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Ranawaka: It’s possible to prosecute those who bankrupted country

Published

3 years ago

2022/09/26

by Saman Indrajith

Leader of the 43 Brigade and independent MP Patali Champika Ranawaka has called for legal action against politicians and officials responsible for the country’s bankruptcy.Speaking at a meeting with the Executive Committee members of the Sri Lanka Parliamentary Journalists’ Association, at the Solis Banquet Hall, in Pitakotte, last week, Ranawaka said that legal action could be instituted under the provisions of the Monetary Law Act of 1950 against those who bankrupted the country.

“In addition, there are provisions in the Fiscal Responsibility Management Act that could hold filing cases against the secretaries to the Ministry of Finance and Treasury Secretaries who had violated these laws and failed to execute their responsibilities. There are laws that put limits in obtaining loans. These officials cannot place the blame only on the politicians. They too should be brought before the law. They did the very same as Sakviti Ranasinghe who asked the people to deposit money, promising 25 percent interest. Sakviti could not pay and declared bankruptcy. He was put in jail for 22 years but those who ruined the national economy have not been punished yet. What our Central Bank and the governments had been doing was very similar to the conduct of Sakvithi.

“We took loans. We invested some in development and lost the rest due to waste and corruption,” Ranawaka said, noting that Sri Lanka had been obtaining loans since 1954. “There is nothing wrong with taking loans as long as they can be settled. We used to obtain loans on very low interests from other countries and international bodies such as JICA, KOICA and World Bank. After Sri Lanka was declared a middle income earning country, we could not obtain loans for such low interests. Thereafter we had to go to the market to obtain loans for higher interests such as 8-10 percent to settle in five to 10 years. We obtained them in the form of International sovereign bonds (ISBs) and Sri Lanka Development Bonds (SLDBs). The ISBs and SLDBs were around four percent of GDP. Interest for the loans taken from the World Bank and Asian Development Bank was around 0.1 to 0.2 percent. For example, the LRT project from the JICA loan was less than 0.1 percent. It had a grace period of 12 years and further 40 years to settle completely. Instead of such loans, we opted for commercial loans which doubled in 10 years if we do not pay. What we are facing today is a crisis because of commercial loans.”

Ranawaka said that the Gotabaya Rajapaksa government had made a large number of blunders, which had ruined the economy. “He gave massive tax reliefs. He wanted to remove the Super-gain tax introduced by the Yahapalana government. It was a 25 percent tax imposed on 62 leading companies, including those of Dhammika Perera, who earned more than one billion rupees in profits. That tax brought in 56 billion rupees to government coffers. These businessmen opposed the tax and promised that they could use that 56 billion rupees for more projects that could generate around Rs 250 billions, following liberal economic policies. The Rakapaksas, who came to power promising to promote socialist economic policies, removed that tax. They brought down VAT and removed limits of income tax by upping the threshold to three million rupees. The result was a drop of those who paid income taxes from 1.5 million to 400,000. Their tax revisions resulted in a drop of around 40 percent of national income. The rating institutes, including the Moody’s, Fitch Ratings, the S&P, dropped us from B grade to C grade. That was one of the main reasons for our inability to obtain loans.

“It is true that the Yahapalana government obtained 12 billion US dollar loans. The then Governor of the Central Bank, Indrajit Coomaraswamy, went to the international market, when the interests were very low, and obtained loans to raise around eight billion US Dollars. Of that amount, we left UDS 7.2 billion as reserves. This government spent USD 5.5 billion during the corona pandemic period to keep the rupee value against dollars. That attempt was not successful because in the open market a dollar was around Rs 330-380. They not only failed to achieve the desired results but also lost the reserves, too. Corresponding to these, remittances from foreign countries dropped from USD 600 million a month to USD 250 million as Lankan expats opted to Undiyal. In the meantime, the government kept on spending on highways, carpeting 100,000 roads, building 13,000 houses and developing 100 towns. To cover up the loss, they printed more money. Total the value of the rupees in circulation was only 1,500 billion. Now, after the cash printing spree, we have 4,500 billion rupees in circulation. That is the main reason for the increasing prices of goods and inflation.”

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58,454 International aircraft movements in Sri Lanka in first 11months of 2025 – Ministry of Ports and Civil Aviation

Published

7 hours ago

2025/12/31

Priyan

According to figures released by the Ministry of Ports and Civil Aviation there have been 58,454 international aircraft movements in the first 11 months of 2025 in Sri Lanka. [An aircraft movement refers to the count of take offs and landings at an airport]

The figures also confirm that tourist arrivals via air stands at 2.1 million.

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Highest revenue in 93-year history of Inland Revenue Department collected in 2025

Published

10 hours ago

2025/12/31

Priyan

The Inland Revenue Department has succeeded in collecting Rs. 2,203 billion in revenue in 2025, the highest amount recorded in its 93-year history. This represents a surplus of Rs. 33 billion over the revenue target for the year and a 15 per cent increase compared with the revenue collected in the previous year, stated Commissioner-General of Inland Revenue Ms Rukdevi Fernando.

She made these remarks at a discussion held on Tuesday (30) morning at the Department’s auditorium under the patronage of President Anura Kumara Dissanayake.

