Colombo (LNW): To address the soaring egg prices exceeding Rs. 60 per egg, the Sri Lankan Ministry of Trade, Commerce, and Food Security has revealed its intention to import eggs from India until April 2024, aiming to stabilise the market.

Ranjith Athapattu, Secretary to the Ministry, affirmed that the Sri Lanka State Trading (General) Corporation has received authorisation to import ample quantities of eggs from India.

The decision to import is driven by the substantial impact of elevated egg prices, placing a considerable burden on households, especially those depending on eggs for protein and nutritional needs.

Colombo (LNW): Minister of Power and Energy Kanchana Wijesekera has indicated that electricity tariffs may see a reduction to previous rates in the scheduled tariff revision set for January 2024.

The Minister made these remarks during a media briefing held at the Presidential Media Centre (PMC) on the 19th.

Wijesekera explained that the earlier tariff increase in October was necessitated by the higher cost of electricity generation using fossil fuels due to dry weather conditions.

However, he highlighted the current situation where hydropower is being generated at maximum capacity, thanks to recent rainfall over the past two months and anticipated continued rainfall for the next two weeks.

This change in weather conditions has prompted the Ceylon Electricity Board (CEB) to propose a revision in the electricity tariff.

The Minister emphasised that the upcoming tariff revision in January could result in a reduction of the increased tariff, providing relief to the public.

The government will take into account the CEB’s balance sheets in December when making decisions regarding tariff adjustments.

Colombo (LNW): Sri Lanka has upgraded the status of electricity and petroleum services to essential services, effective from Monday (18).

As per an extraordinary gazette issued by the President’s order, all services related to the supply of electricity, as well as the supply or distribution of petroleum products and fuel, have been officially designated as essential services.

By: Staff Writer

Colombo (LNW): The first group selected for jobs in the Israeli agricultural sector left for Israel from the Katunayake Airport last night (18), the Sri Lanka Bureau of Foreign Employment (SLBFE) said.

Accordingly, thirty persons were included in this group. Another group of twenty will leave for Israel this morning (19), with an additional group of thirty scheduled to be sent to Israel tonight (19).

Air tickets for the first batch of workers were handed over by the Minister at a ceremony held yesterday to mark International Migrant’s Day.

During the event, the Minister stated that according to a bilateral agreement between the two countries, 10,000 workers will be able to fly to Israel in the next few weeks.

The Minister emphasized that there is no need to pay money to any party for these jobs. Therefore, even if it is discovered after going abroad that someone has paid money to obtain these job opportunities, they will be brought back, as both governments have reached an agreement on repatriating those who have paid money.

In addition, the Minister further said that Israel has agreed to hire 2,000 workers for job opportunities in the construction sector.

Although the sending of Sri Lankans to Israel for employment has been suspended due to escalating tensions between Israel and Hamas, regular reviews are being carried out to assess the situation, stated the State Ministry of Foreign Employment Promotion.

The Minister of Labour and Foreign Employment, Manusha Nanayakkara on 11 October said that sending Sri Lankan workers to Israel had been suspended due to the ongoing war situation.

The State Minister of Foreign Employment Promotion, Jagath Pushpakumara said that the sending of Sri Lankan workers to Israel would commence as soon as the prevailing situation subsides. “The suspension is only a temporary measure.

However, we will continue to assess the situation. As soon as the situation subsides, Sri Lankans will be sent again.”

On 7 October, 2023, Palestinian militant groups led by Hamas launched a large-scale invasion against Israel from the Gaza Strip.

The attack involved thousands of rockets launched and militants entering Israeli territory using land, air, and sea vehicles. The responding Israeli counteroffensive was named Operation Iron Swords by the Israeli defence forces.

The growing tensions have resulted in more than 5,000 people including children being killed, and many more being injured and properties destroyed.

Meanwhile, the Media Spokesperson and the Deputy General Manager of the Sri Lanka Bureau of Foreign Employment (SLBFE) Senarath Yapa said that there are about 8,000 Sri Lankans who have gone to Israel for employment purposes, most of whom he said have gone through the SLBFE.

