Sirisena isolating Rajapaksa, also brings UPFA under his fold
By Our Political Editor-Sunday, March 13, 2016
- SLFP and joint opposition led by Dinesh work together on Constitutional and other important issues
- PM taking charge of economy for crisis management
- Zeid says coming months important for Sri Lanka; contradictory claims on foreign involvement in alleged war crimes probe
It has been an important and significant week for the eight-month-old United National Front Government.
The brewing economic crisis spilled over to the public domain. Prime Minister Ranil Wickremesinghe spelt out in Parliament on Tuesday some of the key measures to cope with the issue. More are due. Parliament also unanimously approved a resolution moved by him, with important amendments, for a Constitutional Assembly, or a full Committee of the House, to draft a Constitution. In Geneva, the United Nations Human Rights High Commissioner Zeid Ra’Ad al Hussain declared on Thursday that the coming months would be important for Sri Lanka. His comments came after a Cabinet Minister, just the day before, told a news conference Sri Lanka would not favour any foreign involvement in an alleged war crimes probe.
The brewing economic crisis spilled over to the public domain. Prime Minister Ranil Wickremesinghe spelt out in Parliament on Tuesday some of the key measures to cope with the issue. More are due. Parliament also unanimously approved a resolution moved by him, with important amendments, for a Constitutional Assembly, or a full Committee of the House, to draft a Constitution. In Geneva, the United Nations Human Rights High Commissioner Zeid Ra’Ad al Hussain declared on Thursday that the coming months would be important for Sri Lanka. His comments came after a Cabinet Minister, just the day before, told a news conference Sri Lanka would not favour any foreign involvement in an alleged war crimes probe.
Prime Minister Ranil Wickremesinghe
This is while the Attorney General’s Department is fast tracking cases on which probes have been completed by state investigating arms. A high ranking Government source said new Attorney General Jayantha Jayasuriya was arriving in office as early as 6 a.m. and leaving at 7.30 p.m. in a bid to clear a backlog. He took a few days leave this week so that he could attend a family function overseas. A few cases were filed this week too.
As revealed in these columns last week, Prime Minister Ranil Wickremesinghe announced a set of tax proposals in Parliament on Tuesday. He said Non-Corporate Income Tax and Corporate Tax would remain at previous levels and proposals in the 2016 budget would not apply. VAT would be increased to 15 % and Corporate Income Tax to 17.5 %. The Capital Gains Tax which was withdrawn in 1987 would be re-introduced. Whatever remains of November last year’s budget was being undone. The new taxes will lead to price increases in a variety of goods and commodities. Yesterday, the price of a kilo of Prima flour went up by Rs. 7.20. This will raise the price of bread, a common diet among Sri Lankans, to a new high.
PM questions ratings
The Premier’s announcement came as a second international rating agency revised the outlook on Sri Lanka from “B+” long term sovereign credit ratings to negative from stable. Standard and Poor said the country’s weakening external liquidity has been “driven inter alia, by the following trends:
= Our expectation of the trade deficit widening to an estimated 11.4% of GDP in 2016, versus 10.2% in 2013-2015. This development is due partly to a sharp rise in motor vehicle imports for investment purposes and personal use. A reduction in import-related taxes on motor vehicles in the 2016 budget, low interest rates for leasing facilities, and increases in public sector salaries were reasons for the higher demand.
