January 13, Colombo (LNW): The Inland Revenue Department (IRD) has achieved a historic milestone by surpassing its tax revenue target for 2023, recording an impressive Rs. 1,550.6 billion, exceeding the set target of Rs. 1,492 billion by 104 percent. Deputy Commissioner General of the Inland Revenue Department, Saman Shantha, emphasized the success of the department’s initiatives during a briefing to the Daily News on January 12.
Shantha clarified that individuals over 18 need not fear obtaining the Taxpayer Identification Number (TIN) certificate, as it doesn’t entail tax payment obligations unless their annual income exceeds Rs. 1.2 million. Since the commencement of issuing TIN certificates for those over 18 on January 1, over 50,000 certificates have already been issued within a short span until January 12.
Expressing the overwhelming response, Shantha mentioned a high number of requests and applications received for TIN certificates in the first half of January, indicating the program’s success. Due to the increased demand, more officers will be assigned to expedite the processing of TIN certificates from the following week.
Shantha estimated that it will take about two months to identify and categorize the groups that have registered for TIN certificates. Looking ahead, he outlined the ambitious target of Rs. 2,024 billion for tax revenue in 2024.
The Inland Revenue Department’s achievements in 2023 are commendable, with a total revenue collection of Rs. 1,550.6 billion compared to Rs. 861.233 billion in 2022. The department has witnessed remarkable growth, with a revenue collection increase of 80 percent for 2023. Specifically, Corporate and Non-Corporate Income Tax recorded a growth of 25 percent, Value Added Tax (VAT) grew by 59 percent, Advance Personal Income Tax surged by 473 percent, and Advance Income Tax saw an impressive growth of 684 percent compared to the previous year.
January 13, Colombo (LNW): In a high-profile meeting on Thursday (11), President Ranil Wickremesinghe and Sri Lankan authorities engaged with the International Monetary Fund (IMF), where congratulations were extended to the nation for successfully completing the first review under the IMF program.
The IMF acknowledged the positive initiation of the program, praising Sri Lanka for undertaking challenging reforms that have had a significant impact on the domestic population. Directors at the executive board meeting specifically lauded Sri Lanka’s courage in pioneering the publication of a governance diagnostic—an unprecedented effort in Asia.
Peter Breuer, the Senior Mission Chief for Sri Lanka, shared encouraging observations regarding the program’s effects on stabilizing the economy, particularly in policy-oriented variables and fiscal areas. A recent meeting highlighted promising revenue collection, demonstrating the effectiveness of implemented policies since the staff level agreement in the second half of 2022. The IMF underscored the positive surprise in these developments, fostering confidence with the international community, official creditors, and private creditors.
Breuer conveyed to President Wickremesinghe, “With respect to revenue collection, in fact, we had a meeting that showed very encouraging numbers that basically highlight that the policies you implemented beginning from after we reached the staff level agreement in the second half of 2022 are working, that they have the intended effect, that you’re collecting the revenue that’s needed to address the cause of the crisis. So, that really is very good news.”
The board meeting acknowledged Sri Lanka’s success in significantly reducing inflation, attributing it to government efforts in monetary policy and the reduction of monetary financing. Positive outcomes, including an increase in reserves, were noted. Ongoing governance reforms were seen as positive indicators contributing to tentative economic growth in the third quarter, particularly in capital formation and machinery.
As the IMF prepares for its upcoming formal review and Article 4 consultation, key areas of focus include the new public financial management law, potential conflicts with the public-private partnership law, electricity tariffs, and urgent preparations for property taxation. The IMF stressed the importance of persisting with ongoing reforms, addressing fiscal issues, and advancing governance agendas.
The meeting also emphasized the urgency of addressing fiscal matters, including passing amendments to the Banking Act and recapitalizing the banking sector. On the governance front, discussions revolved around operationalizing the Anti-Corruption Commission, publishing action plans, and meeting with the Constitutional Council for insights into commissioner selection processes.
January 13, Colombo (LNW): Water Supply and Drainage Minister Jeevan Thondaman has affirmed that if the Ceylon Electricity Board (CEB) follows through with its plan to lower electricity charges next month, he will reciprocate by reducing water charges accordingly.
Thondaman disclosed this commitment during a media briefing held in Kandy, citing an assurance from Power Minister Kanchana Wijesekera regarding the impending reduction in electricity charges. He asserted that the reduction in water charges would be proportional to the percentage decrease in electricity charges.
Emphasizing the operational formula used to calculate expenses associated with producing and distributing drinking water, Minister Thondaman clarified that water charges are determined based on this established system. He underscored the substantial financial burden on the Water Supply Board for electricity costs.
