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ISBs amounting to USD 10,000 mn issued by Yahapalana govt. ruined economy, says Mahinda

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SLPP leader and former President Mahinda Rajapaksa, MP yesterday (20) alleged that USD 10,000 mn in new ISBs (International Sovereign Bonds) issued between 2015 and 2019 by the Yahapalana administration, comprising the UNP and the SLFP, had debilitated the economy.

Rajapaksa said that when he was voted out in January 2015, the outstanding ISB debt was only USD 5,000 mn. The Gotabaya Rajapaksa government ( 2020-2022) paid off USD 2,500 million in outstanding ISBs, which meant that only USD 2,500 million in ISBs now remained from his era.

The following is the text of the statement: Around 40 professional associations and trade unions representing vital sectors of the economy and the public services have been agitating for a reduction in income taxes for many months. In the meantime, the high tax burden has precipitated an exodus of educated and highly trained professionals from the country giving rise to a new crisis. Following increases in the VAT through the Budget for 2024, tax policy is set to become a major political issue in 2024.

The call to reduce taxes is based on solid economic principles. When taxes are low, both individuals and corporations have more money to spend and invest and this acts as a driver of the economy. Low taxes was a cornerstone of my government’s policy and it made a major contribution to the unbroken nine-year economic boom that this country experienced between 2006 and 2014. So as not to burden the people with taxes, my government of 2006-2014 restricted the overall year-on-year increase in government tax revenue to around Rs. 100 billion a year. Through careful economic management, my government reduced the debt to GDP ratio from 90% at the end of 2005 to 69% at the end of 2014 thus ensuring the feasibility of the low tax regime.

However, over the past several years there have been well-funded propaganda campaigns promoting a headlong and mindless opposition to everything, even remotely associated with the name ‘Rajapaksa,’ including the low tax policy. In order to blacken the very concept of low taxes, some even claimed that the Rajapaksa-led governments reduced taxes to help cronies. That is an outright lie. Tax exemptions can be granted only under laws like the Board of Investment Act and the Strategic Development Projects Act in order to attract investors for specified projects.

After 2015, the low tax regime was rejected in favour of a high tax regime. Unsurprisingly, Sri Lanka’s growth rate declined precipitously after 2015 ending up at 0.2 below zero by 2019. Due to bad economic management, the period from 2015 to 2019 saw an increase in taxes while at the same time experiencing a precipitous increase in foreign debt. When I was voted out in January 2015, the outstanding International Sovereign Bond debt was only USD 5,000 million. The Gotabaya Rajapaksa government of 2020-2022 paid off USD 2,500 in outstanding ISBs which means that only USD 2,500 million in ISBs now remains from my era.

Over USD 10,000 million in new International Sovereign Bonds were taken between 2015 and 2019. Hence we still have an outstanding ISB stock of USD 12,500 million. It was this USD 10,000 million in new ISBs taken between 2015 and 2019 that broke the back of our economy. When the Covid-19 pandemic struck Sri Lanka a few months after I became Prime Minister at the end of 2019, we wrote to the IMF in March 2020 asking for emergency assistance. The IMF wrote back saying that our debt levels disqualifies us from their emergency relief package.

They then proposed a raft of conditions that would qualify us for IMF assistance but those conditions would have made it impossible for us to face the Covid-19 threat in the manner that we did in 2020 and 2021. The present government is now implementing stringent conditions as part of an IMF programme. Thus one thing led to another, finally resulting in a situation where we now see top professionals holding multiple university degrees and professional qualifications agitating on the streets, demanding a reduction in taxes.

The SLPP which I lead is a part of the government. However the present Head of the Government and Head of State is the leader of a different political party with different policies. In a situation where this country was faced with complete anarchy, Parliament elected a President to serve the remainder of former President Gotabaya Rajapaksa’s term. The new President successfully restored law and order to the country. He is now directing government policy as the Executive President. At this moment, the primary duty of the SLPP is to ensure a stable government until the next national elections.

In the future, every member of the public should pay special attention to the tax policy and the past economic practices of the political party they vote for. As elections draw closer, once again we see attempts to hustle people blindly and unthinkingly in various directions through ramped up propaganda and social media hysteria. Whatever decision the people make at the next elections should be based on rational thinking, proper facts and correct data. We are still living through the consequences of January 2015 and this country cannot afford another mistake like that again.”



