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President vows no human rights will be violated!

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President Gotabaya Rajapaksa making his throne speech at the second sitting of the 09th Parliament of Sri Lanka today (18) vowed that no human rights will be violated nor any influence will be made to have them violated in the country.

As a country that respects and abides by international covenants and laws, Sri Lanka needs to rectify certain misconceptions laid before the International Community about the country, the President noted.

“I say with responsibility that the government will not endorse any kind of human rights violation during my tenure. We will also not allow such acts to take place in the future. We do not condone such acts either. Almost every community in this country has been affected by terrorism for nearly three decades. We were able to end this situation in 2009 by defeating terrorism and bringing peace back to the country. However, now we want to erase the dark memories of history and build a secure country where all people can live in peace and harmony. For that, we must all unite, regardless of race, religion or political affiliation. We have invested heavily in normalising the lives of the people in the war-torn North and East. During my tenure as Secretary of Defence, I liberated more than 90 per cent of the military-occupied lands in the North and East during the war. We have been able to ensure security in these areas and maintain a peaceful environment, enabling us to liberate the remaining lands in the future. The issue of war disappearances is not unique to one party. We will work to do maximum justice for all of them. We deny racism. The present government wants to protect the dignity and rights of all citizens of this country. Therefore, I urge the politicians who continue to do this to stop inciting the people against each other for narrow political interests,” he said.

Central Bank claims marked improvement in EPF equity portfolio

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Sri Lanka‘s investments in listed equity portfolios have recorded considerable gain and financial returns for Employees Provident Fund (EPF) , Central Bank announced. 

Value of EPF’s Listed Equity Portfolio as at end 2021 records a market value of Rs. 112 billion, against cost of Rs. 84 billion: an increase of Rs. 28 billion, it said. 

The Employees’ Provident Fund (EPF) managed by the Monetary Board is Sri Lanka’s largest superannuation fund. 

It maintains its investment portfolio with the long-term objective of maximizing the returns to its members while preserving the value of the Fund. 

It operates within certain given risk parameters and has invested 94 per cent of its funds in Government securities and the balance in listed and unlisted equities, corporate debentures, trust certificates and other money market instruments. 

Funds are invested in a diversified portfolio, across eligible asset classes as given in the Monetary Board approved Strategic Asset Allocation subject to stipulated limits, the Central Bank claimed.  

The market value of the EPF investment portfolio as at 31.12.2020 stood at Rs. 3,243 billion.

As stated above, in accordance with its Investment Policy, the EPF has invested around 3 percent of its funds in listed and unlisted equities with a long-term perspective to generate adequate real rates of return, Central Bank claimed.  

The performance of individual equities  as well as the overall performance of the equity market and overall macroeconomic conditions of the country fluctuate and these changes impact the market value of the listed equity portfolio compared to the previous year. 

The valuation of the portfolio and the determination of its profitability is carried out as per the Sri Lanka Financial Reporting Standards.

In keeping with the above Financial Reporting Standards, the market value of the listed equity portfolio of the EPF as at end December 2021 recorded a value of Rs.112 billion against its cost ofRs.84 billion, thereby reflecting a substantial unrealized gain of Rs.28 billion in the portfolio. 

In Addition, the EPF also realized Rs. 4.7 billion during the year 2021 by way of scrip and cash dividends as well as capital gains. Further, the dividend income received during the 3-year period 2019 to 2021 was recorded at Rs. 2.5 billion on the unlisted equity investment portfolio of Rs. 9.6 billion.

CBSL is prepared to pay $ 500 million for the Sovereign Bond which is maturing today – Cabraal

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The Central Bank has taken steps to pay $ 500 million for the International Sovereign Bond, which matures today (18), and the necessary documents have been prepared by the Department of Credit and the payments will be made today, Central Bank Governor Ajith Nivard Cabraal said.

The Governor of the Central Bank states that no one should be alarmed about this.

“We have faced some challenges. We have overcome all those challenges. In this case, if at any time the amount of dollars in the banks is less than the required amount, the Central Bank is bound to fill that gap. I discussed this with the President, the Prime Minister and the Minister of Finance. In such cases we will take action to provide that money. Therefore, we do not expect to have any deficit due to lack of funds. ” Cabraal added.

A special discussion to be held today on providing fuel for the CEB!

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As the stocks of other fuel and diesel provided by the Ceylon Petroleum Corporation to the Ceylon Electricity Board will expire today (18), a special discussion will be held today (18) on obtaining fuel.

Gamini Lokuge, Minister of Power and Energy, the Ministry of Finance, the Central Bank, the Electricity Board, and the Ceylon Petroleum Corporation are participating in the discussion.

Meanwhile, Minister Gamini Lokuge told the media yesterday that he had instructed the Chairman of the Electricity Board to discuss whether there was a possibility of obtaining fuel from the IOC.

Also, the Ceylon Electricity Board (CEB) Engineers’ Union has commenced a trade union action today against the appointment of the new General Manager of the Ceylon Electricity Board by reporting sick leave and they have organized a protest in front of the head office.

A special meeting of the ruling party group chaired by the Prime Minister today

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It is reported that a special meeting of the ruling party parliamentary group is to be held today (18) under the chairmanship of Prime Minister Mahinda Rajapaksa.

The special meeting is scheduled to be held at 11.30 am today at the Parliament complex.

The current political situation and future parliamentary proceedings will be discussed here.

