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UNDP says Lanka’s economic crisis offers a historic opportunity
The United Nations Development Programme (UNDP) says Sri Lanka’s economic crisis offers a historic opportunity to optimise the use of resources for SDG attainment.
UNDP in Sri Lanka, Resident Representative, Azusa Kubota said that there needs to be concerted efforts to strengthen the linkages among planning, budgeting, monitoring and oversight and citizens’ engagement.
The UNDP in Sri Lanka, in collaboration with the Ministry of Finance, Inland Revenue Department, University of Moratuwa, and the National Innovation Agency of Sri Lanka co-convened the first-ever National Tax Dialogue to address contemporary issues surrounding taxation and fiscal policies in the island. The opening was attended by Shehan Semasinghe, State Minister of Finance and Azusa Kubota, Resident Representative, UNDP in Sri Lanka.
In light of the ongoing economic reforms and the need to bring in citizens’ perspectives, the National Dialogue drew attention to tax morale, social/fiscal contract, fairness in taxation, transparency and accountability of revenue institutions and digitalisation of public service delivery. The Dialogue launched research findings from the first ‘Taxpayer Perception Study’ in Sri Lanka, collaboratively conducted by the Ceylon Chamber of Commerce and UNDP in Sri Lanka. The nationally representative study revealed public perceptions on issues surrounding tax burden, evasion, trust in institutions, and experiences with revenue institutions which are particularly pertinent in the context of institutional reform.
By bringing together over 100 stakeholders representing diverse interests and perspectives including policymakers, legislators, bureaucrats, academia, professional bodies, private sector as well as civil society, the dialogue served as a platform for the exchange of opinions and sharing of insights across various awareness levels. The discussions led to a shared understanding of the importance of taxation for the achievement of SDGs and national development, and the need to enhance transparency and accountability in the use of tax revenue. The knowledge and insights generated through this dialogue will serve as a cornerstone for national policy-making institutions, providing valuable input for informed decision-making processes.
The event featured plenaries of global experts renowned for their exceptional expertise in the realm of taxation. Among them are Alex Cobham, Chief Executive of the Tax Justice Network; Lauren Kahn, Director of Strategy and Research, Public Digital UK; and Sudarshan Kasturirangan, Regional Programme Specialist for Asia Pacific for UNDP Tax for SDGs whose contributions enriched the discussions and provided invaluable perspectives on navigating the complexities of tax policies on a global scale.
Gracing the occasion, Shehan Semasinghe, State Minister of Finance stated, “Taxation equips states with resources to progressively achieve SDGs. These revenues represent public resources that need to be deployed with a view to optimizing social returns. Considering this relationship, a national dialogue on taxation is a necessity and serves a constructive contribution to Sri Lanka’s democratic process.”
Commenting on the crucial role of innovation in taxation for enhancing the efficiency of revenue administration, the Commissioner General of the Inland Revenue Department, W.A.S. Chandrasekara added “Embracing innovative tax solutions is imperative for modernizing our revenue systems. By leveraging technology and fostering a culture of continuous improvement, we can enhance our efficiency, reduce compliance costs, and ultimately build a more resilient and responsive tax administration.”
UNDP in Sri Lanka, Resident Representative, Azusa Kubota pointed out that “Sri Lanka’s economic crisis offers a historic opportunity to optimise the use of resources for SDG attainment. This entails concerted efforts to strengthen the linkages among planning, budgeting, monitoring and oversight and citizens’ engagement. Therefore, the National Tax Dialogue is timely to foster a whole-of-society understanding and commitment to improving tax morale for effective SDG attainment. The Dialogue assumes global significance, especially as the UN Secretary-General in February 2023 called for an ‘SDG Push’, a surge in investment of $500 billion annually in affordable long-term finance for developing countries.”
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Landslide Early Warnings issued to the Districts of Badulla, Kandy, Matale, Monaragala and Nuwara Eliya
The Landslide Early Warning Center of the the National Building Research Organaisation [NBRO] has issued landslide early warnings to the districts of Badulla, Kandy, Matale, Monaragala and Nuwara Eliya for a period of 24 hours effective from 1200 noon today [07th January].
Accordingly,
LEVEL III RED landslide early warnings have been issued to the divisional secretaries divisions and surrounding areas of Udadumbara in the Kandy district, and Nildandahinna and Walapane in the Nuwara Eliya district.
LEVEL II AMBER landslide early warnings have been issued to the divisional secretaries divisions and surrounding areas of Kandaketiya in the Badulla district, Wilgamuwa in the Matale district, and Mathurata and Hanguranketha in the Nuwara Eliya district.
