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Dues from companies involved in sugar scam, still not collected!

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The Committee on Public Finance, led by Dr. Harsha de Silva expressed its’ deep dissatisfaction with the Ministry of Finance and Inland Revenue Department’s failure to collect foregone taxes from major corporations implicated in the Sugar scam, as outlined in the forensic report by the Auditor General.

During the session, the Committee underscored its disappointment with the lack of action taken by relevant authorities despite a 99.5% reduction in the Special Commodity Levy on sugar imports, as stipulated in Gazette 2197/12 dated October 13, 2020. The Committee emphasized that no accountability measures have been implemented, allowing certain large corporations to unfairly benefit from the reduced tax rate at the expense of consumers.

Report within a week

Specifically, the Committee inquired about the extent of tax collection from the implicated companies and directed the Inland Revenue Department to submit a comprehensive report within one week. The Committee aims to gain clarity on the current status of tax collection related to the Sugar scam.

Further addressing the issue, the Committee highlighted its concern over the proposed reversal of the tax policy, which aims to increase the Special Commodity Levy on sugar from LKR 0.25/Kg back to LKR 50/Kg. The Ministry of Finance’s intention to collect LKR 30 billion from the average Sri Lankan while allowing implicated corporations to evade responsibility was strongly criticized. The Committee emphasized the need to hold wrongdoers accountable before imposing additional financial burdens on the general public.

Additionally, the Committee engaged with officials from the Consumer Affairs Authority (CAA) to address concerns about the maximum retail price (MRP) not being adhered to by distributors. CAA officials revealed that despite conducting 342 raids and imposing fines on micro, small, and medium businesses exceeding the MRP, challenges persist in penalizing wholesale distributors due to the absence of a maximum wholesale price in the gazette.

The Committee directed the CAA to conduct a comprehensive study on the imposition of MRP, considering factors such as the Special Commodity Levy and importer prices. Furthermore, the Committee requested the CAA to propose a mechanism to address the ongoing issue of wholesale distributors selling above the MRP and engaging in fraudulent activities.

Additionally, the Committee delved into the implications of the Order under Section 22 of the Foreign Exchange Act No. 12 of 2017. This order outlines provisions designed to regulate the movement of funds and foreign exchange transactions for individuals and companies in Sri Lanka, with the overarching objective of sustaining economic stability and effectively managing foreign exchange reserves.

The migration allowance, as stipulated in the order, remains at 50,000 USD, with a reduced allowance of 20,000 USD for temporary visa holders. Officials from the Central Bank apprised the Committee of amendments to the previous gazette, including provisions allowing Sri Lankan individuals to purchase share options in their own overseas companies. Additionally, individuals are now permitted to withdraw 200,000 USD for investment in listed companies and 100,000 USD for unlisted companies.

While acknowledging these changes, the Chairman of the Committee on Public Finance (COPF) raised concerns about the feasibility of maintaining such a low migration allowance. He questioned the officials on the prevalence of individuals resorting to unofficial channels, such as Hawala and cryptocurrencies, due to these restrictions. Furthermore, the Chairman inquired whether the officials were aware of instances where Sri Lankans were converting their rupees to USDT (cryptocurrency) through various platforms such as Binance, and subsequently transferring funds abroad or investing in cryptocurrencies. Notably, cryptocurrencies were recently recognized as an asset class by the US Securities and Exchange Commission, with the approval of Exchange-traded funds just last week.

In response to the Chairman’s queries, officials present were unaware of such occurrences and committed to conducting a thorough study into the matter. They emphasized that exchanging rupees into dollars outside formal channels is not permitted, and they will investigate the potential misuse of unofficial avenues for currency exchange and investment.

Members of Parliament – Chandima Weerakkody, Madhura Withanage, Duminda Dissanayake, Sumith Udukumbura were present at the committee meeting held.

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UN Rights chief türk to visit Sri Lanka this month

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The United Nations Human Rights High Commissioner Volker Türk will visit
Sri Lanka this month or early July, a Foreign Ministry source confirmed. No dates have been finalised for the visit, though the government has agreed to the visit by Mr. Turk.

