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The government has amended the Customs import duty for milk powder.

Thereby, an import tax of Rs. 100 is charged for one kilogram of milk powder with effect from Wednesday (July 12).

The Customs import duty of Rs. 225 per kilogram of milk powder was previously in place for imported milk powder, however, it was later removed.

Against this backdrop, the Ministry of Finance, Economic Stabilization & National Policies decided to re-impose the Customs import duty on milk powder.

This tax revision will be in place until further notice, the ministry noted.

Minister of Education Susil Premajayantha has revealed that the country’s education system will undergo an educational transformation and essential measures will be taken to produce students who are prepared for the twenty-first century.

Speaking at a press conference held at the Presidential Media Center (PMC) themed ‘Collective Path to a Stable Country’, the Minister stated that human resources will be managed for that purpose and education will be reformatted in accordance with global standards in order to produce a sustainable and high-quality education.

The Minister added that the ‘Suraksha Sisu Rakshanaya’ insurance scheme introduced for school children which was suspended due to the financial crisis will resume in 2024.

Speaking at the occasion, Premajayantha further commented; In developed countries, the Ministry of Education acts as a separate entity from the Central Government and a Provincial Minister is in charge of the Ministry of Education. The educational rights of children in countries like India, Canada and Japan have been safeguarded as a result of this educational pattern.

The Ministry of Education in Sri Lanka is under the control of the Central Government. All schools in our country, with the exception of 399, are governed by the Provincial Ministries of education.

The initiative to establish 1,000 national schools was launched in 2001. When the 13th Constitutional Amendment was initiated, there were 17 national schools in this country. However, as a result of political initiatives or the requests of individual Education Ministers, there was a dramatic rise in the number of national schools.

However, one cannot say that it led to high-quality education. There was a period in time when 28 national schools were created overnight. But right now, the education industry needs to undergo a transformative change. Instead of the exam-centred education system, students should be aligned in a student-centred education pattern.

There was a significant setback in education as a result of Covid-19 and the recent economic downturn. Additionally, socio economic issues made it impossible to run the schools effectively due to fuel and gas concerns.

Federation of University Teachers’ Associations (FUTA) and Teacher trade unions did not attend to evaluate the answer sheet of the Advanced Level examination.

The evaluation of the A-Level exam questions has been completed, and that matter is now resolved. I think the exam results could be released in the middle of the next month. The A-Level exams for this year are scheduled to take place in December, according to the Ministry of Education. The Ministry of Education has taken steps to hold all the examinations in the prescribed year.

Also, the program needed to reform the new education is currently being implemented. Plans have been made to start teaching activities through English medium in association with the British Council. For this purpose, 13,800 teachers have been trained so far. The updating of textbooks for English was also started promptly.

The addition of Artificial Intelligence and Information Technology to the curriculum is proposed for two grade levels, Grade 6-9 and Grade 10-13. We are attempting to secure Information Technology assistance for this from companies like Microsoft.

About fifty principal positions are open. While conducting a competitive examination for the recruitment, a trade union went to court and got an injunction. For the recruitment of teacher administration services, there are roughly 22000 openings.

Government employees who applied for the position have also gone to court to explain why they are unable to take the competitive exam. The recruitment process has thus far been delayed as a result. Due to 100 people’s human rights being brought up in court, 4.2 million students’ human rights have already been violated. As a result, we think the court will rule on this issue quickly.

We are working to continue the ‘13 plus’ education program presented by the President when he was the Prime Minister. A selection committee has been established to expand the education sector and the necessary proposals are currently being prepared. Accordingly, the necessary program to expand education will be prepared jointly with Non-Governmental Organizations in the future.

Arrangements are being made to provide loan facilities to Non-Government Universities as well as to create an environment where they can contribute to the economy of this country. It is intended to establish a training University in Kotagala to train students who choose to go to a plantation in order to safeguard the educational rights of the children of estate workers.

By substantially bolstering the regulating program of private and international schools, we are committed to ensuring children’s right to education. With regard to all of these issues, we are working to bring about a change in education from next year.

President Ranil Wickremesinghe stressed the importance of financial discipline in nation-building and announced plans to promptly introduce formal measures to control public expenditure and generate new government revenue.

The President highlighted the need to maximize the value of every rupee spent by the government, as currently, public expenditure often fails to achieve this objective. He expressed concern over not only the neglect of public revenue but also the unrestricted spending of public funds on non-beneficial activities, which has contributed to the economic crisis in the country.

