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Tuesday February 7th, 2023

Mystery mattress sparks innuendo-filled row in Sri Lanka parliament

File photo of a mattress

ECONOMYNEXT — A mysterious luxury mattress said to have been paid for by a private company has found its way to the president’s office in the parliament complex, an opposition MP claimed, leading to an innuendo-filled exchange of words between the MP and the chief government whip.

Main opposition Samagi Jana Balawegaya (SJB) MP Buddhika Pathirana told parliament on Friday December 09 that on July 28, a week after President Ranil Wickremesinghe was sworn in, some “items” had been transported to the parliament complex.

“None of these items were purchased by parliament. A private company had paid for them,” said Pathirana, announcing his intention to table all receipts.

According to the MP, the items had been moved to the space allocated for the president’s office inside the parliament building. Among these items had been a luxury mattress that the Matara district MP claimed was one foot thick.

“Why has a mattress like that been brought here, and why is it in the president’s office? As far as I know, nobody sleeps in that room. This raises a serious question as to whether someone goes to bed in that room,” he said.

“Either the president has to sleep in it or it’s his staff,” he added.

Pathirana urged Prime Minister Dinesh Gunawardena to appoint a committee of MPs to investigate the matter, and the MP volunteered to inspect the bed himself.”

“We’ll also go and take a look. That’ll be good for president’s security and for that of this House. Can things paid for by a private company be brought in here?”

MP Pathirana claimed that though it was said that President Wickremesinghe had covered all expenses of his swearing in ceremony with his private funds, the company that paid for the mysterious mattress had in fact made the payments.

Pathirana’s SJB colleague Hesha Withanage who came to the MP’s defence amid howls of laughter from the government benches said it was a serious matter, urging the lawmakers not to make light of it. Withanage claimed that he had in his possession a letter directing an unnamed authority to provide the company in question 20 acres of land in Hambegamuwa, Hambantota.

He did not elaborate.

Chief Government Whip Prasanna Ranatunga, meanwhile, told Pathirana and the SJB that the Speaker had said he would look into the matter.

“The speaker has said he will look into it. You’re not going to sleep in that bed, are you? I don’t know if you do and if that is why you’re so interested.

“There are much more important things to discuss. Talk about problems of the country without talking about about beds,” he said. (Colombo/Dec09/2022)

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  1. Dukhinda Jayawardena says:

    It is not a laughing matter, the President also needs bare necessities.
    To prevent corruption, all Parliamentarians are requested to provide information if any facilities are provided by interested parties. It is the duty of the Tax Payer to provide adequate facilities. In this case, the Tax Payer would like to know all details of this transaction.

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  1. Dukhinda Jayawardena says:

    It is not a laughing matter, the President also needs bare necessities.
    To prevent corruption, all Parliamentarians are requested to provide information if any facilities are provided by interested parties. It is the duty of the Tax Payer to provide adequate facilities. In this case, the Tax Payer would like to know all details of this transaction.

Sri Lanka Railways to seek PPPs to boost revenue streams

CURFEW RUSH: Commuters scrambling to get home after curfew was declared in Sri Lanka on March 20, 2020.

ECONOMYNEXT – Sri Lanka Railway department hopes to expand Public Private Partnerships and earn more non-passenger revenues to offset recurring operational costs, an official said.

“For the past 10 years, except the last few years, the Railway operational income only covers around 50 percent of the operational expense of the Department,” the General Manager of the Railway, D.S. Gunasinghe told EconomyNext.

“Our plan is to increase the non-passenger revenue of the Railway department.

“And we cannot expect and do not hope for money from the government.”

Sri Lanka Railways already has agreements with Prima, a food firm, and Insee Cement, which is bringing in additional income, Gunasinghe said.

“We had agreements for material transportation such as sand in the past, however it was canceled but we hope to start it again” he said.

The department will rent out its storage facilities and circuit bungalows for the tourism sector to create additional revenue streams.

Sri Lanka Railways recorded an operating loss of 10.3 billion rupees during 2021, compared to a loss of 10.1 billion rupees in 2020, the Central Bank 2021 annual report showed.

