Connect with us

News

Gammanpila says country is in ‘debt trap’

Published

on

‘Revival of tourism and foreign remittances not sufficient to overcome daunting challenge’

By Shamindra Ferdinando

Energy Minister Udaya Gammanpila, who is also the leader of the Pivithuru Hela Urumaya has contradicted the much repeated SLPP government claim that the global Covid-19 epidemic caused the current financial crisis.

Attorney-at-law Gammanpila emphasised that the ‘economic time bomb’ had exploded about five years earlier than he anticipated as a result of the Covid-19 eruption. The Minister went onto emphasize that the country was caught in a debt trap.

Minister Gammanpila said so at the inauguration of the National Trade Exhibition at the BMICH on Feb 06 with the participation of Prime Minister Mahinda Rajapaksa and Industries Minister Wimal Weerawansa.

The PHU is on a collision course with the SLPP over the legal challenge mounted in the Supreme Court in late last year against an agreement between Sri Lanka and the US based Company New Fortress Energy.

Declaring that he was not sure whether those responsible had really understood the grave crisis the country was in, lawmaker Gammanpila warned that the economic crisis wouldn’t end even if Sri Lanka fully recovered from the pandemic.

The Colombo District MP said that the deteriorating crisis could be easily explained. The government lacked Rupees and the country experienced severe dearth of foreign currency.

Minister Gammanpila said that successive governments over period of several decades had taken loans without considering the financial sustainability. The minister explained that the national economy had deteriorated to such an extent, Sri Lanka was no longer in a position to ask for loans. Minister Gammanpila said that the government couldn’t take loan in Rupees or USD or settle loans that had been taken.

The minister pointed out that all governments should accept the responsibility for failing to address the widening gap in imports and exports. How could we bridge USD 8 b trade gap by way of foreign loans.

The PHU leader pointed out that in addition to USD 8 bn gap in exports over imports, the country had to pay as much as USD 7 bn in outstanding loans and interests. Therefore, the government had no option but to explore ways and means of raising USD 15 bn a year to cover the trade deficit as well as loans and interest repayments.

MP Gammanpila said that in calculating the annual approximate shortage of USD, he hadn’t taken into consideration the USD requirement for Lankans studying overseas, those seeking medical treatment and foreign visits. Therefore the actual shortfall was even bigger, the minister said, warning that the gap couldn’t be bridged even if the tourism fully recovered and the country managed to regain foreign remittances lost due to workers returning home with the outbreak of the pandemic.

The MP declared that Sri Lanka couldn’t overcome the crisis by obtaining more loans from China and India and by seeking IMF assistance.

The PHU leader declared that first of all the government should accept the country was in deepening crisis not due to Covid-19 but as a result of a death trap of its own making due to living beyond its means. The minister said that instead of deceiving the masses, the people should be taken into confidence and the gravity of the situation explained.

The minister said that leaders had to set an example by making sacrifices thereby helping the public to change their life styles.

Minister Gammanpila questioned the country importing fruits worth USD 68 mn, spices worth USD 127 mn, vegetables and grains USD 384 mn in 2021. When the issue was taken up at the cabinet, Minister Chamal Rajapaksa pointed out how USD 384 mn had been spent on dhal imports. The minister claimed that USD 850,000 had been spent on imported bees honey and USD 450mn?? on imported water bottles.



Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

News

President chairs 2027 Pre-Budget talks on Agriculture Ministry

Published

on

By

A discussion to review the progress of projects being implemented under the 2026 budget allocations for the Ministry of Agriculture, Livestock, Land and Irrigation, and to consider the Ministry’s budgetary requirements for 2027, was held on Tuesday (07)  morning  at the Presidential Secretariat under the chairmanship of President Anura Kumara Dissanayake.

During the meeting, the progress of projects implemented in 2026 by institutions under the Ministry, including the Department of Agriculture, the Department of Agrarian Development, the Department of Export Agriculture and the Institute of Post-Harvest Technology (IPHT), was reviewed individually. Attention was also focused on institutions requiring restructuring to enhance efficiency and effectiveness.