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“We welcome investors and tourists visiting Sri Lanka who contribute to strengthening economic and cultural ties”– PM

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Prime Minister Dr. Harini Amarasuriya stated that as Sri Lanka moves towards sustainable growth, the country welcomes investors and tourists who contribute to strengthening economic and cultural ties.

She made these remarks while addressing a special celebration and dinner reception organized by the Sri Lanka India Society to commemorate the 77th Republic Day of India and the 78th Independence Day of Sri Lanka, held on Thursday [February 26] at the Taj Samudra Hotel in Colombo.

During the event, the official magazine of the Sri Lanka India Society was launched, and the book “Port of Call” was presented to the Prime Minister and the Indian High Commissioner.

Addressing the gathering, Prime Minister Dr. Harini Amarasuriya noted that the Sri Lanka India Society since its establishment in 1949 has contributed to strengthening relations between the two nations,  through cultural engagement, dialogue, and sustained interaction. The Society has supported ties not only between the two governments but also between the peoples of both countries.

She further stated,

“Over the past year, the strength of India–Sri Lanka bilateral relations has been evident. I express gratitude for the support extended by the Indian government in facilitating the exposition of the sacred Devnimori relics in Sri Lanka.

When Cyclone Dithva affected Sri Lanka, India responded promptly through “Operation Sagar Bandhu,” providing assistance in the rescue and relief efforts.

I appreciated the announcement of a long-term relief package amounting to USD 454 million in support of Sri Lanka’s recovery efforts. India continues to work closely with Sri Lanka in its journey towards sustainable development.

The Sri Lanka–India partnership spans multiple sectors, including economic development, energy, connectivity, trade and investment, digital transformation, health, education, maritime security, and people-to-people ties.

As Sri Lanka progresses towards sustainable growth, we welcome increased investments from Indian businesses and greater tourist arrivals from India, while further strengthening our economic and cultural ties”.

She reaffirmed that India is Sri Lanka’s closest neighbour and an important partner,  Sri Lanka is committed to advancing cooperation for the benefit of the people of both countries and the wider region.

Speaking at the event, Indian High Commissioner Santosh Jha stated that the relationship between the two countries goes beyond formal diplomacy and is a strong and special partnership. He noted that the introduction of the first international degree offered outside India in Sri Lanka marked a new chapter in educational cooperation. He also highlighted the continued expansion of collaboration in connectivity and people-to-people relations, adding that India–Sri Lanka relations are experiencing significant growth in the current period.

The event was attended by ambassadors, diplomats, officials of the Indian High Commission, and government representatives.

[Prime Minister’s Media Division]

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Chief Sanghanayaka of Sabaragamuwa Province felicitated

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The “Gauravabhinandana” ceremonial felicitation was held in honour of the Chief Sanghanayake of the Sabaragamuwa Province of the Malwathu Maha Vihara Chapter of the Maha Vihara tradition of the Siyamopali Maha Nikaya; former Pirivena Examiner; Rajakiya Pandith; holder of Master; Scholar of classical texts; recipient of the Kala Bhushana title; Vinaya Keerthi Sri Dhammdinna Saranapala; the Most Venerable Kaeligama Vijithananda Nayaka Thero on Wednesday [25th of February] at the auditorium of the Rathnapura District Secretariat

The event was organized under the patronage of the Anunayake of the Malwathu Chapter of the Siyamopali Maha Nikaya, Most Venerable Acharya Agga Maha Panditha Niyangoda Dharmakeerthi Sri Sangharakkhitha Vijithasiri Abhidhana Anunayake Thero.

The presentation of the symbolic casket to the Most Venerable Kaeligama Vijithananda Nayaka Thero took place with the participation of Prime Minister Dr. Harini Amarasuriya and the Governor of Sabaragamuwa Province, Ms. Champa Janaki Rajaratne.

Addressing the gathering, the Prime Minister stated:

“It is a privilege for me to participate in this felicitation ceremony held in appreciation of the religious and social service rendered by the Chief Sanghanayaka of the Sabaragamuwa Province, Most Venerable Kaeligama Vijithananda Nayaka Thera.

