By: Staff Writer

January 24, Colombo (LNW): The Ceylon Motor Traders’ Association (CMTA) yesterday warned that the newly imposed VAT on used vehicles, has supported the creation of a black market in the industry, while increasing the market prices of used vehicles which is hurting the common man of the country.

In a statement CMTA said the recent implementation of VAT has stirred concerns in the motor trade as legitimate companies now face a significant hurdle. When these companies sell vehicles, the prices surge by an additional 18% due to the newly imposed VAT.

On the other hand, unethical companies and individuals, often dealing in cash transactions, can operate without the burden of this additional tax, offering them an 18% substantial competitive advantage.

This situation poses a serious threat to legitimate companies, rendering them inoperable against black-market competitors.

As a result, the used vehicle sales will move to such black market traders and the Government will not be able to achieve the expected income from VAT on used vehicles.

The reason is that such black market traders do not divulge the actual transactions or profitability to authorities and therefore do not pay any income taxes or any other direct taxes.

In addition to the above, since the legitimate companies will have to exit the used vehicle business completely, the Government will lose even the income tax which it was getting from such companies previously.

CMTA Senior Vice Chairman Virann De Zoysa said: “The black market traders, taking undue advantage of the situation, have already increased prices of vehicles and two wheelers, which is hurting the common man of the country, who were battered by the exorbitantly high used vehicle prices resulting from the now four year long, vehicle import suspension.

Take for instance, the Suzuki Wagon R, one of the country’s most popular vehicles. A legitimate company would now have to charge an additional Rs. 1 million due to the VAT, making it significantly harder for the average consumer to afford. Even a commonly purchased two-wheeler like the Honda Dio Scooter will cost an additional Rs. 100,000 at a legitimate company.

Further, each time a used vehicle goes through the buying and selling cycle, the price keeps escalating due to the VAT. This is just a glimpse of how the VAT will adversely affect used vehicle customers going forward.”

CMTA Chairman Charaka Perera said: “We have proposed the Government to charge VAT on the profit margin of the vehicle, which will not result in a major price increase while enabling legitimate companies to continue with their business and the Government to earn revenue from VAT of the used vehicle sales.

If this issue is not addressed, there could be further job losses in the industry, which had already lost over 15,000 jobs from the import suspension.”

By: Staff Writer

January 24, Colombo (LNW): In a pioneering move towards financial inclusivity, DFCC Bank is to unveil DFCC Freelancer – a comprehensive, tailored financial solution for freelancers.

This groundbreaking solution is uniquely designed to cater specifically to the dynamic needs of the growing freelancer community, setting DFCC Bank apart as a leader in addressing the financial requirements of this distinct segment.

Accordingly, this proposition will provide individuals who use registered, specialised platforms to provide specialised services, often to international clients, with a comprehensive banking solution.

Commenting on the launch of this new solution, Aasiri Iddamalgoda – SVP of Retail Banking and SME, said, “At DFCC Bank, we understand that freelancers are part of the backbone of innovation and entrepreneurship.

With DFCC Freelancer, we aim to empower this dynamic community with tailored financial offerings, setting a new standard for personalised banking. We believe this product is also a testament to our commitment to inclusivity and innovation in banking, as it will cater to a category that banks in Sri Lanka have traditionally overlooked.”

As the first Bank to offer such a solution, DFCC aims to provide a comprehensive suite of benefits tailored to the lifestyles and aspirations of freelancers in Sri Lanka.

Accordingly, with DFCC Freelancer, freelancers will enjoy attractive interest rates on Personal Foreign Currency Accounts (PFCA) and Business Foreign Currency Accounts (BFCA).

This will be facilitating seamless management of international transactions and, based on their income, choosing from customer propositions such as DFCC Pinnacle, Prestige, Salary Partner, or Salary Plus, thereby adding unparalleled value to their banking experience.

DFCC Bank also ensures the growth of freelancers’ hard-earned money by offering high interest rates on savings accounts and fixed deposits.

Elevating financial freedom, DFCC Freelancer also provides a tailor-made DFCC MasterCard Credit Card, featuring waived joining fees, 2% cashback on foreign currency transactions to any DFCC Bank account, and convenient 0% easy payment plans.

Recognizing the diversity within the freelancer community, DFCC Freelancer specifically caters to the financial needs of female freelancers, who will also enjoy a range of benefits available only to women through DFCC Aloka. DFCC Freelancer will also give customers access to specialised insurance packages, giving freelancers added financial security and peace of mind.

This innovative offering underscores DFCC Bank’s commitment to setting a new standard for personalised banking and empowering freelancers to thrive in their financial journeys.

DFCC Bank invites freelancers to experience a new era of personalised banking. Call 011 2350000 24/7, visit https://www.dfcc.lk/products/dfcc-freelancer/ to learn more and open an account 100% online or walk into any DFCC Branch to get started.

By: Staff Writer

January 24, Colombo (LNW): The Indian government is set to accelerate the proposal for construction of a sea bridge linking India’s Dhanushkodi— believed to be the place where Lord Ram had ordered Hanumana to build a bridge to carry his army across to Sri Lanka—with Talaimannar

Informed sources said the government is likely to carry out a feasibility study soon for building the 23-km bridge.

India and Sri Lanka had agreed to examine the viability of developing land access to the ports of Trincomalee and Colombo during Sri Lankan President Ranil Wickremesinghe’s visit to Delhi last July.

Following this, the external affairs ministry (MEA) held a meeting with other ministries and government agencies on this issue. Sources said the MEA officials had informed the meeting about its plan to carry out the feasibility study for the bridge before preparing a detailed plan.

“A host of issues pertaining to other sectors including dairy, oil, power and shipping which came up during Wickremesinghe’s visit were also discussed at the meeting.

The long sea bridge would require huge funds, but it will prove to be a boon for bilateral trade. But for that, the government has to evaluate technical, economic, and environmental aspects to see whether it’s viable,” a source said.

The need for this sea bridge has been part of discussions for more than a decade. In a significant development, the Indian government is contemplating the proposal for the construction of a sea bridge that would link India’s Dhanushkodi to Talaimannar in Sri Lanka.

Discussions surrounding the need for this sea bridge have persisted for over a decade. In December 2015, Union Road Transport Minister Nitin Gadkari disclosed plans to construct a road-cum-rail bridge following discussions with President Wickremesinghe.

As the government weighs the potential benefits against the associated challenges, the proposed sea bridge project remains a focal point in bilateral relations between India and Sri Lanka.

During bilateral discussions between President Ranil Wickremesinghe and Indian Prime Minister Narendra Modi on July 21, the two sides had agreed to conduct a feasibility study to establish land connectivity between the two countries for developing access to the ports of Trincomalee and Colombo, apart from connectivity in air, maritime, trade and energy domains.

However, Indian Foreign Secretary Vinay Mohan Kwatra seemed to be referring to the proposal made by Wickremesinghe during his second Premiership between 2001 and 2004 to build a bridge over Adam’s Bridge which is sometimes called Hanuman Bridge and Ram Sethu or Sethu.

If Indian leaders mustered the courage to face the Hindu protests against the more beneficial Sethu Samudram Project and proceed with it, the road link project might sometimes be undermined. On the other hand, Sri Lankan leaders also have to allay fears of Sri Lankan nationalists that the bridge is inimical to the national security, to go ahead with the project.