Highlighting the historical context, Thondaman noted that the Water Board had faced additional costs whenever electricity charges were increased, such as the 66% surge in January 2019. He iterated that the proposed reduction in electricity charges provides an opportunity to lower water charges for consumers, aligning with the established formula.
Three submissions in total were received for the Request for Qualification (RfQ) on the divestment of shares in Sri Lanka Telecom PLC, the Finance Ministry disclosed yesterday.
Accordingly, Jio Platforms Ltd. in Gujrat, India, Fortune International Investment Holding Ltd., c/o Capital Alliance Ltd. and Pettigo Comercio International LDA., c/o NDB Investment Bank Ltd. submitted their offers.
On 10 November 2023, the Government, acting through the Ministry of Finance, Economic Stabilisation, and National Policies, released an RfQ via international and local media. The RfQ sought interested parties for the divestiture of the Government’s shares in Sri Lanka Telecom PLC. The submission deadline for proposals concluded yesterday.
The evaluation of the RfQs will adhere to the Special Guidelines on Divestiture of State-Owned Enterprises, a framework approved by the Cabinet of Ministers in July 2023.
The International Finance Corporation (IFC) acts as the Transaction Advisor for the divestiture of shares held by the Government in Sri Lanka Telecom PLC.
The Ministry of Finance has called for requests for qualifications (RfQs) from potential investors for the divestiture of its shares in Sri Lanka Telecom PLC (SLT).
According to the State Owned Enterprises Restructuring Unit, the deadline for the submission of proposals ended at 02:00 p.m.yesterday (12 Jan.)
A 50.23 -percent majority stake in Sri Lanka Telecom is offered to investors according to a pre-qualification call by the island’s State Enterprise Restructuring Unit.
Prospective investors must apply by December 18. Successful candidates will be selected by January 05 and given tender documents.
Sri Lanka’s ruling Sri Lanka Podujana Peramuna has hinted that it does not agree with President Ranil Wickremesinghe on the matter of privatizing Sri Lanka Telecom, the national telecommunications services provider in the island nation of just over 22 million people.
In March 2023, the Cabinet of Ministers granted their approval in principle for the divestment of major shareholding in Sri Lanka Telecom PLC.
Sri Lanka Telecom PLC in a letter to the Colombo Stock Exchange noted that the Treasury Secretary has informed the Board of Directors of SLT that the Cabinet of Minister granted its approval in principle for the divestment of the state held by the Secretary to the Treasury in SLT.
It added that the divestment will be implemented by the State-Owned Enterprise Restructuring Unit established under the Ministry of Finance.
However, two months later in May 2023, the Sectoral Oversight Committee on National Security said it will NOT recommend privatizing Sri Lanka Telecom, as matters sensitive to national security could be exposed.
Later the same day (9th May 2023), The President’s Media Division issued a statement noting that the Government has focussed its attention to the Sectoral Oversight Committee report, emphasizing the concerns surrounding the potential risk to national security resulting from the privatization of Sri Lanka Telecom.
During a meeting between President Ranil Wickremesinghe, Sri Lankan authorities and the International Monetary Fund (IMF) yesterday (11 Jan.), the IMF congratulated the country on completing the first review under its program.
The IMF highlighted the positive start of the program, recognizing the challenging reforms undertaken by Sri Lanka and their significant impact on the domestic population. Directors at the executive board meeting applauded Sri Lanka’s courage in publishing the governance diagnostic, a pioneering effort in Asia.
Senior Mission Chief for Sri Lanka, Peter Breuer noted that encouraging signs were noted regarding the program’s impact on stabilizing the economy, particularly in policy-oriented variables and fiscal areas.
A recent meeting revealed promising revenue collection, indicating the effectiveness of implemented policies since reaching a staff level agreement in the second half of 2022.
The IMF emphasized the positive surprise in these developments, boosting confidence with the international community, official creditors and private creditors.
Mr. Peter Breuer told President Wickremesinghe, “With respect to revenue collection, in fact, we had a meeting that showed very encouraging numbers that basically highlight that the policies you implemented beginning from after we reached the staff level agreement in the second half of 2022.
The board meeting recognized Sri Lanka’s success in reducing inflation significantly, attributing it to the government’s efforts in monetary policy and scaling back monetary financing. Positive outcomes, such as an increase in reserves, were also observed.
The ongoing governance reforms were acknowledged as positive indicators, contributing to tentative economic growth in the third quarter, particularly in capital formation and machinery.
