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SL Motor Traffic Department Pushes for Digital Overhaul amid Challenges

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Sri Lanka’s Motor Traffic Department (MTD) is undergoing a major digital transformation to enhance service efficiency, combat corruption, and improve citizen convenience.

This initiative aligns with the government’s broader push for digitalising public services. However, the project faces numerous obstacles, including outdated infrastructure, slow progress, and resistance from corrupt officials.

To streamline operations, the MTD has introduced online services for vehicle registration, license renewals, and fee payments.

 Despite these advancements, the digitisation effort, initiated in 2018, has been plagued by procurement delays and administrative inefficiencies. Senior officials attribute these setbacks to bureaucratic red tape within the tender board and delays in procurement, exacerbated by frequent government changes.

One of the key challenges is the outdated system, which has remained unchanged for over two decades. Frequent transfers and retirements of senior officials have resulted in inconsistent decision-making and stalled projects. 

Additionally, the system’s infrastructure is inadequate for modern technology, leading to heavy reliance on external vendors, some of whom have abandoned projects due to inefficiencies.

In 2016, the MTD launched a tender for the “e-Motoring” system, aimed at improving vehicle registration and transfer processes. 

The project was awarded to a local company in 2018 but has faced repeated delays due to unsuitable office space and administrative bottlenecks. The planned relocation of the department has also been delayed, further hindering progress.

Another major roadblock is internal resistance from corrupt officials benefiting from the outdated system. Allegations of corruption and fraudulent activities have surfaced, leading to investigations by the Bribery Commission and the suspension of several officials. The lack of proper record-keeping and poor organisation of vehicle registration documents has further enabled malpractice.

Despite these difficulties, MTD Commissioner General Nishantha Anuruddha Weerasingha has implemented reforms to improve operations. 

The department has started digitising and archiving vehicle registration documents to enhance record-keeping. Instead of relocating, the Commissioner has opted to continue the e-Motoring project from the current Narahenpita office.

Progress has also been made in addressing backlogs. Under the Commissioner’s leadership, the MTD has significantly increased revenue despite restrictions on vehicle imports. Additionally, the backlog of over 950,000 pending driving license applications has been reduced by 95%.

Looking forward, the MTD plans to introduce an e-Driving License system, accessible via mobile phones, and a traffic violation tracking system using demerit points, allowing real-time fine payments.

 While full digitisation remains a challenge, these steps mark significant progress toward modernising the department and improving service delivery.

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IMF directs Sri Lanka for Tax Reforms amid Economic Challenges

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The International Monetary Fund (IMF) has urged the Sri Lankan government to reform its tax policies and control expenditure to address ongoing budget deficits and align spending with revenue. The IMF also emphasized the continuation of progressive tax reforms to stabilize the economy.

The new government introduced tax reforms aimed at providing relief to individuals and small businesses affected by inflation and high living costs. However, these measures have come under IMF scrutiny. 

The IMF will assess these tax policies in a report to be submitted to its executive board, which must approve the release of a $333 million tranche under the Extended Fund Facility program.

 Julie Kozack, Director of the IMF Communications Department, confirmed that the report will be published after the board’s meeting in the coming months.

Sri Lankan authorities are expected to comply with IMF-backed economic reforms. Any deviation could strain relations with the IMF and complicate future negotiations with international lenders.

 A former treasury secretary noted that failing to adhere to IMF recommendations might hinder Sri Lanka’s access to foreign funding.

President Anura Kumara Dissanayake, who also serves as Finance Minister, announced an increase in the income tax-free threshold from Rs 100,000 to Rs 150,000. 

While this change aims to ease the tax burden, it could result in revenue shortfalls if a significant portion of taxpayers is exempted. To offset this, the government plans to raise the Withholding Tax (WHT) from 5 percent to 10 percent.

Additionally, VAT exemptions for locally produced dairy products like yogurt could lead to revenue losses. The government also plans to remove tax exemptions on service exports and introduce a 15 percent concessionary rate, potentially making Sri Lanka less competitive compared to nations offering lower tax rates or exemptions for export industries.

To support pensioners and lower-income earners, the government will allow individuals earning below Rs 150,000 or paying less than 10 percent in income tax to apply for lower withholding tax rates through the Inland Revenue Department.

 Furthermore, as part of the IMF-backed third review, the government has agreed to withdraw VAT on fresh milk and yogurt to promote child nutrition.

The IMF’s proposed tax reforms, effective January 1, 2025, aim to increase the tax-to-GDP ratio to 14 percent by 2026. Key changes include a new imputed rental income tax on residential properties, contributing 0.15 percent of GDP, and an increase in VAT on digital services to 18 percent, generating an additional 0.08 percent of GDP. 

