Minister of Trade Wasantha Samarasinghe announced today (16) that the government will implement maximum retail prices on a range of essential goods to address the rising cost of living. Speaking to the media in Anuradhapura, he highlighted the stark disparity between production costs and current market prices for several items.

“A water bottle that sells for Rs. 100 could be priced at less than Rs. 40, and a packet of salt produced at Rs. 52 is being sold for Rs. 100,” the Minister noted, emphasizing the inefficiencies and overpricing prevalent in sectors like the salt industry.

The Consumer Affairs Authority (CAA), in collaboration with the Consumer Council, is now working to establish and enforce these price ceilings. Minister Samarasinghe assured that the measures would be finalized soon, aiming to alleviate the financial burden on consumers struggling with the soaring prices of essential goods.

The Department of Inland Revenue has issued a reminder that all outstanding taxes for the 2023/2024 assessment year must be settled by December 26.

Commissioner General of Inland Revenue, Sepalika Chandrasekara, stressed that no penalty waivers will be granted for late payments by individuals or companies failing to meet the deadline. She emphasized that the Department has already begun field inspections and legal actions under the Inland Revenue Act to recover unpaid self-assessed taxes and other outstanding dues.

Starting January 2025, the Department will intensify its efforts against defaulters by initiating legal proceedings. Funds may also be directly recovered from the bank accounts of tax defaulters without prior notice. Furthermore, criminal cases will be filed based on the amount of taxes outstanding, reinforcing the Department’s commitment to ensuring compliance.

The current government has announced its decision not to proceed with the proposed Galle Harbour Port City project, initially planned by the previous administration. Deputy Minister of Fisheries, Aquatic, and Ocean Resources, Rathna Gamage, confirmed this during an inspection tour of the Galle Fishery Harbour.

The proposed Galle Harbour Port City project involved:

• Reclaiming 44.97 hectares of land for tourism and recreational real estate.
• Building a cruise terminal and a 150-metre berth for super yachts and passenger ships.
• Dredging 1.9 million metric tonnes of material from the Bay of Galle seabed.

However, significant concerns were raised by ecologists, environmental organisations, and other stakeholders regarding the project’s potential environmental and ecological impact. Issues included the selection of environmentally sensitive ocean areas for land reclamation and the lack of scientific planning.

Deputy Minister Gamage stated that the project posed unacceptable risks, citing previous negative experiences with similar ventures. “We have studied the project thoroughly and concluded that it is not a wholesome initiative. Therefore, we will not proceed with it,” he asserted.

Local stakeholders in Galle have also expressed strong opposition to the project. A meeting was held at the NPP office in Galle, where Deputy Minister of Vocational Education, Nalin Hewage, assured the community that the government would not advance the project.

The government’s decision aligns with its focus on sustainable development and environmental preservation. This move also demonstrates responsiveness to community concerns and a commitment to ensuring that future development projects adhere to rigorous environmental and scientific standards.

The shelving of the Galle Harbour Port City project marks a departure from the previous government’s approach, underscoring the current administration’s prioritisation of ecological balance and long-term sustainability.

President Anura Kumara Dissanayake, on a three-day official visit to India, held comprehensive discussions with Indian Prime Minister Narendra Modi on December 16 at Hyderabad House in New Delhi. The visit marked a significant step in advancing the partnership between the two countries, encompassing economic, political, and strategic dimensions.

Key Agreements and Initiatives

1. Memorandums of Understanding (MoUs):
   • Avoidance of double taxation.
   • Capacity building for Sri Lankan government officials.
2. Economic and Infrastructure Development:
   • Strengthening ties through electricity grid connections and a multi-product petroleum pipeline.
   • Advancing Indian-funded projects such as upgrading the Anuradhapura railway signalling system and Kankesanthurai Port.
   • Providing scholarships for 200 students from Jaffna and Eastern Province universities.
   • Training 1,500 Sri Lankan civil servants over five years.
3. Debt Restructuring:
   • India’s ongoing support for Sri Lanka’s economic stability, including assistance in debt restructuring and emergency financing worth $4 billion.
   • Finalizing a bilateral MoU on debt restructuring to shift towards investment-led partnerships.
4. Energy Collaboration:
   • Implementation of the Sampur solar power project and exploring offshore wind energy potential.
   • Proposals for LNG supply and power grid interconnection.
5. People-Centric Digitization:
   • Expedited implementation of the Sri Lanka Unique Digital Identity (SLUDI) project.
   • Rolling out UPI digital payments and exploring India-inspired systems like DigiLocker.
6. Trade and Investment:
   • Enhancing INR-LKR trade settlements and continuing discussions on the Economic and Technological Cooperation Agreement (ETCA).
7. Maritime and Security Cooperation:
   • Strengthening collaboration in maritime security, disaster relief, and counterterrorism.
   • Enhancing defence capabilities with joint exercises, equipment provision, and training programs.
8. Cultural and Tourism Development:
   • Promoting religious and cultural tourism and enhancing air connectivity between the two nations.
9. Fisheries and Livelihood:
   • Addressing fishermen’s concerns through humanitarian approaches and collaborative solutions.
10. Regional Cooperation:
    • Commitment to regional security frameworks under BIMSTEC and IORA.
    • India’s support for Sri Lanka’s application to BRICS.

President Dissanayake emphasized Sri Lanka’s commitment to regional stability, ensuring its territory would not pose a security threat to India. Prime Minister Modi appreciated the enduring partnership and pledged continued support for Sri Lanka’s recovery and growth.

The leaders instructed their teams to expedite ongoing projects and finalize agreements to further deepen ties. President Dissanayake extended an invitation to Prime Minister Modi to visit Sri Lanka, highlighting the renewed commitment to a mutually beneficial partnership.

This visit heralds a forward-looking chapter in India-Sri Lanka relations, underscoring shared values and aspirations for regional prosperity.