Showing posts with label Taxes. Show all posts
Showing posts with label Taxes. Show all posts

Wednesday, 18 April 2018

The Sri Lanka I Dream of

In this article I am providing a list of good qualities I wish to see in Sri Lanka, as Sri Lanka being a
developing country unfortunately has many problems. The point of this list isn’t to be very
pessimistic, but to look forward with what could and should be the case for Sri Lanka with optimism.
Let’s begin.  

I dream of a Sri Lanka
  • Where we have a new political culture not known for bribery, corruption, nepotism, lies, etc but to serve the nation with honesty and integrity.
  • Where election related violence no longer occurs. 
  • Where we don’t have several issues of crime allowing citizens to relax for both serious and minor crimes.
  • Where the rule of law applies equally to all.
  • Where there’s a fast and efficient independent judiciary that doesn’t allow rich and/or influential people to tamper with the system.
  • Where the Government departments are fully digitised, thus giving an efficient way of operating.
  • Where citizens don’t face bribery in their dealings with the state and elsewhere.
  • Where the Government can implement projects and policies fast and effectively with most of what was promised delivered.
  • Where the attitude of doing something wrong is OK as long as you don’t get caught is replaced by a desire to do the right thing.
  • Where there aren’t serious issues regarding the cost of living.
  • Where there aren’t so many heavy protectionist taxes that cause difficulties for the citizens.
  • Where there is a balanced tax structure not focused heavily toward indirect taxes.
  • Where the average salary is significantly higher than what it currently is.
  • Where the tragic racist incidents stop occurring.
  • Where all citizens are treated equally.
  • Where our exports have been diversified into a much wider range of sectors.
  • Where we have a high flow of Foreign Direct Investment (FDI) coming in.  
  • Where the garbage management is effective. 
  • Where the country is clean.
  • Where the majority of citizens are law abiding.
  • Where the country is not on reactive mode (most noticeably seen regarding disasters), but on preventive mode instead.
  • Where services and support exist for people with special needs.
  • Where the road rules are enforced with the drivers obeying the rules.

I hope you enjoyed reading this list. I’m sure that others will have more issues of their own to add to this list, so I invite others to share their own list of what they dream of for Sri Lanka. I am aware that making these changes to Sri Lanka is a very difficult thing to do, but I’d like to point out that the country does improve over time, comparing the country’s position with what it was ten years ago to now. We’re in a better position now then we were then, as improvements include no longer facing a civil war, the achievements in media freedom which include the ability to openly discuss and debate Government policy, the Right to Information law that has been active since last year and the improved tax structure under the new Inland Revenue Act that came into effect this month. It is likely that improvements will continue, thus making us in a better off position ten years from now and going forward.

Monday, 30 October 2017

Tracking Sri Lankan Judicial Cases


The Sri Lankan judiciary isn’t known for being fast and effective, with major issues being the long delays of cases and lack of convictions. Many cases drag on for years. It is reported that the average time taken from committing a crime to its high court judgement is 10.2 years. As a result of these issues, I think there should be a trilingual website that holds the Sri Lankan judiciary to account using information in the public domain similar to Manthri.lk by Verité Research that holds Sri Lankan parliamentarians to account. Websites and web pages holding the Sri Lankan government to account, have been increasing this year. Examples of this include the page tracking Sri Lanka’s Open Government Partnership commitments by Transparency International Sri Lanka, the Food Tax Tracker by Advocata Institute, a page on Manthri.lk tracking parliamentary election promises and the website Budget Promises by Verité Research that tracks Sri Lanka’s annual budget promises. A similar website for the Sri Lankan judiciary would add to the growing trend of Sri Lankan websites holding the government to account. I’ll now go into my ideas of how the site could function.

