News
Lanka to launch urgent reforms to address fiscal challenges
(PTI) Cash-strapped Sri Lanka will have to undertake serious fiscal reforms to revive the ailing economy as it has identified a huge gap between the state’s revenue and expenditure, a senior official said on Friday.Addressing a seminar, Secretary to the Treasury Mahinda Siriwardena said, “We have an average monthly income of 145 billion rupees where the monthly expenditure amounts to 157 billion.”
He said the monthly state pay bill was 93 billion with another 27 billion for pensions. With the cost of the poor relief, social welfare costs, and capital expenditure of 11 billion there would be a revenue shortfall.
“We are made to borrow to finance the gap. This is why fiscal reforms were needed to bring down expenditure and raise revenue”, Siriwardena stressed.
The government has been facing opposition to its anticipated tax reforms which would see drastic rises in personal income taxes from employment.All salaries exceeding 100,000 per month are to be taxed at higher bands.
“These tax proposals with direct taxation would only affect 10 per cent of the population. We appeal to them to help the rest of the 90 per cent to live”, Ranjith Siyambalapitiya the state minister of finance had said.
The opposition and professional groups have already raised objections to tax hikes.Trade unions have vowed to lead public protests against tax reforms.
Sri Lanka is going through its worst economic crisis since its independence in 1948, triggered by a severe paucity of foreign exchange reserves.The government in May appointed international legal and debt advisors for debt restructuring after the country declared its international debt default in mid-April this year for the first time in history.
Sri Lanka is nearly bankrupt and has suspended repaying its USD 51 billion foreign debt, of which it must repay USD 28 billion by 2027.The cash-strapped country is now trying to secure a USD 2.9 billion bridge loan from the International Monetary Fund (IMF), and looking at financial assurances from its major creditors — China, Japan, and India — which is requisite for the island nation to get the bailout package.
News
Karu argues against scrapping MPs’ pension as many less fortunate members entered Parliament after ’56
Former Speaker of Parliament Karu Jayasuriya has written to President Anura Kumara Dissanayake expressing concerns over the proposed abolition of MPs’ pensions.The letter was sent in his capacity as Patron of the Former Parliamentarians’ Caucus.
In his letter, Jayasuriya noted that at the time of Sri Lanka’s independence, political participation was largely limited to an educated, affluent land-owning elite. However, he said a significant social transformation took place after 1956, enabling ordinary citizens to enter politics.
He warned that under current conditions, removing parliamentary pensions would effectively confine politics to the wealthy, business interests, individuals engaged in illicit income-generating activities, and well-funded political parties. Such a move, he said, would discourage honest social workers and individuals of modest means from entering public life.
Jayasuriya also pointed out that while a small number of former MPs, including himself, use their pensions for social and charitable purposes, the majority rely on the pension as a primary source of income.
He urged the President to give due consideration to the matter and take appropriate action, particularly as the government prepares to draft a new constitution.The Bill seeking to abolish pensions for Members of Parliament was presented to Parliament on 07 January by Minister of Justice and National Integration Dr. Harshana Nanayakkara.
Five suspects, including former Minister Johnston Fernando and his two sons, who were arrested by the Financial Crimes Investigation Division (FCID), were further remanded until 30 January by the Wattala Magistrate’s Court yesterday.
The former Minister’s , sons Johan Fernando and Jerome Kenneth Fernando, and two others, were arrested in connection with the alleged misuse of a Sathosa vehicle during Fernando’s tenure as Minister.
Investigations are currently underway into the alleged misuse of state property, including a lorry belonging to Lanka Sathosa, which reportedly caused a significant financial loss to the state.
In connection with the same incident, Indika Ratnamalala, who served as the Transport Manager of Sathosa during
Fernando’s tenure as Minister of Co-operatives and Internal Trade, was arrested on 04 January.
After being produced before the Wattala Magistrate’s Court, he was ordered to be remanded in custody until 09 January.The former Sathosa Transport Manager was remanded on charges of falsifying documents.
The Commission to Investigate Allegations of Bribery or Corruption (CIABOC) yesterday informed the Colombo Magistrate’s Court that indictments had been filed in the Colombo High Court against former Minister and NDF Badulla District MP Chamara Sampath Dassanayake over a corruption allegation.
The Bribery Commission notified the court when the case, in this regard, was taken up yesterday before Colombo Chief Magistrate Asanga S. Bodaragama.
At the hearing, the CIABOC notified the court that indictments had been presented before the Colombo High Court against the accused.
Accordingly, concluding the proceedings before the Magistrate’s Court, the Magistrate ordered MP Dassanayake to appear before the High Court once a notice was issued.
Karu argues against scrapping MPs’ pension as many less fortunate members entered Parliament after ’56
Johnston, two sons and two others further remanded over alleged misuse of vehicle
CIABOC indicts MP Chamara Sampath in HC on bribery allegation
High-level discussion held to enhance Sri Lanka Agricultural Productivity with Chinese assistance
Prasanna’s travel ban lifted temporarily under enhanced bail and restrictions on guarantors
US Embassy reminds Lankans of strict American visa restrictions
‘Dates have the highest sugar content to fight Coronavirus’
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