June 18, Colombo (LNW): The Ministry of Finance, Economic Stabilisation and National Policies of Sri Lanka has clarified details regarding the implementation of a proposed property tax, described as an imputed rental income tax within the context of the International Monetary Fund (IMF) supported Extended Fund Facility (EFF) programme documents.

In response to misconceptions, the Ministry emphasised that Sri Lanka faces a profound economic crisis primarily due to a significant decline in government tax revenue, leading to substantial budget deficits and unsustainable levels of public debt.

To address these challenges, rigorous fiscal consolidation efforts have been undertaken aimed at increasing government revenue from a low of 8.3% of GDP in 2022 to 15% of GDP by the end of 2025.

Regarding specific fiscal measures, the Ministry outlined that progressive reforms in corporate and personal income taxes were implemented in 2023, followed by Value Added Tax (VAT) reforms in 2024.

These reforms are on track to meet the revenue target of 13.5% of GDP by the end of 2024, with further gains expected to achieve the 15% target by 2025. A key component of these measures includes the introduction of a wealth tax focused on property.

The Ministry underscored that details of the envisaged property tax, aimed predominantly at high-wealth individuals rather than average income earners, are still under design and will be subject to legislative amendments.

Initial estimates suggest the tax could contribute 0.2% of GDP by 2025 and 0.4% in subsequent years. The tax structure will include mechanisms to prevent double taxation and minimise economic distortions.

Furthermore, the Ministry highlighted that property taxes are common globally, including in developing countries like India, and are considered efficient, progressive, and non-distortive revenue sources for funding public services.

The proposed tax is anticipated to be enacted by April 2025, pending legislative processes and improvements in valuation mechanisms and databases.

It was clarified that similar imputed income calculations have been included in Sri Lanka’s existing tax framework, such as the “Net Annual Value” under the Inland Revenue Act No. 10 of 2006.

Moreover, the Ministry noted that property in Sri Lanka is already subject to local authority rates and stamp duty, establishing a precedent for the proposed property tax.

The Ministry concluded by asserting that enhancing government revenue and reducing budget deficits have been instrumental in stabilising the economy, contributing to lower interest rates and currency appreciation, which benefit all citizens.

Failure to achieve the necessary revenue levels, however, could risk a resurgence of economic crises with severe implications for the country.

June 18, Colombo (LNW): The Speaker of Parliament has disclosed the Supreme Court’s verdict on the proposed ‘Sri Lanka Telecommunications (Amendment) Bill’.

The Supreme Court has found several clauses of the Bill to be in conflict with the Constitution.

Consequently, these clauses will necessitate a special majority in Parliament for approval.

However, the Court indicated that if the contentious clauses are amended, they could pass with a simple majority.

June 18, Colombo (LNW): The prevailing rainy condition in the south-western part of the island is expected to be somewhat enhanced in the next few days from tomorrow (19^th),the Department of Meteorology said in its weather forecast today (18).

Several spells of showers will occur in Western, Sabaragamuwa and North-western provinces and in Galle, Matara, Kandy and Nuwara-Eliya districts.

Showers or thundershowers may occur at a few places in Uva province and in Ampara and Batticaloa districts in the evening or night.

Strong winds of about (40-50) kmph can be expected at times over the Western slopes of the central hills, Northern, North-central and North-western provinces and in Trincomalee, Hambantota and Monaragala districts.

Marine Weather:

By: Staff Writer

June 17, Colombo (LNW): In the wake of Sri Lanka’s ban on Chinese research vessels docking in Sri Lanka ports for one year pacifying India’s wary, the Chinese People’s Liberation Army (PLA) Navy hospital ship “Peace Ark” set sail from a military port in Zhoushan to visit several countries, including Sri Lanka.

The ship set sail from a military port in Zhoushan in east China’s Zhejiang Province on Sunday morning for Mission Harmony-2024.

During the mission, the ship will visit 13 countries, namely, Seychelles, Tanzania, Madagascar, Mozambique, South Africa, Angola, the Republic of the Congo, Gabon, Cameroon, Benin, Mauritania, Djibouti and Sri Lanka, and provide medical service to local people. It will also make port calls to France and Greece.

This is the 10th Mission Harmony for “Peace Ark” since its commissioning in 2008. The “Peace Ark” will offer free diagnosis and treatment for common and prevalent diseases to local residents, people in Chinese institutions, and overseas Chinese through onboard clinics and dispatched medical teams.

There are over 100 personnel on board the maritime hospital, featuring 17 clinical departments and 5 auxiliary diagnostic departments.

The “Peace Ark” is the first domestically designed and constructed standard ocean-going hospital ship in China. It has visited 45 countries and regions, providing medical services to over 290,000 people.

Clarifying previous Chinese research vessels to Sri Lanka, China claims the vessels are only for scientific purposes, but the Chinese ships that have docked in Sri Lanka are known to have dual scientific and intelligence-gathering purposes, informed sources said .

The accompanying excerpted articles report on Sri Lanka’s decision for a one-year moratorium on foreign research vessels docking in the country’s ports beginning 1 January 2024, and demonstrate how Sri Lanka continues to be a focal point in tensions between India and China

India’s independent think tank Observer Research Foundation states that Sri Lanka’s moratorium is an attempt to appease India by not allowing Chinese ships to carry out intelligence gathering activities so close to India under the guise of scientific research.

