News
Govt. MP slams Finance Ministry over gaping holes in tax collection system
‘New taxes won’t help as long as system remains the same’
By Shamindra Ferdinando
SLPP MP Mahindananda Aluthgamage yesterday (30) said that in spite of him repeatedly raising the urgent need to regulate chartered accountants, as part of the overall measures to increase state revenue, nothing was being done.The former minister alleged that the Finance Ministry was turning a blind eye to a well-organized racket that deprived the cash-strapped government much needed revenue.
Lawmaker Aluthgamage said so in response to The Island queries. Demanding an explanation from the Finance Ministry, regarding its failure to regulate chartered accountants, regardless of evidence of unscrupulous activities by some of them, like certifying doctored accounts, the Kandy District MP said that the government wanted to streamline the revenue collection process.
The government wouldn’t be able to benefit from new and increased taxes as long as the revenue collection system remained in the hands of corrupt elements, the Minister said. The former minister asked whether the continuing failure to recover well over Rs 700 bn, in unpaid taxes, accumulated interest et al, could be justified under any circumstances.
The former minister said the Finance Ministry was yet to respond to accusations he made in Parliament, on Sept. 20, about large-scale tax evasion and the role played by some chartered accountants/tax consultants in the racket.It was common knowledge that when a tax return was submitted, through a firm of chartered accountants, the Inland Revenue officers hardly asked any questions, MP Aluthgamage said.
Aluthgamage added that he expected the Finance Ministry and other relevant institutions to get in touch with him. “However, they hadn’t contacted me, though the Finance Ministry, on Sept. 26, assured that the Parliament would be briefed on the developments and action taken, as regards the accusations, within a month,” the MP said.
The MP said that he wouldn’t withdraw the accusations he made in Parliament, on Sept. 20, under any circumstances. The Finance Ministry should either prove me wrong or take remedial measures as soon as possible, the MP said, urging the powers that be to address the issues at hand, or face the consequences.
Referring to what he called two glaring cases of tax evasion, involving prominent businessmen, MP Aluthgamage said that the Finance Ministry should go the whole hog. The situation was so bad the government couldn’t ignore the urgent need for overall reforming of the tax collecting structure, the ex-minister said. Reiterating the pivotal importance in regulating chartered accountants, lawmaker Aluthgamage revealed an instance of Rs 35 bn was shown as Rs 5 bn.
President Ranil Wickremesinghe holds the finance portfolios whereas Ranjith Siyambalapitiya and Shehan Semasinghe serve as State Finance Ministers. SLFPer Siyambalapitiya is responsible for revenue collection.
State Minister Siyambalapitiya, on Sept. 26, requested a comprehensive report from the Customs, Inland Revenue Department and Excise Department as regards the issues raised by MP Aluthgamage, in terms of Standing Orders (27) 2. Requesting them to submit their report, within two weeks, MP Siyambalapitiya assured that the Parliament would be briefed, within a month. Instructions were issued at a meeting chaired by State Minister Siyambalapitiya, at the Finance Ministry. Among those present were Inland Revenue chief D.R.S. Hapuaarachchi, Director General, Customs, P.B.S.C. Nonis and Commissioner General, Excise, M.J. Gunasiri.
Referring to the staff-level agreement Sri Lanka reached with the International Monetary Fund (IMF), MP Aluthgamage said that the government was taking measures to enhance revenue. The Parliament endorsed ‘Social Security Contribution Levy’, on Sept. 08, with 91 members voting for and 10 against, the former minister said, adding that it was meant to annually collect Rs 140 bn. “Taxes are necessary. All of us understand the difficulties experienced by vast majority of people, struggling to make ends meet. Indirect taxes are imposed on them, whereas those who should pay taxes, continue to evade the taxman,” MP Aluthgamage said.
MP Aluthgamage said that the current tax appeal system should be examined as interested parties continued to exploit the loopholes for their advantage. The former minister said that the reports released by parliamentary watchdog committees, COPE (Committee on Public Enterprises), COPA (Committee on Public Accounts) and COPF (Committee on Public Finance), since the last general election, revealed how the government deprived itself of the revenue by allowing interested parties to exploit the tax collection system.
News
GMOA warns of trade union action unless govt. urgently resolves critical issues in health sector
Influx of substandard drugs is of particular concern
The Government Medical Officers’ Association (GMOA) has warned of renewed and intensified trade union action if the government fails to fulfil its promise to resolve the ongoing crisis in the health sector within the next few days.
