News
“Oppressive tax policies undermining SL’s Economic Recovery”: Moragoda
Milinda Moragoda, Founder of the Pathfinder Foundation, released a statement saying Sri Lanka’s present oppressive tax regime is undermining the country’s economic growth agenda. Moragoda says, furthermore, many local entrepreneurs and businesses that can afford it are relocating abroad, and new investments have decreased significantly.
Full text of the statement: “While the demand compression it has created has, to an extent, stabilized the economy, it has made the poor more destitute and is driving the middle class towards poverty. Adversely affected professionals, skilled workers, and others are reluctantly leaving the country in large numbers, exacerbating the brain drain and reducing our workforce.
“Furthermore, many local entrepreneurs and businesses that can afford it are relocating abroad, and new investments have decreased significantly. For these reasons, this tax regime is counterproductive to economic growth and unsustainable. All forecasts indicate that Sri Lanka will not be able to grow at more than 3% for the next eight years or so.
“If this situation is to be corrected, the rate of taxation will have to be brought down. However unpalatable it may be, this can only be achieved through a combination of deep reforms that will lead to small government (by reducing public expenditure), accelerated privatization, large-scale foreign investment, increased connectivity at both a regional and global level and, in general, creating a more business and investment-friendly climate.
“In Sri Lanka, the vested interests are such that many of these proposed reforms will require strong political resolve to be implemented. Furthermore, Sri Lanka must diversify its income streams beyond worker remittances, garments, tourism, and commodities to include new sectors. It is time for Sri Lanka to modernize its economy.
“We have to realize that in the high-income countries of the Organization for Economic Cooperation and Development (OECD), the average corporate income tax rate fell from 47% in 1980 to 23% in 2021. Many countries have cut tax rates on dividends, capital gains, and estates, and most countries that once had annual wealth taxes have abolished them. Unfortunately, Sri Lanka is going in the opposite direction, with wealth and estate taxes now being contemplated.
“With national elections on the horizon, it is incumbent upon all political parties to step up and present proposals that outline a clear trajectory that will steer us towards economic recovery. It is high time that all political parties take this responsibility seriously and present a comprehensive set of proposals on tax policies. These proposals should aim to bring down individual, corporate, and value-added taxes, and other levies to levels that will make Sri Lanka competitive, spur growth, and create rapid development.
“Especially for countries like Sri Lanka, which have a bloated government sector, the path of least resistance is to increase revenues through taxation and tariffs to meet their day-to-day requirements to avoid long-needed reforms that go to the root of the problem. However, Sri Lanka cannot afford to continue on this path for the above reasons. A low-tax, growth-oriented, investor-friendly regime that is both fair and equitable to all Sri Lankan citizens and has a well-designed and targeted social safety net to protect the poor and vulnerable must be put into place.”
Latest News
Sun directly overhead Kokkuvil, Nallur, Kodikamam and Nagar Kovil at about 12.11 noon today (28)
The sun is going to be directly over the latitudes of Sri Lanka during 28th of August to 07th of September due to its apparent southward relative motion.
The nearest places of Sri Lanka over which the sun is overhead today (28) are Kokkuvil, Nallur, Kodikamam and Nagar Kovil about 12.11 noon.
News
Eight politicians in drug kingpin probe
Police to arrest and question four former ministers, others over links to Basik
By Norman Palihawadane
Police are investigating alleged links between suspected major drug trafficker Shiran Basik and a number of prominent politicians, with eight of them due to be arrested and questioned as investigators widen their probe into his financial dealings and network of associates, police headquarters, according to a senior police officer.
Among those set to face questioning include a sitting MP, four former ministers, and at least one of them is a female. Police are also investigating allegations that Basik provided large sums of money to politicians during election campaigns and extended other financial and material benefits to political figures.
Investigators are also looking into claims that two politicians were provided with facilities to construct houses and hotels, while efforts are under way to establish the extent of political support and assistance allegedly provided to Basik.
The Colombo Central Crime Investigation Bureau (CCIB) is expected to question the politicians based on information reportedly disclosed by Basik during interrogation. Two electoral organisers are also expected to be taken into custody as part of the ongoing investigation, according to police sources.
Meanwhile, statements are being recorded from managers and employees of several businesses allegedly linked to Basik, while investigators continue to examine information and records recovered from his mobile phone.
Basik, 48, was brought back to Sri Lanka on August 14 after being arrested in Dubai and deported. He was taken into custody by officers of the Criminal Investigation Department’s Airport Unit at Bandaranaike International Airport and subsequently handed over to the CCIB for further investigation.
