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Tissa Vitarana opposes going to IMF at All Party confab

Published

4 years ago

2022/03/27

Calls for 50% tax on income between Rs. 400,000 and Rs. 1 million

I am glad that this conference is being held when Sri Lanka is faced with one of the worst economic crises since independence. Before getting onto my speech, I wish to thank the President and Prime Minister for holding this meeting. Further, the presence of members of the Opposition is also welcome. This is a signal of the readiness of the Opposition to cooperate with the Government to overcome the crisis, as one nation.

However, I strongly disagree with the view that both the Government and the Leader of the Opposition hold that the solution lies only through the IMF (International Monetary Fund). The IMF solution will only lead to a further loss of dollars through the unrestricted opening of the economy to more imports and also lead to increased debt due to taking further loans.

It would have been better to have had an earlier meeting of the Government party leaders so that agreement on policy matters could have been reached among ourselves in the Government. I would support the view of the Tamil speaking MP’s that national unity is essential and could be achieved by fully implementing the 13th Amendment to the Constitution.

Due to shortages and high prices of basic essentials, most of them imported, like fuel (oil and gas), medicines and food, life has become a misery for most of the people (perhaps other than the super-rich). The knock on effects e.g. shortage of electricity, have added to the misery. The root cause is the shortage of US dollars (USD). The Foreign Exchange Reserve which was maintained at USD 7-8 Billion has come down to less than USD 1 Billion. This has led to our Fitch Rating dropping to 2C (1C means bankruptcy). The real value of the rupee has dropped from 200 to a dollar, to 285 per dollar. This has led to the non-acceptance of Letters of Credit (LC) from Sri Lanka by foreign suppliers. As a result it is only after payment in dollars that goods are sent from abroad, which means a delay of several months. But due to the shortage of dollars in the country this cannot be done even in time.

A similar crisis occurred during the 1970-75 SLFP/LSSP/CP Coalition Government. With the formation of OPEC, oil prices rose by more than five times and a ton of sugar went up from £ 42 to £ 600. The JVP insurgency damaged the economy and added to the cost to the country.

Dr.N.M.Perera, then Finance Minister, overcame the crisis and raised the Foreign Reserves from USD 1.3 Billion in 1970 to USD 2.7 Billion by 1975, thereby stabilizing the economy and providing sufficient US dollars for our essential imports. He strictly banned non-essential imports thereby reducing the foreign exchange deficit, which is the main cause of the lack of dollars. He encouraged the development of local industry and agriculture.

Since 1977 the UNP came to power with its neoliberal economic policies. These have been operative since then. These were designed by the USA (led by Prof. Friedman of the Chicago School of Economics), to continue to exploit the world’s resources (specially countries of the Third World, like Sri Lanka) to the advantage of the USA and its imperialist allies in the post-colonial era. This open economy, promoted by the WTO (World Trade Organization), which the UNP and its allies in Sri Lanka strongly support, led to unlimited import of luxury and other non-essential goods. The result was that the foreign exchange deficit was at time double the export income.

This ate into our reserves and also led to massive foreign borrowing. Successive Governments, the UNP more than the SLFP, went into both short and long term borrowing, often at a high interest rate. Last year alone Sri Lanka had to pay USD six billion for debt servicing. The question then is how can we pay this amount when our reserves are so low.

The only way out is to get a moratorium from our creditors, that is ask for time to delay the payments for a period of about five years. This would mean for this period we will have USD 30 Billion, to put our economy right and also immediately fund the import of essentials, with the restoration of LCs. This has been done by several countries in the course of past crises. I am told that Argentina and Uruguay among other countries have done so this time too.

Our solution should ensure that we do not increase our debt, a root cause of our problems. This would be the inevitable outcome of turning to the IMF for assistance. Further the IMF policy of unlimited imports would put us into deeper debt.

Concrete measures should be taken to rationalize our import structure. Nearly 25% of our dollars is allocated to the import oil and gas. The latter requirement can be effectively minimized by domestic bio-gas production using cookers produced by the NERD institution. Fuel should be rationed giving priority to public transport. There should be a total ban on non-essential imports. Other selected items should be subject to heavy taxes.