Furthermore, President Wickremesinghe attributed the current financial problems to the lack of parliamentary discussions on this matter in the past two or three years. To address this issue, he informed that several committees have been established in the parliament to examine the state’s financial situation and income tax matters.

President Wickremesinghe made these remarks during the presentation of a report by the committee chaired by State Minister for Finance, Economic Stabilization, and National Policy, Mr. Ranjith Siyambalapitiya, which aimed to propose strategies for generating new sources of income for the state. The report was submitted to the President by State Minister Ranjith Siyambalapitiya at the Presidential Secretariat yesterday (12).

The report encompasses recommendations aimed at establishing a structured framework to attain the revenue goals of the Inland Revenue Department, Sri Lanka Customs, and the Excise Department. It also suggests the implementation of novel approaches to augment government revenue and the creation of a digital economic infrastructure to support these endeavours.

President Ranil Wickremesinghe directed the Minister of State to engage in further discussions regarding these proposals and present them to the Parliamentary Committee on Ways and Means.

Furthermore, the President emphasized the utmost importance of leveraging digital technology to its fullest potential in implementing these recommendations.

He also emphasized the necessity of formally informing the public about these initiatives through an extensive media campaign.

President Ranil Wickremesinghe further said;

“In the current economic crisis, a major concern is the improper collection of tax revenue. Some individuals and entities who are obligated to pay income tax fail to do so, leading to a significant shortfall. Additionally, there have been reports of the government experiencing delays in receiving complete tax revenue from customs, as well as similar accusations regarding excise duty.

During this crucial period of economic recovery, it is imperative to establish comprehensive financial discipline in the country. The first step is to control government expenditure, which is currently being addressed. Secondly, the government must ensure that each rupee spent delivers maximum value, as this is often not the case with public expenditure. Therefore, careful attention needs to be given to this matter within the Parliament. Thirdly, there is a need to increase state revenue. To tackle this challenge, a committee led by State Minister Ranjith Siyambalapitiya has been appointed and entrusted with the responsibility.

I extend my gratitude to everyone involved in the preparation and presentation of this report today.

We must explore new avenues for increasing income tax revenues, as outlined in the report. This aspect has received significant attention within our Parliament. It can be argued that the lack of parliamentary discussions in the past two or three years, along with a lack of interest in certain cases, has been a primary cause of the economic crisis. To address this, several inquiry committees on income tax and the fiscal situation have been established. It is within these activities that we should seek out these new approaches.

Furthermore, digitization plays a crucial role in these endeavours. Those who oppose this transformation should consider stepping aside, as I intend to enforce digitization within a designated timeframe. Any shortcomings that arise should be addressed promptly.

Importantly, the income generation methods we have adopted draw inspiration from the United Kingdom. These methods have been greatly refined and improved over time. Thus, we must examine the latest systems and develop the necessary infrastructure accordingly. Proposed amendments to the Audit Act have been put forward to support this objective.

We have extended an invitation to Mr. Francis Maude, who served under Prime Minister David Cameron and has substantial expertise in this area, to visit Sri Lanka and share his insights on sectoral reform.

When the British colonized this country, they prioritized revenue collection and appointed revenue officers for this purpose. Under a unified administration, revenue officers and local officials, known as Mudaliyar (or Mudali), paid special attention to revenue collection. As a result, income did not decline, and it even increased with the development of tea, coconut, and rubber industries. However, since the 1970s, revenue generation has been neglected, and it has been removed from the administrative agenda of the country. Not only has revenue been overlooked, but state funds have been spent without restraint.”

Minister of State for Finance, Economic Stabilization and National Policy Mr. Ranjith Siyambalapitiya;

This report has been meticulously prepared under the guidance of the President, encompassing short-term, medium-term, and long-term proposals. Its aim is to streamline existing sources of income and introduce new ones, ensuring that the burden on the people remains minimal.

It is important to acknowledge the wealth of experience we have gained while addressing the challenge of state revenue. Thanks to the President’s guidance, we have attained a certain level of stability. However, there are still numerous objectives to achieve in order to increase our state revenue in proportion to the gross domestic product.

We have reached the limits of introducing new taxes and raising tax percentages. Therefore, our focus must now shift towards expanding the tax base and closing the gaps in the tax net to enhance revenue generation.

Moreover, great emphasis has been placed on enhancing government revenue through improved competitiveness and transparency. Extensive discussions with all stakeholders have been on-going, leading to a fair resolution of long-standing contentious issues.”

President Ranil Wickremesinghe has granted C.D. Wickramaratne another service extension as the Inspector General of Police (IGP), the Public Security Ministry said.