This site would have pages to give details of public interest cases such as cases of bribery and corruption. These pages would give summaries of what has been happening on the case with a link to news articles on the Internet for each point. The summaries could be the accused summoned to an anti-corruption agency, arrested, released on bail, indicted, called to court etc. If it’s possible and not too expensive, there could be an artificial intelligence (AI) component that goes through news stories from a list of sites and then sends the links to the team behind the site. The AI component would send the site team the list of articles from news sites, and the team would go through those articles and put the article or articles that they think is best suited on the case page. The team could also not post a single story from the AI suggestions if they find the AI suggestions to not give valid stories and they also could add stories on their own account if important news about the case has been breaking, but the AI is not picking this information up.


In additional to pages on public interest cases, there would be pages that offer general statistics on Sri Lanka’s judicial system. Those interested in Sri Lanka’s judicial system who look at both pages on public interest cases and general statistics can see if there are improvements or if things are getting worse. This opens the possibility for a wide range of analysis and observations of Sri Lanka’s judicial system. Trends could be spotted such as if certain cases take longer or are less likely to secure a prosecution. This site could also show if a case is progressing at a faster pace than expected.


Those in the government may look at the site, especially people working on court cases, which could result in them making improvements to the judicial system from seeing problems of the system displayed in the site.

If you think you are capable of creating or being involved in such a website, I encourage you to work towards making this site a reality. It will give Sri Lankans important information on the state of the judiciary. People will be able to look up cases they have an interest in, find out important information about the state of the judiciary & draw conclusions and the site’s existence brings about the possibility of a better judicial system for Sri Lanka.

Sunday, 20 August 2017

Positive Occurrences Over The Last Three Months in Sri Lanka

When it comes to the recent state of events in Sri Lanka, especially relating to politics, there has been a lot of talk of negative issues. Recent issues include the constant strikes burdening the public, the garbage problem, the threat of dengue and economic issues that include the cost of living & the debt repayment Sri Lanka is going through. I’m writing this article to point out that while there are negative issues occurring, there are also positive ones. I’ve seen what appears to be an increase of positive incidents in Sri Lanka politically over the last three months and will be listing some of them.





GSP+
Firstly, in May Sri Lanka regained the European Union’s (EU) service of GSP+. GSP+ is a trade service given to developing countries for full removal of tariffs regarding all products covered under the product categories of the GSP service that has less benefits. We earlier had this service, but it was suspended by the EU in 2010. The EU is Sri Lanka’s biggest export market and this gives a much needed boost to our exports which hasn’t been performing great recently. GSP+ enables Sri Lanka to increase and diversify its exports. Sri Lanka began receiving the benefits of this service on the 19th of May.


Cabinet Reshuffle
Shortly afterwards there was a cabinet reshuffle that occurred on the 22nd of May with more changes made a bit later. I think positive changes were made when it came to economic affairs. I thought making Mangala Samaraweera Finance Minister was a good decision as I consider him to be a better Minister than his predecessor. There were further changes made to portfolios on the 31st of May, and I’ll be referring to what I see as two positive economic changes from that. Eran Wickramaratne being appointed as State Minister of Finance was very good as it’s an area he's an expert in due to his banking career and having studied Economics at the University of London. Dr. Harsha De Silva was given the portfolio of Deputy Minister of National Policies and Economic Affairs which gives him a chance to work in his field being an economist. These three men have the potential to turn around the Sri Lankan economy, especially as the last two are of a higher quality than the average politician.


Rajagiriya Flyover
There is a Rajagiriya flyover being constructed right now to improve the traffic congestion currently faced in Rajagiriya. It was originally scheduled to be completed in December 2018, but Deputy Minister of National Policies and Economic Affairs Dr. Harsha De Silva revealed at the site in June this year that the project is being expedited for completion by December 2017.


Banning of Bottom Trawling
A destructive form of fishing called bottom trawling is practiced by both Sri Lankan and Indian fisherman, with fishermen from India being the strongest offenders of this issue in Sri Lankan waters. On the 6th of July, Bottom Trawling and other illegal fishing activities was banned with the passing of a bill in Parliament. This was a good move for environmental reasons and it helps Northern fisherman as bottom trawling is part of the problem of Indian fisherman violating Sri Lanka’s sovereignty by fishing in Sri Lankan waters.


