Category: Breaking News

President and Finance, Planning and Economic Development Minister Anura Kumara Dissanayake, briefing the Parliament yesterday (18) on the consensuses reached between the Government and the International Monetary Fund during the External Fund Facility Third Review, claimed that a Janatha Vimukthi Peramuna-led National People’s Power (NPP) Government would still be in power by 2028.

He said thus in response to societal views that with Sri Lanka having to repay debt by 2028 following the restructuring of debt amounting to $ 12.55 billion ($ 12,550 million) with $ 1.7 billion ($ 1,700 million) interest to be paid on the said loans – $ 11,550 million which had been, according to him, obtained during the 2016-2019 Government – the country would fall into bankruptcy again.

“Never again will we allow the situation (a reference to the economic crisis) that prevailed during 2022-2023 (the latter year being last year) to recur,” he noted.

He elaborated that the plan is to grow the country’s foreign exchange reserves-based income to $ 15.1 billion by 2028.

President Dissanayake was elected to power in September of this year while the NPP Government was elected to power last month (November), both for five year terms.

In his address, which covered proposals pertaining to the Pay As You Earn Tax, personal income tax, the Value Added Tax, the Service Export Tax (reduced to 15%), the Withholding Tax and a related new Inland Revenue Department division, the reopening of the vehicle import market, the parate law, and the allowances for pensioners, farmers, fishers, and school children from Aswesuma (benefits scheme) and eligible non-Aswesuma families, he said during this special Parliamentary statement that these proposals which would require amendments to several pieces of statutory legislation to give effect to the consensuses thus reached pertaining to the same, would be gazetted and presented to the Parliament next month (January 2025).

Preparations are underway to warmly welcome President Anura Kumara Dissanayake during his future visit to China, Vice Chairperson of the National Committee of the Chinese People’s Political Consultative Conference (CPPCC) Qin Boyong said.

She said this during a meeting held with the President at the Parliamentary Complex today, the Presidential Media Division (PMD) said.

The President expressed his gratitude to the Chinese government for its support during the debt restructuring as well as in the face of the economic crisis.

He stated that his appreciation extends to China’s assistance in the debt restructuring programme and its provision of loans to Sri Lanka during the economic challenges.

President Dissanayake made these remarks during a meeting with Ms. Qin Boyong, Vice Chairperson of the National Committee of the Chinese People’s Political Consultative Conference (CPPCC), held today (18) at the Parliamentary Complex.

Ms. Qin Boyong noted that China looks forward to continuing its work with the new government of Sri Lanka, further strengthening the longstanding relationship between the two countries.

The President also expressed his gratitude for China’s assistance during Sri Lanka’s disaster situations and the provision of school uniforms for children. He emphasised the continued need for China’s support in the future.

President Dissanayake highlighted the importance of completing the unfinished sections of the Central Expressway under Chinese management and expressed hopes to expedite the commencement of supply hubs and institutional projects centered around the Colombo Port City and Hambantota District.

Ms. Qin Boyong stated that there are plans to restart maritime research activities, which were temporarily halted for various reasons, along with initiating relevant projects.

Furthermore, she mentioned that Chinese companies intend to establish themselves in the Hambantota investment zone, aiming to provide Sri Lanka with better global access.

With Christmas 2024 around the corner, Consul General of India in Jaffna, Sai Murali, on behalf of the High Commission of India in Colombo and on behalf of the people of India, donated school bags, notebooks and study kits to 400 underprivileged students in Mulliyawalai, Mullaitivu District.

The Consul General participated in the event as the Chief Guest, alongside other dignitaries including Rev. JJ Sarangapani, Founder and President of Mizpah Prayer Missionary Church, Brigadier Jayavinth of the 59 Division, Mullaitivu, as well as principals, teachers, youth, students and parents from the local community.

In his address, the Consul General expressed his gratitude to the Mizpah Prayer Missionary Church for partnering in this initiative to support the students during the Christmas month, embracing the spirit of sharing and the message of love and kindness.