The President instructed that all irrigation projects maintained by various institutions, departments and local authorities should be regulated through a single district-level unit. He also directed that irrigation rehabilitation projects being implemented across the island be comprehensively mapped.

Emphasising the need to maximise the utilisation of funds allocated under the 2026 Budget, the President instructed officials to further promote concessionary bank loan facilities available to young entrepreneurs in the agriculture and industrial sectors.

The President also instructed officials to submit a report containing proposals for the integrated and systematic management of extension services currently operating under various ministries. He further highlighted the importance of holding separate discussions on individual subject areas to ensure seamless coordination between the Provincial Councils and the Central Government.

The President also directed officials to submit new proposals and projects aimed at promoting export agricultural crops and increasing the value of related products.

The meeting also reviewed projects launched in recent years with foreign loan assistance. As many had exceeded their scheduled completion dates, the President instructed officials to expedite their completion. He further emphasised that, in future, no project financed through foreign loans should be approved without a clear understanding of its intended outcomes.

It was also noted that the Government had incurred a significant financial burden due to the failure to complete certain projects initiated in previous years within the stipulated timeframe. Accordingly, it was decided to review projects that had not been completed on schedule.

The discussion also highlighted the importance of replacing outdated projects and programmes that have continued for many years without delivering tangible results with more productive agricultural programmes.

Minister of Agriculture, Livestock, Land and Irrigation K.D. Lalkantha; Minister of Labor and Deputy Minister of Finance and Planning Dr. Anil Jayantha Fernando; Deputy Minister of Agriculture and Livestock Namal Karunaratne; Deputy Minister of Land and Irrigation Aravinda Senarath; Secretary to the President Dr Nandika Sanath Kumanayake; Secretary to the Treasury and Ministry of Finance, Planning and Economic Development, Dr.Harshana Suriyapperuma; Senior Additional Secretary to the President Kapila Janaka Bandara; Secretary to the Ministry of Energy and Senior Additional Secretary to the President Russell Aponsu; Secretary to the Ministry of Agriculture, Livestock, Land and Irrigation D.P. Wickramasinghe; and officials of the Ministry of Finance, Planning and Economic Development and the Ministry of Agriculture, Livestock, Land and Irrigation were also present at the discussion.

Continue Reading

News

Committee Appointed to investigate unrest at Negombo Prison

Published

on

By

A Committee of Inquiry was appointed on Tuesday (07) by Secretary to the President Dr Nandika Sanath Kumanayake, with Cabinet approval, to conduct a comprehensive investigation into the unrest that occurred at Negombo Prison on 5 and 6 July and to report on the circumstances that led to the incident.

The Committee is chaired by retired Supreme Court Judge Priyantha Fernando. Its other members are Additional Solicitor General and President’s Counsel Milinda Gunatilake and President’s Counsel Mohan Weerakoon. Senior Assistant Secretary to the President K.L.D. Asela has been appointed Secretary/Convener of the Committee of Inquiry.

Continue Reading

News

“Badhu Shakthi 2026” National Tax Week begins

Published

on

By

The inaugural ceremony of “Badhu Shakthi 2026” (“බදු ශක්ති 2026”) National Tax Week, organised by the Revenue Administration Reform and Modernisation Unit of the Presidential Secretariat with the objective of strengthening State revenue generation and accelerating the country’s future development process, was held on Monday (06) morning  at the Presidential Secretariat under the patronage of Speaker Dr Jagath Wickramaratne.

“Badhu Shakthi 2026” is a year-round national programme aimed at transforming the negative public perception of taxation into a positive one while fostering a culture of voluntary tax compliance. To mark its commencement, a National Tax Week will be observed across the island from 6 to 10 July.

A nationwide media and public awareness campaign will be conducted in parallel, including the distribution of leaflets and a range of promotional activities designed to educate the public directly and encourage greater tax compliance.

Addressing the inaugural event, Speaker Dr Jagath Wickramaratne stated that “Badhu Shakthi 2026” is not simply a tax collection campaign but a national initiative aimed at cultivating responsible citizens who love their country.

