Features
Property tax: a new tax Sri Lanka is going to be introduced in 2027
Expanded budget deficits and continuous borrowing by successive governments pushed the Sri Lankan economy into a recession. These heavy borrowings placed a significant burden on the shoulders of today’s citizens. The previous government was compelled to seek assistance from the IMF to revive the economy, which led to increased tax rates, a broader tax base, and the introduction of new taxes. The present NPP government has introduced some tax revisions. However, it too must increase revenue in order to address the economic crisis and promote sustainable growth. This is why the country is going to introduce property tax in 2027. In other words, the government’s tax demand increases in the near future. This note is to provide a brief introduction on property tax that we will have to pay.
Property tax
Governments may impose various types of taxes, though some countries choose not to levy certain kinds. Property tax is no exception. After considering the taxation of income and expenditure, many countries also tax stocks of wealth. Such taxes may be imposed on individual pieces of property—payable by the owner and classified as impersonal in rem taxes (those imposed on objects or activities)—or on the total property holdings or net worth of a person, making them personal taxes.
When we hear the word property, the related concept of wealth also comes to mind. However, there is a distinction between property tax and wealth tax. Property tax generally applies to real property, while wealth tax is levied on total net wealth (all assets minus liabilities). Some countries, such as Spain, Switzerland, Norway, and France, impose both taxes simultaneously. Property tax, however, is widespread globally, though it remains relatively novel in Sri Lanka. Property tax is generally divided into two categories: real property taxes and personal property taxes, both of which are often referred to as ad valorem taxes (taxes based on the value of property).
Real property (realty) is defined as land and whatever is erected or growing on the land or permanently affixed to it. It also includes subsurface features such as mineral deposits. Real property taxes are levied on the ownership of land and buildings, with the tax base being the property’s monetary value. Because real estate cannot be moved or hidden, and its ownership is a matter of public record, it provides governments with a highly reliable tax base. These taxes are typically assessed annually, based on market value as determined by local authorities. Elected or appointed officials are responsible for valuing the property and notifying owners of the assessed amount. A distinctive feature of real property taxes is that the tax rate is set each year according to the jurisdiction’s revenue needs for that budget cycle.
Personal property, in contrast, refers to any asset that is not real property. Like real estate, personal property is taxed based on its value, but unlike real property, its value is usually not assessed by government officials. Instead, individuals and businesses must determine the value of their taxable assets and report it to the tax assessor. Taxable personal property generally falls into three categories: household tangibles, business tangibles, and intangibles. Household tangibles commonly taxed include automobiles, recreational vehicles, pleasure boats, and private aircraft. Business tangibles include inventory, furniture, fixtures, machinery, and equipment. Intangible assets most often subject to tax are marketable securities such as stocks and bonds.
Determination of tax rate
An individual’s property tax liability is calculated as the product of the tax rate and the property’s assessed value—the value assigned by the local authority. In most cases, jurisdictions (local authorities) attempt to align assessed values with market values. However, if a property has not been sold recently, its market value may be unknown, requiring the tax authority to estimate based on the market values of comparable properties. The degree of divergence between market and assessed values depends on the accuracy of the estimating process.
Empirical evidence shows that many jurisdictions perform poorly in assessing property values, leading to situations where properties subject to the same statutory tax rate face vastly different effective tax rates. In the United States, for example, thousands of jurisdictions operate their property tax systems independently. None include a comprehensive measure of wealth in their tax base, and there are significant differences in what types of property are excluded and what tax rates are applied.
Some communities grant preferential treatment to new business facilities to encourage investment, while few tax personal wealth beyond homes. Assets such as cars, jewelry, and financial securities are usually exempt. Generally, structures and the land on which they are built form the core of the property tax base, though effective rates vary widely across jurisdictions.
For businesses, calculating property taxes can appear complex, but with the right tools and a sound understanding of the fundamentals, the process becomes more manageable. The cornerstone is determining the assessed value, typically carried out by a government assessor who evaluates factors such as land, buildings, and improvements. Equally important is establishing the tax rate, commonly referred to as the mill rate. The mill rate represents the amount of tax owed per Rs.1,000 of assessed property value and is determined annually by local authorities in line with revenue requirements.
