News
One hundred billion shortfall from IMF revenue target, says state minister
by Shihar Aneez
State revenue has seen a shortfall of Rs. 100 billion as of now compared to the revenue target agreed with the International Monetary Fund (IMF), State Finance Minister Ranjith Siyambalapitiya said.Tax cuts for political reasons in December 2019 has resulted in a sharp fall in Sri Lanka’s tax revenue to GDP ratio, which was among the lowest in the world at only 7.3 percent in 2021.
The weak tax revenue performance reflected a combination of low tax rates, narrow tax bases, and low collection efficiency, the International Monetary Fund (IMF) has said. The government had raised taxes and widened the tax net through reducing tax thresholds.
The IMF has said the Sri Lankan government has committed to an ambitious and primarily revenue-based fiscal consolidation strategy with the tax revenue targeted to reach about 10 percent of GDP.
“At present, we are around 100 billion rupees short of our revenue target,” Siyambalapitiya told reporters in Colombo. “But we cannot assume revenue to be the same every month. If you take excise tax, there is a trend. Highest custom taxes are received in November.
But anyway, there is some fall back,” he said.
“There is a number of reasons for this shortfall,” he said. “One is that we are still in an economic contraction. We have drastically restricted the vehicle imports, which gives the highest revenue for Customs. We have not allowed air conditions to be imported. We have not allowed large TVs to be brought.”
An IMF delegation is in Colombo to do the first review of the performance of the Lankan economy and policies against the committed goals the government agreed. A drastic deviation could delay the second tranche of a $3 billion loan. However, the government is confident that it has achieved most of the hard goals it agreed with the global lender.
News
Ex-Justice Minister’s son among three arrested for allegedly demanding bribe from wife of underworld figure
The Commission to Investigate Allegations of Bribery or Corruption (CIABOC) yesterday said that the arrest of three individuals, including the son of former Justice Minister Wijeyadasa Rajapakshe and a Samagi Jana Balawegaya (SJB) organiser, was in connection with a high-profile bribery investigation linked to underworld figure Nadun Chinthaka Wickramaratne alias Harak Kata.
Those arrested were Attorney-at-Law Rakhitha Rajapakshe, son of former Justice Minister Wijeyadasa Rajapakshe, SJB Horana electorate organiser Charith Abeysinghe, and former Civil Aviation Authority Director Aruna Sri Chathuranga.
According to the CIABOC, in 2023, while Harak Kata was being held by the Criminal Investigation Department (CID), a bribe of Rs. 500 million had allegedly been demanded from his wife, Madushika Madhuwanthi, in Dubai to secure Harak Kata’s release from detention or facilitate his transfer to a prison other than the Boossa High Security Prison in Galle, the CIABOC said.
The CIABOC said the alleged bribe had subsequently been reduced to Rs. 200 million, of which Rs. 120 million had allegedly been obtained as an advance payment.The suspects were produced before the Colombo Chief Magistrate’s Court yesterday evening and ordered to be remanded till July 03.
by Norman Palihawadane ✍️
News
President promises to repeal PTA within next few months
President Anura Kumara Dissanayake yesterday told Parliament that the Prevention of Terrorism Act (PTA), which had remained in force for 46 years despite being introduced as a temporary measure, would be repealed within the next few months.
The President said Justice Minister Harshana Nanayakkara had completed drafting the legislation that would replace the PTA and that the final discussions on the matter had already been concluded.
“The PTA was introduced in 1979 as a temporary law, but it has continued for the past 46 years. There have been strong public demands for its repeal,” President Dissanayake said.
He said the government was committed to abolishing the controversial legislation while ensuring that the country remained equipped to deal with organised crime and serious security threats.
The President said a new legal framework would be introduced specifically to address organised criminal activities, with clearly defined provisions and safeguards to prevent misuse.
He noted that one of the major criticisms against the PTA was its broad definition of terrorism, which had raised concerns over possible violations of fundamental rights and democratic freedoms.
The proposed legislation, he said, would focus narrowly on organised crime while protecting constitutional rights, including freedom of expression and other civil liberties.
President Dissanayake also said the government had taken steps to amend the Online Safety Act introduced by the previous administration, instead of implementing it in its existing form.Although the legislation had been passed by Parliament, it had not been enforced under the present administration, he said, adding that Cabinet approval had already been granted to proceed with amendments.
He stressed that legal reforms should be carried out through a transparent process that respected public rights, noting that previous instances where laws passed by Parliament were later amended at the Cabinet level had raised concerns regarding transparency and due process.The President said the government’s approach was to ensure that new laws addressed security challenges while maintaining democratic values and safeguarding individual freedoms.
By Saman Indrajith ✍️
News
SJB signals disciplinary action against its Horana organiser after his arrest
Opposition and SJB Leader Sajith Premadasa yesterday told Parliament that his party would initiate disciplinary action against its Horana organiser Charith Abeysinghe, arrested by the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) over alleged bribery charges.
Responding to a query raised by the government in Parliament, Premadasa said there would be no room within the SJB for individuals involved in wrongdoing or criminal activities.
“We will definitely conduct a disciplinary inquiry and take the strongest possible action if necessary. There is no place in our party for those who commit wrongdoing or criminal acts. A final decision will be taken after an investigation,” he said.
Abeysinghe, along with Attorney-at-Law Rakhitha Rajapakse and former Airport and Aviation Services (Sri Lanka) Ltd. Director Aruna Sri Chathuranga, was arrested earlier yesterday by the CIABOC over allegations of soliciting a Rs. 120 million bribe from an underworld figure’s wife.
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