He noted India’s commitment to extending welfare measures to benefit students from various schools and universities in Sri Lanka, highlighting India’s close cooperation with the University of Jaffna and the Eastern University.

He also assured the gathering that this assistance to deserving school goers is only the beginning of many more initiatives aimed towards the holistic development of Mullaitivu.

The Government accused the former regime of then President Gotabaya Rajapaksa of taking actions similar to Adolf Hitler by enforcing forced cremations of Muslims during the Covid pandemic.

Leader of the House Bimal Ratnayake told Parliament, Tuesday, that while the forced cremations was not 100 percent equal to the brutal actions taken by Hitler, it was almost similar.

He recalled that Hitler used false data to justify the killing of jews similar to the Gotabaya Rajapaksa regime using false data to justify the forced cremations during the Covid pandemic.

Meanwhile, Prime Minister Dr. Harini Amarasuriya said that the actions taken at the time was unacceptable.

She said that the current Government will ensure no community is targeted in any way.

The Government was responding to a question raised over the forced cremation of Muslims during the Covid pandemic.

President Anura Kumara Dissanayake announced a series of key economic and tax reforms during a statement in Parliament today (18), outlining his government’s vision for the country’s financial stability and growth.

The President attended today’s parliamentary sittings, after he returned to the island from the official three-day visit to India.

Addressing the House, he revealed the government’s aim to increase Sri Lanka’s foreign exchange reserves to USD 15.1 billion by 2028, expressing confidence that his administration will remain in power to achieve this target. The President also assured that the economic crisis experienced in 2022 would never be repeated under his leadership.

Highlighting recent agreements with the International Monetary Fund (IMF) during the third review of the Extended Fund Facility (EFF), the President announced changes to the tax structure, including:

Increasing the Pay As You Earn (PAYE) tax exemption limit from Rs. 100,000 to Rs. 150,000.

Revising the first bracket of personal income tax from Rs. 500,000 to Rs. 1 million, taxed at 6%.

Adjusting the Withholding Tax from 5% to 10%.

Reducing the tax on services exports from 30% to 15%.

Explaining the PAYE revisions, President Dissanayake noted that higher relief would be provided to low-income earners. For example:

Salaries of Rs. 150,000 per month are now fully tax-exempt.

Salaries of Rs. 200,000, Rs. 250,000, and Rs. 300,000 are partially exempt, with tax relief of 71%, 61%, and 47%, respectively.

The President emphasised that these measures would ensure greater fairness, offering more relief to lower-income earners while maintaining higher contributions from those earning more.

President Dissanayake also announced the government’s decision to permit vehicle imports for personal use starting from 1 February 2025, signaling a relaxation of restrictions that had been in place during the economic crisis.

Expressing optimism for the future, he affirmed his government’s determination to continue driving the country’s recovery and building a resilient economy. “We are confident the hardships of 2022 will not recur,” he declared.

Tamil nationalistic political parties are united in reiterating their stand for a federal system, while firmly rejecting the existing unitary state structure.

The National People’s Power (NPP) government under President Anura Kumara Dissanayake has vowed to continue with the unitary setup with foremost place given to Buddhism in the planned new constitution likely to be placed before the parliament.

After the recently concluded parliament election, this is the first time the Tamil nationalistic parties have met to discuss a subject that they consider the fundamental issue to the decades-long civil war and majoritarianism in the country.

The Tamil National People’s Front (TNPF) had taken the initiative to organize the discussion according to the leaders of various parties who exchanged their thoughts.

TNPF says the purpose of the interactive dialogues is based on the proposals put forward by the Tamil People’s Forum, a forum comprising various Tamil public organizations and activists in 2016, focusing on the issues faced by Tamils and solutions to them when the new constitution is being drafted.

Anura Kumara Dissanayake-led NPP government has expressed its desire to bring about a draft constitution based on the one devised by the Maithiripala Sirisena-Ranil Wickremesinghe regime based on a unitary state structure with foremost importance given to Buddhism.

