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Sajith claims VAT hike will shrink economy
ECONOMYNEXT –Opposition and SJB leader Sajith Premadasa has accused the government of shrinking the economy through its proposal to increase value added tax (VAT) to 18 percent, claiming that it will reduce spending and investments.
Speaking at an event on Friday November 03, Premadasa said Sri Lanka is experiencing a shortage in both dollars and rupees.
“This is a problem. But it can be resolved through economic growth, not through economic shrinkage,” he said.
“This government is shrinking the economy. By increasing VAT, they’re trying to pickpocket the pittance in your hand,” claimed Premadasa.
The increase in VAT, he said, will result in a reduction in spending and investments as people will have less money to spend.
“A country cannot succeed by shrinking the economy. The economy must be grown,” he reiterated, claiming that a future government headed by the main opposition party the Samagi Jana Balawegaya (SJB) will bring about an “era of productivity and exports”.
Earlier in the week, during a discussion with university lecturers on Wednesday November 01, Premadasa claimed that the proposal to increase VAT by 18 percent in 2024 was a distortion of Sri Lanka’s tax formula.
President Ranil Wickremesinghe, meanwhile, defended the proposed VAT hike, amid confusion over how Sri Lanka plans to finance a proposed salary increase for state sector workers in the face of an ambitious 2.3-percent primary surplus target.
Speaking at the National Industry Excellence Awards 2023 on Wednesday, Wickremesinghe acknowledged that the decision to increase VAT was a challenging one, driven by the “need to maintain economic stability”.
The public, particularly the working and underprivileged classes, will have to bear the burden of this “regressive” tax hike, he said.The salary hike for state sector workers is to be proposed in the upcoming budget for 2024, with President Wickremesinghe also promising to request the private sector to increase salaries of employees following an unprecedented rise in commodity prices due to inflation triggered by 2022’s currency crisis.
There is also an ongoing campaign of agitation by state sector unions demanding a 20,000-rupee salary increase. Government spokespersons have not provided specifics on the salary increased that will be proposed in the budget.
Sri Lanka’s deal with the International Monetary Fund (IMF) includes an agreement to achieve a primary surplus of 2.3 percent of the gross domestic product (GDP) by 2025.
It is against this backdrop that President Wickremesinghe’s administration has increased personal income tax and now also plans to hike VAT by a significant margin, despite protests from unions and increased levels of migration.
News
Presidential pardons: Govt. studying Justice Thurairaja’s recommendations – Minister
By Shamindra Ferdinando
Justice and National Integration Minister Harshana Nanayakkara said yesterday that the Cabinet was studying a set of recommendations made by a Committee, led by retired Supreme Court judge Sithambarampillai Thurairaja, PC, regarding a systematic, fair and transparent mechanism for granting presidential pardons to convicted prison inmates.
Attorney-at-law Nanayakkara said so when The Island raised the issue in the wake of the ongoing controversy over prison authorities compelling General Secretary of the Bodu Bala Sena (BBS) Ven. Galadodaaththe Gnanasara to wear civilian attire when produced in court.
The Minister declined to elaborate but said the Cabinet of Ministers was yet to reach consensus on the recommendations. The NPP government, on 25 June 2025, appointed Thurairaja’s committee to study the provisions of the Article 34(1) of the Constitution, along with other statutory acts and judicial rulings.
Justice Thurairaja handed over his report to Justice and National Integration Ministry Secretary Ayesha Jinasena, PC.
The other members of the Committee were Deputy Minister of Mass Media Dr. Kaushalya Ariyarathne, Additional Secretary to the Ministry of Justice and National Integration Piyumanthi Peiris, Additional Solicitor General Nerin Pulle, Senior Deputy Inspector General of Police (SDIG) Legal Asanga Karawita, Chairperson of the Bureau of Rehabilitation Professor Wasantha Subasinghe, Specialist Dr. Chiththahari Abayanayake, former Acting Commissioner of Prisons Nishan Dhanasinghe, Acting Commissioner General of Prisons Prasad Hemantha Kumara, Senior Assistant Secretary (Legal) to the Ministry of Justice and National Integration Roshani Hettige, and Senior Assistant Secretary to the Ministry of Justice and National Integration Chandima Welikala.
The government called for guidelines regarding presidential pardon over a year before the Supreme Court rescinded, in September this year, the presidential pardon granted by Maithripala Sirisena to Ven Gnanasara serving a six-term of rigorous imprisonment for contempt of court. That pardon was granted in May 2019, the third controversial release by Sirisena during his presidency.