By: Staff Writer

Colombo (LNW): Alcohol and Drug Information Centre (ADIC) has expressed its concerns on the 2024 Budget and implications on alcohol and cannabis industries.

According to the data from the World Health Organization (WHO) and the Ministry of Health, Sri Lanka, every 8 out of 10 deaths in Sri Lanka are categorised as preventable deaths.

Tobacco and alcohol use have been identified as two major risk factors which are responsible for these preventable deaths, where approximately 40-50 deaths per day occur due to alcohol use.

Currently, alcohol is clearly a large burden to the country’s economy. In the year 2022, the excise revenue from alcohol tax was Rs. 165.2 billion.

Yet, the ‘Investment Case for Alcohol Control in Sri Lanka’, conducted by the United Nations Development Programme (UNDP) reported that the health and economic loss incurred on the Government due to alcohol use is Rs. 237 billion.

Moreover, the citizens of our country spend Rs. 590 million per day on beer and arrack and Rs. 380 million per day on cigarettes, which results in a large overall economic burden.

Amidst this situation, a massive amount of money that can be earned as tax revenue to the Government from alcohol and tobacco companies is being lost due to the lack of a rational tax policy for alcohol and tobacco products.

In addition, many people are being faced with various health issues resulting from the usage of substances such as cannabis.

As recognised by the Sri Lanka College of Psychiatrists, several consequences of cannabis use include; adverse impact on cognitive functions of youth, increased risk of mental illnesses, and effects on the neuro development of the foetus.

In the 2024 Budget, many recommendations were presented that will likely lead to an increase in the initiation rate of alcohol use, and a rise in alcohol consumption and related consequences among the public, ADIC claimed.

It raises significant concern on the fact that the Government appointed a parliamentary committee to eradicate the drug issue in the country, while the 2024 Budget includes several proposals to increase the availability and overall usage of alcohol. H

However, the Government is hiding behind the claim that these proposals are aimed at reducing the prevalence of illicit alcohol, ADIC added.

By: Staff Writer

Colombo (LNW): Sri Lanka’s tax burden is shouldered by those who can most afford it and the tax structure focuses on a few core taxes (personal and corporate income tax, VAT, core excises) says Finance Ministry secretary Mahinda Siriwardena.

Addressing the Inaugural Convocation of Chartered Institute of Taxation of Sri Lanka Mr Siriwardena noted that tax exemptions are eliminated as far as possible to ensure that taxes are neutral between sectors and entities and distortions are limited.

The initial focus of the tax reforms was on optimising tax revenue from progressive direct taxes such as personal and corporate income taxes.

There has been strong public opinion regarding the personal income taxes in particular. Sri Lanka collects around 0.5% of GDP from personal income taxes (PIT) whereas regional peers collect around 2% of GDP from PIT, he claimed.

The PIT structure was designed on a scientific basis considering the official income and expenditure survey (with estimates adjusted for inflation up to the point of implementation).

Accordingly, only the top 20% of Sri Lankan income earners are liable for income tax at a tax-free threshold of Rs. 100,000 per month.

Illustrating further, he added that the median income earner of the 10th highest income decile, would pay 5.8% of his or her total monthly income as tax,.

The Government is fully cognisant of the difficulties that are faced by tax payers given the increase in PIT rates and narrow tax slabs.

However, this is a crucial and essential contribution of the relatively high income-earners of the country towards the resolution of the economic crisis.

Finance Ministry is also fully aware of the various proposals presented to reduce PIT rates and still collect Rs. 100 billion from personal income taxes.

However, any reduction in PIT rates or threshold adjustments will result in lower Government revenue, which creates a shortfall from the target of 15% by 2025.

This will mean some other tax will have to be increased to compensate for the lower PIT – and this wm he said.

However, once tax administration and compliance measures take full effect and revenue targets can be met, it will be possible to adjust tax rates, he pointed out.

Sri Lanka has an ambitious and challenging target of reaching a revenue to GDP ratio of 15% by 2025.

This is a crucial requirement in terms of meeting the primary balance target, which in turn is a critical element of the debt sustainability target for the country.

Meeting these targets is necessary to stay on course with the IMF supported program and debt restructuring, which are essential components of Sri Lanka’s economic recovery.