Reasons to pay
There are several theoretical bases for imposing taxes. One rationale for wealth taxation is the benefit principle: public services, such as road modernisation, increase the value of real property and should therefore be financed by property owners. This argument can be traced back to seventeenth-century natural-law theorists, who viewed one of the state’s primary functions as the protection of property. From this perspective, property owners are obliged to contribute toward the state’s expenses. Logically, such reasoning supports a comprehensive tax base that includes all forms of property—both tangible and intangible.
Property tax can also be understood as a user fee, since communities rely on it to finance essential public services such as education, healthcare, and policing. In this sense, the tax is not merely a levy but the cost of accessing and maintaining vital services that benefit society as a whole. Beyond theory, Sri Lanka faces practical imperatives for broadening its tax base and strengthening its fiscal framework. Expanding property taxation could play a critical role in addressing the country’s debt crisis while fostering long-term economic growth and development.
Impact, incidence and effects of the tax
The impact of a tax refers to its first point of contact with taxpayers—that is, the person who initially pays it. In the case of property tax, the legal liability usually falls on the property owner. Local governments assess the value of land and improvements, and the owner must pay tax based on this assessment. Thus, the immediate burden is borne by the property holder, whether an individual, household, or business. Because property taxes influence both investment and location decisions, most European countries allow businesses to deduct them: of the 27 that levy property taxes, 23 permit deductions from corporate income, thereby reducing the effective burden and encouraging investment.
The incidence of a tax, however, concerns who ultimately bears the economic burden after adjustments in behavior, prices, and markets. Although property owners are legally responsible, the real incidence may shift. Landlords may raise rents to pass part of the burden to tenants, while businesses may shift costs forward to consumers through higher prices or backward to workers through lower wages.
The question of who ultimately bears the burden of the property tax has long been debated. Three main perspectives can be identified: the traditional view, the capital tax view, and the excise-on-capital view. Under the first, property tax is seen as an excise tax on land and structures.
Since the supply of land is fixed, landowners cannot escape the tax and thus bear the full burden. In many cases, the tax becomes capitalized into land values: prospective buyers discount the purchase price to account for future tax liabilities. As a result, landowners effectively bear the tax indefinitely. Capital tax view holds that if property tax is treated as a uniform tax on all capital, then the entire burden falls on capital owners.
Since capital income is concentrated among higher-income households, property tax in this view is progressive, contradicting the traditional view. According to final view property tax rates, in practice, vary by jurisdiction and property type, meaning it functions as a set of excise taxes on capital. Capital tends to migrate from high-tax to low-tax areas until after-tax returns equalize. This reallocation affects returns to other factors of production depending on their mobility. Land, being immobile, cannot escape the tax, while less mobile forms of capital are more likely to bear the burden. Over the long run, even the overall supply of capital may respond to property tax rates.
Property taxes have a range of economic and social effects. Firstly property taxes provide a stable and predictable source of income for local governments, often funding essential services such as education, infrastructure, and public safety. Secondly, when designed well, property taxes can contribute to equity by taxing wealth more directly than income or consumption taxes. However, poorly assessed property taxes can be regressive, disproportionately affecting those with lower incomes relative to property value. Thirdly, property taxes on land are often considered efficient since land is immobile and cannot be hidden, making it a strong tax base.
Taxes on improvements (buildings) can, however, discourage investment in property development or maintenance. Fourthly, high property taxes may influence housing decisions, business location choices, or patterns of land use. Preferential rates or exemptions can also create distortions, such as attracting businesses or encouraging certain types of development. Fifthly, because property taxes are highly visible and often unpopular, they can provoke resistance from taxpayers, influencing local politics and policymaking.
Sixthly, as a tax on real estate, property taxation can distort economic choices. It may encourage substitution away from real property toward other inputs, or toward consumer durables in states where personal property is taxed less heavily. This can discourage housing production and consumption. Finally, property taxes may also affect location decisions. Since rates vary across communities, industries that rely heavily on real estate tend to locate in lower-tax areas. At the same time, businesses also weigh the public services financed by local property taxes when deciding where to operate.
