News
Godahewa compares move on SriLankan Catering with H’tota port sell-off
‘IMF deal no panacea for all our ills’
By Shamindra Ferdinando
Gampaha District MP Dr. Nalaka Godahewa has accused the cash-strapped government of planning to sell-off profitable state enterprises to raise funds. Comparing the proposed privatization of SriLankan Catering with the sell-off of the Hambantota port, in 2017, by the Yahapalana government, Dr. Godahewa pointed out that such strategies would be disastrous, in the long term, as the Treasury lost annual income from such highly profitable ventures.
One-time Viyathmaga activist estimated the annual SriLanka Catering profits at Rs. 3bn. The government has also been accused of planning to sell-off other cash cows, like the SLT and the SLIC.
At a meeting organized by the ‘Nidahas Janatha Sabhawa,’ in Kandy, over the last weekend, lawmaker Godahewa dealt with the developing economic-political and social crisis with the focus on the controversial staff-level agreement with the International Monetary Fund (IMF) for a USD 2.9 bn loan facility. Among those present were SLPP rebel group members Prof. G.L. Peiris, Prof. Charitha Herath and Prof. Channa Jayasumana.
Acknowledging the daunting challenge, faced by President Ranil Wickremesinghe’s government in coping up with the unprecedented economic fallout, Dr. Godahewa stressed that the incumbent administration couldn’t, under any circumstances, deprive the right of the Parliament to receive a copy of the agreement with the IMF.
The IMF, on September 01, announced the finalization of the agreement for what it called Extended Fund Facility (EFF) for USD 2.9 bn meant to restore macroeconomic stability and ensure debt sustainability. Demanding that the agreement be tabled in Parliament, without further delay, Dr. Godahewa alleged that the government was making a silly attempt to portray the EFF funding, made available over a four-year period, as panacea for the economic fallout.
“The developing crisis is so acute, the economic recovery cannot be solely dependent on the IMF loan facility,” Dr. Godahewa told The Island, urging the government to take the public into confidence, without further delay.
“If the Parliament is responsible for public finance and enactment of laws, there cannot be any justifiable reason to deprive its members of their right to know the contents. The issue at hand is whether the Cabinet-of-Ministers is aware of the IMF deal,” Dr. Godahewa said.
Addressing the gathering in the hill capital, lawmaker Godahewa said that the public response, as well as of theirs to the staff-level agreement, would depend on the contents of the agreement.
He urged the government to disclose the agreement on increasing of taxes, as well as services provided by the government and the impact on the hapless public. Profit-making state enterprises, guarantee a transparent process in respect of the proposed restructuring of both loss- /profit-making state enterprises, agreement on pruning of the public sector, compensation for those to be retrenched, free health and education, he said.
Dr. Godahewa said that the government couldn’t go ahead with such a far reaching agreement, without consulting all political parties represented in Parliament. The Parliament couldn’t be deprived of its legitimate right to be informed and assert overall authority regarding the agreement, Dr. Godahewa said, finding fault with the government for not taking the Parliament into confidence, before the Central Bank announced Sri Lanka’s decision to suspend repayment of debt.
At the time the CBSL Governor, Dr. Nandalal Weerasinghe, made the announcement, Gotabaya Rajapaksa served as the President and head of the Cabinet-of-Ministers, whereas some described the move as a pre-emptive negotiated default.
Dr. Godahewa asserted that the government should have discussed the issue at hand with creditors before such an announcement was made. Such unilateral actions undermined political and economic stability, in addition to creditors losing confidence in the country.
Strongly condemning efforts to deceive the public, on the basis of the much-touted agreement with the IMF, Dr. Godahewa reminded the government that the promised USD 2.9 bn loan facility to be received, over a period of four years, whereas Sri Lanka needed approximately USD 4 bn for repayment of its outstanding debt this year.
Pointing out that Sri Lanka required USD 4-5 bn, over the next couple of years, to service its debt, Dr. Godahewa asked the government to divulge how it intended to address the daunting task.
