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Editorial

Income tax

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It is very clear at present that the new income tax net cast by the Ranil Wickremesinghe government has provoked a situation that may well become unmanageable and ominous signs of this are clearly emerging. Strident protests from groups including doctors, university academics and others including port and airport employees and many others have been becoming increasingly strident over the past several days. Hints of direct trade union action, obviously meaning strikes, have been made. Whether a government, already on the back foot following Inter University Students’ Federation (IUSF) Convenor Vasantha Mudalige’s release on bail and angry public opinion railing against blatant efforts to postpone the scheduled local elections. can fend off the tax protests remains to be seen.

All those protesting on this account well know that the government is desperately cash strapped and needs to urgently harness revenue to keep the wheels of state turning. On its part, the government also is too well aware of the inability of most of the protesters to bear the new income tax burden in the face of galloping inflation, particularly food, electricity and a host of other goods and services are concerned. But there is very little that it can do about it. Wickremesinghe’s and his government’s obdurate refusal to abandon or cut down on Saturday’s 75th Independence anniversary bash, said to have cost Rs. 200 million, has only aggravated public fury about the new income tax burden placed upon the people.

The very small number of personal income tax payers in this country have always felt unfairly treated, believing they have been singled out for harsh treatment while the vast majority remained untouched. They could not be more wrong. All the people of the country pay taxes and how! As one famous newspaper editor of the past pungently put it, “every time you strike a match or flush the toilet, you are paying a tax.” We all know the platitude that the only thing that is certain in life is death and taxes. Indirect taxes unlike those that are direct (like income tax) by far account for the lion’s share of tax revenue. Populations of developed countries, particularly in Europe and North America, pay high income taxes. But they, unlike us in Sri Lanka, get good returns for what they pay. We, in this land like no other, can only grin cynically when we see signs proclaiming “Your tax rupees at work” at road digs and construction sites and think “like hell” to ourselves.

Equity is a basic principle of taxation long ignored in this country. Go back to 1977 and the early years of opening our long shackled economy by the J.R. Jayewardene government with Ronnie de Mel as finance minister. That was when public service emoluments were freed of income tax on the argument that top public servants were paid much less than their private sector counterparts and this hindered government’s ability to hold competent managers in the public sector hierarchy. The contention was not altogether without merit but there were many fallacies as well. Public servants from the colonial days have enjoyed non-contributory pensions which is not the case (with very few exceptions) in the private sector. Dr. N.M. Perera, as finance minister in Mrs. Bandaranaike’s United Front government of 1970 tried, without success, to withdraw the pension benefits from new entrants to the public service. He sensibly proposed that they be paid a retirement benefit like what is offered by the EPF to private sector employees with contributions from both employer and employee. The failure of this effort has left a ticking time bomb on the taxpayer’s lap to this day.

At a post-budget press conference following freeing public sector salaries from income tax, then Finance Minister De Mel was asked whether parliamentary emoluments too would be similarly exempted. He ducked the question saying “that hasn’t been decided yet.” Of course the benefit was extended to MPs too. Cabinet Spokesman Bandula Gunawardene told a post-cabinet news briefing a few days ago said that the IMF wanted all those earning Rs. 45,000 a month to be made liable to income tax. The government tried its best to push it to a monthly Rs. 150,000 and finally settled at Rs. 100,000. There were those who didn’t believe the minister on the premise that an institution like the IMF would not have got into micro details but would have broadly prescribed a percentage of GDP that must be gathered as tax revenue. However it wasn’t long before the president himself confirmed Gunawardene’s claim.

There’s no avoiding the reality that Sri Lanka’s income tax base is far too narrow and needs to be widened substantially. This would mean that people who have never paid income tax would caught up in the tax net and would deeply resent being compelled to pay. This is particularly so in the context of the value of money reducing sharply, most so in recent months. The country is also saddled with an Inland Revenue Department entrenched in a tradition of harassing already squeezed lemons to increase tax collection in a society where evasion is widely prevalent, often among professionals who should know better. The government must also be cognizant of the untaxed, lavish non-cash benefits of politicians deeply resented by the people. However that be, whether the government will be allowed to implement the announced scheme or be compelled to backpedal remains to be seen.



