By: Staff Writer

April 28, Colombo (LNW): The Committee of Public Finance (COPF), at its most recent meeting, has examined the effectiveness of recent tax increases on tobacco and liquor, aimed at discouraging consumption and boosting government revenue.

Drawing attention to the Laffer curve in taxation, the COPF observed a decline in government revenue over the past two months compared to the same period last year, attributing it to higher taxes that have led to increased smuggling and the adoption of alternative measures.

At the meeting held recently under the chairmanship of MP Harsha de Silva, the COPF members recommended a thorough analysis of the inflation index to guide tax adjustments and research into existing tax systems to prevent revenue loss.

Hpwever State Plantation Enterprises Reforms and State Minister of Finance, Ranjith Siyambalapitiya, announced that in the first quarter of this year, state revenue has reached an impressive Rs. 834 billion.

This achievement not only surpasses the projected revenue but also indicates a growth of 6%.

Motrover the state minister emphasized that with prudent financial management and a consistent revenue pattern, 2024 promises to be a year where revenue targets can be successfully attained.

The COPF also raised concerns about the failure of the Excise Department to address issues such as non-payment of taxes and the use of fake stickers by liquor license holders, despite instructions from the Ministry of Finance.

Expressing dissatisfaction over the lack of action, the Committee emphasized the urgency of implementing recommendations to safeguard government revenue.

Questions were raised regarding the Ministry of Finance’s decision-making process on taxing essential goods, given inefficiencies in revenue collection from liquor license holders.

It was revealed that the Excise Department continues to operate manually, hindering efficient revenue collection and enforcement against illegal activities.

The COPF emphasized the need for digitalization to address these challenges, expressing surprise at delays attributed to cost concerns. They urged immediate measures to solicit quotations for digital software to prevent corruption within the Excise Department.

The Department of Treasury Operations is encountering a challenging task in handling cash flow this year. This difficulty arises from the limitations imposed by existing laws, which prohibit obtaining loans and printing money.

Moreover, government spending has escalated, attributed to both welfare and recurrent expenses. However, it is noteworthy that effective financial management practices are underway in the country.

In comparing recurring expenses between the first quarters of 2020 and 2024, there has been a substantial increase of 35% in the latter period.

Notably, there is a significant surge of 114% in loan interest repayment and a noteworthy uptick of 60% in capital expenditure. Furthermore, the capital repayment of public debt has escalated by 177%, indicating substantial financial commitments.

Shifting focus to welfare expenditure, in the first quarter of 2020, Rs. 93,670 million was allocated for Samurdhi. However, in the corresponding period of 2024, this figure has risen to Rs. 117,107 million, reflecting a notable growth of 25% compared to 2020.

By: Staff Writer

April 28, Colombo (LNW): Defence Secretary Kamal Gunaratne met the Secretary of the Security Council of the Russian Federation where they discussed a wide range of topics, including counter-terrorism efforts, cyber security and defence cooperation, the Ministry of Defence said.

The meeting took place recently in line with the 12th International Meeting on Security Matters held in Saint Petersburg, Russia attended by high-ranking officials from around the world.

The meeting between the two secretaries underscored the importance of fostering international cooperation and collaboration in addressing security threats and promoting peace and stability in the region.

Both parties expressed their commitment to strengthening bilateral ties and exploring avenues for enhanced cooperation in the security domain.

The 12th International Meeting of High-Ranking Officials Responsible for Security Matters provided a valuable opportunity for participants to exchange insights, share best practices and forge partnerships aimed at addressing common security challenges facing the global community.

Oriflame announces withdrawal from Sri Lanka due to economic challenges

Oriflame, a global beauty company, has announced its decision to withdraw from the Sri Lankan market effective 15 May 2024, citing a range of economic challenges that have made its operations unsustainable.

In a statement released, Oriflame expressed deep regret over its departure from Sri Lanka, a market it has been a part of since 1997. Despite years of dedication and resilience in the face of various challenges, the company cited a confluence of factors that have rendered its operations untenable.

“Unfortunately, despite our efforts, the macroeconomic environment, characterised by a series of financial crises, the global impact of COVID-19, stringent import restrictions, fluctuating exchange rates, increased operational costs and regulatory changes has significantly hindered our operations.

These factors have made it unsustainable for us to continue our business in the foreseeable future,” it added.

