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No decision to abolish permits for senior officials

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Labour Minister and Economic Development Deputy Minister, Prof. Anil Jayantha Fernando told Parliament yesterday (23) that the Government has not taken any policy decision to abolish the concessionary vehicle permits issued to public servants in the executive category.

The Minister emphasised that between 15,000 and 20,000 vehicle permits on concessionary terms have been issued to public servants in the executive category so far and that if this opportunity is given at this time, it will be difficult to achieve the desired economic goals.

Accordingly, he said that there is a problem of priority in alignment of restrictions at the moment and not a problem of abolishing the vehicle permits issued to public servants in the executive category.

Minister Anil Jayantha stated this in response to a question raised by MP Najith Indika.

He further said that the Government decided to import vehicles after paying close attention to a number of factors. 

Therefore, all the decisions should be taken under such a backdrop by focusing on the overall economy.

The Minister further said the decision to resume the vehicle imports was taken considering the entire economy into account.”We have to act according to the parameters of the International Monetary Fund. 

We also have to pay attention to reserves, State revenue, tax revenue and all other relevant factors. We must also find ways to increase State revenue. 

There is no intention to deprive senior Government officials of the benefits provided in concessionary vehicle permits. There may be mistakes in the measures taken in the past in providing these benefits. However, they can be studied separately.

The NPP Government has not taken any decision to abolish vehicle permits. But the number of licences currently issued is a large number, around 15,000-20,000. If we allow permits at this juncture, we will not be able to achieve our goals. Therefore, no policy decision will be taken to abolish it, except for the issue of priority.

Meanwhile, the Minister responding to a question raised by MP Lakmali Hemachandra, said it is necessary to act according to various agreements of the International Monetary Fund. 

The import of vehicles had been stopped for many years due to the prevailing situation in the country. We are of the opinion that some opportunity should be given to import vehicles since the vehicles are needed when the economy expands and production increases. 

Therefore, we have to act under several stages. In that, the initial priority was given to the part related to the economy. It has also been decided to provide opportunities for vehicles transporting goods and vehicles for private use secondly and thirdly. 

We must understand that in a situation where there was a shortage of foreign reserves affecting the import of vehicles. Now, there is some growth in domestic reserves, exceeding US$ 6 billion. But it is not possible to use all of them for the import of vehicles.

(dailynews.lk)
(This story, originally published by dailynews.lk has not been edited by SLM staff)

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Energy Ministry denies CEB Chairman’s resignation, Says he is on leave 

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The Media Division of the Ministry of Energy has dismissed media reports claiming the resignation of Ceylon Electricity Board (CEB) Chairman Dr. Tilak Siyambalapitiya, clarifying that he has only taken leave for personal overseas travel.  

A senior ministry official stated that Dr. Siyambalapitiya had formally informed President Anura Kumara Dissanayake about his temporary leave and denied any resignation.  

“There is no truth in the media reports suggesting the resignation of the CEB Chairman,” the official emphasized.  

Dr. Siyambalapitiya was appointed as CEB Chairman on September 26, 2023, following the formation of the NPP-led government. The clarification comes amid ongoing discussions on electricity tariff revisions and financial reforms in the power sector.  

The CEB has recently been under scrutiny over proposed tariff hikes and compliance with IMF-mandated cost-reflective pricing, with speculation rising over leadership changes. 

The ministry’s statement seeks to quell rumors and ensure stability in the institution’s administration.

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Semini released on bail  

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Popular actress Semini Iddamalgoda, arrested for failing to appear in court over unpaid Employees’ Provident Fund (EPF) contributions linked to her private security company, was granted bail by Colombo Additional Magistrate Bandara Ilangasinghe.  

The Welikada Police had taken her into custody after multiple arrest warrants were issued against her. Court records revealed four warrants from the Colombo Magistrate’s Court, two from Matara, and one from Tangalle over alleged non-payment of EPF and other employee dues.  

Her defense counsel argued that Iddamalgoda, a well-known public figure, had no intention of evading court proceedings. They also stated that some of the pending payments had since been settled, leading the Labour Department to withdraw certain cases.  

Magistrate Ilangasinghe granted bail on a surety of Rs. 100,000 and ordered the recall of all outstanding warrants. The court directed the submission of relevant documents by May 28 and requested a progress report on the Colombo cases by May 19.  

The case highlights ongoing legal scrutiny over employers’ compliance with mandatory EPF contributions, even involving high-profile individuals. Further hearings will determine the resolution of the remaining charges.

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CEB proposes 25-35% electricity tariff hike amid IMF pressure 

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The Ceylon Electricity Board (CEB) is considering a 25 to 35 percent electricity tariff increase, with the International Monetary Fund (IMF) urging Sri Lanka to implement revised rates.  

CEB sources confirmed that the proposed hikes align with a pricing formula agreed upon by the CEB and the Public Utilities Commission of Sri Lanka (PUCSL). 

The new rates will require PUCSL approval before implementation.  

Amid ongoing discussions, CEB Chairman Tilak Siyambalapitiya has resigned, reportedly due to political and regulatory interference in setting cost-reflective tariffs. Earlier this year, the PUCSL approved a 20 percent tariff reduction against the CEB’s advice, leading to renewed financial losses.  

A senior CEB official revealed that after January’s reduction, losses began rising again. 

In 2023 and 2024, tariff hikes had helped the CEB post profits of Rs. 61 billion and Rs. 141 billion, respectively, reducing accumulated losses from Rs. 473 billion to Rs. 271 billion. However, losses have climbed since February.  

The IMF had set two key conditions: cost-reflective pricing and an automatic 10 percent hike if monthly cash flow falls below Rs. 15 billion. 

The official noted that without January’s reduction, a 5 percent increase would have been needed in Q2.  

The IMF has warned Sri Lanka twice in recent weeks for breaching cost-recovery benchmarks, raising fiscal risks. 

A scheduled April tariff revision was skipped, with authorities offering unclear explanations.  

The proposed hike aims to stabilize CEB’s finances while meeting IMF demands for sustainable energy pricing.

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