News

VAT hike required to fund salary increase demanded by striking govt. employees

Published

10 months ago

July 8, 2024

editor

Secretary to the Treasury Mr. Mahinda Siriwardana stated that granting the salary increase demanded by striking public servants would necessitate raising the current VAT from 18% to between 20% and 21%.

He emphasized that the government cannot impose such a burden on the public. Mr. Siriwardana made these remarks during a discussion held today (08) at the Presidential Secretariat, chaired by President Ranil Wickremesinghe, concerning the demands of public service trade unions.

The discussion addressed the trade union actions taken by several trade unions in the public service and explored potential positive solutions to their demands. It was noted that while a salary increase is not feasible this year, there is a plan to revise public service salaries in the 2025 budget, based on recommendations from an expert committee investigating salary disparities.

The Treasury Secretary highlighted that a salary increase of Rs. 10,000 for government employees would require an additional Rs. 140 billion annually, and an increase of Rs. 20,000 would necessitate an additional Rs. 280 billion.

To generate the required income, even with optimal management of current revenues, additional tax increases will be necessary, the Treasury Secretary pointed out. Specifically, he noted that to raise salaries by Rs. 10,000, the VAT would need to be increased by 2%.

Furthermore, to meet the wage demands of the trade unions, the VAT would need to be raised by more than 3%. He emphasized that this is not feasible at this time, as the VAT is already at a maximum rate of 18%.

The Treasury Secretary also explained that, due to the government’s efforts to stabilize the country’s economy, the Central Bank can no longer print money as it did before. Doing so would jeopardize the program with the International Monetary Fund.

Senior Advisor to the President on Economic Affairs, Dr. R.H.S. Samaratunga, remarked that while increasing public servants’ salaries again this year is challenging, the President has committed to allocating funds for this in next year’s budget. He also mentioned that a separate expert committee has been appointed to study and report on salary discrepancies.

The discussion included President’s Secretary Mr. Saman Ekanayake and a group of senior government officials.

(President’s Media Division)

News

Man jailed over phone ringing in courtroom dies in custody

Published

14 hours ago

May 5, 2025

editor

A man who was imprisoned for 14 days after his mobile phone rang inside the Embilipitiya Magistrate’s Court has died while in custody under controversial circumstances, prompting allegations from his family and triggering investigations by prison authorities.

The individual, who had reportedly arrived at the court premises to post bail in a case filed over traffic violations, was detained for allegedly violating the decorum of the courtroom when his phone rang during proceedings.

Prison authorities claim he died of a sudden illness while in custody. However, his relatives have accused prison officials of assaulting him, alleging that the post-mortem examination had revealed that the deceased suffered brain damage from a blow to the head with a blunt object and internal bleeding caused by an injury to the left side of his chest.

Prisons Media Spokesperson Gamini B. Dissanayake said that a full internal investigation is underway into the incident, in addition to a police inquiry.

(adaderana.lk)

(Except for the headline, this story, originally published by adaderana.lk has not been edited by SLM staff)

News

President invites Vietnam’s Vingroup to invest in SL

Published

17 hours ago

May 5, 2025

editor

President Anura Kumara Disanayake, who is currently on a state visit to Vietnam, extended an open invitation to Vietnam’s leading conglomerate, Vingroup, to explore investment opportunities in Sri Lanka’s real estate and tourism sectors.

While congratulating the Vingroup for their achievements and for building a diversified global brand, President Disanayake invited Vingroup to consider investing in Sri Lanka’s real estate and tourism sectors. He further emphasized that Sri Lanka is pleased to facilitate the creation of a smooth and enabling environment for their investments.

The President made these remarks during a business engagement with Vingroup at their Headquarters in Hanoi, yesterday evening (May 04) where he met with Vice Chairman and the CEO of the Vingroup Nguyen Viet Quang and the delegation.

President Disanayake emphasized Sri Lanka’s strategic geographic position, progressive infrastructure development and the government’s commitment to fostering a conducive environment for foreign investors, particularly in high-potential sectors such as tourism and real estate.

Vingroup Joint Stock Company (Vingroup JSC), formerly known as Technocom Corporation, was founded in 1993 in Ukraine. Today, Vingroup is one of Vietnam’s largest and most respected private enterprises, operating as a multi-sector corporation with a focus on three core pillars: industrials & Technology, Real Estate & Services and Social Enterprises.

Minister of Foreign Affairs, Foreign Employment and Tourism, Vijitha Herath also participated in the discussions.

News

Complaint filed on Halloluwa’s claim against President AKD

Published

17 hours ago

May 5, 2025

editor

A complaint was filed with the CID last night (May 04), requesting an urgent investigation into a claim made by former Director of the National Lotteries Board – Thusitha Halloluwa.

Halloluwa had alleged that President Anura Dissanayake had made a large financial investment in Greece.

The relevant complaint was submitted at midnight yesterday by the Attorney-at-Law Akalanka Ukwatte, with President’s Counsel Upul Kumarapperuma.