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Shocking lapses in revenue collection revealed

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COPA concerned over Rs. 7.5 bn spent on upgrading integrated computer system 

By Shamindra Ferdinando 

Parliamentary watchdog-COPA (Committee on Public Accounts), in its latest report has highlighted significant loss of revenue and misuse of public money caused by the failure on the part of the Department of Inland Revenue, Sri Lanka Customs and Department of Excise to streamline their operations.  

COPA Chairman Prof. Tissa Vitarana presented his first report to Parliament on July 20. The COPA consists of 22 members representing both the government and the Opposition. The COPA report dealt with the Auditor General’s reports on Department of Inland Revenue, Sri Lanka Customs and Department of Excise. 

Pointing out that as at July 31, 2020, there had been 281 vacancies (10 percent of the approved cadre), the all-party committee asserted that failure to fill 183 senior level vacancies in the Inland Revenue Department would hinder the smooth functioning of the institution.  

COPA has questioned the failure on the part of Sri Lanka Customs to recruit a suitable person to the post of Legal Officer. The vacancy hadn’t been filled in spite of the Management Services Department approving the creation of the post, it has pointed out. 

COPA has observed that the Excise Department, too, in spite of receiving approval from the Management Services Department on June 30, 2020 failed to recruit a legal officer though it being an essential post. There had been 35 senior and 66 tertiary level positions among altogether 292 vacancies in what the watchdog committee called a vital part in overall revenue collection mechanism. 

Asserting that the three above-mentioned institutions were responsible for the collection of 90 percent of government revenue, COPA alleged that the continuing failure to streamline operations contributed to corruption. It faulted these institutions for allowing what it called private parties to misappropriate public funds.

Former COPA Chairman and incumbent member lawmaker Lasantha Alagiyawanna yesterday (28) said that tangible measures were required to ensure proper collection of revenue. Acknowledging irregularities had undermined the whole process, the SLFPer explained how those responsible for revenue collection manipulated the system for their benefit at the expense of the national economy.

State Minister of Co-operative Services, Marketing Development and Consumer Protection Alagiyawanna said that the continuing registration of vehicles imported for a particular purpose as dual purpose vehicles was nothing but a crime. Lawmaker Alagiyawanna said that in spite of interventions made by parliamentary watchdogs, COPA, COPE (Committee on Public Enterprises) and COPF (Committee on Public Finance) the situation remained quite unsatisfactory.

Responding to another query, lawmaker Alagiyawanna said that relevant ministers should take remedial measures.

COPE member Dr. Harsha de Silva yesterday said that the government revenue was now at a paltry 9.2 percent of the GDP (Gross Domestic Production). One-time non-cabinet minister de Silva said that perhaps it was one of the lowest in the world. 

Vitarana’s outfit has recommended urgent amendments to Acts pertaining to the Inland Revenue Department as well as Sri Lanka Customs to facilitate the revenue collection process. As regards Sri Lanka Customs and Motor Traffic Department, COPA underscored the urgent need to amend relevant Acts as existing laws seriously hindered revenue collection procedures. COPA also called for modification of existing laws pertaining to the Excise Department to enable the institution to achieve its primary objectives.

Pointing out that a vast sum of money had been spent on developing integrated computer systems, COPA underscored revenue collection mechanisms that couldn’t be perfected without the availability of such methods. COPA called for the development of what it called a National Coordination Plan meant for strengthening of the revenue collection process.

COPA revealed that a staggering Rs 4 bn had been spent so far on modifying/updating the system at the Inland Revenue and a further Rs 3.5 bn was required to complete the work. The 22-member COPA has expressed serious concern over the large amount of funding made available to still unfinished project.

 

 

 



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Second lot of luxury and decommissioned vehicles owned by the Presidential Secretariat sold

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The second phase of the auction to sell luxury and decommissioned vehicles owned by the Presidential Secretariat was successfully concluded today (15 May), with the auction taking place as scheduled.

A total of 26 vehicles, previously allocated to former Ministers and the former President, to their advisors and staff appointed under Article 41(1) of the Constitution during their tenure, were listed for sale. Out of these, 17 vehicles were successfully sold today.

The auctioned vehicles included:

1 BMW car
2 Ford Everest SUVs
1 Hyundai Terracan SUV
2 Land Rover SUVs
1 Mitsubishi Montero
3 Nissan Patrol vehicles
2 Nissan brand cars
1 Porsche Cayenne
5 SsangYong Rexton SUVs
1 Toyota Land Cruiser Sahara
6 V8 vehicles
1 Mitsubishi Rosa air-conditioned bus

With the aim of reducing government expenditure and promoting fiscal responsibility, a decision was taken to auction the vehicles belonging to the Presidential Secretariat.