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Editorial

When the US blocks UN gates in NY

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Saturday 19th September, 2026

The US has refused to grant Palestinian President Mahmoud Abbas a visa to attend the UN General Assembly in New York next week, according to a BBC report. Washington claims that it has denied visas to Palestinian representatives, including Abbas, for their failure to live up to peace process commitments. Sanctions were initially imposed in August last year, when 80 Palestinian officials were denied visas for the annual UN meeting in New York, BBC report says.

The US has accused the Palestinian Authority and the Palestine Liberation Organisation of “glorifying terrorism” and attempting to “internationalise” the Israeli-Palestinian conflict. It is laughable that such concerns about peace have been raised by the US, which has made six major military interventions commonly known as wars since 1945, namely, Korean War (1950–53), Vietnam War (major US combat involvement, 1964–73), Gulf War (1990–91), Afghanistan War (2001–21), Iraq Invasion (2003–11), War against ISIS in Iraq and Syria (from 2014), Libya engagement and the ongoing Iran war.

Interestingly, the Trump administration has granted Iranian leaders visas to attend the UN summit. A State Department Spokesman is reported to have said that a core delegation from Iran will be allowed to attend the summit in line with the United States’ obligations as the UN host country. Iranian President Masoud Pezeshkian and Foreign Minister Abbas Araghchi are expected to be granted US visas.

Aren’t the US obligations as the UN host country applicable to Palestine? The Palestinian Foreign Ministry has called the visa sanctions “an unjustified measure that runs counter to efforts to rebuild trust, develop Palestinian-US relations, and create the necessary political climate for implementing the two-state solution and achieving peace and stability”. It has vehemently rejected the long-held accusations by the Trump government and Israel, noting that Palestine has a right to seek accountability against an occupying force under international law.

One may recall that the UN had to contend with a similar issue in 1988; over a statement concerning Yasser Arafat’s visa, the UN Legal Counsel stated that the 1947 UN-US Headquarters Agreement gives persons, covered by Section 11, an “unrestricted right” to enter the US for the purpose of UN proceedings. The US maintained that its law preserved its authority to exclude persons on national security grounds. The UN Legal Counsel responded that there was a difference of opinion between the UN and the US concerning the legal character and validity of that US security reservation.

The Headquarters Agreement has created a special treaty-based obligation concerning the entry and transit of accredited representatives of UN member states attending official UN business. It establishes the protection against impediments to transit, and its Section 13(a) specifically says immigration laws must not interfere with that protection and requires US visas, where necessary, to be issued promptly and free of charge. Section 12 of the Agreement specifically states that the US authorities must provide necessary protection to such persons while they are travelling to or from the UN Headquarters district, and this provision applies regardless of the relationship between the person’s government and the US. The Agreement however does not give UN representatives unrestricted freedom to visit other parts of the US unless such travel is for official UN meetings or official UN business.

There have been only half-hearted attempts to address the issue of access restrictions imposed by the US on some accredited representatives of UN member states, seeking to attend UN proceedings. It is time the UN stopped dilly-dallying and grasped the nettle. It should ensure that UN representatives attending the UN General Assembly and other official events of the world body are not left at the mercy of Washington. But who will bell the cat?

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Editorial

Battling congestion in urban centres

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The Colombo District Development Committee (CDDC), at a recent meeting chaired by Prime Minister Dr. Harini Amarasuriya, has stressed the need for a comprehensive public parking plan and proposed multi-storey parking structures to ease severe congestion, exacerbated by the proliferation of commercial establishments in areas, such as Nugegoda. The committee has also discussed the issue of congestion near schools in Colombo city. Parking facilities are vital to any traffic management plan, but they alone do not help tackle congestion, which mainly results from the way existing road space is used and the interaction among through traffic, local traffic, pedestrians, parking and public transport, as experts have pointed out.