By: Staff Writer

April 28, Colombo (LNW): State Minister of Finance Shehan Semasinghe highlighted that the Sri Lankan economy has stabilized and growth is now emerging.

The Sri Lankan appreciation from Rs. 360 per USD in 2022 to Rs. 300 per USD at present.

He posted on X: “It is important to understand that exchange rates in Sri Lanka are market-determined which allows currency values to adjust according to supply and demand dynamics in the foreign exchange market”.

He said that strengthening of the Sri Lankan Rupee will make purchasing of goods and services cheaper over the period.

He added: “This will result in increased purchasing power, help reduce inflationary pressures and contribute to price stability and stability in the financial system. Importantly reduce the burden of debt servicing of the country”.

The State Minister said that the GDP which contracted 7.8% in 2022 returned to growth in the 3rd and 4th quarters of 2023, with Q4 GDP growth reaching 4.5%.

He says recognising progress in macroeconomic reforms, the measures to stabilise the economy have been thus far been successful, and the government is now in the process of shifting the economy to a new growth path.

Sri Lanka’s economy is projected to see moderate growth of 2.2% in 2024, showing signs of stabilization, following the severe economic downturn of 2022. But, the country still faces elevated poverty levels, income inequality, and labor market concerns, says the World Bank’s latest bi-annual update.

The Sri Lanka Development Update, Bridge to Recovery, highlights that Sri Lanka saw declining inflation, higher revenues on the back of the implementation of new fiscal policies, and a current account surplus for the first time in nearly five decades, buoyed by increased remittances and a rebound in tourism.

However, poverty rates continued to rise for the fourth year in a row, with an estimated 25.9% of Sri Lankans living below the poverty line in 2023. Labor force participation has also seen a decline, particularly among women and in urban areas, exacerbated by the closure of micro, small, and medium-sized enterprises (MSMEs).

Households are grappling with multiple pressures from high prices, income losses, and under employment. This has led to households taking on debt to meet food requirements and maintain spending on health and education.

“Sri Lanka’s economy is on the road to recovery, but sustained efforts to mitigate the impact of the economic crisis on the poor and vulnerable are critical, alongside a continuation of the path of robust and credible structural reforms,” emphasized Faris Hadad-Zervos, World Bank Country Director for Maldives, Nepal and Sri Lanka.

April 28, Colombo (LNW): During yesterday’s parliamentary session, MP Gamini Waleboda raised alarm over a burgeoning financial scam involving the unlawful transfer of funds from current and savings accounts designated for online transactions. He revealed that the scam is allegedly orchestrated by students from an institute specializing in online transaction training.

Expressing grave concern, the MP cautioned that individuals who have engaged in online transactions may be vulnerable to this fraudulent activity. He urged affected parties to promptly report any suspicious transactions to both the Central Bank of Sri Lanka (CBSL) and the Telecommunications Regulatory Commission.

According to MP Gamini Waleboda’s disclosure, the extent of the scam is significant, with between 1,000 and 1,500 accounts reportedly compromised thus far. Describing the situation as serious, the MP called for swift action to address and mitigate the impact of this fraudulent scheme.

April 28, Colombo (LNW): The Committee of Public Finance (COPF) convened recently to scrutinize the efficacy of recent tax hikes on tobacco and liquor, aimed at curbing consumption and bolstering government revenue. However, concerns arose over dwindling revenue attributed to increased smuggling and alternative measures in response to the tax hikes, prompting a thorough examination.

Chaired by MP Harsha de Silva, the COPF highlighted the necessity of analyzing the inflation index to guide future tax adjustments and researching existing tax systems to mitigate revenue losses. Moreover, the Committee expressed dismay at the Excise Department’s failure to tackle issues like tax evasion and the use of counterfeit stickers by liquor license holders, despite directives from the Ministry of Finance.

The COPF underscored the urgency of implementing recommendations to safeguard government revenue, particularly emphasizing the importance of digitalization to enhance revenue collection efficiency and combat illegal activities. Despite concerns over cost, the Committee urged prompt action to solicit quotations for digital software to streamline operations within the Excise Department.

Additionally, COPF approved three Orders under the Excise (Special Provisions) Act, detailed in Gazette No. 2364/36, Gazette No. 2361/44, and Gazette No. 2364/35. Effective from January 1, 2024, these Orders amend business hours for liquor licensed establishments and revise excise duties on various tobacco and alcoholic products, following extensive discussions during the COPF meeting.