Corporate taxes will rise for tobacco and betting industries, while stamp duties on leases will double. The removal of the Simplified VAT (SVAT) system is expected to add administrative burdens on businesses.

Furthermore, import restrictions on vehicles and goods will be lifted, adding 0.8 percent of GDP but increasing competition for local industries. 

While these measures aim to enhance revenue and economic equity, they may also result in higher costs for consumers, businesses, and property owners. Short-term inflationary pressures are likely, though improved tax compliance and reduced evasion could strengthen fiscal stability.Despite immediate challenges, the IMF insists these reforms are crucial for Sri Lanka’s long-term economic health and debt sustainability

President Stresses Efficient Use of Funds and Cost Reduction in Public Service

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Despite financial limitations, President Anura Kumara Dissanayake has emphasized the responsibility of government officials to allocate and utilize funds efficiently and equitably, aligning with development priorities outlined in the recent budget.

This was highlighted during a meeting held today (25) at the Presidential Secretariat, where the President engaged in discussions with Ministry Secretaries, according to the President’s Media Division (PMD).

The President underscored the need for high levels of accountability in managing government expenses and acknowledged public dissatisfaction with the inefficiencies within the public sector. He noted that concerns over employment conditions among government employees have contributed to these inefficiencies and stressed the importance of addressing them to improve overall service delivery.

To further reduce administrative costs, the President pointed out that as expenses have been cut at the Cabinet level, state institutions must also take steps to minimize wastage. Several cost-cutting measures were discussed, including:

  • Relocating government offices to state-owned buildings
  • Auctioning high-maintenance ministerial vehicles by March
  • Removing unused office equipment
  • Identifying institutions for closure, mergers, or public-private partnerships

The meeting was attended by Secretary to the President Dr. Nandika Sanath Kumanayake, Secretary to the Prime Minister G.P. Saputhanthri, and other Ministry Secretaries.

President’s Maha Shivaratri message

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“Maha Shivaratri is a sacred and joyous occasion celebrated by Hindu devotees across the world in reverence of Lord Shiva. This divine night marks the celestial union of Lord Shiva and Goddess Parvati, as well as the powerful Tandava, Shiva’s cosmic dance of creation and destruction. It symbolises the triumph of wisdom over ignorance, dispelling the darkness of illusion and lighting the path to enlightenment.

On this auspicious night, Hindu devotees observe fasting and engage in spiritual practices, praying for the darkness of ignorance to be replaced by the radiance of wisdom. It is also a time to seek divine blessings for prosperity, peace and fulfilment in life.

The union of Shiva and Parvati is a profound representation of knowledge and power coming together. It reminds us that breaking free from the illusions of division allows us to embrace the truth with open eyes. Today, as we stand at the dawn of a new era, this message is more relevant than ever. Let us tear down the barriers that have kept us apart for generations and unite as one, casting aside discord and embracing togetherness. This is a moment to nurture interfaith harmony, celebrate our diversity and move forward with love and mutual respect, dedicating ourselves to the progress of our beloved motherland.

As we journey towards a brighter future, it is our collective responsibility to build a nation grounded in unity and strength. We are stepping into a time of transformation, embracing political, economic and social renewal, shaping a future that holds promise and hope for all.

On this sacred night, as the glowing lamps of Maha Shiva Rathri illuminate our surroundings, let them also illuminate our hearts, guiding us with unwavering faith along the path we have chosen. Let us walk forward together, hand in hand, in the spirit of peace, unity and shared prosperity.

May this Maha Shiva Rathri bring fulfilment, happiness and boundless blessings to all Hindu devotees in Sri Lanka and around the world.”

Sixth Suspect Arrested in Middeniya Triple Homicide Case

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Police have arrested another suspect in connection with the recent triple homicide in Middeniya, where a father and his two children were shot dead while riding a motorcycle.

The suspect was apprehended by officers from the Tangalle Divisional Crimes Unit in the Wakamulla area of Weeraketiya yesterday (25), the Police Media Division reported.

With this latest arrest, the total number of suspects in custody, including a police constable, has risen to six.

The tragic incident occurred on the night of February 18, when gunmen opened fire on a man traveling with his two children near Kadewatta Junction, Middeniya. The father was killed instantly, while his six-year-old daughter and nine-year-old son, who sustained critical injuries, were rushed to Embilipitiya and Tangalle hospitals. Despite medical efforts, the daughter succumbed to her injuries shortly after admission, and the son passed away the following day.

Middeniya Police continue to investigate the incident.

Workshop on Sustainable Plantation Economy Held at Parliament

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A workshop aimed at guiding state entrepreneurs toward a sustainable plantation economy was conducted at the Parliament premises.

The event featured key lectures on sustainability in the plantation sector and a comprehensive session on national auditing, delivered by Auditor General W.P.C. Wickramaratne.

