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Sumanthiran questions rationale behind raising VAT to 18 % instead of raising withholding tax 

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Sumanthiran

By Saman Indrajith

TNA Parliamentarian M.A. Sumanthiran said yesterday that the government had agreed to provide copies of the Technical Assistance Reports compiled by the International Monetary Fund (IMF) to Opposition party leaders on request.

Sumanthiran, who was the only member of the Opposition to attend a multi-party discussion with the IMF, on the invitation of President Ranil Wickremesinghe, said that he had accepted the invitation extended by the President to Opposition party leaders.

“I raised some of our concerns. Firstly, the absence of transparency. The IMF provides Technical Assistance Reports to the government. These reports contain analysis on why these recommendations are made. They have so far not been made public. Today, it was agreed that copies would be provided to me and to other Opposition party leaders, too, on request,” Sumanthiran told The Island.

“With this we can see if these recommendations have an analytical basis or not. Upon studying the reports, we can say whether to support the IMF programme or not. We can see at the moment that the IMF programme is not beneficial to the poor of this country.” Sumanthiran said that he had questioned the rationale behind certain revenue-raising measures, such as the decision to increase the VAT to 18% instead of raising the withholding tax rate, which would have had a more immediate impact on revenue generation.

Sumanthiran said that he had highlighted the government’s failure to address 15 prior action items identified in the IMF programme, which were supposed to be completed by February 2024. In response, the government cited discussions with the IMF that resulted in time extensions for these actions,

The main Opposition SJB and the JVP/NPP boycotted the meeting.

Meanwhile in a statement, the President’s Media Division said that during the discussions, Secretary to the Treasury Mahinda Siriwardana had provided insights into the ongoing negotiations with bilateral creditors, commercial creditors, and ISBs, with an optimistic outlook towards completing the process by the end of June this year.

Central Bank Governor Dr. Nandalal Weersinghe highlighted the government’s efforts to adhere to the recommendations outlined in the Governor’s diagnostic report, emphasizing the commitment to a structured roadmap for implementation.

President Wickremesinghe affirmed the government’s willingness to make these technical assistance reports available to the members of Parliament and invited Sumanthiran and other Opposition members to attend a meeting and engage with the IMF to further discuss the proposals.

In response, Sumanthiran expressed his readiness to participate constructively in the dialogue, pledging support for constructive measures while highlighting areas that warrant attention and rectification.

Also present at the meeting with President Ranil Wickremesinghe were Prime Minister Dinesh Gunawardena, Leader of the House Susil Premajayantha, State Ministers of Finance Shehan Semasinghe and Ranjith Siyambalapitiya, Senior Advisor to the President on National Security and Chief of Presidential Staff Sagala Ratnayaka and Secretary to the President Saman Ekanayake, according to the PMD.



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Cabinet approves establishment of Activity-Based Learning Centers at Regional Level for Commerce Education

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The importance of establishing learning centers at regional level has been identified in order to achieve multiple objectives, including the development of teachers, utilization as a hub for new technology and resource sharing, enhancement of vocational and higher education opportunities, efficient utilization of limited physical and human resources, integration of new technologies with subject-specific knowledge,
sharing of limited resources to ensure equitable access to education, and development of skills in line with regional potential, thereby contributing to the qualitative development of commerce education.

Accordingly, the project to establish 100 activity-based learning centers for the enhancement of commerce education has been included in the Public Investment Programme as a major investment project in general education, with an estimated total cost of Rs. 289 million, to be implemented during the period 2026–2028.

Having considered the proposal submitted by the Prime Minister, in her capacity as the Minister of Education, Higher Education and Vocational Education, Cabinet approval was granted to establish and operationalize 25 regional centres covering all 25 districts.

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M/s. Resources Development Consultants (Pvt) Ltd appointed to prepare Feasibility Study and detailed plans for the extension of the Kelani Valley Railway Line from Avissawella to Ratnapura

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Approval was granted at the Cabinet Meeting held on 21-10-2025 to carry out a feasibility study and prepare detailed plans for the extension of the Kelani Valley Railway Line from Avissawella to Ratnapura.

The calling of expressions for this purpose has been conducted under the national Competitive Procurement Procedure, and 8 bidders have submitted their Expression of Interest in that respect.

Following the evaluation of technical proposals submitted by the short-listed bidders, and financial proposals of the 4 eligible institutions have been opened. Subsequent to the evaluation of the aforementioned financial proposals, the Consultant Procurement Committee has recommended awarding
the consultancy for the feasibility study and preparation of detailed plans for the extension of the Kelani Valley Railway Line from Avissawella to Ratnapura to M/s. Resources Development Consultants (Pvt) Ltd at a total cost of Rs. 356.22 million (exclusive of taxes).

Accordingly, the Cabinet of Ministers has approved the resolution furnished by the Minister of Transport, Highways and Urban Development to award the said procurement in line with the above recommendation.

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Import and Export (Control) Regulations No. 01 of 2026, issued under the Imports and Exports (Control) Act, No. 1 of 1969, to be submitted for concurrence of the Parliament

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The Special Import Licence Regulations No. 01 of 2023, published in Extraordinary Gazette No. 2312/77 dated 01-01-2023, prohibit the importation of retreaded tires, including those used for aircraft.

However, the Ministry of Ports and Civil Aviation has made a request that an exemption be granted to permit the importation of retreaded aircraft tires classified under HS Code 4012.13 for Sri Lankan Airlines.

Taking into consideration essential operational and safety requirements, it has been decided to permit the importation of retreaded aircraft tires classified under HS Code 4012.13, subject to the recommendation of the Ministry of Ports and Civil Aviation, provided that such tires comply with the requirements specified by internationally recognized aviation authorities and are imported by Sri Lankan airline operators engaged in international air services under a duly executed supply agreement between the airline and a certified international supplier.

Accordingly, the Cabinet of Ministers has approved the resolution furnished by the President, in his capacity as the Minister of Finance, Planning and Economic Development, to submit the Import and Export (Control) Regulations No. 01 of 2026, published in Extraordinary Gazette No. 2481/02 dated 23-03-2026 under the provisions of the Imports and Exports (Control) Act, No. 1 of 1969, for the concurrence of the Parliament.

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