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Is tax burden or responsibility – IV

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A preliminary policy outline to strengthen tax compliance and revenue sustainability in Sri Lanka

Since the introduction of mandatory tax registration for those earning over Rs. 100,000 per month, tax file numbers have grown significantly, from 437,547, in 2022, to 1,002,029 by the end of 2023. This is part of the government’s broader effort to increase state revenue as a percentage of GDP and stabilise the economy. However, according to another source, as of November 2023, Sri Lanka had approximately 500,196 registered individual taxpayers, marking a significant increase from 204,467 earlier that year. A spokesman had revealed that as of 2025 the number of active tax files as one million though. Given the country’s population of around 22 million, this equates to about 2.3% of the total population. Assuming a workforce of approximately nine million, the tax file coverage among the working population is roughly 5.6%.

This coverage is considerably lower than regional and global averages. In the Asia-Pacific region, the average tax-to-GDP ratio was 19.3% in 2022, while the OECD average stood at 34.0%. Although direct comparisons of taxpayer registration rates are limited, the low tax-to-GDP ratio in Sri Lanka suggests a narrower tax base, compared to these regions.

Sri Lanka’s recent initiative to recover LKR 780 billion in tax arrears—highlighted by the launch of ” The National Tax Week”—reflects a timely and urgent response to the country’s ongoing fiscal crisis. While such awareness campaigns are commendable, global evidence and comparative experiences suggest that they are insufficient on their own. Without addressing deeper structural issues, the impact is likely to be short-lived. This preliminary policy outline proposes an initial outline for comprehensive reform of the tax administration system. It emphasises the need to institutionalise legal clarity, build public trust, integrate modern technology, and implement responsive enforcement mechanisms as foundational pillars for achieving sustained tax compliance and effective revenue mobilisation.

Policy Problem

Sri Lanka’s tax system suffers from:

*  Extremely low tax file coverage— regional average of 19% in the Asia-Pacific and far behind the 35% average observed in advanced economies.

*  Extremely low collection targets

*  High evasion and avoidance rates

*  A weak enforcement culture

*  Limited digital integration

*  Public distrust in governance

*  Inadequate institutional autonomy

These issues have led to a disconnect between legal tax obligations and behavioural compliance, resulting in unsustainable collection costs and underperformance in revenue generation.

Policy Objectives

*  Increase voluntary and enforced tax compliance.

*  Set realistic collection targets

*  Mandatory tax identification number (TIN) linked with ALL business activities.

*  Modernise legal and technological frameworks.

*  Reduce the cost of tax collection while enhancing fairness and transparency.

*  Strengthen institutional capacity and public trust in tax governance.

Policy Recommendations

1. Strengthen Legal Frameworks Against Tax Avoidance

*  To expand tax file coverage, Sri Lanka should implement a phased strategy that combines mandatory tax identification number (TIN) and enhanced third-party data integration across public and private institutions—particularly targeting the informal sector and emerging professionals.

*  Enact robust General Anti-Avoidance Rules (GAAR).

*  Codify clearer distinctions between tax avoidance and tax evasion to support judicial consistency and deter strategic misreporting.

2. Invest in Digital Integration and Predictive Analytics

*  Build a fully integrated tax ecosystem linking registration, filing, audits, payments, and cross-agency data (e.g., Customs, Banking).

*  Utilise machine learning and predictive analytics to proactively flag high-risk taxpayers (as per OECD’s “Tax Administration 3.0” model).

*  Upgrade interoperability with other fiscal authorities to address discrepancies and automate compliance.

3. Expand Taxpayer Education Using Behavioural Insights

*  Institutionalise continuous taxpayer education beyond “Tax Week.”

*  Use behavioural economics—e.g., nudges, simplified messages, reminders, and peer-comparison framing—to influence compliance positively.

*  Target both formal and informal sectors with tailored communication strategies and multilingual outreach.

4. Enhance Institutional Capacity and Autonomy

*  Empower IRD staff with training programmes, and technical capacity through international partnerships (e.g., with OECD or IMF).

*  Establish a politically independent tax appeals tribunal with transparent, time-bound procedures.

*  Legislate operational autonomy for the IRD.