Further elaborating, the Speaker said:

“Today marks a significant milestone in our country’s future development and economic stability. The strength and sustainability of any sovereign nation depend on its economic independence. Taxation is one of the key instruments for strengthening State revenue and driving national development.

However, taxation has long been viewed negatively by many people. That perception was largely shaped by those responsible for collecting taxes and by successive administrations. When people develop a sense of national responsibility, their attitudes begin to change. For many years, taxes were regarded as a burden. History has shown us that tax evasion occurred on a significant scale, and it must be acknowledged, however reluctantly, that such practices often enjoyed political patronage.

In the past, the public had little understanding of how their tax contributions were utilised. Taxpayers lacked a clear vision of the benefits derived from the taxes they paid. The present Government has succeeded in changing this situation by fostering a more positive public attitude towards taxation. I wish to pay tribute to all taxpayers who contribute towards the Government’s national development agenda.

Today, people have confidence that the taxes they pay are being put to good use. Expressways, highways and power infrastructure projects are now being implemented using domestic funds. There is a sense of pride among the public that construction of the Kandy Expressway has commenced without obtaining loans from any external source. Cabinet approval has also been granted to commence work on the Kurunegala–Galewela Road.

Today, Sri Lanka has grown stronger as a nation capable of financing development activities through domestic resources rather than relying on foreign borrowing.

In ancient times, the country’s great stupas, reservoirs and irrigation networks were built through the collective contribution of the people. Likewise, Sri Lanka can become a prosperous and developed nation only through collective effort. The taxes collected today are being utilised for the welfare of the people. This was clearly demonstrated when the Government allocated Rs. 500 billion in response to Cyclone Ditwah. In addition, substantial benefits are now being provided to the public through the President’s Fund. Educational assistance is being extended to schoolchildren across every corner of the country. All of these initiatives are being financed through domestic resources.

It is essential that the public are made aware of the real benefits derived from tax revenue and of the development projects being implemented. This will strengthen public confidence in the transparent use of tax revenue. The primary objective of this national programme is to broaden the country’s tax base, improve tax compliance, reduce tax evasion and foster a positive attitude towards taxation. If everyone pays their fair share of taxes, the tax burden borne by others can be reduced.

We do not build a beehive with a single bee. It is created through the collective effort of thousands of bees, making it a remarkable achievement. Likewise, ‘Badhu Shakthi 2026’ is not merely a tax collection campaign. It is a national movement to cultivate responsible citizens who love their country. I extend my sincere appreciation to everyone who has dedicated themselves to making this important initiative a success.”

Labour Minister and Deputy Minister of Finance and Planning Anil Jayantha Fernando:

Labour Minister and Deputy Minister of Finance and Planning Dr. Anil Jayantha Fernando said that a proper understanding of taxation among citizens would enable Sri Lanka to make greater progress towards economic and social transformation.

He noted that while individuals naturally pursue their own personal goals and aspirations, many of these objectives cannot be achieved in isolation. The success of any society depends on cooperation and collective effort.

He further stated:

“Today, paying taxes has become a much simpler process. As a result, tax collection is now carried out more efficiently and systematically. At the same time, the Government recognises its responsibility to ensure that tax revenue collected fairly is managed prudently and utilised for the benefit of society. If the Government fails to demonstrate sound financial discipline, people will lose confidence and become reluctant to pay taxes. This was evident in the past.

Accordingly, the Government has introduced a tax administration system founded on strong fiscal discipline. We will not tolerate fraud, corruption or waste. If we are to rebuild this country, every citizen must contribute willingly and with a sense of national responsibility. This should not be driven solely by legal obligation. We are confident that the people of Sri Lanka will fulfil this responsibility.”

Deputy Minister of Economic Development Nishantha Jayaweera, Director General of Customs Wimal Liyanagama, Director General of Excise M.B.N.A. Premaratne, and Commissioner General of Inland Revenue Rukdevi Fernando also addressed the gathering.

Among those present were Director General of Public Relations to the President Dharmasiri Gamage, senior officials of the Presidential Secretariat, the Ministry of Finance, Sri Lanka Customs, the Department of Excise, the Inland Revenue Department, as well as taxpayers and other invited participants.

Continue Reading

Trending