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Uncollected taxes, penalties and interest now amount to Rs 943 bn

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IRD won’t takeover RAMIS for want of qualified personnel

By Shamindra Ferdinando

The Inland Revenue Department (IRD) has told the parliamentary watchdog Committee on Public Accounts (COPA) that it couldn’t fully take over the Revenue Administration Management Information System aka RAMIS for want of sufficient number of qualified personnel.

Top management of the IRD said so when COPA Chairman Lasantha Alagiyawanna (SLPP), during proceedings, asked them whether they could run RAMIS on its own. This is Alagiyawanna’s second stint as COPA Chairman.

According to a press release dated Nov 18 issued by Janakantha Silva, Parliament Director Legislative Services / Director Communication (Acting), the IRD management had declined to operate RAMIS on its own due to the absence of required personnel. The IRD comes under the Finance Ministry.

The shocking claim of being understaffed has been made, just two days after President Ranil Wickremesinghe, in his capacity as the Finance Minister projected a total tax revenue at 4.1 trillion rupees for next year, sharply higher than 2.85 trillion rupees in the current year, with the biggest jump coming from the goods and services tax receipts.

Lawmaker Alagiyawanna, who is also the State transport Minister has called for a comprehensive report on the tax collected under various clarifications, as well as uncollected taxes, penalties and interests, amounting to Rs 943 bn.

The Island yesterday (19) sought an explanation from State Minister Alagiyawanna regarding the failure on the part of successive governments, including the Wickremesinghe-Rajapaksa administration, to streamline revenue collection, particularly against the suspension of the USD 2.9 bn IMF loan package, due to revenue shortfall.

Lawmaker Alagiyawanna acknowledged that the government was struggling with the issue. In spite of spending as much as Rs 17 bn on RAMIS, the system is not fully functional, the COPA Chief said, adding that collection of unpaid taxes remained a daunting task.

According to COPA records, in terms of both RAMIS and Legacy systems, unpaid taxes, penalties and interests as at Dec 31, 2022 amounted to Rs 904 bn. The SLFPer said they hadn’t been able to overcome problems and various issues relating to massive arrears in tax payments though many discussions took place over the years. As at June 30, 2022, the total amount of arrears in taxes, penalties, and interest amounted to Rs. 773 bn.

Responding to another query, the State Minister said that the government was yet to make a permanent appointment for the post of Commissioner General, IRD. The post fell vacant over three months ago. D.U.A. Jayawardhana currently serves as Commissioner General, in an acting capacity.

Auditor General W.P.C. Wickremeratne has complained to COPA that the IRD continuously refused to divulge contractual information as per the terms and conditions of the agreement with the Singaporean company, NCS, a subsidiary of Singapore’s Singtel. Wickremeratne has questioned the rationale in the IRD’s refusal, claiming that the agreement is technically between the two governments.

State Minister Alagiyawanne said that the arrears in uncollected taxes, penalties and interests continued to grow rapidly over the years as successive governments struggled to cope up with the revenue collection system, comprising IRD, Customs and Excise.

Former Minister and ex-Chairman COPE Dew Gunasekera told The Island that the government should immediately take tangible measures to streamline revenue collection. The former Communist Party Chief and former IRD officer emphasized that the government’s goal should be to gradually bring down the total amount of arrears in taxes, penalties and interest. A cohesive action plan is required to address this issue, the ex-lawmaker said, calling for an all-party consensus on this matter as the economy was in dire straits.



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PM Visits the International Rice Research Institute (IRRI)

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Prime Minister Dr. Harini Amarasuriya visited the International Rice Research Institute (IRRI) headquarters in Los Baños, Laguna, Philippines, on 11 March 2026, and held bilateral discussions with Yvonne Pinto, Director General of IRRI, focusing on strengthening cooperation in the field of rice research and sustainable agricultural development.

During the meeting, discussions centered on rice cultivation in Sri Lanka, including the key challenges faced by Sri Lankan paddy farmers. The Prime Minister highlighted issues affecting the sector such as productivity constraints, climate-related impacts, and the need to support farmers through improved agricultural practices and technological innovations.

Both sides also discussed the importance of introducing modern techniques and research-driven approaches to rice cultivation in order to enhance productivity and ensure long-term food security. In this regard, IRRI shared insights on ongoing global research initiatives aimed at improving rice varieties, strengthening climate resilience, and promoting sustainable farming practices.

The discussion further focused on the potential for expanded collaboration between Sri Lanka and IRRI, particularly in areas such as research partnerships, knowledge sharing, and capacity building for Sri Lankan agricultural institutions and farmers. The Prime Minister emphasized Sri Lanka’s interest in strengthening cooperation with IRRI to support the development of the country’s rice sector and to improve the livelihoods of paddy farmers.

The visit reaffirmed the importance of science-based agricultural innovation and international collaboration in addressing food security challenges and enhancing sustainable rice production in Sri Lanka.

