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IMF review must precede re-look at taxes: Shehan

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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Law will be enforced against all those who acquire assets illegally- State Minister Chathuranga Abeysinghe

State Minister of Industries and Entrepreneurship, Chathuranga Abeysinghe, while addressing a public gathering held at the Raffles Hotel in Kotte on Tuesday [April 22] said that the law will be enforced against all those who acquire assets illegally.
He said that , if someone joins a municipal council receiving a modest salary and, within two to three years, builds a luxury house and acquires a vehicle, we will question how such wealth was amassed. If a satisfactory explanation cannot be provided, the law will be enforced and the measures will be taken to confiscate any illegally acquired assets.
The opposition frequently levels accusations against us, but we have not engaged in any wrongdoing. We have not misappropriated public funds, used undue influence to secure school admissions for our children, or interfered with law enforcement. We are dedicated to serving the people by upholding an ethical and responsible political culture.
If you wish to develop your community, I respectfully urge you to elect individuals of integrity who will not misuse public funds.
[Prime Minister’s Media Division]
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Unrest at Matara prison brought under control

It has been reported that prison officials and the police have brought the unrest among the 500 plus inmates of the Matara prison which commenced on Tuesday [22] under control by this morning (23)
It has been reported that the inmates had broken out of their wards after which the officials were compelled to fire in the air and use tear gas to bring the situation under control.
The inmates are being temporarily transferred to the Angunkolapelessa prison in groups to enable authorities to repair the the damage caused to the wards and cells within the premises.
The prison officials who were injured during the conflict are receiving treatment at the Matara hospital.
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Local government authorities and Municipal Councils are the nursery of corrupt politics. – Prime Minister

The Prime Minister stated that the President has challenged all ministers to transparently and efficiently spend the funds allocated to each ministry through the national budget for the benefit of the people, and that the local governments and municipal councils have historically been the nursery grounds of corrupt politics.
The Prime Minister made these remarks while addressing a public gathering held at the Raffles Hotel in Kotte on Tuesday [April 22].
The Prime Minister further stated:
“All 159 of us in Parliament today did not enter through family or financial influence. We are ordinary citizens just like you and individuals who stand among you. Unlike in the past, our members do not behave disruptively in Parliament. When school children visit, there is no need for the Speaker to request their removal that our parliamentary members conduct themselves with dignity, adherence to the law, and political maturity.
This is the kind of Parliament we have always aspired to have. Today, it is you who has made this transformation possible. For a long time, we have not experienced the advantages of an efficient and properly functioning local government. You now have the opportunity to elect representatives who are truly committed to serving you and improving your local institutions.
The event was attended by Arosh Athapaththu, Sri Jayawardenapura Kotte Municipal Council candidate representing the National People’s Power, along with several other candidates and a large number of local residents.
[Prime Minister’s Media Division]
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