5. Implement a Tiered and Responsive Enforcement Strategy

*  Apply a “compliance pyramid” that begins with persuasion and escalates to sanctions and litigation only when required.

*  Publicise successful enforcement actions—especially involving prominent cases—to enhance deterrence and public credibility.

*  Streamline audit processes and adopt risk-based targeting to focus limited enforcement resources.

6. Promote Transparency and Anti-Corruption Reforms

*  Publish annual public expenditure and tax collection reports in accessible formats.

*  Conduct third-party audits and disclose outcomes to the public.

*  Strengthen anti-corruption agencies and promote institutional accountability to increase tax morale.

Sri Lanka can adapt more effective policies/principles contextually by aligning legal reforms, digital tools, and cultural communication within its local governance framework. (See Draft Action Plan.)

Implementation

*  Establish a cross-agency Tax Reform Steering Committee to oversee implementation progress, review quarterly reports, and recommend course corrections.

*  Engage independent auditors annually to assess performance and transparency.

The Tax Reform Steering Committee (TRSC) should be established to oversee the effective implementation of tax reform initiatives outlined in the government’s Action Plan. Its primary purpose is to provide strategic guidance, ensure coordination among key agencies, and monitor progress toward enhancing revenue collection and improving tax administration. The committee will focus on strengthening legal and institutional frameworks, promoting digital infrastructure, improving taxpayer education, and ensuring effective enforcement and governance.

Key responsibilities include tracking reform milestones, facilitating cooperation between the Inland Revenue Department, Ministry of Finance, Customs, Justice, and other stakeholders, identifying and addressing challenges, promoting transparency, and reviewing progress to inform policy adjustments. The TRSC will be chaired by the Ministry of Finance and includes senior representatives from relevant government departments and advisory input from civil society. It will meet quarterly, report annually to the finance minister, and operate for at least three years, with administrative and financial support from the Ministry of Finance and potential donor funding.

Complementing this, a targeted communication plan aims to build public awareness, encourage voluntary compliance, set realistic collection targets and foster stakeholder engagement. Messaging focuses on fairness, simplification of compliance, support for taxpayers, and the government’s commitment to tackling tax evasion. The campaign will use mass media, digital platforms, community outreach, and direct communication tools. Activities include a national awareness campaign, annual Tax Week events, regular social media engagement, stakeholder forums, and transparent public reporting, all designed to support the successful rollout of tax reforms.

Monitoring and Evaluation

*  Track media reach and public engagement metrics (e.g., social media analytics, event attendance).

*  Conduct periodic surveys to assess taxpayer awareness, attitudes, and satisfaction.

*  Review feedback from stakeholder consultations to adapt communication strategies.

*  Report findings to the Tax Reform Steering Committee for continuous improvement.

While initiatives like Tax Week are commendable, Sri Lanka must move beyond campaign-style tax collection toward an integrated, rules-based, and behaviourally-informed system. A modern tax regime is not merely a technical instrument but a reflection of the state’s governance quality, fairness, and legitimacy. This preliminary draft proposal urges the government to embed fairness, digitalisation, and institutional integrity into tax reform to ensure long-term economic resilience and inclusive development.

(The writer, a senior Chartered Accountant and professional banker, is Professor at SLIIT, Malabe. He can be contacted at saliya.a@slit.lk and www.researcher.com)



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The iconic Roger Federer: The Full Measure of a GOAT

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Roger Federer

There is an unending debate about the Greatest of All Time (GOAT) of the global sport of tennis. The debate is on, as to which one is the GOAT of the players of the “Big Three” era. Those three are Novak Djokovic, Rafael Nadal and Roger Federer. All three were very prominent figures in that period. Their intense rivalries pushed the sport to new heights and captivated millions of people in a global audience, thereby significantly increasing tennis’s popularity. However, of the three, Roger Federer was a rather central figure.

Federer’s list of tennis accolades is staggering, and his greatness is often reduced to headlines and statistics: 20 Grand Slam titles, including a record eight Wimbledon singles crowns, 103 Association of Tennis Professionals Tour Singles titles, and 237 consecutive weeks atop the world rankings. He is well-known for his fabulous all-court game, and he is one of only four players to have won a career Grand Slam on three different surfaces: hard, grass, and clay.

