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Parliament flays FM, etc., for revenue shortfalls: Siyambalapitya says situation not properly assessed

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Ranjith Siyambalapitiya

by Shamindra Ferdinando

Some declarations made by various parliamentary committees about public finance often didn’t represent the actual situation, says State Finance Minister Ranjith Siyambalapitiya.

Siyambalapitiya said so when The Island sought his response to criticism against the Finance Ministry and three revenue collection authorities namely the Inland Revenue, Customs and Excise department, for their failure to meet revenue targets.

The Committee of Public Enterprises (COPE), Sectoral Oversight Committee on Alleviating the Impact of the Economic Crisis, Committee on Ways and Means, Committee on National Economic and Physical Plans and Committee on Public Finance (COPF) respectively headed by Lasantha Alagiyawanne, Gamini Waleboda, Patali Champika Ranawaka, Mahindananda Aluthgamage and Dr. Harsha de Silva, have recently sought explanation from the relevant authorities regarding their failure to carry out specific instructions issued by Parliament.

The State Finance Minister emphasised that those who had been entrusted with revenue collection tasks were in overdrive. When The Island pointed out that the parliamentary committees always based their assessments on the latest available data provided by relevant revenue collection authorities, lawmaker Siyambalapitiya said of the Rs 943 bn mentioned by them as the total amount of uncollected taxes as much as 60 % to 65% had been held up in the legal process at different levels. “The Inland Revenue Department cannot be held responsible for delays caused by lengthy legal processes,” the State Finance Minister said.

Siyambalapitiya said that he wouldn’t deny the possibility of unscrupulous elements resorting to legal measures, including the appeal process to deliberately delay payments.MP Siyambalapitiya said that of the remaining 35% uncollected taxes, about 15% had been collected so far and they were keen to continue with ongoing efforts to bring the operation to a successful conclusion.

Asked whether the Attorney General’s Department had been consulted as regards inordinate legal delays, the State Minister said that there were three rounds of talks with them as well as with Justice Minister Dr. Wijeyadasa Rajapakse, PC.

Siyambalapitiya pointed out that those who had been trying to avoid taxes enjoyed the services of the best lawyers. “We cannot do anything about citizens resorting to legal measures. That is the ground reality,” MP Siyambalapitiya said, urging the parliament to instead explore ways and means to overcome the problem.

Commenting on the massive sugar duty scam perpetrated in Oct 2020, State Minister Siyambalapitiya said that so far Rs 310 mn had been recovered from six importers though altogether 12 businesses were investigated. MP Siyambalapitiya said that the CID conducted a thorough investigation into the sugar tax scam and submitted a report to the AG and was awaiting his instructions to take legal action.

The Auditor General has declared that the government suffered a loss of over Rs 16 bn due to the reduction of sugar tax from Rs 50 to 25 cents by way of a gazette issued on Oct 13, 2020.

Siyambalapitiya acknowledged that deterioration of desired standards couldn’t be rectified overnight. “However, we are making a determined effort to turn around the situation,” the SLPPer said, accusing the Opposition of attempting to exploit the current economic crisis to their political advantage.

At the recent meeting chaired by State Transport Minister Alagiyawanne, in his capacity as the Chairman of COPE, the lawmakers found fault with the Finance Ministry for neglecting its primary duties and responsibilities. The Finance Ministry representatives had been told that a proposal made in 2016 to the Finance Ministry to improve and enhance IT setups at revenue collection authorities wasn’t implemented. Therefore a committee headed by Secretaries to the President and the Premier was established to look into this matter and take whatever steps necessary to expedite the process.



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MoU on Defence a significant new addition to Ranil-Modi consensus

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Thuyakonttha

Defence Secy says a decision was taken at 2023 Defence Dialogue

Contrary to claims that the MoU/agreements finalised during Indian Prime Minister Narendra Modi’s state visit here were in accordance with an understanding between former President Ranil Wickremesinghe and PM Modi in July 21, 2023, the MoU on Defence Cooperation is a new addition.

A joint statement issued on July 21, 2023, soon after the conclusion of Wickremesinghe’s visit, didn’t refer to an MoU on defence cooperation.

Premier Modi disclosed the decision to enter into an MoU on 16 Dec., 2024 at a joint press conference addressed by him and President Anura Kumara Dissanayake.

A media statement issued by the Indian High Commission in Colombo quoted the Indian PM as having said that President Dissanayake and he had agreed that the two countries’ security interests were interconnected. “We have decided to quickly finalise the Security Cooperation Agreement.”

President Dissanayake, in his address, didn’t refer to the proposed MoU on defence cooperation. The Presidential Media Division quoted President Dissanayake as having said that they exchanged views on cooperation in the fields of defence and security, power and energy, training and capacity building, education, agriculture and social security.