GMOA Executive Committee member Dr. Prasad Colombage said his association was hopeful that commitments made by the government, including those formally stated by the Minister of Health in Parliament and recorded in the Hansard, would be implemented.
He called for urgent remedial action in view of the influx of substandard medicines into the country, patient deaths linked to such drugs, difficulties faced by doctors in prescribing medicines, and disruptions to patient care services caused by the continued migration of medical professionals. These factors, he warned, had placed patients’ lives at serious risk.
Dr. Colombage said discussions had already been held with all relevant authorities, including the President and the Minister of Health. He expressed hope that swift solutions would be forthcoming based on agreements reached at discussions. However, he cautioned that the GMOA would not hesitate to resort to strong trade union action if tangible progress was not seen in the coming days.
Meanwhile, the Federation of Medical and Civil Rights Professional Associations yesterday (01) handed over a special memorandum to President Anura Kumara Dissanayake, calling for immediate action to resolve the deepening crisis in the health sector.
Federation President, Consultant Dr. Chamal Sanjeewa, said Sri Lanka’s health system was currently facing a severe crisis and had sought an opportunity to hold discussions with the President on the matter.
The memorandum calls for the President’s direct and immediate intervention on several key issues, including the Indo–Sri Lanka health agreement, shortages of essential medicines including cancer drugs, continued allegations surrounding the administration of the Ministry of Health, reported irregularities at the National Hospital, Colombo, and the absence of an internationally accredited quality control laboratory for the National Medicines Regulatory Authority to test medicines. The Federation has also requested a meeting with the President to discuss these concerns in detail.
By Sujeewa Thathsara ✍️
News
Elephant census urged as death toll nears 400
Sri Lanka’s latest elephant census must result in immediate policy action, not remain a paper exercise, Centre for Environmental Justice (CEJ) Managing Director Dilena Pathragoda warned, as nearly 400 wild elephants have already died in 2025 alone amid escalating human–elephant conflict.
With the national elephant population estimated at around 5,879, Pathragoda said the figures would be meaningless unless they shape land-use planning, habitat protection and enforcement.
“As of mid-December, close to 397 elephants have died in 2025, mostly due to shootings, electrocution, train collisions and other human-related causes,” he told The Island. “When deaths continue at this scale, census numbers alone offer little reassurance.”
Official data show that 388 elephants died in 2024, while 2023 recorded a staggering 488 deaths, one of the highest annual tolls on record. Conservationists warn that the trend reflects systemic failure to secure habitats and elephant corridors, despite repeated warnings.
“An elephant census should not end with a headline figure,” Pathragoda said. “If these statistics do not influence development approvals, infrastructure planning and land-use decisions, they fail both elephants and rural communities.”
Elephant populations remain unevenly distributed, with higher densities in the Mahaweli, Eastern and North Western regions, while other areas face sharp declines driven by habitat fragmentation and unplanned development.
Pathragoda said recurring fatalities from gunshots, illegal electric fences, improvised explosive devices along with poisonings and rail collisions expose the limits of short-term mitigation measures, including ad hoc fencing projects.
“The crisis is not a lack of data, but a lack of political will,” he said, calling for binding conservation policy, transparent environmental assessments and accountability at the highest level.
He urged authorities to treat elephant conservation as a national governance issue, warning that failure to act would only see future censuses record further decline of these majestic animals.
“Elephants are part of Sri Lanka’s natural heritage and economy,” Pathragoda said. “Ignoring these warning signs will come at an irreversible cost.”
By Ifham Nizam ✍️
News
CTU raises questions about education reforms
The Ministry of Education has yet to clarify whether school hours will be extended by 30 minutes from next Monday (05) under the proposed new education reforms, Ceylon Teachers’ Union (CTU) General Secretary Joseph Stalin has said.
Stalin told The Island that the Ministry should reconsider the planned reforms, warning that decisions taken without adequate study and consultation could have serious repercussions for nearly four million schoolchildren.
He said the Education Ministry had announced that education reforms would be implemented in Grades from 1 to Grade 6, but it had not said anything about the Grades above 6. This lack of clarity, he said, had created confusion among teachers, parents and students.
Stalin also noted that although learning modules had been issued, students are required to obtain photocopies based on the codes introduced in these modules. However, the Ministry had not revealed who would bear the additional financial burden arising from those costs, raising further concerns over the practical implementation of the reforms.
by Chaminda Silva ✍️
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