Among the distinguished attendees were Director General of the Department of Public Enterprises P.A.S. Athula Kumara, Director K.V.C. Dilrukshi, Director General of the Department of Management Services Wimal S.K. Liyanagama, Director R.K. Jayalath, and Assistant Director H.A.S.P. Hettiarachchi. Representing the Parliament of Sri Lanka, Director of Legislative Services Jayalath Perera and Director of Communication Services were also present.

Deputy Minister of Plantations and Community Infrastructure Sundaralingam Pradeep, along with Assistant Secretaries of the Ministry, Chairpersons, and Board Members of affiliated institutions, participated in the workshop, underscoring the government’s commitment to fostering sustainability in the plantation sector.

President Dissanayake Discusses Humanitarian Cooperation with ICRC Head

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President Anura Kumara Dissanayake met with Severine Chappaz, the newly appointed Head of Delegation of the International Committee of the Red Cross (ICRC), yesterday (25) at the Presidential Secretariat to discuss collaborative efforts between Sri Lanka and the ICRC.

Key topics of discussion included the ICRC’s support for the new government’s policy framework, particularly in strengthening the Office on Missing Persons (OMP). As part of this initiative, the Sri Lanka Red Cross Society has committed to providing technical assistance and capacity-building support.

President Dissanayake emphasized that the 2025 budget has allocated funds for ongoing programs aimed at searching for missing persons, reflecting the government’s commitment to addressing this critical issue.

Additionally, the President announced plans to introduce “Sri Lankan Day,” a national initiative designed to promote unity and strengthen the country’s collective identity by transcending ethnic and religious divisions.

Expressing his gratitude, President Dissanayake commended the ICRC for its humanitarian efforts in Sri Lanka since 1989 and acknowledged its continued commitment to the country.

SLMC MP Rauf Hakeem Urges Government to Trace and Neutralize Illegal Weapons

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Sri Lanka Muslim Congress (SLMC) MP Rauf Hakeem has called for a comprehensive assessment of illegal weapons possessed by underworld groups, emphasizing the urgent need for the government to trace and neutralize them to curb rising criminal activities.

Speaking during the second reading debate of Budget 2025 in Parliament yesterday, Hakeem stressed that unchecked shootings pose a severe threat to public safety. He urged authorities to take immediate steps to dismantle underworld networks by identifying and deactivating all illicit arms.

He further noted that Prime Minister had assured Parliament of the government’s commitment to controlling underworld activities. Recalling past incidents, Hakeem pointed out that various armed groups had operated illegally in the country, sometimes with the support of ruling parties. He also highlighted cases where weapons were looted from armories, fueling criminal networks.

“We need to locate these weapons and bring them under government control. Without doing so, we cannot effectively combat underworld activities,” Hakeem asserted. He urged the government to take decisive action in ensuring these weapons do not remain in circulation.

Sri Lanka and Indonesia Strengthen Bilateral Ties in High-Level Talks

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President Anura Kumara Dissanayake met with Indonesian Ambassador to Sri Lanka, Dewi Gustina Tobing, at the Presidential Secretariat yesterday (25), reinforcing the long-standing diplomatic relationship between the two nations.

Ambassador Tobing conveyed Indonesia’s best wishes to the new Sri Lankan government and reaffirmed her country’s commitment to further strengthening the 70-year-old bilateral ties. She also noted that both Sri Lanka and Indonesia recently held elections and established new administrations, emphasizing the potential for enhanced cooperation.

During the discussions, the Ambassador expressed Indonesia’s support for Sri Lanka’s ‘Clean Sri Lanka’ programme, highlighting similar initiatives undertaken in Indonesia. The two sides also explored the possibility of establishing new trade agreements and free trade arrangements to boost economic collaboration.

Further discussions centered on expanding markets in a mutually beneficial manner while deepening economic, social, and cultural ties between the nations.

Senior Additional Secretary to the President Roshan Gamage and Indonesian Deputy Ambassador Fiki Oktanio also participated in the meeting.

Showers will occur at times in Northern, North-central, Eastern and Uva provinces

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Showers or thundershowers will occur at times in Northern, North-central, Eastern and Uva provinces and in Matale, Nuwara-Eliyaand Hambantota districts. Showers or thundershowers will occur at several places elsewhere during the afternoon or night.

Fairly heavy showers above 75mm can be expected at some places in Eastern and Uva provinces and in Matale, Nuwara-Eliya, Polonnaruwa, Galle, Matara, Kalutara and Rathnapura districts.

Fairly strong winds of (30-40) kmph can be expected at times over Northern, North-central, Eastern and North-western provinces and in Matale, Nuwara-Eliya and Hambantota districts.

The general public is kindly requested to take adequate precautions to minimize damages caused by temporary localized strong winds and lightning during thundershowers.