Empirical evidence further illustrates these dynamics. In 2011, China introduced property taxes in Shanghai and Chongqing, targeting second homes and high-end properties. A 2021 study found little effect on housing prices, mainly due to the narrow tax base, low rate, and generous exemptions. By contrast, a German study (March 2021) found that higher property taxes were fully passed on to rental prices within three years, though the pass-through was weaker when housing supply was inelastic. More broadly, property taxes tend to be capitalized into purchase prices, lowering what buyers are willing to pay, while in rental markets, part of the burden may also be shifted to tenants.
Decisions to be made
Sri Lanka is expected to introduce a property tax in 2027. However, several key decisions must be made before implementation. First, which level of government will be responsible for imposing the tax? In many countries, property tax is administered by local authorities. In Sri Lanka, it must be decided which layer of government will have the authority to levy and collect the tax.
Second, the scope and rate of taxation must be determined. Property can take many forms, but for real property, land and buildings are the main categories. If buildings are included, should the tax apply to all types—including residential houses? Since houses vary greatly in size, facilities, and value, questions arise as to whether very small houses should be taxed. In some countries, only second or additional properties are taxed. With respect to land, it must be decided whether all types of land will be taxed. For example, paddy land presents a special case, as profit margins in paddy farming are often extremely low, or even negative. This calls for certain exemptions, deductions, or abatements. Common exemptions internationally include those for non-profit organizations, historical properties, or primary residences (homesteads).
Third, the treatment of depreciation and improvements must be clarified. Property assessors typically evaluate factors such as age, condition, and maintenance in determining depreciation, as well as any improvements or renovations that increase value. Since different assessors may apply varying standards, this can result in inconsistencies in assessed values.
Why is the property tax so unpopular?
Several explanations have been offered. Because housing transactions occur infrequently, property tax assessments are based on estimated values. If these valuations are inaccurate or biased, the tax is seen as unfair. The tax is also highly visible: unlike income and payroll taxes, which are withheld from wages and remitted by employers, property taxes are typically paid directly by homeowners, often in large quarterly or annual installments. These lump-sum payments can feel like a financial shock. Some property owners, particularly the elderly, do not have enough cash to make property tax payments and may therefore be forced to sell their homes. A high property tax rate also affects property values. Other things equal, a heavily taxed property will sell for less. This means that while current owners may feel burdened, new buyers are not necessarily worse off once the lower purchase price is taken into account.
One ambitious reform would be to replace the property tax with a personal net worth tax. This tax would be levied on the difference between the market value of all a taxpayer’s assets and liabilities. Unlike the property tax, such a system reflects a truer measure of ability to pay, since debts can be deducted. It would also allow for exemptions and progressive rates. However, because people often hold assets and debts across multiple jurisdictions, a net worth tax would need to be administered at the federal level.
Conclusion
Alongside the need to address technical and political barriers to reform, the construction of more effective property tax systems also depends on improving levels of tax compliance. A key foundation of compliance is the presence of credible and fair enforcement: few taxpayers will willingly comply if they believe there are no consequences for evasion or if they suspect their neighbours are not paying their fair share.
It is well known that taxes are unpopular. However, Sri Lanka needs to broaden its revenue base and is preparing to introduce a new tax in the near future. In the past, widespread corruption undermined public trust, and many citizens paid taxes reluctantly, while some were able to evade them altogether. Today, with corruption more effectively controlled and public confidence in government improving, the conditions are more favourable for introducing a property tax. Still, such a measure must be implemented carefully to maintain public support and fairness.
Importantly, property taxes are widely considered the least harmful form of taxation, as they have the smallest negative impact on household and business economic decisions compared to most alternatives. For example, in 2010 the OECD ranked tax instruments by efficiency, from most to least: property taxes, value-added tax (VAT), personal income tax, and corporate income tax.
by Dr. Tikiri Nimal Herath✍️
Emeritus Professor
tikiriherath@gmail.com
Features
Ukraine crisis continuing to highlight worsening ‘Global Disorder’
The world has unhappily arrived at the 4th anniversary of the Russian invasion of Ukraine and as could be seen a resolution to the long-bleeding war is nowhere in sight. In fact the crisis has taken a turn for the worse with the Russian political leadership refusing to see the uselessness of its suicidal invasion and the principal power groupings of the West even more tenaciously standing opposed to the invasion.