Police initially obtained a 72-hour detention order to question Basik before securing approval to detain him for 90 days.
Basik, a resident of Dehiwala, is facing investigations over alleged large-scale drug trafficking as well as firearms, and unlawful assembly of weapons-related offences. Police are also examining whether he had any involvement in recent prison-related incidents and have said information has emerged linking him to the 2012 Welikada Prison riot.
The investigation has also expanded to Basik’s alleged assets and business interests in Sri Lanka and overseas.
Police have said information uncovered during questioning indicates that Basik had claimed ownership of five hotels along Colombo’s Marine Drive. Investigators have also identified two houses and two mobile phone shops in Boralesgamuwa allegedly linked to him.
A court has ordered a comprehensive examination of bank accounts linked to Basik, with the Financial Intelligence Unit of the Central Bank of Sri Lanka to conduct a review of his financial accounts. A separate investigation into his wealth and properties is being conducted by the Illegal Assets Investigation Division.
Investigators are also examining claims that Basik owns properties, including hotels and vehicles, in several European countries, as well as a high-value vehicle in Dubai. These claims remain subject to further investigation.
Basik had left Sri Lanka for Dubai in 2018, where police said he lived a lavish lifestyle while operating businesses. He was arrested by UAE authorities before being deported to Sri Lanka.
During initial questioning, Basik told investigators that Dubai police had stopped and searched him at a shopping mall and examined his mobile phone. He claimed that footage relating to Iranian missile and drone attacks was found on the device and that he was subsequently questioned over alleged links to Iran.
Police are continuing to examine the circumstances surrounding his arrest and deportation, as well as the information contained in his mobile phone and other evidence gathered during the investigation.
The ongoing probe is being conducted under the supervision of Senior DIG Ranmal Kodituwakku and SSP Kamal Ariyawansa.The allegations against Basik and the politicians named in connection with the investigation have not been established in court, and the investigations remain ongoing.
News
CJ first SC judge to benefit from 22A, if enacted: BASL
The Bar Association of Sri Lanka (BASL) has opposed the proposed “Twenty-Second Amendment to the Constitution”, saying it raises serious concerns over judicial independence and the rights and interests of the public.
In a statement signed by BASL President Rajeev Amarasuriya and Secretary Nalin De Silva, the association said it had challenged the constitutionality of the proposed amendment before the Supreme Court.
The BASL noted that the Chief Justice would be the first Supreme Court judge to benefit from the proposed amendment if it becomes law. It also referred to widespread speculation that the amendment was being expedited to facilitate an extension of the incumbent Chief Justice’s tenure, which is due to end on December 1, 2026.
Full text of the statement:
“The Bar Association of Sri Lanka (BASL) has taken a principled position opposing the Bill titled the “Twenty-Second Amendment to the Constitution” on the basis that it raises serious concerns regarding the independence of the Judiciary and the rights and interests of the people. Accordingly, the BASL has challenged the constitutionality of the proposed amendment before the Supreme Court.
“It is observed that it will be the Honourable Chief Justice who will be the first Judge of the Supreme Court who will benefit from the 22nd Amendment, if this Bill is enacted into Law.
There is widespread belief that this amendment is being rushed to facilitate the extension of the tenure of the Honourable Chief Justice which would otherwise complete on 1st December 2026. In this backdrop, in the recent past, we have witnessed allegations being made in Parliamentary Proceedings as well as on Social Media concerning the Judiciary including the incumbent Chief Justice.
“During this period, the BASL has also been subjected to unfounded attacks on social media and other platforms.
“The Judiciary, like every other institution exercising public power, must remain subject to legitimate scrutiny and accountability. Judgments, judicial conduct and the administration of justice may properly be subjected to fair, informed and responsible criticism. Where credible concerns or allegations arise regarding any member of the Judiciary, including the Chief Justice, they should be examined objectively and addressed through the appropriate constitutional and parliamentary processes which are in place, with due regard to fairness and due process.
“At the same time, everyone must exercise responsibility when making allegations concerning individual judges, lawyers and others. Personal attacks based upon unsubstantiated allegations can undermine public confidence in the administration of justice and affect the independence and integrity of the judicial process and the system of justice
“Judicial independence is not intended to shield any individual from legitimate scrutiny or accountability. It is a safeguard for the people, ensuring that disputes are determined impartially and that individual rights, the Rule of Law and the constitutional order are protected.
“The BASL therefore calls upon all organs of the State, all parties concerned and the media to respect the role of the Judiciary and the system of administration of justice, while ensuring that any genuine concerns are addressed fairly, responsibly and through the procedures established by the Constitution and the law.”
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