Colombo (LNW): Sri Lanka is eager for China’s robust support in advancing digital education through comprehensive education reforms, said Education Minister Susil Premajayantha, addressing an exclusive meeting with China’s Education Minister Huai Jinpeng, on the sidelines of the 42nd session of the UNESCO General Conference in Paris, France.
Premajayantha expressed profound gratitude for China’s unwavering support throughout history, enabling Sri Lanka’s ambitious journey towards becoming a nation propelled by innovation in transformative education processes.
The meeting extensively covered the progress of educational reform initiatives and development programs within Sri Lanka’s education sector. The two ministers engaged in a detailed discussion on the challenges currently faced by Sri Lanka in its developmental endeavors, exploring international solutions.
The focus was particularly on future measures to fortify the education system, ensuring its contribution to economic development and the anticipated achievements through strengthened bilateral relations.
Highlighting recent collaborations, the Minister pointed out that President Ranil Wickremesinghe had recently signed a Memorandum of Understanding (MoU) with China’s Huawei Institute, solidifying Huawei as a strategic partner for the digitisation of education in Sri Lanka.
He also underscored the invaluable support from Huawei, acknowledging their role in offering technical advice, knowledge exchange, and providing training and infrastructure, actions deeply appreciated by Sri Lanka.
Colombo (LNW): The Sri Lanka Police are urging the public to be cautious of misleading phone calls after a surge in reported cases of money fraud.
Scammers are making panic-inducing calls, falsely claiming emergencies like a child falling ill or someone having a sudden heart attack, the Police said in a statement.
The fraudsters instruct individuals to deposit money, targeting both relatives and workplace heads.
Some people have fallen victim to the scams, depositing varying amounts of money without verifying the legitimacy of the calls.
The police further emphasised the importance of reporting such incidents and advised the public to exercise caution and refrain from providing money or valuables to unknown callers.
Colombo (LNW): The low-level atmospheric disturbance over the island still persists, and therefore, showers or thundershowers will occur at times over most parts of the island, the Department of Meteorology said in its daily weather forecast today (13).
Heavy showers above 100 mm are likely at some places in Western, Sabaragamuwa, Central, Southern, Northern, North-Western, North-central and Eastern provinces, 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:
Condition of Rain:
Showers or thundershowers will occur at several places in the sea areas around the Island.
Winds:
Winds will be North-easterly or variable in direction and wind speed will be (20-30) kmph. Wind speed can increase up to (40-45)kmph at times in the sea areas off the coast extending from Puttalam to Trincomalee via Mannar and Kankasanthurai.
State of Sea:
The sea areas off the coast extending from Puttalam to Trincomalee via Mannar and Kankasanthurai will be fairly rough. The other sea areas around the island will be slight. Temporarily strong gusty winds and very rough seas can be expected during thundershowers.
Colombo (LNW): The Information and Communication Technology Agency of Sri Lanka has revealed that President Ranil Wickremesinghe will present proposals for the implementation of the Digi-Econ (DIGIECON) economic concept, according to the President’s Media Division (PMD).
The DIGIECON initiative aims to generate a revenue of US$15 billion through digital economies by 2030, as outlined by Sachindra Samararatne, Deputy Chief Digital Economic Officer of the Information and Communication Technology Agency of Sri Lanka (ICTA).
In a significant development, the Prime Minister has directed the Ministry of Technology to lead the establishment of the digital economy through extensive public and private partnerships, marking a notable milestone for Sri Lanka.
Samararatne emphasised that the Minister of State for Technology, Kanaka Herath, has successfully engaged in discussions with various stakeholders, and the resulting plan has been submitted to President Ranil Wickremesinghe.
These details were shared by Sachindra Samararatne during his participation in the “101 Katha” programme produced by the President’s Media Division.