One fatal consequence of the foregoing trends is relentlessly increasing ‘Global Disorder’ and the heightening possibility of a regional war of the kind that broke out in Europe in the late thirties at the height of Nazi dictator Adolph Hitler’s reckless territorial expansions. Needless to say, that regional war led to the Second World War. As a result, sections of world opinion could not be faulted for believing that another World War is very much at hand unless peace making comes to the fore.
Interestingly, the outbreak of the Second World War coincided with the collapsing of the League of Nations, which was seen as ineffective in the task of fostering and maintaining world law and order and peace. Needless to say, the ‘League’ was supplanted by the UN and the question on the lips of the informed is whether the fate of the ‘League’ would also befall the UN in view of its perceived inability to command any authority worldwide, particularly in the wake of the Ukraine blood-letting.
The latter poser ought to remind the world that its future is gravely at risk, provided there is a consensus among the powers that matter to end the Ukraine crisis by peaceful means. The question also ought to remind the world of the urgency of restoring to the UN system its authority and effectiveness. The spectre of another World War could not be completely warded off unless this challenge is faced and resolved by the world community consensually and peacefully.
It defies comprehension as to why the Russian political leadership insists on prolonging the invasion, particularly considering the prohibitive human costs it is incurring for Russia. There is no sign of Ukraine caving-in to Russian pressure on the battle field and allowing Russia to have its own way and one wonders whether Ukraine is going the way of Afghanistan for Russia. If so the invasion is an abject failure.
The Russian political leadership would do well to go for a negotiated settlement and thereby ensure peace for the Russian people, Ukraine and the rest of Europe. By drawing on the services of the UN for this purpose, Russian political leaders would be restoring to the UN its dignity and rightful position in the affairs of the world.
Russia, meanwhile, would also do well not to depend too much on the Trump administration to find a negotiated end to the crisis. This is in view of the proved unreliability of the Trump government and the noted tendency of President Trump to change his mind on questions of the first importance far too frequently. Against this backdrop the UN would prove the more reliable partner to work with.
While there is no sign of Russia backing down, there are clearly no indications that going forward Russia’s invasion would render its final aims easily attainable either. Both NATO and the EU, for example, are making it amply clear that they would be staunchly standing by Ukraine. That is, Ukraine would be consistently armed and provided for in every relevant respect by these Western formations. Given these organizations’ continuing power it is difficult to see Ukraine being abandoned in the foreseeable future.
Accordingly, the Ukraine war would continue to painfully grind on piling misery on the Ukraine and Russian people. There is clearly nothing in this war worth speaking of for the two peoples concerned and it will be an action of the profoundest humanity for the Russian political leadership to engage in peace talks with its adversaries.
It will be in order for all countries to back a peaceful solution to the Ukraine nightmare considering that a continued commitment to the UN Charter would be in their best interests. On the question of sovereignty alone Ukraine’s rights have been grossly violated by Russia and it is obligatory on the part of every state that cherishes its sovereignty to back Ukraine to the hilt.
Barring a few, most states of the West could be expected to be supportive of Ukraine but the global South presents some complexities which get in the way of it standing by the side of Ukraine without reservations. One factor is economic dependence on Russia and in these instances countries’ national interests could outweigh other considerations on the issue of deciding between Ukraine and Russia. Needless to say, there is no easy way out of such dilemmas.
However, democracies of the South would have no choice but to place principle above self interest and throw in their lot with Ukraine if they are not to escape the charge of duplicity, double talk and double think. The rest of the South, and we have numerous political identities among them, would do well to come together, consult closely and consider as to how they could collectively work towards a peaceful and fair solution in Ukraine.
More broadly, crises such as that in Ukraine, need to be seen by the international community as a challenge to its humanity, since the essential identity of the human being as a peacemaker is being put to the test in these prolonged and dehumanizing wars. Accordingly, what is at stake basically is humankind’s fundamental identity or the continuation of civilization. Put simply, the choice is between humanity and barbarity.
The ‘Swing States’ of the South, such as India, Indonesia, South Africa and to a lesser extent Brazil, are obliged to put their ‘ best foot forward’ in these undertakings of a potentially historic nature. While the humanistic character of their mission needs to be highlighted most, the economic and material costs of these wasting wars, which are felt far and wide, need to be constantly focused on as well.