MPs including Patali Champika Ranawaka, U. K. Sumith Udukumbura, Mayantha Dissanayake, Chandima Weerakkody, Madhura Withanage, Dr. Nalaka Godahewa, and Isuru Dodangoda, along with officials from the Excise Department and the Department of Fiscal Policy, were present at the Committee meeting.

1. President Ranil Wickremesinghe emphasized the government’s aim to create a highly competitive, export-oriented economy based on market economy, expressing full faith in the business community of the country. He pointed out that the current challenge facing the nation is not about maintaining the executive presidential system but rather about building a robust economic framework.
2. High Commissioner Santosh Jha met with the founder of Sri Lanka Podujana Peramuna (SLPP) Basil Rajapaksa on Friday (26).
3. The Ministry of Education says that the cabinet memorandum submitted regarding the removal of salary disparities and allowances of the non-academic staff of state universities will be submitted to the ministerial sub-committee.
4. The Committee of Public Finance (COPF), at its most recent meeting, has examined the effectiveness of recent tax increases on tobacco and liquor, aimed at discouraging consumption and boosting government revenue.
5. MP Gamini Waleboda told in Parliament yesterday that a major financial scam is emerging, with funds being unlawfully transferred from current and savings accounts used for online transactions. He further said that the scam is being run by students from an institute specializing in online transaction training.
6. The National Dangerous Drugs Control Board says that 230 rehabilitation centers have been established to treat drug addicts in the country.
7. The Committee of Public Finance has approved three Orders under the Excise (Special Provisions) Act, as detailed in Gazette No. 2364/36, Gazette No. 2361/44, and Gazette No. 2364/35. These Orders, effective from January 1, 2024, amend business hours for liquor licensed establishments and revise excise duties on various tabocco & alcoholic products.
8. Advisor to the Ministry of Education Prof. Gunapala Nanayakkara says a delay in preparing the syllabus for the new education reform proposal has resulted in an issue within the education system. He points out that new education reforms with 41 proposals are planned for implementation from next year to create an education system suitable for the modern world.
9. Minister Fernando explored the opportunity to import big onion from Egypt, and Egyptian Ambassador Maged Mosleh has expressed willingness to assist with such imports.
10. The Sri Lanka Respiratory Specialists Association says that between 10 and 15 percent of children and adolescents in Sri Lanka have symptoms of asthma. Its chairman Dr. Neranjan Dissanayake said that Sri Lanka is among the countries with the highest number of asthma patients.

By Saliya Weerakoon

The date 21 April 2019 is etched in the memory of Sri Lanka as a day of unprecedented tragedy. Five years have passed, yet the wounds are as raw as ever, with the ghost of that day haunting the corridors of justice and the alleys of politics in Sri Lanka. 

On this day, almost 270 souls were lost and more than 500 were injured in a series of brutal bombings that targeted the innocent: men, women, and children gathered to celebrate Easter. Today, we revisit this day not just to mourn but to understand the relentless battle for justice that unfolds even now.

Amidst the solemn remembrances, a figure emerges, steadfast in his quest for truth – Malcolm Cardinal Ranjith. The Cardinal, a shepherd to his flock, refuses to let the dark veil of negligence and conspiracy bury the truth of that day. His public appearances are not just acts of remembrance but a clarion call for justice. However, Cardinal Ranjith is not short of political controversy. He is in the news again. 

I wrote the following on 31 March: “Today is Easter Sunday. Five years ago on Easter Sunday, Sri Lanka was in flames, surrounded by uncertainty and fear of life and I feared for the lives of Muslim people on that day. Knowing the history of racism and violence in the country, the Easter Sunday attacks showcased that in Sri Lanka, the majority of the population is still tolerant and compassionate. It was heartwarming to see that the Catholics did not hurt the Muslims and that the majority of Buddhists behaved with utmost caution.

“Credit should be given where it is due: Malcolm Cardinal Ranjith, with amazing courage and compassion, healed the country with acts of kindness and tolerance. The Cardinal should have been given the Nobel Peace Prize for his leadership in blocking a catastrophe. However, he is more often political, and over the last five years, the love he had from the public at large from 21 April 2019 onwards has been diminishing. 