As the IMF plans its upcoming formal review and Article 4 consultation, key areas of focus include the new public financial management law, potential conflicts with the public-private partnership law, electricity tariffs and urgent preparations for property taxation.
The IMF stressed the importance of perseverance with ongoing reforms, addressing fiscal issues and advancing governance agendas.
The meeting also highlighted the urgency of addressing fiscal matters, including passing amendments to the Banking Act and recapitalizing the banking sector.
On the governance front, operationalizing the Anti-Corruption Commission, publishing action plans and meeting with the Constitutional Council for insights into commissioner selection processes were discussed.
The IMF commended Sri Lanka’s partnership on capacity development, emphasizing the importance of enhancing the skills of the civil service for the success of ongoing reforms. The program aims to build capacity in the civil service, crucial for the implementation of reforms.
The authorities expressed approval for the program and discussions on its rollout and impact will continue in the coming weeks.
As the two-week mission unfolds, further discussions between Sri Lankan authorities and the IMF are expected to delve deeper into these key areas, providing a comprehensive overview of the progress and challenges in Sri Lanka’s economic reform journey.
January 13, Colombo (LNW):Both government and opposition MPS seemed to be crossing swords with the Central Bank Governor Nandalal Weerasinghe over his declaration of preemptive debt defaulton the first day of his appointment April 12th and his recent remarks on IMF .
This was evident when one Minister told Parliament that the latter had made a startling remark on finances while a prominent member in the opposition declared that they do not trust Mr. Weerasinghe.
Minister Bandula Gunawardena said the recent remark made by the Central Bank Governor is grave.
The Governor has said that future governments as well as the incumbent government are bound to carry out the IMF recommended programme. This is a grave statement.
It is the legislature which has power over finances. It is Parliament which should decide on the economy. Therefore we want a three day debate on the remarks made by the Central Bank Governor, “the Minister said.
Speaker Mahinda Yapa Abeywardana who responded said the party leaders must decide on the debate.
Chief Opposition Whip Lakshman Kiriella said his party does not trust the current Central Bank Governor.
“Central Bank Governor failed to inform Parliament on the country’s bankruptcy. We questioned him on the country’s foreign reserves in 2022 during a meeting.
He responded by saying SL only had $ 20 million as reserves in 2022. It was only then we got to know that the country had gone bankrupt. We cannot trust him because of this conduct on his part,” he said.
Ina previousSelect Committee meeting in Parliament, MP Wajira Abeywardana stated that when the Central Bank declared financial bankruptcy, an entire country failed.
The Member of Parliament stated the above when the Select Committee of Parliament to Investigate Causes for Financial Bankruptcy declared by the Government and to Report to Parliament and Submit its Proposals and Recommendations in this regard met recently Chaired by MP Sagara Kariyawasam in Parliament.
Wajira Abeywardana and the former Central Bank Governor Ajith Nivard Cabraal were called before the Committee.
Addressing the Committee. Wajira Abeywardana pointed out that according to the Constitution, the power of financial control vests with the Parliament and because of following a wrong process, the Central Bank declared the country’s financial bankruptcy on 12.04.2022.
The Parliamentarian pointed out that as a result of this, the whole country fell into trouble.
Wajira Abeywardana pointed out that in the first quarter of 2022, $3.9 billion was to be paid and by April 8th, 2022, $3.2 billion had been paid. He pointed out that by April 12th, about 70 million dollars had to be paid to China and in that context, the Central Bank declared financial bankruptcy on April 12th effortlessly.
The Parliamentarian pointed out that this is a wrong process and this should not have happened and there was potential to get support from the private sector and pay this amount.
As a result, he pointed out that a large number of officials of the Central Bank are responsible for the situation in the country and certain individuals were not standing by Sri Lanka at that point in time.
Addressing the Committee, the former Central Bank Governor Ajith Nivard Cabraal pointed out that the declaration of financial bankruptcy was the result of a long-term effort by several groups.
The new Central Bank Governor declared financial bankruptcy on the first day of his appointment, i.e. April 12th, he said. He also pointed out that this is a declaration of debt default made without any national or institutional level discussion.
The former Central Bank Governor Ajith Nivard Cabraal pointed out 3 main points in particular and accordingly, indicated that the announcement of financial bankruptcy on April 12th, 2022, how the bankruptcy took place and the fall in the value of the rupee will be discussed here. He explained at length how the declaration of financial bankruptcy was made on April 12th, 2022, and stated that he would elaborate on the other two points on a future date due to time constraints
January 13, Colombo (LNW):Sri Lanka’s software industry dates back to the early 1980s and has become a significant player in the global market, attracting both local and international companies.