It is a time to protect humanity and the essential principles of democracy. It is when confronted by the magnitude and scale of these tasks that the vital importance of the UN could come to be appreciated by human kind. This is primarily on account of the multi-dimensional operations of the UN. The latter would prove an ideal companion of the South if and when it plays the role of a true peace maker.
Features
JVP: From “Hammer and Sickle” to Social Democracy – Or not?
The National People’s Power (NPP), led by the Janatha Vimukthi Peramuna (JVP), came to power promising democratic renewal and long-awaited economic, educational, healthcare, and social transformation. It pledged to build a modern Sri Lanka rooted in democratic values while steering the country toward its vision of Democratic Socialism. For many supporters, the NPP’s rise to the pinnacle of political power represents a historic opportunity to reset the nation’s direction.
Yet recent developments have stirred unease. Statements by several senior ministers and certain policy signals have prompted critics to question whether the government’s path remains firmly democratic. Some warn that in the pursuit of rapid development and social justice, central pillars of the NPP’s election campaign, there may be a growing temptation to consolidate power in ways that edge toward policies of old “Hammer & Sickle.”
Is the NPP committed to pluralistic democratic socialism, or is Sri Lanka witnessing the early signs of a more centralised political model? To answer this question, it is necessary to revisit the JVP’s ideological history, examine the pressures that shape governing parties once in power, and weigh the potential consequences, both promising and perilous, of any shift in direction.
History of the JVP
The JVP emerged in the mid-1960s with a revolutionary agenda, mobilising youth through its Five Lecture Programme, which criticised capitalist policies, questioned the country’s “real independence,” opposed Indian influence, and called for armed struggle. This ideology culminated in the 1971-armed uprising against the elected government, leading to widespread violence, a harsh state crackdown, mass arrests, and the banning of the party.
Although suppressed, the JVP later re-entered democratic politics after its leaders were imprisoned and eventually pardoned. In the 1980s, after electoral defeat, the JVP shifted from strict Marxist-Leninist ideology toward a national, framework known as “Jathika Chinthanaya”, while maintaining strong opposition to Indian involvement.
However, it launched a second violent insurgency in 1988–1989, resulting in significant loss of life and severe repression, including the killing of its leader, Rohana Wijeweera. These events marked a decisive turning point, after which the party gradually moved away from armed struggle and embraced parliamentary politics.
By 1994, the JVP abandoned armed insurrection and embraced parliamentary democracy. While retaining its Marxist-Leninist identity, it adopted a more pragmatic socialist approach, seeking influence through elections rather than violence.
Embracing Parliamentary Democracy
The party served as Ministers and Deputy Ministers under President Chandrika Kumaratunga (2004–2005) and later supported Mahinda Rajapaksa in the 2005 presidential and subsequent parliamentary elections. Between 2005 and 2010, the JVP aligned with the Rajapaksa government in opposing federalism and supporting a unitary state.
Historically, the JVP opposed federalism. Under Anura Kumara Dissanayake (AKD), however, there appears to be a strategic shift toward decentralisation and inclusivity, without formally endorsing federalism. Since 2019, the NPP/JVP has criticised successive governments for failing to implement the 13th Amendment fully. This transformation is real and should be acknowledged.
Reports indicate the NPP/JVP is drafting a new constitution, but there is limited public clarity on its position regarding abolishing the Executive Presidency and devolving powers to Provincial Councils. Sri Lanka can chart a path toward a united, prosperous future where all citizens feel valued and represented. Therefore, I hope that NPP will consider the Provincial Councils in their current form might best serve as a relic of the past, making way for more cohesive and efficient systems of governance.
It is also a fact that many parties have historically criticised the Executive Presidency while in opposition, only to retain it in power. Whether the NPP/JVP will pursue genuine reform remains a subject of debate.
Democratic Concerns State Power
A recent statement by a senior Cabinet Minister that the party holds government power but has not yet “captured” broader state power raises fundamental questions. In a parliamentary democracy, winning government is the highest legitimate authority a party can obtain. Government power is temporary which is granted by voters, limited by the Constitution, and revocable at elections.