The MP warned President Wickremesinghe, and the SLPP, not to refrain from settling the debt during the remainder of Gotabaya Rajapaksa’s presidency.
The SLPP, on July 20, ensured the election Wickremesinghe by Parliament, as the 8th President, to complete the remainder of his predecessor’s term. Gotabaya Rajapaksa was elected in Nov 2019 for a five-year period, with a thumping majority.
Dr. Godahewa said that a tangible action plan was needed as the country experienced a USD 5 bn deficit in income and expenditure. Therefore, the SLPP-led government couldn’t overcome the crisis, through political jugglery, and effective measures were required to increase the income. The one-time Chairman of the highly profitable Sri Lanka Insurance Corporation asserted that foreign reserves should be increased to at least USD 10 bn. That would be the key to solving the crisis, Dr. Godahewa said, strongly criticizing the government for not addressing the issue seriously.
Lawmaker Godahewa said that the government shouldn’t exploit the balance of payments crisis to sell off national assets. Referring to the giving away of the Hambantota port on a 99-year lease by the Yahapalana administration, Dr. Godahewa asked whether anyone knew how USD 1.1, received from the Chinese deal, was spent.
During thenCOPE proceedings, several months ago, both the Finance Ministry and SLPA officials admitted that they weren’t aware how USD 1.1 bn was spent.
Latest News
58,454 International aircraft movements in Sri Lanka in first 11months of 2025 – Ministry of Ports and Civil Aviation
According to figures released by the Ministry of Ports and Civil Aviation there have been 58,454 international aircraft movements in the first 11 months of 2025 in Sri Lanka. [An aircraft movement refers to the count of take offs and landings at an airport]
The figures also confirm that tourist arrivals via air stands at 2.1 million.
Latest News
Highest revenue in 93-year history of Inland Revenue Department collected in 2025
The Inland Revenue Department has succeeded in collecting Rs. 2,203 billion in revenue in 2025, the highest amount recorded in its 93-year history. This represents a surplus of Rs. 33 billion over the revenue target for the year and a 15 per cent increase compared with the revenue collected in the previous year, stated Commissioner-General of Inland Revenue Ms Rukdevi Fernando.
She made these remarks at a discussion held on Tuesday (30) morning at the Department’s auditorium under the patronage of President Anura Kumara Dissanayake.
Marking the first occasion in the 93-year history of the Inland Revenue Department that a President has visited the Department, the President attended a meeting with the staff to review the progress achieved in 2025 and the new plans for 2026.
The President expressed his appreciation to all officers and staff of the Inland Revenue Department for surpassing the revenue expected by the Government and urged everyone to continue working towards a common objective in order to realise the economic transformation required for the country.
Emphasising that no individual is entitled to the privilege of evading taxes, the President stated that the era in which a tax culture prevailed based on personal or political affiliations has come to an end. He further stressed that the law will be enforced without hesitation, irrespective of status, against those who attempt to evade taxes.
The President also pointed out that tax collection is neither repression nor coercion but a legitimate right of the State, adding that necessary changes will be made to laws, regulations, designations and staffing in order to secure this contribution.
He further emphasised that the Government’s objective is to ensure that the benefits of these economic achievements flow to the people of the country. The Government is focusing on improving essential public services to enhance the quality of life, undertaking a new transformation of the transport system and providing adequate allocations for the development of the education and health sectors.
The President also highlighted the need for a targeted programme to properly collect the taxes due to the Government by addressing issues such as improving tax literacy, simplifying the tax system and filling staff shortages.
Ms Rukdevi Fernando stated that the professional competence and dedication of the Department’s officers were the key factors behind this success.
She further noted that a revenue target of Rs. 2,401 billion has been set for 2026 and that the Department expects to achieve this through programmes aimed at enhancing tax compliance and broadening the tax base.
In addition, she said that the Department plans to expand third-party data sharing, strengthen investigations into domestic and overseas assets, take over the RAMIS system, reinforce risk-based auditing, introduce e-invoicing, adopt modern technology for tax administration and enhance tax ethics in 2026.