His career is marked by remarkable consistency, including reaching 10 consecutive Grand Slam finals and 23 consecutive Grand Slam semifinals. Federer’s game was often described as graceful, effortless, and artistic. His fluid movement, powerful forehand, and elegant one-handed backhand made him a joy to watch for fans worldwide. He redefined modern tennis with his blend of power and finesse. Yet for all that, beneath the elegance of his backhand and the sheen of trophies lies a deeper heritage; one that elevates him from tennis legend to a true Great Of All Time.

Federer views these achievements as milestones, not the destination. He has always emphasised relationships, gratitude, and giving back, values instilled by his South African mother, Lynette, and nurtured over a lifetime of turning success into service. His effortless finesse and mental fortitude created ballet on grass and clay; moments etched forever in sporting memory. But narrowing Federer’s story to courts and scores does him a disservice.

Federer’s South African heritage cultivated a profound connection to the continent. He holds dual Swiss and South African citizenship and has frequently returned to support earlychildhood education via the Roger Federer Foundation, impacting over two million children across Southern Africa. More than just funding, Federer has rolled up his sleeves, visiting rural schools, launching coaching clinics, and advocating for play-based learning. Philanthropy is woven into Federer’s identity just as deeply as tennis. As he once said, “greatness is not confined to silverware; it lives through the lives we touch“.

Among his lesser-known acts of compassion is one of the most profound. It was in 2005 when Federer was fast turning into a tennis sensation, that he found twin infant girls abandoned outside a health clinic during a charity trip to a remote village in South Africa. The man did not walk away. Moved by their vulnerability, he quietly ensured their care and education, funding their essentials through a foundation partner. He did this without fanfare or media attention, and no publicity followed.

Fast forward to July 11, 2025. At a gala event in Geneva celebrating Federer’s stellar career, two young women took to the stage. It was the same pair of South African twins, now in their early 20s, returning to honour the man who saved them.

Rafael Nadal

Novak Djokovic

The sisters spoke with composed gratitude: “We do not remember being abandoned as infants. But we remember being saved. And the man who saved us is sitting right here tonight.”

Then came their own act of generosity. They said, launching a scholarship fund under Roger Federer’s name, to support rural children, “It is dedicated to helping underprivileged children in rural areas gain access to sports and education, the very things Roger had given us. It is our turn to give back, just as Roger gave to us, without expecting anything in return.” A visibly emotional Federer was left speechless before he gathered himself and said in a shaky voice, “I thought I was just helping two lives.

I had no idea they would come back and inspire the world.” That moment, a twin act of kindness born and returned, was described as “grander than all the 20 Grand Slam titles… one of the most powerful moments in tennis history“. That evening rippled globally, it flew virally across social media, confirming that character can outrank championship counts.

Off the court, Federer’s family life is rich and intentional. Married since 2009 to former player Mirka Vavrinec, they have four children: twin daughters Myla Rose and Charlene Riva (born in 2009) and twin sons Leo and Lenny (born in 2014). Their household, brimming with two sets of twins, reflects unity, resilience, and love, values the Father and Mother Federer’s cherish.

If tennis is art, then Federer’s philanthropy is impact. His “Match for Africa” series: exhibition matches featuring Nadal, Murray, and Gates, has generated over 12 million US dollars to support education in Africa. Beyond big events, his foundation has supported earlychildhood programmes in six countries, deployed digital teaching tools and training tablets for educators, and engaged communities and governments to bolster preschool readiness. These are not just token gestures; they are sustained efforts that aim to change systems, not just headlines. He privately supports coaching and education in African villages: a lyrical service that mirrors his gameplay: smooth, reliable, and deeply invested.

In his understated way, Federer has consistently reinforced kindness and integrity. He funds an elderly couple every Australian Open; the parents of his first coach, late Peter Carter, covering flights, hospitality, and box seats, every year, since 2005. Federer has never forgotten the Carter family’s role in his life and career.

These gestures resonate because they are personal, respectful, and ongoing. They speak of a man who remembers where he came from, on and off the court, and who sees grand gestures in the small, consistent acts of humanity.

