Colombo (LNW): In light of the recent hike in the Value Added Tax (VAT), Finance State Minister Ranjith Siyambalapitiya reassured that certain sectors, including electricity tariffs, will remain unaffected.

His comment coincides with the ongoing efforts by the authorities to regularise the country’s tax system, aiming for what the government describes as a fair and efficient collection process.

The decision to increase VAT was implemented in January as part of the government’s strategy to enhance revenue in compliance with agreements with the World Bank. However, the Minister underscored that this is a temporary measure.

He further elaborated that once the tax network is thoroughly optimised, the government will be in a position to offer relief to the public.

Colombo (LNW): A shooting incident occurred in the Dadalla area of Galle on Saturday (18) afternoon (18), Police said.

Two unidentified suspects in a Wagon R-type car fired at a person inside a parked three-wheeler outside a hotel, a statement by the Police Media Division said.

Fortunately, no injuries were reported in the incident, and the suspects’ car was later found in the Galle, Habaraduwa area.

The three-wheeler driver and his son were at the hotel to pick up a foreigner, following instructions from another person when the shooting occurred, Police further said.

The Police are actively conducting investigations to apprehend the suspects.

Colombo (LNW): The Office for National Unity and Reconciliation Bill underwent a comprehensive discussion at the recent meeting of the Sectoral Oversight Committee on Reconciliation and National Unity in Parliament, chaired by MP Dilan Perera.

Government officials, including representatives from the Ministry of Justice, Prison Affairs and Constitutional Reforms, Attorney General’s Department, Legal Draftsman’s Department, and the Office for National Unity and Reconciliation, participated in the meeting.

Committee Chief Perera addressing the meeting expressed concern about recent incidents where political and religious leaders displayed behavior that could incite religious or racial tensions, potentially hindering the government’s efforts to steer the country away from economic challenges.

He emphasised the need to amend the Office for National Unity and Reconciliation Bill accordingly and submit it to Parliament for approval.

The Committee also delved into the ongoing activities of the Office for National Unity and Reconciliation.

Representatives highlighted the completion of preliminary work on the National Policy on Reconciliation and Coexistence, a key objective outlined in the bill. They also discussed reconciliation initiatives carried out in universities and schools.

Acknowledging schools as an optimal platform for fostering national unity, the Committee explored the legal involvement of the school system in the Bill. The Office of National Unity and Reconciliation, in collaboration with the Ministry of Education and the National Institute of Education, expressed readiness to initiate programmes in selected schools from the 67 trilingual schools in Sri Lanka.

The Committee was informed that, per the Act’s provisions, the Office of National Unity and Reconciliation can recommend necessary amendments to the government.

The Chairman expressed his intention to discuss this matter with the Minister of Justice and the Minister of Education in future sessions. Additionally, he proposed the inclusion of youth representatives in upcoming meetings of the Sectoral Oversight Committee. MP Mayadunna Chinthaka Amal attended the meeting.

Colombo (LNW): The Inland Revenue Department (IRD) during a session of the Committee on Public Accounts (CoPA) faced inquiries regarding the proper receipt of Value Added Tax (VAT) from the public for various goods.

Currently, around 13,000 institutions are registered for VAT, and IRD officials are actively investigating the compliance of these institutions in remitting the relevant taxes to the government.

The committee emphasised that there is a need for institutions collecting VAT to establish a system ensuring accurate tax remittance to the government.

This discussion took place on November 15 during the CoPA meeting in Parliament, chaired by State Minister Lasantha Alagiyawanna.

The session aimed to scrutinise the Auditor General’s reports and assess the Inland Revenue Department’s performance for the years 2019, 2020, and 2021.

The committee inquired about the feasibility of the Inland Revenue Department taking over and maintaining the RAMIS computer system. However, IRD officials cited a shortage of human resources as a hindrance to assuming control of the system.

It was disclosed in the committee that six institutes are already linked to the RAMIS computer system, but the Department of the Registrar of Companies is facing delays in connecting due to technical reasons.

The committee recommended an immediate upgrade of the Registrar of Companies’ system and integration with the RAMIS system, with a progress report due before January 1, 2023.

The chairman instructed the provision of a comprehensive report on tax classifications and the arrears amounting to Rs. 943 billion to be collected.

Regarding new taxpayer registrations, officials reported that approximately 198,253 new taxpayers have been registered in 2023.

The Inland Revenue Department highlighted ongoing efforts to include the identified 16 million citizens over the age of 18 in tax payment programs.

The meeting, attended by State Ministers and Members of Parliament, addressed key issues related to tax administration and system upgrades within the Inland Revenue Department.

PMD: During the key note address at the ‘YPO Colombo Experience: Rediscover the Pearl’ conference held today (18) at the Shangri La hotel Colombo, President Ranil Wickremesinghe revealed his vision for transforming the economic landscape of the region. The President, who held discussions with the new Maldivian President Dr. Mohamed Muizzu, yesterday (17), expressed a desire for closer collaboration between Sri Lanka and the Maldives, envisioning a unified Tourist area.

The president highlighted the economic shift towards Asia, emphasizing the need for South Asian nations to work together to harness the growing economic power in the region. While acknowledging the individualistic nature of South Asian countries, he proposed a model where selective integration in certain sectors could pave the way for effective collaboration.

Turning the spotlight on Sri Lanka’s economic plans, the President unveiled a series of proposals focused on restructuring and modernization. The key objectives include establishing a competitive economy, embracing digital transformation, energy transition and fostering a green economy. The president emphasized the importance of becoming a regional logistic hub and outlined plans for promoting upmarket tourism, modernizing agriculture and introducing reforms in land ownership.

