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SHOULD WE BE INFORMANTS TO BOOST TAX REVENUE?

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By Sanjeewa Jayaweera

The headline on page one of the Sunday Island of 07 January 2024 read, “CBSL Governor urges public to become informants to boost tax revenue.” The article was based on an interview with Governor Nandala Weerasinghe (NW) hosted by the President’s Media Centre. NW is quoted to have said, “If the public wants to reduce taxes, in the future, what I see is, while they pay their taxes, they should encourage others to pay taxes or inform the authorities on those who are not paying taxes.” He urges the public to become informants to broaden the tax net, which should reduce direct and indirect taxes. His is a clarion call for the citizens of Sri Lanka to discharge their civic responsibility, which is to pay their taxes and help the authorities to catch those who don’t. His logic can not be faulted, as tax evasion and avoidance is rampant in our country.

Despite a significant degree of displeasure with the government over tax hikes that have resulted in a great deal of hardship for most, there remains a question, at least in my mind, as to how many of the citizens will heed the Governor’s advice.

The question is, what would motivate a person to be an “informant.” While there are numerous reasons for a person to be an informant, in the case of reporting those evading paying taxes, the motive can only be good conscience due to civic duty and the belief that widening the tax net would, as NW states, hopefully, reduce the burden on those who pay their taxes. As far as I am aware, the Inland Revenue Department (IRD) does not offer a financial reward to an informant, although IRD officers receive financial rewards for such collections. Maybe the government should announce a reward scheme for informants.

The two main barriers that, in all probability, will not see too many of us becoming informants would be the significant erosion of civic responsibility among most of our citizens. The concept of doing the right thing by the country is missing in our DNA. Over several decades, our politicians have gotten us used to a regime of low taxes, subsidies, free education and health. There is a general belief that the state must be a provider without much thought regarding how the state can generate the needed funds.

Secondly, many do not see the need to pay taxes because they believe those who govern the country are corrupt. The fact that those responsible for corruption are not investigated and prosecuted for their ill-gotten gains further justifies the decision not to pay taxes. I think this segment of people is not opposed to the concept of paying taxes but refrains from doing so because they do not want to contribute to the fattening of the pockets of politicians.

The Significant Impact of Gotabaya Rajapaksas (GR) Tax Policy

Whilst there is a general belief and acceptance that the hare-brained tax policies of the government of GR contributed significantly to the country’s economic downfall, there is still not much appreciation or understanding of the devastating impact it has had on tax compliance by individuals and businesses.

I have reproduced below the statistics pertaining to the number of taxpayers registered with the IRD from the IRD Performance Reports of 2019 and 2022. The figures as of 31.12.2023 are based on a press conference of the Commissioner of IRD from the Presidential Media Centre as reported in the Sunday Island on 31 December 2023.

As can be seen, a significant number of registered taxpayers left the tax net after 31 December 2019. In my view, even the number of registered taxpayers as of 31 December 2019 was significantly less than it should be, with many not paying their taxes. To have legislation enabling most to leave the tax net is astonishingly negligent and foolish. Trying to re-induct those who exited from the tax net will take a lot of effort.

Value Added Tax (VAT)

The Increase in VAT to 18% from 15% and the imposition of VAT on several items previously exempted from VAT, like fuel, gas, and books, has caused a justifiable degree of anger among the public. In all probability, in terms of President Ranil Wickremesinghes’ chances of getting reelected, it might be the straw that broke the camel’s back.

In 2002, when VAT was first enacted, there were two VAT rates, with certain products and services at 10% and some at 20%. Over the years, the rates increased and decreased, but until the recent change, several essentials were exempt from VAT. The extent of exemptions was such that when I retired from employment about six years ago, nearly 40% of the turnover of supermarkets was from the sale of VAT-exempt items. It is a reflection of the array of products that were purchased by the customers deemed to be essentials that were in the exempt category.

In his interview, the Goveror also warned that some businesses may be engaging in VAT fraud. In countries where VAT works well, all businesses have to issue a VAT Invoice to customers, whether they are tax-paying businesses or members of the public. He stated, “In some places when you buy goods, they ask if you want the invoice without the VAT. If I agree to pay less (for the invoice without taxes), my tax burden will never ease.”