Minister of Labour and Deputy Minister of Finance and Planning Dr Anil Jayantha Fernando, Deputy Minister of Economic Development Nishantha Jayaweera, Secretary to the President Dr Nandika Sanath Kumanayake, Commissioner-General of Inland Revenue Ms Rukdevi Fernando and senior officials and staff of the Department were present at the occasion.
Business
Sri Lanka Customs exceeds revenue targets to enters 2026 with a surplus of Rs. 300 billion – Director General
The year 2025 has been recorded as the highest revenue-earning year in the history of Sri Lanka Customs, stated Director General of Sri Lanka Customs, Mr. S.P. Arukgoda, noting that the Department had surpassed its expected revenue target of Rs. 2,115 billion, enabling it to enter 2026 with an additional surplus of approximately Rs. 300 billion.
The Director General made these remarks at a discussion held on Tuesday (30) morning at the Sri Lanka Customs Auditorium, chaired by President Anura Kumara Dissanayake.
The President visited the Sri Lanka Customs Department this to review the performance achieved in 2025 and to scrutinize the new plans proposed for 2026. During the visit, the President engaged in extensive discussions with the Director General, Directors and senior officials of the Department.
Commending the vital role played by Sri Lanka Customs in generating much-needed state revenue and contributing to economic and social stability, the President expressed his appreciation to the entire Customs employees for their commitment and service.
Emphasizing that Sri Lanka Customs is one of the country’s key revenue-generating institutions, the President highlighted the importance of maintaining operations in an efficient, transparent and accountable manner. The President also called upon all officers to work collectively, with renewed plans and strategies, to lead the country towards economic success in 2026.
The President further stressed that the economic collapse in 2022 was largely due to the government’s inability at the time to generate sufficient rupee revenue and secure adequate foreign exchange. He pointed out that the government has successfully restored economic stability by achieving revenue targets, a capability that has also been vital in addressing recent disaster situations.
A comprehensive discussion was also held on the overall performance and progress of Sri Lanka Customs in 2025, as well as the new strategic plans for 2026, with several new ideas and proposals being presented.
Sri Lanka Customs currently operates under four main pillars, revenue collection, trade facilitation, social protection and institutional development. The President inquired into the progress achieved under each of these areas.
It was revealed that the Internal Affairs Unit, established to prevent corruption and promote an ethical institutional culture, is functioning effectively.
The President also sought updates on measures taken to address long-standing allegations related to congestion, delays and corruption in Customs operations, as well as on plans to modernize cargo inspection systems.
The discussion further covered Sri Lanka Customs’ digitalization programme planned for 2026, along with issues related to recruitment, promotions, training and salaries and allowances of the staff.
Highlighting the strategic importance of airports in preventing attempts to create instability within the country, the President underscored the necessity for Sri Lanka Customs to operate with a comprehensive awareness of its duty to uphold the stability of the State, while also being ready to face upcoming challenges.
The discussion was attended by Minister of Labour and Deputy Minister of Finance and Planning, Dr. Anil Jayanta Fernando, Deputy Minister of Economic Development, Nishantha Jayaweera, Secretary to the President, Dr. Nandika Sanath Kumanayake, Deputy Secretary to the Treasury, A.N.Hapugala, Director General of Sri Lanka Customs, S.P.Arukgoda, members of the Board of Directors and senior officials of the Department.
-
News7 days agoBritish MP calls on Foreign Secretary to expand sanction package against ‘Sri Lankan war criminals’
-
News6 days agoStreet vendors banned from Kandy City
-
Sports7 days agoChief selector’s remarks disappointing says Mickey Arthur
-
Opinion7 days agoDisasters do not destroy nations; the refusal to change does
-
Sports3 days agoGurusinha’s Boxing Day hundred celebrated in Melbourne
-
News6 days agoLankan aircrew fly daring UN Medevac in hostile conditions in Africa
-
Sports4 days agoTime to close the Dickwella chapter
-
News22 hours agoLeading the Nation’s Connectivity Recovery Amid Unprecedented Challenges