President Sirisena pardoned an ex-LTTE terrorist and also the Royal Park murderer Don Shramantha Jude Anthony Jayamaha, in 2016 and 2019, respectively. The Supreme Court, in June 2024, annulled the pardon granted to Jayamaha and ordered his arrest though he still remains free having fled overseas no sooner he was granted the pardon.
News
Mahinda and Shiranthi hospitalised
Former President Mahinda Rajapaksa was admitted to a private hospital yesterday morning (12).
Meanwhile, former First Lady Shiranthi Rajapaksa, who is currently in remand custody at Welikada Prison, has been admitted to the Cardiology Unit of the National Hospital in Colombo.
News
Monks must be allowed to wear robes when produced in court: Mahanayake Theras
“JVP did not bomb Dalada Maligawa; it seized weapons from security personnel stationed there”
By S. K. Samaranayake
Most Venerable Tibbotuwawe Sri Sumangala Mahanayake Thera of the Malwathu Chapter yesterday said the President has assured that a final decision on new prison regulations would be taken withn two weeks and until then whenever bhikkhus were produced before court, they must be allowed to wear robes. The monk said the Mahanayaka Thera has written to the Commissioner General of Prisons about their decision.
The Mahanayake Thera said so when SJB MPs, led by General Secretary Ranjith Madduma Bandara, paid a courtesy call on him.
During the meeting, the Mahanayake Thera expressed the following views:
“Currently, a massive campaign is underway on social media to insult and disrespect the Maha Sangha. Some individuals carrying out these attacks are not linked to any political party. We expected the government to intervene and completely put an end to this, which is entirely possible. Laws should be introduced to control this. The insults directed at monks must be stopped immediately. We cannot accept these acts, no matter who commits them. We even saw fabricated images circulated on social media depicting the President in robes and monks in lay attire. Such disrespect is completely unacceptable and must be curbed.
“We also know that some individuals currently representing Parliament have past ties to the Sasana. All we ask is for the mudslinging and insults targeting monks to be halted immediately. Certain elements continue to spread falsehoods about the government. Before this administration came to power, they claimed temples were finished, Buddhism was over, and the Perahera wouldn’t take place. But didn’t they just conduct the Kandy Perahera brilliantly?
“Various people are even complaining about the Casket (Karanduwa) of the Dalada Maligawa. In particular, we saw former Diyawadana Nilame Niranjan Wijeratne criticising the matter. Much of what he said was false. During his tenure, the previous casket was coated in lacquer, which nobody talks about. Replacing the old brass casket with a golden casket is a very commendable step what is wrong with that? Just as items from royal eras are retired and modern equivalents are put to use, the older casket has been given due respect and securely housed. There is no issue there. Some people claim the JVP bombed the Maligawa too. Nothing of the sort happened; it was LTTE terrorists who bombed the temple. The JVP merely seized weapons from the security personnel stationed there.”
Meanwhile, speaking during the visit, SJB General Secretary Ranjith Madduma Bandara and other parliamentarians charged that the current administration is laying the groundwork to turn the country into a secular state.
“It is impossible to introduce new laws for monks within two weeks; it takes much longer,” Bandara noted. “The President has the authority to issue an interim directive that any monk presented to court must appear in robes, but he chooses not to do so because he does not want to. Everyone who speaks out against this is targeted and smeared on social media, driven by a network of 2,000 to 3,000 social media operators tied to the government who attack and insult me. Even during the case of Father Mathew Peiris, who committed murder, his clerical cassock was not stripped. Inside the prison religious leaders were respected.
“The public base of this current government is rapidly eroding as a result of their actions, which is why they are attempting to strike at Buddhism to secure minority votes. Any government is constitutionally bound to protect the Buddha Sasana. We will not allow them to destroy Buddhism and turn this country secular; we will defend Buddhism to the very last, and all Sri Lankans must step forward for this cause.”
Following their meeting at the Malwathu Chapter, the delegation proceeded to the Asgiri Mahavihara, where they met the Mahanayake Thera of the Asgiri Chapter, Most Venerable Warakagoda Sri Gnanaratana Mahanayake Thera, and Anunayake Venerable Narampanaye Sri Ananda Thera to brief them on the current situation.
The delegation included SJB Parliamentarians Ranjith Madduma Bandara, Kins Nelson, Sujeewa Senasinghe, A.C. Alahapperuma, Rohana Bandara, Suranga Ratnayake, Rohini Kaviratne, Chandrani Kirielle, alongside prominent figures such as Lakshman Kiriella, Wasantha Yapa Bandara, Ranjith Aluwihare, and Professor Upul Dissanayake.
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