Full Statement:
“When discussing the possibilities with computers, ‘E Sri Lanka’ was deliberated. By 2015, the emphasis shifted from ‘e,’ and the digital era took centre stage, particularly with the advent of smartphones. Today, activities like buying and selling have undergone digitisation, a transformative change facilitated by the internet.
In line with the President’s guidance, Digi-Econ introduced an economic concept in 2015, aiming for success by 2030. The dynamic nature of the digital landscape necessitates continuous adaptation. The inaugural step toward constructing a digital economy, fostering collaboration between the public and private sectors, has been taken. The potential for digitisation to contribute up to 20% to the existing economy’s growth is substantial, promising significant economic improvement. Numerous individuals in Sri Lanka have played a role in shaping the digital economy policy.
Implemented in partnership with the public and private sectors, as well as the World Bank, details about this initiative are available on the Ministry of Technology’s website. The digital economy has significantly empowered the new generation, becoming an integral part of everyone’s economic participation.
The sustainability of this policy is evident due to strong government support, attracting substantial investments. International investors consider a country’s level of digitisation when making investment decisions. Providing governmental backing for the advancement of the digital economy is crucial and establishing an institution for this purpose would be beneficial. The inception of Digi-Econ was inspired by the President’s vision, advocating for collaborative efforts between the public and private sectors. The President is actively working to elevate the country’s economy by synergising these sectors.
Transforming the public mindset can accelerate economic development significantly, as evidenced by the economic progress of countries like Singapore and Malaysia. Studying their economic advancements is crucial, and we should establish an institution tailored to our model.
Many nations have propelled their digital economies through budgetary allocations. To foster the export sector, investing in the digital economy is imperative. Over the past decade, our IT organisation has collaborated with the World Bank, leading to rapid growth in Sri Lanka’s information technology industry. Specific strategies are necessary and an institutional framework with budgetary support is crucial to implementing the digital economy policy. Sponsorship empowers both the government and private sectors, positioning Sri Lanka’s economy for strength and growth.
Currently, 4.3% of GDP is allocated to the digital economy. Increasing this to 20% can robustly propel the digital economy forward. The impact of digitisation on public services and individual lives is apparent. President Ranil Wickremesinghe aims to present proposals for the Digi-Econ (DIGIECON) economic concept through this year’s budget, striving for a $15 billion income for Sri Lanka from digital economies by 2030.
The Information Technology Agency has laid the groundwork for a digital country. Building upon this foundation, envisioning a fully digitised nation is plausible. Our institutions have directed efforts to the Australian market from 2011 to 2018 and now it’s essential to establish a digital economic order to surpass the existing foundation. Strengthening the legal framework is vital.
Our institution has tailored a model based on Australia’s digital transformation, providing leadership training upon its introduction to Sri Lanka. Technical support is offered and the government is poised to provide necessary assistance. This unique opportunity demands that Sri Lanka fortify its digital economy to enhance productivity at individual and organisational levels. The qualitative impact of such productivity can swiftly advance the country’s overall economic development.”
Colombo (LNW): Prevailing showery conditions in the island are likely to continue further amidst low level atmospheric disturbance over the island, the Natural Hazards Early Warning Centre of the Department of Meteorology said in an advisory statement today (12).
Heavy showers above 100mm are likely to occur at some places in Western, Central, Sabaragamuwa, Southern and Eastern provinces and in Kurunegala and Polonnaruwa districts, the statement added.
Colombo (LNW): Possible delays may be encountered by trains on the main line due to a technical malfunction of a train near Ambepussa Railway Station, as announced by the Railway Control Room.
This morning, an express train traveling from Kandy to Matara came to a halt due to a technical issue, as reported by Sri Lanka Railways.
The department is currently making efforts to rectify the situation and restore train services on the main line.
Colombo (LNW): Comprehensive efforts will be undertaken both within and outside Parliament to have the suspension on Sri Lanka Cricket, imposed by the International Cricket Council (ICC), lifted, Urban Development and Housing Minister Prasanna Ranatunga asserted.
