News
‘Hunger needs to be overcome before highways and high life’
The global economic crisis has affected all countries, but small economies like Sri Lanka are the worst hit. A recent nutritional study in Sri Lanka shows that the level of malnutrition has gone up to 18%, while the poverty level has reached 60%.
While the rural and plantation sectors are worst affected, the urban sector has also been hit. On International Women’s Day, it was sad to see continuing discrimination and the sad plight of women in our country, a cause for concern.
Besides the many women who bear the burden of doing a job while running the home and caring for the family, the war widows and elderly are suffering in silence with no support from society. The economic downturn has been aggravated by the Covid 19 pandemic. The media makes little or no mention of this grave situation, and the Government carries on as usual, with more attention to highways and high life, and only little attention to the problems of hunger and poverty.
The Lanka Sama Samaja Party, that was formed in 1935, is having its Conference on March 20 and 21, and is giving priority to this issue. Developed countries like the USA and UK have daily soup kitchens organized by social welfare organizations. We lack these, and the government must intervene in a more organized manner. The occasional basket of dry rations helps, but a more systematic and organized campaign is required to ensure that no one goes to bed at night hungry.
The Cooperative Movement that was strong and well established in the 1970s should be restored, ensuring that everyone gets. food and essentials, and exploitation by middlemen is minimized. Till then every Grama Sevaka must visit each house and make a list of those in need. Adequate dry rations must reach them. Cooked meals should be supplied to the old and disabled. Religious and other welfare organizations must be mobilized.
The economic downturn is continuing and though the Covid-19 vaccine is being given to high risk groups, it will take some time to reach the over 70-80% coverage required to control transmission in the community. Under these conditions the economic situation will be bad. There is also a financial downturn, as well as a foreign debt crisis.
The country and the people will have to tighten belts and reduce spending. The Government should act with restraint, minimizing expenditure. Ensuring that everybody is fed is the first priority. Highways and other development activities can wait. The better off must take as much of the burden as possible. This means that the level of direct personal tax, which is as low as 14% should be raised to over 45% and the company tax from 18% to at least 50%.
Our foreign debt should be reduced. The government should tighten its restriction on unnecessary imports and construction activities and take the country into its confidence, explain the situation, and give the lead by an austerity budget. The burden must not be put on to the poor through indirect tax increases, but on those who can afford.
Those who have lost jobs should be compensated through local development activities, specially by stimulating the agricultural sector and local value added industry. Some persons will have to undergo skills training. In the meantime some type of dole or financial support by the state will be necessary. Local industry too needs to be supported. The government decision to achieve self-sufficiency is good and achievable.
The LSSP has been advocating adoption of the new solidarity concept. This is gaining ground in Europe and Latin America, and has proved a success. State ventures are run on cooperative lines with ownership being vested in the employees. The latter, in addition to their wages, also get an equal share in the profits of the enterprise. The outcome has been a large increase in the income of both the employees and the enterprise, increased efficiency and curbing of stealing and corruption.
While improving on the devolution of power to the provinces, the development of the province must be an integral part of the total national plan to develop the country as a whole. The allocation of funds should be done accordingly. This will ensure planned development of all parts of the country as one unit. Sri Lanka will become one strong united nation.
Prof. Tissa Vitarana
News
President chairs 2027 Pre-Budget talks on Agriculture Ministry
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.
News
Committee Appointed to investigate unrest at Negombo Prison
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.
News
“Badhu Shakthi 2026” National Tax Week begins
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.
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