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GMOA, medical consultants sound pessimistic about 2023 due to new tax regime

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By Rathindra Kuruwita

Year 2023 would be wore than 2022, Secretary to the Government Medical Officers Association (GMOA), Dr. Haritha Aluthge said.

“Professionals will be taxed directly and unjustly. Meanwhile, indirect taxes that affect the poor people most, have also been increased. We have tried our best to make the government rethink the tax policy. If they don’t consider our proposals, we will be compelled to resort to action that they understand,” he said.

Meanwhile, President of the Ceylon Bank Employees Union (CBEU), Channa Dissanayake said that they will take union action the day the new taxes come into effect.Dr. R. Gnanasekaram, Secretary of the Association of Medical Specialists (AMS), said the government will take in two months’ worth of salaries as PAYE tax.

“This means we will work for 12 months and get paid for 10 months. Most specialists will leave the country when this tax is implemented,” he said.

Federation of University Teachers’ Associations (FUTA), Vice President, Nadish de Silva, also threatened action.According to the amended PAYE tax, a person who earns Rs 150,000 a month will have to pay 2.3 percent of the total income, and the rate jumps to 28.7 percent to a person who earns one million rupees a month.

“While taxes are important, the government must take into account the current ground realities. People are suffering from the crisis and a lot of educated people are leaving the country. These taxes will not only make professionals leave the country, but make it impossible for the common man to live,” he said.

What they are demanding is not a tax exemption to powerful professional groups but a careful reconsideration of the tax policy of the Ranil Wickremesinghe administration, he said.



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Navy seize an Indian fishing boat poaching in northern waters

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During an operation conducted in the dark hours of 01 Jan 26, the Sri Lanka Navy seized an Indian fishing boat and apprehended 11 Indian fishermen while they were poaching in Sri Lankan waters, off Kovilan of Kareinagar, Jaffna.

The Northern Naval Command spotted a group of Indian fishing boats engaging in illegal fishing, trespassing into Sri Lankan waters. In response, naval craft of the Northern Naval Command were deployed to drive away those Indian fishing boats from island waters off Kovilan.

Meanwhile, compliant boarding made by naval personnel resulted in the seizure of one Indian fishing boat and apprehension of 11 Indian fishermen who continued to engage in illegal fishing in Sri Lankan waters.

The seized boat (01) and Indian fishermen (11) were handed over to the Fisheries Inspector of Myliddy, Jaffna for onward legal proceedings.

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Tri-Forces donate LKR. 372 million, a day’s pay of all ranks to ‘Rebuilding Sri Lanka’ Fund

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Members of all ranks from the Sri Lanka Army, Sri Lanka Navy and Sri Lanka Air Force have collectively donated a day’s basic salary to the ‘Rebuilding Sri Lanka’ Fund, which was established to restore livelihoods and rebuild the country following the devastation caused by Cyclone Ditwah.

Accordingly, the total contribution made by the Tri-Forces amounts to LKR. 372,776,918.28.

The cheques representing the financial contributions were handed over on Wednesday (31 December) at the Presidential Secretariat to the Secretary to the President, Dr. Nandika Sanath Kumanayake.

The donations comprised LKR. 250 million from the Commander of the Army, Major General Lasantha Rodrigo; LKR. 73,963,879.71 from the Commander of the Navy, Rear Admiral Kanchana Banagoda and LKR. 48,813,038.97 from the Commander of the Air Force, Air Marshal Vasu Bandu Edirisinghe.

Secretary to the Ministry of Defence, Air Vice Marshal Sampath Thuyacontha, was also present on the occasion.

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CEB demands 11.57 percent power tariff hike in first quarter

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The Ceylon Electricity Board (CEB) has submitted a proposal to the Public Utilities Commission of Sri Lanka (PUCSL) seeking an 11.57 percent increase in electricity tariffs for the first quarter of 2026, citing an estimated revenue shortfall and additional financial pressures, including cyclone-related damages.

According to documents issued by the PUCSL, the proposed tariff revision would apply to electricity consumption from January to March 2026 and includes changes to both energy charges and fixed monthly charges across all consumer categories, including domestic, religious, industrial, commercial and other users.

Under the proposal, domestic electricity consumers would face increases in unit rates as well as fixed monthly charges across all consumption blocks.

The CEB has estimated a deficit of Rs. 13,094 million for the first quarter of 2026, which it says necessitates the proposed 11.57 per cent tariff hike. The utility has noted that any deviation from this estimate whether a surplus or a shortfall will be adjusted through the Bulk Supply Tariff Adjustment (BSTA) mechanism and taken into account in the next tariff revision.

In its submission, the CEB said the proposed revision is aimed at ensuring the financial and operational stability of the power sector and mitigating potential risks to the reliability of electricity supply. The board-approved tariff structure for the first quarter of 2026 has been submitted to the PUCSL for approval and subsequent implementation, as outlined in Annex II of the proposal.

The CEB has also highlighted the financial impact of Cyclone Ditwah, which it said caused extensive damage to electricity infrastructure, with total losses estimated at around Rs. 20 billion. Of this amount, Rs. 7,016.52 million has been attributed to the first quarter of 2026, which the utility said has a direct bearing on electricity tariffs.

The CEB warned that if external funding is not secured to cover the cyclone-related expenditure, the costs incurred would need to be recovered through electricity tariffs in the second-quarter revision of 2026.

Meanwhile, the PUCSL has said that a decision on whether to approve the proposed tariff increase will be made only after following due regulatory procedures and holding discussions on the matter.

By Sujeewa Thathsara ✍️

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