Author: TELO Admin

A logistics centre in Colombo Port with China’s CM Ports, Sri Lanka Ports Authority and Access Engineering will get a 15-year tax holiday, according to a gazette notice.

Thirty expatriates will be completely freed from income tax.

The corporate income tax exemption will start from the first year the project company makes a taxable profit or two years after commercial operations, whichever comes earlier.

Taxes on dividends will be exempt for the 16 years.

The project company will be exempt from withholding tax for the project period.

The logistics centre will be built on a 50-year build operate transfer project.

Imports for the project will be exempt from value added tax, port and airport levy and Export Development Cess for the 6 year project implementation period.

Customs import duty will be exempted for project imports, unless they are in a ‘negative list’.

Import of items in the negative list will be allowed, if they are not available in sufficient quantity domestically.

Accusations are growing that the former Sri Lankan government, led by strongman president Gotabaya Rajapaksa, blocked an investigation into the country’s worst terrorist attack amid claims that they had helped orchestrate the blasts in order to return to power.

In the attacks on Easter Sunday in 2019, six suicide bombers targeted churches and luxury hotels across the country, killing 269 people, including eight British tourists.

But almost five years on, an investigation has failed to provide any answers for how the attacks took place and the security failures that led up to them. So far, there have been no criminal convictions.

Instead, people previously involved in the investigation, and the leader of Sri Lanka’s Catholic church, have alleged that inquiries were repeatedly sabotaged and obstructed by the Rajapaksa government.

In a recent documentary for Channel 4’s Dispatches, a whistleblower alleged that the attacks were part of a plan to create instability in Sri Lanka and ensure that Rajapaksa, a member of Sri Lanka’s most powerful political family, would win the presidential elections in 2019.

The source said he had helped an intelligence officer with close ties to the Rajapaksa family meet members of the local Islamist militant group, National Thowheeth Jama’ath (NTJ), that carried out the attack. He said it had been part of a plan that had been hatched over a couple of years to create an “unsafe” security situation that would help bring Rajapaksa to power.

The Rajapaksa family had ruled Sri Lanka for almost a decade from 2005. They were credited with ending its bloody, 26-year-long civil war but became notorious for their authoritarian methods, including the use of “death squads” to target critics and journalists.

Mahinda Rajapaksa was ousted in 2015 after a backlash against alleged corruption, but the family had planned a return to power in the 2019 election, this time with younger brother Gotabaya as the presidential candidate.

He won the election but was toppled dramatically from power in July last year, after the country experienced a catastrophic economic crisis, and replaced by Ranil Wickremesinghe, who is seen as close to the Rajapaksa family.

Ravi Seneviratne, the former director general of police who initially led the Easter attacks investigation, told the Observer that after Gotabaya Rajapaksa was elected president, the government had “prevented the investigation”.

He said his team had already “established links” between state and military intelligence officers and the NTJ suicide bombers. He said that the investigations had also led him to believe there was someone higher up helping to coordinate the attack who had yet to be apprehended.

However, when Rajapaksa took office, Seneviratne’s entire team at CID was taken off the case. More than 20 of his officers were transferred without his approval and travel bans were imposed on all 700 CID officers.

“The motive was to make them too scared to send a message. Many were too scared to work and some people even applied for transfers out of CID,” he said. Since then, Seneviratne claims there have been several attempts to “keep me quiet”.

The targeting of those involved in the investigation took a murkier turn this month after the attorney general told the courts that there had been a conspiracy to murder Shani Abeysekara, the former head of Sri Lanka’s CID, who was overseeing the investigation before he was suddenly removed when the Rajapaska government came to power.

A court petition filed by Abeysekara, which was taken up this month, said a plan to kill him in a staged vehicle accident had been uncovered. The petition identifie dhis involvement in the bombing investigation as one of the reasons for the assassination attempt.