Traffic congestion in urban centres continues to worsen as successive governments have failed to implement a holistic approach to tackling the problem. There have been only piecemeal solutions.

Traffic congestion is multifactorial, and several key causative factors that have been identified and solutions proposed by experts over the years. The World Bank has pointed out that the growth of private vehicle ownership is a principal cause of congestion in Colombo. Deficiencies in public transport are driving the public towards private transport. Buses and trains are unreliable, uncomfortable or poorly coordinated.

Major roads carry both through traffic as well as traffic whose destination is somewhere along them, creating unnecessary interaction between different types of vehicular movement. A World Bank assessment identifies the lack of orbital links and secondary roads as a weakness in Colombo’s road infrastructure. This holds true for other urban centres as well.

Too many intersections are another problem. At every junction, vehicles entering from side roads, particularly those turning right across the main traffic stream, interrupt through traffic. Closely spaced intersections can therefore turn an otherwise adequate road into a sequence of bottlenecks. This problem has been tackled in the Kalutara town to a considerable extent; an uninterrupted central route runs through the town, with parallel roads providing local access. Local turning and stopping movements are prevented from repeatedly disrupting through traffic. There is a need to redesign junctions, coordinate signals, improve lane discipline and use modern traffic-management systems.

On-street parking and vehicles stopping on the carriageway also contribute to congestion. This is a particularly avoidable cause of congestion, as the CDDC has rightly observed at the aforementioned meeting. The World Bank has specifically identified “inadequate parking facilities” as a contributor to street congestion, noting that traffic lanes are blocked by double parking. Roadside commercial activity and encroachment have also been identified as one of the main causes of congestion. Shops, vendors, loading and unloading, parking, etc., effectively reduce the usable width of a road in a busy urban area.

Weak enforcement has resulted in illegal parking, stopping, turning and other violations that reduce the capacity of any road. Experts have called for consistent enforcement of traffic regulations, supported, where appropriate, by cameras. Lack of discipline among all road users, especially heavy vehicle and trishaw drivers and motorcyclists, is responsible for ever-worsening road chaos. This aspect of the problem too needs to be addressed.

Haphazard, large developments generate enormous additional traffic if they are concentrated around already congested roads or junctions. Nugegoda is a case in point. High-rise apartment complexes are mushrooming in Colombo even on narrow lanes. How such building plans pass muster with municipal and urban development authorities defies comprehension.

There have been several major transport studies and master plans to tackle congestion and related transport issues. If the incumbent government is keen to make roads less chaotic and prevent avoidable waste of fuel and manhours, it can commission a follow-up study to review and update the findings of the previous ones and formulate a comprehensive strategy to ease congestion.

It is believed that congestion costs Sri Lanka tens of billions of rupees a year and wastes millions of productive man-hours, with estimates ranging from about Rs. 32 billion in Greater Colombo in 2009 to more than Rs. 200 billion annually in a more recent estimate.

Expressways have benefited the country, and the current government has unveiled an ambitious plan to build some more. New expressways may be built, but the government ought not to lose sight of the need to develop the other roads characterised by congestion and delays.

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Editorial

Patriots, terrorists and succour for terror

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Thursday 17th September, 2026

The police have been grappling with a chronic manpower shortage, but they have not allowed it to stand in the way of investigating Opposition politicians. They are going to probe an NGO activist’s complaint that the LTTE, a banned organisation, was ‘promoted’ at a recent SLPP rally in Anuradhapura, according to media reports. Presumably, the complaint is about Jaffna District MP Ramanathan Archchuna’s admission during his speech at the SLPP rally on 12 Sept., that he was a Tiger (LTTE member).