The total revenue of the SLR stood at 2.7 billion rupees, a 41.3 percent drop from a year ago.

(Colombo/ Feb 06/2023)

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Sri Lanka’s doctors distribute anti-tax hike leaflets to train commuters

ECONOMYNEXT – Doctors representing Sri Lanka’s Government Medical Officers Association (GMOA) distributed leaflets outside the Colombo Fort railway station against a progressive tax hike, threatening to address the government in a “language it speaks”.

GMOA Secretary Haritha Aluthge told reporters outside the busy Fort railway station Monday February 06 afternoon that all professional associations have collectively agreed to oppose the personal income tax hike.

“The government is taking a lethargic approach. They cannot keep doing this. They have a responsibility towards the citizens, the country and society,” said Aluthge.

The medical officer claimed that the government was acting arbitrarily (අත්තනෝමතික).

“If it cannot understand the language they’ve been speaking, if the government’s plan is to put all professionals out on the street, if it doesn’t present a solution, all professional unions have decided unanimously to address the government in a language it speaks, ,” he said.

Aluthge and other GMOA members were seen distributing leaflets to commuters leaving the railway station. Doctors in Sri Lanka in general are likely to earn higher salaries than the average train commuter, and a vast majority of Sri Lanka’s population, most of whom take public transport, don’t fall into the government’s new tax bracket. Many doctors, though certainly not all, collect substantial sums of money at the end of every month as doctor’s fees in private consultations.

About two miles away from the doctors, the Ceylon Blank Employees’ Union, too, engaged in a similar distribution leaflet campaign on Monday at the Maradana railway station. A spokesman promised “tough trade union” action if there was no solution offered by next week.

Sri Lanka’s cash-strapped government has imposed a Pay As You Earn (PAYE) tax on all Sri Lankans who earn an income above 100,000 rupees monthly, with the tax rate progressively increasing for higher earners, from 6 percent to 36 percent.

A person who paid a tax of 9,000 rupees on a 400,000 rupee monthly income will now have to pay 70,500 rupees as income tax, the latest data showed. This has triggered a growing wave of anti-government protests mostly organised by public sector trade unions and professional associations.

Even employees of Sri Lanka’s Central Bank recently joined a week-long “black protest” campaign organised by state sector unions against the sharp hike in personal income tax, even as Central Bank Governor Nandalal Weerasinghe said painful measures were needed for the country to recover from its worst currency crisis in decades.

The government, however, defends the tax hike arguing that it is starved for cash as Sri Lanka, still far from a complete recovery, is struggling to make even the most basic payments, to say nothing of the billions needed for public sector salaries.

Economists say Sri Lanka’s bloated public service is a burden for taxpayers in the best of times, and under the present circumstances, it is getting harder and harder to pay salaries and benefits.

Sri Lanka’s new tax regime has both its defenders and detractors. Critics who are opposed to progressive taxation say it serves as a disincentive to industry and capital which can otherwise be invested in growth and employment-generating business ventures. Instead, they call for a flat rate of taxation where everyone is taxed at the same rate, irrespective of income.

Others, however, contend that the new taxes only affect some 10-12 percent of the population and, given the country’s economic situation, is necessary, if not vital, at least for a year or two.

Critics of the protesting workers argue that most of the workers earn high salaries that most ordinary people can only dream of, and, they argue, though there may be some cases where breadwinners could be taxed more equitably, overall, Sri Lanka’s tax rates remain low and are not unfair.  (Colombo/Feb06/2023)

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Sri Lanka bond Yields end steady

ECONOMYNEXT – Sri Lanka’s bond yields closed steady on Monday, dealers said while a guidance peg for interbank transactions remained unchanged.

A bond maturing on 01.07.2025 closed at 32.15/30 percent, steady from Friday’s 32.05/10 percent.

A bond maturing on 01.05.2027 closed at 28.90/29.10, steady from Friday’s 28.90/20.05 percent.

The Central Bank’s guidance peg for interbank US dollar transactions appreciated by one cent to 361.96 rupees against the US dollar.

Commercial banks offered dollars for telegraphic transfers at 370.35 rupees on Monday, data showed. (Colombo/Feb 06/2023)

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