LEVEL I YELLOW landslide early warnings have been issued to the divisional secretaries divisions and surrounding areas of Meegahakiwula, Lunugala, Welimada, Passara, Badulla and Hali_Ela in the Badulla district, Doluwa in the Kandy district,Ambanganga Korale in the Matale district, and Bibile in the Monaragala district
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Prez seeks Harsha’s help to address CC’s concerns over appointment of AG
Chairman of the Committee on Public Finance (CoPF), MP Dr. Harsha de Silva, told Parliament yesterday that President Anura Kumara Dissanayake had personally telephoned him in response to a letter highlighting the prolonged delay in appointing an Auditor General, a vacancy that has remained unfilled since 07 December.
Addressing the House, Dr. de Silva said the President had contacted him following the letter he sent, in his capacity as CoPF Chairman, regarding the urgent need to appoint the constitutionally mandated head of the National Audit Office. During the conversation, the President had sought his intervention to inform the Constitutional Council (CC) about approving the names already forwarded by the President for consideration.
Dr. de Silva said the President had inquired whether he could convey the matter to the Constitutional Council after their discussion. He stressed that both the President and the CC must act in cooperation and in strict accordance with the Constitution, warning that institutional deadlock should not undermine constitutional governance.
He also raised concerns over the Speaker’s decision to prevent the letter he sent to the President from being shared with members of the Constitutional Council, stating that this had been done without any valid basis. Dr. de Silva subsequently tabled the letter in Parliament.
Last week, Dr. de Silva formally urged President Dissanayake to immediately fill the Auditor General’s post, warning that the continued vacancy was disrupting key constitutional functions. In his letter, dated 22 December, he pointed out that the absence of an Auditor General undermines Articles 148 and 154 of the Constitution, which vest Parliament with control over public finance.
He said that the vacancy has severely hampered the work of oversight bodies such as the Committee on Public Accounts (COPA) and the Committee on Public Enterprises (COPE), particularly at a time when the country is grappling with a major flood disaster.
As Chair of the Committee responsible for overseeing the National Audit Office, Dr. de Silva stressed that a swift appointment was essential to safeguard transparency, accountability and financial oversight.
In a separate public statement, he warned that Sri Lanka was operating without its constitutionally mandated Chief Auditor at a critical juncture. In a six-point appeal to the President, Dr. de Silva emphasised that an Auditor General must be appointed urgently in the context of ongoing disaster response and reconstruction efforts.
“Given the large number of transactions taking place now with Cyclone Ditwah reconstruction and the yet-to-be-legally-established Rebuilding Sri Lanka Fund, an Auditor General must be appointed urgently,” he said in a post on X.
By Saman Indrajith
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Govt. exploring possibility of converting EPF benefits into private sector pensions
The NPP government was exploring the feasibility of introducing a regular pension, or annuity scheme, for Employees’ Provident Fund (EPF) contributors, Deputy Minister of Labour Mahinda Jayasinghe told Parliament yesterday.
Responding to a question raised by NPP Kalutara District MP Oshani Umanga in the House, Jayasinghe said the government was examining whether EPF benefits, which are currently paid as a lump sum at retirement, could instead be converted into a system that provides regular payments throughout a retiree’s lifetime.
“We are looking at whether it is possible to provide a pension,” Jayasinghe said, stressing that there was no immediate plan to abolish the existing lump-sum payment. “But we are paying greater attention to whether a regular payment can be provided throughout their retired life.”
Jayasinghe noted that the EPF was established as a social security mechanism for private sector employees after retirement and warned that receiving the entire fund in a single installment could place retirees at financial risk, particularly as life expectancy increases.
He also cautioned that interim withdrawals from the EPF undermined its long-term sustainability. “Even the interim payments that are given from time to time undermine the ability to give security at the time of retirement,” he said, distinguishing the EPF from the Employees’ Trust Fund, which provides more frequent interim benefits.
Addressing concerns over early withdrawals, the Deputy Minister explained that contributors have been allowed to withdraw up to 30 percent of their EPF balance since 2015, with a further 20 percent permitted after 10 years, subject to specific conditions and documentary proof.
Of 744 applications received for such withdrawals, 702 had been approved, he said.
The proposed shift towards an annuity-based system comes amid broader concerns over Sri Lanka’s ageing population and pressures on retirement financing. While state sector employees receive pensions funded by taxpayers, including EPF contributors, the EPF itself has been facing growing strain as it is also used to finance budget deficits.
Jayasinghe said the government’s focus was to formulate a mechanism that would ensure long-term income security for private sector employees, placing them on a footing closer to a pension scheme rather than a one-time retirement payout.
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