If the police launch an investigation into MP Archchuna’s statement at issue, they should also probe some serious allegations he made against the incumbent government, especially his claim that pro-LTTE groups residing overseas backed the JVP-led NPP’s election campaigns.

The JVP-NPP government is all out to paint a black picture of the SLPP as a party of rogues and pseudo-patriots in a bid to prevent nationalistic forces from rallying behind the Rajapaksas again. So, all signs are that the police will go the whole nine yards and probe MP Archchuna’s declaration that he is a ‘Tiger’, though this is not the first time he has said so. It is doubtful whether the JVP/NPP leaders will be able to portray themselves as patriots by causing legal action to be taken against Archchuna and the SLPP over his Anuradhapura speech.

All self-proclaimed patriots in Sri Lankan politics have demonstrated that they do not scruple to subjugate their ‘patriotism’ to political expediency. Real patriots do not abuse power, resort to violence or terrorism, suppress democracy, destroy state assets, steal public funds or indulge in bribery and corruption, do they?

A probe is currently underway into an allegation that the SLPP engineered the 2019 regime change with the help of the National Thowheed Jamaath (NTJ), which carried out the Easter Sunday carnage. On Tuesday (15) Additional Solicitor General Dileepa Peiris informed the Colombo Fort Magistrate’s Court that investigations had uncovered that a person named Alawdeen, the father-in-law of one of the Easter Sunday suicide bombers, had provided speedboats to Zahran and his associates to travel to India before the Easter Sunday terror attacks. Alawdeen’s daughter, who was married to the bomber, had been released from detention during the presidency of Gotabaya Rajapaksa, and Alawdeen had supported Rajapaksa’s election campaign, Peiris claimed. His allegation reminds us of Yusuf Mohamed Ibrahim, the father of two Easter Sunday suicide bombers, Inshaf and Ilham. Ibrahim has been a key suspect in the Easter Sunday bombing investigation, and his company was under investigation for its alleged role in supplying materials used in the Easter Sunday attacks. Investigators have revealed that one of the two Ibrahim brothers who carried out the terror attacks spent about Rs. 45 million on NTJ terror operations. Ibrahim was a JVP National List nominee in 2015.

The Rajapaksa family has been accused of securing the help of both northern terrorists and eastern terrorists to capture power. One may recall that it enlisted the support of former southern terrorists as well. The UNP accused Mahinda Rajapaksa of having won the presidency in 2005 by bribing the LTTE to call for a boycott of the 2005 presidential election, thereby preventing many Tamil voters, who were thought to be supportive of UNP candidate Ranil Wickremesinghe, from voting. Mahinda contested from the SLFP, which was backed by a collective of left parties, with the JVP leading his presidential election campaign from the front and making his victory possible. President Rajapaksa subsequently provided political leadership for defeating the LTTE.

The UNP cut secret deals with the LTTE. President Ranasinghe Premadasa donated arms, ammunition, building materials and money to the LTTE while it was fighting the Indian Peace Keeping Force. The TNA, created by the LTTE, announced the 2005 presidential election boycott in the LTTE-held areas, and acted as the LTTE’s mouthpiece in Parliament. In the 2010 presidential election, the TNA backed former Army Commander Gen. Sarath Fonseka, who contested from the New Democratic Front, supported by the JVP, the UNP, the SLMC, etc. The same UNP-led opposition alliance, backed by the TNA and the JVP, among others, supported Maithripala Sirisena’s successful presidential bid in 2015. The JVP is now facing allegations that it is shielding an Easter Sunday terror suspect (Ibrahim) and has secured the support of pro-LTTE groups to win elections.

Politicians are not alone in having double standards on terrorism. Some prominent religious leaders who publicly express their abhorrence of terrorism had no qualms about meeting LTTE leaders, including Prabhakaran, and posing for photographs with them.

Nothing gives greater succour to terrorism than the hypocrisy of political and religious leaders.

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