Unfortunately, in our country, the IRD regulates that VAT is not reflected in an invoice issued to members of the public. Most consumers do not even know how much VAT they pay when purchasing an item or service. The supermarket bill or the hospital bill does not show the amount of VAT that was paid.

In 2002, the IRD sent a circular to all companies instructing that VAT charges should not be shown in an invoice/bill issued to a member of the public. When I enquired about the logic of this from the IRD, they replied, “We do not want the consumers to see the amount of VAT they pay as this will make them angry!” This lack of transparency is undoubtedly unfair to the public who are bearing the tax and also contributes to fraud by unscrupulous businesses.

How Many of Us Will Be Informants?

Nandalal Weerasinghe is a public servant whom I admire. He has undoubtedly played a significant role in bringing professionalism to the CBSL Governor’s post and has contributed to somewhat stabilizing the economy. However, I believe his call for taxpayers to be informants will not be heeded, and I believe the government has many other tools to improve tax compliance and increase the collection of tax revenues without having to depend on informants.

The revenue collecting agencies like Customs, Excise, and the IRD are considered to be inefficient and corrupt. The public needs to be told what action is being taken to rectify and eliminate these. As I understand, only when a new bank account is opened will a Tax Identification Number (TIN) be requested. Why can’t the government regulate that all existing bank account holders must submit a TIN certificate to the Bank?

I have read a proposal by Verite Research recommending that the withholding tax (WHT) be increased to 10% from the current 5% on bank interest and that such a measure would boost tax revenue by Rs. 100 billion. It makes perfect sense as WHT is not an additional tax but a mechanism for collecting it in advance. The logic in the proposal is that many who receive bank interest are out of of the tax net.

A few eminently sensible proposals that I came across recently that could assist the tax authorities in monitoring tax compliance and arriving at an estimate of an individual’s income are to reintroduce the QR code system to purchase fuel so that the monthly spend can be monitored and also obtain from Uber and PickMe a list of top customers by spend. Similarly, airport departure cards submitted by Sri Lankans, along with their TIN number (disclosure of which should now be made mandatory), would also be a valuable source of information for tax authorities.

Whilst all these may sound like an invasion of individual freedom, they are all tools that the authorities can use to ensure greater tax compliance by individuals as opposed to depending on informants. The question is whether the government is serious about widening the tax net or is content with seeking more and more taxes from the same group of people who pay their taxes diligently and in full and increasing the contribution from indirect tax.

There needs to be greater debate and criticism on reducing unnecessary state expenditures and how taxpayer money should be spent. The expenditure incurred to maintain over 60 overseas missions, which, incidentally is double what Singapore maintains, is a case in point. Astonishingly, the government is considering incurring Rs 250 million to send a naval ship to the Red Sea to combat the threat to merchant vessel lines by Houthi rebels, joining the big boys to protect the key waterway for global trade.

This task is best left to countries that can afford such expenditure and not to a bankrupt nation like ours where critical life-saving drugs are not available at state hospitals. The logic justifying the expenditure will be as flawed as that given for spending Rs 200 million to celebrate Independence Day.

(The views expressed in the article are solely those of the author and do not necessarily reflect the opinions and views of any organization he may be associated with.)



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Challenges faced by the media in South Asia in fostering regionalism

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Main speaker Roman Gautam (R) and Executive Director, RCSS, Ambassador (Retd) Ravinatha Aryasinha.

SAARC or the South Asian Association for Regional Cooperation has been declared ‘dead’ by some sections in South Asia and the idea seems to be catching on. Over the years the evidence seems to have been building that this is so, but a matter that requires thorough probing is whether the media in South Asia, given the vital part it could play in fostering regional amity, has had a role too in bringing about SAARC’s apparent demise.

That South Asian governments have had a hand in the ‘SAARC debacle’ is plain to see. For example, it is beyond doubt that the India-Pakistan rivalry has invariably got in the way, particularly over the past 15 years or thereabouts, of the Indian and Pakistani governments sitting at the negotiating table and in a spirit of reconciliation resolving the vexatious issues growing out of the SAARC exercise. The inaction had a paralyzing effect on the organization.