Marking the first occasion in the 93-year history of the Inland Revenue Department that a President has visited the Department, the President attended a meeting with the staff to review the progress achieved in 2025 and the new plans for 2026.

The President expressed his appreciation to all officers and staff of the Inland Revenue Department for surpassing the revenue expected by the Government and urged everyone to continue working towards a common objective in order to realise the economic transformation required for the country.

Emphasising that no individual is entitled to the privilege of evading taxes, the President stated that the era in which a tax culture prevailed based on personal or political affiliations has come to an end. He further stressed that the law will be enforced without hesitation, irrespective of status, against those who attempt to evade taxes.

The President also pointed out that tax collection is neither repression nor coercion but a legitimate right of the State, adding that necessary changes will be made to laws, regulations, designations and staffing in order to secure this contribution.

He further emphasised that the Government’s objective is to ensure that the benefits of these economic achievements flow to the people of the country. The Government is focusing on improving essential public services to enhance the quality of life, undertaking a new transformation of the transport system and providing adequate allocations for the development of the education and health sectors.

The President also highlighted the need for a targeted programme to properly collect the taxes due to the Government by addressing issues such as improving tax literacy, simplifying the tax system and filling staff shortages.

Ms Rukdevi Fernando stated that the professional competence and dedication of the Department’s officers were the key factors behind this success.

She further noted that a revenue target of Rs. 2,401 billion has been set for 2026 and that the Department expects to achieve this through programmes aimed at enhancing tax compliance and broadening the tax base.

In addition, she said that the Department plans to expand third-party data sharing, strengthen investigations into domestic and overseas assets, take over the RAMIS system, reinforce risk-based auditing, introduce e-invoicing, adopt modern technology for tax administration and enhance tax ethics in 2026.

Minister of Labour and Deputy Minister of Finance and Planning Dr Anil Jayantha Fernando, Deputy Minister of Economic Development Nishantha Jayaweera, Secretary to the President Dr Nandika Sanath Kumanayake, Commissioner-General of Inland Revenue Ms Rukdevi Fernando and senior officials and staff of the Department were present at the occasion.

Business

Sri Lanka Customs exceeds revenue targets to enters 2026 with a surplus of Rs. 300 billion – Director General

Published

19 hours ago

2025/12/31

Priyan

The year 2025 has been recorded as the highest revenue-earning year in the history of Sri Lanka Customs, stated Director General of Sri Lanka Customs, Mr. S.P. Arukgoda, noting that the Department had surpassed its expected revenue target of Rs. 2,115 billion, enabling it to enter 2026 with an additional surplus of approximately Rs. 300 billion.

The Director General made these remarks at a discussion held on Tuesday (30) morning at the Sri Lanka Customs Auditorium, chaired by President Anura Kumara Dissanayake.

The President visited the Sri Lanka Customs Department this to review the performance achieved in 2025 and to scrutinize the new plans proposed for 2026. During the visit, the President engaged in extensive discussions with the Director General, Directors and senior officials of the Department.

Commending the vital role played by Sri Lanka Customs in generating much-needed state revenue and contributing to economic and social stability, the President expressed his appreciation to the entire Customs employees for their commitment and service.

Emphasizing that Sri Lanka Customs is one of the country’s key revenue-generating institutions, the President highlighted the importance of maintaining operations in an efficient, transparent and accountable manner. The President also called upon all officers to work collectively, with renewed plans and strategies, to lead the country towards economic success in 2026.

The President further stressed that the economic collapse in 2022 was largely due to the government’s inability at the time to generate sufficient rupee revenue and secure adequate foreign exchange. He pointed out that the government has successfully restored economic stability by achieving revenue targets, a capability that has also been vital in addressing recent disaster situations.

A comprehensive discussion was also held on the overall performance and progress of Sri Lanka Customs in 2025, as well as the new strategic plans for 2026, with several new ideas and proposals being presented.

Sri Lanka Customs currently operates under four main pillars, revenue collection, trade facilitation, social protection and institutional development. The President inquired into the progress achieved under each of these areas.

It was revealed that the Internal Affairs Unit, established to prevent corruption and promote an ethical institutional culture, is functioning effectively.

The President also sought updates on measures taken to address long-standing allegations related to congestion, delays and corruption in Customs operations, as well as on plans to modernize cargo inspection systems.

The discussion further covered Sri Lanka Customs’ digitalization programme planned for 2026, along with issues related to recruitment, promotions, training and salaries and allowances of the staff.

Highlighting the strategic importance of airports in preventing attempts to create instability within the country, the President underscored the necessity for Sri Lanka Customs to operate with a comprehensive awareness of its duty to uphold the stability of the State, while also being ready to face upcoming challenges.

The discussion was attended by Minister of Labour and Deputy Minister of Finance and Planning, Dr. Anil Jayanta Fernando, Deputy Minister of Economic Development, Nishantha Jayaweera, Secretary to the President, Dr. Nandika Sanath Kumanayake, Deputy Secretary to the Treasury, A.N.Hapugala, Director General of Sri Lanka Customs, S.P.Arukgoda, members of the Board of Directors and senior officials of the Department.