This is a better solution than the issuing of permits, which leads to corruption. Foreign inputs required for industrial production for exports should be permitted. Promotion of science, technology and research for value added industries using local raw material should also be supported.

The tax system should be drastically revised as indicated in Table 1.

As an incentive, company taxes should remain low only for value added industries, that use local or foreign raw materials, especially for export and import substitution. Unfair exploitation of local human and material resources must be minimized, especially for the local market. Incentives must be given for tourism and remittances from abroad. Indirect taxes must be minimized.

The adoption of a floating exchange rate system is a progressive step in the present context. The public and private loss making institutions can be made profitable like in Kerala, India by utilizing the “Solidarity Principle”. Here the ownership of an enterprise is given to the employees and the profit is shared equally among them. Stop taking inflated foreign loans. The above changes should be associated with a wage-price freeze (which led to the success of Roosevelt’s “New Deal”).

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Mechanism to be established involving university academics and experts for Education Reforms – President

Published

1 hour ago

2026/01/22

Priyan

President Anura Kumara Dissanayake stated that the Government is taking steps to establish a comprehensive mechanism, supported by an appropriate legal framework, to bring together university academics, experts and all relevant parties in order to resolve issues arising during the implementation of education reforms.

The President made these remarks during a discussion with the Federation of University Teachers’ Associations (FUTA) held on Wednesday (21) morning at the Presidential Secretariat.

During the discussion, FUTA members emphasized the challenges encountered while trying to implement educational reforms through a framework established by the National Institute of Education, in line with the current laws and regulations.

They further emphasized that while their association acknowledges the need for new education reforms, the urgency of such reforms is greater for students in rural schools than for those in urban schools.

The Federation of University Teachers’ Associations further stated that they appreciate the decision taken by the Government, under the leadership of the President, to address the issues arising from education reforms and affirmed their readiness to contribute to this process.

As a continuation of the previous discussion, proposals addressing the challenges faced by academics within the university system, along with possible solutions, were presented to the President. In response, the President emphasized that the Government would take all possible measures to safeguard the university system and strengthen education.

The discussion also covered proposed amendments to the Universities Act.

President Anura Kumara Dissanayake noted that, in the aftermath of the recent disaster, the Government has been effectively implementing a nationwide rebuilding programme, addressing economic stability, development and all critical sectors. The President also called upon university academics to actively support these reconstruction efforts.

The meeting was attended by Minister of Ports and Civil Aviation, Anura Karunathilaka, as well as representatives of the Federation of University Teachers’ Associations, including its President, Prof. P. R. Weerathunga, Vice President M. A. M. Sameem and Secretary Charudaththe Ilangasinghe.

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New integrated framework to bring all stakeholders together to safeguard and rebuild Central highlands – President

Published

1 hour ago

2026/01/22

Priyan

President Anura Kumara Dissanayake stated that the isolated functioning of institutions responsible for construction and land management, agriculture, livestock and environmental conservation has posed challenges in restoring the Central Highlands, which were devastated by Cyclone Ditwah. The President further noted that efforts are underway to establish a new integrated framework, bringing together all relevant parties to swiftly safeguard and rebuild the Central Highlands

The President made these remarks during a discussion held on Wednesday (21) at the Presidential Secretariat with representatives from the Asian Development Bank (ADB), the United Nations Development Programme (UNDP) and relevant government and private sector institutions, focusing on securing the Central Highlands and restoring forest plantations.

It was emphasized that nearly 4,000 landslides have occurred in the Central Highlands due to Cyclone Ditwa and that prolonged unauthorized construction, cultivation activities and lack of proper maintenance have contributed to this situation. The discussion also stressed the urgent need for a national policy to secure the Central Highlands and ensure its preservation for future generations.

The discussion also addressed the need for an Authority empowered under the relevant legislation to oversee these activities and President Anura Kumara Dissanayake instructed officials to expedite the implementation.

Representatives from the Asian Development Bank (ADB) and the United Nations Development Programme (UNDP) emphasized the necessity of maintaining a dedicated financial fund for these initiatives and confirmed their full support to Sri Lanka for the restoration of the Central Highlands.