Unfortunately the rest of South Asian governments too have not seen it to be in the collective interest of the region to explore ways of jump-starting the SAARC process and sustaining it. That is, a lack of statesmanship on the part of the SAARC Eight is clearly in evidence. Narrow national interests have been allowed to hijack and derail the cooperative process that ought to be at the heart of the SAARC initiative.

However, a dimension that has hitherto gone comparatively unaddressed is the largely negative role sections of the media in the SAARC region could play in debilitating regional cooperation and amity. We had some thought-provoking ‘takes’ on this question recently from Roman Gautam, the editor of ‘Himal Southasian’.

Gautam was delivering the third of talks on February 2nd in the RCSS Strategic Dialogue Series under the aegis of the Regional Centre for Strategic Studies, Colombo, at the latter’s conference hall. The forum was ably presided over by RCSS Executive Director and Ambassador (Retd.) Ravinatha Aryasinha who, among other things, ensured lively participation on the part of the attendees at the Q&A which followed the main presentation. The talk was titled, ‘Where does the media stand in connecting (or dividing) Southasia?’.

Gautam singled out those sections of the Indian media that are tamely subservient to Indian governments, including those that are professedly independent, for the glaring lack of, among other things, regionalism or collective amity within South Asia. These sections of the media, it was pointed out, pander easily to the narratives framed by the Indian centre on developments in the region and fall easy prey, as it were, to the nationalist forces that are supportive of the latter. Consequently, divisive forces within the region receive a boost which is hugely detrimental to regional cooperation.

Two cases in point, Gautam pointed out, were the recent political upheavals in Nepal and Bangladesh. In each of these cases stray opinions favorable to India voiced by a few participants in the relevant protests were clung on to by sections of the Indian media covering these trouble spots. In the case of Nepal, to consider one example, a young protester’s single comment to the effect that Nepal too needed a firm leader like Indian Prime Minister Narendra Modi was seized upon by the Indian media and fed to audiences at home in a sensational, exaggerated fashion. No effort was made by the Indian media to canvass more opinions on this matter or to extensively research the issue.

In the case of Bangladesh, widely held rumours that the Hindus in the country were being hunted and killed, pogrom fashion, and that the crisis was all about this was propagated by the relevant sections of the Indian media. This was a clear pandering to religious extremist sentiment in India. Once again, essentially hearsay stories were given prominence with hardly any effort at understanding what the crisis was really all about. There is no doubt that anti-Muslim sentiment in India would have been further fueled.

Gautam was of the view that, in the main, it is fear of victimization of the relevant sections of the media by the Indian centre and anxiety over financial reprisals and like punitive measures by the latter that prompted the media to frame their narratives in these terms. It is important to keep in mind these ‘structures’ within which the Indian media works, we were told. The issue in other words, is a question of the media completely subjugating themselves to the ruling powers.

Basically, the need for financial survival on the part of the Indian media, it was pointed out, prompted it to subscribe to the prejudices and partialities of the Indian centre. A failure to abide by the official line could spell financial ruin for the media.

A principal question that occurred to this columnist was whether the ‘Indian media’ referred to by Gautam referred to the totality of the Indian media or whether he had in mind some divisive, chauvinistic and narrow-based elements within it. If the latter is the case it would not be fair to generalize one’s comments to cover the entirety of the Indian media. Nevertheless, it is a matter for further research.

However, an overall point made by the speaker that as a result of the above referred to negative media practices South Asian regionalism has suffered badly needs to be taken. Certainly, as matters stand currently, there is a very real information gap about South Asian realities among South Asian publics and harmful media practices account considerably for such ignorance which gets in the way of South Asian cooperation and amity.

Moreover, divisive, chauvinistic media are widespread and active in South Asia. Sri Lanka has a fair share of this species of media and the latter are not doing the country any good, leave alone the region. All in all, the democratic spirit has gone well into decline all over the region.

The above is a huge problem that needs to be managed reflectively by democratic rulers and their allied publics in South Asia and the region’s more enlightened media could play a constructive role in taking up this challenge. The latter need to take the initiative to come together and deliberate on the questions at hand. To succeed in such efforts they do not need the backing of governments. What is of paramount importance is the vision and grit to go the extra mile.