A significant announcement was the decision to grant freehold rights to farmers holding approximately 2 million acres of land, marking a significant step towards agricultural reform. The president also disclosed plans for large-scale modern agricultural enterprises, combining government and private sector efforts to drive economic growth. In the realm of technology, the president allocated funds to promote advancements, including venturing into Artificial Intelligence (AI).

The president outlined the potential industrialization of Tamil Nadu and neighbouring regions, creating a major economic centre. Additionally, the president encouraged Sri Lankan entrepreneurs to invest in neighbouring countries, emphasizing the country’s role in the development of Bangladesh and the exploration of opportunities in Myanmar, Cambodia, Laos, and East and West Africa.

In the context of tourism, the president proposed the idea of a unified tourist area involving Sri Lanka, India, and the Maldives, expanding the scope to include Nepal. He also stressed plans for a Bay of Bengal cruise area, positioning it as a larger alternative to the Caribbean.

Concluding his address, the President highlighted on-going trade negotiations and agreements, including Sri Lanka’s application to enter the Regional Comprehensive Economic Partnership (RCEP) and the pursuit of comprehensive economic partnerships with India and Bangladesh. The president expressed optimism about the region’s economic potential and urged young entrepreneurs to actively contribute to the envisioned regional economy.

Regional YPO members participated at this occasion.

By: Isuru Parakrama

Colombo (LNW):

Showers or thundershowers will occur at several places in most provinces of the island after 01.00 p.m., and heavy showers about 100 mm are likely at some places in Central, Sabaragamuwa and Uva provinces and in Kurunegala and Mannar Districts, the Department of Meteorology said in its daily weather forecast today (19).

Showers may occur at some places in Northern, Western and Southern provinces and in Puttalam district during the morning too, the statement added.

The general public is kindly requested to take adequate precautions to minimise damages caused by temporary localised strong winds and lightning during thundershowers.

Marine Weather:

Colombo (LNW): The Central Bank of Sri Lanka (CBSL) issued a statement on Friday (17) providing clarification on changes to its Governing Board and Monetary Policy Board.

The announcement indicated that President’s Counsel Sanjeeva Jayawardena had resigned as a member of the Governing Board, effective from November 5, 2023. Simultaneously, Dr. Ranee Jayamaha had submitted her resignation as a Monetary Board member, effective since September 12, 2023.

On November 14, the Supreme Court held that former President Gotabaya Rajapaksa, former Prime Minister Mahinda Rajapaksa, former Finance Minister Basil Rajapaksa, and other senior state officials are responsible for the economic crisis in the country.

The court stated that the Rajapaksa brothers, former CBSL governors Ajith Nivard Cabraal and Prof. W.D. Lakshman, former Finance Secretary S.R. Attygalle, former Presidential Secretary P.B. Jayasundara, and the Monetary Board members of the Central Bank had breached Article 12 (1) of the Constitution, violating public trust in their administration of the economy, leading to the economic crisis.

The CBSL’s statement emphasised that both Dr. Jayamaha and Mr. Jayawardena had submitted their resignations well before the Supreme Court’s final judgment on the fundamental rights petitions related to the economic crisis.

The Governing Body, established under the provisions of the CBSL Act, No.16 of 2023, oversees the administration and management of CBSL’s affairs, determining general policies. According to the law, members of the former Monetary Board continued to serve as members of the Governing Board.

As per this arrangement, Sanjeeva Jayawardena P.C. and A.N. Fonseka, appointed to the Monetary Board on June 29, 2021, and July 27, 2022, respectively, continued their roles in the Governing Board. However, Dr. Ranee Jayamaha, a member of the Monetary Board since July 29, 2020, resigned from the Monetary Board on September 12, 2023, and thus was not a member of the Governing Board. Jayawardena PC, an appointed member who continued on the Governing Board, tendered his resignation effective November 5, 2023.

Colombo (LNW): The Human Rights Commission of Sri Lanka (HRCSL) has provided recommendations to the government concerning the National Women’s Commission Bill, the Gender Equality Bill, and the Women’s Empowerment Bill. The HRCSL suggests:

1. Consolidating the Gender Equality Bill and the Women’s Empowerment Bill into a single unified Bill.
2. Housing the Gender Equality Council within the upgraded department replacing the Women’s Bureau.
3. Considering the designation of the new department as the ‘Department for Gender Equality.’
4. Strengthening the appointment process for the National Women’s Commission.
5. Promptly publishing the three Bills to facilitate meaningful public consultation on their content.

These recommendations were conveyed in a letter addressed to President Ranil Wickremesinghe on Friday (17).

Colombo (LNW): India’s Minister of Earth Sciences, Kiren Rijiju, met with Sri Lankan President Ranil Wickremesinghe yesterday (17) to discuss their multifaceted bilateral relationship, a priority under India’s Neighbourhood First Policy, Press Trust of India reported.

Rijiju, in Malé for the inauguration of the Maldives President-elect Mohamed Muizzu, emphasised the significance of enhancing connectivity, trade, and investment, aligning with India’s Neighbourhood First policy.

The Security and Growth for All in the Region (SAGAR) policy underscores India’s commitment to maritime cooperation in the Indian Ocean region.

In response to Sri Lanka’s financial crisis in 2022, India provided substantial assistance of approximately USD 4 billion in line with its Neighbourhood First policy, including credit lines and currency support.

In January, India became the first country to pledge support for Sri Lanka’s financing and debt restructuring through the International Monetary Fund (IMF).