The new session of the Parliament to be commenced today under the patronage of the President

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The second session of the 9th Parliament is scheduled to commence today (18) under the patronage of President Gotabhaya Rajapaksa.

Accordingly, the President is scheduled to address the House at 10.00 am today.

It is said that the opening ceremony of this year’s Parliamentary session has been planned in a very simple manner.

The event will be attended by a number of distinguished guests including Ambassadors.

Traditionally, after the President’s throne speech today where he mentions the Government’s policy statement, the House will be adjourned today.

Priority should be given to supplying fuel to the transport sector rather than generating electricity – Gammanpila

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Udaya Gammanpila, Minister of Energy emphasizes that priority should be given to supplying fuel to the transport sector rather than generating electricity.

A decision has to be made. Because there are no fuel springs in our country and there are no large stocks of imported fuel. I don’t even have the dollars to bring fuel. That is why we had to reluctantly say we would bring fuel if given dollars.

At present we have two diesel ships with 76,000 metric tons of diesel in the middle of the sea. We have been informed them that if we will give them back the diesel if they provide the required dollars to unload one of them. Tell me a method to bring fuel to this country without dollars, I will follow that method. I am not responsible for supplying dollars to this country ”

“If we give our fuel to the CEB, the country will stop. Remember that the supply of electricity is a matter of control. You can turn on the electricity 24 hours a day, you can turn off the electricity 24 hours a day, you can suspend the electricity for two or three hours. But in the field of transportation there is either fuel or no fuel. The transport sector must be given priority over the electricity sector.”

Minister Udaya Gammanpila stated this while expressing his views to the media yesterday (17).

The cardinal was hasty. It even affects his post – Pohottu MP Jagath

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SLPP MP Jagath Kumara has said that Cardinal Malcolm Ranjith’s statement that the Archbishop of Colombo was suspicious of the investigation into the incident in which a hand grenade was found inside the All Saints’ Church in Borella had damaged his reputation as a cardinal.

“We have great respect for the cardinal, not as an individual. So there is also the question of whether he makes certain statements without thinking. On the other hand, the police should be given time to do something. I think his statement was a bit hasty. Because he said this without giving any time ”

MP Jagath Kumara stated this addressing a media briefing held yesterday (17).

Tax revenue collectors to launch massive protest campaign today

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In a move to express its displeasure over the new Special GST Act, the country’s top tax collectors of the Excise Department, Sri Lanka Customs and the Department of Inland Revenue will team up to launch a massive protest against the Ministry of Finance on Tuesday 8.

The trade union collective of the Department of Excise addressing a press briefing yesterday said that they will team up with the other leading tax collecting authorities to fight against the ‘unfair’ Special Goods and Services Tax Act, which was gazetted on January 07th.

As a result, the Excise Department trade union will hold hands with the TUS of the Department of Inland Revenue, Sri Lanka Customs, Department of Motor Traffic (Dmt), telecommunication Regulatory Commission of Sri Lanka (TRCSL), and Sri Lanka Export Development Board to launch this protest.

Co-secretary Unity of Excise Trade Unions Nirosh Jayakody said by introducing the Special GST Act the government is planning to set up a single small unit to gather all the tax revenue collected from the aforesaid authorities in the future to be sent to the Treasury.

Government is all set to introduce Special Goods and Services Tax (SGST) in a major reform of the country’s taxation by enacting the new GST bill in parliament soon after its approval from the Cabinet of ministers, high official of the treasury divulged.

The new draft bill now being finalised by the Legal Draftsman’s Department will be presented to the cabinet with the endorsement of the Attorney General within two weeks, treasury secretary S R Attygalle said .             

Cabinet has already endorsed to draft a new Goods and Services Tax (GST) bill, which is aimed at simplifying taxes on alcohol, cigarettes, vehicles, telecommunications and betting.

The new GST proposed in Budget 2021 will improve the efficiency of tax collection with the introduction of an online-managed single tax which contributes considerably to state revenue, he added.

The proposed tax will make revenue collection easy for Excise Department removing the burden and time consuming process of collecting taxes and levies from 17 hard liquor manufacturers and two beer producers.

The Finance Ministry was working to have the SGST ready for implementation from the new tax year but it was delayed due to unavoidable circumstances.

Therefore the new SGST will be enforced with retrospective effect, a senior Inland  Revenue Department (IRD) official explained.     

However Inland Revenue Department had to reduce taxes on alcohol, tobacco, and gambling, manufacturing and financial industries from April 1, 2020 in accordance with the government’s new taxation policy, he added.

Revenue from liquor, tobacco, and gambling, which were previously taxed at 40 percent, will now be charged at 28 percent.

Trading, banking, finance and insurance will be taxed at 24 percent, compared to the previous 28 percent.

Manufacturing will be taxed at a new rate of 18 percent, down from the earlier rate of 28 percent.

Excise duty Revenue generated from Excise duty declined by 12.8 percent to Rs. 111.3 billion in the first four months of 2021, compared to Rs. 127.6 billion in the same period of 2020, Finance Ministry data showed.  

This was mainly due to the decline of revenue from motor vehicles, cigarettes and petroleum products despite the gains in revenue from liquor and other excisable articles.

Excise duty revenue accounted for 26.0 percent of the tax revenue and 23.1 percent of the total revenue collected in the first four months of 2) 021 while achieving 23.4 percent of the annual estimate, ministry data revealed.