The Minister emphasised that the government, under the leadership of President Ranil Wickremesinghe, is actively engaging in negotiations with the International Cricket Council to revoke the ban on cricket.
He acknowledged the widespread acceptance among citizens that Sri Lanka Cricket has been marred by corruption.
Minister Prasanna Ranatunga highlighted the national significance of the issue, noting that all political parties and opposition groups in Parliament collaboratively passed a unanimous resolution to eradicate corruption within the Sri Lanka Cricket board. He emphasised that this collective action is not politically motivated.
Numerous international media outlets, including the Cricinfo website, reported that the International Cricket Council enforced the cricket ban on Sri Lanka following a request from Sri Lanka Cricket President Shammi Silva.
Minister Prasanna Ranatunga condemned Silva’s alleged request, asserting that Sri Lanka cricket belongs to the people and is not the personal property of any individual. He characterised such a request as a betrayal of the country, calling for immediate legal action by the relevant minister.
Expressing the need for unity among cricket enthusiasts to combat the corruption within the governing body, Minister Prasanna Ranatunga stated that the collective aspiration of every citizen and young cricketer in Sri Lanka is to reclaim the rightful place of cricket in the country. He assured that the government is persistently working towards achieving this goal.
Economist Arthur Laffer in 1974 argued that cutting tax rates can result in increased total tax revenue. The Laffer tax curve is often used to illustrate the argument that cutting tax rates can result in increased total tax revenue. Today with an ongoing IMF program, the role of taxation cannot be overstated.
For most countries, taxation serves as the primary source of revenue for funding essential public services and infrastructure development. However, the imposition of high income and direct taxes in third-world economies, often under pressure from multilateral agencies invariably causes havoc that overshadows its intended economic benefits to a country. This article argues that getting the right mix of indirect taxes and direct taxes can prove potent in driving domestic economic growth, capital formation, and attracting foreign investment and domestic investment.
Excessive taxation
The Government spokesman has said increased tax revenue was essential for improving the country’s financial situation and addressing the debt crisis. Unfortunately excessive direct and indirect taxes can in many instances place a heavy burden on both individuals and businesses. While these taxes are meant to support governments to deliver on its mandate, it can have unintended consequences. Often excessive tax reduces the disposable income for individuals, reducing their ability to spend and invest. For businesses, high taxes can hamper growth, reducing capital for expansions that then create jobs.
Numerous examples exist where third-world economies have been forced to raise taxes to demonstrate fiscal responsibility to multilateral agencies. However, this approach often leads to a vicious cycle. Increasing taxes can stifle economic growth, resulting in less revenue collection than expected, ultimately undermining the very goal it aims to achieve – economic growth and poverty reduction.
Capital formation and DDI/FDI
High taxes leave little room for individuals and businesses to save and invest, which is crucial for capital formation. Accumulated capital is the driving force for economic development, enabling countries to invest in infrastructure, education, and innovation. Excessive taxation undermines this process by leaving citizens and businesses with insufficient resources for long-term investments.
Attracting foreign investment is critical for third-world nations looking to bump up growth post-COVID. Excessive taxes deter foreign investors, as they seek stable, predictable tax environments. When tax rates are excessive, most investors opt to allocate their resources to more manageable tax regime thus depriving a country from valuable foreign investment that can inject much-needed capital and technology into a country, facilitating economic growth and job creation.
Way forward
Sri Lanka needs to objectively study the impact of high taxes. Therefore increasing taxes further on the public will only hurt the final economic recovery. While fiscal responsibility is crucial, it must be balanced with the need to promote economic growth and not hit the poor hard. We need to look at tax reduction strategies, simplification of tax systems, and increased efforts to combat tax evasion (many people don’t pay any taxes, just a few hundred thousand people pay taxes) and increase the pool of taxpayers. For example, start with a mandatory tax file to own a car or a house or to claim to a subsidy. Customs must up their game by improving governance and drive digitalisation. The Government by promoting a favourable tax environment, can prevent economic stagnation, encourage savings and attract new foreign investment.