Representatives who attended included Country Operations Head, ADB Sri Lanka Resident Mission, Cholpon Mambetova, Senior Agricultural and Natural Resources Specialist at the ADB Sumith Pokhrel and Assistant Project Officer Krishanthi Dabare, UNDP Resident Representative in Sri Lanka Azusa Kubota and programme representatives Wageesha Gunasekara and Sugandhi Samarasinghe.

Also participating were Commissioner-General of Essential Services and Secretary to the Ministry of Plantation and Community Infrastructure, Prabath Chandrakeerthi, Secretary to the Ministry of Housing, Construction and Water Supply, Engineer L. Kumudu Lal Bogahawatta along with senior officials from the relevant Ministries and heads of other government and private institutions.

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ICC T20 World Cup Trophy tour in Sri Lanka launched under President’s patronage

Published

1 hour ago

2026/01/22

Priyan

The official tour showcasing the ICC T20 World Cup trophy, which will be jointly hosted by India and Sri Lanka in 2026, was formally inaugurated on Wednesday (21) at the Presidential Secretariat under the patronage of President Anura Kumara Dissanayake.

The trophy will be displayed in several major cities across the island from Wednesday 21st until Saturday 24th, over a period of four days. Cricket fans will have the opportunity to see the golden trophy up close during the Sri Lanka vs England One-Day International match at the R. Premadasa International Stadium in Colombo.

Subsequently, plans are in place to take the trophy to the cities of Kandy, Dambulla and Jaffna, providing cricket enthusiasts in those regions as well with the opportunity to take commemorative photographs with the World Cup trophy and view it. The primary aim of this tour is to generate excitement and build spectator interest in the lead-up to hosting a World Cup tournament in the country.

The ICC Men’s T20 World Cup is scheduled to be held from 7th February to 8th March 2026 co-hosted by Sri Lanka and India. This World Cup is the largest tournament Sri Lanka will host since the T20 World Cup held in 2012.

The tournament schedule was revealed on 25th November 2025 in India, where the International Cricket Council (ICC) selected the R. Premadasa International Stadium in Colombo, the Pallekele International Stadium and the Colombo SSC Ground as the venues for matches in Sri Lanka.

Accordingly, 8 matches are scheduled at the R. Premadasa International Stadium, 5 matches at the Colombo SSC Ground and 7 matches at the Pallekele International Stadium.

Twenty countries are set to participate in this tournament. Twenty matches of the tournament are scheduled to be held in Sri Lanka, with all matches involving the Pakistan team to be played in Sri Lanka. Furthermore, a special feature is that if the Pakistan team qualifies for the semi-finals and the final, Sri Lanka will also host those two matches.

In that event, the final will be held at the R. Premadasa International Stadium in Colombo, increasing the number of matches scheduled for Sri Lanka to 22.

Apart from the host nations Sri Lanka and India, Test-playing nations England, South Africa, New Zealand, Pakistan, West Indies, Bangladesh, Ireland, Zimbabwe and Afghanistan will be represented in this tournament. Additionally, the United States of America, Canada, Italy, the Netherlands, Namibia, Nepal, Oman and the United Arab Emirates are the other contributing countries.

The T20 World Cup to be held in Sri Lanka at the beginning of 2026 can be considered an excellent opportunity to deliver effective value to the country’s economy, tourism industry, sports development, international promotion and society.

In particular, the arrival of teams, media groups and thousands of spectators, including foreign tourists, will generate significant foreign exchange earnings for the country. It is also expected to create short and long-term employment opportunities in various sectors including hotel and food & beverage businesses, transport services and technical and operational services.

By Sri Lanka hosting this tournament, long-term benefits such as increased opportunities for new investments as Sri Lanka is recognised worldwide as a tourist destination, the identification of Sri Lanka as a year-round sports tourism hub and the strengthening of Sri Lanka’s international profile leading to an enhancement of the country’s value, will be attained.

Minister of Youth Affairs and Sports, Sunil Gamage, Deputy Minister of Sports, Sugath Tilakaratne, Director General of Sports, S. Achchudan, Sri Lanka Cricket President, Shammi Silva along with the Executive Committee and a group including Sri Lanka’s T20 World Cup team captain Dasun Shanaka and Head Coach, Sanath Jayasuriya were also present at the occasion.