News
Labour Minister opposes govt. move to tax EPF, ETF
By Saman Indrajith
Minister of Labour Nimal Siripala de Silva told Parliament yesterday that the Ministry of Labour was opposed to taxing the Employees’ Provident Fund.
Responding to a question raised by Opposition Leader Sajith Premadasa on the proposed surcharge on superannuation funds, demanding that a gazette, announcing the Surcharge Tax Bill be withdrawn, Minister de Silva said: “My stance on this matter is clear and it has already been announced. The origin of this issue is not the gazette. The Inland Revenue Department has said the income earned by investing EPF and ETF money should be taxed. Yet, our ministry’s position is clear: the EPF and ETF should not be taxed and the position of the Inland Revenue Department is wrong. We have informed the Treasury that this definition should be amended. We have also informed the Commissioner of the Department of Inland Revenue. We informed them of our position months ago,” the minister said.
Opposition Leader Premadasa: I am thankful to the minister for his honesty. The minister has told this House that his ministry is opposed to this. Then, how could the Finance Ministry issue a gazette of this nature?
UNP Leader Ranil Wickremesinghe: We must discuss this matter in the party leaders’ meeting and thereafter we can debate it here to prepare a draft to submit for the approval of Parliament to ensure that both EPF and ETF are exempted from the taxes.
Chief Opposition Whip Kandy District MP Lakshman Kiriella: We demand a debate on this matter. This is fundamentally wrong because this leads to double taxation. An EPF beneficiary would be taxed for the amount of his money. Those receiving EPF face double taxation as a tax is imposed when withdrawing the funds and the Fund will be taxed again on investments. Double taxation is against the law. Therefore, we demand a debate on this matter.
Trade Minister Bandula Gunawardena: It is during the Yahapalana time this new income tax law was passed. It is according to that law these regulations are introduced. You passed the wrong law removing the tax exemptions given to these funds.
Sports Minister Namal Rajapaksa: The new circular in question was issued as per the provisions of the Inland Revenue Act No 24 of 2017. It was your government that brought this Act. It is wrong for you to speak as if you do not know the matter. MP Kiriella demands a debate on the economy stating that he does not know of the prevailing economic situation. In the meantime, he tells in the meetings outside parliament that the economy is collapsing.
Chief Opposition Whip Kandy District MP Lakshman Kiriella: Minister Namal Rajapaksa said that it was as per the provisions of an Act passed during our time that the taxation was introduced. I ask him to read to this House the particular section from that Act enabling taxation. I challenge him to show us such a section. Can you do that?
Minister Namal Rajapaksa: Minister Bandula Gunawardena will read out the particular section to this House tomorrow.
The Chief Opposition Whip: He spoke of a section, but he does not know where it is. He does not know what he spoke of.
Earlier in the day, leader of the opposition Premadasa said the country’s current foreign reserves available for importing goods were only sufficient for three weeks. The government had failed to address the matter in the House. The government had imposed a 25 percent tax on Sri Lanka’s largest fund, the Employees’ Provident Fund, which is worth Rs.3 trillion, which generated a profit of around Rs. 250 billion. The Minister of Finance is attempting to misappropriate funds belonging to the public for implementing the ‘100,000 Projects’ through the Budget’s rural development programme.
He demanded to know whether the government was attempting to misappropriate funds amounting to Rs.65 billion from the EPF.
Latest News
Level III landslide early warnings issued to the Districts of Kandy, Kegalle, Kurunegala and Matale extended
The landslide early warning center of the National Building Research Organisation [NBRO] has extended the Level III RED landslide early warnings issued to the Districts of Kandy, Kegalle, Kurunegala and Matale until 1600hrs on 11th December 2025.
Accordingly,
The LEVEL III RED landslide warnings issued to the the Divisional Secretaries Divisions and surrounding areas of Kundasale, Pasbage Korale, Medadumbara, Ganga Ihala Korale, Hatharaliyadda, Pathadumbara, Doluwa, Panvila, Gangawata Korale, Ududumbara, Akurana, Yatinuwara, Harispattuwa, Deltota, Thumpane, Poojapitiya, Udapalatha, Udunuwara, Minipe and Pathahewaheta in the Kandy district, Aranayaka, Yatiyanthota, Rambukkana, Bulathkohupitiya and Mawanella in the Kegalle district, Mallawapitiya, Mawathagama and Rideegama in the Kurunegala district, and Rattota, Laggala Pallegama, Ukuwela, Matale, Wilgamuwa, Pallepola, Naula, Yatawatta and Ambanganga Korale in the Matale district have been extended.