“In the wake of Maithripala Sirisena creating a ruckus, the Cardinal is silent. If the Cardinal does not use today’s homily to create another ruckus, Sri Lanka will have hope. A few had the scoop on Sirisena’s statement to the Criminal Investigation Department (CID). Everyone who knew stayed away from amplifying it. Sanity is required. Will the Cardinal create a ruckus? He will. I want to be wrong.”

The Cardinal created a ruckus in marking the fifth anniversary. He took on former President Gotabaya Rajapaksa and incumbent President Ranil Wickremesinghe. 

Duelling narratives

The aftermath of Cardinal Ranjith’s assertions saw a swift rebuttal from former President Gotabaya Rajapaksa. The public discourse became a volley of claims and counterclaims, aired promptly by a media ever eager for the next sensational story. It is now a duel of narratives, each seeking to find a foothold in the public’s heart. Cardinal Ranjith, standing firm in his convictions, is challenged to prove the veracity of his claims, to bring forth evidence that could tilt the scales of public opinion and justice.

It’s known that the Cardinal and Wickremesinghe do not see eye to eye. But Gotabaya Rajapaksa wrote in his book ‘The Conspiracy’ under ‘My relationship with the Cardinal’ (page nos. 94/95): “Within the first days of my assuming office as President in November 2019, I made a courtesy call on the Cardinal at his official residence in Colombo. He urged me to take legal action against those who are responsible for the Easter Sunday attacks regardless of their status, ethnic community, or religious beliefs. I asked the Cardinal whether he was satisfied with the composition of the Commission of Inquiry that had been appointed by former President Maithripala Sirisena or whether any changes needed to be made. The Cardinal answered in the negative. I asked him whether he wanted one of his nominees appointed to the commission, which too he answered in the negative because it would result in the commission being accused of bias. His thinking was that the commission should be allowed to carry out their functions without any changes. 

“In September 2020, the Cardinal invited me to visit a large coconut estate owned by the Colombo Diocese in the Puttalam District where the Catholic Church had cultivated grapes and was producing wine for the use of the Church. We left Colombo together by helicopter. I was given a tour of the vineyard, the winery, and a poultry farm on the estate. We had lunch on the estate and later opened a new building for an agro-technical institute constructed with funds from the Government of Italy. The institute had been designed to provide residential practical training for 50 students. I also accompanied the Cardinal to a village nearby, where the people were cultivating what are usually thought of as upcountry vegetables like cabbages and leeks. I spent the entire day with the Cardinal, but we did not discuss the Easter Sunday investigation. At the time, the Cardinal appeared to be satisfied with the way the Presidential Commision of Inquiry was probing the 2019 Easter Sunday attacks. 

“On 22 September 2020, speaking to the media at the All Ceylon Buddhist Congress in Colombo, the Cardinal stated that he was confident that justice would be delivered through this process and that it was evident to him that the Presidential Commision was sincerely looking into the matter. The first incident that appears to have upset the Cardinal was the CID’s decision in early October 2020 to release Riyaj Bathiudeen, the brother of Rishad Bathiudeen, who had been arrested on 14 April 2020 over alleged links to the Easter Sunday terror attacks. In a special media briefing held at the Archbishop’s House in Colombo, the Cardinal expressed the suspicion that a ‘political deal’ could be behind the CID’s move.” 

Pointed fingers and whispered accusations

Rishad Bathiudeen is now an Opposition MP under the leadership of Opposition and Samagi Jana Balawegaya (SJB) Leader Sajith Premadasa. A few days ago, the Cardinal praised presidential candidate Premadasa’s written assurance for justice under his presidency if elected. 

This issue has become too political now and some of the media have given wings to Gotabaya Rajapaksa’s rebuttal. It will be interesting to see how His Eminence Malcolm Cardinal Ranjith will respond to the rebuttal by the former President. 

Religion and politics are like heaven and hell; there is no middle ground. Training to be a Catholic priest at the Ampitiya seminary and training to be a politician are poles apart. It’s not an even ground. 

I have written this before. Ven. Maduluwawe Sobitha Thera was the champion of the ‘Yahapalana’ movement in 2015, but the people who sided with the Rajapaksa camp never saw the Thera as a champion but as an enemy. Politics divides people even if you follow the same religion. This is a fact. 