A resolution passed on the 31st of January 2016, under the chairmanship of the former Chief Minister of the Northern Province and a former judge of the Supreme Court C.V.Wigneswaran stressed Sri Lanka should be a Federal Republic. That meeting of the Tamil People’s Forum was held at the Veerasingham hall in Jaffna.

Local journalists say the leader of the TNPF and Jaffna District MP Gajendrakumar Ponnambalam met Vanni District MP representing the Democratic Tamil National Alliance and leader of the Tamil Eelam Liberation Organization (TELO) Selvam Adaikalanathan at Mannar on the International Human Rights Day.

They are said to have discussed a common strategy about the stand to be taken by the representatives of the Tamils when the draft of the proposed new constitution is placed in the Parliament.

“At a time when a new constitution is planned to be brought that too where it has been publicly announced it will be a unitary state system, we discussed how we are going to face in parliament and shared the stand of the TNPF and the Tamil when such a draft constitution is placed in the house”.

Subsequently, Gajendrakumar Ponnambalam met with another senior Tamil MP representing the Ilankai Tamil Arasu Katchi (ITAK) from Jaffna, Sivagnanam Siritharan, at his house to discuss strategies.

Siritharan said the discussion focused on matters of common interest, the welfare, and future of the Tamil people, and the need for the Tamils to vote for a federal system when the voting on the referendum about the proposed new constitution takes place.

“When a new constitution is being brought, this government will definitely try to place a solution under the unitary system. If such a system is proposed and put to vote in a referendum, and if the Tamils vote for a unitary state, based on that vote, a message will be spread that Tamils have rejected a federal system and have accepted the unitary setup. So, when we are fighting for a federal system, there is a need to create an awareness among the people at this time,” he said.

Local journalists say the talks initiated and led by the TNPF leader Gajendrakumar Ponnambalam will continue into January 2025.

Tamil People’s Forum

The 44-page resolution passed by the Tamil People’s Forum (TPF) in 2016 pointed out, the fundamental problem for all the issues in Sri Lanka is the country being a Sinhala, Buddhist country.

They also proposed the establishment of a multi-national Sri Lankan state, while emphasizing the unique identity of the Tamils, their right to self-determination, and recognizing the political aspirations of the Muslim and upcountry Tamils.

International intervention

The Tamil People’s Forum also insists before writing a new constitution, an agreement should be reached between the Sinhala, Tamil, and Muslim people about the long-term vision of the government, and such an agreement should be signed with the representatives of America, India, or the UN including them and signed in the presence of a third party.

The TPF also said that such an agreement should include the recognition of the Tamil Nation, their right to self-determination, sovereignty, power sharing in a Federal system, traditional homeland, accountability for alleged crimes during wartime, release of political prisoners, returning of lands under the control of the army, withdrawal of the army from the Tamil areas, stopping of forced colonization by the government, reforming the defence ministry, ensuring past crimes and atrocities are not repeated. All these were incorporated in their resolution passed in Jaffna in 2016.

The resolution also made it amply clear that Sri Lanka should be a Federal Republic and it should have two components, the state and the central government.

It also demands the merger of the North and East as described in the 1978 constitution and emphasizes the President should consult the Chief Minister of the province and seek his advice when a governor is appointed.

TPF in their 2016 proposal also states the role of the governor shall be ceremonial except when emergency is proclaimed in the country.

Talks with the President

Meanwhile, all the ITAK MPs elected in the recently held general election met President Anura Kumara Dissanayaka on 04 December at his office. After the discussion, MP Shanakkiyan Rasamanikkam told journalists in Colombo they discussed the political solution expected by the Tamil people, and long-term issues faced by the Tamils in the North and East, and briefed the President in detail about these and suggested solutions.

“We expect a Federal political solution with a united North and East. We informed this as our party’s stand. We spoke about the release of political prisoners. We expressed our opposition to the continued use of the Prevention of Terrorism Act. We also discussed land grabbing, Mahaweli, Forest Department, Coast Guard, and the removal of military camps and the land grabbing taking place through those departments. We also talked about justice for our disappeared people.”

MP Rasamanikkam told journalists that the President told their delegation the political solution could be examined when a new constitution is being written.