Sri Lanka’s tech ecosystem thrives on a blend of talented professionals, somewhat supportive of governmental policies, and a burgeoning start-up culture.
These may not be sufficient, but are the necessary conditions at the starting point of a vibrant AI industry. IT experts claimed.
According to Export Development Board (EDB) The Sri Lankan ICT sector serves a number of industry verticals with over 500 companies at present. T
These include communication, apparel and textiles, banking, financial services and insurance (BFSI), healthcare, manufacturing, media, retailing, transportation, travel and leisure and many more.
Sri Lanka’s success in ICT exports are chartered through an impressive upward trend in annual figures.
The export revenue of this sector grew from $ 166 million in 2006 to reach $ 1.2 billion in 2021 with a workforce of over 120,000.
With over 90% value addition and high paying jobs, it has made a significant impact on the growth of the Sri Lankan economy.
Sri Lankan ICT companies export software products and services to regions such as North America, EU, Australia, East Asia, the Middle East, Africa and the Nordic region.
It says further, h their core competencies covers automated application testing, infrastructure outsourcing, high-end R & D, enterprise resource planning (ERP), cloud technology, mobile applications and many other business solutions.
Sri Lanka also acts as an offshore development centre for several fortune 500 companies from the USA, Ireland, UK, Australasia, Sweden and joint venture development companies from Sweden, Norway, USA, Japan, etc.
One of Sri Lanka’s key opportunities is its proximity to India. Whether we like it or not, in the near future, India is projected to emerge as a leading developer and consumer of AI.
Establishing and maintaining robust trade connections with India would prove invaluable.
Notably, Sri Lanka’s capital, Colombo is a mere one-hour flight from Bangalore, India’s prominent ICT hub.
This proximity surpasses the distances to India’s other major metropolitan areas, such as New Delhi, Mumbai, and Kolkata. It would be remiss not to recognise and earnestly consider the potential of this opportunity.
Every wedding is special for participants and ordinary for the rest of the world. The wedding between Devoushi Cooray and Jacob Stone was special to me for the lovely bride was my niece. But the wedding would have been special to me even without that connection because of where it was held: a place of unparalleled natural beauty.
‘The Villa,’ in Bentota (town on the southwestern coast of the island about an hour’s drive from capital, Colombo) was originally a grand colonial house. Known as the Mohotti Walauwwa, it was remodelled by renowned Sri Lankan architect Geoffrey Bawa in the 1970s.
The Villa is a place of wide vistas, extensive gardens and beachfront dining facilities. The sea is a short walk away down a sandy, palm-fringed path. Inside, the pastel hued walls are adorned with paintings by local artists.
There were over 120 colleagues and friends who had come from overseas. For most of them, this was the first visit to Sri Lanka. They had come all the way from Australia , UK, US, France, Sweden, Spain, Germany, Bulgaria, the Netherlands, Hungary and Brazil. They had come because they wanted to share the special moment of someone they loved, but all of them, without exception, were overawed by the location. Not only did they feel it was a perfect place for a wedding, they were appreciative of the Sri Lankans they met.
Despite a war for 30 long years, a devastating tsunami, two insurrections and an unprecedented financial crisis, the beauty of Sri Lanka still remains intact. Sri Lanka is the oldest democracy in Asia and is the only country in the world where people physically fight each other to pay bills when they go out with friends. Despite the financial crisis this custom still continues. This kind of generosity is extremely rare in the world today. The guests got to see a slice of it during their brief stay and that’s what I felt when talking to Jacob’s father Brad and his uncle, Greg.
Nothing could dampen their spirits, not even the rain which inauspiciously came down just when the bride’s father, Priyantha was delivering his speech out in the garden where the ceremony was being held. He was able to continue, emotions notwithstanding, because a friend rushed in with an umbrella and held it for him until he was done. One could put it all down to the temper of the moment, the festivities of a wedding and so on, but I like to think that location had something to do with it. It was all about friendship, love, happiness, loyalty and the extraordinary and unique beauty of Sri Lanka.
I returned to Kuala Lumpur the following day. Reflecting on the wedding, the beautiful architecture and the exquisite landscaping, not to mention the innumerable bits and pieces of magic afforded by the lovely beach in Bentota, it occurred to me that what Sri Lanka needs is to develop basic infrastructure to turn all its many scenic locations into iconic stay-in destinations for tourists of all kinds. Sri Lanka, in short, is a place you would visit to attend a wedding, for example, but will compel you to consider a repeat visit of a longer duration. It is a land that will absorb all sorrows because it is made of smiles that are inevitably infectious. Even in the worst weather conditions.
