News

Govt. in desperate bid to collect tax arrears running into billions of rupees

Published

5 years ago

2021/04/28

The all-party Committee on Public Accounts (COPA) has directed the Inland Revenue Department to take all possible measures to collect tax arrears running into billions of rupees. In the absence of COPA Chairman Prof. Tissa Vitharana, Dr. Harini Amarasuriya, JVP member of Parliament, chaired its recent proceedings.

Dr. Amarasuriya told the Inland Revenue Department to submit a report within two to five months on taxes and penalties in default to be recovered.

The following is the text of a statement issued by the Communications Department of Parliament: “COPA directed the Inland Revenue Department to submit a report within two to five months with regard to the Taxes and Penalties in default to be recovered from tax payers without any complications and the amount where recovery is possible but contains considerable issues.

The directive to submit the report pertaining to the amount of Taxes and Penalties to be recovered without any complications related to the Legacy computer system owned by the Inland Revenue Department and the amount where recovery is possible but contains considerable issues was made by Member of Parliament Dr. Harini Amarasuriya who served as the acting Chairperson of the COPA Committee.

The acting Chairperson further instructed the department to submit a report to the Committee within five months on the amount of Taxes and Penalties in default to be recovered without any complications in relation to the RAMIS computer system and the amount where recovery is possible but contains considerable issues.

According to the Legacy system, Rs. 18 billion had been identified as tax arrears of the identified companies as at 30.03.2021, and it was disclosed that it was 17 percent compared to the total outstanding revenue of Rs. 107 billion as at June 30, 2020.

According to the RAMIS system, Rs. 87 billion had been identified as tax arrears of the identified companies on 30.03.2021 and it was disclosed that it was an increase of 47.5 percent compared to the total outstanding revenue of Rs. 183 billion as at June 30, 2020.

The Committee informed the Inland Revenue Department that all arrears pertaining to the Legacy System should be recovered expeditiously and action should be taken to end the functions of the system.

The Committee had earlier instructed the Ministry of Justice to implement a program to expedite the proceedings in the courts regarding the recovery of tax arrears and the process on this regard was taken into review.

The Ministry of Justice informed the Committee that the matter has been discussed with the Judicial Service Commission and that a proper mechanism is currently underway to expedite cases in the court proceedings regarding the recovery of tax arrears.

State Minister Dr. Sudarshini Fernandopulle, Members of Parliament Tissa Attanayake, Niroshan Perera, Dr. Upul Galappaththi and B.Y.G Ratnasekera marked their attendance at this COPA Committee Meeting which was held to review the progress of the implementation of the directives given during the discussions held on January 06th 2021 and March 10th pertaining to the Special Audit Report Taxes and Penalties in Default to be Recovered from Taxpayers.”

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Navy seize an Indian fishing boat poaching in northern waters

Published

7 hours ago

2026/01/3

Priyan

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.

Latest News

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

Published

13 hours ago

2026/01/3

Priyan

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.

News

CEB demands 11.57 percent power tariff hike in first quarter

Published

15 hours ago

2026/01/3

Thilina Walpola

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 ✍️