Sri Lanka Customs Online Payment Platform
On the 20th of July, an online payment platform for customs declarations was launched in Sri Lanka. It’s called LankaPay Online Payment Platform done in partnership between Sri Lanka Customs and the Central Bank of Sri Lanka. This digital system greatly improves the efficiency of Customs payments, especially for exporters/importers.They previously could only make direct Customs payments online via two state banks, but now can make direct Customs payments online via any bank. This system is implemented under the guidance of State Minister of Finance Eran Wickramaratne.   


New Economic Advisers
In July, there were the appointments of two well regarded Sri Lankan economists as advisers to the Finance Ministry. Firstly, Deshal De Mel who works as a Senior Economist at Hayleys Group was appointed as an Economic Adviser to the Ministry of Finance. Secondly, Professor Razeen Sally based in Singapore who is the Chairman of the Institute of Policy Studies was appointed as a Senior Adviser to Finance Minister Mangala Samaraweera. Both these two individuals have been giving their criticisms of Sri Lankan government policy, especially relating to the economy. They in fact both gave lectures with their criticisms at Public Policy Think Tank Advocata Institute last year being ‘What’s wrong with Sri Lanka’s economy?’ by Deshal De Mel and ‘Sri Lanka: Three Scenarios For the Future’ by Razeen Sally. While I wouldn’t go as far as they did in some of their criticisms, the fact that these two men who have major criticisms of Sri Lanka’s economic policy are working for the Finance Ministry as Economic Advisers show that the new leadership at the Finance Ministry is not appointing yes-men, but intelligent economists who have good ideas of what should be done instead. Hopefully, their input will be able to reduce the negative economic policies and bring about an increase of positive economic policies.


Passing of the Foreign Exchange Control Bill
On the 25th of July, Parliament passed the Foreign Exchange Control Bill which is a reform improving the status of foreign exchange in Sri Lanka. The voting of this bill used the electronic voting machine for the first time in Parliament. Voting this way is more efficient and allows for better tracking of the MPs votes.


Government Action on Strikes
As I mentioned at the start of this article, a problem currently going on in Sri Lanka are the constant strikes that cause difficulty to the public. A problem has been the government’s policies regarding these strikes including their lack of action to prevent these frequent occurrences. On the week beginning Monday 24th July, workers of the Ceylon Petroleum Corporation went on strike. On Tuesday 25th July, the government declared in a Gazette under the Essential Services Public Act of the storage, transport & distribution of petrol being mandatory and that anyone who fails to report to work will get terminated from service. On Wednesday the 26th of July, the Sri Lanka Army was brought in to distribute fuel. Hopefully this response by the government is a sign that they’ll respond better to strikes and take action to prevent ones from happening in the future. It’s worth noting that early this month, UNP MP Mohamed Mujibur Rahman called for new laws and regulations to address the strikes issue.


Hambantota Port Lease
On the 29th of July, Sri Lanka signed a signed an agreement with Chinese State Entity China Merchant Port Holdings to lease the Hambantota Port. I’m aware that this deal is unpopular with some saying we are selling out to China. Some aspects of the deal may not be the best for Sri Lanka, but I think that it was a good decision that needed to be made. Sri Lanka is facing a massive debt crisis, and this payment eases that as it’s bringing in US $1.12 billion which is a massive amount of money. The sale also is beneficial as the Hambantota Port was a loss making institution bringing economic damage to the country. Hopefully, China Merchant Port Holdings will make the Port profitable and there will be a creation of Sri Lankan jobs as well. It’s also worth noting that this isn’t a sale, but a lease and that it’s a Public Private Partnership with Sri Lanka still having a stake. The agreement gives China Merchant Port Holdings a 70 percent stake and Sri Lanka a 30 percent stake. Dr. Parakrama Dissanayake, Sri Lanka Ports Authority Chairman, said on the 31st July episode of the political talk show Face The Nation that this is the largest FDI we have ever received at US $1.12 billion. Sri Lanka hasn’t been having enough FDI coming in, so it’s very good to see FDI of that scale coming to Sri Lanka.