LEVEL II AMBER landslide early warnings have been issued to the Divisional Secretaries Divisions and surrounding areas of Uva Paranagama, Hali_Ela, Meegahakivula, Badulla, Kandeketiya, Bandarawela, Soranathota, Ella, Haputhale, Lunugala, Welimada, Haldummulla and Passara in the Badulla district, Warakapola, Galigamuwa, Kegalle, Dehiowita, Ruwanwella and Deraniyagala in the Kegalle district, Polgahawela and Alawwa in the Kurunegala district, Kothmale East, Walapane, Thalawakele, Nuwara Eliya, Kothmale West, Nildandahinna, Mathurata, Ambagamuwa Korale, Hanguranketha and Norwood in the Nuwara Eliya district. and Kolonna, Godakawela and Kahawaththa in the Ratnapura district.
LEVEL I YELLOW landslide early warnings have been issued to the Divisional Secretaries Divisions and surrounding areas of Divulapitiya, Attanagalla and Mirigama in the Gampaha district, Narammala in the Kurunegala district, and Kiriella, Eheliyagoda, Balangoda, Kaltota, Openayake, Nivithigala, Imbulpe, Ayagama, Kuruwita, Kalawana, Elapatha, Pelmadulla and Ratnapura in the Ratnapura district.
News
“We cannot allow flooding to become a part of the daily lives of the people in the Colombo District” – PM
Prime Minister Dr. Harini Amarasuriya stated that unauthorized constructions within the Colombo District, nor any form of residential developments that endanger the public carried out under the guise of development agenda will not be allowed.
The Prime Minister made these remarks while addressing the media at the conclusion of the Colombo District Disaster Management Committee meeting held on Tuesday [December 09] at the Colombo District Secretariat.
Addressing further, the Prime Minister stated:
“The Colombo District has become vulnerable to this extent due to the constructions carried out without any proper planning or understanding of regulations, along with personal and politically motivated decisions that have placed both the district and its people at risk.
Compared to the districts that suffered severe loss of life and property due to the recent cyclone, the damage to the Colombo District has been relatively lower. However, special intervention is being carried out together with the relevant institutions to manage the potential future flood risks in the district.
This matter was also given special attention during today’s District Disaster Management Committee meeting. We cannot allow the flooding to become a regular part of the lives of the people in Colombo. All relevant institutions will come together to put forward a common plan for flood control in the district.”
The Prime Minister further stated that discussions are already underway to provide sustainable solutions for the people living in high-risk areas within the Colombo District.
The discussion was attended by the Deputy Minister of Urban Development Eranga Gunasekara, Deputy Minister of Mass Media Kaushalya Ariyaratne, and Colombo District Members of Parliament Aruna Panagoda and Chandana Suriyarachchi.
[Prime Minister’s Media Division]
The handover of 35 tonnes of Russian Humanitarian Aid to Sri Lanka, recently affected by the cyclone «Ditwah», took place at Katunayake today (10th December)
The shipment was welcomed at the Katunayake airport by Ambassador of Russia Levan Dzhagaryan, Minister of Ports and Civil Aviation Anura Karunathilaka and Deputy Minister of Defence, Major General Aruna Jayasekara (Retd).
Ambassador Levan Dzhagaryan: said “This delivery is a reflection of long-term friendly relations between Russia and Sri Lanka and reaffirms Moscow’s commitment to support countries in a difficult humanitarian situation.”
The supplies brought by the EMERCOM (Russian Ministry of Emergency Situations) aircraft comprised a movable 60 kW electric power station, Pumping equipment for water drainage, Summer tents (10-person capacity) and Food supplies (sugar, vegetable oil, rice)
The total cargo weight is 35 metric tonnes. The aid will be distributed among the most affected regions.
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“We cannot allow flooding to become a part of the daily lives of the people in the Colombo District” – PM
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