However, retired Air Vice Marshal Sampath Thuyakonttha, who signed the MoU on Defence Cooperation, in his capacity as the Defence Secretary, said that they had agreed to strengthen defence relations through an MoU during Defence Dialogue in 2023.

Responding to concerns expressed in some quarters about the MoU at issue, Thuyakonttha, a veteran Mi 24 helicopter gunship pilot, emphasised that the agreement on the MoU had been reached in keeping with the instructions issued by the Secretary to the President in January this year.

In addition to the MoU on Defence Cooperation, the two sides finalised six other MoUs/agreements. They dealt with Implementation of HDVC interconnection for import/export of power, cooperation in the field of sharing successful digital solutions implemented at population scale for digital transformation, multi-sectoral grant assistance for Eastern Province, cooperation in the field of health, medicine, etc.

India, Sri Lanka and UAE have agreed to develop Trincomalee as an energy hub.

Milinda Moragoda, who served as Sri Lanka’s High Commissioner in New Delhi during the August 2021-Oct 2023 period and played a critical role in negotiations, stressed the pivotal importance of going ahead with the MoU/agreements.

In response to The Island queries regarding the latest developments, Moragoda said that the progress made on the economic integration and connectivity side was extremely encouraging. Especially, the concrete steps taken to establish connectivity in power, petroleum and the development of Trincomalee as an energy hub, he said.

“The fact that trilateral cooperation between India, Sri Lanka and selected third countries will become part of our future development strategy, with the formal entry of the UAE as a partner in the Trincomalee energy hub initiative is a very important step forward.”

Moragoda said: “The establishment of a framework to share successful digital solutions between India and Sri Lanka is also another positive development.

“It is critical that both parties now focus on the speedy implementation of all the agreements that have been reached.

“Future consideration should be given to developing road and rail connectivity as well.

“We should all understand and absorb that the physical connectivity that would be established in power, petroleum and other sectors will link us directly to India, the Middle East and Europe making us potentially a key global hub at a pivotal point in world history.

“The understandings that have been reached with India could become critical for Sri Lanka’s immediate economic survival and development as we cope with the monumental disruptions taking place in the international economic environment and geopolitical sphere at the moment.

“Sri Lanka is in an extremely vulnerable position and will have to very quickly work out a survival strategy through which we can diversify our foreign income and investment sources while arriving at an understanding with the US in the short term.

“As we enter an era where geoeconomics will become more important than plain economics, the agreements reached during the visit of Prime Minister Modi could help lay an initial foundation for Sri Lanka’s future developmental direction.”

By Shamindra Ferdinando

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Harsha says govt. grabbed credit for what he initiated

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Dr Harsha de Silva

Dambulla cold storage facility:

SJB Colombo District MP Dr Harsha de Silva has said he is happy that the government is continuing with his projects after changing their names.

Speaking to the media after Indian Prime Minister Narendra Modi had inaugurated a 5,000-metric-ton cold storage facility in Dambulla, Dr de Silva said the construction of that facility had been initiated in 2019 with a grant from India, during his tenure as Minister of Economic Reforms. The name of the project, Prabhaswara, had been changed, he claimed.

Dr de Silva said he had not been informed of the opening of the storage facility.

He said a plaque had been installed with names of the Indian prime minister and President Anura Kumara Dissanayake inscribed on it in violation of the NPP’s pledge that the names of its leaders would not be displayed in that manner.

Dr de Silva that he was genuinely happy about the opening of the country’s first agricultural storage complex capable of controlling temperature and humidity.

 “Due to the collapse of the Yahapalana government, we were unable to complete the project. Later, those who came to power had no desire to finish the work. I believe that this government will ensure that farmers will benefit from the business plan we developed.

by Dhammika Salwathura

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Patali, Sarath concerned over Defence MoU

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Former ministers Patali Champika Ranawaka and retired Rear Admiral Sarath Weerasekera, over the weekend, said that Sri Lanka shouldn’t under any circumstances enter into a Memorandum of Understanding (MoU) on Defence Cooperation with any country.

Responding to media queries following a public meeting held at Naula, Matale, in support of LG candidates, Ranawaka said that the MoU could place Sri Lanka at an extremely vulnerable position as the world and regional powers battled for supremacy in the Indian Ocean.

Ranawaka pointed out that the JVP had destroyed many lives during its second insurgency in the name of what it described as Indian expansionist policies.

Weerasekera said

Sri Lanka had suffered for three decades due to a terror project launched by India.

Addressing the media in Colombo, the former Public Security Minister demanded that the NPP government reveal the contents in the MoU on Defence Cooperation.

Both Ranawaka and Weerasekera recalled that the JVP, while in the opposition, had fiercely opposed joint projects with India.

Weerasekera said that having gained political power, the JVP had overnight changed its position. (SF)

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