There was a high demand for the purchase of these vehicles and over Rs. 200 million in revenue was generated through their sale at the auction held today.

There was significant interest in the auction, with 108 bidders participating.

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President approves establishment of Anti-Corruption Investigation Units in Provincial Councils and LG Institutions

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President Anura Kumara Disanayake has approved the establishment of dedicated anti-corruption investigation units within provincial councils and local government institutions, aiming to combat corruption and administrative inefficiencies. The decision follows a request by provincial governors during a high-level discussion held at the Presidential Secretariat today (15).

During the meeting, President Disanayake emphasised that provincial governors bear the primary responsibility for driving development initiatives and ensuring accountability within their respective provinces. He noted, “Strengthening governance mechanisms is critical to addressing systemic challenges and achieving equitable progress.”

Among the key decisions taken was the creation of anti-corruption investigation units modelled after similar bodies operating at the ministerial level. These units will be tasked with monitoring financial transactions, investigating irregularities and enforcing transparency in development projects. The initiative aligns with the government’s broader agenda to eliminate malpractice in public institutions.

The discussion also highlighted that provincial councils have received three times the financial allocations compared to the previous fiscal year. However, governors raised concerns regarding delays and bureaucratic hurdles in utilising these funds effectively. In response, President Disanayake directed officials to streamline procedures and adopt results-oriented mechanisms to accelerate infrastructure development.

Persistent obstacles in upgrading provincial infrastructure such as road networks, healthcare facilities and utility services, were also discussed. The President pledged to implement practical solutions to address these challenges and urged governors to prioritise projects that deliver tangible benefits to citizens.
The Governors further stressed the need for improved coordination between provincial councils and central ministries to avoid duplication of efforts. Acknowledging these concerns, President Disanayake underlined the importance of collaborative governance to ensure efficient resource allocation.

“While increased funding is a positive step, its prudent management is non-negotiable. Provincial authorities must ensure every rupee is accounted for and spent efficiently,” he asserted.

The meeting was attended by several senior officials, including Dr. Nandika Sanath Kumanayake, Secretary to the President, Kapila Janaka Bandara, Senior Additional Secretary to the President, Provincial Governors: Hanif Yusuf (Western Province), Sarath Bandara Samarasinghe Abayakon (Central Province), Bandula Harischandra (Southern Province), Tissa Kumarasiri Warnasuriya (North Western Province), Wasantha Kumara Wimalasiri (North Central Province), Nagalingam Vedanayagam (Northern Province), Prof. Jayantha Lal Ratnasekera (Eastern Province), Champa Janaki Rajaratne (Sabaragamuwa Province) and Kapila Jayasekara (Uva Province).

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Seven new envoys to Sri Lanka present credentials to the President

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Seven newly appointed foreign ambassadors to Sri Lanka presented their credentials to President Anura Kumara Disanayake today (15) at the Presidential Secretariat.

The new ambassadors represent the State of Israel, the Argentine Republic, the Republic of Zimbabwe, the Republic of the Philippines, the Republic of Tajikistan, the Kingdom of Cambodia, and the Kingdom of Denmark.

Accordingly:

*  Mr. Mariano Agustin Caucino has been appointed as the Ambassador-designate of the Argentine Republic, based in New Delhi.
*  Ms. Stella Nkomo has been appointed as the Ambassador-designate of the Republic of Zimbabwe, based in New Delhi.
*  Mr. Reuven Javier Azar has been appointed as the Ambassador-designate of the State of Israel, based in New Delhi.
* Ms. Nina P. Cringlet has been appointed as the Ambassador-designate of the Republic of the Philippines, based in Dhaka.
*  Mr. Lukmon Bobokalonzoda has been appointed as the Ambassador-designate of the Republic of Tajikistan, based in New Delhi.
* Ms. Rath Many has been appointed as the Ambassador-designate of the Kingdom of Cambodia, based in New Delhi.
*  Mr. Rasmus Kristensen has been appointed as the Ambassador-designate of the Kingdom of Denmark, based in New Delhi.

Minister of Foreign Affairs, Foreign Employment and Tourism, Vijitha Herath, along with the Secretary to the President, Dr. Nandika Sanath Kumanayake, were also present at the occasion.

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