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Revenue collection remains indomitable challenge – President’s trade union chief

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Ratnapriya

By Shamindra Ferdinando

President Ranil Wickremesinghe’s Director General of Trade Unions Saman Ratnapriya said that the failure on the part of successive governments to efficiently collect due tax revenue had undermined the national economy.

The former UNP National List MP said that uncollected tax revenue, according to parliamentary records, remained over Rs 900 bn. Therefore, uncollected colossal sums left in abeyance remained a problem, Ratnapriya told a regular media briefing at his office on the third floor of the Lake House building on Tuesday (14).

Ratnapriya said that a special unit had been established at the Presidential Secretariat in line with the overall measures to address the issue at hand.

The civil society activist said so when The Island asked him to explain how the Wickremesinghe-Rajapaksa government intended to pay the Rs. 10,000 cost-of-living allowance to 1.3 mn workers, beginning April 2024, and pay the arrears (January to March) in Oct., in stages, unless tangible measures were taken to streamline revenue collection.

At the onset of the briefing Ratnapriya explained the slow turn-around of the economy since the declaration of bankruptcy in April 2022. Ratnapriya recalled at the time UNP leader Ranil Wickremesinghe accepted the Finance portfolio, the Treasury was in two minds about paying the July 2022 public servants’ salary. Some believed the July salary should be paid in two parts, but Wickremesinghe ruled that out. “Today, the government is in a position to increase the public sector monthly cost of living allowance from Rs, 7,800 to Rs. 17,800 and pensioners’ allowance from Rs. 3,525 to Rs. 6025, an increase of Rs 2,500.

Ratnapriya emphasized that the government wouldn’t obtain loans nor print money to pay for the allowances. Instead, taxes would be collected to pay these allowances in line with overall strategy discussed and adopted to address issues at hand in consultation with international lending bodies, including the IMF and the World Bank.

Pointing out that neither President Wickremesinghe, in his capacity as the Finance Minister, nor previous administrations, had taken tangible action to collect unpaid taxes, The Island asked whether trade unions would make representations in this regard. Ratnapriya acknowledged that a country couldn’t move forward unless taxes were collected. According to him, the unit established at the Presidential Secretariat now worked with the Inland Revenue Department to enhance revenue collection efforts.

Ratnapriya alleged that those responsible for the tax collection apparatus resisted attempts to streamline the process. The trade union activist pointed out how tax authorities conveniently failed to tax casinos regardless of Treasury directive.

Ratnapriya said that implementation of digitized tax structure over the next few years would streamline the process and effectively collar those who had been dodging paying their taxes.

The Island also raised the contentious issue of successive governments allowing certain institutions, including the Central Bank and CEB, to pay the PAYE (Pay As You Earn) tax of their employees. Ratnapriya acknowledged that some institutions had done so but President Wickremesinghe stopped that practice. “As of today, institutions do not pay PAYE tax on behalf of their workers. The President’s directive is in operation. This should continue.”

Commenting on political developments, Ratnapriya said that President Wickremesinghe had already declared that presidential and parliamentary polls would be held in 2024 and 2025, respectively. The President also indicated his readiness to conduct Provincial Council polls if the country so desired, Ratnapriya said, claiming that Local Government polls would be a waste of time. Ratnapriya added that the public would have to pay the salaries of 8,700 councillors if Local Government polls were held, but now even without them those councils are functioning smoothly.

Ratnapriya insisted that the latest budget was not meant to promote the government ahead of impending national elections.

Responding to another query, Ratnapriya said that some of those who launched protest campaigns demanding Rs 20,000 actually hoped for Rs 5,000. A smiling Ratnapriya said that he knew what was going on as those trade union leaders happened to be his friends and associates. Ratnapriya insisted that the vast majority of public sector workers were happy with Rs 10,000 cost-of-living allowance. Therefore, those who intended to pursue protest campaigns demanding their original demand for Rs 20,000 wouldn’t receive any public support they required because of the dire circumstances facing the country.



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Navy seizes an Indian fishing boat poaching in northern waters

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During an operation conducted in the dark hours of 27 Dec 25, the Sri Lanka Navy seized an Indian fishing boat and apprehended 03 Indian fishermen while they were poaching in Sri Lankan waters, south of the Delft Island in Jaffna.

The seized boat  and Indian fishermen (03) were brought to the Kreinagar Jetty and were handed over to the Fisheries Inspector of Jaffna for onward legal proceedings.