State power is permanent and it lies with state institutions i. e. the judiciary, administrative service, armed forces, law enforcement, and independent commissions. These bodies must remain politically neutral and serve the Constitution, to prevent any ruling party from dominating the permanent machinery of governance.
To frame democratic victory as incomplete without “capturing” state power, suggests a conception of power that goes beyond electoral legitimacy. It echoes a revolutionary mindset highlighting the real transformation requires ideological alignment of the state itself.
Past few decades, Sri Lanka has suffered from politicised institutions. Replacing one form of control with another is not reform, it is substitution.
Judiciary and Due Process
Public frustration over past corruption is understandable. However, allegations must be addressed through due legal process. In a democracy, individuals are innocent until proven guilty in a court of law. When parliamentarians publicly pass judgments on opposition figures before judicial proceedings conclude, it risks undermining the rule of law and raising concerns about political overreach.
Concerns are further heightened when there are perceptions that the rule of law is not applied equally, particularly if members of the governing party are treated differently in similar circumstances in the recent past. Unequal enforcement of legal standards can erode public trust in institutions. If such patterns persist, they may raise broader questions about the strength and impartiality of democratic governance.
Village-Level Courts

Democratic Concerns
State Power
In another recent statement, by a senior Minister reiterated one of his earlier proposals to establish judicial courts at the village level to adjudicate certain legal cases, depending on the nature and severity of the alleged offences. While improving local access to justice may enhance efficiency, such courts require strong institutional safeguards.
As this proposal raises serious concerns, it bears characteristics often associated with totalitarian systems, where village-level courts may be controlled by ruling party “cadres” who preside over legal matters and pass judgments against individuals. Without strong safeguards to ensure independence, transparency, and adherence to the rule of law, such courts could be misused to suppress dissent and curtail legitimate political opposition.
Any reform of the judicial system must uphold constitutional protections and preserve the separation of powers. Failing to do so could raise broader concerns about democratic accountability and institutional independence.
Civil / Administrative Service
Before 1978, Sri Lanka’s civil service was widely respected for its professionalism and independence. Over time, however, political appointments increasingly influenced senior administrative positions.
There are growing concerns that some recent appointments to high-level administrative service posts by the NPP may also be politically motivated. Many voters expected systemic reform and a decisive shift toward merit-based governance under the NPP/JVP. It is disappointing to observe indications that similar patterns of politicisation may be continuing.
The real test of reform lies not in rhetoric but in institutional safeguards. Transparent selection criteria, independent oversight mechanisms, and clear accountability structures are essential to ensuring that the administrative service remains professional and non-partisan.
History shows that democracy does not usually collapse overnight. It erodes gradually when ruling parties seek to align permanent institutions with their own ideological or political objectives.
Strengthening institutional independence is not optional, it is imperative. Sri Lanka’s democratic future depends not only on who holds power, but on how responsibly that power is exercised.
Media Freedom
“I disapprove of what you say, but I will defend to the death your right to say it”
(Evelyn Beatrice Hall, describing Voltaire’s belief in freedom of speech.)
Recent reports suggest the NPP/JVP government is dissatisfied with parts of the media, accusing some outlets of political bias and even proposing bans for allegedly spreading false information. Such actions would be undemocratic and would weaken constructive criticism.
Governments already possess legal remedies for defamation. If laws are inadequate, they may be reviewed. However, this must not undermine the media’s fundamental right to fair, independent, and legitimate criticism of those in power.
Every government dislikes criticism. But mature democracies tolerate it. Any attempt to restrict the media risks eroding democratic freedoms and should be adamantly opposed by all who value an independent media.
Religion and Public Conduct
In the past, opposition parties accused the JVP of being hostile to religion, particularly toward Buddhist monks aligned with political opponents. Confirming this accusation, recently a few NPP/JVP ministers, MPs, and party supporters have publicly criticised Buddhist monks who speak and organise meetings against the government.
At the same time, social media contains intolerable language about the conduct of certain Buddhist monks. While misconduct by members of the clergy is concerning, it does not justify hostile or disrespectful reactions from politicians or the public.
