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No import of vehicles anytime soon as govt. is concerned about drain on exchange reserves – Siyambalapitiya
By Rathindra Kuruwita
The government has not decided on a timeline to allow the free import of vehicles to the country, State Minister of Finance, Ranjith Siyambalapitiya says. He said that importing vehicles would be a drain on the country’s foreign currency reserves.
“We have allowed the import of 250 buses and 750 vans for tourism. We are looking into whether and how we can relax the import of vehicles. That’s it.”
Siyambalapitiya said there is one vehicle for five Sri Lankans. The government has appointed an expert committee to examine whether the country is ready to allow the import of private vehicles.
“We will decide what to do, based on what the Committee says. Some groups, like vehicle importers, are adversely affected by the restrictions on vehicle imports. However, we must look at national priorities.”
The State Minister said there will be a massive demand for vehicles, if the government relaxes the restrictions on vehicle imports. This would lead to a large outflow of foreign reserves.
“We have not allowed vehicle imports since 2020. The demand probably is huge now”.
Siyambalapitiya said there are sporadic rumours that the government will allow vehicle imports soon. “I don’t know how to make these videos and how they come with this idea,” he added.
He also said that they are closely monitoring the vehicles imported under a scheme to allow migrant workers to import vehicles.
Siyambalapitiya said that restructuring domestic debt was controversial and that the biggest burden of the restructuring was borne by the EPF.
“There are 2.7 million beneficiaries and last year, we promised to pay them an interest rate of 9 percent until 2026. However, at the end of 2023, we realized we can give a higher interest rate because of the good investments we had made with the fund. We decided to give an interest of 13 percent for 2023. What we will pay for 2024 will be decided in 2025,” he said.
He added that this is the first time that EPF beneficiaries received an interest rate of 13 percent after 2009.
Siyambalapitiya said in the past four months, the Central Bank has bought 1.2 billion dollars from the local market. If the Bank did not make this intervention, the exchange rate of the dollar will be about 250 rupees.
“This would have badly affected the exporters.”
Sri Lanka has exceeded its state revenue target for the first quarter of 2024 by 6 percent, Siyambalapitiya said, adding that the government expects a revenue collection of 4,106 billion rupees in 2024.
The State Minister said the government wants its revenue to be at least 14 percent of the GDP and that he believes the revenue target for the year can be achieved.
The Sri Lankan government collects revenue through three institutions, i.e., Sri Lankan Customs, the Excise Department, and the Inland Revenue Department, and has collected 834 billion rupees (about 2.8 billion dollars) in the first quarter, compared with an expected revenue target of 787 billion rupees (about 2.6 billion dollars) in the period, he said.
Siyambalapitiya mentioned that cheques will no longer be accepted to pay income tax. Over the years a large number of people have paid their income tax by cheque and a lot of these cheques have bounced.
The State Minister said that any government that comes into power will have to follow the current economic policies. There will be a collapse akin to 2022, if there is a diversion from the current path.
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It is our collective responsibility to build a nation grounded in unity and strength – President
President Anura Kumara Disanayake in his Maha Shiva rathri message said that it is our collective responsibility to build a nation grounded in unity and strength.
The full text of the message issued by the President’s media division:
Maha Shiva Rathri is a sacred and joyous occasion celebrated by Hindu devotees across the world in reverence of Lord Shiva. This divine night marks the celestial union of Lord Shiva and Goddess Parvati, as well as the powerful Tandava, Shiva’s cosmic dance of creation and destruction. It symbolises the triumph of wisdom over ignorance, dispelling the darkness of illusion and lighting the path to enlightenment.
On this auspicious night, Hindu devotees observe fasting and engage in spiritual practices, praying for the darkness of ignorance to be replaced by the radiance of wisdom. It is also a time to seek divine blessings for prosperity, peace and fulfilment in life.
The union of Shiva and Parvati is a profound representation of knowledge and power coming together. It reminds us that breaking free from the illusions of division allows us to embrace the truth with open eyes. Today, as we stand at the dawn of a new era, this message is more relevant than ever. Let us tear down the barriers that have kept us apart for generations and unite as one, casting aside discord and embracing togetherness. This is a moment to nurture interfaith harmony, celebrate our diversity and move forward with love and mutual respect, dedicating ourselves to the progress of our beloved motherland.