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When the Wetland spoke after dusk

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Environmental groups and representatives

By Ifham Nizam

As the sun softened over Colombo and the city’s familiar noise began to loosen its grip, the Beddagana Wetland Park prepared for its quieter hour — the hour when wetlands speak in their own language.

World Wetlands Day was marked a little early this year, but time felt irrelevant at Beddagana. Nature lovers, students, scientists and seekers gathered not for a ceremony, but for listening. Partnering with Park authorities, Dilmah Conservation opened the wetland as a living classroom, inviting more than a 100 participants to step gently into an ecosystem that survives — and protects — a capital city.

Wetlands, it became clear, are not places of stillness. They are places of conversation.

Beyond the surface

In daylight, Beddagana appears serene — open water stitched with reeds, dragonflies hovering above green mirrors.

Yet beneath the surface lies an intricate architecture of life. Wetlands are not defined by water alone, but by relationships: fungi breaking down matter, insects pollinating and feeding, amphibians calling across seasons, birds nesting and mammals moving quietly between shadows.

Participants learned this not through lectures alone, but through touch, sound and careful observation. Simple water testing kits revealed the chemistry of urban survival. Camera traps hinted at lives lived mostly unseen.

Demonstrations of mist netting and cage trapping unfolded with care, revealing how science approaches nature not as an intruder, but as a listener.

Again and again, the lesson returned: nothing here exists in isolation.

Learning to listen

Perhaps the most profound discovery of the day was sound.

Wetlands speak constantly, but human ears are rarely tuned to their frequency. Researchers guided participants through the wetland’s soundscape — teaching them to recognise the rhythms of frogs, the punctuation of insects, the layered calls of birds settling for night.

Then came the inaudible made audible. Bat detectors translated ultrasonic echolocation into sound, turning invisible flight into pulses and clicks. Faces lit up with surprise. The air, once assumed empty, was suddenly full.

It was a moment of humility — proof that much of nature’s story unfolds beyond human perception.

Sethil on camera trapping

The city’s quiet protectors

Environmental researcher Narmadha Dangampola offered an image that lingered long after her words ended. Wetlands, she said, are like kidneys.

“They filter, cleanse and regulate,” she explained. “They protect the body of the city.”

Her analogy felt especially fitting at Beddagana, where concrete edges meet wild water.

She shared a rare confirmation: the Collared Scops Owl, unseen here for eight years, has returned — a fragile signal that when habitats are protected, life remembers the way back.

Small lives, large meanings

Professor Shaminda Fernando turned attention to creatures rarely celebrated. Small mammals — shy, fast, easily overlooked — are among the wetland’s most honest messengers.

Using Sherman traps, he demonstrated how scientists read these animals for clues: changes in numbers, movements, health.

In fragmented urban landscapes, small mammals speak early, he said. They warn before silence arrives.

Their presence, he reminded participants, is not incidental. It is evidence of balance.

Narmadha on water testing pH level

Wings in the dark

As twilight thickened, Dr. Tharaka Kusuminda introduced mist netting — fine, almost invisible nets used in bat research.

He spoke firmly about ethics and care, reminding all present that knowledge must never come at the cost of harm.

Bats, he said, are guardians of the night: pollinators, seed dispersers, controllers of insects. Misunderstood, often feared, yet indispensable.

“Handle them wrongly,” he cautioned, “and we lose more than data. We lose trust — between science and life.”

The missing voice

One of the evening’s quiet revelations came from Sanoj Wijayasekara, who spoke not of what is known, but of what is absent.

In other parts of the region — in India and beyond — researchers have recorded female frogs calling during reproduction. In Sri Lanka, no such call has yet been documented.

The silence, he suggested, may not be biological. It may be human.

“Perhaps we have not listened long enough,” he reflected.

The wetland, suddenly, felt like an unfinished manuscript — its pages alive with sound, waiting for patience rather than haste.

The overlooked brilliance of moths

Night drew moths into the light, and with them, a lesson from Nuwan Chathuranga. Moths, he said, are underestimated archivists of environmental change. Their diversity reveals air quality, plant health, climate shifts.