When discussing Federer as the GOAT, numbers will take you so far. But greatness also measures intangible things: compassion, humility, and legacy. What Federer did for those abandoned twins, and how they returned that grace, reveals more about his character than any gold trophy could. It is easy to point to “trophies won” as the final verdict. But Federer’s life story adds nuance: identity, empathy, and generosity, which truly elevate his accomplishments to a celestial level. His Wimbledon stamps, Swiss coins, and honorary degrees are symbols. The real trophy is the networks of lives he has touched: the rescued twins, African children on new educational pathways, and the families of those who supported him along the way.

Roger Federer’s journey from a junior champion to a record-breaking legend serves as a benchmark for aspiring tennis players and inspires millions around the world to aim for greatness while remaining grounded. In essence, his legacy celebrates not just a phenomenal tennis player but a true sporting icon who left an indelible mark on the game through his achievements, style, character, and humanitarian efforts.

In the court of moral measure, Federer is undisputed. His twin daughters and twin sons will grow up knowing that their father is more than a record-holder. He is a man defined by action. The twins in South Africa, now embroidering his legacy with their own generosity, complete a cycle: champions saved, and champions paid forward.

Yes, Roger Federer is the tennis GOAT. But he’s also the GOAT of genuine kindness, empathy, and impact. That, ultimately, is why the story of greatness cannot, and should not, be limited to statistics alone.

Role models are remembered, not just for what they win… but for the gratitude they inspire, the opportunities they create, and the kindness they live out.

The story of the South African abandoned twins was garnered from the News Arena Network – Geneva through News Arena India on 14th July 2025.

by Dr B. J. C. Perera ✍️
(Tennis Player)

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A book on iconic Sri Lankan poems

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Lakdasa Wikkramasinha

(1941-1978) has been acknowledged as one of the finest Sri Lankan poets writing in English. The Sri Lankan born Booker Prize winner Michael Ondaatje says Wikkramasinha has written “some of the most permanent and iconic poems of this country”.

In a period spanning only thirteen years before his untimely death, Wikkramasinha published six collections of his English poems (and two collections of Sinhala poems as well).

Rage and Heartbreak fulfills the pressing need for a collection of critical writings on Wikkramasinha’s poetry. Essays authored by Gamini Haththotuwegama, Lilani Jayatilaka, Annemari de Silva, Nihal Fernando, Vihanga Perera, Madri Kalugala, Chandana Dissanayake, Nipuni Ranaweera, and George Braine are followed by Indrakanthi Perera’s brief memorial.

Most authors are practicing or retired academics, mainly in English literature. Some are published poets.

Rage and Heartbreak is published by Tambapanni Academic Press and priced at Rs. 3000/.

Vihanga Perera (Ph.D., Australian National University) is an academic and researcher working at the Department of English, University of Sri Jayawardenapura. He is also a poet and novelist, an arts critic, and editor of creative work. He is a recipient of the Gratiaen Prize and the State Literary Award.

George Braine (Ph.D., The University of Texas at Austin) taught English in four countries before retiring from The Chinese University of Hong Kong. He was acquainted with Lakdasa Wikkramasinha in the 1970s.

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Babies made using three people’s DNA are born free of hereditary disease

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Eight babies have been born in the UK using genetic material from three people to prevent devastating and often fatal conditions, doctors say.

The method, pioneered by UK scientists, combines the egg and sperm from a mum and dad with a second egg from a donor woman.

The technique has been legal here for a decade but we now have the first proof it is leading to children born free of incurable mitochondrial disease.

These conditions are normally passed from mother to child, starving the body of energy.

This can cause severe disability and some babies die within days of being born. Couples know they are at risk if previous children, family members or the mother has been affected.

Children born through the three-person technique inherit most of their DNA, their genetic blueprint, from their parents, but also get a tiny amount, about 0.1%, from the second woman. This is a change that is passed down the generations.

None of the families who have been through the process are speaking publicly to protect their privacy, but have issued anonymous statements through the Newcastle Fertility Centre where the procedures took place.

“After years of uncertainty this treatment gave us hope – and then it gave us our baby,” said the mother of a baby girl. “We look at them now, full of life and possibility, and we’re overwhelmed with gratitude.”