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Delay in govt. response to UK sanctions on ex-military chiefs, and others causes concern

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General Silva / Admiral Karannagoda

Admiral of the Fleet Wasantha Karannagoda said that he is still waiting for the government’s response to the UK sanctions imposed on three ex-military officers, including him, and a former member of the LTTE.

The former Navy Chief said so in response to The Island query whether he was aware of the position taken by a three-member ministerial committee, consisting of Foreign Minister Vijitha Herath, Justice and National Integration Minister Harshana Nanayakkara and Deputy Defence Minister Maj. Gen (retd) Aruna Jayasekera.

The government named the committee in the wake of the UK declaration of travel bans and asset freezes in respect of Karannagoda, General Shavendra Silva, General Jagath Jayasuriya and Vinayagamoorthy Muralitharan, also known as Karuna. Maj. Gen. Jayasekera said that they inquired into the issue at hand.

Karannnagoda said that he would like to know the government’s recommendations if the ministerial committee briefed the Cabinet as per a decision taken by the Cabinet of Ministers. Karannagoda said that the issue should have been taken at the highest level as various interested parties continue to humiliate the war-winning military by targeting selected individuals.

Other sources, familiar with the issues at hand, told The Island that the government was yet to announce its stand.

Sources pointed out that the Opposition has been silent on what they called a matter of utmost national importance.

Cabinet spokesman Dr. Nalinda Jayathissa is on record as having described the UK move as a unilateral move and that committee was formed to examine the developments and recommend appropriate measures to the Cabinet.

Foreign Minister Herath told The Island the government was not successful in getting the British to withdraw sanctions. Describing the UK decision as unilateral, the Miniser said that the government conveyed its concerns but the UK didn’t change its stand.

The Island raised the issue with Minister Herath and Admiral Karannagoda in the wake of British MP of Sri Lankan origin, Uma Kumaran requesting the UK Foreign Secretary Yvette Cooper to expand on the government’s sanctions imposed on the four above-mentioned persons.

During a Foreign Affairs Committee meeting on 16 December, the MP for Stratford and Bow highlighted the lack of accountability and political will from the current Sri Lankan government to address war crimes and mass atrocities committed in Sri Lanka.

Sources said that David Lammy, who served as Secretary of State for Foreign, Commonwealth and Development Affairs at the time of the declaration of sanctions, had no qualms in declaring that the action taken against four Sri Lankans was in line with a commitment he made during the election campaign to ensure those responsible wouldn’t be allowed impunity. The UK government statement quoted Lammy as having said that this decision ensured that those responsible for past human rights violations and abuses were held accountable.

By Shamindra Ferdinando

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Sri Lanka outlines seven key vectors of international cooperation at Moscow forum

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Shobini

Sri Lankan Ambassador to the Russian Federation, Shobini Gunasekera recently presented a conceptual framework of seven key vectors that defined contemporary international relations and facilitated dialogue among States. She made the presentation at XI Moscow International Financial and Economic Forum held under the theme “Building Bridges: Partnership without Borders”.

In her address, the Ambassador emphasised that these vectors represent the channels through which ideas circulate, trade expands, and peace is strengthened, serving as guiding principles for cooperation amid global uncertainties. The seven key vectors highlighted were economic ties as a foundation for long-term stability; political choice and diplomacy through dialogue and multilateral engagement; security cooperation to address cross-border threats; cultural linkages through education, tourism, and professional exchanges; technological advancement, particularly in digital systems and artificial intelligence; environmental stewardship through collective action on renewable energy and climate change; and humanitarian obligations, including disaster relief and development cooperation.

 Drawing on Sri Lanka’s experience, the Ambassador illustrated the practical application of these principles by highlighting the country’s strategic location in the Indian Ocean, its role as a trade and logistics hub, and its active engagement in regional groupings such as BIMSTEC and the Indian Ocean Rim Association, where the Russian Federation serves as a Dialogue Partner.

 The potential for enhanced Sri Lanka–Russia bilateral cooperation was underscored, particularly through complementarities between Russia’s technological and energy expertise and Sri Lanka’s logistical capabilities and maritime infrastructure. She noted that such synergies could support joint initiatives in trade, innovation, tourism, and logistics, while cultural and scientific exchanges would further strengthen mutual understanding between the two countries.

Concluding her remarks, the Ambassador stated that sustained progress requires dialogue, mutual respect, and forward-looking partnerships capable of shaping a shared and stable future.

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