As wings brushed the darkness, it became clear that beauty often arrives quietly, without invitation.

Sanoj on female frogs

Coexisting with the wild

Ashan Thudugala spoke of coexistence — a word often used, rarely practiced. Living alongside wildlife, he said, begins with understanding, not fear.

From there, Sethil Muhandiram widened the lens, speaking of Sri Lanka’s apex predator. Leopards, identified by their unique rosette patterns, are studied not to dominate, but to understand.

Science, he showed, is an act of respect.

Even in a wetland without leopards, the message held: knowledge is how coexistence survives.

When night takes over

Then came the walk: As the city dimmed, Beddagana brightened. Fireflies stitched light into darkness. Frogs called across water. Fish moved beneath reflections. Insects swarmed gently, insistently. Camera traps blinked. Acoustic monitors listened patiently.

Those walking felt it — the sense that the wetland was no longer being observed, but revealed.

For many, it was the first time nature did not feel distant.

A global distinction, a local duty

Beddagana stands at the heart of a larger truth. Because of this wetland and the wider network around it, Colombo is the first capital city in the world recognised as a Ramsar Wetland City.

It is an honour that carries obligation. Urban wetlands are fragile. They disappear quietly. Their loss is often noticed only when floods arrive, water turns toxic, or silence settles where sound once lived.

Commitment in action

For Dilmah Conservation, this night was not symbolic.

Speaking on behalf of the organisation, Rishan Sampath said conservation must move beyond intention into experience.

“People protect what they understand,” he said. “And they understand what they experience.”

The Beddagana initiative, he noted, is part of a larger effort to place science, education and community at the centre of conservation.

Listening forward

As participants left — students from Colombo, Moratuwa and Sabaragamuwa universities, school environmental groups, citizens newly attentive — the wetland remained.

It filtered water. It cooled air. It held life.

World Wetlands Day passed quietly. But at Beddagana, something remained louder than celebration — a reminder that in the heart of the city, nature is still speaking.

The question is no longer whether wetlands matter.

It is whether we are finally listening.

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Cuteefly … for your Valentine

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Indunil with one of her creations

Valentine’s Day is all about spreading love and appreciation, and it is a mega scene on 14th February.

People usually shower their loved ones with gifts, flowers (especially roses), and sweet treats.

Couples often plan romantic dinners or getaways, while singles might treat themselves to self-care or hang out with friends.

It’s a day to express feelings, share love, and make memories, and that’s exactly what Indunil Kaushalya Dissanayaka, of Cuteefly fame, is working on.

She has come up with a novel way of making that special someone extra special on Valentine’s Day.

Indunil is known for her scented and beautifully turned out candles, under the brand name Cuteefly, and we highlighted her creativeness in The Island of 27th November, 2025.

She is now working enthusiastically on her Valentine’s Day candles and has already come up with various designs.

“What I’ve turned out I’m certain will give lots of happiness to the receiver,” said Indunil, with confidence.

In addition to her own designs, she says she can make beautiful candles, the way the customer wants it done and according to their budget, as well.

Customers can also add anything they want to the existing candles, created by Indunil, and make them into gift packs.

Another special feature of Cuteefly is that you can get them to deliver the gifts … and surprise that special someone on Valentine’s Day.

Indunil was originally doing the usual 9 to 5 job but found it kind of boring, and then decided to venture into a scene that caught her interest, and brought out her hidden talent … candle making

And her scented candles, under the brand ‘Cuteefly,’ are already scorching hot, not only locally, but abroad, as well, in countries like Canada, Dubai, Sweden and Japan.

“I give top priority to customer satisfaction and so I do my creative work with great care, without any shortcomings, to ensure that my customers have nothing to complain about.”

Indunil creates candles for any occasion – weddings, get-togethers, for mental concentration, to calm the mind, home decorations, as gifts, for various religious ceremonies, etc.

In addition to her candle business, Indunil is also a singer, teacher, fashion designer, and councellor but due to the heavy workload, connected with her candle business, she says she can hardly find any time to devote to her other talents.

Indunil could be contacted on 077 8506066, Facebook page – Cuteefly, Tiktok– Cuteefly_tik, and Instagram – Cuteeflyofficial.

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