As we journey towards a brighter future, it is our collective responsibility to build a nation grounded in unity and strength. We are stepping into a time of transformation, embracing political, economic and social renewal, shaping a future that holds promise and hope for all.
On this sacred night, as the glowing lamps of Maha Shiva Rathri illuminate our surroundings, let them also illuminate our hearts, guiding us with unwavering faith along the path we have chosen. Let us walk forward together, hand in hand, in the spirit of peace, unity and shared prosperity.
By Saman Indrajith
Finance and Planning Deputy Minister Dr. Harshana Suriyapperuma told Parliament yesterday (25) that SriLankan Airlines was in debt due to political interference under previous governments.
Answering a question raised by Anuradhapura District SJB MP Rohana Bandara, Dr. Suriyapperuma said that such interference had resulted in an ongoing case in international courts.
Dr. Suriyapperuma stated that SriLankan Airlines had earned notoriety for corruption not only here but also abroad.
“Currently, there is an ongoing case in an international court over claims that commissions were sought in respect of the purchase of aircraft. Aircraft have been leased at exorbitant rates, far beyond prevailing market rates,” he said, adding that the actions and decisions of past regimes over the last few decades regarding SriLankan Airlines must be taken into account when examining its debt.
Outlining the measures taken by the government to tackle the staggering debt, the Deputy Minister of Finance said that a five-year programme would be implemented from 2025 to 2030.
Dr. Suriyapperuma explained that despite the allocation of Rs. 20 billion from the 2025 Budget for SriLankan Airlines, the funds would not be utilised for the airline’s operational expenses. Instead, the management had been tasked with transforming it into a self-sustaining entity. Discussions had already begun with relevant stakeholders to restructure the debt, which includes loans obtained in US dollars.
Dr. Suriyapperuma revealed that SriLankan Airlines had been paying USD 900,000 per month in installments for three aircraft that had remained unused for several years. He added that the national carrier currently owned a total of 22 aircraft and employed 3,194 staff members in its main airline operations, along with 2,862 employees in its strategic business units.
Dr. Suriyapperuma also highlighted that the Ministry was currently evaluating those plans, with the expectation of achieving operational profitability and securing government support within the five-year period.
Suriyapperuma assured that measures would be taken to address SriLankan Airlines’ debt without burdening the public.
… Easter Sunday carnage suspects among them
The government has issued a gazette extending the ban on several Tamil diaspora groups, alleging they supported “terrorism-related activities,” The Tamil Guardian has reported.
The gazette, signed by Defence Secretary Air Vice Marshal (retd.) Sampath Thuyyakontha, declared that these organisations have “repeatedly provided financial support for terrorism.” As a result, their financial and economic assets remain frozen, and Sri Lankans are prohibited from having any contact with them. Those that do risk being arrested.
The list also reaffirms the ban on 222 individuals allegedly linked to terrorism.
The organisations blacklisted by the Sri Lankan government include:
* Liberation Tigers of Tamil Eelam (LTTE)
* Tamil Rehabilitation Organisation (TRO)
* Tamil Coordinating Committee (TCC)
* World Tamil Movement (WTM)
* Transnational Government of Tamil Eelam (TGTE)
* World Tamil Relief Fund (WTRF)
* National Council of Canadian Tamils (NCCT)
* Tamil Youth Organisation (TYO)
Other organisations listed include several linked to Islamic groups, such as the National Towhead Jema’ah (NTJ) and the Sri Lanka Islamic Student Movement (SLISM).
The Tamil Guardian reported that successive Sri Lankan governments have used terrorism laws to ban Tamil organisations that continue to function openly and legally in the United States, United Kingdom, Canada, and throughout Europe. This ban, however, stifles links between these diaspora organisations and Tamils, making it a criminal offence for Sri Lankan citizens to maintain contact with them.
The reposition of the ban follows a pattern seen in previous years. In 2024, Sri Lanka renewed its prohibition of Tamil diaspora organisations, days after India extended its own ban on the LTTE. The move was widely condemned as politically motivated and an attempt to justify Sri Lanka’s military presence in the “Tamil homeland”.
It is our collective responsibility to build a nation grounded in unity and strength – President
Fairly heavy showers above 75mm can be expected at some places in Eastern and Uva provinces and in Matale, Nuwara-Eliya, Polonnaruwa, Galle, Matara, Kalutara and Rathnapura districts.
USD 900,000 paid monthly for three unused SriLankan aircraft– Dy. Finance Minister
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