News
Revenue collection remains indomitable challenge – President’s trade union chief
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.
News
Presidential Suite at Sri Jayewardenepura General Hospital opened to the public
The special ward at Sri Jayewardenepura General Hospital, which had until now been reserved exclusively for the use of the Executive President, was opened for the public for the provision of medical treatment to the general public from Tuesday (24).
This decision was taken jointly by the Ministry of Health and the hospital administration, in accordance with instructions given by President Anura Kumara Dissanayake.
Constructed in 1984 with a grant from the Government of Japan, Sri Jayewardenepura General Hospital was originally established with a capacity of 1,000 beds. However, in line with the initial design, an additional special unit, designated as Room No. 1001, was included exclusively for the personal use of the Executive President.
Over the 42 years since the hospital’s establishment, this facility has been utilised only on a very limited number of occasions. Nevertheless, it has been maintained over the years in anticipation of a possible visit by a sitting President, without being made available for patient use.
With effect from today, this special unit will be utilised for the benefit of general patients receiving treatment at the hospital. This step has been taken in line with the Government’s policy of ensuring the more efficient use of public assets and resources to meet the healthcare needs of the people.
News
Cabinet Sub-Committee appointed to streamline the Public Service meets for the second time
The second meeting of the Cabinet Sub-Committee appointed to ensure the orderly functioning of the public service was held on Tuesday (24) afternoon at the Presidential Secretariat, under the patronage of Prime Minister Dr Harini Amarasuriya.
Extensive discussions were held on the immediate measures required to ensure the uninterrupted delivery of government services to the public and to address the challenges faced by public servants.
Attention was also drawn to maintaining the continuous operation of services under the Ministries of Public Administration, Provincial Councils and Local Government, Health, Education, and Justice. Accordingly, it was decided to ensure that examinations are conducted as scheduled and that essential medicines are supplied to hospitals without disruption.
The challenges in passenger transport services and the railway transport system, as well as future measures, were also discussed at length. Focus was also placed on the steps to be taken regarding the transportation of essential goods.
In addition, attention was given to introducing digital service systems to facilitate working from home and to enhance the efficiency of existing services. It was also noted that these activities would be supervised under the Ministry of Digital Economy.
Instructions were further issued to review the current energy management practices across all ministries and departments and to take steps to implement necessary policy changes.
Minister of Public Administration, Provincial Councils and Local Government A. H. M. M. H. Abeyaratne, Secretary to the Prime Minister Pradeep Saputhanthri, Chief of Staff to the President Prabath Chandrakeerthi, Secretary to the Ministry of Public Administration, Provincial Councils and Local Government S. Aloka Bandara, Secretary to the Ministry of Health and Mass Media Dr Anil Jasinghe, Secretary to the Ministry of Energy Professor T. M. Udayanga Hemapala, Secretary to the Ministry of Digital Economy T. R. W. S. Dhanapala, Secretary to the Ministry of Justice and National Integration Ayesha Jinasena, PC, Senior Additional Secretary to the President Roshan Gamage, and Chairman of the Ceylon Petroleum Corporation D. J. A. S. S. Rajakaruna, along with other committee members, were also present at the occasion.
News
Energy Minister indicted on corruption charges ahead of no-faith motion against him
… first NPPer to face charges under Section 70 of Bribery Act
Colombo High Court has issued summons on Energy Minister Kumara Jayakody to appear in court today (27) to serve indictment in a corruption case filed by the Commission to Investigate Allegations of Bribery or Corruption (CIABOC). Action has been taken under Section 70 of the Bribery Act. The losses suffered by the government have been estimated at Rs. 8,859,708.
National List (NL) MP Jayakody is the first NPP minister or politician at any level to be indicted for corruption. The NPP parliamentary group consists of 159 including 18 NL members.
The summons has been issued by High Court judge Rashantha Godawalage.
Although CIABOC previously in many instances arrested those who had been under investigation and produced them before Magistrate courts, Minister Jayakody has been directly summoned by the Colombo High Court.
The investigation into alleged corruption in procurement during the time Jayakody served the Ceylon Fertilizer Corporation (CFC) started after the change of government in 2015.
According to the CIABOC investigation, the alleged instance of corruption took place in early 2014 towards the tail end of Mahinda Rajapaksa’s second term. At that time Jayakody was CFC’s Procurement Manager, and the CIABOC dragged the investigation until its current leadership under overall speeding up of the cases recently completed the inquiry.
Parliament recently announced that the debate on no-faith motion moved against Minister Jayakody over alleged irregularities in the procurement of substandard coal for the country’s only coal-fired power station at Norochcholai.
SJB MP Mujibur Rahman said that the NPP, having campaigned on an anti-corruption platform during presidential and parliamentary polls in 2025 couldn’t under any circumstances shield minister Jayakody. The indictment of Jayakody over a corruption case that had happened in 2014 and the failure on his part to fulfill obligations as Energy Minister under the current dispensation couldn’t be considered separately, the Colombo District MP said.
The issue at hand is whether the NPP would try to protect Jayakody at the expense of the government, MP Rahman said. Once the NPPer is formally charged in a corruption case the government would find it extremely difficult to keep him in the cabinet, the former UNPer said.
SJB lawmaker S.M. Marrikar recently warned Minister Jayakody that he should be prepared to serve a jail term. The warning was issued at a media briefing that primarily dealt with the alleged irregularities in the procurement of coal and their decision to move a no-faith motion against the minister. Marrikar explained how the crisis coupled with the growing diesel shortage could compel the government to increase electricity tariffs by as much as 18 percent next week. MP Marikkar said that they were eagerly waiting to see who backs Jayakody at the expense of the government during the upcoming vote on the no-faith motion.
There had been a previous case of a sitting minister being charged under the Bribery Act in respect of corruption perpetrated as a government servant. MP Rahman said that they intended to intensify the ongoing campaign against the government on the strength of the unprecedented corruption case and the outcome of the no-faith motion. “Of course, they have the numbers to defeat our no-faith motion. But, in doing so, they end up with egg on their face. That is the reality,” Rahman said, adding that those responsible for waste, corruption and irregularities whichever political parties they represented shouldn’t expect special status.
MP Rahman alleged that the CIABOC granted special status to Minister Jayakody. All those who had been indicted previously were first called to the CIABOC, recorded their statements and then arrested, handcuffed and produced in court. The media was afforded the opportunity to cover their humiliation, MP Rahman said, but in this case the powers that be paved the way for the accused to receive indictments directly from the Colombo High Court.
“Let us see whether the Bar Association of Sri Lanka responds to this development,” MP Rahman said.
By Shamindra Ferdinando
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