Accordingly, IGP Wickramaratne has been granted a 03-month service extension from today as the police chief, subject to the approval of the Constitutional Council, according to the President’s Media Division (PMD).

A special meeting took place between the President and the Public Security Minister this evening (July 09) to decide on appointing a new Inspector-General of Police (IGP) due to impending retirement of Wickramaratne.

Meanwhile, President Wickremesinghe had reportedly tasked Minister Alles with deciding whether former IGP C.D. Wickramaratne should be given another tenure extension or an Acting IGP should be appointed.

Wickramaratne was initially supposed to retire from the police service on March 26, 2023, however, President Wickremesinghe extended his tenure by three months until June 26 by way of a special gazette notification dated April 06.

Thus, the position of IGP was set to be vacant since the end of Wickramaratne’s tenure on 26 June.

Senior Deputy Inspector-Generals of Police (SDIGs) Deshabandu Tennakoon, Nilantha Jayawardena, Lalith Pathinayake, Priyantha Weerasooriya and Ajith Rohana were reportedly among the nominations for the top post of the police force.

Education minister Susil Premjayanth has stressed the need to properly manage the human resources to emerge victorious in professional life in a world in which artificial intelligence is the norm and knowledge has no bounds.

New knowledge through an updated technology improves professional efficiency, the minister told school principals in Puttalam district at an education quality development programme.

He also said that once related court proceedings are settled and the examinations for graduate teachers are held, recruitments will be made to address the prevailing teacher shortage.

With that, management of schools will be in order and their administration will become easier, he said.

The minister also promised speedy steps to eliminate salary anomalies in the education sector.

The Tax Appeals Commission will be annulled due to an inefficient tax appealing process, said justice minister Wijayadasa Rajapakshe.

A special act will be tabled in parliament soon for the purpose, he said.

The commission had not filed a single court case in the past two years, said Rajapaksa, adding that delays in taking up appeals has lost the opportunity to collect more than Rs. 117,000 million defaulted tax income.

Only 31,000 pay tax from a total of 500,000 personal income tax files in Sri Lanka, Chair of the Sectoral Oversight Committee on National Economic and Physical Plans MP Mahindananda Aluthgamage stated.

According to a statement from the Parliament of Sri Lanka, the MP pointed out that there are 105,000 registered limited companies in the country, but 82% of the tax revenue is received from only 382 companies.

MP Aluthgamage also emphasized that it is important to maintain the inflation, the reserves of the country and the government’s income in an optimal condition by December by the time of the second review of the International Monetary Fund, given that the said factors must be taken into account when granting loans.

He further stated that therefore, his Committee will hold regular discussions with Sri Lanka Customs, Excise Department and Inland Revenue Department to provide necessary facilities to increase the state revenue.

MP Mahindananda Aluthgamage made the remarks when the Sectoral Oversight Committee on National Economic and Physical Plans met in Parliament recently (July 06).

During the meeting, the MP spoke at length about the failure of the Inland Revenue Department to collect the tax revenue and stated that the Committee is making positive improvements in this regard. There was also a discussion about the collection of 904 billion rupees in arrears which is due to the Inland Revenue Department.

MP Aluthgamage also pointed out that discussions are being held with the Minister of Justice to amend the Inland Revenue Act. The MP has expressed his intention to provide his utmost assistance to fill the existing employee vacancies in the Inland Revenue Department.

The Inland Revenue Commissioner General who spoke on the occasion said that he appreciated the support received from the Sectoral Oversight Committee on National Economic and Physical Plans to make the work of his department efficient.

The Commissioner stated that the tax revenue target given by the government for the year 2023 of Rs 1.6 trillion was expected to be earned by 40% in the first 6 months and 60% in the remaining 6 months, and the target for the first 6 months has already been met. He further stated that work is being done to generate expected tax revenue in the remaining 6 months.

MP Aluthgamage emphasized the need to establish a systematic mechanism to regulate the collection of tax revenue. Members as well as officials pointed out that due to the fact that the data provided for the registration of companies in this country is not true, they have to face problems in tax collection.

The Committee also discussed at length the need to establish a digital data system linking the Sri Lanka Customs Department, the Excise Department and the Inland Revenue Department as soon as possible, as well as the need to re-register the private tax file in the country.

Members of the Committee MPs Wimalaweera Dissanayake, Eran Wickramaratne, Sudath Manjula, Gunathilaka Rajapaksha, Dhammika Perera, Udayana Kirindigoda, Karunadasa Kodithuwakku, Madhura Withanage, and Mohomad Muzammil were present at the Committee meeting.

