News
Income tax protests: unions threaten to shut country down

ECONOMYNEXT –A collective of trade unions and professional associations representing high-income earning public servants has threatened to launch a nationwide general strike on March 01 if the government doesn’t address their concerns about a personal income tax hike.
Media spokesman of the Federation of University Teachers Association (FUTA) Charudaththa Illangasinghe told reporters on Friday January 17 that unions and associations representing education, power and energy and other utilities, ports, health and banking sectors plan to engage in large scale trade union action starting next week against the government’s recently introduced tax policy.
“We all decided unanimously today to agitate against this act and to reject it.
“We demand that the government immediately resolve this issue, or else by next week we will go into massive trade union action. The country may be shut down,” said Illangasinghe.
President of the Petroleum Public Employees Union Ashoka Ranwala said the unions have reached a “historic decision”.
“We have announced a black week from February 22. On March 01 we will reconvene and review the situation and on that day we plan to launch a nationwide general strike,” he said.
Trade unions and professional associations in Sri Lanka representing high income earners in the public and private sectors have been protesting a recent hike in personal income taxes that sees the cash-strapped government collect from anyone earning over 100,000 rupees a month.
Sri Lanka’s new tax regime has both its defenders and detractors. Critics who are opposed to progressive taxation said it serves as a disincentive to industry and capital which can be invested in business. They argue that a flat rate of taxation is implemented where everyone is taxed at the same rate.
Others, however, contend that the new taxes only affect some 10-12 percent of the population and, given the country’s economic situation, is necessary, if not vital.Critics of the protesting workers argue that most of the workers earn high salaries that most ordinary people can only dream of, and though there may be some cases where breadwinners could be taxed more equitably, overall, Sri Lanka’s tax rates remain low and are not unfair.
News
Southern Expressway land leased to Rajapaksa allies for Rs. 10,000 – Minister

Leader of the House and Transport Minister Bimal Rathnayake told Parliament yesterday that a service area on the Southern Expressway had been leased for 99 years to individuals linked to the Rajapaksa family for just Rs. 10,000.
Responding to questions raised by Opposition MPs Rohitha Abeygunawardena and Ajith P. Perera, Minister Rathnayake also claimed that the Rajapaksa associates had obstructed the construction of several other approved service areas along the expressway.
He said that the Southern Expressway project suffered from serious irregularities, including deviations from feasibility studies, which he said led to the wastage of billions of rupees.
Highlighting specific discrepancies, the Minister pointed to the construction of two interchanges that were not part of the original expressway blueprint.
“One is at Kapuduwa, just 5 km from Godagama in Matara, serving only traffic to and from Colombo. The other is at Bedigama, 6 km from Beliatta,” he said, adding that each interchange cost over Rs. 10 million to build.
By Saman Indrajith
News
Hike in bus fares if Israel-Iran conflict results in higher fuel prices

A hike in private bus fares could be on the cards next month if global fuel prices continue to climb as a result of the ongoing Israel-Iran conflict, according to Lanka Private Bus Owners’ Association (LPBOA) President, Gemunu Wijeratne.
Wijeratne told The Island yesterday (20), that the annual bus fare revision, scheduled for the 1st of next month, could lead to a revision in fares, should fuel prices in the global market remain on an upward trajectory.
He said that while fuel prices are already high due to the prevailing geopolitical tensions, the Association is cautious about pushing for a fare increase immediately, warning that such a move could adversely affect the industry in the current economic climate.
However, Wijeratne emphasised that if international fuel prices stabilise and remain at their present levels, a fare hike may not be necessary.
“The situation is being closely monitored. We hope that the global market stabilises, but if fuel prices continue to rise, we will have no choice but to adjust fares accordingly,” he added.
By Pradeep Prasanna Samarakoon ✍️
News
Committee probing alleged abuse of power by IGP approves inclusion of two additional witnesses, currently abroad

The Committee of Inquiry investigating allegations of gross abuse of power by IGP Deshabandu Tennakoon convened for the fourth consecutive day on Thursday, under the Chairmanship of Supreme Court Justice Preethi Padman Surasena. The Committee also includes Justice W.M.N.P. Iddawala and E.W.M. Lalith Ekanayake, Chairman of the National Police Commission, the Parliament Media Division said.
It said that as of Thursday, 28 prosecution witnesses have testified before the Committee, including seven on that day (Thursday).
The Committee has also approved the inclusion of two additional witnesses, currently abroad on official duty, to testify after their return to the country on 26 June. This request was submitted by Additional Solicitor General and President’s Counsel Dileepa Peiris, and Deputy Solicitor General Rajitha Perera, representing the Attorney General’s Department.
Attorney-at-Law R.S. Weerawikrama, appearing on behalf of IGP Tennakoon, gave his consent for the two witnesses to be summoned for examination and cross-examination upon their return. The Committee granted the request.
Although initially scheduled to reconvene yesterday (20), proceedings have been postponed to Monday, 23 June, following a request by Weerawikrama to allow additional time to prepare the IGP’s defence. With the Attorney General’s Department not objecting, the Committee approved the postponement.
The next sessions will be held from 23 to 25 June, commencing at 9:30 a.m. daily. During this period, 15 witnesses are expected to testify on behalf of the Respondent IGP.The Committee will reconvene again at 2:00 p.m. on Thursday, 26June, following the conclusion of the defense’s witness testimonies.
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