When we reflect on his life journey, it serves as a profound inspiration to us all. Having entered monastic life as a disciple of the Sabaragamuwa prelate, the late Most Venerable Kelle Sri Saranananda Thero, the Nayaka Thera has now rendered over five decades of distinguished service following higher ordination.

After obtaining a Bachelor of Arts degree from the Vidyodaya University, he devoted several decades as a Pirivena teacher and examiner, enlightening thousands of students. He has also authored numerous scholarly works. His classical literary contributions, especially for students of Pirivena education, are of exceptional value”.

The Prime Minister further recalled with gratitude the commitment shown by the Nayaka Thera, centred around the Ratnapura Mahawala Sri Dharmayathana, to uplift the spiritual and social well-being of the local community, and extended her wishes for good health and long life for the continuation of his invaluable service to the Buddha Sasana.

The occasion was also graced by the presence of Most Venerable Karagoda Uyangoda Maithreemurthi Thera, Supreme Mahanayaka of the Sri Lanka Amarapura Maha Sangha Sabha; the Anunayaka of the Sri Lanka Ramanna Maha Nikaya, Waleboda Gnanissara Thera; Lecturer of the University of Peradeniya and Deputy Registrar of the Malwathu Chapter, Panditha Mahawela Dhammakkhanda Rathanapala Thera; the Chief Sanghanayaka of Ratnapura and Uva Wellassa and former Vice-Chancellor of Uva Wellassa University, Bethgamuwa Dhammadinna Thera; along with members of the Maha Sangha. The occasion was also attended by the Minister of Buddhasasana, Religious and Cultural Affairs Sunil Senavi, Governor of Sabaragamuwa Province, Ms. Champa Janaki Rajaratne, Member of Parliament Shantha Padmakumara, former Members of Parliament A. A. Wijethunga and Janaka Wakkumbura, Ratnapura District Secretary Chinthana Udaya Nanayakkara, Basnayake Nilame of the Maha Saman Devalaya Ishan Sanka Mapitigama, Mayor of Ratnapura Indrajith Katugampala, and many other distinguished invitees.

[Prime Minister’s Media Division]

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Sajith raises fresh concerns over toxic pollutants emanating from burning of substandard coal

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Sajith

 Opposition and SJB Leader Sajith Premadasa yesterday raised serious concerns over the Government’s importation of substandard coal, warning that its use has resulted in inefficient electricity generation, increased equipment damage and significant financial losses to the State and consumers.

In a video statement, the Opposition Leader said the SJB had exposed details regarding the importation of inferior-quality coal, prompting what he described as an admission by Government representatives that the coal in question was of poor standard.

Premadasa charged that the continued use of such coal has reduced generation efficiency at the Norochcholai Power Station, while increasing the likelihood of damage to critical equipment.

He further claimed that ash content had risen sharply, from the accepted 11–15 percent range, to over 21 percent, doubling the volume of toxic pollutants generated. The disposal of the excess ash, he said, poses additional environmental risks.

The Opposition Leader also noted that a further 15 to 16 coal shipments are expected to arrive within the next two to three months. However, he alleged that the failure to procure high-quality coal has reduced megawatt output, necessitating greater reliance on fuel-powered plants to bridge the shortfall.

“This results in financial losses to the country, the Government, and, ultimately, to electricity consumers,” he said.

Premadasa cited Section 30 of the Electricity Act of 2009, maintaining that consumer tariffs can only be imposed, based on efficient electricity generation. He urged the Public Utilities Commission of Sri Lanka to safeguard the rights of the country’s 7.5 million electricity consumers, insisting that losses stemming from inefficient generation cannot lawfully be passed on to the public.

He further alleged that the Government’s promised “system change” had, instead, resulted in questionable coal procurement deals. The financial losses incurred through, what he termed, corrupt transactions, he argued, could have been channelled into essential public services, such as education, healthcare, poverty relief and support for entrepreneurs.

Premadasa called not for the appointment of a committee of experts, but for a full forensic audit into the transactions surrounding the coal imports.

He stressed that the SJB would continue to stand in defence of electricity consumers and asserted that the President and Cabinet must accept responsibility for the damage allegedly caused to the Norochcholai power plant, which, he described, as a national asset.

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