The mother of a baby boy added: “Thanks to this incredible advancement and the support we received, our little family is complete.  “The emotional burden of mitochondrial disease has been lifted, and in its place is hope, joy, and deep gratitude.”

Mitochondria are tiny structures inside nearly every one of our cells. They are the reason we breathe as they use oxygen to convert food into the form of energy our bodies use as fuel.

Defective mitochondria can leave the body with insufficient energy to keep the heart beating as well as causing brain damage, seizures, blindness, muscle weakness and organ failure.

About one in 5,000 babies are born with mitochondrial disease. The team in Newcastle anticipate there is demand for 20 to 30 babies born through the three-person method each year.

Some parents have faced the agony of having multiple children die from these diseases.

Mitochondria are passed down only from mother to child. So this pioneering fertility technique uses both parents and a woman who donates her healthy mitochondria.

The science was developed more than a decade ago at Newcastle University and the Newcastle upon Tyne Hospitals NHS Foundation Trust and a specialist service opened within the NHS in 2017.

Graphic showing a red circular representation of an embryo with unhealthy, oval, mitochondria inside that has the nuclear material - a joined pair of circles - removed. The next step is blue representing a healthy donor with healthy mitochondria and their nuclear material is also removed. Step three shows the nuclear material removed in step 1 being placed inside the healthy embryo

There was a case of epilepsy, which cleared up by itself and one child has an abnormal heart rhythm which is being successfully treated.

These are not thought to be connected to defective mitochondria. It is not known whether this is part of the known risks of IVF, something specific to the three-person method or something that has been detected only because the health of all babies born through this technique is monitored intensely.

Another key question hanging over the approach has been whether defective mitochondria would be transferred into the healthy embryo and what the consequences could be.

The results show that in five cases the diseased mitochondria were undetectable. In the other three, between 5% and 20% of mitochondria were defective in blood and urine samples.

This is below the 80% level thought to cause disease. It will take further work to understand why this occurred and if it can be prevented.

Getty Images An orange sausage shaped blob on a blue grainy background
A picture of a mitochondrion taken with a microscope – there are up to half a million in a fertilised egg. [BBC]

Prof Mary Herbert, from Newcastle University and Monash University, said: “The findings give grounds for optimism. However, research to better understand the limitations of mitochondrial donation technologies, will be essential to further improve treatment outcomes.”

The breakthrough gives hope to the Kitto family.

Kat’s youngest daughter Poppy, 14, has the disease. Her eldest Lily, 16, may pass it onto her children.

Poppy is in a wheelchair, is non-verbal and is fed through a tube.

“It’s impacted a huge part of her life,” says Kat, “we have a lovely time as she is, but there are the moments where you realize how devastating mitochondrial disease is”.

BBC/Josh Elgin Kat Kitto, sitting on a grey corner sofa wearing a black vest top, with her daughter Lily who is wearing white. Kat is feeding Monty, a ginger coloured long-haired dog, who is sitting on Lily's legs
Kat Kitto (R) in black top with her daughter Lily and Monty the dog [BBC]

Despite decades of work there is still no cure for mitochondrial disease, but the chance to prevent it being passed on gives hope to Lily.

“It’s the future generations like myself, or my children, or my cousins, who can have that outlook of a normal life,” she says.

The UK not only developed the science of three-person babies, but it also became the first country in the world to introduce laws to allow their creation after a vote in Parliament in 2015.

There was controversy as mitochondria have DNA of their own, which controls how they function.

It means the children have inherited DNA from their parents and around 0.1% from the donor woman.

Any girls born through this technique would pass this onto their own children, so it is a permanent alteration of human genetic inheritance.

This was a step too far for some when the technology was debated, raising fears it would open the doors to genetically-modified “designer” babies.

Prof Sir Doug Turnbull, from Newcastle University, told me: “I think this is the only place in the world this could have happened, there’s been first class science to get us to where we are, there been legislation to allow it to move into clinical treatment, the NHS to help support it and now we’ve got eight children that seem to free of mitochondrial disease, what a wonderful result.”

Liz Curtis, the founder of the Lily Foundation charity said: “After years of waiting, we now know that eight babies have been born using this technique, all showing no signs of mito.

“For many affected families, it’s the first real hope of breaking the cycle of this inherited condition.”

[BBC]

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