We need to improve revenue collection rather than continue to increase tax rates and squeezing the existing taxpayers dry. Otherwise the typical middle-class family that is struggling due to the taxes reducing their overall buying power, will continue to negatively affect businesses and retailers across the country. Given that Sri Lanka has the lowest government revenue among South Asian countries, amounting to only 9.1% of its GDP the much needed Policy consistency in Sri Lanka’s tax regime and structure, including customs duties, excise taxes, Direct and indirect taxes and para tariffs is now an absolute necessity.
Famous economist Arthur Laffer in his graph visually shows the relationship between tax rates and the amount of tax revenue collected by governments. The curve is often used to illustrate the argument that cutting tax rates can result in increased total tax revenue.
References: https://www.investopedia.com/terms/l/laffercurve.asp#:~:text=The Laffer Curve is based, in increased total tax revenue. https://www.presidentsoffice.gov.lk/index.php/2023/02/21/the-current-tax-policy-is-not-a-normal-tax-policy-but-a-rescue-operation-president/?lang=en
Reporters Without Borders (RSF) calls for the release of Le Thach Giang, a Vietnamese political commentator who was recently sentenced to three and a half years in prison for allegedly “abusing democratic freedoms”.
On 31 October 2023, Vietnamese political commentator Le Thach Giang was sentenced to three and a half years in prison by a court in Phan Rang, South Vietnam. Giang, 66, was accused of “abusing democratic freedoms” under Article 331 of the Vietnamese Penal Code, a bogus charge which is widely used to persecute journalists.
“Le Thach Giang was only serving the public interest by reporting on abuse of power by the Vietnamese authorities, and should never be detained, not to mention sentenced to a harsh prison term. We call on the international community to step up pressure on the regime to obtain his release alongside all other journalists and press freedom defenders detained.”
Cédric Alviani RSF Asia-Pacific Bureau Director
Le Thach Giang was arrested on 28 June in the southern city of Phan Rang. He was accused of publishing articles and hosting live streams critical of the Vietnamese regime on his Facebook page named “The Despots.” Giang’s publications mainly focused on cases of coercion and land confiscation by local authorities.
In Vietnam, jailed journalists are almost systematically subjected to ill-treatment and denied medical care. On 2 August 2022, Do Cong Duong died in detention, at the age of 58, as a result of mistreatment in detention. More recently, in August 2023, the family of detained journalist Le Huu Minh Tuan revealed that he was suffering from a severe scabies infection for which he is still denied medical treatment.
Vietnam ranks 178th out of 180 countries and territories, at the bottom of the 2023 RSF World Press Freedom Index and is among the world’s worst jailers of journalists.
REPORTERS SANS FRONTIÈRES / REPORTERS WITHOUT BORDERS (RSF)
Greetings to all Hindu devotees of Sri Lanka on this auspicious occasion of Diwali, a significant festival celebrating triumph of light over darkness, knowledge over ignorance and good over evil.
Diwali festivities commemorate epic legends of victory secured by God Vishnu restoring the balance of good and evil in troubled times.
Devotees illuminate lamps and participate in religious rites, upholding the shared aspiration of infusing light within every soul.
Reflecting on the country’s recent experience of an unprecedented economic crisis, the government sought to have Sri Lanka navigate through unparalleled challenges. Presently, the nation is gradually embarking on a path of illuminated development, seeking to dispel the preceding times of darkness.
As we celebrate Diwali, it is my fervent hope that the nation unites on this occasion and becomes a beacon, igniting the lamps of prosperity across the country, steering Sri Lanka towards being a developed country by 2048.
May this festival of lights bring prosperity and wellbeing while extending happy Diwali wishes to all Sri Lankans and Hindus worldwide.
Ranil Wickremesinghe, President, Democratic Socialist Republic of Sri Lanka.
Way forward