(Prime Minister’s Media Division)

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Heat Index at ‘Caution level’ at some places in the Western, Sabaragamuwa, Southern and North-western provinces and in Monaragala and Mannar districts

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Warm Weather Advisory
Issued by the Natural Hazards Early Warning Centre of the Department of Meteorology at 3.30 p.m. on 11 March 2026, valid for 12 March 2026.

The public are warned that the Heat index, the temperature felt on human body is likely to increase up to ‘Caution level’ at
some places in the Western, Sabaragamuwa, Southern and North-western provinces and in Monaragala and Mannar districts.

The Heat Index Forecast is calculated by using relative humidity and maximum temperature and this is the condition that is felt on your body. This is not the forecast of maximum temperature. It is generated by the Department of Meteorology for the next day period and prepared by using global numerical weather prediction model data.

Effect of the heat index on human body is mentioned in the above table and it is prepared on the advice of the Ministry of Health and Indigenous Medical Services.

ACTION REQUIRED
Job sites: Stay hydrated and takes breaks in the shade as often as possible.
Indoors: Check up on the elderly and the sick.
Vehicles: Never leave children unattended.
Outdoors: Limit strenuous outdoor activities, find shade and stay hydrated.
Dress: Wear lightweight and white or light-colored clothing.

Note:
In addition, please refer to advisories issued by the Disaster Preparedness & Response Division, Ministry of Health in this regard as well.

For further clarifications please contact 011-744649

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Power sector reforms jolted by 40% pay hike demand

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Nusith Kumaratunga

The government’s sweeping electricity sector restructuring programme ran into fresh turbulence yesterday, with authorities warning that meeting a 40 percent salary increase, demanded by striking power sector unions, could push electricity tariffs up by nearly 100 percent.

Chairman of the National Transmission Network Service Provider (NTNSP), Nusith Kumaratunga, issuing the warning at a media briefing, said the additional salary burden would significantly escalate operating costs in the newly formed power sector companies.

According to Kumaratunga, granting the 40 percent salary increase would raise the monthly wage bill by about Rs. 1.8 billion, amounting to nearly Rs. 22 billion annually, placing enormous pressure on the already fragile financial position of the electricity sector.

“If that additional burden is passed on to consumers, electricity tariffs may have to increase by close to 100 percent,” he said.

The briefing was organised by the management of the successor companies created following the restructuring of the Ceylon Electricity Board (CEB).

Kumaratunga said electricity sector trade unions had presented 64 demands in the wake of the restructuring exercise.

“Out of the 64 demands, 62 have already been agreed to,

while the remaining two have been referred to President Anura Kumara Dissanayake for discussion,” he said.

He explained that the majority of the demands related to the continuation of privileges previously enjoyed by employees under the CEB structure.

“During the initial round of discussions itself, the boards of directors agreed to 59 of those demands,” he noted.

Among the concessions already granted was the continuation of bonus payments, similar to those previously paid by the CEB, at least temporarily, until a performance-based incentive system is introduced.

The management had also agreed to grant an allowance of Rs. 11,000, in addition to the existing cost-of-living allowance, bringing the average additional monthly benefit to around Rs. 17,000 per employee, he said.

Kumaratunga stressed that management had approved all demands that could be granted at the ministerial level.

However, he said the proposed 40 percent salary increase would be difficult to justify, particularly at a time when other segments of the public service were not receiving similar benefits.

He also revealed that unions had requested that a 25 percent salary adjustment, granted to senior executives in 2024, be extended to all employees, with retrospective effect from January 1, 2024.

Granting such a request would require amending an existing Cabinet decision, which the boards of directors of the newly established companies do not have the authority to do, Kumaratunga explained.

He pointed out that the newly created electricity sector companies had only commenced operations on Monday, and their work had already been disrupted by the ongoing trade union action.

“It is difficult to understand why the strike continues when the vast majority of demands have already been addressed,” he said.

However, the Ceylon Electricity Board Engineers’ Union clarified that the 40 percent salary increase was not their primary demand.

Union representatives said that the electricity sector employees were originally due for a salary revision in January 2027, but the ongoing restructuring had raised concerns that the scheduled increase might not materialise.

“That is why we requested at least a reasonable percentage increase in order to secure some form of salary revision,” a senior electrical engineer said.

The dispute comes at a critical moment as the government presses ahead with the unbundling of the CEB into separate generation, transmission and distribution entities, a reform programme, officials say, is aimed at improving efficiency and attracting investment to Sri Lanka’s troubled power sector.

However, the restructuring has been strongly opposed by trade unions, which argue that the reforms could undermine employee security and weaken state control over a strategic national utility.

With industrial action continuing and tariff hikes looming as a possibility, the confrontation between the government and electricity sector unions appears set to intensify in the coming days.

By Ifham Nizam

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