Action Against Bribery
A form of local government in Sri Lanka is the Pradeshiya Sabha. On the third of August, Ranil Madawa Kamal Nilame a former Rambewa Pradeshiya Sabha Chairman got sentenced to five years in jail as well as a Rs. 40, 000 fine for soliciting and accepting a bribe over a youth who was seeking employment in Korea. This incident occurred 10 years ago in 2007, so it reveals the broken legal system we have in Sri Lanka where things take far too long. However, it’s good to see a government official being sentenced for bribery based on efforts by the Commission to Investigate Allegations of Bribery or Corruption (CIABOC). It’s interesting to note that on the 16th this month another former Pradeshiya Sabha (Tangalle) Chairman was arrested for allegedly accepting a bribe. It’s possible that CIABOC is functioning with some improvement due to these instances. Let’s hope they’ll continue to get more efficient and will work hard so that in the not too distant future they’ll make arrests and actually deliver the much needed prosecutions for the figures said to be involved in bribery and corruption of the previous government.


Waste-To-Energy Power Plants
On the 10th of August, two solid waste-to-energy power plants began construction as Public Private Partnerships. These projects are led by the Ministry of Megapolis and Western Development and will be bringing in US $193 million in FDI. The plants will convert the waste generated in Colombo and Gampaha into energy. This project is a double achievement for Sri Lanka as it will help solve the garbage problem Sri Lanka is currently facing as well as bring in the much needed FDI. There is also going to be a third project of this sort commencing soon bringing in an investment of US $91 million.


Road Discipline
There are positive moves taken regarding road discipline. On the 11th this month, the Cabinet of Sri Lanka had made important decisions regarding traffic. They had approved increased fines for issues that include driving under the influence of drugs or alcohol, entering irresponsibly into a railway crossing, driving without an authentic licence and driving without proper insurance among others. The Cabinet also decided to install CCTV cameras near areas prone to accidents and use them to identify and punish those guilty of offences. Also, earlier this month the Ministry of Megapolis and Western Development announced that they’ll implement priority bus lanes in Colombo and its suburbs to ease traffic congestion. The first phase of implementation began on Tuesday the 15th of August, with there being further implementations over the next four weeks each week as well as another priority lane to be implemented on the 30th of November.   


Inland Revenue Bill
A new Inland Revenue Bill is being discussed right now with the intention of passing it in Parliament before the end of this month. Finance Minister Mangala Samaraweera mentioned that in Sri Lanka indirect taxes currently account for 80 percent of tax revenue with 20 percent accounting for direct taxes. It is important to note that this figure is actually higher as economist Jayani Ratnayake said in an 18th August interview on Biz1st Review 360 that indirect taxes accounted for 83 percent of tax revenue in 2016. The Minister noted that this law is the first step of reducing indirect taxes to 60 percent and increasing direct taxes to 40 percent. This should benefit low income earners. Another objective of this bill is to create an investor friendly environment by simplifying the tax structure to attract more FDI. This bill is also brought to deal with the problem of tax evasion. The Finance Ministry has been having discussions with stakeholders on this bill. On the 18th of August, Minister Samaraweera stated that the Inland Revenue Bill will be presented to Parliament the following week and that the bill will be passed by the 25th of August. He also stated that most of the concerns raised regarding this bill will be addressed.


Conclusion
An issue I’ve had with this government was their slow pace of reforms, especially as they were elected on a reformist agenda. Thus, it’s a positive sign to see more reforms recently with the banning of bottom trawling, the passing of the Foreign Exchange Control Bill and the likely passing of the new Inland Revenue Bill. The Inland Revenue Bill appears to be the only major reform of the three reforms, and unlike the first two ones hasn’t been passed yet. This could be a sign of faster reforms, and it would be good to see other major reforms along the lines of the Inland Revenue Bill being passed before the end of the year.


I see a real improvement in the Finance Ministry following the new leadership of Mangala Samaraweera and Eran Wickramaratne. They got to work since leading the Finance Ministry and have been consulting with the relevant stakeholders to help them carry out their roles well. It’s likely that the benefits of some of these occurrences will be felt over the remaining course of the year.