Responding with anger and division contradicts the very Dhamma many claim to defend. Using monks as political tools, or attacking them publicly, only deepens social divisions. If there are genuine concerns about the monastic order, they should be addressed respectfully through proper religious channels rather than through public humiliation.
Economic Democracy
Following Sri Lanka’s 2022 fiscal crisis, the NPP/JVP revised its economic policy and aligned itself with a framework closer to Social Democracy. This shift suggests that the JVP has accepted capitalism as the economic system necessary to revive the collapsed economy. At the same time, it has emphasised redistribution, welfare measures, and regulatory reforms aimed at reducing inequality.
The NPP/JVP’s economic policy now focuses on reforming capitalism rather than replacing it. The party initially sought to renegotiate the IMF agreement to ease the burden on the public. However, it was unable to secure significant changes. A key long-term objective remains reducing dependency on imports. The NPP aims to promote local industries and agriculture, while supporting small and medium-sized enterprises (SMEs) to reduce unemployment and expand export capacity.
Although the party pledged to strengthen state-owned enterprises through improved management rather than outright privatisation, recent developments indicate a shift toward public-private partnerships and selective privatisation.
Overall, economic progress is gradually aligning with these reformed Capitalist policies. This approach marks a significant departure from the original “Hammer and Sickle” ideology associated with classical Marxist theory as articulated by thinkers such as Karl Marx, Vladimir Lenin, and Friedrich Engels.
If judged solely on economic direction, the shift from revolutionary rhetoric to reformist governance appears substantial.
Bribery and Corruption
The nation is deeply grateful to the NPP government for taking bold steps to minimise bribery and corruption, which have long been a cancer eating away at our society. For decades, this practice has existed from top politicians to the lowest levels of the state sector, and even within society at large. Full credit must be given to the NPP government for prioritising the fight against this unethical and deeply rooted problem. It is hoped that the law will be applied equally to everyone, irrespective of status or party affiliation.
However, the public remains sceptical about the delay in pressing charges against the alleged culprits. During the election campaign, the JVP claimed that it possessed substantial evidence, over one hundred files, sufficient to prosecute members of previous governments accused of misusing public funds. Are they now discovering that the evidence is not as concrete as initially suggested?
Conclusion
Having analysed the current situation of the NPP/JVP, it is evident that there are conflicting statements from some senior figures in the JVP. Some favour the continuation of the traditional “Hammer and Sickle” policies. Others within the NPP emphasise and implement aspects of Social Democratic policies. Considering these differences, the nation is entitled to seek clarity regarding the government’s present direction.
It remains to be seen whether the JVP is merely marking time before reintroducing its former ideological policies, or whether it has genuinely chosen the path of Social Democracy.
By Gamini Jayaweera
Features
Valentine’s Day fundraiser … a huge success
In Melbourne, Australia, catering veteran Chris Cannon hosted the annual Valentine’s Day fundraiser at the Springvale RSL, with all proceeds being donated to the Home of Compassion in Sri Lanka, run by the Mother Teresa Sisters.
The Valentine’s Day fundraiser was held on 14 February and the event featured music by Shey and George (of Redemption fame) and DJ Jeremy Ekanayake.

Shey and George providing the entertainment
The international buffet was a spread of Thai specialties and yummy Sri Lankan dishes and the large crowd present enjoyed the setup thoroughly, I’m told.

The lucky winner … trip to Sri Lanka
The Thai Street Food buffet was provided by Chris Cannon’s catering service, with his Thai wife, Annie, doing the needful.

The Cannon Team: Alice, Annie and Chris
His daughter, Alice, also played an active part in this fundraiser.
Chris, a Sri Lankan-born Melbourne resident, who has been hosting this annual event for several years, with all proceeds going to charity, attributes the success of this Valentine’s Day fundraiser to the team that worked tirelessly to make it a happening event.

Rose and a teddy for the ladies
“I’m ever so grateful to the Team that was responsible for the success of this fundraiser. They all worked with enthusiasm and the smiles on their faces, at the end of the event, said it all.”
It was a sell-out, with every lady receiving a rose and a teddy but, unfortunately, said Chris “we had to disappoint several who wanted tickets as it was a limited space venue.”
What’s more, there were also attractive prizes on offer, including a seven nights stay in Sri Lanka.
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