The narrative of the Easter attacks is riddled with pointed fingers and whispered accusations. The tale has become one of tangled truths and suspected conspiracies involving international and domestic actors. 

Former President Sirisena and several officials faced censure for their lapses in duty, a small consolation to those still grieving. Yet, the slow grind of justice has not quenched the thirst for answers or accountability. The people of Sri Lanka, though weary, cling to hope – a hope that justice will prevail, that such a tragedy will never darken their doors again.

In the nation’s Parliament, the echoes of that fateful day reverberate with renewed vigour. Wimal Weerawansa, known for his fiery rhetoric, once again takes the stage, stirring the pot of controversy. With the privilege of parliamentary immunity, he casts shadows of doubt on political adversaries, linking them to the attacks. 

Weerawansa argued that the Easter attacks helped 2019 presidential candidate Premadasa – the opponent of Gotabaya Rajapaksa – to muster a majority of the vote in Catholic electorates such as Negombo and Wattala. Weerawansa was quick to attack the Janatha Vimukthi Peramuna (JVP) as well, citing Mohammad Yusuf Ibrahim’s (his two sons were suicide bombers and he was in the National List of the JVP) connection. 

Weerawansa did not stop there, entangling the Bharatiya Janata Party (BJP) and a well-known Indian bureaucrat as well, even creating a story of the BJP’s election win in the Catholic-dominated Goa in the aftermath of the Easter attacks in SrI Lanka. 

In terms of spinning stories, Weerawansa can put spin wizard Muthiah Muralidaran to shame. His claims draw battle lines not just in the sand but in the very heart of Sri Lankan politics, where the struggle for truth is often overshadowed by the struggle for power. Political proxies calling out the Cardinal and taking the lead were Badulla MP and State Minister Chamara Sampath Dasanayake. When people like Dasanayake speak, they give little respect to anyone. 

The fight for justice

The Catholic Church is an uncharted territory of politics in my living memory. Perhaps seeking justice for the victims should not be the Cardinal’s fight alone but a movement for justice. Simply due to the fact that Cardinal Ranjith is always being looked at through a political lens, the fight for justice takes a back seat. By his own admission, the eminent Cardinal Ranjith has misread the promises of politicians in the past. 

Here is a country which, since 1994, has been awaiting the abolition of the executive presidency, a promise of many presidential aspirants. There were landmark judgments by the Judiciary in the last couple of years. Maybe the fight for justice should be done within institutions and the process, not with the people. The centre of the cause should be justice, not a person. Also, we must remember the law of the universe is way more powerful than the law of the land. No one escapes karma. 

Also, it’s time for reflection that there are thousands of unresolved killings in Sri Lanka, especially since 1983, whether from north or south, east or west. No religion was spared. No ethnicity was spared. The Easter attacks were the most recent. 

We must not forget all bloodshed; more importantly, we should not lay grounds for a repetition. There is a silver lining; Sri Lankans cannot be aroused easily now. There is more tolerance and restraint compared to 10 years ago. This terrain needs to be protected at all costs and be improved. 

As we stand on the brink of yet another commemoration, the lessons of that dark day remain potent. The bombings were not just an attack on a community or a religion but an assault on the very fabric of Sri Lankan society. It revealed vulnerabilities, exposed the underbelly of national security, and showed how easily terror could breach our defences. Yet, it also showed the resilience of a people united in grief, rising in solidarity against the forces of chaos and destruction.

We find ourselves asking: what more can be done? The answer lies not just in the meting out of justice but in ensuring that such a tragedy never recurs. It calls for vigilance, for an unwavering commitment to safeguarding every citizen regardless of creed or caste. It demands reforms, accountability, and a resolve to face uncomfortable truths about our society and its protectors.

As we reflect on the events that have unfolded since Easter Sunday, our narrative must be one of resilience and resolve. We owe it to those we lost and those left scarred by the events to continue this quest for justice, not just as a matter of legal retribution but as a commitment to the very soul of our nation. Let the dialogue continue, let the questions provoke action, and let us ensure that the echo of that day fosters not just remembrance but change.

In this quest, our collective spirit is tested, but our resolve must remain unshaken. The fight for justice is long and arduous, but it is a fight that we must not abandon. For in this fight lies the essence of our resilience as a nation and the hope for a future where peace is not just a fleeting shadow but a lasting light.

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