It’ll be the first time in nine years that a UN Human Rights Commissioner will be visiting Sri Lanka, the last being Zeid Ra’ad Al Hussein in February 2016 during Maithripala Sirisena’s presidencyMr. Turk, an Austrian national who took up his duties in October 2022, will visit at a time the government grapples with how it will address human rights concerns raised by the international

community.

In his report to the UN body in August last year, just ahead of
Sri Lanka’s presidential and parliamentary elections, Mr. Turk said the newly elected government should recommit to addressing the root causes of conflict and undertake fundamental constitutional and institutional reforms to address the accountability gap and work towards reconciliation.

These include the immediate moratorium on the Prevention of Terrorism Act and assurances that any replacement legislation is consistent with international human rights law, repeals or amends existing laws or proposed laws that unduly restrict the rights to freedom of opinion and expression, association, and peaceful assembly, including the Online Safety Act and the ICCPR Act.

Mr. Turk’s predecessor Michelle Bachelet requested a visit to
Sri Lanka, but the matter was put under consideration, and the visit did not materialise.

The Office of the High Commissioner for Human Rights (OHCHR) set up the Sri Lanka accountability project, an external evidence-gathering mechanism within the OHCHR, during Ms Bachelet’s period in office, a move strongly opposed by the government.

The OHCHR says that as of July 5, 2024, the repository established within the framework of the OHCHR project comprises 96,215 items and contains information from more than 470 different sources (more than 220 witnesses and 250 organisations), including international and multilateral organisations.

Foreign Minister Vijitha Herath, who addressed the high-level segment of the UNHRC in March this year, rejected the OHCHR Sri Lanka project and outlined government plans for a credible and sound domestic process to address accountability issues in the country.

“We will ensure that the domestic mechanisms and processes established to address challenges emanating from the conflict will continue their work in an independent and credible manner within the constitutional framework,” the minister told the UNHRC.

Despite a visit by the Human Rights Commissioner, the government will remain opposed to any international legal options to advance accountability in Sri Lanka and maintain that there are adequate domestic mechanisms to address accountability issues.

(sundaytimes.lk)

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Trade unionist Ranjan Jayalal takes helm as Kaduwela Mayor

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Prominent trade union leader Ranjan Jayalal has officially been appointed as the new Mayor of the Kaduwela Municipal Council.

Jayalal, a key member of the Ceylon Electricity Board Employees’ Union and a strong advocate for labor rights, was nominated by the National People’s Power (NPP) following their recent victory at the local government elections.

His appointment was formally confirmed through the government gazette issued by the Election Commission on May 31.

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Sri Lanka must take practical steps to join BRICS – Russian Ambassador

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If Sri Lanka is interested in joining the BRICS alliance, the country must take practical steps, says the Russian Ambassador to Sri Lanka, Levan S. Jagaryan.

Speaking during an event at the Bandaranaike International Centre for International Studies in Colombo, Ambassador Levan S. Jagaryan said Russia and China have been offering support to Sri Lanka, but he has not seen adequate interests from the Sri Lankan side.

Responding to a question raised by a journalist about Sri Lanka joining BRICS, the Russian Ambassador to Sri Lanka said, he has been questioned about the matter on several occasions.

Ambassador Levan S. Jagaryan said, “Last October, on the 1st, I met with President Anura Kumar Dissanayake and brought with me an invitation letter from the President of Russia, inviting Sri Lanka to participate in the BRICS summit. I spoke with a language interpreter, but I don’t know if the translation was accurate. The President told me that due to the upcoming general elections, he wouldn’t be able to visit Russia. If Sri Lanka is to join BRICS, it’s not just a matter of Russia; all the member countries need to agree, and there are several steps to take before that happens.”

Russian Ambassador to Sri Lanka Jagaryan stated that he has not seen much interest at the moment and therefore requested Sri Lanka to take some practical steps, if it is serious about joining BRICS.

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

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