Indeed, Sri Lanka is an ideal wedding-location. Just imagine a wedding by the sea, a river, a lagoon or a splendid reservoir built hundreds and even thousands of years ago. You could have it up in the mountains overlooking rolling acres of tea, in the middle of a jungle, somewhere steeped in history evidenced by rich archaeological treasures or even in the middle of a cluster of humble villages peopled by those whose dignity derives from a long association with life lessons embedded in Buddhist philosophy. You could time it to coincide with the spectacle of a cultural pageant. Many options. All open-ended. I know that the happy couple would take away memories they would cherish all their lives.
January 13, Colombo (LNW): Japan’s Finance Minister, Suzuki Shunichi, concluded a two-day official visit (11-12) to Sri Lanka, aiming to deepen economic relations amid the economic challenges faced by the country. The visit is particularly significant as Sri Lanka implements comprehensive reform measures focused on macro stability and debt sustainability.
During the visit, Minister Shunichi expressed strong admiration for President Ranil Wickremesinghe, acknowledging significant improvements in Sri Lanka’s economy. Positive trends in GDP and inflation indicators were specifically attributed to the President’s strong leadership. The Japanese Finance Minister conveyed deep respect for President Wickremesinghe’s demonstrated leadership in achieving these economic improvements.
The talks between the two leaders covered future collaborations, emphasizing areas such as information-technological cooperation, maritime-security collaboration, resumption of stalled projects, long-term bilateral cooperation, finalization of debt restructuring agreements, and pipeline projects.
Both leaders expressed mutual appreciation for the ongoing support and cooperation between Japan and Sri Lanka. President Wickremesinghe conveyed his gratitude for Japan’s crucial role in addressing Sri Lanka’s debt issues, expressing confidence in the deepening ties between the two nations.
President Wickremesinghe emphasized the need for further collaboration in a competitive green economy and a digital economy. He stressed the importance of focusing on exports to enhance the trade balance and expressed optimism for the realization of a new economic model in Sri Lanka.
The discussions also touched upon the potential resumption of yen loans, which were suspended due to a debt crisis. Minister Shunichi outlined the possibility pending the conclusion of a Memorandum of Understanding (MoU) at the Official Creditor Committee (OCC) and continued debt sustainability monitored by the IMF.
The meetings between the Japanese Finance Minister and President Wickremesinghe aim to fortify ties and lay the groundwork for a more robust and cooperative economic relationship between Japan and Sri Lanka.
President’s Media Division says the IMF has praised SL for successfully completing the 1st review, due to the positive start & commitment to reforms that have a substantial impact on the domestic population: also says the IMF has commended the SL Govt for its courage in publishing the Governance Diagnostic, considered a pioneering effort in Asia.
IMF Communications Director Julie Kozack says the goal of IMF’s current mission to SL is to follow up on program targets & commitments while SL is restructuring its debt after the country defaulted: however, Treasury Secretary Mahinda Siriwardene has recently insisted at the Parliamentary Select Committee on Bankruptcy that he and CB Governor Nandalal Weerasinghe had not announced a “default’.
President Ranil Wickremesinghe leaves for Davos, Switzerland to participate at the World Economic Forum.
Billionaire businessman Dhammika Perera who has recently announced that he would be the Presidential Candidate from the SLPP, marks the establishment of the first “DP Silicon Valley IT Office” at the Uddhakandara Rajamaha Vihara, Tissamaharama.
SL Navy enlists its first batch of women’s cadets with 3 women officer cadets joining the executive branch of the SL Navy for the first time in its history.
One of the World’s largest Travel sites – Tripadvisor ranks Colombo as the world’s 7th best cultural destination for tourism: the ranking is based on readers’ votes received over a 12-month period in 2022.
Commissioner General of Rehabilitation says 24 inmates of the Kandakadu Rehabilitation Centre were hospitalised while 90 inmates escaped, following a clash at the facility: 62 escapees however apprehended by Police while 28 inmates are still at large.
Transport Minister Bandula Gunaardena says the Transport Board will introduce a “QR code enabled payment system” for state-run buses to mitigate losses of upto Rs.10mn per day: also says some bus drivers & conductors do not return the day’s total earnings to their respective depots, daily.
New Secretary to the Ministry of Technology Dr Dharmasri Kumaratunge also appointed as Chairman of the Telecom Regulatory Commission.
SL Under-19 Cricket team led by Sineth Jayawardena leaves for South Africa to take part in the ICC U-19 World Cup: Head coach Jehan Mubarak says the players have good potential & skills, but must develop a good “mind-set” for the World Cup.