Upul Jayasuriya, the lawyer representing Abeysekara, said that his client’s involvement in the Easter bombing investigation was “one of the biggest problems”. Still fearful for his life, Abeysekara declined to comment directly on the case.

Last year, Abeysekara went public with allegations that prior to the attacks – when the CID was already investigating NTJ militants – state and military intelligence officers had sabotaged the investigation and “fabricated” evidence to divert investigators away from the group, including ringleader Zahran Hashim, who later carried out one of the suicide bombings.

He has also alleged that his attempts to raise the issue of NTJ militants with the national security council had been obstructed. After the Easter bombings, he said, his investigators had established links and vidence of communication between intelligence officials and members of the NTJ group that carried out the attacks.

Another former CID officer who was part of an investigation into NTJ militants months before the bombings, and who asked to remain anonymous for safety reasons, confirmed the accounts.

“There were several attempts that were made by the military intelligence and state intelligence to sabotage the criminal investigation department’s work,” he said.

While more than 200 people have been charged in the investigation, so far no one has been convicted, and there have been no answers on how several specific high-level warnings about the imminent attacks, particularly from Indian intelligence, were ignored.

In January, former president Maithripala Sirisena, who was in power at the time of the attacks, was ordered by the supreme court to pay millions in compensation to the victims.

Following the Dispatches revelations, the Sri Lankan government said it had set up a special parliamentary committee to investigate allegations, but sources said that no one had been called to testify before it.

A recent statement by the ministry of defence said the government “vehemently denounces the accusation of orchestrating the attack and assisting the bombers against a dedicated senior military officer who has served the nation for 36 years”.

The ministry added that “successive Sri Lankan governments have demonstrated an unwavering commitment to uncovering the truth”. Gotabaya Rajapaksa could not be reached for comment.

Among the harshest critics of the ongoing failures is Cardinal Malcolm Ranjith, head of the Catholic church in Sri Lanka, who alleges there was a cover-up from the highest levels of government.

“When Gotabaya Rajapaksa came to power, he appointed a stooge to take over the case who made a blunder of all investigations,” he said. “We know that there are several occasions when evidence was deliberately covered up. They have made a mockery of transparency, a mockery of accountability and a mockery of democracy.”

Ranjith added: “We are demanding a transparent, accountable investigation where the politicians don’t meddle with the investigators.”

For the families of the victims, the lack of justice has been excruciating. “I ask God every day to take us too. How can we live with this pain?” said Sebastian Patrick Fernando, 74, who lost his son Neranjan in the attack on St Sebastian’s Church in Negombo.

“We voted for the Gotabaya Rajapaksa government thinking they would give us answers. But they have done nothing, and now people say they did it to come to power. They should be held responsible.”

Thilina Harshani, who was paralysed from the waist down and lost her six-year-old son in the blast, also blames the government for inaction. “Why did this happen to us?” she said. “Why did they bomb our church? Why were we targeted? And why are the masterminds still on the loose?”

Former president Maithripala Sirisena has expressed readiness to contest for presidency again.

He said he was prepared to consider if his SLFP’s executive council decides so.

The party chief was speaking at an event to hand over appointment letters to his representatives at Bingiriya electorate on 23 December.

He also inspected a Batik clothing production centre.

Incumbent Ranil Wickremesinghe, opposition leader Sajith Premadasa, Dilith Jayaweera, Dhammika Perera and Janaka Ratnayake have said that they would contest at the presidential election.

His Eminence Malcolm Cardinal Ranjith, the Archbishop of Colombo, spoke out on the pressing issue of poverty in Sri Lanka, urging for compassion and action during the Christmas season.

In a heartfelt address, Cardinal Ranjith highlighted the plight of millions struggling to meet their basic needs. He cited alarming statistics, emphasizing that nearly 8 million Sri Lankans face daily food insecurity and countless others endure hardships like rising taxes, unemployment, and healthcare access limitations.