A group of officials including the Inland Revenue Commissioner General was also present at the Committee meeting.

President’s Secretary Saman Ekanayake has sent an official letter to all Secretaries to Ministries regarding attending meetings of the Committees of Parliament.

Accordingly, Mr. Ekanayake sent the letter today (06 July), while Parliament Speaker Mahinda Yapa Abeywardena and newly-appointed Secretary General of Parliament Kushani Rohanadeera were also copied, the President’s Media Division (PMD) reported.

It has been reported that in the letter of concern, Ekanayake stated that in the event the Opposition Leader wished to summon public officers for a meeting due to be held within the premises of the Parliament, he will be required to inform the relevant Minister, in writing, of the matter, who will then sanction the required officers to attend the meeting.

Venerable Rajangane Saddharathana Thera who was arrested and remanded for making statements that could disrupt religious harmony, has been granted bail.

Venerable Rajangane Saddharathana Thera was granted bail by the Fort Magistrates Court today. 

He was arrested in Anuradhapura in May based on a complaint filed by a fellow monk, Venerable Pahiyangala Ananda Sagara Thera.

In the complaint, Venerable Rajangane Saddharathana Thera was accused of having made comments that harm religious co-existence and those disrespectful to Buddhism.

The Monetary Board of the Central Bank of Sri Lanka (CBSL) has decided to reduce the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) of the Central Bank by 200 basis points (bps) to 11.00 per cent and 12.00 per cent, respectively.

The Board arrived at this decision, at its meeting held on Wednesday (05 July), following a careful analysis of the current and expected developments, including the faster-than-envisaged disinflation process and benign inflation expectations in the domestic economy, with the aim of enabling the economy to reach its potential and stabilising inflation at mid-single digit levels in the medium term, while easing pressures in the financial markets, the CBSL said.

The Board expects that, with this reduction of policy interest rates by 200 bps, and the reduction of policy interest rates by 250 bps in early June 2023, along with the significant reduction of risk premia on government securities witnessed recently, the market interest rates, particularly lending rates, will adjust downwards adequately and swiftly.

“Therefore, the banking and financial sector is urged to pass on the benefits of this significant easing of monetary policy by the Central Bank to individuals and businesses, thereby supporting economic activity to rebound in the period ahead,” the statement said.

The Supreme Court on Monday (10 July) ordered that a report on the measures taken to compensate those affected by the X-Press Pearl disaster, and the progress in this regard, be submitted to the court before 15 September.

The relevant order was issued by a Supreme Court bench comprising of Justices Murdhu Fernando, Shiran Gunaratne, Achala Wengappuli and Priyantha Fernando when the case was taken up in court this morning (10).

While the attorney who appeared on behalf the fishing community raised concerns that they are yet to receive compensation for the massive losses suffered due to the X-Press Pearl disaster in 2021, Additional Solicitor General Nerin Pulle, appearing on behalf of the Attorney General, assured that measures are underway in this regard.

Bench chair Justice Murdhu Fernando then ordered that the process in this regard must be expedited, and ordered the lawyers of the fishing community to file the compensation requests before other relevant institutions including the Marine Environment Protection Authority (MEPA).

The relevant petition is due to be called before the court again on 05 and 06 October.

Laugfs Gas PLC, one of the two largest liquefied petroleum (LP) gas suppliers in the country, has also decided to reduce the prices of its domestic gas cylinders following the significant price revision announced by Litro Gas earlier this week.

Accordingly, the price of a 12.5 kg cylinder of Laugfs LP gas has been reduced by Rs. 300, bringing down the price to Rs. 3,690.

The revised prices are as follows;

12.5kg cylinder – Rs. 3,690 (reduced by Rs. 300)

5kg cylinder – Rs. 1,476 (reduced by Rs. 120)

The Laugfs Gas Company said the price reduction, effective from midnight today (July 06), was made in a bid to directly provide the benefit of the recent price drops in the global market to the consumers.

The general public can access further details regarding the price revisions, and the district-wise prices of the gas cylinders by contacting the ‘1345’ hotline, the company added.

Meanwhile, Litro Gas Lanka had also slashed the prices of its domestic gas cylinders substantially this week:

12.5kg cylinder – Rs. 2,982 (reduced by Rs. 204)

5kg cylinder – Rs. 1,198 (reduced by Rs. 83)

2.3kg cylinder – Rs. 561 (reduced by Rs. 37)