While Sri Lanka has become more economically tied with China over the past several years, it still relies on India as an economic and political partner

Sri Lanka’s ties with India, while strained at times, go back further than its ties with China. An immediate impact of the moratorium resulted in the Chinese ship Xiang Yang Hong 3 being prohibited from docking in Sri Lanka in early January

Sri Lanka’s one year moratorium on foreign ships reflects India’s influence in Sri Lanka. However, the docking of the Xiang Yang Hong 3 in the Maldives likewise demonstrates that India’s ability to influence only extends so far, allowing China to project power and maintain a presence near India.

June 17, Colombo (LNW): As part of the ‘Urumaya’ national initiative, President Ranil Wickremesinghe today (17) has distributed 1,524 freehold deeds to eligible settlers in the Mahaweli and Walawe regions.

The distribution ceremony took place at the Embilipitiya Mahaweli office auditorium.

This programme aims to grant a total of two million freehold deeds nationwide.

Additionally, the President conducted a symbolic deed distribution event in the Mannar district, awarding 442 deeds at the Mannar Municipal Council auditorium yesterday.

1. President Ranil Wickremesinghe underscores the Hajj celebration as a catalyst for fostering sentiments of equality and fraternity among all individuals, imparting a profound message for global peace: In his address marking the Hajj festival, the President extends his sincere wishes to the Muslim community in Sri Lanka and across the globe, encouraging a meaningful observance where collective efforts converge to realise the universal aspirations of humanity.
   
   
2. SJB MP Eran Wickramaratne says the economy of Sri Lanka cannot be developed, should the country fail to build a united nation at the social and political level: asserts the economy cannot develop if there is no political stability: reveals the people and political leaders of the North asked Opposition Leader Sajith Premadasa to reactivate the Office of Missing Persons and the Office established to compensate for the losses in the North: assures these requirements will be fulfilled under a SJB-rule.
   
   
3. Ruling Party MP S.B. Dissanayake says both President Ranil Wickremesinghe and the Sri Lanka Podujana Peramuna (SLPP) will fail if the SLPP does not back Wickremesinghe in the upcoming Presidential Polls: suggests that the two parties, therefore, should reach a consensus, and Wickremesinghe, accordingly, too has to provide the necessary initiative for such agreement.
   
   
4. Foreign Minister Ali Sabry announces Japan plans to resume paused development projects in Sri Lanka upon the country’s debt repayment commencement: discloses plans for negotiations during his upcoming visit to Japan in July, aiming to finalise project restarts: Assurances were received that all Japanese-supported initiatives would resume post-agreement with bilateral creditors.
   
   
5. Education Minister Susil Premajayantha announces Grade 5 exam changes: 30% based on 4th and 5th-grade classroom work: emphasises need for comprehensive evaluation, proposes teacher-conducted assessments: reveals reforms at Naththandiya event; plans 2,500 smart board distribution to top schools from August.
   
   
6. The management of Colombo Lotus Tower (Private) Limited announces plans to illuminate the iconic structure in vibrant shades of green and white today (17), marking the occasion of the Eid al-Adha Hajj Festival: The initiative seeks to celebrate and honour the significant cultural and religious event within the community.
   
   
7. The Export Development Board (EDB) launches Sri Lanka’s ‘Creative Sri Lanka 2030’ export brand at London’s ‘Sourced Sri Lanka Textile & Apparel Roadshow’, promoting sustainability and national identity.
   
   
8. The National Water Supply and Drainage Board announces an interruption in water supply to several areas: Godagama, Homagama, Pannipitiya, Pelanwatta, Rukmalgama, and Mattegoda: The disruption is due to damage sustained by the transmission pipeline originating from the Kalatuwawa Treatment Plant: Reports indicate that the pipeline ruptured at Godagama near the High-Level Road following a vehicular accident earlier today, resulting in significant damage to the infrastructure.
   
   
9. Authorities urge verification of plainclothes officers’ IDs after Maradana robbery by imposters posing as police: assert the public is entitled to verify plainclothes officers’ IDs: Victims assaulted, belongings worth Rs. 200,000 stolen: Police arrest suspect linked to robbery after seizing heroin; hunt ongoing for second suspect.
   
   
10. Sri Lanka, despite being eliminated, beat the Netherlands by 83 runs in the T20 World Cup Group D match at Daren Sammy Stadium: Kusal Mendis and Charith Asalanka scored 46 each, setting a record 201-run total: Netherlands faltered to 118 all out, with Nuwan Thushara taking 3 wickets.

June 17, Colombo (LNW): Education Minister Susil Premajayantha has announced significant changes to the local school curriculum, including reforms to the Grade 5 scholarship examination.

Starting from the current academic year, 30 per cent of the exam marks will be based on classroom work completed during the 4th and 5th grades, according to the Minister.

There is need for a more comprehensive evaluation of children’s education, and the current examination system, therefore, requires revision, Premajayantha emphasised.

He proposed that a substantial portion of the marks should reflect performance over a two-year period, with assessments conducted by teachers.

The Minister disclosed these reforms while speaking at a school event in Naththandiya.

Furthermore, Premajayantha outlined plans to distribute 2,500 smart boards to the country’s leading schools between August and September this year, marking the initial phase of the programme.