“The shattered dreams of our people,” Cardinal Ranjith proclaimed, “are compounded by the burden of debt, the anguish of sacrificing children’s needs for their own survival, and the sorrow of witnessing rampant corruption.”

He expressed dismay at Sri Lanka’s position among the world’s most corrupt nations and criticized the government’s perceived protection of those involved. “This Christmas,” the Cardinal asserted, “must be a turning point. Let us not be trapped by a system that exploits and disregards its own people.”

Instead of succumbing to despair, Cardinal Ranjith offered a message of hope and solidarity. He emphasized the universal call for compassion, regardless of faith. “This Christmas,” he declared, “let us transcend differences and extend a helping hand to those in need.”

Foreign minister ali sabry responds to questions about the current direction of the country’s foreign policy and plans for the future.

Excerpts of the interview:

Q What is the next direction of our foreign policy?

A: The next direction is to create a platform for all the countries in the world to come and invest in Sri Lanka. That is to make Sri Lanka a hub for tourism, aviation, investment and shipping. That is how we can create partnerships, and get the know-how. To finalize debt restructuring, we are yet to finalize work with private bond holders. Our focus, as a country, is to complete it within the first quarter of next year.

Q What is the role of the Foreign Ministry in this case?

We work with the Finance Ministry and President Ranil Wickremesinghe. Once we agree on the direction, our Ministry, along with the embassies, will engage with them to get the support required. Based on what is prepared by the Finance Ministry, we sometimes brief the ambassadors based in Colombo. We sometimes brief the relevant countries through our embassies. It is a big role. We are proud that we manage to play that role in debt restructuring.
As far as private bond holders are concerned, the Finance Ministry is handling it through our legal; and financial advisors. The Foreign Ministry has nothing to do with it.
The Paris Club, India and China came on board in debt restructuring. It is a historical achievement for the country. In relatively a small period of time, we managed to get assurances from them.

Can Sri Lanka join BRICS?

Q The next year is going to be an election year. How challenging is the implementation of economic adjustments?

It is definitely going to be challenging. Whoever comes from whatever party, Sri Lanka’s economic interests should be kept in mind instead of making electoral promises that cannot be fulfilled. We must learn from the past. If you look at the last election, both the parties gave promises economically unsustainable. former President Gotabaya Rajapaksa had to execute them. Ultimately, it contributed to the collapse of the economy. The prospective candidates must act with responsibility and only share what could be realized within the economic plan.

Q In your budget speech, you mention about Sri Lanka’s plan to join BRICS (Brazil, Russia, India, China, and South Africa). How far have you progressed in
this case?

We have got a note from the Sectoral Oversight Committee of Parliament on Foreign Relations. Internally, there is a team engaged in research into this matter. It will be presented to the Cabinet early next year.

What will happen to Sri Lanka’s missions closed due to economic crisis?

Q What prompted you to take such an initiative?

Several parties brought it to our attention. Some MPs also brought this to our attention. The realization of these initiatives will take time. It cannot happen overnight. We will seek the direction of the Cabinet.

Q How advantageous is it for us to team up with BRICS?

It is a good thing. It is definitely going to be a multi-polar world. I think a few countries have had a monopoly over world affairs for a period too long. That is why the members of the global south got together and took the initiative to form BRICS. It is a good initiative in the long run. The countries like Sri Lanka will take a long time to get in. The gap between the global south and the global north need to be bridged. It is unfair for a few countries to call the shots in the world’s economic affairs. It is good to have a diverse pool of countries in this regard. In that sense, BRICS is a good edition. We hope it will succeed.

Does Iraq matter to Sri Lanka?

Will UAE, as a Muslim country, allow a Buddhist Cultural Centre?

Q How far have you progressed in terms of the evolution of the Standard Operating Procedure (SOP) for foreign vessels and aircrafts engaging in any operation in Sri Lankan territory?

