation K.D. Lal Kantha, Deputy Minister of Transport and Highways Prasanna Gunasena, Deputy Minister of Health Hansaka Wijemuni, Members of Parliament Jagath Manuwarana and Thanura Dissanayake, as well as Central Province Governor Professor Sarath Abeykoon, Chief Secretary G.H.M.A. Premasinha, Kandy District Secretary Indika Udawatta and officials representing all line agencies including the Road Development Authority, Ceylon Electricity Board and the Irrigation Department attended the occasion.

 

 

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President calls on the Mahanayake Thera of the Asgiri chapter

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President Anura Kumara Dissanayake on Saturday (06) morning  visited the Asgiri Maha Viharaya and paid respects to the Mahanayake Thera of the Asgiri Chapter, Most Venerable Warakagoda Sri Gnanarathana Thera, from whom he received blessings.

The President briefed the Mahanayake Thera on the government’s programmes to provide relief to the people affected by the prevailing disaster situation and engaged in a brief discussion with him.

Thereafter, the President called on the Anunayake Thera of the Asgiri Chapter, Most Venerable Narampanawae Ananda Anunayake Thera and also held a brief discussion with him.

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President calls on the Mahanayake Thera of the Malwathu chapter

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President Anura Kumara Dissanayake on Saturday (06)  morning  visited the Malwathu Maha Viharaya and paid respects to the Mahanayake Thera of the Malwathu Chapter, Most Venerable Thibbatuwawe Sri Sumangala Thera.

The President briefed the Mahanayake Thera on the government’s programmes to provide relief to the people affected by the prevailing disaster situation and engaged in a brief discussion.

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