News
Eran calls for action to ensure social protection
SJB MP Eran Wickremaratne yesterday said that the new tax policies introduced by the Prime Minister’s Office must be complemented with expenditure rationalisation to ensure social protection.Wickramaratne has said: The Prime Minister’s office announced new revenue policies that is a positive step towards reinstating the tax regime of the previous administration. While we welcome this reversal in policy, it must be noted that the initial tax cuts in 2019 by this administration was the first policy mistake that led to Sri Lanka’s first ever sovereign default and the economic crisis that has upended our country. Tax revenue dropped to a mere 7.7% of GDP by 2021 as a result of the disastrous tax cuts. Sri Lanka was cut out of the international capital markets as a result as credit ratings downgraded the country amidst the COVID-19 pandemic.
Sri Lanka has faced an issue of declining revenue despite continued growth for decades. This decline exacerbated an already precarious budget deficit and successive governments conveniently ignored this growing problem. Under the previous administration, we took this issue head-on with technical and financial assistance from the International Monetary Fund (IMF) as part of the Extended Fund Facility (EFF). As State Minister of Finance, I oversaw the implementation of the new Inland Revenue Act (IRA) as part of our fiscal consolidation program. One of the primary objectives of the IRA was to reduce room for discretion by ensuring transparent, objective tax criteria thereby reducing space for corruption and tax evasion. The Act minimized tax exemptions and loopholes thereby broad basing tax collection. It replaced open ended untargeted tax concessions with targeted investment related concessions. The Act also attempted to simplify the complex tax structure to facilitate compliance and increase penalties for non-compliance.
We are glad that the administration has finally heeded the call of the opposition parties, economists, and business leaders and reengaged with the IMF. However, the road to recovery is a long one and any more delays will only bring more hardship to the most vulnerable sections of our society. That is why these tax policies must be complemented with expenditure rationalization so that social protection mechanisms can be expanded. The need of the hour is to protect those on the brink of abject poverty and not to protect the rich from paying their fair share of taxes.
News
Environmentalists warn Sri Lanka’s ecological safeguards are failing
Sri Lanka’s environmental protection framework is rapidly eroding, with weak law enforcement, politically driven development and the routine sidelining of environmental safeguards pushing the country towards an ecological crisis, leading environmentalists have warned.
Dilena Pathragoda, Managing Director of the Centre for Environmental Justice (CEJ), has said the growing environmental damage across the island is not the result of regulatory gaps, but of persistent failure to enforce existing laws.
“Sri Lanka does not suffer from a lack of environmental regulations — it suffers from a lack of political will to enforce them,” Pathragoda told The Sunday Island. “Environmental destruction is taking place openly, often with official knowledge, and almost always without accountability.”
Dr. Pathragoda has said environmental impact assessments are increasingly treated as procedural formalities rather than binding safeguards, allowing ecologically sensitive areas to be cleared or altered with minimal oversight.
“When environmental approvals are rushed, diluted or ignored altogether, the consequences are predictable — habitat loss, biodiversity decline and escalating conflict between humans and nature,” Pathragoda said.
Environmental activist Janaka Withanage warned that unregulated development and land-use changes are dismantling natural ecosystems that have sustained rural communities for generations.
“We are destroying natural buffers that protect people from floods, droughts and soil erosion,” Withanage said. “Once wetlands, forests and river catchments are damaged, the impacts are felt far beyond the project site.”
Withanage said communities are increasingly left vulnerable as environmental degradation accelerates, while those responsible rarely face legal consequences.
“What we see is selective enforcement,” he said. “Small-scale offenders are targeted, while large-scale violations linked to powerful interests continue unchecked.”
Both environmentalists warned that climate variability is amplifying the damage caused by poor planning, placing additional strain on ecosystems already weakened by deforestation, sand mining and infrastructure expansion.
Pathragoda stressed that environmental protection must be treated as a national priority rather than a development obstacle.
“Environmental laws exist to protect people, livelihoods and the economy,” he said. “Ignoring them will only increase disaster risk and long-term economic losses.”
Withanage echoed the call for urgent reform, warning that continued neglect would result in irreversible damage.
“If this trajectory continues, future generations will inherit an island far more vulnerable and far less resilient,” he said.
Environmental groups say Sri Lanka’s standing as a biodiversity hotspot — and its resilience to climate-driven disasters — will ultimately depend on whether environmental governance is restored before critical thresholds are crossed.
By Ifham Nizam ✍️
News
IGP warns cops against presenting hampers or gifts to superiors
IGP Priyantha Weerasooriya has issued a letter, warning police officers against presenting gifts to senior officers during festivals or special occasions.
The letter, dated December 24, notes that some officers have reportedly offered hampers to senior officers during events such as the New Year and Sinhala and Hindu New Year, and some senior officers have accepted them.
The IGP has stressed that no officer should present hampers to him or any other senior police officer under any circumstances, and that senior officers must not accept such gifts.
Instead of in-person visits or physical gifts, officers have been instructed to convey their greetings through phone calls or WhatsApp messages, with personal visits deemed unnecessary.
News
Ravi K urges slash of politicians’ perks to fund national relief and reconstruction
NDF MP Ravi Karunanayake has called for the savings from MPs’ insurance coverage and allowances to be redirected to a relief fund for the public.
Addressing a press conference in Colombo on Thursday, Karunanayake stressed that the coverage reserved for MPs should be withdrawn and the funds transferred to a welfare and disaster relief fund. He mphasised that money allocated for double-cab vehicles for politicians should also be diverted to the national reconstruction fund at this critical time.
Highlighting the country’s ongoing economic and crisis situation, Karunanayake said that public representatives and senior state institutions must make significant sacrifices, and the perks and insurance benefits of MPs should be used for the welfare of the people.
He underlined that the task of rebuilding the country must start with the politicians themselves.
Commenting on state institution inefficiencies, he stated:
“Bonuses and allowances paid to officials of loss-making institutions such as SriLankan Airlines must be immediately stopped. Those funds should be redirected for the welfare of ordinary citizens currently under severe hardship—this is the responsibility of the government.”
Regarding Sri Lanka’s current foreign currency reserves, Karunanayake pointed out that, relative to their expenditure, there is no mechanism in place to replenish them—a serious problem. He urged that export performance be increased rapidly. He also suggested that renewable energy be used instead of oil-based electricity generation to save foreign exchange.
Karunanayake further revealed that, given the country’s ongoing disaster conditions, sufficient foreign aid has not yet been received. He recalled that the sixth tranche of the International Monetary Fund (IMF) was due to be received in December and stated that obtaining relief in installments would be more beneficial to the country than seeking emergency loans.
On dealing with the IMF, he added:
“Even if the IMF comes through under Ranil Wickremesinghe, we must ensure we engage properly and clearly with them. We must stick to our terms and execute them without confusion or compromise.”
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