We have prepared it and shared it with the countries that sent their vessels to Sri Lanka during the last ten years. They are aware of our SOP now. As far as research vessels are concerned, we are going to have a moratorium for the next 12 months. That is for us to build our own capacity to participate in such research activities as equal partners.
Standard military vessels have been coming to Colombo since time immemorial. We will continue to welcome them. There is no issue with it. For research, we need to build our own capacity to deal with it as an equal partner.
The SOP applies to all vessels and aircrafts.

Q Why is it not put in the public domain?

We have basically given it to people who matter. It is not a matter meant for everybody. The Cabinet has decided to share it with those countries that sent vessels during the last ten years. We have not discriminated against any country in sharing it. We have looked at the last ten years.

How will the mission in New Zealand be advantageous?

Q What is your reading on follow-up development on connectivity projects agreed upon with India?

The line Ministries are doing follow-up work. Adani group is working on port development. The Power and Energy Ministry is working on renewable energy projects. We are also in the process of discussing grid connectivity. I think there is progress on that. We are finalizing the programme for the Trincomalee district development.

Q There are reports that the Foreign Ministry is hamstrung in the discharge of duties due to lack of human resources. How are you going to address it?

That is a huge problem as I told in Parliament. We have an approved cadre of 264 members of the Sri Lanka Foreign Service. This is in addition to the supportive staff. We have only 168 diplomatic officers to man 55 missions abroad as well 24 divisions in the Ministry. This is not easy. We have sought permission to recruit the next batch. We are in the final stage. We hope to recruit 25 diplomatic officers. We also invest on digitalizing our consular work. We are doing it step by step. We have integrated with the Department of Examination on Ordinary Level and Advanced Level Examinations. As far as these two examinations are concerned, one does not need to come even. We need to introduce this all over the world at our missions. For that, you need manpower and investments. We find trouble now in the Information Technology (IT) sector in particular. The salaries offered by the government are not attractive at all. We are now going to get some support from outside on voluntary basis.
In the meantime, I will seek Cabinet approval to restart some of the missions we closed, like Cyprus and Frankfort in Germany. Also, we want to restart our embassy in Iraq where there is a huge market for our tea. Besides, we are going to open a new mission in New Zealand.

What are the new plans to for the extradition of criminals absconding abroad?

Q What is the rationale behind the move to open a mission in New Zealand?

There are Sri Lankans living there. Also, we import a lot of dairy products from New Zealand. We also see it as a market. There are tourists coming from there. Also, it is far for our diplomats in Canberra to look into New Zealand.

Q Sri Lanka’s presence in Africa is not sufficient enough. What are your plans?

We are also looking at it. We have to start missions in Morocco and Rwanda. Later we have to expand it to Central Asia. There is not a single presence there. We are looking at Kazakhstan to start off.

Q What about the countries sharing Theravada Buddhist traditions with Sri Lanka?

We will look at it. We have missions in Thailand, Vietnam, Malaysia and Indonesia. They oversee the countries in the region. In the long run, Cambodia is an important country.

How will the lack of resources that you speak of at the Foreign Ministry be addressed?

Q You have taken initiatives to put up a Buddhist Cultural Centre in the United Arab Emirates (UAE)?

There were a lot of requests from Buddhists who lived there. There are 340,000 Sri Lankans living there. That is the largest Sri Lankan community outside the country and a majority of them are Buddhists. In the meantime, there are Buddhists from other countries living there. Dubai has become cosmopolitan. They allow multi-faith religious activities. Sri Lankans have made this request. It is a fair request. I took it up with the UAE Foreign Minister who was receptive to the idea.

Q What are the new plans to expedite the capture and extradition of Sri Lankan criminals hiding abroad?

We cannot personally go and nab them. We have to work with their police. We have to work through Interpol. There has been progress. There are a few still operating from places like Dubai. The police have made requests to expedite work related to their arrests and extraditions. The Foreign Ministry will coordinate it on behalf of the Sri Lanka Police.

Can the challenge of implementing economic adjustments be met with during the forthcoming year which is an election year?